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Germany's Plot to Gas the World's Trade U. S. Trade Secrets Sought By Widespread Spy System This is the sixth of a scries of articles by Mr. Frost on the sub? ject of Germany's invisible war of economic piracy. By Stanley Frost "German industries must, therefore, be constantly informed about such facts as these (every kind of commercial secret). It is self-evident that for this purpose the industrial fed? eration will not only try to en? ter into official relationships and those of a semi-official.nature, but that it will devote special care to makrng sure of private connec? tions which have a deeper insight into fhe special conditions of each ( ase.'' Thus diplomatically does Herzog, spokesman for German industrial aggression, lay down the principle of espionage. It is to be one of the foundation stones of the new in? dustrial empire for which he plans and toward which Germany is working. In this, as in so many other things, he simply states and re eiuces to a centralized and Teutonic system what is already the Ger? man practice. Investigations into German business in America show that even before the war she liad a practically complete espionase system covering American business life. It was a system that was not "sniping"?its branches worked to? gether, and the information they obtained was available to almost any I ?erman. These investigations have shown that, before the war, German espionage in America covered: Specifications and plans of all big manufacturing plants to be erect? ed. Blueprints of almost all plans for American machinery. Every step taken concerning chemicals, drugs and dyes. .Movements and loading of ships at is, our export trade. Full commercial information about every important American business house. And a great mass of miscellane? ous espionage, covering new pat? ents, salesmen's lists and in gen? eral almost everything that a trade rival could want to know. Information Procured By Devious Methods This information the Germans procured by the most devious meth? ods. In at least one case a com? pany was apparently formed for the sole purpose of espionage (it paid dividends, too), and informa? tion it secured was promptly and systematically forwarded to Ger? many. In the chemical lines German spies under the guise of experts seeking work were introduced into our simps, factories and laboratories. The voluble German commercial traveller, retting a job on the strength of his familiarity with languages and with some special ?eld, would send his sample cases and the lists of people from whom he got orders for American goods; to his real employers in Berlin, who would make efficient, if dishonest; use of them. "In many of tho large German companies taken over by the Alien Property Custodian," A. Mitchell Palmer reports, "it was found after invc tigation that espionage was one cf the chief functions. Every scrap < f information of commercial or military value to Germany was carefully gathered by the represen? tatives o? these concerns in this country and cuickly forwarded to the home offices in Germany. The German agents were particularly keen or. feathering information that, would nelp in Germany's commer? cial warfare. "Once in Germany this informa? tion was carefully card-indexed for the use of German manufacturers. Bulletins of commercial information were also prepareu and placed at the disposal of the German manu? facturer. In Germany the colleo :on*of all information is unfier a I bureau which is controlled and ' financed by the great German banks, such as the Dresdner, the Disconto and Reichsbank." Spies Made Handbook For Commercial Burglar This bureau, known as the Schim melpheng Institut, is one of the most deadly of Germany's commc% dal v/.apons. Its information ii available only to those approved by the banks. And it is said little ?data about it have been un? earthed- -that it covers not only the commercial standing, but the po? litical affiliations, religious belief? and ?usceptibility to corruption of ry official of every firm whose business is at all worth having. It is a handbook for commercial burg? lar?. One of the best instance? of sj plant established in America, aj; tly for espionage purposes, aiixi certainty tv>lh a regularly org?iii ALIEN PROPERTY CUSTODIAN 16th and P Streets, N. W., Washington, D. C, April 11, 1919. To the Editor of The Tribune. Sir: I have read with inter? est the preliminary sketches of Mr. Frost's stories about the pree . ciit German menace. 1 want to say to you that in my opinion they arc a splendid presentation of our present situation, and, as far as I have gone, accurate and entirely justified by present con? ditions. The. situation at this time calls for just such a scries of articles \ as Mr. Frost has written, and in ' order to insure their accuracy in I detail I would be very glad to go* over them when he iias finished j them and make any small correc | tions wliich the records of this ; office may justify. The wider publication these articles receive j the greater the public service Mr. : Frost has been able to render. FRANCIS F. GARVAN, ? Alien Property Custodian. ized espionage branch, is that of the Orenstein-Arthur Koppel Company. This was a branch of a concern in Germany, which has similar branch? es all over the world, so that prac? tically every civilized nation has ; been subjected to the same abuse. This concern manufactured lit," t railways and other inside transmis? sion equipment for factories. 11 ! would bid on practically every job : in the country. To bid it must have . blue prints of the entire plans ol i the factory so that it could design and estimate costs on the equip? ment desired. These blue prints were regularly forwarded to Ger? many. Confidential Flau Sent to German Staff This company installed equip ment in practically all Amcricai munitions plants, steel plants an< kindred concerns. It had contract! with the Westinghouse Company the United States Steel Corpora , tion, the Du Pont Works and nearl; half the big industrial plants nov ' operating in this country. The Ger ? man general staff and the commer cial information bureau now liav. plans of all these. The manager of the concern are all in intern ment camps. Another concern that had a higl commercial espionage value was tin Becker Steel Company of America This company had patent monopo lies on the processes for makin; high speed tool steel and suppliei practically all of that vital materia for America. This, of course, gav it wide information regarding th needs, processes and products of th factories it supplied. This steel i required in the manufacture o aeroplane and auto motors and dor , tal and surgical instruments. Th 1 control of this material of cours also gave Germany a heavy stral logic advantage as against America ' concerns. Almost Every Hun Dye Exfwrt a Spy Almost every German dye an ! chemical expert or worker was I spy, Mr. Palmer reports. There little doubt that many of them ai still located in our factories. "The chemical industry wa3 natural centre for espionage, ar this had been true long before ^ . entered the war," says Mr. Palme I "indeed, long before the war began. The relation between the German government and the great chemical houses was so close that representa? tives of the industry were naturally almost direct representatives of the ?government, and their work in this 1 country gave them unequalled op? portunities for examining our in? dustries from within. Customers , of the German export houses were constantly in need of expert advice in regard to the processes in which their goods were used. The advis? ing expert supplied by the German houses naturally saw everything, ? and what he learned was seldom '. concealed from his government. "After tlic war began the indus , try became not only a centre of 1 espionage but of propaganda and of direct governmental activity.'' It made bombs, among other thing?. This espionage-, of course, cov? ered not only American drugs, dye? and chemicals, but the whole textile ' industry, the leather business, the printing trade, through inks, ami all other forms of business in which ! any delicate use i; made of chem ; icals. Great advantages for espionage i over the mining industry were nek! b\ the Roessler-Hasslaeher Com? pany, which supplied all cyanide i: America, and will be discussed later I It could tell to a pound the output of every mine, and of course gath? ered much other information. Another "pipe line" was in tin I big magneto companies, the Boscl 1 and Eisemann. Through patent? ? they had a most powerfu1 positioi in America, and there were,few gas ] engines designed on which they elie not receive full information. German Spies in \JJ. S. Drafting Rooms There was one other form o espibnage widely practised, thougl it did not centre in any one Germai concern, and thus did not com j within the scope of the aiien prop 1 erty office or of the War Trad Board. This was the stealing o secrets from drafting rooms. Gcr I mans make splendid draftsmen, an it would be hard to find a draftin, room anywhere in America withou a high grade workman or two o German blood. Often he is th ( foreman. It is impossible to gues : how many of these were spies, bu it is known that prints of America ; drawings of the most confidenti? ? kind were continually finding thei t way into Germany. After the w;.i there was a tremendous wcedin out, and the Department of Justic . began it, with startling results, i : our own government as well as pr vate munitions plants. The sending to Germany of c?i fidential information and samph secured by a camouflaged?or ofte uncamouflaged?German salesma ' may be regarded as "sniping." Bi 1 there were other means of gettir i information on the borders of tl [ commercial field, that were of gre importance and value. Insurance and Banks Used in Spy System One of these, was through insu anee of industrial plants, but pa ticularly of ships. The custom splitting bi?- risks among many coi panics made this easy, for a Gc man concern could take only small part of the risk and at t same time receive all the inforn tion about the property insure This information, in case of ship l/ir'TA??!/ MATP17C uli IIIkv iSliP^ pay your share of the price of winning. You can't "Let George do it." It's up to you to do your part. u ?? ? nuil i m mm. nor] r/,r Utghett Clait Tallcinp Machine in tha World ?tSszzsxsBaij.1.?j K? 3ES3SE~? id included full specifications of the ship, and even a manifest of the cargo, itemized as to value. In case of a factory, it covered full plans of the plant and inventories of the stock on hand. This activity was particularly marked in the first years of the war. Another espionage method was through the use of banks, which turned over to Germany what any other bank would regard as confi? dential information. This, like the insurance, was in its infancy, thougii : getting well started. The most conspicuous example of it was the Transatlantic Trust Company, which not only maintained thou? sands of agents, but carried on an active propaganda, and particularly stimulated the draining back to the Central Powers of hundreds of mill? ions of dollars earned and saved by their immigrants here. One more scheme deserves mc-n . tion, for its possibilities' at ieast. The Germans were fast getting a monopoly of the transatlantic wire? less field that is, they were making i sure that a great part of the most I confidential business messages : would go through their hands. How important this may be is shown by the fact that the German wireless messages have been the most im? portant single clew for the Alien Property Custodian in digging up the German property here. Germany has already begun send in-.' out new spies, to take the place of those she has lost. To-morrow Germany's grip on America to-day will be de? scribed; the man}! advantages which she still holds and will use in lier invisible war. Food Helps Rumanians To Defeat Bolshevism The Yriu York Triv'.t e Washington Bureau WASHINGTON, May 1.?Food and the patriotism of the Rumanian people are winning the ficht against Bol? shevism, according to officia! advices ' received in Washington to-day. Whilo ; the danger is not. past, it is said the : situation is not as serious as it was a month ago, and the authorities aro taking every precaution. A plentiful supply of food is urgently needed, and supplies that are arriving are carefully distributed under direction ef th? local authorities, aided by representa? tives of Allied governments and the United States. The attempt of the Bolsheviki to ! seize Bessarabia, which by a plebiscito ? had declared its desire to be reunited : with the mother country, has beon I thwarted by Rumanian troops, aided ; by the French. Tn th? north the Bol ' shevik army attempted to cross tho i Dniester and lost more than 2,000 men ! in a battle with a small force of Ru ! manians. That section of Bessarabia wfts cleared of Bolsheviki, in tho southern part of the state, however, j large force? of Bolsheviki were gath i ered in the region of Tiraspol, but | with French troops cooperating tho j Rumanians drove them out with heavy 'losses and captured all their munitions | and equipment. In Transylvania the Hungarian Bol? sheviki so far have been unable to ob? tain any success or to convert i!ie Rumania/is of Transylvania to Bol? shevism. The Hungarian Bolsheviki | continued the policy of the Magyars j in oppressing the other nationalities, ! and the Rumanians, from officials to peasants, understood that they must | fight. -.-__ [(Germans to Hare 15 Days To Consider Treaty PARIS, May 1 (By The Associated I Press).- -It. was learned this afternoon that the German delegates to the Peace Congress will^Pnave fifteen days in which to consider the treaty and make any counter-proposals they desire. They may begin offering their sug? gestions at any time, but no day of grace will bo giveji them. Representatives of the Allies, it was | stated, reserve the right to reply to ?any of the German objections or pro? posals at any time, but the belie,' is expressed that not more than five days or a week would be required for clos? ing the exchanges of ideas. Gen. Blanquetes Secretary Held Here as Plotter Robcr?o Gay?n indicted in Texas on Charge of Con? spiring Against Present Government of Mexico Roberto Gayon, tormer secretary to General Aurelio Blanquet, the Mexican revolutionary loader, was arrested last night by Agen: Charles Scully, of the Department of Justice, charg?e! with conspiring to recruit and start a mili [ tary expedition against the govern? ment of Mexico. ?Mr. Gayon was found at -11 Park Row, where he was em .ployed as secretar; to Pedro de Villiar, :.:. a: sociatc o? Feus i ?ia??. According to the complaint, which was s'.voi'.! to by Chief William Offiey of the Department o? Justice, Mr. | Gayon was indicted by the Federal grand jury ? i Laredo, Tex., on April L'1 with a score of others, v. ho were charged with plotting a revolution de? signed to overthrow the Carranza gov? ernment. The specific charge is that he gave a letter to Foster Averitt, an American citizen, :o bo delivered to Demendio Garcia Naranjo, one of the alleged plotters. This message, ac? cording to the charge, was finally de? livered to General Blanquet in Mexico. Averiti was to receive! a commission I i.i the Blanquet force.- for delivering ? the letter, according to Mr. Scully. In was indicted, however, and . now held in Texas for trial on the conspiracy charge. Seven others indicted at the same time have been apprehend are now held in Toxa ? Gayon was arraigned before Federal Judge John C. Knox and paroled in (he- custody of his counsel, William S. Rennet, until this morning, when he will be given a hearing before United States Commissioner Samuel Hitch? cock. Bail will be arranged for lo' daj. Since General Blanquet left New York F .Mexico Gayon has been the ?spokesman of the "Felicistas" group of r?volu; ionists. Just liefere Gayon was arrested he wad asked by a Tribune reporter whether he could verify the repor '? (?enera' Blanquet is still alive. Thi he was unable to do, explaining that the last reports he' had received ''rom i.! agents in Mexico were dated April ?I, two weeks befon Blanquet was re? ported killed. The Blanquet men in New Vork have not abandoned hope that their leader, who as a sergeant commanded the squad that was charged with the execution of Emperor Max? imilian, is still alive. Greek Envoy Here to Espouse Island Claim Challenges Italy's Rights to Occupation of llhndes and Upper Epirus Greece has two questions with Italy in the island of Rhodes and Upper Epirus, which, to Greece, stand out in greater importance than liume, ac ? cording to Professor Andre Andreades, i of the University of Athens, who ar? rived here this week from Paris, where he was associated with the Greek dele? gation at the peace conference. While in Paris Professor Andreades headed a group of (?reeks who waited upon President Wilson and conferred on him the honorary degree of doctor of laws of the University of Athens. Upper Epirus and Rhodes Have- al? ways been pan of Greece. Professor Andreades explained? For the last two | years, he said, Italians have occupied ! Upper Epirus. Since 1911, when Italy had a small war with? Turkey, she has been in control of Rhodes. "We shall srp whal the peace confer? ence' decides in these two cases," de? clares Professor Andreades. Greece is immune from Bolshevism, and will continue so, Professor An? dreades believes. He said the Greek workman has not the Bolshevik ten? dencies. His aspiration, is to rise and become a chief workman at the head of his particular enterprise. "Greece appreciates the sympathy of the American press,'' Professor An? dreades said. He has come to this country for a two months' stay to en? lighten the American people on the : (?reek question. He will he in Wash : ington and he will visit the large uni? versities of the East. German Railroads Are Demoralized, Says Report Tho railroad service of Germany is demoralized. The country is practic ' ally without any transportation sys? tem, according to a report made public yesterday by the American Relief Ad? ministration, of which Herbert Hoover is general director. The facts were ? gathered by Dr. Alonzo E. Taylor and Dr. Vernon L. Kellogg, who have just returned after an extensive tour of Germany. The complete breakdown of Ger? many's railroads, the investigators de ; clare, was due to the insistence of the i Allies on Germany's fulfilment to the 1 letter of that provision of the armis? tice which called for the surrender of the greater part of her railway equip ? men;. The Allie?, Dr. Taylor and Dr. Kellogg, add, have lived up to their \ part of the bargain and have kept ;?; ! steady stream c .*' food flowing into Germany. i Copies of tho report are being sent, throughout the country by the relief adm in i " ration. "Passenger trains are few- densely crowded and very slow," says the re? port. "Freight trains are short and few. The yards an- everywhere crowd? ed with dead engines and empty cars, a great many of which are out of order. "The Prussian railways before the war nominally hail 17.000 engines in operation. They now have 11,000 n operation, but their tractive.power about li; per cent of the 17,000 in operation in the pre-war period. Hoffman Troops Closing on Munich. 'Fake Six Towns COPENHAGEN, May 1 (By The As? sociated Press i.-?The ring of govern? ment troops is closing around Munich, according to Berlin dispatches. The villages of Schongau and Umring have been captured from the Soviet : orces without loss. They are about forty miles northwest of the city. A dispatch from Berne adds that. Wa jsurburg, Erding, Freising and Starnberg also have been take".. When Wi rttemburg troops occupied | Starnberg ; le civil population was in an angry mood against the Communists and acts of violence were committed upon them. The populace attacked prisoners in the hands of the govern? ment troops and thirteen of the Com? munist leaders were shot. Munich dispatches say that Bavarian Premier Hoffman has refused another request for an armistice, and insists upon the unconditional surrender of the Communist forces within the city. The German .National Assembly j probably will be transferred from Wei , mar to Berlin next week, the "Tage ; blatt," of Berlin, reports. Serious differences 'nave arisen be twcen the members of tho National German Government and a change may be expected shortly, according to tele I grams from Berlin. The conflict between Math ?as Trzber 1 ger, head of the Armistice Commission, an<j| Count von Brockdorff-Rantzau, Foreign Minister and head of the peace delegation, is said to have reached the breaking point. Erzberger, it is de ! clared, will do his utmost to make dif? ficult the work of the Foreign Minis? ter, whatever the attitude he adopts | at the Versailles Peace Congress. [n addition there are serious politi i cal problems of internal policy. Many j members of the Majority Socialists, the ' ail vices say, appear inclined to co-oper I'ate with the conservative Independent. Socialist.-, to save Germany from a gov? ernment on the Bolshevik order. These ; leaders are said to favor the creation of a new government, based upon the ?principle of the councils of workers, I and attempts will be made to get Hugo : Haase and Herr Breitscheid, Indepen? dent Socialist-, to enter a coalition ! cabinet. A national body o? councils, if is said, might supplant the National I Assembly and adopt a policy of ?>ocial ; ization on a vide scale. Tho general strike in Upper Silesia is coming to an end, the government having arrested the principal Sparta tide agitators. The miner.' everywhere are returning to work. ?In Bremen the situation also has improved with the arrest of a majority of the Spartaeides, who had been ter? rorizing the city. Government troops stormed Sparta cide headquarters in Hamburg and ar? rested sixty of the leaders. They cap? tured many bundles and boxes of plun? der, including jewelry, shoes and mili i tary si ores. j House Military Affairs Committee- Arrives in Paris PARIS, May 1.?The .Military Affairs Committee of the United States House ?of Representatives arrived in Paris to 1 day and will probably confer with Pres ; ident Wilson while in the city. i/"' nnounce $32 and $22 Redactions in omen's Tailored Suits Reduced from $69.50 and $59.50 to 37.00 ^TpHIS is the first time these suits have ever been ?*? offered at this low price. These suits are taken from our regular stock and measure up to the Franklin Simon standard of quality. Of wool tricotine, gabardine, serge, Rayonner cloth or checked worsteds, in navy, black and J wanted colors. WOMEN'S SUIT'SHOP -Balconv Floor Fifth Avenue, 37th and 38th Streets "wr-^aiir- ^?--m :-u*-??-?;-?-im-n? ? ' ' ? >m?-** Soviet Ousted in Budapest, Vienna Reports j Dispatches to Berlin Say Hungarian Government Has Been Overthrown; Bolshevik Officials Flee BERLIN, May 1 (By The Associated | Press).?The Hungarian government j has been overthrown, according to ! Vienna reports published in the Ber- ! lin newspapers. The Hungarian for? eign, war and fQod commissaries have arrived in Vienna with their families, and are supposed to have fled from Budapest. LONDON', May, I. The Hungarian! mmunist government, a wireless mes- i :. from Budapest says, has offered the Rumanian and Jugo Slav govern nts territorial concessions tor cessa? tion o\' hostilities. The Hungarian War Office statement j of April 30 say? the Franco-Serb Rumanian and Czecho Slovak forces continued their advance on Budapest. the Rumanians cap turii o l'ur, eighty miles southeast of Budapest. The military statement says that on Tuesday the Serbian'-' and French cap? tured Hodomezo-Vasarhely, while the Rumanians also occupied Szentes and Kun-Szent-Marton, south of Mezo-Tur. I The Czechs attacked with forces, it is added, against Czap and Satoralja-Ujehsly, northeast of Mi kolcz, and also in the Hernad and upper Sajo valleys. The Hungarians retired m Chan . BERNE, May 1. -Hungarians in Bucharest have issued an appeal toi the Hungarians in Rumania generally j to take part in the struggle aga the Bolshevik government, of Budapest, according to a telegram rrom Buchar ?_:iven out by the Rumanian press bureau here. "Our country is being led to ruin by 1 unscrupulous agitators, who have seized i authority," says the appeal. "Hun garians, arm against the usurpers who come 'rom al! parts or the world!" Several hundred Hungarian;; in Ru? mania already have enlisted in the Ru? manian army to fight the Bolshevik;. ! <? advices state. The reports also j show that the Hungarians in the town freed from Bolsheviki tyranny by Rumanian advance ?re bitterly an? tagonistic to the Red Guards who, in their retreat, carried away hundred hostages and pillaged the countn Germany Says Poles Plan to Atlark Her BERLIN, -May 1.?Mathias Erzberger, chief of the German Armistice Dele? gation, in a note to Marshal Foch, made public in Berlin, says that Ger i many has rcliublc information that the Poles are planning in the next few days an advance with large forces against German territory in Posen and i upper Silesia. He adds that- therefore, it is im? possible for the German government to guarantee that the armistice be? tween Germany and Poland will be maintained if the Poles attack G man territory. After ; ;, i att; : the German government could not per? mit, the further pa, ?gn u many from France of the Polish troo , of General Hal 1er. Cruiser Sails for Russia Des Moines Going to Harwich' and Archangel PLYMOUTH, England, May 1 (p. The Associated Press).?The Unite* States cruiser Des Moines, the fjrs| ship to tire a salute at Plymouth at the beginning of the war, will sail to. morrow for Harwich and thence wiB proceed to Archangel. The Navy Department has sentthre? cruisers to replace vessels in Euro. pean waters, which have been order?! home. As the vessels arrive in poits they go under command of Ad* mirai Knapp in London. It is believe! that the Des Moines may be di to relieve the Yankton at Archangel or that the cruiser possibly r.. . in the withdrawal of troops ? Northern Russian front. City Hall to Cet First Geneva League Meeting GENEVA, May 1.?The first meeting of the League of Nations in Geneva, the of the league, will be I ? the famous Alabama Hall of thi Hall, "The Associated Pre. to-day. 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