Evening star., 1954-08-15
United Fruit Co. Suit
Is Held Poorly Timed
Plays Into Hu1ds Of Reds
And Aids Their Propaganda
By Fronk R. Kent

And Aids Their Propaganda
By Fronk R. Kent
Whatever the merits Of the Govern
ment's suit against the United Fruit
Company alleging that 1t Is q monop.
oily in restraint Of trade under the
Sherman Antitrust Act, it does seem
that the filing Of this suit q few weeks
ago In New Orleans (Which ID not the
United Fruit Company's headQuar-
ters) was one of the worst cases OF
timing In recent years.
The reasons for this view are clear.
One, 1t Is wen recognized that one OF
the chief aims Of the Communist prop
aganda Is to make trouble for US in
Central and South America. In Guate-
mala, 1t Is beyond dispute that the
former government was communists
cally supported, that its leaders were
anti-American; that they were also
anti United Fruit Company, which has
large holdings and employs many.
thousands Of people there. A second
reason is that the United Fruit Com
pany Is Q constant target Of the Com
munists. The weight Of the United
Ambassador, John Peurifoy, and in
other ways, was In favor Of the reto-
lutionists in Guatemala; 80 was that
of the company. The success Of the
revolution was in considerable measure
due to our Government. Its failure
would have been Communist victory
and so heralded around the world.
A third reason is that, having lost in
Guatemala, the Communists have now
shifted to other tactics-and in an
other country-Honduras. In the re-
ports of Mr.. Patrick Skene Calling Of
the Baltimore Sun, the recent dis
astrous strike against the United Fruit
Company, which its Honduran mana
ger, Joseph F. Aycock. attributes to
the Communists, has cost the COM
pany an estimated $8.000,000 to $10,-
100000 in spoiled fruit. flooded planta-
tions, unchecked plant disease and
other deterioration caused by tempo
rary neglect Of crops and equipment.
This strike was inspired and directed
by Reds. The strike. which is the COM
pany's first. will cost it an additional
$5.000.o00 in wages and was managed
by labor leaders, instructed and
financed by Guatemala's Arbenz re-
gime. According to Mr.. Catling. Mr..
Aycock says. 1--WE have not been able
to deal with the union yet, because
nobody in it appears to know who is
supposed to do what" Further Mr..
Aycock says putting only about six
of them in jail would have very salu-
tary effect. Unfortunately the HON.
duran government, though very fine
in ie iVa
the matter Of eliminating Com
munists."
Adding this Honduran situation to
what happened in Guatemala, where
the United Fruit Company is a IA
vorite Communist target, it does ap-
pear that the sudden filing of a suit
against the company as a monopoly
plays directly into the Communists
hands and supports their propaganda.
In its complaint the government, with
supporting evidence. makes q strong
case against the company. In its reply
the company puts up q strong defense.
What seems true, even from the gov
ernment's complaint is that this suit
could have been filed two or three
years ago or two or three years from
now. without any damage to the ma
tional interests. But, to file it at this
time when the Communists are pro-
noting strikes and using the company
as an example Of American imperial
ism and oppression. does not appear to
reflect much credit upon the Judgment
of the Department Of Justice.
Nor does it bespeak much co-opera-
ton between the former and the State
Department. What consultation there
has been was on the lower echelons-
not at the top. Unquestionably this
suit will embarrass the State Depart
ment representatives in the field, not
only in Honduras where the Commu-
nists are putting up a fight and in
Guatemala where they have Just lost
one, but in other Central and South
American countries where the United
Fruit Company can be used to stir up
anti-American sentiment. Certainly.
it must be clear that a Communist
dominated government as close to the
Panama Canal as Honduras is q men,
ace to this country. Further, 1t must
be clear that the attack Of our Gov
ernment upon this company as q
monopoly exactly duplicates the Com
munist attack and supports the strik-
ing Red unions.
Concededly this company is the big
gest and strongest of all those import
ing bananas but whether 1t is o sinister
monopoly. as the Communists and the
Department Of Justice allege, remains
for the courts to decide. At any rate,
one claim in its favor is that without
it the economies Of q number Of the
Central American countries In which
it is established would be in very bad
way indeed. Another claim is that
the Point Four Program" about which
so much has been written and concern
ing which our professional liberals"
have so ardently beaten their breasts,
is more practically furthered and fos-
tered by the United Fruit Company
than by any other agency, govern
mental or private, that we know Of.
It would be interesting to know in the
light Of recent developments what our
top policy makers think of this suit
and its timing. It Is also interesting to
note that near the end of the session
Congress appropriated $40 million for
special economic aid to Latin Ameri-
can countries.
friend that he intended to "invest in