New Britain herald., 1918-10-19
ATTEMPT TO CORNER
Us CARBOLIC Acid
Germans Had Scheme to Prevent
It Going TO Allies

New York, oct. 19.-The faith Of
the German war lords in a triumphant
termination of their war by the
spring of 1916 appears in the story Of
the 0rganiza ton known as the Chen1i-
cal Exchange association, told yes
terday by Francis P. Garvin, director
of the bureau q investigation in the
office Of a. Mitchell Palmer, Alien
property custodian.
The history Of the Chemical EX-
change association was unearthed by
Mr.. Caravan in his investigation Of
German owned concerns reQ&tly
taken IS enemy property. 1t waS fin,
anced from Berlin and arranged for
here by Count Won BeTnstor]f and Dr.
Heinrich F. Albert and had for its
object the cornering OF all the carbollc
acid in this country TO prevent its
being used in the manufacture of
munitions for Germany's enemies,
The plan was so successful that be-
tween June, 1915. and March, 1915.
its organizers did gain possession of a
vast quantity of carbolic acid, This
since they were unable to send it 10
Germany. they converted into harm
less pharmaceutical products such as
salicylate Of soda, salol and artificial
oil of wintergreen and sold their
stuff at an excellent profit.
DR. Hugo sch7ve ger who died last
December was the ASCENT chosen by
Bernstorff and Albert TO carry out
the plans for buying UP all the avail
able carbolic acid in the United
states. Schweizer was q naturalized
American and a, chemist employed
ny tho E5aEer Company, makers OF
aspirin ia blets.
He began his arrangements through
the Hayden Chemical company and
tho Bayer company both of which
have since passed into the hands OF
the Allen Property Custodian. And
having learned through them that
Thomas A. Edison had invented q
synthetic carboIic acid which was be
ing sold through the American OIL
and Supply company of Newark he
set out to get control Of the supply
and succeeded in entering into a con-
tract in June, 1915.
BY the terms Of the contract no
was to receive 5000 pounds every
day between July l, 1915.
and December 81, 1915, and 1000
pounds ., day from January I, 1915,
to March 81, 1916. He was able to
get it because he was ready to pay
about twice the market price. No
contract was made for deliveries
after March. 1915. To the confident
German mind it did not seem WORTH
while
To avoid doing business in his own
ma me he organized the Chemical eN-
change association, which was CO.
partnership consisting of himself and
Richard Kny. They put up 100000
il cash as a guarantee that they
would carry out their contract with
the American Oil and Supply COM
pany, and furnished q $4,000 bond
besides. TIE Chemical Exchange
association never filed a certificate
that it was in business and kept no
books or records. But the American
Oil and Supply company delivered to
it large quantities of carbollc acid
which Schweizer and Kny converted
and sold at a profit Of $4,000.
Mr.. Caravan has learned that Their
concern was financed through the
banking house of G. Amsinck &, ca,
which gave them credit to the
amount of $500, 900. forwarded to V
from Berlin in certificate of the Ger
man government.
DR.. Albert, for his good offices la
getting Schweizer & Kny their con-
tracts, was honor guest at a dinner
by them in 1916 and they presented
to him a loving cup. There We're
draper German wit present suggested
that A toast to the Herr Dol7tor bo
drunk in carbolic acid.