Indianapolis Times, Indianapolis, Marion County, 19 September 1941 — Page 18

Loopholes Left Despite Decree Dissolving Contracts.

By THOMAS L. STOKES | Times Special Wyiter

WASHINGTON, Sept. 19.~A PFed-

eral: Grand Jury never got to hear the evidence dug up by Justice Department investigators concerning contracts between a group of Amerlod drug firms and German interests — contracts recently dissolved in consent decrees. The investigators never conipleted their work. It can be stated authoritatively that they were turning up some rather senGi sational evidenoe Mr, Stokes = concerning the more recent operations of subsidiary companies of Sterling ‘Preducts, Inc, in South America, ‘evidence which leaves a big question mark as to the efficacy of the consent decrees designed to Hive the Germans from that maret Had this evidence gone before a "grand jury, Sterling Products, represented by Thomas G. Corcoran, formerly New Deal lieutenant now turned lobbyist, might not have got off with the negligible fines of $26,000, with an “information” substituting for grand jury action, and _ with consent decrees that have been eriticized as much weaker than they should have been.

Important Questions

Previously, these articles have disclosed the incessant activity of Tommy Corcoran for this client with whom his brother, David Corcoran, is associated; his constant close touch with Attorney General Biddle; his annoyance of Government lawyers working on the case; his calling upon the powerful Jesse Jones, Secretary of Commerce and Federal Loan Administrator, for whom he formerly worked when: in the Government. Who stopped the investigation? Who stopped submission of the * evidence to a grand jury? These are important questions in view of certain circumstances which may here be recited. One of the subsidiaries of Sterling is the Winthrop Chemical Co., of ——T Del. . Del, which produces

‘SEEN IN S. AMERICA

“ethicals,” drugs which require 8 doctor's prescription as distinguished from proprietary medicines. Although its contract of 1923 and

1926 with I. G. Farben, the German drug corporation, forbade it to sell

jin. the South American territory,

yet from January, 1940, to April, 1941, it took over the Latin Amer-

ican market for 1. G. Farben be-]

cause. the latter could not get its products through the British blockade. They were distributed through I. G. Farben agents.

Stock Tie Not Severed Fifty per cént of the stock of Winthrop is held by General Aniline & Film, a holding company which the Justice Department has said is controlled by I. G. Farben, so that presumably 50 per cent of the profits of the South American business ‘will

find their way ultimately back to

I. G. Farben. The: consent decrees do not sever this stock relationship, though they dissolve the 1923 nd 1926 contracts covering ‘all joint business arrangements, The question raised, outside of the fact that the American company is ostensibly building up reserves for the German company, is whether, after the war, I. G. Farben will not resume shipments to Latin American as heretofore and Winthrop withdraw, on the ground of too severe German competition and without the necessity of making any agreements with I. G. Farben such as are barred under the consent decrees. While the object of the consent decrees is to force Sterling Products to compete with I. G. Farben in South America, Sterling is ieft free under them to degide where it can sell its products feasibly and profitably, which would seem to leave a loophole in view of the company’s past associations with German interests.

EVANSVILLE WOMAN ON NURSES’ BOARD

Governor Schricker today appointed Miss Olivia Dickhaut of Evansville to a two-year ‘term on the State Board of Examination and Registration. of” Nurses, succeeding Miss Louise Hiatt of Marion. The Governor reappointed the

four other members of the present

board. ..They . are -Miss Cordelia Hoeflin of Indianapolis, Mrs. Opal Gilbert of Terre Haute, Miss Evelyn McGuiness .of South Bend and! 8h

ter Henrica of Lafayette.

217

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CHOICE OF COLOR

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