New-York tribune., 1918-06-25

declarations, with assurances that the
deals were made in good faith.
Investigations by Francis P. Garvan,
director Of the bureau Of investiga-
ton, however, with the aid of Depart
mcnt of Justice agents, uncovered what
the custodian brands as "a fraudulent
scheme to protect enemy property"
1t was further revealed that during
last winter the cordage business in
Cuba was sold to Cuban corporation
for approximately S1,500,000 cash, and
this money was Immediately dis
tributed to the German stockholders,
"in anticipation of dissolution" leav-
ing the company an empty she'll.
The American Storage Company, the
third corporation taken over, it was
disclosed, is another family company
owning Cuban wharf and warehouse
property, but for reasons which have
not been discovered it has no books
or records of any kind.
Offer No Excuse
When Dieckerhoff, Erbsloh and
Comstock were confronted with the
exposures of Mr.. Garvan they offered
neither excuse nor explanation.
Whereupon the property custodian i'm
mediately took over the properties in
New York, placed the business under
the control of a board of directors
nominated by him, terminated DECKER
hoff's connection with the companies,
stopped his salary and took steps for
restitution Of the Sl,500,000 distributed
to the German stockholders.
in announcing the revelations, Mr..
Palmer said:
The further we probe into the re-
ports made by these German con-
Germs, the more apparent it becomes
that there has been cooperation among
many holders of enemy stock in their
attempts to evade the law. The ex-
tent to which some of these enemy
agents have gone puts them in the
conspiracy class. l want to give warn
ing now that the safest course for
those who come in this class to follow
is to make frank and full report of
their transactions to the Bureau Of
Investigation. 110 West Forty-second
Street, New York City, as soon as pos
sible. Efforts to conceal or hide prop
erty in this country will prove futile,
only putting themselves in q position
where they will suffer the full penalty
of the law"
The cases Of Comstock and his Ger
man clients implicated in the present
exposures are now pending. Convic-
tion for conspiracy to evade the trad
ing with the enemy act is punishable
by ten years Imprisonment or $4,000
fine, or both.
GAIL Regular" Says Comstock
In answer to the statement given
out by Mr.. Palmer, Mr.. Comstock,
through Mr.. Shaw, one Of the attorneys,
issued the following statement last
nights.
at is impossible in the time avail
able to answer in detail. The majority
of the stock Of the Dieckerhoff, Raf-
foer & Co., and Raffloer, Erbsloh &
Co., is owned by American citizens, but
at the request of the alien property
custodian the control of these COM
panies was voluntarily turned over to
him.
Gull and correct reports were
made to the Alien Property Custodian,
beginning with the time when they
were first called for by the act of
Congress. All the facts, records and
books available were voluntarily
turned over to the Alien Property
Custodian, and Mr.. Comstock and his
Office have done everything to assist
the Alien Property Custodian in
strengthening out the affairs Of these
companies in accordance with the ex-
pressed desire of all parties con-
cerned. to comply in every way with
the effort of the Alien Property Gus
todian."