Evening star., 1949-05-01
Cartel Breakup Law
Being Applied, Clay
Replies 10 Critics
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FRANKFURT. Germany. Aprf
3o-Gen. Lucius d. Clay. rerlysns
to criticism by An ofnesal investi-
eating committee. asserted today
that the Recommendation Of eco-
nomic enterprise has been accom-
pliSned in Germany On q scale
without parallel elsewhere.
Gen. Gays statement Was made
TO the Army In reply 70 charges
by the committee that American
occupation authorities have evaded
presidential orders 10 break up
German eartels and moncpolies.
The committee whose report
Gen. Clay was answering was
created last year By Secretary
Of Army Royal 10 investigate
progress Of the LIBERALIZATION
program.
members Of the investigat-
ing committee are Garland Q.
Ferguson. jr, member Of the
Federal Trade Commission:
Samuel 3. Isseks, named at the
suggestion Of Attorney General
Clark: and A. r. Kearney,
recommended by Paul @. Hon-
man. Economic Cooperation
Administrator.
THE report was made public
Friday)
Insists Law h Applied.
The laws which We have en-
acted clearly prohibit trade prac-
tees which restrain trade and
cartel-like formations. the Amer
lean military governor said.
THE plumber Of cartels which
have been broken up indicate that
this law is being applied. More
than l.l00 notices Of dissolution Of
cartel arrangements have been
recorded. ! shall certainly take
steps to increase the vigor In ap-
plication as the commission be-
lieves desirable. However. Just as
there are continuing investiga-
tions and prosecutions under our
own antitrust laws. 50 must We
expect constant efforts to circum-
vent the law In Germany"
Gen. Clay said 0ermany's
highly centralized financial sys-
tenn has been destroyed and re.
placed by q decentralized system
quite analogous to our own Fed
eral Reserve System"
Bank System Reorganized.
In reorganizing the financial
system. he said. six Of the largest
banks In Germany were dissolved
and their branches authorized to
operate only as seperate institu-
tions limited in operation to the
state In which they were located.
II doubt II q Recommendation Of
financial power of this magnitude
has ever before been accomplished
and I would suggest that the
magnitude Of the problem may be
visualized by considering the ef-
feet on our economy of the dis
solution of our six largest banking
institutions" Gen. Clay said.
He went on;
THE I. g. Farhen enterprise has
been broken up into Z large num-
Der Of separate units. of which
there are 50 In our zone alone.
This was 0ermany's largest in
dustrial combination. The sepa-
rate enterprises are still operat-|
Ing under trustees and have, not
yet been sold as tie sintArnal A.
situation which exists In
Germany today has made their
sale impracticable."
26 Big Firms Broken Up.
Gen. Clay said 26 of the larger
In Germany engaged In
steel and coal production but
with many subsidiaries In other
fields have been seized and placed
under trustees for operation pend
Ing their reorganization"
He pointed out that these COM
panies in their reorganized form
will be very much smaller and Of
course with their subsidiaries viii
. much larger number
Of enterprises. He added:
II need not point out the eco
nomic effect which would result
from the dissolution Of 26 Of our
own larger enterprises within .
period Of three or four years.
Nevertheless, We have worked
10 dissolve these enterprises while
at the same time bringing their
plants back into production.
The American general said de-
actions are under
way against Bosch electrical
squipment). Degussa electrical
and Metalgesellschaft
tmetals) companies and the
match monopoly.
Moreover, we are now negotiat- |
ing with the other Western
powers for the dissolu- |
ton of the power holding compan- /
les and for the creation Of public