The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-11-27
SUIT TESTS SEIZURE
OF GERMAN PLANTS
Stakeholder Asks Injunction
Against Sale of Botany
Mills by Palmer.
SEES TREATIES VIOLATED
StOehr, Naturalized Teuton,
Also Alleges Constitution
Will Be Violated.

A suit that will serve to test the
constitutionality OF the taking Of $780,
100000 worth OF German property in
this country by A. Mitchell Palmer,
Alien Property Custodian. and the
right of the Government to sell the
properties to Americans whose loyalty
is unquestioned was brought yesterday
in the United States court by Max w.
Stoehr.
Stoehr. a naturalized citizen Of Ger
man birth, sues as the owner OF forty
four shares OF the capital stock Of
Stoehr & Sons, Inc. New York cor
poration which owns 2O,5s0 shares of
the capital stock of the Botany
Worstes1 Mills, Passaic. n. j.
Sees Treaties ontrayened.
He alleges that the property was
| taken in violation of that section of
the Constitution which prohibits the
taking of property without due proc
ess Of law. He further alleges that the
Alien Property Custodian has adver-
tised for sale two-thirds OF the capital
stock under conditions which prohibit
citizens OF nations with which the
United States is at peace from bidding
and that the proposed sale will be
violation OF commercial treaties be-
tween the United States and such ma
tons as Belgium. Italy, France and
Great Britain.
1t Is asserted that because Of the
limitation of the sale to Americans the
number OF bidders will be lessened the
price obtained reduced and the origi-
nal owners irreparably injured.
The plaintiff asks that an injunc=
ton issue to restrain the Alien Prop
erty Custodian from holding the pro-
posed sale, that he be directed to sur
render the stock TO its original hold
ers and be required to give an ac-
counting for the period during which
he has been in possession.
Argument on the application for an
injunction has been set for Friday be-
fore Judge John c. Knox in the Fed
eral District Court. 1t was said last
night by representative of the De-
partment of Justice that the Govern
ment will present q strong case
against the company and it's officers
When IL was taken over. ii was as
serted that SIS per cent. OF its stock
was in German hands with the own
ership concealed by dummies.
The sale is scheduled for next Mon
day In the Office OF the company in
Passaic. The company has outstand-
ing $4,000 shares of a par value OF
800 each. OF these 25,700 are 10 he
sold. The company did business Of
100000 n year and It's profits aver
aged rs per cent.
Tried 10 Give Wool to Germans. .
The Botany mills were taken over
after an inquiry by Alfred l.. Becker.
Deputy State Attorney General. had
revealed the company's connection
with the Fortsmahn & huffman Co.
In an attempt to supply the German
army with wool brought from British
South Africa and Australia and
shipped to Germany from the United
States through neutral countries.
The Alien Property Custodian placed
the mills with a group OF trustees that
Includes James NJ. Wallace. president
Of the Central Trust Company: Fran
els p. Garvan OF the Alien Property
Bureau and II. C. McEldowney, presi-
dent OF the Union Trust Company of
Pittsburg. The trustees and Mr.. Pal
mer are named as defendants. John
Quinn Is counsel for the company and
the trustees. Louis Marshall bf Gug-
gsnheimer. Cntermyer q Marshall is
counsel for Stoehr.
In advertising the stock for sale in
page newspaper advertisements that
have listed other seized properties soon
to be sold by the Government, Mr..
Palmer said, Properties here adver-
tised are being conducted by the Alien
Property Custodian OF the United
States pending final sale and delivery
to 100 per cent. American citizenship"