The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-10-19
FOE ACID PLOT BARES'
1915 VICTORY HOPE.
Germans Attempted to Corner
CarbOlic in U. s. to End
Munitions Making.
BERNSTORFF LAID PLANS
Chemical Exchange Organized
With Teuton Money Aided
by DR.. Albert.

Ho lditH VI tHG utfIudH war
a triumphant termination Of their war
by the spring Of 1916 appears in the
story Of the organization known as the
Chemical Exchange Association, told
tor OF the bureau of investigation in the
office of A. Mitchell Palmer. Alien Prop
erty Custodian.
The history OF the Chemical Exchange
Association was unearthed by Mr.. Gar
van in his investigation OF German
owned concerns recently taken over as
enemy property. II was financed from
Berlin and arranged for here by count
Won Bernstorff and DR.. Heinrich +. Al
bert, and had for Its object the corner
ing of all the carbolic acid in this
country to prevent It's being used in
the manufacture of munitions for Ger
many's enemies. The plan was 10 sue
cessful that between June, 1915, and
March. 1916. its organizers did gain
possession of a vast quantity of car
bolic acid. This, since they were I'M
able to send 1t to Germany, they con-
verted into harmless pharmaceutical
products such as salicylate of soda,
salol and artificial oil OF wintergreen
and sold their stuff at an excellent
profit.
DR.. Hugo Schweizer. who died last
December. was the agent chosen by
Bernstorff and Albert to carry out the
plans for buying up all the available
carbolic acid in the United States.
Schweizer was n naturalized American
and a chemist employed by the Bayer
Company. makers Of aspirin tablets.
He began his arrangements through
the Hayden Chemical Company and the
Bayer Company, both of which have
since passed into the hands of the Allen
Property Custodian. And having learned
through them that Thomas A. Edison
had invented synthetic carbolic acid
which was being sold through the Amer
lean Oil and Supply Company of New
ark. he set out to get control Of the
supply and succeeded in entering into
a contract in June. 1915.
Terms of Contract.
BY the terms of the contract he was
to receive 5000 pounds every working
day between July /. 1915, and December
81, 1915, and 1000 pounds day from
January 1, 1916, to March 81. 1916. He
was able to get It because he was ready
to pay about twice the market price. No
contract was made for deliveries after
March, 1916. To the confident German
mind It did not seem worth while.
To avoid doing business In his own
name he organized the Chemical Ex-
change Association, which was a copart-
nership consisting Of himself and Rich
ard Kny. They put up 100000 in cash
as a guarantee that they would carry
out their contract with the American OIL
and Supply Company. and furnished
a $4,000 bond besides. The Chemical
Exchange Association never filed a GER
tificate that 1t was In business and kept
no books or records. But the American
Oil and Supply Company delivered to it
large quantities Of carbolic acid which
Schweizer and Kny converted and sold
at profit OF $S16.000.
Mr.. Garvan has learned that their
concern was financed through the bank
ing house OF G. Amsinck & Co.. which
gave them credit to the amount of $780,
900, forwarded to II from Berlin in GER
tificates Of the German Government.
DIR. Albert, for his good offices in get
ting Schweizer & kny their contracts,
was honor guest at a dinner by them in
1916 and they presented to him a loving
cup. There were loud cries of apprecla-
ton when some dapper German wit pres
ent suggested that a toast to the Herr
DOktOr Dc uTuHh III SdrDOllC dClu
Sale of Property.
THE SUN was in error when 1t stated
yesterday morning that the Enemy Alien
Property Custodian would sell at auction
November the property of Meyer &
Co. of $50 to SsS Broadway. This COM
pany manufactures embroideries and
imports laces. white goods, &c, with
mills in Switzerland.
The firm to be sold at auction is a
branch OF a Munich house and did busi-
ness in America under the name OF
Franz b. Mater. Mailer dealt In church
statuary, windows. sc. The American
representative Of the Munich house has
been out of business for several months
and the goods to be sold are contained
in storage houses in New York and
Brooklyn.
Meyer q Co. are still in business. are
In no way in conflict with the Allen
Property Custodian, and their business
will not be sold as stated under his
supervision.