The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-08-22
FOUR CHARGED WITH
ASPIRIN CONSPIRACY
Plot to Trick Custodian Pal
mer by Dummy Company
Is Alleged.
SAPPING BAYER PROFITS
Advantageous Contract Would
Have Gradually Changed
Ownership.
sAPPING BAYER PROFITS

Four men are accused of trying to
trick A. Mitchell Palmer. Alien Property
Custodian. into believing that he was
IN complete possession Of the 100000
Bayer Company. manufacturer Of drugs
and chemicals, notably aspirin. when he
held merely a shell that was crumbling
in his hands. They were lodged In
several jails around New York yesterday
awaiting examination into the details Of
the alleged conspiracy.
office is at 1T Hudson street. was
taken over by the Allen Property Gus
todian in January. II Is charged that the
conspirators, foreseeing the action of
Mr.. Palmer, had previously purchased
the Williams & Crowell Company,
Providence, chemists. who specialized in
making sulphuric colors. The purchase
was made with the German money of
the Bayer Company, 1t is charged. and
the alien ownership Of the Williams q
Crowell Color Company, 81 Maiden
lane, which was Incorporated forthwith,
was concealed through German dummies
who had the advantage Of American
citizenship.
IL is allekeu tnaI tne Williams &
Crowell Color Company. Inc. was given a
highly advantageous contract for dyes
by the Bayer Company. This contract as
sured the Williams & Crowell Company
OF a surplus Of more than 100000 in
two years a surplus that was carefully
protected by provision limiting the
dividends payable on the 100000 Of
capital stock of the company to 10 per
cent, or $4,000 a year.
Bought Waterfront Property.
To strengthen further the German
Williams & Crowell Company it Is
charged that the conspirators. acting for
this concern, contracted to purchase
waterfront property at Edgewater, N. ].
The money paid on this contract, It is
said. was taken from the Bayer Com
pany.
The situation as It existed two months
ago when the investigation began. as
explained for the Government, was as
follows:
The former officers and the represen-
tatives of German interests in the
Bayer Company had a new, and ostens-
IDLY an American, company, which had
cost them nothing. The new company
was sure Of a profit Of $4,000 a month
by its contract with the Bayer Company.
II had acquired an advantageous site
for factory and would be in a position
where II could at the close of the war
take over the entire business OF the
Bayer Company and compete actively
on even terms for American trade. to
the advantage of its German owners.
The four men arrested here Tuesday
night were taken on Presidential war
rants classifying them as dangerous
enemy aliens. They were:
Herman c. A. Seebohm. $50 East
Nineteenth street. Brooklyn. secretary
and a director of the Bayer Company
and assistant secretary. director and
said to be a secret stakeholder Of the
Williams & Crowel Color Company, Inc.
Or. Robert J. Pabst. 500 Park avenue.
manager of the New York and Southern
sales department of the Bayer Company
and alleged secret stakeholder Of the
Williams & Crowell Company.
Dr. Adalbert Segin, chief Of the
pharmaceutical department in the New
York offices of the Bayer Company.
Carl A. Reiser. office manager of the
williams & Crowell Color Company, ga
Maiden lane.
More Prosecutions Expected.
An arrest was made also In Boston.
DR. Rudolph Huetz. former manager OF
the Boston office of the Bayer Company
and an alleged secret stakeholder In the
Williams G. Crowell Company, was
taken in that city. Another Presidential
warrant was sent to Albany to be served
The factory Of the Bayer Company Is
at Rensselaer,. near there.
In explaining the alleged conspiracy
yesterday Frank l. Croker. represent
ing the Government as counsel for the
Bsyer Company. which is in the hands
OF directors appointed by Mr.. Palmer
mentioned a number Of other names as
parties to the transaction. Some of
these will be prosecuted, he said. others
will be arrested and informed, and the
remainder are in Germany. Among these
last Is the distinguished DIR. Duisberg
general director of the Bayer Company
in Germany and brother-in-law OF
Seebohm. He is director-general OF The
Imperial War Trade Board.
Mr.. Croker declared that Seebohm
and Charles ]. Hardy, the latter former
counsel for the Bayer Company, were
the moving spirits in the plan to trick
the Alien Property Custodian. Hardy
confessed TO Francis p. Garven Of the
bureau of investigation OF the Alien
Property Custodian, according to Mr.
Croker, and offered to turn over all OF
the stock Of the Williams & Crowel
Company and accumulated profits OF
S25O.0OO. Mr.. Palmer accepted the Offer
and the stock and money have been put
tn the treasury of the Bayer Company
The investigation began two months
ago and was the outcome of disclosures
made by DR.. Christian Stamm. agent OF
the Bayer Company at Providence, wher
he came under suspicion as a suspected
dangerous enemy allen.
Seebohm. Pabst, Segin and Reiser
have been turned over to Rufus w
Sprague, Jr chief OF the New York Por,
Enemy Alien Bureau. and they will be
examined In that order. The examina'
ZION OF Seebohm began yesterday. See
hohm and Segin are In the Ludlow
street Jail, Pabst is at the Raymond
street Jail in Brooklyn and Reiser is al