The Sentinel=record. (Hot Springs, Ark.) 1900-current, 1918-07-30
GERMAN CHEMICAL
WORKS SEIZED
HAD RIGHT TO USE MANY VAL
LIABLE GERMAN PATENTS IN
MAKING CHEMICALS
Attempt Was Made to Amercanize
the Concern When thhe Relations
Between Germany Became Strained
Befort the Outbreak of the War.

Washington, July 20. Seizure Of
the Heyden Chemical works at Gar
field, New Jersey, second largest cor
poration of it's kind in the Unite
States, with exclusive right to use
many valuable German patents, pro-
cesses and formulas for the making Of
salol, sodium salicylate, sacchariae
and other by-products of carbolic acid
was announced today by Alien Prop
erty Custodian Palmer The proper,
I will be operated for the government,
Mr. Palmer said, and the patents ana
aformulas Americanized
The Heyden works, which did II
business of $4OOO,O00 last year, We're
taken over, the custodian said, after
an investigation by Francis Z, Gar
van, director of the bureau of iAyes-
tigation in the alien property Gus
dodians office revealed that it WAS
owned by the Chemische Fabrik Won
Heyden, of Redebeul Germany, tie
largest chemical company in the world
and that an effort to conceal the real
ownership had been made in 1916 by
George Simon of Brooklyn, n Y,
representative of the German com
hany, aided by r. Elicit Hogskins, an
attorney of New York City
Simon. who is a German subject
organized the Heyden concern in 1900
with capitalization OF $4,000 which
later was increased to $150,000. OF
the $50 shares of stock Mr. Palmer
said, the German company received
745 in consideration for the secret
formulas and patents
In 1916 when the relations between
the United States and Germany De-
came strained Simon. with the aid
of Hodgskins, sought to American
ize" the Heyden works, the custodian
said, by an alleged purchase of $l49,~
900 of the 745 shares of stock held by
the German company which in 1916
netted that company $l,006,662. the
money to finance the alleged sale,
lit was said, was secured from Simon
Tather- in-law, Richard Kny of brook
lyn. to whom Hodgskins gave Ger
tificate for the 745 shares of stock
"To protect the German ownership
of the lHeyden works, said Mr.. Par
mer. 'fSimon got Hodgskins to write
a letter to him wherein Hodgskins
agreed to sell back the stock to the
German interests at any time within
IS months for the sum of $4,000 ana
interest.
Hodgskins, Mr.. Palmer said, not on
" obtained control of the company
but has caused himself to be elected
president by the board of directors
and fixed his salary at $4,000 year
"1Inder cross examination by NJ.
Caryan. continued the custodian 5
statement. fSimon admitted that me
Hevden Chemical works was owned
nv the Chemische F'abrik Won Hey
den He said the concern was re-of-
ganized so as to hide the German
ownership.
..Simon said he went abroad Tor
the purpose of ascertaining the WISH
es of the German capital looking -
safeguarding their interests IN TINS
country. because the Chemlsche fa-
h,ilr Won Heyden had lost all 1t
property and holdings in both eng
land and Japan because OF the wal
Orchard Kny claimed that ne ~
good faith, in 1916, loaned Sl49Ooo -
xIodIgskins so that Hodgskins might
"nurchase" the company and Slho.
and Kny say the money was traisliii'
ted to Germany Richard Kny mas
surrendered to the alien property Gus
todian the certificate of 745 shares o
stock issued TO him and 1ormah'
turned over the company to the aiie'
property custodian"
Leroy Baldwin, president OF 'i'