New-York tribune., 1918-10-19
A. Mitchell Palmer s.,
DR.. Hugo Schweitzer AMI
DR.. Albert Conspired
Attempt Made to Sso,
TINT Work Charss,
Won Bernstorf Is Coupka
With Teuton Agent. n,
Plan to Control Industry

How German agents in Ar.sl
plotted to buy up all the available n
bolic acid in America TO pr,rep.
manufacture into picric acid for Ms.
making munitions was disclosed
night by A. Mitchell Palmer. AL
Property Custodian.
Count von Bernstorff, DR.. Albert 5,
their fellow propagandists srra,,]
with Dr.. Hugo Schweitser, a rs.n,,
lied American and chemist of III
bayer Company, to prepare and ca
out the plans to hinder the shipm.l
Of munitions to the Allies.
The workings of, the Chemical e
change Association, organized IN Ial;
by DR.. Schweitzer, acre uneartbed n
Francis P. Garvan, director of the ri
reau of Investigation, in his incS,|
into the activities of the Gernn.
owned chemical companies in this s,n
try. which have been taken over n
Gently by the Alien Property Custcisr
In their efforts to insure the yin
ming Of the war By Germany in tn
ter part of 1915 these rropagandistj
through the Chemical Exchange ASS
citation, it is charged, converted ca
bolic acid into harmless pharmaceu1
cal products. thereby eliminating al
possibility Of its use in the making
picric acid, one of the most neeesuI
ingredients OF INT. Large pros
we're made in the manufacture
sallcylates, salol, fornlaldehyde and
pirin from carbolic acid, which VI
thereby kept away from American II
milton makers, and also from muniti5
plants in England, France and Italy
Germans Controlled Industry
The Heyden Chemical Works Of 81
William Street, and the Bayer Ccu]
pany, OF III Hudson Street. were M
two chemical concerns through vhisl
DR.. Schweitzer is said to have> arrange
to carry out his plans. Both of the
concerns are now in the hands OF /,
Alien Property Custodian. The Hey5l
company was owned by the Chemia
Fabrik Won Heyden, Radeubul, of q
many, and the Bayer Company vi
owned by the Farbenfabrikenvo
Friedrich Bayer & Co., of Eloertes
Germany.
The charges OF Mr. Palmer funhs
say:
In 1915. when it became appsr,
that carbolic acid wes necessary ii
gredient in the manufacture Of hs
explosives. Thomas a. Edison inysnte
a synethetic carbolic acid, of which ii
American Oil 6, Supply Company /
Newark became the selling agent Con
paratlvely little carbolic acid was pul
chasabie at that time DR.. Schweitl,
Immediately set out to control thl
supply, and on June %, 1915. enters
into a contract with the American d
O. Supply Company whereby this coz
pany agreed to ship 5000 mounds
caroolic acid each working day iwl
July !, 1915. TO December 81, 1915, sa
1900 pounds each working day fro
January l. 1915, TO March 81, 1916, d
price OF Sl.o6 2-2 per pound cash f'su
july l to December 1, 1915. and 81 Ni
pound cash for ali succeeding delvr;
les. This was nearly double the usail
market price. DR.. Schweitzer put D
100000 in cash, which was furnishsI
Dy, DR.. Albert, as seurity for the fsits
Iul perforancc of this contract, and
$4,000 surety bond,
On June so, 1915, Dr.. Schweitxl
entered into contract with the Hs!I
don Chemical Works, of which Geors
olmon. German subject, was the nisn.
as.ger, whereby Schweitzer agreed to de,
liver all Of the carbolic acid received
from the American Oil & Supply Com
p3ny to the Heyden Works at Carried
n. j., the Heyden Company sgreelnl
TO increase its facilities and conve5
the carbolic acid into salicylic acia
;Seh"eitzer was given an option wheres'
ne might have the carbolic scid ss
converted into sodium salicylsi
methyl salicylate. and saloI.
Name OF Schweitzer Concealed
To obviate doing business in his 0r
name, Schweitzer organized what y,
called the Chemical Exchange Associa'
ton on June 80, the day on which 7
made his contract with the Heyd'
Chemical Works. This association VI
q co-partnership, comprising .
Schweitzer and Richard Kny, father-l'
law Of George Simon. business manass
OF the Heyden Chemical Works, and
one time president OF the concee'
Muller, Schall & Co., of 4o Willis
street. were the sales agents for Y
Schweitzer.
The investigation showed that .
June 90, 1915 (the day after SchweitaSs
entered into his contract with Y
American Oil and Supply Company),ns,
Amsinck & Co., the bankers. wrote Y
Heinrich F. Albert, is Broadway, So
ing that they had received impel,s.
German government certficates' q !.
January l, 1916, as collateral, for Whsj y
they placed at the disposal Of pr' =,
bert a drawing account of s30o,ooV' ! !
Amsinck & Co. acting upon the
structions OF DR.. Albert, gave ths
check to DR.. Hugo Schweitser for si@
600, which they charged TO his accom- os.'
This was the 100000 which Schweins
posted as a forfeit with the AinerI..s =
Oil and Supply Company guarantee
the fuliilment of his contract.