The Washington herald., 1918-09-18
PALMER TAKES
BIG HOLDINGS
Property Custodian Seizes
Half of German Estates,
Says Holland.

In his informal talk TO a few friends
who were his hosts at a luncheon In
this city a day or two ago, A. Mitchell
Palmer stated that he has now in his
possession as custodian OF alien
property about $500. 900. 900. All this
has been secured since his ap-
pointment to the office of custodian
of alien property. an office which
was created by an act Of Congress
last year. But. Mr.. Palmer said.
800 900, 900 are only a little more
than one-half of the total amount
which he expects to secure and
TO hold In his possession until
after the war. He said to his friends
that his estimate Is that the money
the United States is not far from
81 0oo. 10000. His organization is now
so well perfected and the means
which he has adopted to secure In
formation respecting alien property
are so adequate that he Is convinced
that within a few months there will
be In his possession as custodian sub
stantially all OF the alien property
held In the United States and that
this will amount to s1.ooo. 900 900 at
least.
Mr.. Palmer's investigations led to
the discovery OF an unsuspected
method adopted by German capital
and German interests for obtaining
gradually but surely complete con-
troll Of many important industries In
the United States. These methods he
spoke OF as insidious. skillfully
planned and. in the majority Of cases.
successfully adopted.
Camounnge Representatives
To illustrate his meaning he said
that he had discovered that when
German capital and German inter
estS had in mind the establishment
OF the important Industry in the
United States and one which would
be .abIe successfully to compete
with any like American industry, a
skilIfuI and competent man. COM
-paratively young. would be sent to
The United States for the purpose
Of promoting the establishment of a
new industry. for instance, the man
ufacture OF tools, and especially of
chemicals and drugs. This rep
having organized a COM
pany saw to it that at least eighty
per cent of the capital stock was
held usually under cover in Ger
many. The man who promoted the
Industry would himself hold per-
FLnE Win lew uuSuSptGllIE
americans. not more than twenty
per cent OF the capital stock. This
representative usually professed it
to he his determination to make the
United States his home and Mr.. Pal
rnar knew of cases where the rep
rc.Cntative had convinced Ameri-
ans Of his sincerity by marrying an
American girl.
s-ayrrrheIoss the industries were
.i,T.a-n. their management and at
.i"r1,l to control the markets were
-..Gr-sC. -risticc Of seCretive German
u0t}Hl-.
ti9--.-ans Control Industries.
T.r- uurlbers Of industries of this
kiud which AIr. Palmer has uncover
ri * large. Eut he has been espeei-
s.iN Impressed by the secretive, cum
r!~, GHd yet audacious methods
vEiCh have characterized the German
attempt gradually but surely to en-
ircICh in the United States industries
ur=Iiy owned by Germany and domi-
noted by German methods.
The discovery of these German
methods has led Mr.. Palmer to the
opinion that it is the wiser part. be-
cEu-e it is the safer part for him to
ofrer for sale as he has already been
doing in some instances. these indus
trial organizations. taking pains that
the purchasers shall be Americans
who have no pro-German tendencies.
n he puts this plan into full eNecu-
ton there will be before the end of
the war a transfer to exclusively
american capital of the German
created industries.
Mr.. Palmer said that this is the