The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-05-25
u. S. Takes Over Seven Cor
pOratiOns Valued at More
Than $5,00O,OOO
CONCERNS MASKED
AS AMERICAN OWNED
Fictitious Transfer of Property Discov-
cred by Alien Custodian Palmer
Cotton Was Sent to Germany Through
Neutrals


NEW YORK, May 25-Millions of dol
lars worth of cotton and cotton cloth,
destined for the consumption of Germany
after the war, was lost to the fatherand
and diverted to the uses of the United
States last week when A. Mitchell Palmer,
as custodian OF alien property, took over
the control and stock of seven corpora
tions which since this country entered
tine war have been engaged in the pur-
chase and manufacture of cotton, operat-
ing ostensibly as American concerns.
The corporations, inclusive of their mills
and raw material in storage, represent
value of more than $1,000, 900, and for the
most part are registered under plausible
American names. They are the New Eng
land Waste company, the American Lin
tiers company, the American Products
company, Wolf & Sons, the Anglo Ameri-
can Cotton company and the Richard
Mayer company. Most of these operated
principally in New England.
Mr.. Palmer has discovered that the last
two concerns are the property of Refs
q Co of Heidelberg, Germany, and that
the first five are part of the worldwide
organization of Wolf und Soehne Tor
Wolf & sons of Berlin, one of the larg-
est cotton firms in existence, with
branches in England, Switzerland, Italy,
China and points all through South
America, the West Indies and the Far
East.
For the Wolf concern, the management
of Its American properties was vested in
a board Of three, composed of Adolf Leve,
Lewis +. Sladen and George B. Lund, all
of Massachusetts,. Refs & Co. operated
IN this country through another board,
composed of Richard Mayer, Charles
f. Hicks and Jacob Flatau.
Leve and Mayer were the visible heads
OF the two groups of corporations, and it
was because of their ditfidence in dealing
with Mr. Palmer and his representatives
that there was directed toward the com
panies the suspicious which have resulted
IN their being taken over by the United
! States
When the warnitoke out I'm .I,t,ofe nin
1914 Leve and Mayer were both in Ger.
many, but returned to this country in the
autumn OF that year On their return
both explained that they had arranged
Tor the thorough Americanization of the
companies they represented by the severing
] VI VI NohhtNbipiiS DtlNttH Int companies
and the parent concerns in Germany, and
that they with their fellow directors in
this country, had taken over the Ameri-
can mills and raw materials for their in
terest IN the German main corporations.
! They at once began to buy up high class
cotton and ship it to Germany through
neutral countries. When the embargo
declared by Great Britain and the en-
trance OF this country into the war put
stop to their overseas shipments they
continued buying briskly, while their
manufacturing activity languished. What
cotton they were able to obtain they
stored In small lots in warehouses in this
| country for the purpose, Mr. Palmer con-
siders, of rushing it to Germany at the
conclusion of the war. The value of the
cotton on storage runs well into the mil
lions.
When under the trading with the enemy
act a report was required of all alien
property here, Leve filed a report in
which only trihing enemy holdings were
shown and Mayer made no report at all
Since then Leve has admitted that his
renort was insufficient and Mayer has ad
mitted to large German holdings in his
1 two concerns.
All the cotton in storage has been To-
Gated and will be taken over and sold by
Mr.. Palmers department.