The Washington herald., 1918-06-25
GERMAN PLOTS
TO HIDE ENEMY
ASSETS FOUND
So, 100000 Taken Over
from New York Alien
Firms.

German plots to hide millions OF
dollars Of enemy assets under the
cloak OF American corporations loaned
for the purpose have been discovered
by the Bureau OF Investigation OF the
Alien Property Custodian, A. Mitchell
Palmer. As a result Of the disclosures,
$780, coo have been taken over by the
goeSrnment and a number OF Germans
and German-Americans have involved
themselves in serious difficulties with
the United States.
The concerns taken over by the
Alien Property Custodian are DECKER
hoff, Raffloer & Company, of $50
Broadway. New York; Raffloer, Err
belch & Company. cordage manufac-
turers Of the same address. and the
American Storage Company, Of Ha-
vana. The majority OF the owners Of
these firms are either Germans or
naturalized Americans. They are
Ewald c. Dieckerhoff, who has lived
in this country for fifteen years, but
has never been naturalized; Rudolph
Erbelch. a native OF Germany, but
now a naturalized American, and
William H. Ehrhart. an American citi-
zen with a number OF close relatives
living in Germany.
ssCEtcu CuICn EtCkukaTs
These concerns filed returns with
the alien property custodian, showing
no enemy owned property whatso-
ever. Erslch and Dieckerhoff filed
voluminous affidavits, swearing such
transfers as had been made were
executed in good faith to carry out
a plan they had had in contempla-
ton for some time. Their attorney.
George Carlton Comstock, filed an
elaborate brief, asserting that the
sales noted in the transaction were
unconditional and not made with any
thought to evade the law.
Francis P. Carvan, director Of the
bureau OF investigation. however, took
the matter under investigation before
these reports We're accepted. and dis
covered that the entire scheme was
a cIeverly disguised method of hiding
enemy property, and that the reports
and affidayits filed were fraudulent.
The lawyer. Comstock, had devised
the plan and had written to DECKER
hon on March II. 1917. advising him
to transfer his property to corpora
tions which would be able to hold the
property free from the restrictions
that would be placed upon them as
enemy property. He also stated that
he had corporations that would be
willing to be used for the purpose.
Took COmstock's Advice.
He also advised Dieckerhon in this
letter to sell the stock Of enemy aliens
in the firm Of Dieckerhoff. Raffloer &
Co. to some company that would ap-
pear to take the title, and pay them
the price in three years. or return the
property.
The concerns mentioned above fol-
lowed the lawyers advice and the
firm of Dieckerhoff, Raffloer & Co.
bought all the stock owned by stock
holders in Germany. The property
was then sold to German-Americans
citizens of the United States. At the
same time Dieckerhoff put his prop
Crty into the hands of a firm known
as the KniCkerbocker Investors Com
pany.
The others disposed OF their prop
erty in much the same manner. fol-
lowing the advice of Comstock. When
accused by the Bureau of Investiga-
tions, they were unable to offer an
explanation for the transactions. The
alien property custodian at once took
over the property concerned. deter
mined the connection Of DieckerhofT
with the firms. stopped his salary and
caused steps to be taken for the resti-
tuition Of the s1,5OO.O00 distributed 10
Raffloer- Erhslch stockholders.