The Penn's Grove record., 1919-09-05
HOW GERMANY KILLED AMERI-
CAN INDUSTRY
a. Mitchell Palmer
Alien Property Custodian


When the dye famine began in 1914,
Messrs. Matheson and Shaw determin-
ed TO commence manufacturing, and
Tor that purpose organized the Century
Colors Corporation, this name being
selected in order to retain the G. c. G..
trademark of the Cassella goods.
This company was organized with a
capital Of only $500, and Messrs.
Matheson and Shaw took all the stock.
The operations of the company were
financed to a considerable extent out
of the funds Of Cassella Co., of New
York.
In August, 1917, Messrs. Matheson
and Shaw, desiring to associate them
selves from the Cassella name, caused
the Century Colors Company, to pur-
chase from the Cassella Co. all it's
tangible assets. On the same date
the capital stock was increased from
$500 to 5000, 900 Messrs. Matheson and
Shaw paying in the difference. The
tangible assets represented everything
owned by the Cassella corporation X
cept its patents, good will, and the
contract with Leopold Cassella, G.. m.
b.. H., for the sale and purchase Of the
German products. On September II,
1917, Messrs. Matheson and Shaw sold
to the National Aniline & Chemical
Co., Inc, all the stock of the Cen
fury Colors Company. Under this
contract, Messrs. Matheson and Shaw
agreed to subscribe for $500, 900 worth
of the National company's stock and to
place their WI services at the dis
posal of the National, in return for
which the National Company agreed
to give them 1000 full paid shares of
preferred stock and 10000 shares of
common stock, having no par value.
1t was also agreed that the existence
of the Century Colors Corporation
should be continued for at least one
year. At this time, in explaining the
failure of the company to convey the
Cassella company's tangible assets,
Messrs. Matheson and Shaw stated
in a letter to the National company
that they did not feel at liberty to dis
pose of the Cassella company's tangi-
BILE assets without first consulting the
German house.
After this sale to the National, the
personnel taken over by the Cassella
ard Century Colors companies rapid
ly became increasingly important IN
the National organization. When Nh.
Matheson assumed the presidency, the
Century staff became to all intents
and the National sales de-
partment. All this undoubtedly gave
to the new organization a color which
afforded considerable justification to
! the rumors Of German ownership.
Accordingly, the correspondence was
examined with the utmost care. This
correspondence, including, as 1t does,
many of the letters which passed be-
tween Messrs. Shaw and Matheson
themselves at a time when neither
could have imagined that their trans
! actions would be under investigation,
shows that at the time of the sale to
the National, both desired not to sac
rifce their German connection, and
that neither believed with any great
confidence in the success of the Amer
, lean manufacturing industry, through
: they ma have believed that the for
= mation of the National company of
: fered an opportunity for success in
America not therefore available.
In October 1917, the Cassella Color
Co. in spite of the feeling previously
l expressed by Messrs. Matheson and
f shaw that they could not properly
! transfer any Of it's tangible assets
without consulting the German house,
transferred to the National company a
ments to the German house. This
3 was done without regard to the ex-
D istence of the ~unrecorded reassign-
ments to the GFerman house. This
transfer appeared to be invalid, and
n these patents, together with all other
patents known to be the property OF
5 The German house, have accordingly
4 been demanded and are vested in the
o Alien Property Custodian.
At the present time there appears
9 TO be no German ownership in the
o stock of the National Aniline & Chem
zeal Co., Inc; the great majority OF
! the stock is held by the following;
Schoellkopf Aniline Chemical Works
3 Tor it's stockholders, chiefly members
: of the Schoellkopf family; General
Chemical Co.; Barrett & Co.; Semet-
. Solvay Co.; w. Beckers Aniline
!, Works; w. j. Matheson; Eugene
Meyer, Jr.
A complete working majority OF the
stock has been placed in the voting
trust of which the trustees are as fol,
lows: VIM. H. Nichols, president ct
tbe General Chemical Co.; H. S. Han
Nv, of TIE Semet-Solvay Co.; VIM. H
. Cn.lds, president of the Barrca Co.;
X. ]. Matheson; Eugene Meyer, Jr.
A contract has been entered into
which will result in the gradual elm
S nation by purchase of the Becker's
: interest, which has been thought de-
: sirable' because of DR.. Becker's Ger
man origin. The Cassella Color Co.
d of New York, has been partially liz.
f Undated and its stock has been reduced
from $4,000 to $500. The taking
over of 81 per cent of this stock will
e at least permit the elimination of the
Cassella name.
f The American branch of the great
Hoechst Co. had for many years beer
conducted by Mr.. Herman A. Metz
Prior to 1912, the New York corpora
tion was known as H. A. Metz (Inc.)
Continued on page 6