9 Titanium

The titanium industry is controlled by a typical cartel. That it is a cartel there can be no question. The president of one of the American companies which dominate it was thoughtful or thoughtless enough to define it. He wrote to one of the European officials as follows:

“May I call the proposed combination, for simplicity, a cartel? The whole purpose of the cartel is to obtain a monopoly of patents, so that no one can manufacture it [titanium] excepting the members of the cartel, and so can raise the prices by reason of such monopoly to a point that would give us much more profit on our present tonnage, but also prevent a growth in tonnage that would interfere with their greater profits in lithopone [a competing but inferior product].”

It is typical because it has utilized the devices and followed the practices which are found in greater or lesser degree in all cartel arrangements. The members of this cartel include I. G. Farbenindustrie, the German chemical trust and many other foreign companies. The American scene is dominated by three American corporations, the National Lead Company, E. I. duPont de Nemours and Co., and Titan Co., Inc. (These three companies and four of their leading officials were indicted by a grand jury in the Southern District of New York on June 28, 1943.)

The story of the titanium cartel is significant for these reasons:

1. Titanium, the most valuable and useful of all white pigments for paints, rubber products, glass, paper, enamel and other materials has been priced exorbitantly and its use restricted because of the monopolistic control exercised over it by a worldwide cartel.

2. American members of the cartel are placed in a position where they have felt obliged to help the Japanese evade the British embargo.

3. American members have seen fit to aid I. G. Farben in attempting to prevent seizure of German owned patents by the American Alien Property Custodian by the execution of specious patent assignments.

4. To attain such monopolistic control, the cartel has resorted to flagrant misuse of patents and has gone so far as to actually pay large sums to potential competitors to keep them out of the titanium business.

5. I. G. Farben, the German chemical trust, as one of the leading parties to the cartel, has dictated the terms upon which American members might do business.

6. The fact that duPont, Imperial Chemical Industries and I. G. Farben are also members of other cartels, such as that involving dyestuffs, makes their control of a fine pigment such as titanium the more objectionable.

It is difficult to think of any material which is more universally used by private citizens and by governments alike than is paint. In time of peace, the United States government buys and uses enormous quantities of paint. In this time of war its purchases account for by far the greater portion of all the paint manufactured in the entire country.

It is a fact which is not widely known that the finest of all white pigments, useful in colored paints as well as white, is titanium dioxide. It is also not generally known that titanium is the ninth most abundant element in the earth. Crude titanium is found in combination with iron in an ore called ilmenite in many places in this and other countries. It is found in purer form in the sands of Travancore Beach in India and in lesser concentration in many places.

While the element itself is abundant, no commercially practical processes for reducing it to pigment form were known until about the time of the first World War. In the relatively short period which has passed since then, technology has been developed which makes possible the manufacture of the finest pigment from titanium. It has already displaced white lead, lithopone and other pigments in a large share of the market. In hiding power (covering qualities), opacity and chemical inertness—all essential qualities for paints—titanium compounds, chiefly titanium dioxide, excel all other kinds of pigments.

Shortly after the Civil War it was discovered that titanium ore could be reduced to a powder which when mixed with oil resulted in a paint. It was not until about the beginning of World War I that a feasible method of separating titanium oxide from the ore was worked out. This was accomplished by two chemists, Dr. A. J. Rossi and L. E. Barton, whose research was done for the Titanium Alloy Manufacturing Company organized by Dr. Rossi and others in 1906. As a result of their discovery, a new corporation called the Titanium Pigment Company was formed in 1916. At that time, as well as subsequently, the leading manufacturer of white pigment was the National Lead Company. Recognizing the implications of titanium’s excellence in this field, National Lead purchased a substantial interest in the Titanium Pigment Company in 1920. The two companies continued to operate more or less separately until 1932 when National Lead acquired the entire stock of Titanium Pigment. In 1936, the latter was dissolved as a corporation and its business and properties were taken over and operated as a division of National Lead.

During substantially the same period in which this development was taking place in this country, a different process for the manufacture of titanium compounds was being developed in Norway by Gustav Jebsen. His process was patented and was exploited by a Norwegian corporation called Titan Co. A/S. At about the same time a Russian chemist named Joseph Blumenfeld was perfecting, in France, another method of manufacture, which was likewise patented. Thus prior to 1920 three groups working independently of one another had developed processes for utilizing titanium ore for production of pigments. These groups are:

1. Titanium Pigment Company, subsequently absorbed in National Lead Company.

2. Titan Co. A/S, originally organized in Norway by Jebsen for the exploitation of his developments. Eighty-seven percent of its stock was purchased by National Lead in 1927, the remaining 13% being retained by Jebsen. This company was originally intended to exploit the foreign interests of National Lead, but in 1929 National Lead and Jebsen organized in Delaware a holding company called Titan Co., Inc., the sole function of which was to hold all foreign interests of the parties. Titan Co. A/S remained in existence in Norway solely as the sales agent for Titan Co., Inc.

3. The Blumenfeld Interests. Whereas National Lead and Jebsen chose to exploit their patents by means of operating companies, Blumenfeld followed a general policy of licensing other interests.

Titanium Pigment and Titan Co. A/S entered into a contract dated July 30, 1920, which is the foundation upon which the parties and their successor companies have been able to build a cartel with monopoly ramifications extending throughout the world. This contract was to extend to 1936 and was to be automatically renewed for 10-year periods unless terminated by 5-year notice. By the terms of this agreement, National Lead (as Titanium Pigment and its successor in interest will be called) was assigned the markets of North America as its exclusive territory. Titan Co. A/S was given the rest of the world with the exception of South America which was to be common territory. The two companies granted each other exclusive licenses under their patents for their respective territories, excluding even the licensor from the licensee’s territory. Each agreed not to ship into the other’s territory and to prevent its licensees from shipping their finished products into the other’s territory if it would interfere with the other party’s sales. Any sublicensee was required to be governed by the same restrictions as the parties imposed upon themselves. The parties agreed to exchange know-how and also to permit visits of representatives to their respective plants. Each party undertook to secure from its employees assignment of any and all inventions developed by them. In acquiring rights to inventions from third parties, each agreed to secure rights for all countries within the territory of the other party.

Following the execution of the 1920 agreement, the parties operated under it until 1927.

Jebsen, having Europe as part of his territory, set up a selling company in France. This was originally intended to become a manufacturing company also, but this idea was never carried out. National Lead acquired a majority interest in this company in 1927. At the same time it acquired 87% interest in Titan Co. A/S, the Norwegian company, Jebsen retaining the remaining 13%.

Also in 1927 National Lead and Jebsen formed a new company in Germany in conjunction with I. G. Farben. This company, Titangesellschaft, G.m.b.H., was organized as part of a series of transactions including the execution of nine separate contracts. Titangesellschaft was given as its exclusive territory for manufacture and sale of titanium compounds the following countries: Germany, Russia, Austria, Hungary, Czechoslovakia, Switzerland, Rumania, Serbia, Jugoslavia, Bulgaria, Greece, Turkey, Japan, China and Spain. In 1933 Titangesellschaft eliminated potential competition on the part of the Sachtleben Company in Germany by the simple expedient of paying it a large sum of money for its agreement to stay out of the titanium business.

In 1929, National Lead and Jebsen organized in Delaware a company called Titan Co., Inc., for the purpose of holding their foreign interests. Titan Co., Inc., succeeded to the position of Titan Co. A/S (the Norwegian firm) under the basic agreement of 1920. Thus we have National Lead as successor to Titanium Pigment as one party to the basic agreement and Titan Co., Inc., owned 87% by National Lead, as the other party. However, the 1920 agreement continues in existence inasmuch as its territorial and license exchange restrictions form the basis and pattern for all the subsequent agreements. Thus, Titan Co., Inc., became entitled to all territory outside North America except as yielded up by the German agreements and others subsequent to them.

Blumenfeld transferred all his patent rights to a French company known as Societe de Products Chemiques des Terres Rares. This concern then licensed or sold them to different companies operating in various European countries, the British Empire and United States.

In the United States, the patents were first owned by the Commercial Pigments Corporation which sold them in 1931 to the Krebs Pigment and Color Corporation. At that time, duPont owned 70% of the stock of Krebs. It subsequently acquired 100% and now operates it as the Krebs Division of duPont. National Lead entered upon negotiations with duPont looking toward an agreement which would allow the two companies to maintain a monopoly of the titanium business in this country and eliminate competition between them. I. G. Farben insisted that in any such agreement duPont must obligate itself not to compete or allow its sublicensees to compete in I. G. Farben’s territory, i.e., the world outside the Western Hemisphere. When a proposed form of agreement was submitted to I. G. Farben for approval, it objected because the license given by duPont for foreign territory was a “non-exclusive license.” A National Lead official reassured I. G. Farben on this score in the following language, quoted from a letter written in 1933:

“In regard to the phrase ‘non-exclusive license’ to which you call our attention ... we have to refer to the United States Anti-Trust Laws which absolutely forbid the granting of exclusive licenses between two manufacturers in the United States as such a practice would tend to create a monopoly. Therefore, the use of this phrase ‘non-exclusive license’ is simply to comply with the United States Laws and in practice the licenses under each other’s patents will undoubtedly prove to be, to all intents and purposes, exclusive.”

I. G. Farben’s objections having been met and other difficulties overcome, Titanium Pigments Co., Inc., and Krebs Pigment and Color Corporation, subsidiaries of National Lead and duPont, respectively, entered into an agreement dated January 1, 1933. It provided for a mutual grant of irrevocable and “non-exclusive rights” and a license within the United States to use all processes, methods and apparatus of manufacture including present and future processes and patents. It also provided that each party might sell the products resulting from the exercise of the processes in the United States, Central and South America. The territorial division of the basic agreement of 1920 was thus preserved.

The agreement also provided for the exchange of the most detailed information with respect to technical developments and know-how “to the end that all the knowledge and experience of each party in the licensed field shall be at the full disposal of the other.” This provision caused some little difficulty between the parties. About 1937 I. G. Farben developed a new titanium pigment (rutile) of exceptionally fine quality which gave a great competitive advantage. It passed the information concerning it to National Lead. The latter failed to inform duPont of this development and when duPont later discovered that such had been the case, it charged National Lead with violation of its agreement. The net result was an amendment in 1941 of their agreement with the elimination of the exchange of information provision. Actually, duPont itself developed a similar rutile pigment and started production of it while National Lead was still guarding the secret it had received from I. G. Farben without producing the pigment.

The 1933 agreement further provided that each party was to pay a royalty to the other on the basis of titanium dioxide produced and packed by it. DuPont was to pay National Lead a royalty of 2½% based on the average published carload price and National was to pay Krebs (duPont) 1% on a similar basis. It was provided, however, that in no event was royalty to either party to exceed $10,000 in any given year and all royalties were to cease as of December 31, 1936. The parties undertook to use their best efforts to acquire the rights for each other from third parties and duPont further agreed to offer licenses to the foreign associates of National Lead for the various countries of the world. This virtually was a commitment by duPont to give National Lead’s foreign subsidiaries a preference in granting licenses.

Following the execution of the duPont-National Lead Agreement in 1933, duPont entered into a series of four contracts with Titan Company, Inc. By these agreements, duPont agreed to turn over all its foreign patents to the various foreign associates of Titan Company, Inc. The result was a virtual consolidation of all the important titanium interests throughout the world. All commercially useful patents were under the control of the parties involved. Future control was assured by the various provisions of the agreements requiring the continuing exchange of licenses and patents to the practical exclusion of all would-be competitors.

At the time of the formation of Titangesellschaft, it was the intention of the National Lead-I. G. groups to extend their facilities into any country if and when it seemed necessary. From time to time beginning in 1933 the National-Titan-I. G. group because of threatened competition in one country after another was forced to take action to control the various competitive forces. This happened in Great Britain, Canada and Japan.

As early as 1930 the British Chemical Trust, Imperial Chemical Industries, Ltd., evidenced a desire to engage in the titanium business and in fact carried on considerable research work in that connection. This came to the attention of the National Lead-Titan group and prompted them to take action to control the development in the British Empire. At that time, the Blumenfeld British patents were owned by National Titanium Pigments Co., Ltd. It was feared by the National Lead-Titan group that National Titanium Pigments, I. C. I. and Imperial Smelting Corporation would undertake a joint enterprise and thus offer formidable competition in that territory. After considerable negotiation, a jointly owned corporation, British Titan Products Ltd., was formed. The stock was owned 49% by Titan Co., Inc., and 51% by I. C. I., Imperial Smelting and Goodlass Wall Lead Industries, Ltd., in equal shares. In conjunction with the formation of the new corporation, the participating companies executed a series of agreements, the purpose and result of which was to divide territory and avoid competition among the various companies. The principal contract between Titan Co., Inc., and British Titan Products was to extend to 1963 and to continue in force thereafter until cancelled by either party upon twelve months’ notice. It is still in effect. The Blumenfeld patents had been acquired by the British Laporte Co. and negotiations between Laporte and British Titan Products were carried on in 1940 and 1941. In August 1941 an agreement in principle was arrived at. This provided that Laporte was to receive 20% of the British market for the duration of the war. British Titan Products tried to make it for a longer period and stated its willingness to concede a larger proportion of the market, but Laporte refused. Jebsen, now as an officer of a National Lead subsidiary, gave his approval to this agreement and stated that he was quite satisfied that it was only for the duration because he felt that British Titan Products would be much better off after the war as a result of the developments which they would get from National Lead. He felt that they could use these developments to advantage in dealing with Laporte in postwar negotiations.

The most important chemical company in Canada is Canadian Industries, Ltd. (C. I. L.), most of the stock of which is owned by duPont and I. C. I. Under the basic agreement of 1920 Canada was within the territory assigned to National Lead and it supplied most of the Canadian market until the early thirties when British Titan Products was allowed to ship into Canada on a preferential basis. The British Laporte Company was also shipping into the Canadian market. Although it held the Canadian Blumenfeld patents, it did not undertake to manufacture in that country. DuPont also was exporting to Canadian buyers and for a number of years the various companies participated in price stabilizing agreements.

In 1937 National Lead and C. I. L. organized Canadian Titanium Pigments, Ltd. (51% C. I. L.—49% National Lead) for the manufacture and sale of titanium in the Canadian market. At the same time, they purchased the Blumenfeld Canadian patents from Laporte. A series of contracts executed by National Lead, C. I. L. and Canadian Titanium Pigments contain the usual provisions for division of territory, licensing of patents, control of shipment of manufactured products, exchange of know-how, etc. The principal contract extends until 1967. National Lead continues to sell Canadian Titanium Pigments all its requirements for the Canadian market. However, it is obligated to cease all exports to Canada as soon as Canadian Titanium Pigments builds a factory which is scheduled for erection immediately after the war.

The only remaining country of any commercial consequence was Japan. By virtue of the European cartel agreements, the Japanese market had been assigned to the Titangesellschaft and to the Blumenfeld French company in the ratio of 70–30. The Titan Co., Inc., owning 50% of Titangesellschaft, profited by this arrangement. From the time of the execution of these agreements until 1937, the Japanese market was supplied with products manufactured in Germany. From time to time, however, there were indications of independent competition which finally became so threatening to their control that the National Lead-I. G. Farben interests thought it necessary to undertake development of a domestic manufacturing plant in Japan.

After considerable negotiation and the overcoming of many difficulties, the various interested companies executed a series of seven contracts providing for the formation of a new company known as Titan Kogyo Kabushiki Kaisha. The participating companies were National Lead and I. G. Farben operating through their jointly owned subsidiary, Titangesellschaft, Blumenfeld’s French company, and a Japanese chemical company, the Kokusan Kogyo Kabushiki Kaisha. Neither National Lead nor Blumenfeld had any direct contact with the operations of the Japanese company inasmuch as all matters were handled through I. G. Farben by its Japanese representative, Doitsu Senryo Gomei Kaisha. By virtue of the executed contracts, Kokusan was given 50% of the stock of Titan Kogyo. Titan Co., Inc. (representing National Lead’s interests) received 17½%; I. G. Farben, 17½% and Blumenfeld’s French company, 15%. Because of restrictions of the German government, I. G. Farben was unable to supply capital necessary to subscribe for its share of the stock. Consequently, Titan Co., Inc., subscribed for I. G. Farben’s share and gave the latter an option to purchase these shares at any subsequent time.

Because of German participation in the Japanese Titanium Company, the British Government refused to permit titanium from Travancore, India, to be exported to Japan in the fall and winter of 1940–41. Titanium was badly needed in Japan and the Japanese government had not permitted any titanium pigments to be exported for a long time. Knowing this and in spite of the fact that the situation in this country was very serious because of disruption of shipping and inadequacy of domestic supplies, nevertheless Titanium Pigment (National Lead) shipped 700 tons to Titan Kogyo Kaisha, Ltd. on March 9, 1941, thus aiding the Japanese to evade the embargo which the British had with good cause placed on sale to Japan. In a letter dated April 3, 1941, the manager of Titanium Pigments wrote to the Japanese company:

“Even at the time we made shipment to you of 700 tons on March 9th, the situation was so serious that we should have much preferred not to have released even this quantity, but in view of the fact that we had promised it to you early last fall, we felt that we should not withdraw our offer. Incidentally, at the time we made this shipment to you in March, the replacement value of that ore was more than double the price at which we invoiced it to you.”

The extent to which one member of a cartel will go in protecting the interests of a foreign partner and incidentally in attempting to safeguard its own monopoly position is indicated by the following letter and resolution. The letter dated December 11, 1939, is from the manager of National Lead’s Patent Department to the General Manager of the Titanium Division.

“Confirming our recent conversations, regarding exchange of title to patents, I beg to review the situation for you.

“On September 7th I wrote Dr. Jebsen, pointing out that in view of the war certain questions arose affecting the United States patents which stand in the name of Titangesellschaft and the I. G. Farbenindustrie under which we enjoy an exclusive license. We suggested to Dr. Jebsen that it might be desirable to assign to National Lead Company, in trust, the patents of the I. G. Farbenindustrie and Titangesellschaft against the possibility of the United States entering the war and taking over these patents. The suggestion was primarily designed to protect the patent property of the I. G. Farbenindustrie and Titangesellschaft and at the same time would have protected our exclusive license by insuring that no one else could have petitioned the government to secure licenses under them. On December 7th I received the following cable from Dr. Jebsen:

“‘YOUR LETTER SEPTEMBER 7 STOP SUBJECT LEADCOS AND TITANINCS APPROVAL HAVE AGREED ASSIGNMENT TG PATENTS AND APPLICATIONS COUNTRIES OUTSIDE TG TERRITORY TO TITANINC AND ASSIGNMENT LEADCOS AND TITANINCS PATENTS AND APPLICATIONS COUNTRIES WITHIN TG TERRITORY TO TG STOP ASSIGNMENT PATENTS BRITISH EMPIRE FRANCE MUST BE POSTPONED DUE WAR SITUATION STOP PATENTS AND APPLICATIONS OF IG CANNOT BE INCLUDED PRESENTLY BUT QUESTION WILL BE STUDIED STOP PLEASE CABLE APPROVAL STOP GERMAN PATENTS 571387 AND 588230 AND 604311 ARE IN LEADCOS CZECHOSLOVAKIAN PATENT 39354 IN TITANIUM PIGMENT CO INCORPORATEDS NAME ALL OTHER PATENTS TG TERRITORY IN TITANINCS NAME STOP CABLE TITANINC BOARDS AUTHORISATION I ASSIGN TITANINCS PATENTS AND APPLICATIONS TO TG AS ABOVE OUTLINED STOP SUGGEST FORMAL RESOLUTION BE MADE GENERAL REGARDING ASSIGNMENT AND MAILED STOP PLEASE ACKNOWLEDGE CABLE UPON RECEIPT—JEBSEN’

“The suggestion here is that Titangesellschaft will assign their United States patents and applications to National Lead Co. and National Lead Co. and Titan Co., Inc., will assign their applications and patents in Germany, and other countries within Titangesellschaft’s territory to Titangesellschaft.... Several years ago National Lead Company formally renounced maintenance of any European patents owned by it, putting upon Titan Co., Inc., the obligation to pay all maintenance charges and hence, under the Agreement of 1920, Titan Co., Inc., could have requested formal assignment of these patents. They have not done so in order to save the expense of preparing the assignments and recording them in the various countries. The question is, therefore, whether Titan Co., Inc., should assign its patents and applications to Titangesellschaft.

“In discussing this matter with you on December 8th, it appeared to us that to assign these patents in Germany to Titangesellschaft might involve some risks for the future. For instance, if the Germans owned all the patents now held in Germany by Titan Co., Inc., and if, as a result of the war they were forced by their government, or through other circumstances, to abrogate the main agreement, they would be free to export their products and, in general, take themselves outside of the titanium family cooperation. I cabled this thought to Dr. Jebsen, soliciting his views. A reply has just been received which reads as follows:

“‘PROPOSAL MY CABLE DECEMBER 7 IS NOT TGS BUT MINE STOP CONSIDER THIS BEST PRESENT CIRCUMSTANCES TO SECURE LEGAL POSITION ALL AROUND STOP EXACTLY LEGAL POSTWAR POSITION PATENTS OTHERWISE VERY UNCERTAIN STOP PREVENTION IMPORT PARTLY SECURED IN FUTURE BY PATENTS IN RESPECTIVE COUNTRIES BUT WILL BE CHIEFLY SECURED BY ALL COMPANIES SELFISH INTEREST IN COOPERATION BECAUSE OF ADVANTAGES ALREADY REALIZED BY EXPERIENCE.’

“You will see that Dr. Jebsen believes that in view of the war the best possible legal position for each of the members of the family is to hold title to all patents in its territory. He believes that prevention of import and export competition will chiefly be secured in the future through the individual company’s recognition of the advantages to be derived from maintaining the cooperation, having through experience appreciated the value of this cooperation.

“It should be noted in this connection that even if Titan Co., Inc., retained title to the patents in Germany, and should the government force abrogation of the main agreements, particularly with a view to fostering German exports, they will find means to negate Titan Co., Inc.’s patent rights also. Should the situation develop where Titangesellschaft is forced, perhaps against its will, to engage in export competition with other members of the titanium family, then, as pointed out by Dr. Jebsen, that competition can be controlled by patents owned by the other members of the family in their particular territories. Therefore, I believe we should approve Dr. Jebsen’s proposal.”

That this plan was put into effect is shown by a resolution adopted by the Board of Directors of Titan Co., Inc., on December 19, 1939:

“Resolved, in furtherance of that certain License Agreement between Titan Co. A/S (predecessor in interest of this corporation) and Titangesellschaft m. b. H., of Leverkusen, Germany, dated October 3/20, 1937, and pursuant to the recommendation of Dr. G. Jebsen, Vice-President of this corporation, the officers of this corporation be and they hereby are authorized and empowered to execute and deliver in its name and behalf appropriate assignments to said Titangesellschaft of all patents and patent applications of this corporation, within the Licensed Field as defined in said Agreement, in countries now embraced within the territory of said Titangesellschaft as defined in said Agreement and subsequent amendments thereto, in consideration of the execution and delivery by said Titangesellschaft to this corporation of appropriate assignments of all patents and patent applications of said Titangesellschaft, within said Licensed Field, in countries embraced within the territory of this corporation as defined in said Agreement and subsequent amendments thereto; and upon the express understanding and condition that such reciprocal assignments shall in no way alter or limit the general intent and operating effect of said Agreement of the several other rights and obligations of the respective parties thereto.”

Among the patents so assigned to avoid seizure by the Alien Property Custodian is one covering the new rutile pigment previously mentioned.

In the cable which has just been cited, and the action taken pursuant to it, there is an example of postwar planning which has been all too prevalent in these cartel groups. This is not the only instance in which a German company’s United States patents have been taken over by an American cartel partner to avoid seizure by the Alien Property Custodian. The understanding that such assignments shall only operate during the war and that after the war the game shall take up where it left off is of great importance. Government postwar planning should not fail to take into account and deal forcefully with the secret postwar plans of private cartels.

In a system of free enterprise, the superior product which can be produced and sold at the lowest price is able to take the place of competing products inferior in quality or higher in price. Under a cartel system inferior or more expensive products are allowed to hold a share of the market which they would lose on a competitive basis.

This is well illustrated in the case of titanium pigment and an inferior product called lithopone. The latter is a pigment in the manufacture and marketing of which duPont has taken a leading part for many years. Since 1933 National Lead and duPont have maintained identical prices for titanium compounds. There have been changes in market prices on the average of twice a year on all grades of pigments and in every instance the effective date of price change of each party has been the same. With respect to lithopone which is competitive with the calcium sulphate composite pigment, there has been maintained a constant differential. Unless the lithopone were priced below the titanium compound, it could not sell. Therefore, irrespective of costs of production the titanium compound has been priced 2 cents a pound above the price of lithopone. An honest technologist who knows that a better product can be made at a profit to undersell an inferior competing product cannot be expected to be happy in a situation which holds back the better and aids the poorer.

One of the worst features of cartel control lies in the overlapping of fields which is found in the case of large companies such as duPont and I. G. Farben. These companies are largely concerned not only with the production of pigments but also many other chemical products.

It is difficult to believe that the public interest has been adequately served by having the most valuable of white pigments subjected to complete control in this country and throughout the world by a cartel. What steps a free technology unfettered by cartel restrictions might have taken one cannot say with certainty. One may be quite sure that when the cartel shackles are broken, titanium will take its rightful place as not only the most important and useful of all pigments but also for a wide variety of other industrial uses.