The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-10
GERMAN INTRIGUERS
FORGED U. S. SWORD
Palmer Tells How Kaiser's
Commercial Machine Here
Was Used Against Him.
S70O,O0O,0OO IN SEIZURES
Alien Property Custodian's Re-
port Reads Like q Romance
in Many Ways.

pOrU heduS Like q Romance
in Many Ways.
For the sick man of Amerongen and
those who with him once dreamed the
dream OF German world dominion there
Is rueful reading In the pages of n report
which has Just been transmitted 10 the
President by 4. Mitchell Palmer, now
Attorney General. dealing with his ad-
ministration of the office OF Alien Prop
erty Custodian during 1918.
In his accounts of seizures and sales
of enemy owned property made public
from time to time since the day when e
assumed the custodians office In October,
1917, Mr. Palmer has told partly how
he took from enemy control physical
property and enterprises of a value, con-
servatively estimated, of 500, 900, 900,
and how the office is still administering
moro than $4,000 trust estates. In his
present report he goes infinitely into the
nature and character OF the properties
taken. shows how they were all part and
parcel of the German scheme Of making
tho world wholly German and explains
how. turning part OF them into ma
chinery for the supply OF our troope in
the field and converting the rest into
money which was lent to this Govern
ment for the prosecution of the war
their weight went ultimately into the
hammer head that broke tho Hindenburg
line.
Mr.. Palmer's report. bulky as a vic-
torlan novel, deals under separate head
ings with the principal forms OF German
commercial activity in this country in
preparation for the world war and for
its continuation by Germany even after
we got into it He shows how the Ger
mans built their great wireless stations
at Tuckerton and Sayville as adJuncts
to the German military machine and how
ostensibly for peaceful commerce. but
actually for military reasons, they en-
parked on large scale in the manu-
facture OF magnetos and textiles, went
into the fur and lumber trades, estab-
lished trust and insurance companies,
and OF course started the manufacture
OF munitions and ships.
To Hamper Britain and France.
In the last two fields they had thought
70 hamper France and Great Britain
even after it became plain that they
could not get their products to Germany.
! They learned after we entered the war
that they had been forging a sword, not
wooden, for Uncle Sam.
! OF their various activities Mr.. Palmer
says:
! Wireless Stations: 1.-THE war plot
ters found in wireless the sole means
| of overcoming British control Of the
| sea and OF maintaining their touch
| with America g.. but of course when
| the United States entered the war the
navy used the plants as instrumental
ties Of war and entirely prevented
their use for other than Government
| PURPOSES The effect OF the
work OF my department is that Ger
| many Is wholly excluded from tho
wireless field in America and can
only after long effort and at great
expense recover (if she can recover
at alb an independent position in the
Western Hemisphere,
Magnetos: "Of all the magnetos
| produced in America at least half
were made by two companies, the
| Bosch and the Eiseman magnetic
companies. About So per cent of the
needs OF the nations manufacturers
were supplied by the magnetic, while
battery ignition took care OF the re-
naming Is per cent. As
result OF these proceedings the mag
neto industry Of this country is I'M
fettered by patents held by or for tho
ably safe TO predict that the business
will remain indefinitely 100 per cent
| American"
| Furs THE American fur market
was under the domination of Ger
many. even in the case OF American
caught furs These we're sent to
Leipzig for dressing and dyeing,
then to London to the sales, then sold
back TO Leipzig and then with all
costs and charges added were sold to
me American fur trade plus a profit
and duty.
Fur Market Now in Z. $.
But II the great Leipzig fur houses
are In position to branch out In
America AFTER the signing OF peace 1t
will have TO be by new means and
through the investment OF entirely
new capkal. By tho establishment of
great public auction sales conducted
at New York and St Louis both cities
now vie for the title OF the fur mar
ket of che world"
| Textiles: zone Of the largest and
most profitable investments of Ger
man capital In this country was
found in and around Passaic, y. j.,
where SIX great woollen mills were
located In many instances
changes IN the machinery were re-
quired, but in n short time these mills
were producing khaki colored yarns,
shirtings and Melton cloth 10 be worn
py our soldiers in the field Within
ok months the majority OF their out
tut was going into military equip
ment, and when the armistice was
signed the output OF these mills going
into Government work averaged IN
excess OF so per cent"
Financial institutions: An inter
esting combination of finance and
policies WAS disclosed -XE~n under
toes an inves s%Ion q the Trans
atlantic Trust Company.
beginning at the period OF tho
general war the advertisements of
tho company printed IN foreign lau-
guages appealed TO and sought 10
keep alive the spirit of foreign ma
tionality and was wholly un-Ameri-
can, IL not anti-American. The trust
company vigorously pushed the sale
of the war bonds of the Central
Powers Its money transmission
business went up by leaps and
bounds, and in the year prior to tho
war as between Germany and the
United States reached immense to-
tails. The notorious Won Rlntelen
was permitted freely to use the Of
fees of the company as his head
quarters, Bernstorff and Dumba
had their accounts in its bank.
After full consideration of tho
matter l determined that tho trust
company should be dissolved
1