The Penn's Grove record., 1919-09-26
HOW GERMANY KILLED AMERI-
CAN DYE INDUSTRY
A.. Mitchell Palmer
Alien Property Custodian

Another method of concealment was
disclosed in the investigation of Amer
lean Pyrophor Co. Qnc.). This COM
pany was organized in December, 1917,
by Charles CAM, former agent of the
Treibacher Chemische Werke, of Trei-
bacher, Austria, and to it Cans trans
ferred, without authority, the entire
business of the Treibacher company in
this country, a business consisting of
the manufacture of pyrophor, an alloy
of iron and cerium, which, when
struck or scratched, produces fire and
is used for cigar lighters, etc. Here,
after investigation, the unauthorized
character of the transfer was so
clearly shown that it was admitted,
and Upon demand the stock of the COM
pany was turned over In this, as In
many other like cases, it was impos-
sible to determine whether the osten-
sible new owner of the business meant
to keep it for the alien enemies or to
steal it for himself.
In pharmaceuticals, the most i'm
portant concern in the world vas that
medicinal of E. Merck & Co., of Darn
statd. This was represented in this
country by Merck & Co., a New York
corporation which had an enormous
and very profitable business in all
kinds of medicinal preparations. The
stock of this company appeared on the
books to be owned exclusively by
George Merck, a member of the family
which owns the house of E. Merck, of
Darmstadt. Investigation, however,
showed that the profits of this COM
pany had always been RENTED to the
German house in a manner utterly in
consistent with the apparent stock
ownership, and it now stands admitted
that the stock was paid for with money
of the German house and belongs to
the latter. Mr.. George Merck insists
that he is the real owner of one-fifth
of this stock by virtue of the fact that
he owns 20 per cent interest n f.
Merck, of Darmstadt. | am of the
opinion, however, that indirect owner
ship of this kind can not be recognized
under the trading with the enemy act,
and l have therefore determined that
the whole of this stock is enemy owned
and it has accordingly been taken over.
In addition to the above l have
taken over all or part OF the stock OF
the following less important companies
III various iHico VI
activities: Charles Helmuth & Co.
(Inc.); International Ultramarine
Works; G. Siegele & Co.; Williams
burgh Chemical Co.: New Brunswick
Chemical Co.; Fahlberg Saccharine
Co.; Philip Baurer & Co.. Qnc.);
Amid-Duron Co.; Haarmann-de Laire-
Schaefer Co.; Jarecki Chemical Works;
Riedel & Co. Qnc.); Rohm & Haas;
Somerset Chemical Co.; Tropon
Works; Gerstendorfer Bros; German
Kali Works; F. AID Richter Co.. The
liquidation of the German interests in
these companies is proceeding in due
course.
The amendment of November A to
the trading with the enemy act pre-
sented for the first time an opportunity
for what appears to me to be the most
important piece of constructive work
which has been possible in my depart
ment. Until the enactment of this
amendment it had not been possible
to take over German patents. These
patents, as has been already indicated,
formed a colossal obstacle to the de-
velopment of the American dyestuff
industry. Evidently they had not
been taken out with any intention of
manufacturing in this country or from