The Washington herald., 1922-11-19
TAKEN
TO IuD|cT IN
f SA[EOF BOSCH
Department Of Justice Agents
Ready to Seize Suspected
Persons When Word Is Given.
SENSATION is PROMISED
Grand Jury Investigation Halt
ed Here viii Be Resumed in
Another Jurisdiction Soon.

The indictment of at least seven
individuals will be sought by the
Government in the Bosch Magnetic
sale conspiracy case. it was learned
authoritatively last night. =,
The Department Of Justice viii
be ready IN two weeks to resume In
another jurisdiction the grand jury
Investigation halted here. CORE
spondence already Is under way
with the United States court OH
cials in the jurisdiction\ to wnicn
the inquiry is to be transferred 20
ascertain how soon the grand jury
schedule can be arranged to make
room for the case.
1t was st4ted emphatically at the
department that no time would be
lost in pushing this investigation
to a definite conclusion. When the
grand Jury is ready to proceed. wit
nesses will have been subponeaeo
and ready to testify. 1t Is expected
that all Of the approximately TWEEN
ty witnesses examined here and .
number of others not yet heard VIII
be called to testify.
READY TO ACT QUICKLY.
The department. it was learned,
Is prepared to put its hands on
every one Of the suspected princi'
pals in the conspiracy within twelve
to twenty-four hours. IL indictments
are found and arrests ordered.
None of the men is under a charge
at this time that would warrant an
arrest, but agents Of the depart
ment are in close touch with their
movements.
II indictments are found. the de-
fendants viii be given a reasonable
time to appear voluntarily in court
and make bond, as was done in
other war fraud cases in which in
dictments have been found, before
the issuance Of warrants. Failure
to appear voluntarily, however.
would lead to arrest.
PROMINENT MEN INVOLVED.
The group of alleged conspirators,
It is stated on good authority, ill
cludes men in high authority in the
Alien Property Custodian's office at
the time Of the seizure and sale, as
well as the group on the outside
who engineered the deal. 1t is
charged that a deal Of this mag;1i.
tude could not have been carried
through without those in authority
In the Alien Property Custodian S
office either being parties to 1t or
palpably negligent in permitting
others to execute 1t.
The sale of the Bosch properties
said to have been worth approx.
mately 5000. 900. for $4,150.0O0,
was made to Martin E. Kern as an
individual. Kern later organized
the American Bosch Magnetic Com.
- AE-ff fe1 IN
which some three hundred persons
and firms were interested. These
were listed in the report of Alien
Property Custodian Miller to- Con-
gress. on April 10. In the main,
however, their interest was purely
on an investment basis.
PALMER CUSTODIAN THEN.
While the Bosch properties were
being administered by the Alien Prop
erty Custod!an's office. the active
management was in the hands of
Joseph A. Bower, president; Chris
tian Girl and Henry ]. Fuller. vice
presidents: George A. Mcdonald,
treasurer; William G.. Fitzpatrick.
secretary: John c. McMartin. assist
ant secretary; Arthur A. ID. Altree,
assistant secretary, and Arthur T.
Murray, general manager.
A. Mitchell Palmer was Alien Prop
erty Custodian at the> time of the
Bosch seizure and sale. Francis =.
Garvin. later Custodian, was Palm
er's chief investigator and as such
handled the seizure Palmer and
Kern were old friends and neighbors
In Allentown, Pa. Before his ap-
pointment as Custodian, Palmer had
been attorney for the Bethlehem Mo.
tors Corporation, company organ.
lied by Kern.
WORKED FOR SAME FIRM.
Murray. appointed by Palmer as
general manager of the Bosch prop.
critics, had been the president of the
Bethlehem Motors Corporation, OF
which Kern was treasurer, and Palm
er, attorney. One of the attorneys
appointed by Palmer, while admins
tering the Bosch properties, was
former Judge ]. Harry Covington
who later was treasurer of the Palm
er Presidential Campaign Committee
Covington was attorney for Kern in
the Bosch purchase.
MacMartin the assistant secre
tary. and Murray came from the
same boyhood town in Connecticut
He had been a bookkeeper for the
Shubert theatrical interests in New
York. Shortly before the Bosch sale
to Kern. MacMartin prepared a bal.
ance sheet and financial statement
of the Bosch company that went
into a sale prospectus showing a
property and plant value of more
than a million dollars under that
prepared by an appraisal company
SENSATION is PREDICTED
Mcdonald. the treasurer. with
Murray. is said to have received
s37O.000 of the stock of the Ameri
can Bosch Magnetic stock after the
sale and reorgan Zation.
Kern was represented at the sale
by Howard c. Griffiths as agent
Griffiths and Kern had been asso
ciated in other enterprises. Some
OF Gr'ffiths' operations figured ir
b. a-krrpfcv pro~aed nos
These are just some Of the nigh
spots in the Bosch case. The whole
story will not como to light prob
ably until the grand jurv acts and
II indictments are found. until IN,
case goes to trial Some startling
testimony is promised IL the ria
stage Is ever reached.