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Thursday, October 5,1944 rat MbBskkt plaindealm Page ThreC Washington Digest Cartels Hinder Trade RINGWOOD Big Monopolies Regulate Commerce Between . Nations; Valuable Information Given Axis Under Business Pacts. By BAUKHAG& ' Netc* Analyst and Commentator, Mm, 'tfttfOB Trust Baildinf Washington, D. C. 'j^yhen the political smoke of the campaign dies away we are all going to* hear a lot more about cartels. Most people probably have a general idea of what they are but those •of us who have followed the hearings of the Kilgore subcommittee on war mobilization learned a lot of things we didn't know. 1 think I heard about cartels first from Bill Shepherd, a newspaperman whom I was always meeting in different parts of the world. He had just come back from Germany shortly after the last war and was full of the subject on which he had written an article for Colliers'. But we didn't know the half of it then. I mention that because it seems incredible that more was not done to break down the cartel system before. The simplest definition of a cartel is a monopoly and its most obvious effect is to gouge the consumer with monopolistic prices. A chemical plastic which can be sold to commercial moulders at 85 cents a pound, costs dentists $45.00 a pound. Same stuff. Atabrine, a synthetic substitute for quinine, sold to the government, presumably at a profit, at $4.50 for a thousand tablets, by a company with a cartel-controlled patent, under a contract that will end six months after the war. Atabrine costs you and me $12.00 per thousand tablets. Another feature of some cartels involved patent-leasing and this practice has resulted in most of the furor today because, by means of international cartels, both Germany and Japan got hold of secrets of value in the war. For example, the American Bosch corporation provided its German affiliate with information developed by the signal corps of the army which the German army used as the basis for radio communication between tanks and ground and air forces. The Bosch company got the information in the form of specifications in army contracts on which it was bidding. Government Move« To Smash System Naturally the goverttift^ht had to take action in cases like that. Recently the state department established an industries branch in the commodities division of the Office of economic affairs and for some time the department of justice has been conducting investigations and in several cases has taken action. Cartels are one of the highly complicated matters which the peace negotiations will deal with. Assistant Attorney Gen. Wendell Berge, who has charge of investigations now going on, said: "It seems abundantly clear that America can never have a foreign policy based on the principle^ of democracy and international goodwill so long as international trade is dominated by cartels." Berge believes the principle involved in the operation of the internal pools and monopolies is the greatest threat to full employment -and therefore in many respects-is onef of the central issues of our tijpe. This type of organization, he believes, restricts rather than promotes trade because it not only drives out competition but also enters into agreements to limit production. That came out in the war and wherever there was a serious shortage, rubber, aluminum, magnesium, drugs, a cartel was discovered in the woodpile. These combinations tend to become little governments of their own and their effect on foreign relations is clearly evidenced in the case of South America where the Germans, obtained exclusive rights in many trade fields through these trade agreements and used these rights to build up their Nazi propaganda machine. Before the United States entered the war Germany was able to prevent firms in this country from supplying certain types of explosives to Britian because the American manufacturers had an agreement with the German affiliate not to do so. The same applied to optical goods. «*'*'- There are other examples which' make your hair curl. The Kilgore thisstatement, for instance, in its report: ' "The Japanese were able to get technical know-how on some processes for production of 100 per cent octane gasoline before they were generally available to American firms and in at least one Case as late as June, 1941, to find out through commercial channels the amount of our oil and gasoline shipment tc Pearl Harbor." ^ (By Helen Johnson) Mr. and Mrs., William Pries of McHenry were callers in the L. E. Hawley home Friday evening. Edith Darby of Chicago was a guest in the Walter Harrison home for the weekend. Mrs. Charles'* Yanke of Genoa City spent Friday with her sister, Mrs. Oscar Berg. Edna Peet of Rockford spent from Friday until Monday with her parents, Mr. and Mrs. Ed. Peet. Mrs. Jennie Bacon has returned home after spending several weeks with her daughter in Elgin. Mercedes Hoffman and Helen Johnson spent Wednesday in Chicago. • J Mrs. Albert Schultz of Genoa City was a Sunday dinner guest in the Roy Wiedrich home. Mr. and Mrs. George Shepard visited their son, Howard, at Norman, Okla., over the weekend. Mr. and Mrs. Hawkes entertained Rev. and Mrs. Collins at Barriards Mill for dinner Saturday evening and a moonlight ride on Wonder Lake. Mrs. Rickey of McHenry spent Friday with Mrs. L. E. Hawley. ^ Cpl. Neil Harrison is spending a furlough with his parents, Mr. and Mrs. Raymond Harrison. \ Mr. and Mrs. P. E. Saunders of Some Agreement. /' Sanctioned by U. S. It must be said in frankness that in some cases American companies --specifically the one which had the Sycamore and Mrs. Bertha Saunders right to certain manufacturing proc- J of Harvard spent Sunday in the Fred esses in high octane--had permis- i Wiedrich, Jr., home. sion from the war department to ex- I The Home Circle will meet with tend their use in foreign countries. ' Viola Low on Thursday, Oct. 12. The Universal Oil Products com- j Mabelle Merchant will assist. Roll pany made special inquiry of the : call will be answered by "Some general staff regarding installing Fact About Columbus." The proplants in Germany and Japan and gram will consist of patriotic songs, they were told in July, 1938, "The , "What Does Columbus Day Mean?" war department has no objection | by Arlene Pearson, ' Mistakes We for the exploitation of these proc- j Make in Voting," by Viola Low, and esses abroad." • a book review by Flora Harrison. Other manufacturers were not so j Cpl. P. C. Leonard spent the weekscrupulous. The Kilgore report re- j end with Mr. and Mrs. Jack Leonard veals an interesting letter written t and family. on April 17, 1940, three months after ! Rev. and Mrs. Collins called ' on the President had announced a "morale embargo" against Japan. The letter was written by an official of a Texas oil company to a Mr Mr. and Mrs. Frank Collins of Wilmette Sunday afternoon. Mrs. Maude Deffenbaugh of Chicago spent the weekend with her Darcy, representing the Mitsubishi ; sigte Mrs Louis Hawl Oil company. of Ja.p a,n, . It was sent At_ Mr. and Mrs. Glen Treon, Henry h<Te /outing up the j Hienze a d Mrs G Harrison conveying of "certain technical information" which Mr. Darcy sent to Tokyo. This is an excerpt from the letter: "For your confidential information enclosed herewith please find photostatic copy of Saybolt's analysis No. 1433 covering the supposedly 92 were callers in the W. B. Harrison home Sunday afternoon. Mr. and Mrs. Paul Norgrad of Foiifc Lake were callers in the L. E. Hawley home Sunday. Mrs. Oscar Berg and Mrs. Chas. Yanke were callers in Woodstodl Octane gasoline for the Maritime ! Friday. Oil company. . . . You have con- ! Don * forget the P. T. A. meeting elusive proof that our oil will run up ;at the sch°o1 Friday evening. Movto 93. . . . The attached leport is ^es ^ shown after the busineiS sent you in complete confidence and ! meeting. Refreshments will hfi be very careful to whom you dis- served. A silver offering will be close it, as it would get me into a j taken, terrific jam if it ever leaked out j Mrs. Cora V. Walters of Crystal that I sent you this data." Lake was a caller in the L. E. Ha-#*' But the government of the United ley home Saturday afternoon. States seized the files of the Mitsu- The Youth Fellowship will mejit bishi company and "it" has leaked . with Carol Harrison Tuesday eveaall over the place and what is more ing, Oct. 10. "it" is a comparatively harmless Mr. and Mrs. Carl Meyer of Woodsample of other things which will •, stock were supper guests in the come out later on. Roy Wiedrich home Sunday evening. One of the interesting cartels deals j Mrs. Walter Low, Mrs. Viola Low in a product that few people not in and Alice Mae called on Bob Sehulti the leather business know anything at his home in Johnsburg Sunday about. It is the quebracho, a sub- afternoon stance used to tan and preserve Mr. and Mrs. Charles Brenn«n leather and it comes from Uie i spent Sunday with Mr. and Mrs. bark of a tree grown chiefly in Ar- |John filackman of Zion. gentina. Mr. and Mrs. Louis Hawley anil nIvC iS. c°ntrolled b/ u CT~ \ Marion and Mrs. John Wbodwai* British Tt has° mana*>f ^ ® and son, John, were visitors in Elgitt m™onnno™po,lvy and to exacnee «elnx&telnyt txc«ahnt Sunday ajfte*r*n oont. i t j a therefore control leather prices. q M,n and Mrs- Ja<* , T" Since it has been in operation que- Sunday evening with Mn and Mrs, bracho prices have shot up and pro- JP' ^onard y8 . duction has gone down. The figures ' The -Greenwood Youth Fellowship disclosed by the investigation show £®ve extended an invitation to th* that before the cartel was formed Kmgwood members to attend ft quebracho was selling at just about share-a-dish supper and program a* one-half what it costs today. Six !he Greenwood church Sunday everi* price-boosts were made in seven 'n£' 6:30. years and the firm is said to be now making 33^ per cent profit. Mr. and Mrs. Lou Abendroth of Elgin were callers in the Jenni&t All but 10 per cent of the que- ! Bacon home Sunday afternoon, bracho production is controlled, by ! Eleanor Bacon of Crystal Lake the cartel and many methods are ; spent Thursday in the 'L. E. Hawley. used to hamstring the independents, home. the chief of which is to make secret j Mr. and ytfk. Arnold Huff of arrangements with shippers not to , Greenwood and J)orothy Huff called allow cargo space to the competi- | on Mr. and Mrs. Roy Wiedrich Suntors, and the cooperation which the day afternoon. cartel enjoys in high places is re- j Pfc. Roland Jackson and Mrs. Jack vealed in the course of indictment j son were callers in the Beatty-Low proceedings by the department of j home Sunday afternoon. justice. The two firms involved were j Mrs. Agnes Jencks spent Sunday at* Barrinsrton Mrs. S. W. Brown called on friends at Hebron, Thursday afternoon. P. C. Leonard of Lake Geneva, Mrs. Ernest Kitely of Kenosha and Cpl. P. C. Leonard spent Monday evening in the Fred Wiedrich, Jr., home andm SLOCUM LAKE There is a rumor of a tie-up between the Farmers' union and the cia • • • At the Quebec conference, Fala, who chased a cat Churchill adopted at the previous conference, turned over and went to sleep in the midst of the Prime Minister's most dramatic remarks at the final press conference. represented by no less than an official. envoy of Jhe Argentine government. The quebracho pool sent vital supplies to Japan up to the last few years and did it at cut-rates absorb ing the loss by boosting the price to nprr'epdriiicrttperdt '[thhantt Viff this preoco®l ncto'yn tinbueeens Butrhie Leonard celebrate his in operation there will be a serious !first b,rthdayleather shortage after the war. But substitutes are no solution o* the cartel problem. A world in which one man has to use ersatz-saucv ! for his goose while another gpts th- ^ » grfcy for his gander, isn't exact#.- (By M„ B Matthews, according to the American idea oi „r .. . .. r D ,, f^tir pray. / * • Walter Davies of Golden Bull Farms attended a Hampshire hog sale at Princeton last Wednesday. L. Sptfford was a caller in Chicago last Friday. • Mrs. Jones and children of Golden The Germans tried to boost myr- i Bull Farms spenfe a few days the first ale of troops in Normandy by broad v j the week visiting at the home oil casting the sound of appropctfing ^er sister at Burlington, Wis. *. tanks. Hundreds of soldiers, "" Mr. and Mrs. Harry Matthews were ing tanks were supporting them, ad . callgrs Sunday at the home of Mr. B R I E F S • • • by Baukhage vanced and were killed. • • • Nearly four hundred million tiremiles are saved yearly under a program being carried out by the dairy industry. Meningitis Cared Injection of penicillin into the spine has proven effective in conquering mciineitis. Seeds for Prisoners The American Red Cross is sending 15,000 pounds of vegetable, and flower seeds to American prisoners of war in German hands. Sleeping Sickness Horses vaccinated against sleepand Mrs. Forrest Grunewald at Silkver Lake, Wis < Mrs. Ella Parks "of Park Ridg was a guest at the home of Mr. an Mrs. W. E. Brooks last Thursday and Friday. Mr. and Mrs. VanSimmons of Golden Bull Farms spent the weekend at Aledo, 111. Mrs. C. H. Hansen called at the not vaccinated. Sg.;^n«S,hhrHi«L«!",t.r ChrCe home of Mr.'.„d Mr,. Arthur W»g- • ner near Grayslake last Saturday. Mrs. Wagner recently returned from fSt. Therese hospital at Waukegan. Mrs. Annie Adams and son, Richard, of Diamond Lake and John Meyer and daughter, Agnes, of Kentucky Muegrmss Kentucky bluegrass is the best grass for sunny lawns in good soil. Round Lake were Sunday evening^ I It is injured by close cropping and callers at the W. E. Brooks home. Need Rubber Stamp* ? Older at' becomes browned in severe drouths • Mrs. Walter Davies returned home The Plaindealer. , but recovers quickly. Jlast Tuesday after spending a few days, with home folk^, at Sparta, Wist ^ - • W. L. Spafford wis • caller in Chicago Monday. Mrs. R. G. Lueder of Roseville was a caller at the home of Mr. and Mrs. C. H~ Hansen. Mrs. Hansen, who has been ill, is much improved at this writing. Mr, and Mrs. Geo Lundgren of Wauconda were dinner guests at the Blomgren-Lusk home Sunday. Mr. and Mrs. Arnold Burkhart of Chicago and Mr. and Mrs. Leo Clarence were dinner and evening guests last Thursday at the home of Mr. and Mrs. William Burkhart at Williams Park. Miss Marion Dowell of North Chicago spent the weekend at the home of, her mother, Mrs. Celia Dowelf. Mr. and Mrs. Wm. Burkhart of Williams Park spent the weekend and Monday at the home of relative^ in Chicago. On Saturday evening they attended a birthday celebration at the home of Miss Graoe Ferrani in honor of her eightieth birthday^ " . Mrs. Martha Baer, 'grands6n, R6br ert Boeckh, and granddaughter, Nancy Carr, of Arlington Heights and Mrs. Edna Smith, of Ketchikan, Alaska, were callers last Wednesday evening at the home of Mr. and Mrs. Harry Matthews. Mrs. Smith remained Until Thursday evening. On Thursday Mrs. Ada Carr of Mus- j catine, Iowa, spent the day at the! Matthews home, and in, the evening Mrs. Carr and Mrs. Smith went to Spring Grove to visit relatives. Subscribe for the Plaindealer Licorice Root Licorice root is now growing w9S in relatively small patches in tb» Middle West, West and Southwest. Tn addition to food and medicine, it s also a constituent of fire guishing foam compounds. Hart why Mom •aysrtlWSio GIZZARD CAPSULES SM-htjr- WmI Mraa taWdao nthtlaai piwwi . dionn bnl*» d«dM»d- •pmrofl tfa "f Uorn ciY* O8Uam. Kan«dp M ntr aLotvabkU| tChlaaM wutlna teCrlo aPtlanti'd d Ionn- Bat tllasolru*n ltai l crcorpu--shperdo twbtri (fuImll diM--Bdftehl ltnon w coormrres.c t Wdoonn et, •dtuactotino nM. rd> or knock *rt proworm*-- PTino.r L aarlilr a SR nkulnndd ta n< -f 1 aI*llr fh*m oIItco*p aoaf . T0a«pUta hthe»iit s» >• ' produet oa marfcet caa Unit 1« ar V*m par kM. Bolger's Drug Store Green Street McHenry THE OLD JUDGE SAYS... *'It sounds almost like a miracle, Judge... how did we ever do it?" "American industry did it, Sally. When the Japs conquered the chief natural rubber producing centers of the world they thought they had dealt a death blow to our war effort. But, in less than two years, we are producing enough synthetic rubber in this country to v supply all our military and essential civilian requirements. "Our rubber experts knew how to make it but the most practical process at the time required huge amounts of industrial alcohol... far beyond the already overtaxed capacity of our industrial alcohol plants. So, overnight, our country's beverage distillers stopped making whiskey and produced hundreds of millions of gallons of the* vitally needed alcohol. "Asa matter of fact, Sally, a high government official said recently'... synthetic rubber is from 6 to 9 months ahead ol where it could have been if alcohol had not been available for butadiene production.*** "We were really fortunate, weren't MMS Judge, to have a beverage distilling industry in existence... able to help perform tfall great wartime miracle!" -i '••7 V:,, Tku mdnrtUtmtnl gpmttrtd Conftrtmt of ImduMtta, /aC. vv x if i H "Boys, I'll tell you what Free Enterprise really is!" "it's a lot of little things--and some mighty big things, coo. our whole country under ft ntw and different systMB. "But in a nutshell, it's our right to live our own litvs, run our own farms and our own businesses in our onrii way-^-without needless interference. "It's our right to criticize the government, bawl out the umpire, belong to the Grange, or make a speech on the public square. It's our right to travel when and where WS. choose--to work or not, as we please. "It-offers opportunity to anyone who really wants it. It rewards thrift, hard work and ingenuity. It thrives on competition and raises our standard of living. It encourages invention, stimulates research and promotes progress. "It offers us a chance to save and invest and build and grow* "Under Free Enterprise men who have faith in an idea can take risks to develop it. Our railways started that way. So did the motor car industry--and oil and steel aftd aviation and scientific mechanized farming. "Free Enterprise made small farms and factories into big ones--and then started more small ones. And now, fighting a desperate war in which production will turn the scale, America is out-producing every other country in the world, hands down--and is doing it faster and better. " I "Yet in spite of all this, some folks would like to change our Anfifrican way of doing things---and rebuild "If they had their way, Tom here, wouldn't own this store. He'd be regimented with a lot of other storekeepers and told how to run his business by some bureaucrat who probably never tended store in his life. "Ed's farm would belong to the state, and fid would be told how to run it and what to raise by someone he wouldn't even know. "Jim would be working for a state-Owned factory--widi his job and wages frozen. And I don't know where ire country doctors would be. "We fellows aren't rich --and probably never will be. But we've got a lot of self-respect and religion and common sense. We own our own homes and farms, send our kids to college, have cars, radios, and a lot more of the luxuries of life than millions of people living under fancy political systems and 'planned economies' in other countries. \ "Sure, we're willing to put up with a lot of irritating things right now--in order to win the war--but I don't believe we'll stand for being pushed around much after it's over. "Frankly, I don't like the name Free Enterprise for the system under which this country has grown great. Fd rather call it American Enterprise, because it's the most American thing we Juve. It really if America. Let's &»£ it/* Kmh Thmml fl*g WMWtt l»ff t«vtm Rtpmblit plamts mud t b t , mmritimt M fUstt' Mvr tb* Chti/mmd Distritt ftmmt, • llfllAl OMICISi RlPUillC BUUDINe, CUVILANO 1, OHIO IAMB W • WW met NStS • MQVM ad MMK • ami UVKI • MM • CAMM. AUOT mi tTAI«llM.S1MU tor 1