Indianapolis Times, Indianapolis, Marion County, 17 September 1941 — Page 2

JG DECREE ~ JUSTICE DIVISION

jroumstances Surrounding Break- Up of “Contac Between U. S. and German Firms Leave Sour Aftermath in Anti-Trust Office.

By THOMAS L. STOKES Times Special Writer

WASHINGTON, Sept, 17.—Consent decrees’ signed recently in New York, dissolving contracts between American drug companies and German interests, have left a sour aftermath in the Anti-Trust Division of the Justice Department. This is because of circumstances surrounding them and

because of the nature of the decrees, by which a Federal . Court in New York ‘ordered _ the breaking of the contracts.

These contracts, nine in all, extended over a period of years beginning in 1920. They involved price-fixing, patent control, and exclusive marketing agreements. Among other things, they turned over the South American territory to the Germans. Dissatisfaction prevalent among among those who worked on these cases for : the anti-trust yl division is atMr. Stokes ‘tributable to: 1. The pressure and pull’ exerted by Thomas G. Corcoran, one-time chief New Deal brain truster and now a lawyer-lobbyist, who. represented Sterling Products, Inc, which, with three subsidiaries and

two officers, was cited for violation

of the anti-trust laws. .. Two of the subsidiaries, Bayer Co. Inc. and Winthrop Chemical Co, had contracts with I. G. Farbenin‘dustrie, the German = company usually known as I. G. Farben; the other Alba Pharmaceutical Co., "with a German and an Austrian company that is German-controlled by virtue of conquest.

" ‘Information’ Filed 2. The nature of the government action—the failure to take the evidence before a grand jury (for which an “information” a criminal proceeding, was substituted), and

the terms of- the consent decrees, which, in the opinion of some, are not as strong as they might be and may come unhinged after the war, though on their face the decrees apparently break up all ties, and a reorganization of the company at . the top would seem to assure antiNazi control. Certainly this was the endeavor of the justice department. 3. The fact that settlement was imposed from the top by Francis Biddle, in constant touch with Mr. Corcoran, ‘who is a lifetime friend ~ of the attorney general. He was influential in bringing Mr. Biddle into the Administration and was active on behalf of Mr. Biddle’s recent promotion from Solicitor General to Attorney General. Mr. Corcoran himself is seeking the Solicitor Generalship, iow vacant.

Arnold Not Satisfied

- "Thurman Arnold, head of the Anti-Trust Division, is reported as not entirely satisfied with the final séttlements. Hitherto he has been very firm in getting drastic terms for consent decrees in similar cases involving American contracts with | German cartels, of which there have . been several in the last two years. ~~ Attorney General Biddle is re- . ported to have threatened to hold up other anti-trust division cases, waiting on his desk for the go-ahead signal, until the drug cases were settled. Mr. Corcoran was constantly demanding speed and more speed. Jesse Jones, Secretary of Com- - merce and Federal Loan Adminis- * trator, also was enlisted in the settlement, being called upon by Mr.

Corcoran, who for several years was

3 associated with Mr. Jones in: the, Mr. Corcoran practically camped in the office of Attorney General . Biddle and was a constant busybody . in the offices of lawyers working on the cases. His brother, David CorLoran, is an official of Sterling in- ~ ternational, export subsidiary of ~ Sterling Products Inc. - Thomas Corcoran was given ac- . cess to secret information of the - Department concerning the case.

EDUCATOR SAYS: JAPAN CAUTIOUS

Hesitates at Trouble With U.S. Visitor From China Reports.

Official Japanese opinion’ on relations between Japan and the United States can be summed up ‘in’eight words, according to Prof. M. S. Bates, who has spent 21 years in Nanking, China. They are: “Don’t get in a row with the Americans!” Prof. Bates, who is chairman of

the Nanking International ief Commission, said that it is “very plain that the - great body of the Japanese don’t want war with the United States.” “However,” he said, “at the same time they 1 are thoroughly committed to a program of expansion in Pol Bales | chins ad East Asia that is directly contrary to American’ interests and policy.”

Frequent Visitor in Japan

visit the United Christian Missionary Society. In his work at the Chinese university, Prof. Bates has gained a wide knowledge of how Japan speaks and acts. He has been in that country six times in the last five years on behalf of the National Christian Council of China and other Chinese Christian organizations. - In China as a representative of Society, Prof. -Bates is a former Rhodes scholar and has studied at Yale and Harvard. He expects to return to China in March. He said’ that the ‘Japanese have committed themselves -{o.co-operate with Germany, hut now- they believe that there is a possibility they won't. win. ~There.is a great deal of hesitancy as to what course to take, Prof. Bates said.- ;

Watch TU, S. Stent.

® «As long as the Americans and British continue to be strong, the Japanese won't buck the United States,” he said.” “But if this strength wanes and Russia begins to break up in the face of the Nazi attack, Japan probably won't hesitate to go into Siberia and move toward the Malay Peninsula and the Philippines.” Dr. Bates is the author of three published articles dealing with the sale and use of opium in occupied territory by the Japanese army. The writings have been used as a basis of the International Anti-Opium Commission in their reports, he sald: As to the war with the Chinese,

Prof. Bates said, “Japanese morale -and spirit has weakened in the face

of Chinese resistance while the Chinese have picked up steadily. : The war is a long way from over although the Japanese still remain ‘in a commanding position,” he said. ee ee ee

COUNTY TEACHERS’ INSTITUTE ARRANGED

More than 450 county school teachers will meet at 9:30 a. m. Saturday at Ben Davis High School for an all-day institute. orning. speakers will include Dr. . Malan, State superintendent of

: Bublic Instruction; A. J. Thatcher,

County safety director, and Miss {Mary E. Myers, secretary of the

. {Marion County Tuberculosis As-

-| | sociation.

Sterling also was hard 5 by John T. Cahill of the firm of

'D. Roosevelt Jr. was associated for a time. Until February Mr. Cahill, was Federal District Attorney in New York, ap‘pointed by President Roosevelt. The Special Senate Committee inyesugating national defense, headed by Senator Harry S. Truman (D. Mo.), has broad powers and p ld get access to the files through Senate resolution. It has sufficlent authority to investigate all circumstances | surrounding the cases. Senator Truman said recently he was looking into the acties of lawyer-lobbyists.

ANNUYS NEVER FLIES

BUT IS SKY ADMIRAL ||

Times Special ASHINGTON, Sept. 17 ~SenaFrederick VanNeys (D. Ind) tted today that he felt somet like the captain of the Pinawho stuck to his desk and r went to sea and thus became ruler of the Queen’s Navy. The Senator received - a . finely : ned certificate and embossed

in ials are signed by 3 ident © OE a of Se

ee » never been in an airplane my life,” Senator VanNuys.said.

Following the talks, the teachers will divide into 17 section groups for discussions. At 1:30 p. m., students from the Arthur Jordan Conservatory of Music will present a program and Dr. Raymond Schutz will speak.

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