The Washington herald., 1922-05-26
DORNEY ATTACKS
PALMER'S REPORT
In MAGNETIC CASE
Declares Statement of
Enemy Ownership Ex-
torted by Threats.
VALUE D ISPUTED
Bosch Agents Discouraged
Bidding at Sale, Says
Former Audits Chief.
VALUE ISPUTED

| without comment. Charles Dor
ney. formerly chief of the audits
division. Alien Property Custodian
ONCE. yesterday attacked state
ments in a recent letter regarding
the Bosch Magnetic case sent to
Representative Philip p. Campbell
kby A. Mitchell Palmer. former At
torney General. by setting forth
information in a pamphlet-"Bosch
Magnetic Company. a Little Light
on Few Phases OF This Remark
able Case" published under his
name.
The first statement made by the
former Attorney General which is
combatted Is. They finally made a
sworn report, however. declaring ali
the stock 10 be enemy owned, and
thereupon took charge of the COM
pany."
In response to this statement Dor
ney set forth that the complaint In
an action now pending in the South
ern district of New York specifcal-
ly charges that statement of
enemy ownership was extorted by
duress. oppression. threats and ca
iolery from Otto Helms. president OF
the Bosch Magnetic Company. by
Investigator Francis p. Garvan."
Quotes from Amdavit.
Further. an. .affidavit made by Otto
Helms and delivered to. Senator
Charles II. Dllingham in 1919, is
quoted in part. as follows:
After this talk ne demanded that
sign the necessary official printed
report. which had been filled in BY
his men.
Because I relied upon his state
ment that II was only to be turned
over to him as custodian and that
the property would be returned
when the war was over. signed
the paper that he demanded /
should sign"
The next statement to which ex-
ception is taken is "in the Investi-
| cation as to its ownership, Otto
Helms. representing the German
owners. declared its value to be 81
500, 900"
Dorney sets forth the following
information N his pamphlet:
The Harris. Allen and Company
| report, as of April 30, 1918 (the
day before the actual seizure OF
the Bosch Magnetic Company.
showed that II was possessed of
total assets Of $S.757.162.Sl. and a
surplus over ali liabilities of sS.-
| 5s7.45761; as well as liquid assets
consisting of cash in bank. Liberty
Bonds and accounts receivable
amounting to s1,6S6, 430.57.
"surpIu. Exceeded s8.5OO.OOO.,
"On Page IOs of Mr.. Palmer's re-
port to Congress, he states. The
Bosch Magnetic Company was a
| tremendously powerful orEaniza-
tion. Its combined capital and sur
plus exceeded S6.500.000. 1t owned
and operated a modern factory at
Springfield. Mass, with branches at
Detroit, Chicago and San Francisco
Its stock was finally sold
through my direction at an open
public auction after wide adver-
tisement. for s4,l50.O00 to the high
est bidder" Is the next OF the
former Attorney Generals state
ments to be disputed. as follows:
TT should be noted that the only
qualified bidder at the time of the
adjournment was Martin f. kern's
agent and partner, Howard c.
Griffiths.
That at least three other parties
would have bidden at the sale had
not special efforts been made by
the agents of the management of
the Bosch Magnetic Company. under
the Alien Property Custodian. to
discourage. not alone on examina-
| tion of the assets and property, but
to bid at the sale.
The sale was advertised for No
vember 81, 1918. The advertise
ment was published in fifty-si,
| newspapers in the United States
at various dates from Novembe
10 to November Is. 1913. but moi
continuously.
THE sale did not take place as
| advertised on November 2a. 1918
1t was adjourned, but without def
mite date, and without any definit
information of any sort.
1T is usual in the case of 1ega
sales of property at public auction
that similaf publicity be given t.
time and place of adjournment a.
that given in the original notice
of sale. In this case it was no
done. The only published notice
of the actual sale was made Il
the following papers: The Spring
field Republican and the Spring
field Union.
| Both notices were published II
the above papers on November 26
1918, and also in the same paper
on the day of actual sale. Decem
ber Z, 1918, with the addition o
similar notices in the New Yorl
Times and Boston Post on tn
morning of December Z. 1918: tina
is. nearly two weeks after tn
/