| Show Merry Merry-Go- Round Merry Round By DREW rEARS PEARSON ON and ROBERT S. S ALLEN Editors Editor's note Following is the third article in the Washington Rounds Round's sensa- sensa series on national defense inefficiencies cies WASHINGTON WASHINGTON-No No story of national de defense defense defense de- de i is complete without digging into the problem problem problem lem of supplies for the army and navy and the patent monopolies which hike the taxpayers taxpayer's cost of protecting the U. U S. S A. A It yields pay dirt It shows that Germany actually controls some of the patents most vital to the army and navy and is making this country pay through the nose for them Also it shows that some American business men have been cooperating with Germany in gouging the army and navy Finally it shows that hat the U. U S. S government has been woefully negligent in breaking up these monopolies in a peacetime preparation to secure vital wartime materials Take for instance the giant Krupp munitions firm of Germany The war department has found that it controls no less than American patents for military equipment And if the U. U S. S army wants to use them it must 1 pay the price set by the Germans in cooperation with American Ameri Ameri- can firms and 2 reveal vital statistics regarding regarding regarding regard regard- ing amounts of military equipment ordered Thus Germany always has definite information information information tion regarding the armed strength of the United States It would not be possible for Krupp or other German firms to hold most of these patents were it not for the connivance of American business In many cases American firms take takeout takeout takeout out the patents for them Furthermore many of the German patents are weak and could be broken But American firms firm have preferred to cooperate with Germany Germany Germany Ger Ger- many and in some cases hold up the U. U S. S armed services rather than contest the patents Squeeze the Army Here for instance is a letter from an American Ameri Ameri- can manufacturer of important military equipment equipment equip equipment equip equip- ment who uses German patents Dated November November November Novem Novem- ber 2 1929 the letter reads A great many of the patents that we are operating under are very weak and if we wished to we could break them ourselves and not pay royalties royalties' but good business judgment I believe justifies the idea of paying royalties even on weak patents in order to maintain a price control control control con con- picture that is helpful In other words the price control is helpful helpful helpful help ful in keeping the price up to the U. U S. S army and navy Whether through luck or foresight the Germans Germans Germans Ger Ger- mans have reached into some of the industries most vital to American national defense For instance beryllium is a metal of great importance importance importance tance in the manufacture of airplane parts Yet the American patents for beryllium are controlled controlled controlled con con- trolled by Siemens of Germany through the Beryllium Corporation of America Another vital military alloy is chromium plating which is used in rifle barrels and machine machine machine ma ma- chine guns But the American patents for it are controlled by Germany Who Pays for Rubber German companies are arc not alone in holding up the U. U S. S army and navy In 1938 more than bids to sell supplies to the army and navy were identical The antitrust division of the justice department department department depart depart- ment has been trying to get additional funds with which to break up this collusive bidding but so far congress has not been helpful Meanwhile the state and agriculture departments departments departments depart depart- ments have shown amazing nonchalance regarding regarding regarding regard regard- ing two other raw materials absolutely essential essential essential essen essen- to the United States in peace and war war tin tin and rubber Last year when Brazilian Foreign Minister Aranha visited the United States States' he asked that two department of agriculture experts come to Brazil to study the problem of supplying the United States with rubber The state department department department depart depart- ment liked the idea but the bureaucrats in the agriculture department hemmed and hawed about who was going to pay the traveling expenses expenses expenses ex ex- of the the experts bureaucrats were not willing to spend 2000 to help make the United States independent independent inde inde- pe pendent dent of the hs Dutch-British Dutch rubber monopoly which now 15 is in m danger of being cut off aff by the theJa Ja Japanese anese and Germans Germans' the minute they are vic vic- Tin also can be cut off the minute Japan seizes the Dutch East Indies and Malaysia Or at least the price will be upped The United States u uses es one-half one the worlds world's tin output and the cutting off of that supply would almost paralyze the nation British Tin Monopoly However here in the we western western tern hemisphere an excellent excellent supply of tin is found in Bolivia which cannot be cut pt off ff in time of war But no BO Bolivian tin tm comes direct to the United States It is shipped all the way to England so as to come under under the British tin monopoly monopoly smelted and then shipped back to the U. U S. S A. A As early as 1933 the authors of this column arranged conferences between the Bolivian legation lega lega- tion bon and nd the s state ate de department with a view to bringing g the direct shipment of Bolivian tin to the United States The late Representative Mc- Mc Reynolds of Tennessee introduced legislation inco in I co congress gress to facilitate the smelting of tin in the Um United ed Stat States and again in 1938 the national business advisory council and the state department department depart depart- ment ent were urged to arrange for tin smelting g inside in ins ins' inside in- in s' s side de the western hemisphere However the tin tm lobby was too strong I. I Distributed by United Feature Syndicate e sr i 1 |
