Great Phenol Plot The Great Phenol Plot was a conspiracy during the early years of World War I to divert American - produced phenol away from the manufacture of high explosives , and instead use it to produce Aspirin and bring profits to the German - owned Bayer company . Background . At the outbreak of World War I in 1914 , most phenol used by American manufacturers was imported from the United Kingdom . It was used to produce , among other things , Thomas Edison ' s " Diamond Disc " phonograph records ( which were not made from shellac like other disc records of the time ) , the salicylic acid used to make Aspirin , and the high explosive trinitrophenol . British phenol was soon being used almost exclusively for making explosives for the war effort , leaving little for export . By 1915 , the price of phenol rose to the point that Bayer ' s aspirin plant was forced to drastically cut production ; this was especially problematic because Bayer was instituting a new branding strategy in anticipation of the expiry of the aspirin patent in the United States . Counterfeiters and Canadian importers and smugglers were stepping up to meet demand for aspirin , and the war had disrupted the links between the American Bayer plant ( in Rensselaer , New York ) and the central Bayer headquarters in Germany . Thomas Edison was also facing phenol supply problems ; in response , he built a factory near Johnstown , Pennsylvania capable of manufacturing twelve tons of phenol per day . Edison ' s excess phenol seemed destined for American trinitrophenol production , which would be used to support the British . Plot . Although the United States remained officially neutral until April 1917 , it was increasingly throwing its support to the Allies through trade , especially after the May 1915 sinking of the British ocean liner " Lusitania " ( which conveyed American passengers as well as munitions ) by a German U - boat . While many Americans , including President Woodrow Wilson , supported the British , there was also considerable pro - German sentiment ( though considerably less after the " Lusitania " ' s sinking ) . German ambassador Johann Heinrich von Bernstorff and Interior Ministry official Heinrich Albert were tasked with undermining American industry and maintaining public support for Germany . One of their agents was a former Bayer employee , Hugo Schweitzer . Schweitzer , with money funneled from Germany through Albert , set up a contract for a front company called the Chemical Exchange Association to buy all of Edison ' s excess phenol . Much of the phenol would go to the German - owned Chemische Fabrik von Heyden ' s American subsidiary ; Heyden was the supplier of Bayer ' s salicylic acid for aspirin manufacture . By July 1915 , Edison ' s plants were selling about three tons of phenol per day to Schweitzer ; Heyden ' s salicylic acid production was soon back on line , and in turn Bayer ' s aspirin plant was running as well . Schweitzer sold the remainder of the phenol at a considerable profit , being careful to distribute it to only non - war - related industries . Albert , however , was under investigation by the Secret Service because of his propaganda activities . On July 24 , 1915 , he accidentally left his briefcase on a train ; it was recovered by a Secret Service agent who had been following him . The briefcase contained details about the phenol plot and other covert activities to indirectly aid the German war effort . Although it was not incriminating enough to bring charges against Albert or the other conspirators ( since the United States was still officially neutral and trade with Germany was legal ) , the documents were soon leaked to the " New York World " , an anti - German newspaper . The " World " published an exposé on August 15 , 1915 , and the publicity soon forced Albert to stop funding the phenol purchases . Schweitzer quickly sought other financial backers . By September , he had signed a deal ( backdated to June to hide Albert ' s involvement ) with Richard Kny , a relative of the Heyden plant ' s manager . This allowed the phenol plot to continue for a short while longer . By the time the plot was discontinued , it had succeeded in diverting enough phenol , according to Albert , to make about 4 . 5 million pounds of explosives . Schweitzer defended his actions on these grounds , arguing that making medicine and disinfectants was a better use of the phenol than making weapons . The public pressure soon forced Schweitzer and Edison to end the phenol deal , with the embarrassed Edison subsequently sending his excess phenol to the U . S . military , but by that time the deal had netted the plotters over two million dollars and there was already enough phenol to keep Bayer ' s Aspirin plant running . Bayer ' s reputation took a large hit , however , just as the company was preparing to launch an advertising campaign to secure the connection between aspirin and the Bayer brand .