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Germany's Plot to Teutons Have Metal Grip < Gas the World's Trade Not Withdrawn >n the Americas ?l?xico, Where Specula tioii Is Cheap, Still Wil Be a Source of Econom ic Expansion by Hu? Palmer Optimistic, But Facts Rcmaii Everything Existing La* Permits Has Been Dont to Block the Invasion By Stanley Frost 77 is is the tenth of a series o) articles on Germany's nevj war o, economic piracy. A single fact, far more titan col nmns of figures, shows the power o? ?he German metal octopus in Amer? ica, and how it worked. Thougr copper was not under German con? trol, though its mining was almost entirely in American hands, though the German purchases were only about a quarter of world consump? tion, Germans were able to got ?.heir copper, year after year, at about a cent a pound less than Americans could?from ten to five per cent advantage in price. That advantage hurt America, and helped the Gei-man campaign of world ex? ploitation, in every single thing into which copper enters. A. Mitchell Palmer, in his report on the work of tho Alien Property office, thus sums up tho menace: "Who will say that these were not a standing menace to the se? curity of oui lomestic metal in? dustry, as well as to the develop? ment of our own commercial in? terests in Mexico and South America? It is no answer to the obvious potential power for i vil which these companies poss< ? to point to the fact that since European war the American Metal Company has been entirely officered by Americans who have shaped the policy of that power? ful organization or to show that Vogelstein is a naturalized Amer? ican citizen, or to remind us that Elkan Frohnknecht, in con? trol of Beer, Sondheimer & Co., are likewise American citizens? they were late converts to citi? zenship. The power lay in the hands of Hirsch & Sohn and Beer, Sondheimer & Co. and the Metall? gesellschaft and its stepchild, " Henry R. Merton & Co. at any and all times to direct the policy of these American concerns. "These outposts of German commercial aggression having fained a foothold in the United tates, were gradually spreading into Mexico and South America, which are legitimate fields for our own commercial development. In Mexico to-day the American Metal Company is second only to the American Smelting and Re? fining Con., ,.ny (Guggenheim) in its control cf the mineral wealih of that country. In Peru and Chile and other parts of South America these companies not only control the output of mines and smelters, but the American Metal Company also owns mining claims of great extent. "With unlimited resources at their command, they bought up mines, financed and built smelt? ers and refineries, bought and sold huge quantities of metals, organized and controlled their own systems of transportation and even invaded the oil industry. With the controlling power of these great organizations centred in the hands of Germans?know? ing what we know about Ger? many and Germans?who will deny that they have been a men? ace to this country?" German Outpost? Skilfully Placed The skilful strategy and location of many of the German outposts hero made the menace far greater than the bare figures of comparative capital and turnover show, as is proved by the manipulation of the price of copper. One example of this is tho Roes sler-Hasslacher company, not a member of tho triumvirate, but working hand and glove with it through the homo control. This firm was primarily a chemical com? pany, and its power lay in the fact that through patenta and other ad? vantages ?thad a complete monopoly m America of the manufacture of cyarmie, which in indispensable to the reduction of gold and silver ores. That is, it was in a position from wh'ch it could at any time throw a groat advantage to German eon trolled companies, or even force American concern? out of business by favoritism in the price of the vital cyar,id<-, or by such delays in delivery or refu i : to Bell as would make production impossible by the concern singled out for attack. This concern was entirely German controller! up to the war, arid many charges of activity hostile to Ameri? can interest? have hem laid against It. It? officials were admittedly pro German, and shortly before America came into the war they Bent as their agent for certain negotiations in Germany Oscar Rolland Seitz, who was active in all pro-?erman move ALIEN PROPERTY CUSTODIAN Sixteenth and P Streets, N. W., Washington, D. C. April 11, 1919. To the Editor of The Tribune. i Sir: I iiave read with interest the preliminary sketches of Mr. Frost's stories about the present German menace. I want to say to you that in my opinion they are a splendid presentation of the present situation, and, as far as I have gone, accurate and entirely justified by jrresent conditions. The situation at this time calls for just such a series of articles is Mr. Frost has written, and in order to insure their accuracy in detail I would be very glad to go cer them when fie has finished them and make nny small corrections whirl; the records of this office may justify. The wider publication these articles receive the greater the public service Mr. F'rost has been able to render. FRANCIS P. GARVAN, Alien Property Custodian. monts and was formerly editor' of Hearst's "Morgen Journal." Five of its officers drew salaries of $70,000 a year each, and one of them ad | mitted to the Alien Property Cus? todian that this was a scheme for I transferring profits to Germany ; secretly. Big Power Lay In Patents" Control Another similar strategic advan? tage lay in the control by Beer, Sondheimer & Co. of the patents for "minerals' separation,'' the process by which the metals are removed from the worthless material in which they ave found in the ore. These patents were taken out as lato as I 1914, and a syndicate was formed for their exploitation which was ex? tremely profitable, because of the great saving they permitted as 1 against the old processes. Beer, Sondheimer & Co. became exclusive ; agents for these in the United States, as well as having a heavy i interest in the syndicate. Thus ? there was another noose around the ? neck of American business. A third strategic move is seen in the lieavy investments in Mexico. There are two advantages to be gained there. The first is that all Mexican property is cheap at pres? ent, and by going in under Amer? ican names the German capital will have the chance to realize heavily when the time comes for the United States to adjust its claims in Mex? ico, while if this government does not do this the interests could be , retransferred to Germans and the German power invoked. The second advantage, of course, . is the concealing of the German wealth, to keep it out of reach of : the Allies when the demand for indemnities is presented. Thus, Germany on this continent is pur? suing the same course in chaotic .Mexico that she is following in Bol? shevik Russia?buying cheaply to get a secure foothold on the coun : try for future exploitation, and counting on the use of force to make the speculation good. Hun Gjpcrnment Kept Ciose Touch The close touch which the Ger : man government kept on these con ' corns is illustrated in tho case of ! Vogelstein, tho company being for i some time in financial troubles in the early years of the war. Hugo Schmidt, tho German commercial agent in America, promptly took hold and threw the power of the Deutsche Bank behind tho concern. He supplied credit, arranged foi shipments and finally helped to get ?? the assets concealed when war with < America became unavoidable. The American Metal Company figures in another way. When the ; lack of German potash drove Amer? ica to the development of her own i resources it became very much tc : Germany's interests to make sure that tho American developments ' could be crushed when tho time came. Von Berastorff, accordingly, started a scheme to have the Amer? ican Metal Company made the sell 1 ing agent, "in Germany and Amer? ica," for the American potash. He reported to his government as late as February G, 1917, just a few days before relations were broken off, that the prospecta of this were good after the war. Who would be in doubt of the fate of American potash in such hands? Since; America entered the war, official reports show, there has been no misbehavior by the American Metal Company. As much cannot \><- said fur .some of its subsidiaries, especially in Mexico, where officials have been most activo in the anti American propaganda on which Germany counted for a diversion. Big Fight Made Against Octopus AgainHt the octopus the Allied world has made a vigorous fighl and has scored heavily. Britair forced the breaking of all the Aus tralian zinc contract?. France ant Belgium built smelters. Knglam drove Morton & Co. into liquidator by refusing to give them a lisense though the firm could not be Beize< since all the owners were British subjects. In America also heavy blows have been dealt it. In spite of fictitious transfers of stock into Americar names, Beer, Sondheimer & Co. an< L. Vogel stein & Co. were seized bj the Alien Property Custodian, a: were the German shares in tin American Metal Company. The firs concern was put into liquidation. Ii the case of the second, since Vogel stein as an American citizen an< since it has been impossible to ob tain an exact accounting from Aaroi Hirsch & Sohn as to the interest involved, a five-year voting trust with Americans in control, has beci arranged, and the actual control o the business has been turned bad to Vogelstein. The American Metal Compan; was more complicated, but this, toe seems to have been put under ful American control, through the ai of a block of stock which was held b the Merton firm and was turned int the voting trust by Great Britaii This voting trust, also, runs for fiv years. "The German metal octopus, says Mr. Palmer, in summing up tl result of these operations, "ha spread his tentacles across t? ocean and over the United Stati into Mexico and South America, bi for the present surely, and for s time, it is hoped, he has been drive back and a wall of Am?ricains erected which, it is hoped, he w never be able again to scale." Not All Believe America Is Safe Not all who have watched t fight are so confident. Premier M. Hughes of Australia, who h a struggle against the octopus home, made the following remai in a speech last September. So of the things which he critlses hi since changed, but his attitude mains of interest: "The Metallgesellschaft i America had extended one of i most powerful tentacles. Tl American government has place these concerns under the contr of trustees, but this, while placil the present control in the ham of the government, in no way af? fects the designs of the enemy. It does not change the German oc? topus into a truly American in? stitution. If the American gov? ernment does no more than it has done, when the war is over the trade which flowed formerly down these alien channels will again resume its normal course. American labor and American capital will again exert them? selves for the benefit of an enemy which the manhood of America has sworn to destroy. "It is not by changing names or any such surface scratching methods that we can destroy the great octopus. Most certainly it is not. by appointing as two pub? lic trustees, as has been done in America, the very men who were the original conspirators. Of course, there are other trustees who ave bona fide American citi? zens, but we may be quite sure that Vogelstein and Hothorn, who controlled the operations of the business for Germany before, will continue to do so. Of course, they will aller their methods, cun ningly avoiding anything calcu? lated to arouse comment or ex? cite suspicion. They will endeavor to persuade the American citi? zens that all is well, that German influence is dead, but if nothing further is done Beer, Sondheimer & Co., A. Hirsch & Co. and the American Metals Company will, after the war, resume the' place in America which they occupied before the war began. Corvan Believes Hears Groundless Francis P. (ratwan, the present Alien Property Custodian, believes Mr. Hughes's fears are groundless, first, because the financial control of these concerns has come into Ameri? can hands, and, second, because, as will be explained .in a later article, he believes that the German agents, once forced into line, will be faith? ful. But, apart from this, he be? lieves thai everything the existing law permits has been done. Meanwhile the German home con? cerns have throughout the war been piling up profits at a rate unprece? dented, even in their own history, md they are to-day far more power? ful than when the war began. No .vhere has any measure been taken .0 prevent their growing again, if hey can find any man who will ;ake the money they are able to >ffer in return for stock in those md similar concerns. TIic German colonization which lominxitcrf. the woollen and lace mills >f the country will be shmon in to norrmu's Tribune. Detroit Has 5 Jobs For Every Soldier Special f'orrci'povrlcnot DETROIT, May 5. There aro five obs available in this city for every loldior who returns from the war and wo jobs for every civilian now out of ?rnployment. That statement is made on the nu hority of tho Red Crops bureau estab ished for the purpose of findine; em iloyrnent for returned soldiers. Every lay the office lias appeals for men which must bo left unsatisfied because here ar?.- not enough soldiers to take tho places. Not only is this true, but the rate if pay is goiiiK up daily and is now ?aid to bo at the highest point in the listory of industrial Detroit. Detroit employers hav?. decided that .hey will have none of the Bolshevik dement and other disturbers. The [ted Cross bureau has an order for 17."> men a week for a single large industrial plant. These 375 are to take he places of agitators who are re ;arded as un-American. They are being hopped from the payrolls of factories is rapidly as their tendencies are earned. : Inquiry Begins To Fix Blame For GCalF Raid Socialist Newspaper Asked by War and Treasury , Departments to Prepare \ Report of Its Version In accordance with orders from the War ami Treasury Departments the in ; vcstigation to fix responsibility for the May Day raid on the offices of "The New York Call," tho Socialist party organ hero, was begun yesterday. Managers of '"The Call" were re? quested by the office of General Barry, commander of the Department of the ; East, to prepare a statement of the I circumstances surrounding the affair ! for submission to the Washington au i thorities. At the same time Jerome A. Myers, director of tho outdoor activities for the Victory Loan organization, in? formed th? heads of the Socialist news? paper that he had been instructed to make a report on tho part men con? nected with the loan organization took in tho matter. Ha asked for copies ?of "The (.'all" for submission t.o the 1 Treasury Department as the paper's version 'of tho raid. Mr. Myers is also preparing a statement for Benjamin 'Strung, head of the Second Federal Reserve District, in charge of the loan ' body here. Reporta that members of tho Navy i'?ah were involved in tin' raid were ! denied by Mrs. William 11. Hamilton, vice-president of the organization, yes ! terday. "The Navy Club," she said, "had nothing to do with the affair, but did go in the evening to Madison Square Garden, meaning only to see that noth? ing un-American should take place. There has never been, in word or deed Of Navy Club members, anything that savored of violence. "The club has always stood for law; and order. The manner in which the I men of the club have conducted them | selves in developing and promoting genuine Americanism strongly refutes this mistaken impression, also that . they have acted for notoriety. I want the public to know that the men of tho Navy (Hub have at all times arid in all 'places done nothing that could in any way reflect upon their uniform, man? hood or their organization." Snann Again Appealed To by Empey's Accusers Delegation Asserts His Words Were Cause of "Yankee Wallops on ?Sose" in Riots The same delegation, headed by the Rev. Dr. Percy Stickney Grant, pastor of the Church of the Ascension, which called upi)n District Attorney Swann several days ago to protest against "tho propaganda of violence conducted by Sergeant Arthur Guy Empey and his associates in tho magazine 'Treat 'Em Rough,'" yesterday sent a letter to ? Mr. Swann inviting his attention to "the serious disorders occurring May ! 1," declaring "that these outbreaks may be traced to Mr. Empey's words." Part of the letter follows: "As you are doubltess aware, no less i ban eight headquarters and meeting ! place's of radicals were broken into by organized gangs of men in the uniforms of the army and navy, and those pres? crit subjected to every form of insult and physical abuse. There can, we think, he no question of fact here, for the press is unanimous on this point, citing innumerable instances of be? havior which passed out of the ruf? fianly stage into that of actual bru ] tality. Ono woman was assaulted be ? cause she wore some red about her clothing. "Figurative Speech" "You will recall that on our visit i to you we declared that precisely this kind of violence was likely to result from Mr. Empey's language. You re? plied that the language in 'Treat 'Em Rough,' however violent in expression. 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Red,' 'a Yankee wallop on the nose,' 'a I good right-handed swing on the jaw,' 1 as advised by Mr. Empey, were only : figures of speech. We believe you ! must now concede that there was ' nothing figurative about the exceed : ingly literal manner in which the edi ; torial advice to break heads and ad i minister bloody noses was carried out, not once, but many times on Thursday. "May we not earnestly beg you, a3 I one who we believe desires to see | averted in the future such shameful I occurrences as those of Thursday, to issue a statement of condemnation, not I only of Empey's magazine, but of all ? persons and journals advocating open ; violence of any sort? And we would ! take this opportunity to express our own condemnation of the excessive ! severity which members of the police force are reported to have used in at ; tempting to protect those assembled : in Madison Square Garden against the I soldier and sailor mob outside. A one legged soldier was very severelyclubbcd. Contrast Sentences "Finally, in the interests of averting further bloodshed in the community,may vvfi remind you that multitude-: in our city to-day aro contrasting the immu? nity of Mr. Emney with the severity of the sentence passed upon Socialists for i what at worst is mere misdemeanor. I At least fifteen persons were arrested I on May I for distributing labor circu? lars. One of these received a sentence i f six month.;; in jail." The letter concludes with the question, "May we hear from you?" and is signed by the following: Lincoln Colcord, assistant editor of "The Nation"; John Lovojoy Elliott, Hudson Guild Settlement; John llaynes [ Holmes, Church of tin; Messiah; Charles Recht, attorney; Norman Thomas, editor of "World To-morrow"; Frances With crspoon, secretary of Bureau Legal Ad? vice; Robert Morss Lovett, editor of "The Dial"; Kate Holliday Claghorn, School of Philanthropy; Henry Neu? mann, Brooklyn Ethical Culture Society; Percy Stickney tirant. Church of the Ascension, and Henry S. Coffin, Madison Avenue Presbyterian Church. Some days ago District Attorney Swann said he had not taken any action following the visit of the delegation. "Call" Issues Warning It Will Fight Raiders Radicals who gathered last night at a meeting under the auspices of "The New York Call" at Central Opera House were informed the newspaper did not intend to submit passively to any further raids on its building by soldiers and sailors, but was deter? mined to fight back. Miss Theresa Malkiel, treasurer of "The Call," informed the meeting the paper intended to place iron bars on all doorways and windows and install fire hose, as well as take "other meas? ures" to guard against further attack. Tho crowd cheered this announcement, and in the course of the evening raised $1,405 for "The Call's" defence fund. 600 Bay Slate Weavers Strike NORTH ADAMS, Mass., May 5. About 600 employes of the North Adams Manufacturing Company, Black inton Company and Hoosaic Worsted Mills went on strike to-day to enforce demands for a forty-eight-hour week, with timo and a half for overtime work, presented by the weavers' union and ignored by the manufacturers. The strikers ask fifty-two hours' pay for the forty-eight-hour week. An Ancient Soap Recipe Over 2,000 years ago the ancient Gauls made good soap of beech ashes and tho fat of goats. Burleson Accused of Misusing His Power By Increasing Rates ?Denounced as a Usurper of States' Rights at Hearing of Proceedings to Annul Rail and Wire Schedules WASHINGTON, May 5.?The author? ity of the Director General of Rail ? roads and the Postmaster General tc I increase Intrastate railroad, telephone ! and telegraph rates throughout the i country was argued to-day in the Su i preme Court in connection with appeaL ] from proceedings originating in a number of states. The hearing on the railroad case was finished to-day. but arguments in the wire rate cases will not be concluded until to-morrow. The appeal in the railroad case came from North Dakota, while the tele? graph and telephone rate cases arose from proceedings in South Dakota, Kansas, Massachusetts and Illinois. Briefs as amici curia1 were filed in the two cases on behalf of the National Association of Railroad and Public Utility Commissioners, representing about thirty-iive states, and separately by tho states of Pennsylvania, Ohio and Wisconsin, the city of Detroit and the Protective Telephone Association of Baltimore. State Officials Present The proceedings attracted wide at? tention, and attorney generals from | many slates were in tho courtroom. ?Arguments for the railroad adminis? tration were made in the railroad case | by John Barton Payne and I Donelly, while Frank E. Packard, of Bismarck, N. I.)., and W. V. Tanner, of Olympia, Wash., former Attorney Gen? eral of Washington, appeared for the North Dakota authorities. In the telephone cases the argu? ment was opened by Solicitor General King, who was followed by W. II. Hitchcock, of Boston, Assistant Attor? ney General of Massachusetts. The arguments in both cases to-day centred principally upon the conten? tion of the states that the govern? ment's action in fixing intrastate rates was an interference with state police powers. King Argues for Kurleson Solicitor General King argued that in increasing telephone and telegraph. rates the Postmaster General was act? ing on behalf of the public, as porations which own the wires through government control had ceased to operate them and acted solely as the government's agents. He asked for the dismissal of the wire cases <.:i th< ground that they were suits brought against the government withoul ?1 consent. Mr. Hitchcock accused the Post? master General of exceeding his powers in interfering with telephone rates and with unlawfully invading state p The Massachusetts attorney denied that the states were attempting to in? terfere with the government's operation of the telephone systems. Jordan Crooked; The River The world's most crooked river is the Jordan, which wanders nearly 220 miles to cover sixty. Cleveland Printers Get Raise Members of the typographical unie at Cleveland, Ohio, have received a in wages of from $27 to $:>.. a week. TO demonstrate the remarkable superiority of the new Sonora Semi Permanent Silvered Needles we shall be glad to give you a sample needle FREE. Note how beautifully it plays and how long it lasts. Write or call for yours. % A CILL S?mi-Permanent Silvered replace steelneedlcsand in? crease the life of phoriopmph records ! Tt?ey piny 50 to 100 times and are used on ALL MAKES of steel needle records. 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