The Penn's Grove record., 1919-08-29

% producing two or three valuable sui
phur colors, notably one highly suit
f able for khaki, of which enormous
: quantities were obviously going to b(
required. The situation of these gen
tlemen was such that, although then
, company had been able to produce
!, profits out of all proportion to its cap
i~talization, they were not unwilling to
, sell, and accordingly the idea was con-
ceived of buying this company with q
view to the gradual transfer to 1t OF
such of the facilities of Bayer d 20.
Nnc.)) as could be turned over. Inc
plan was laid before the counsel OF
the company, Mr.. Charles j. Hardy, OF
New York who was the chief adviser
Of most of the German houses in this
line Of business. He appears to have
advised that the company itself could
not safely make the purchase owing
to the danger of its being taken over
by the Government, and that for the
same reason the stock of the Williams
& Crowell Co. should not be bought
by the Bayer directors themselves,
since they were alien enemies. At his
suggestion a new corporation, known
as Williams & Crowell Color Co.,
/ Inc.)), was organized in New York
and the stock taken in the INT of
American citizens. Williams & Crow
ell Co. was at this time making profits
at the rate of $4,000 a month and,
with the aid of the scientific and bust
ness knowledge which could be sup
Piled by the Bayer staff, was in a fair
Wav to immediate and immense sue
cess. Indeed by this simple method,
it would have been possible under our
very noses to drain the life-blood out
of Bayer & Co. and to transfer it into
the new organization, which the Alien
Property Custodian apparently could
not touch. The purchase of Williams
& Crowell Co, however, required a
substantial sum in cash, approximate
ly 100000 and it was at last possible
to prove that the $1,000 900 thus paid
was money of Bayer & Co. (Inc.), and,
therefore, of the German parent
house.
This was a~scertained only after the
Bureau of investigation had discover
ed that the treasury of Bayer & Co.
(Inc.) was one of the great sources
from which German propaganda funds
in this country were derived. The
parent German house had enormouse
business connections all over the
world. 1t supplied immense quanti-
ties of its products to the East, espec-
tally in China. After the outbreak Of
the war, in 1915, payments for these
goods could not be transmitted direct
ly to Germany. AS many of the goods
had been sold on long credit, very
large sums still remained payable to
the German house many months after
deliveries ceased. The eastern debtors
Of the German house were, therefore,
directed to make their payments to Mr..
Seebohm, of Bayer & Co. Qnc.), of
New York. These funds amounting
to millions, were accordingly received
by him and disposed of without being
put through the books of Bayer & Co.
(1nc.). What became of most of them
can not now be a~scertained, as all such
records as may have been kept were
promptly destroyed. 1t was possible,
however, to demonstrate that part of
the payment for the Williams & Crow
ell stock came from this source. ]
accordingly insisted that the stock be
turned over to Bayer & Co. 0nc.)
This was done, and the Williams &
Crowell Co. thus formed a part of the
assets of Bayer G. Co. Qnc.) at the
time of the sale of the latter.
Among other interesting facts in re-
gard to Bayer & Co. (Inc.) disclosed
by the investigation was the great
care exercised by the parent house tt
D poc+poiO 4ho IF o4,,,o of l,ro, h.
its American subsidiary. The pur.
pose apparently was to limit this
manufacture absolutely to colors il
which genuine American manufacture
was already well established. The Ger
man house was very glad to increase
in this the competition with
which the American infant industry
had to struggle, but it was determined
: that American manufacture in othel
/. lines should not be commenced, ever
under it's own control. When the ces
sation of imports after 1914 threaten
!, ed a dye famine in this country, Bayel
= & Co. Qnc.) commenced to manufac
ture a few new %colors, or rather, col
f ors that were new to the American
, industry. No sooner did this reacl
the ears of the German house than tn
, most ~peremptory letters were written
absolutely forbidding any further ex
tension of the business in this line
, The enormous profits possible from
such manufacture had no weight will
{ the Germans when compared with tn
! risk that such manufacture might ali
, the development of a real American
, industry.
E The stock of Bayer & Co. (Inc.) ant
of Synthetic Patents Co. was sold b,
!, me at public auction, the successful
bidder being the Sterling Products Co.
a West Virginia corporation dealing il
proprietary medicines. This compan.
had previously agreed to dispose of tn
dye plant and patents, in case it Sc
cured the property, to Grasselli Chem
ical Co., one of the largest makers o