The sun., 1918-07-30
FOE CHEMICAL
WORKSSEIZED
Big Heyden Plant Latest to
Be Taken Over by
..-- Palmer.
OWNERSHIP Is DISGUISED
New York Attorney Involved
in Attempt to Conceal
TeutOn Control.
OWNERSHIP Is DISGUISED

Another great German corporation, the
Heyden Chemical Works. the second
largest corporation OF its kind in this
country. which has a plant at Garfield.
N. j.. and an office in 135 William
street. New York, has been taken over
by A. Mitchell Palmer, Alien Property
Custodian.
1t has the exclusive use In the United
States of many valuable patents, proc
esses and formula for the manufacture
Of salol sodium salicylate, saccharine.
formaldehyde. benzoate OF soda and
other by-products Of carbolic acid.
These will be utilized for America.
The Heyden works did $4,000, 900
worth OF business in 1911 Its taking
over follows the discovery by Francis p.
Garvan. director Of the bureau Of inves-
tisation for the Alien Property Gus
todian, that 1t was owned by the Chem
ieche Fabrik Won Heyden OF Radebeul,
Germany. the largest chemical company
In the world. and that an attempt to dis
guise the real ownership had been made
by George Simon. American representa-
49, t"S 'Sihnii WIN the
aid OF T. Elicit Hodgskin, a New York
attorney
simon's Father-in-law Helps.
Garvan found that simon, with Hodgs-
kin's help, sought to make 1t appear
that the Heyden works was American
owned by the alleged purchase Of 745
shares OF stock owned by the Chemische
Fabrik Won Heyden, the ownership OF
which in 1915 netted the German com.
pany Sl.o26.62s. Richard Kny Of Brook
iyn, Simon's father-in-law. supplied the
money to finance this sale"
Simon is a German subject and lives
In Brooklyn. He came to America In
1900 as the agent of the Chemische
F'abrik Won Heyden and organized the
Heyden Chemical Works. Later the cap.
ital stock was increased from $40, 900 tc
$lbO,oo0. 1t was divided into 75o
shares, Of which the German Company
received 745 for the patents and proc
esses which 1t made over to the Hey.
den company. In the contract Del
cent. was guaranteed on the stock, large
royalties and profits Of the German firm
thereby being cancelled. This contrac,
recognized the property rights of the
German company.
On Caravans grill Simon admitted the
German ownership and said that the
American company was reorganized tc
hide that fact, In 1916. said Simon, he
sought the advice Of Hodgskin of %
Nassau street with a view to American.
izing the Heyden company. Hodgskir
represented various German interests
including the Bauer Chemical Company
and the Jaeger Sanitary Woolen Sys
tenn. both OF which have been taken over
by Custodian Palmer.
AS the Chemische Fabrik Won Heyder
had lost all its property and holdings ir
England and Japan because Of the wal
Simon went abroad TO ascertain the
wishes Of the German company regard.
tng the safeguarding OF Its interests
here. On his return Simon arranged fol
the purchase by Hodgskin Of the 74I
shares owned bv the Chemische Fabrik
Simon told Garvan that he wanted tc
obtain this stock for himself. but being
do so.
Agreed TO Sell Boch Control.
Hodgskin's purchase" was mad,
! April 2s. 1916. He took the 745 share.
at $4,000 par value. Through Simor
he borrowed the $4,000 from Simon,
father-in-iaw. Richard Kny. giving t.
Kny a certificate for the 745 shares al
collateral. To protect the German own
| ership. however, Simon got Hodgskir
TO write letter to him agreeing to sci
back the stock to tho German interest.
at any time within eighteen months fol
$4,000 and interest.
Hodgskin apparently overlooked on,
phase, which he had not discovered un
til late in 1917. The contract between
the Chemische Fabrik Won Heyden anc
the Heyden Chemical Works, wherein
the valuable processes. patents and for
mulas were turned over to the Ameri
can company provided that the dura
ton of the contract be unlimited unIes,
/ either party gave six months motto,
! of desire to terminate the contract.
Accordingly on December IS. 1917
IIodgskin called a melting of the di
rectors OF the Heyden Chemical Work.
and caused resolution to be adopted
whereby the contract of June n 1906
| between the two companies be cancelled
as OF December 81. 1915. BY this tim,
! Hod gslsin had not only obtained contro
OF the company but had caused himsel
to be elected president by the board o.
| directors and fixed his salary at SIC,