The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1919-03-17
Financed by Bankers, Three
Combinations, Acting in
Concert, Purchased Ore
and Fixed Prices

Washington, March 16.-Germany s
control of the zinc and lead markets OF
the world and her tremendous interest
in other metals was shown by report
today of the alien property custodian
to have been broken in large part oy
the release of American, Mexican and
South American mines and smelters
from the dominance of German-owne
corporations.
All the metal concerns in the United
States which were controlled In Ger
many have been either disbanded OF
Americanized and the report declares
that sit is believed that the German IN
fluences in our metal market nave peeh
completely eliminated" :,
Never a great producer of metals,
Germany, nevertheless, welded ire
mendous power over markets by the
fact that her three great metal combl-
nations acted in concert in the pur-
chase of ore and the establishment OF
smelters, aided by unlimited credit from
German banks, which financed the sales
of huge quantities of metals. thereby
influencing prices. At the outbreak OF
the European war, the report said, each
member of the triumvirate had a
branch in the United States, the Ameri-
can Metal company representing the
Netallgesellschaft of Frankfurt, l..
Vogelstein & Co. representing Aaron
Hirsch & Sohn, and Beer, Sondheimer Dc
Co representing the German syndicate
of the same name. An idea of their ex-
tent may be had from the statement
that their combined profits in 1916
amounted to $12,000,000, of which So
100000 was made by the American
Metal company.
CONCEALED INTEREST
When the alien property custodian
began investigating German business
in this country under authority OF the
trading with the enemy act, he founo
frequent attempts to transfer stock to
supposed Americans in an effort to CIR
cumvent seizure by the government
The efforts were useless and in the case
of Beer, Sondheimer G. Co., the transfers
were declared void and the entire bust
ness was turned over to the custodian
Disposition now has been decided upon
in, all three cases of the metal com
+; panies. Beer, Sondheimer Co. is
in process Of liquidation, including It's
subsidiaries, National Zinc company
Norfolk Smelling company and Cubs
Copper Leasing company, and 1t was
said the stock would go only into Amer
lean hands. The company's control
over important flotation patents also
has been destroyed.
Control of L. Vogelstein & Co. has
been destroyed
VOTING TRUST FOR ONE
Control of L. vogelstein & Co. has
been assumed by the custodian for five
years by means of voting trust, II
which the custodian names two Of three
trustees and the firm agrees not to re-
sumo relations with its German connec'
lions in that period This arrange
ment was devised because Vogelsteir
is an American citizen and it has mo-
been possible to lear nthe exact in
terest of Aaron Hirsh & Sohn in the
| Vogelstein assets.
BY agreement between the custodian
/ iand American stockholders of The
American Metal company all of thu
stock has been put into voting trus
for five years, with the custodian hold
ing certificates of 34,644 shares owned
by enemy aliens out of total Of 70.
900. The enemy-owned shares will b'
sold to Americans.
1.-THE German metal octopus" the re
port concludes, had spread his ten
tacles across the ocean and over thu
United States into Mexico and Souti
America. but for the present surely
and for all time, it is hoped, he has beef
driven back and a wall Of Americanisn
erected, which, it is hoped, he will new
err be able again to SCALE