New-York tribune., 1918-08-22
5 Bayer Company
Officials Arrested
BY Alien Custodian
A. Mitchell Palmer Also
Conhscates Stock Of Bayer
Company's Subsidiary

With the arrest Of five officials and
employees of the Baycr Company, Inc,
one of the largest chemical concerns
in this country, and the confiscation
OF the stock Of Williams e. Crowell
Color Co., Inc, a subsidiary concern,
and $250,0O0 in accumulated profits, A.
Mitchell Palmer, Alien Property Custo-
dian, announced yesterday that he had
frustrated plan to acquire for Ger
man interests substantial portion
OF the Bayer company business and
establish it on a water front property
on the Jersey shore of the Hudson
River.
The five men arrested by the Depart
ment Of Justice we're:
Herman c. A. Seebohm, 43O East
Nineteenth Street, Brooklyn, director
and secretary of the Bayer Company
and director. assistant treasurer and
secret stockholder of Williams e.
Crowell Co.
Dr. r. j. Pabst, s29 Park Avenue
manager of the New York and South
ern sales department Of the Bayer com
pany and secret stockholder in the sub
sidiary concern.
A. Reiser, Maiden Lane, Office man
ager of the Williams G. Crowell Com
pany.
Dr.. Adelbcrt segin. 1T Hudson
Street, chief of the pharmaceutical de-
partment in the New York Offices Of
the Baycr Company.
DR.. Rudolph Hut, former director
Of the Bayer Company and former
manager Of the Boston Office and secret
stockholder of the Williams & Crowell
Company.
Spraguc Questions Prisoners
The men were taken on Presidential
warrants and are charged with being
dangerous enemy aliens. All but DR..
Hutz, who was taken in New Hamp-
shire, we're taken to the New York
Port Alien Enemy Bureau and ques-
toned by Rufus w. Sprague, jr, head
of the bureau.
The Bayer Company was taken over
by the Alien Property Custodian last
January, and the business is now be-
ing conducted under the supervision of
directors appointed by Mr.. Palmer.
The Williams & Crowell Company, of
Providence, was the concern purchased
by the German representatives through
which it was hoped to rcjuvenate the
former German interests In the Bayer
Company after the war.
Mr.. Palmer has turned the stock of
the Williams & Crowell Company and
the $250,000 profits into the treasury of
the Bayer Company. This was done
after Charles j. Hardy lawyer, of
165 Broadway, had reported that the
purchase of the subsidiary concern
was clear case of camouhage and
had expressed his desire to turn over
all of the stock and money
Wanted Edgewater Site
According to information made pub
lie by Mr.. Palmer, Mr.. Hardy and Mr.
Seebohm were the moving spirits in
the plan which involved the financing
and the purchase OF the Williams &
vldcd for the purchase of site for a
new river front plant at Edgewatcr,
n. D., sum of money having been paid
to bind the option given to the German
representatives..
Last January Mr. Hardy went to the
office of the Alien Property Custodian
at Washington and said that he and
the director of the Bayer Company had
decided to turn it over because Of its
German
In organizing the William g. Crowell
Company 1t was provided that dividends
should not exceed 10 per cent. 80 that,
despite the fact the profits Of the
company would amount TO nearly
5000 year, not more than 10000
Of this sum could be paid to the stock
holders.
Still Controlled Bayer Company
The former officers and representa-
tivcs of the German interests in the
4
ton Of having new company which
could take over the business, if ncces-
sary, Of the Bayer Company for the
sale Of dyestutfs and chemicals
In addition they had contract with
the Haycr Company which would net
them about $4,000 II month clear profit
and leave them with Il surplus at the