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international affairs in 1941. This famous flyer testified before the Foreign Affairs Committee in the House of Congress:

"In our present position there is no danger of an invasion of North America and very little in South America."

Now this statement is utterly untrue as to both North America and South America! Another witness" was far closer to the truth when he said that according to qualified observers "Hitler could take Brazil by telephone" if the British fleet were out of the way. As for North America, I have given you evidence, and overwhelming additional evidence could be submitted, to show that the German invasion is already here on the economic front.

It is not the facts which are dangerous but failure to recognize the facts and their implication to American life. We can meet the facts squarely as is being done now by slashing attacks from the Antitrust Division of the Department of Justice which has in hand the pattern of German penetration and cartelization. Other agencies of Government in ways which lie beyond the scope of this address are effectively at grips with the problems outlined. Industrially, we at least have the "know how" of production in every vital industry I have mentioned. Access to an improved process of magnesium production, backed by ability and adequate resources will see the production of magnesium within six or eight months. We can safely leave to a now enlightened Congress the needed modification of patent controls and a damming up of royalties flowing to German interests-belatedly, of course, because the German Government taxed out of existence royalties paг. able to American concerns as early as 1933. These funds, deposited in American banks, are used as a credit basis for German purchases and, undoubtedly, for the activities of German agents in this country and South America.

I say that these problems can be, will be, and are being met although we must squarely face an interim period while production limitations are being overcome as rapidly as humanly possible and industry is expanded and converted to national defense needs. In that crucial period, our real danger is in the advice of such men as Lindbergh. We credit him with sincerity in having first opposed aid to Britain, and even now when he says:

"We can endure in this hemisphere regardless of what happens abroad." "5 Lindbergh may be quite sincere, but unenlightened sincerity is dangerous. I mention Lindbergh not because he himself, is important, but only as a symbol or spokesman in a school of what I call the "innocent appeasers". Their sincerity, like Lindbergh's, is not at issue, but the validity of their point of view in the light of national safety is. This group includes two classes of opinion: first, a great body of well-meaning American citizens who, like all of us, are horrified at the awful slaughter and destruction of modern warfare as invented and applied by the Germans, and who therefore instinctively and emotionally follow anyone who talks about "staying out of war" and effecting a "negotiated peace" without thinking through to the ultimate result when continental resources could be mustered against us, with shipbuilding facilities alone four times our own. The second group is composed of business or industrial leaders who contemplate with equanimity doing business with a Hitler-dominated Europe.

The facts which I have given you perhaps demonstrate why this latter group is so large. A pool taken by Fortune Magazine in September, 1940, showed that out of 15,000-Presidents, Directors and executives of 750 of the largest corporations of the country owning 52% of the United States' corporate assets, 48.3% thought that American business could go on as usual after a Hitler victory. Only 2.6% were opposed to doing business with a Hitler-dominated Europe.

This is not by any means a vote of disloyal Americans or pro-Nazi Americans. They simply do not see the basic incompatibility in our American order of things and the totalitarian pattern. They do not fully realize what German businessmen rapidly learned that while labor problems were suppressed with a strong hand, and free unions liquidated, the businessman himself soon went down before the same juggernaut of the totalitarian state. I talked with one of the German factory owners recently who walked out leaving all behind him, because he could not stand the Nazi pattern of destruction. This group of "innocent appeasers", or

14 Ex-senator E. W. Gibson testifying on the Lease-Loan Bill (H. R. 1776) on January 25, 1941. See also former ambassador William C. Bullitt's statement on the same day. is Testimony before Foreign Affairs Committee, House of Representatives, January 23, 1941 on H. R. 1776.

should I say simply "uninformed appeasers", are not fully aware of the scheme of penetration I have described to you, with world domination as the ultimate objective. This credulous group believed Hitler when he told Carl Von Weigand. the Hearst correspondent, last summer that he, Hitler, had no interest in America; that statements about "Fifth Columnists" were lies; and that as far as he was concerned America was for the Americans and Europe for the Europeans. It is this group which in the face of known facts such as I depicted to you, might be the foundation for an appeasement policy such as that of the Chamberlain Government in England where those in command waited calmly like ostriches with their heads in the sand until their tail feathers were blown off by bursting bombs from German airplanes.

Many in this group in American life think as Lindbergh said before the Foreign Affairs Committee, that the War was in vain and that England should have submitted-that now America's role should be to assist in concluding a "negotiated peace". As an American recently returned from London aptly answered Colonel Lindbergh: "Ask the people living in Belgium, Holland, Norway, Denmark, Poland, Czechoslovakia, and France, what they think of a negotiated peace." Each of these countries has had a negotiated peace with Hitler. The people know what it means.

It is because of the danger from this group that I was glad to come here in the heart of the isolationist country, in the City in which I was born, to tell you bluntly such facts as I am at liberty to state. We are too complacent, too at ease, too unaware. The women are playing too much bridge and spending too much time having their hair fixed. The men are playing too much golf. The youngsters are playing with high cylindered toys upon our highways; drinking too many chocolate malted milks and graduating too early to cocktails. What we need is a hundred Paul Reveres to ride the length and breadth of this land and tell the country-"wake up! Wake up! America!"

When I was at school in this very city and later at college nearby, I used to think, sometimes with envy, of the Americans who had lived at the time of the American Revolution. Those were the days of deeds and hard-won achievements, of goals to be fought for and principles to be written down immortally. Compared to those days, our own period of history seemed tame indeed-even the Western frontiers were gone!

My friends, these are such days. The liberty which our forefathers fought for, and which we take for granted and unconsciously enjoy from day to day, is again at issue. A barbaric invasion of proportions unexcelled in history is upon us, fortified by science and dedicated to destruction, an old form of tyranny in a new disguise of ruthless mechanical efficiency-bombing and machinegunning helpless men, women and children who thronged the highways and by-ways of Holland, Belgium and France, laying waste communities as happy and prosperous as this one where people who are our very kith and kin lived under free Governments, with priceless institutions of law and justice erected through centuries of human progress. Now all are obliterated before a juggernaut of barbaric conquest.

Let us squarely face the fact that the world cannot exist half Nazi and half free. Let us clearly and calmly confront the fact that the greatest crisis of our history is here and that as surely as the clock ticks by each tragic second in Europe, the kind of the World our children will live in is being determined. We of this generation inherited-we did not earn the institution of democracy. With gratitude for the past, let us clearly perceive that those relatively happy carefree days which we have known in the greatest democracy on earth, are now numbered. Hereafter, that kindly human world which we have known, epitomized by the great figure of the Lincoln Memorial, which I have gazed upon with renewed reverence as I drive to my office each morning in Washington, D. C.-that kindly world with "malice towards none, with charity towards all, with firmness in the right as God gives us to see the right"-that world will be preserved only as we earn and re-earn the right to our inherited liberty. We must think clearly, decide fearlessly, and act decisively. Only then will we keep faith with, and discharge the trust reposed in us by citizenship in this great land.

EXHIBIT No. 2790

ACTIVITY AND APPROPRIATIONS OF THE ANTITRUST DIVISION DURING THE FISCAL YEARS 1939, 1940 & 1941 COMPARED WITH 1938 AS 100 PER CENT

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ACTIVITY AND APPROPRIATIONS OF THE ANTITRUST DIVISION DURING THE FISCAL YEARS 1939, 1940 AND 1941 COMPARED WITH 1938 AS 100 PERCENT

EXHIBIT No. 2791

ANTITRUST DIVISION, DEPARTMENT OF JUSTICE

Important procedural steps taken or to be taken in court cases

FEBRUARY 7, 1941.

ANTITRUST ACTS

returned.

AJS EMS/tr/mw

On January 30, 1941, an Indictment was returned.

Albion Vein Slate Co. et al., U. S. v. On January 29, 1941, an Indictment was
En. D., Pa. Cr. 8869.
Aluminum Co. of America, et al., U. S.
v. Sn. D., N. Y. Cr. 109-189.
American Magnesium Corp., et al., U. S.
v. Sn. D., N. Y. Cr. 109-190.
American Medical Ass'n., et al., U. S. v.
D. of Col. Cr. 63221.

American Society of Composers, Authors and Publishers, et. al., U. S. v. En. D., Wis. Cr. 449-Q.

Broadcast Music, Inc., et al., U. S. v.
Wn. D., Wis. Civil.
Michael Carrozzo, et al., U. S. v.
No. D., Ill. Cr. 32271.

On January 30, 1941, an Indictment was returned.

On February 4, 1941, the defendants filed a motion to expunge portions of the Indictment and to exclude certain evidence.

On February 5, 1941, the Jury was drawn and opening statement made by the Government. Justice Proctor denied Motion to Expunge.

On February 5, 1941, Information was filed.

Defendants are to voluntarily appear on or before March 5, 1941.

On February 5, 1941, a Consent Decree was entered.

On February 1, 1941, an Opinion was filed by Judge Sullivan holding labor union activities charged are legitimate and lawful, and that defendants are immune from prosecution under the Sherman Act by reason of the NorrisLaGuardia Act.

On February 4, 1941, an Order was entered sustaining demurrers of the defendants, making Opinion a part of record, and allowing exceptions to the Government.

Corning Glass Works, et al., U. S. v. On February 3, 1941, Motion to take Sn. D., N. Y. Cr. 108-164.

The Dow Chemical Co., et al., U. S. v.
Sn. D., N. Y. Cr. 109-191.
Food Distributors' Ass'n., et al., U. S.
v. D. of Col. Cr. 9306.

General Electric Co., et al., U. S. v.

Sn. D., N. Y. Cr. 108-172.

testimony was made before a Special Master on "Philips' " Motion to Quash Summons. Motion granted.

On February 5, 1941, N. V. Philips' entered a plea of Not Guilty and withdrew its Motion to Quash.

On January 30, 1941, an Indictment was returned.

Bond was fixed at $1,000 for each individual defendant, and arraignment was set for February 14, 1941. Argument on the defendants' Motions postponed to February 24, 1941.

General Petroleum Corp. of Calif., et al., On January 28, 1941, Judgment was en

U. S. v.

Sn. D., Calif. Cr. 14149–M.

tered permitting Seaside Oil Company to withdraw its plea of Not Guilty and entered a plea of nolo contendere. Fine of $4,500. was imposed. Total Fines: $84,500.

On the same date the case was dismissed as to Tide Water Associated Oil Company.

B. Goedde and Co., et al., U. S. v.

En. D., Ill. Cr. 15253.
Griffith Amusement Co., et al., U. S. v.
Wn. D., Okla. Civil 172.

William L. Hutcheson, et al., U. S. v.
U. S. Sup. Ct., Oct. Term, 1940. No.
43.

The defendants are to file reply briefs
on or before February 10, 1941.
On January 31, 1941, oral argument was
held on Motions of Columbia Pictures
Corporation, United Artists Corpora-
tion, and Universal Film Exchanges,
Incorporated, for Summary Judgment.
Motions were overruled. Court
granted these defendants an exten-
sion of time to March 1, 1941 to an-
swer Government's Interrogatories
and the exhibitor defendants an ex-
tension of time to March 1, 1941 to
answer or object to the Government's
Interrogatories.

On February 3, 1941, an Opinion was
rendered affirming the Judgment of
the District Court. The Court held
that the use of conventional, peaceful
activities against companies engaged
in interstate commerce by a labor
union in controversy with a rival
union, as long as it acts in its self-
interest and does not combine with
non-labor groups, does not violate the
Sherman Act in view of the Clayton
and Norris-LaGuardia Acts.

Institute of Carpet Manufacturers of On February 6, 1941, a Consent Decree America, Inc., et al., U. S. v.

Sn. D., N. Y. Civ. 12-416.
Local 202, Internat'l. Bro'h'd. of Team-
sters, Chauffeurs, Stablemen and
Helpers of America, et al., U. S. v.

Sn. D., N. Y. Cr. 97487.
Masonite Corp., et al., U. S. v.
Sn. D., N. Y. Civil 7-498.

was entered.

The case is set for trial on February 17, 1941.

On January 31, 1941, Motion for Preference was filed.

On February 5, 1941, a Stipulation was entered marking the motion for preference off the calendar and placing the case on the reserve calendar for February 14, 1941.

Missouri-Kansas Pipe Line Co. v. U. S., On January 30, 1941, Briefs of Appellee,

et al. Panhandle Eastern Pipe Line Co. v. U. S., et al.

(Appeal in Columbia Gas and Electric
Corporation, et al., U. S. v.-Equity
1099.)

U. S. Sup. Ct., Oct. Term, 1940.
No's. 268-269.

Columbia Oil and Gasoline Corporation, were filed.

On February 5, 1941, Memorandum for the United States was filed to bring to the Court's attention the fact that it would appear that the applications are now in substance moot, and that the Court should refrain from passing on them.

Optical Wholesalers' Ass'n., et al., U. S. The case is set for trial on February

V.

Sn. D., N. Y. Cr. 107-149.

17, 1941.

Paramount Pictures, Inc., et al., U. S. v. Hearing on Motion to Dismiss the ComSn. D., N. Y. Eq. 87-273. plaint is set for February 17, 1941.

Schine Chain Theatres, Inc., et al., The Motion for an Order granting leave U. S. v.

Wn. D., N. Y. Civil 223.

to amend the Complaint was withdrawn, and the time of the Schine defendants to file objections to Interrogatories was extended to and including February 14, 1941.

The Smoot Sand and Gravel Corp., et On February 6, 1941, a Stipulation was

al., U. S. v.

D. of Col. Civil 8572.

entered extending the defendants' time to answer Interrogatories to March 1, 1941.

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