Perth Amboy evening news., 1918-07-13

In order to determine whether or
not the Roessler & Hasslacher Chemi-
cal Company, the Niagara Electro
Chemical Company and the Perth
by German interests, an inquiry into
the ownership of the stock In these
three companies was begun yesterday
by United States Deputy Attorney
General Becker. The investigation Is
being conducted at the request OF A.
Mitchell Palmer, alien property Gus
todian. Mr.. Becker Is aiming to prove
that when the United States entered
the war a majority of the stock of
these three compaaies-and perhaps
others-was owned IN Germany. If he
succeeds he go ~ -1E;ent VIII lake
over the control of these concerns.
Two of these three large chemical
plants are located in this city and the
third is at, Niagara Falls. William
A. Hamann, treasurer of the Roessler
& Hasslacher Chemical Company, was
the first witness called yesterday by
Attorney General Lewis. James M.
Giffen appeared as counsel for the
chemical company. Joseph II. Choate,
Jr., represents the Alien Property
Custodian in the investigation.
The government Is endeavorlng to
show that q large German firm, known
as the Gold and Silver Reduction Proc
ess Company of Frankfort was In pos
session of 80 to 80 per cent of the
stock of the above mentioned chemical
companies at the time the United
States went into the war. If this is
shown, control of the corporations will
pass into the hands of the Alien Prop
erty Custodian.
1t is the purpose of the investiga-
ton to determine whether the transfer
of $500 shares of stock held in the
RoessIer & Hasslacher Company by
n. Z If oh
made at a figure so far below the
book value of the stock as to consti
tute a subterfuge and q disguise as 10
the real control Of the stock.
Opening the case. Mr.. Becker said
he would seek to show that between
so and 80 per cent or the STOCK OF
Roessler e. Hasslacher of New York,
which sells chemicals made by cleo
tricaI process of the Niagara Falls
Electro Chemical Conipa'I''. Niagara
Falls and of the Perth Amboy Chem
Icai Company of this city, is owned by
German interests.
stThe mother corporation of al
these concerns" he declared, was tht
Gold and Silver reduction, Process
Company. a corporation in Germany
He said he would show that Oscar
r.. geitz a New York lawyer, went tc
Germany just before this country en-
tered the war and succeeded in get
ting the Gold and Silver Reduction
Process Company to sell in that coun-
trv great portion of the stock oi
the three corporations now under In
vestigation.
Mr. Hamann was questioned for
more than two hours by Deputy At
torney General Becker and Mr.
Choafe. Mr.. Hamann is director and
treasurer of the Roessler & Hasslacn,
er company, treasurer of the Niagara
Falls firm and a director of the Perth
Amboy Chemical Works.
Transferred 20 Americans
'I want to ask you to explain
transfer. of stock in these chemica
companies made in February. 1877
by the Deutsche Gold und Siipei
and others In this country" said MT
Becker to Mr.. Hamann.
"Well, that was DONE" replied Mr.
Hamann, ''to have the ownership oi
the American institutions In the
hands of American citizens"
Q. Are you an American citizen. A
Yes, born here.
Roessler & Hasslacher Company 9
citizen of this country? A. Yes. 9
naturalized citizen, born in Germany
q. And Mr.. Jacob HasslacherH A
Born in Germany, but naturalizec
citizen OF the United States.
O. DID this uFIn beilu us IOhhacA'
tiaI agent. Oscar r. Seitz. to Ger
many early in 1917 to have a con-
adorable amount of stock in these
companies, which appear TO have
formed themselves into a pool, trans
ferred to Mr.. Roessler and others IN
this country? A. Yes. We wanted 9
majority of the stock owned by Am
erican citizens.
Before Mr. Hamann began hii
s+atament of the ownership of the
stock of the companies Joseph III
Choate attorney for the alien prop
erty custodian, suggested that ht
give the total amount OF outstanding
stock. The witness did so as follows
Roessler g. Hasslacher, lS,0Ot
shares, par value $4,000
Niagara Electro-Chemical, 1000
shares par value 100000.
Perth Amboy Chemical Company
600 shares, par value 100000.
Huge Dividends Paid.
Mr. Hamann admitted that ther'
was a mutual ownership OF the stocl
between the three companies, ant
that much of 1t originally was owned
by the Deutsche Gold and Silvel
Tchetde-Anstalt of Frankfurt. and al
lied interests in Germany.
Replying to a question OF Mr.
Becker. Mr.. Hamann told OF enorm'
Gus dividends these chemical com
panies in America had paid. The
Roessler & Hasslacher Company paiC
so per cent. on its capital stock II