The sun., 1918-07-04
PEEL VENEER, SEIZE
Big GERMAN FIRM
Palmer's Investigators Expose
Dummy Sale Of Lace
Company.
OWNER GERMAN OFFICER
Max Henkels, Said to Be Of
Kaiser's Reserves, Was
Founder.

Another German owned commercial
enterprise dropped into the lap OF A.
Mitchell Palmer, Alien Property Gus
todian, yesterday when Government IN
vestigators penetrated the elaborate sys-
tenn by which Max Henkels, said to be
German reservist officer. sought to
conceal the true ownership OF tie Inter-
national Textile, Inc. a lace manufac-
turing firm at Bridgeport, Conn.
Despite the destruction Of books,
papers and other ordinary agencies
through which the corporation was made
to appear to have lost its German owner
ship. the Government investigators pro-
vided sufficient evidence to warrant Mr..
Mitchell In SELLING 1t. This evidence In
cluded reports that Henkels, although a
graduate Of Columbia University, still Is
a German citizen; that he tried to get
back to that country in 1914 aboard II G
Kronprinzessin Cecile. but failed; that
he applied for American citizenship only
this year, and that he travels between
the seized factory and his home in
Bridgeport under a limited zone permit.
The Investigation of tire International
Textile, Inc, was made by Francis +.
Garvan, director Of the bureau OF In
vestigation OF the Alien Property Gus
todian. II showed the business was es-
tablished In Bridgeport by Max Henkels
In 1903 under the name of Alb. q e.
Henkels, Inc. Max Henkels is a son OF
the founder and head OF the firm OF
Alb. & L. Henkels of Langerfeld. Ger
many, the largest lace manufacturers In
tire world.
In March a hurried reorganization
was accomplished, the name Alb. & T.
Henkels was dropped. and the same
business blossomed forth under the in
sorporated name of the International
Textile, Inc
The investigation showed that Henkels
owned all of the capital stock. When the
name OF the firm was changed all of the
stock was transferred to H. Albert Phil
lips OF Bridgeport. Phillips gave series
of long term notes for stock under con
tract by which Henkels retained the
virtual ownership.
The value OF the seized property is es.
timated at 100000. In addition TO the
big manufacturing plant at bridgeport
the concern maintains model com
munity group OF dwellings for its en-
ployees and owns a large spinning mil
in Pennsylvania The concern had an
other branch in italy which has beer
seized by the Government there.
Mr.. Palmer also announced yesterday
that he had taken over the firm of NJ
, Welte & Soma. Inc. manufacturers OF
pianos and philharmonic organs. and its
plant at Poughkecpsie. valued al
$1,000
The reorganization OF this. compan.
has been completed and hereafter it viii
be operated by the Government. Edward
Holbroolt. president Of the Gorham Com
pany and of the American Glass Com
pany, was installed as director along
with Barney Dreyfuss. owner OF the
Pittsburg National League baseball
Club Howard f. Mitchell, president OF
the seized company; George c. Foster
pre- ident of the American Piano Com
pany: Z. Hicks Herrick, +. G. Pinkhan
and D. G. Gale. The last four were
elected to represent the Alien Property
Custodian.
Heinrich Goksch. factory manager
ard one of its large stockholders, wal
taken into custody in April on charge
growing ont OF his activity in spreadini
German propaganda. He was sent 4
the Federal prison at Fort Oglethorpc
| Ca, last Tuesday.