The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-10-19
GERMAN PLOT TO
CORNER MARKET
TN CARBOLIC ACID.
WAS SUCCESSFUL.
All Available Supplies
Were Kept From Reach
ing Munition Makers
SNUG PROFIT
MADE ON DEAL
DR.. Albert and the German
Government Were
Behind It

+ Washington, Oct. 19.-Further dis
closures of the efforts of Count Won
IBernstoff, DR.. HeElricl e. Albert and
other German agents TO prevent the
manufacture ana shipment of mum =
lions to the allies. were made today
by Alien Property Custodian Palm
or. He revealed the workings of
Chemical Exchange Association or
jEanized by Dr. ILgo SChwcitZer in
4lg15, TO buy up all available carbOljc
acid in America and prevent its use
in the manufacture If triHitrotuloul
and other high explosives by con-
verting it into harmless phaTmaCeII-
ical products.
= The story of the Chemical Ex-
change association, SIR. Palmer said
was unearthed by Francis p. Gar
win, director Of the bureau of in
vestigation in his investigation Uf
the German owned chemical COM
*panies in this country which ha o
been taken over by the ellen propertJ
custodian. He found that DR.. Albert
in conjunction with Count Won Bern
storff, arranged with DR. Hugo
Schweitzer, a naturaliZed American
and a chemist of the Bayer company,
10 prepare and carry out plans which
would prevent the shipment OF car
boHc acid to the allies and Amert-
Can munitions manufacturers max
ing high eplosives for them
y The Heyden Chemical works, and
the Bayer company, both Of New
York, which have been taken over
by Mr.. Palmer. were the two chemi-
cal concerns through which DR..
Schweltzer arranged to carry out his
plans, according to the alien prop
erty custodian.
= Edison's invention.
( I'm 1915" said Mr.. Palmer, Thorn
as A. Edison invented a synthetic
'carboaic acid Of which the Ameri-
4can Oil e. Supply Co, Of Newark,
became the selling agent. Compare
tive little Carbolic acid was purChas-
liable at that time. DIR. SchWeitZer
pimmediately set out to control this
supply and on June %, 1915. entered
Einto a contract with the American
z4Oil e. Supply Co, whereby this COM
pany agreed to ship 5000 pounds Of
carbolic acid each working day from
July /, 1915, to Dec. 81, 1915, and A.
600 pounds each working day from
Jan. i, 1916 to March 81, 1916, at a
price nearly double the usual market
price. DR.. SchweitZer put up $780,
900 in cash, which was furnished by
DIR. Albert as security for the faith
full performance of this contract and
S25. 1000 surety bond.
To obviate doing business in his
own name, Schweitzer organized the
Chemical Exchange association. This
association was a partnership,
comprising DR.. Schweitzer and Rich
ard Kny. father-in- law of Geo. ST.
mon, business manager of the Hey
, den Chemical Works. Muller, Scha1l
& Co, Of New York, were the sales
nsaHtR for Dr SChweitZeT
Made Big Profit.
Every effort was made by
Schweitzer and Kny to keep their
contract secret and to prevent the
american people from knowing that
DIR. Albert and the German govern
4ment were behind this contract. In
1.-THE meantime the American Oil e.
Supply Co. delivered large quaint
ties Of carbolic acid to the Heyden
Chemical Works, which was convert
ed into harmless pharmaceutical
preparations and sold; The net profit
lon this deal was $4,000. which
Richard Kny told Mr.. Garvan was
divided equally between himself and
{ DR.. Schweitzer
- THE investigation showed that on
sJune g. 1915, the day after Schweit-
ger entered into his contract with the
Z American Oil g. Supply Co. G. AIMS
Z fnck & Co, bankers, wrote DR.. AL
bert, stating that they had received
samperial German government certi-
5ficates due June ], 1915, as collateral,
for which they placed at the disposal
4of DR.. Albert a drawing account Of
$780, 600.
4 &c. Amsinck & Co, acting upon the
instructions Of DIR. Albert gave their
check to DR.. SchweitSer for $780,
600, which they charged to the ac-
count of DR.. Albert. This was the
8 fO0, 900 which Schweitzer posted as
Ia forfeit with the American Oil &
Supply Co, guaranteeing the fulfill
tnent of his contract"
To celebrate the success OF the
scheme. Mr.. Palmer said DR.. Schweit-
ger and Richard Kny gave a dinner
to DR.. Albert at the Hotel Aston in
New York in the latter part of 1915
and presented him with a loving cup.
Captain Wolf Won Igel, OF the Ger
man embassy, was among the guests.
DIR. Schweitzer died in December,
1917, and among his papers Mr.. Gar
van found statements showing how
completely he was in touch with the
carbolic acid situation in the United
States.
RTI.GAR CABINET REoRGANIZED.
Paris, Oct. 19-The Bulgarian cabl-
net has been reconstructed by Pre-
lnier MaIinoff, according to Dispatch
es from Sofia. Members of opposition