The New York herald., 1922-02-04
Secretary Davis Denounces
Scheme to Help the Father
land Come Back
WORKMEN HERE VICTIMS
Promoter Would Transfer In
<dustries to Central Europe,
Where Labor Is Cheap.

An apparent attempt to arrange for
the bodily transfer OF American in
dustries to Germany, where articles
would be manufactured at cheap labor
costs to be rcsold in the United States.
was revealed yesterday by correspond
cnce between James j. Davis, Secre-
tary of Labor, and Z. M. Waring of
the American Electric Cutting Ma
chine Company. 151 Lafayette street
Apparently such efforts are being
backed by systematic campaign.
What succ ass it has had could not he
ascertained, although the correspond
ence revealed that agents expect to
leave to-day for Germany with plans
and specifications from American COM
panies that they have been able to in
terest.
Mr.. Warnings letter to Secretary
Davis. a copy OF which was sent also TO
Herbert Hoover. Secretary of Commerce.
inclosed a communication from L. j.
Gerson, assistant to the vice-president OF
the Interocean Holding Company of 347
Madison avenue. The Gerson letter
made the proposal to Mr.. Waring that
he ask for quotations on the reproduc-
ton of his articles in Germany for re-
sale In America and requested samples
and plans and specifications for manu-
featuring
The letterhead indicated that the In
terocean Holding Company was organ
lied at the instance Of various German.
Hungarian, Austrian and Czecho-Slova-
khan interests" The letterhead also
bore the inscription Department OF
Propaganda and Statistics" but an ef-
fort had been made to ink that out.
Secretary Davis thanked Mr.. waring
for turning the letter over to the Gov
ernment. and added that more "despica-
BILE and pernicious activity" on the part
OF person enjoying the protection and
freedom of the American Government
would be hard to conceive. The Secre-
tary added that, in addition to taking
away American capital. the scheme. If
successful. would intensity unemploy-
ment conditions in this country
Gerson's letter to Mr.. Warnings COM
pany follows:
The Interoccan Holding Company Inc,
Equitable Trust Building,
"349 Madison Avenue,
New York City.
January 81. 1922.
american Electric Machine Company,
NetU York--Gonticmcn:
You have recently received from us
card in reference to Helping Germany
TO Come Back"
I'm this connection you realize that
labor conditions In central Europe make
Il obvious that IL might be advantageous
to have some of your products manu-
factured there.
BE that as IL may. We know that
you are interested I'm at least securing
quotations on tentative quantities.
THE writer personally is more or less
familiar with your product. and inas-
much as he Is booked TO sail for Eu-
rope on February Z, in company with
others of this organization. he suggests
that you permit us to secure manufac-
turing figures for reproducing your ar
ticle In Germany for resale in America.
For that purpose we suggest that you
provide us with sample and in addi-
tion thereto specifications and plans
that would help us in quickly securing
the information.
Awaiting your reply by return mall,
we are,
Very truly yours.
THE INTERocEAN HOLDING Co, Inc.
(Signed). IL. j. Gerson,
Assistant to vicc-presldent In charge
OF merchandising"
Dictated by l.. J. Ccrson