policies of your Government. There was a considerable period when Germany could have relieved your distress; but would not. There was a period thereafter when her branches here might have assisted you; but they would not.

Listen! April 25, Boy-Ed, of illsmelling fame, writes to Albert:

Very Honorable Privy Counsellor. Today's World prints the enclosed short article on the alleged erection of dye factories in New Jersey by Germans. In case you are not able to take any steps to prevent an undertaking of this kind, I am requesting you to indicate to whose attention I could call the matter. With greetings, etc. Signed, Boy-Ed.

Albert answers, April 28, 1915: Very Honorable Captain: With regard to dyes, I got into touch with local experts in order to determine what truth there is in the news. According to my knowledge of things, the matter is a fake inasmuch as our factories have bound themselves orally and by word of honor to do nothing in the present situation which might help the United States.

Thank God! That day your independence began. That day our dye-stuffs industry was born. And supported by you with loyalty, patience and sacrifice, it has grown until today $450,000,000 is enlisted in the cause and we see the end forever of the past slavery and we stand unafraid in the face of any threat.

But even greater than the importance of the dye industry in commercial life is its absolute necessity in modern warfare. quote from Dr. Schweitzer:

I

In no other field has German efficiency proven its superiority as in that of chemistry. While this was anticipated before the present war, it is no exaggeration to state that the German chemist has so far contributed as much, if not more, to the success of the campaign than the strategist, the army and the navy, and that,

At first, chlorine and phosgene were the main requirements, but afterwards a variety of organic substances were employed, all of which were made by the factories of the I. G. combination, and may of these substances were new and difficult to prepare, and rapid production was only possible owing to the speed with which the peaceful organization of the dye factories could be utilized for these purposes. When the Government wished to introduce a new gas, a conference of the various firms was held at Berlin to determine how the manufacture should be subdivided in order to use the existing plants to the best advantage. For instance, the initial stages of the facture of mustard gas were carried on at Ludwighafen, and the final stage at Leverkusen."

They go on:

manu

"In the future it is clear that every chemical factory must be regarded as a potential arsenal, and other nations cannot, therefore, submit to the domination of certain sections of the chemical industry, which Germany exercised before the war. For military security it is essential that each country should have its chemical industry firmly established, otherwise we are leaving Germany in possession of a weapon which will be a permanent menace to the peace of the world."

"The key to Germany's war production of explosives was the Haber process for the production of ammonia from atmospheric nitrogen. With such a process Germany could not have made the nitric acid required for her explosive program,

nor obtained fertilizers for good production after the supply of Chile saltpetre had been stopped by our blockade, and it is probable that she could not have continued the war after 1916. In the event of another war, we might be cut off from supplies of saltpetre, while Germany would be independent of them."

Gas warfare, and its development, even if forbidden by the League of Nations, cannot safely be left in German hands, and organic substances will be employed which we do not know today. Any country without a well developed chemical industry is in danger. Useless your armies and your navies, your U-boats and your aeroplanes, unless by means of a developed dye industry you keep abreast with modern chemical warfare.

But this industry has had, and now has, another great function in Germany's machine. It was, and is, the basis of her espionage and propaganda system.

True it is that we had in this country the Orenstein Arthur-Koppel Company, a German concern owning a large plant at Koppel, near Pittsburgh. The chief business of that company was the manufacture and installation of what is known as "inside transportation," that is, narrow gauge railways, dump cars, traveling cranes, and machinery of a similar sort, used in large industrial plants. It was the American branch of a great German house with connections in all the great countries of the world. For twenty years it has put in bids based upon the plans and specifications of every big industrial plant built in this country; and for that same twenty years, blueprints of

these specifications and floor plans and elevations have gone on file in the Government office in Berlin.

True it is that in this country we had eighteen branches of German insurance companies, largely engaged in the reinsurance business; and that these companies collected for their own use detailed plans of all property insured by them, with especial reference to the hazard of the insured buildings from fire, explosion or other causes; and duplicates of these plans and drawings also found their resting place in the Berlin office. And we wondered at the accuracy of our factory fires and explosions!

True it is that Germany, through the Bosch Magneto Company, the Eisemann Magneto Company and the Boonton Rubber Company had a practical monopoly of the ignition systems in America, and through this combination the files of the central office in Berlin were kept up to date with all plans for improvements in military trucks, gasoline boats and aeroplanes.

Let me read you Manager Otto Heins' report to Dr. Albert of the activities of the Bosch Megneto Company in this, your country, at that time neutral.

Honored Mr. Albert: In connection with the obstruction policy upon which we agreed at the beginning of the war in matters concerning deliveries of our products, especially the special magneto apparatus, I should like in the following to make several statements from which one will clearly see that the accomplished obstruction policy has in every way been successful. In short, we had great difficulty at the beginning of the war in withholding the much-needed special aeroplane apparatuses from the Allies, and in preventing the Allies, especially the English,

from immediately attempting to manufacture them for themselves. Special apparatuses are involved in flying machines, airships and speed boats. These apparatuses are very different from the normal apparatus used on automobiles and motorcycles. We have freely supplied them with ordinary apparatuses; but, in accordance with our agreement, we have entered into apparent negotiations with the representatives of the Allies, creating in their minds the impression that they would receive also the special apparatuses at the present time. These negotiations began immediately after the first declaration of war, and it was possible, on account of their technical character, to extend them

many months into the war. Our policy lulled them into the certainty that they would receive the special apparatus and only now, November 3, fifteen months after war began, have they realized our duplicity.

He goes on to state that this policy has been carried out despite the fact that these contracts were in many instances subcontracts with American firms; and he gloatingly continues that as a result of his ac

tivities in this country England in October, 1915, found herself unable to defend London against their air raids, and states that France was in a much better position to protect herself against air raids because of her confiscation of the Bosch factories in Paris at the beginning of the war. I wonder how many women and children were killed!

True it is that the HamburgAmerican Line and the Nord Deutsche Lloyd kept faithful tab for Berlin on a thousand details of our business life which came under their observation; that not a ship left our harbors; not a cargo was loaded or unloaded, but that some member of its organization watched and reported every detail to be sent by code to the German Government.

But greater than all, and forming the foundation of her entire espionage and propaganda system, stood the

dye industry. Her trained observers enjoyed full access to the businesses they supplied, and regularly and faithfully reported each and every detail of the three billion dollars of annual business dependent upon the dye industry in this country. As long as you were supplied by the "Big Six," your business had no secret unknown to Berlin. In Berlin you will find a card index system which recites every fact connected with each and every one of your concerns that can be of any possible value to your rivals over there.

The head of that system in this country for years before the war was Dr. Hugo Schweitzer, president of the Bayer Company. He was given his Secret Service number by the Imperial Minister of War, 963,192,637. He came to this country, became a citizen on the instruction of the German Government, eventually was made the head of the Bayer Company, and led the espionage and propagandist movements here down to the day of his sudden death in November, 1917. His regular reports to Germany are the story of your prewar slavery and the story of the activity of each and every representative connected with the old "Big Six" to perpetuate that slavery. When Albert came here, to assume the leadership of that system, it is to Schweitzer he first turns. And then we find Schweitzer bringing to Albert's office from day to day those other smiling gentlemen who have been selling you the "peerless dyes" in the past, and from that moment begins the period when Germany's trade outposts in

this country turned into ministers of lawlessness and destruction.

A word or two of his activities. Schweitzer was the inventor of the idea to purchase the New York Evening Mail.

We find Albert, about to go home, in January, 1917, turning over to Schweitzer $1,178,882.08; and again, on February 2, $300,000, all to be spent in espionage and propaganda. We find Schweitzer using the chemical branches of the "Big Six" in this country to form the Chemical Exchange, by which all available phenol supply in America was turned away from the manufacture of picric acid for explosives for the Allies, with a profit, out of America's pocket, to Germany of $1,650,

000.

Listen to Albert's praise:

The breadth of high-mindedness with which you at that time immediately entered into the plan has borne fruit as follows: One and a half million pounds of carbolic acid have been kept from the Allies. Out of this one and a half million pounds of carbolic acid four and one-half million pounds of picric acid can be produced. This tremendous quantity of explosive stuffs has been withheld from the Allies by your contract.

Of still greater and more beneficial effect is the support which you have afforded to the purchase of bromine. We have a well-founded hope that, with the exclusion of perhaps small quantities, we shall be in a position to buy up the total production of the country. Bromine, together with chloral, is used in making nitric gases, which are of such great importance in trench warfare. Without bromine these nitric gases are of slight effect; in connection with bromine, they are of terrible effect. Bromine is produced only in the United States and Germany. While, therefore, the material is on hand in satisfactory quantities for the ent upon importation from America. Germans, the Allies are entirely depend

But that is not the worst. At Bo

gota, New Jersey, in the New Jersey Agricultural Chemical Company, Dr. Schweitzer employed Dr. Walter Scheele, who was the inventor, in that little town of New Jersey, in 1913, of mustard gas, the formula of which he transmitted through Captain von Papen to Germany as soon as the war broke out. This is the mustard gas which laid low your brothers on the plains of France.

Untold millions were spent by this man in propaganda and espionage in the United States. In the two years before we entered the war, the Bayer Company drew $2,000,000 from the profits of its Orient and South American houses, which money was spent here, for what purposes we can well imagine. It never went through their books. Practically all the dye salesmen you saw were only nominally in the employ of the branches here; all had secret and personal contracts with the home office.

Coincident with the development of Germany's dye industry came the general development of her chemical strength. If offered great incentives to young men. It developed a large body of trained scientists.

It encouraged and fostered the spirit of research in all lines, and added to the effectiveness of practically every industry in the Empire.

Gradually Germany was obtaining control of the pharmaceutical industry of the world, and gradually it was dawning upon her that this development too might put in her hands an even more powerful weapon than explosives or poisonous gas in her conscienceless con

quest of the world. Most of the great discoveries in chemical medicine came directly from the dye laboratories. Are you content that the development of chemical medicine shall remain the exclusive possession of the German nation as we now know it?

Briefly then I have tried to give you a picture of the situation of this country in its relation to the dye industry, as our daily expenience of the past eighteen months unrolled it before us. Do you wonder that A. Mitchell Palmer and all those who fought under him were shocked beyond measure, and could not rest until Congress had amended the Act and had given us the power under which we could, and have, rooted out each and every branch of that system and sold it into the hands of patriotic Americans.

But that was not enough. Germany had misused our patent system, just as she had misused and violated our Sherman Law, our antidumping laws, our antibribery acts, our business code, and our common code fo honesty. She had taken out patents for all her developments, covering, in many instances, not only the processes, to prevent manufacture here, but also the product, to prevent our taking advantage of any possible development in the dye industry of other countries. Of these patents, 4500 which applied to chemistry Mr. Palmer sold for the benefit of American industries to a quasitrustee corporation, called the Chemical Foundation.

This company is capitalized for $500,000,

$400,000 being six per cent, preferred stock and $100,000 common stock, also limited to dividends of six per cent.

This Foundation proposes to license to any competent, equipped and patriotic American, individual, firm or corporation, such of these patents as, with the help and encouragement of the Foundation, may be utilized. This Foundation proposes to begin to fight at the customs gate against any violation. of the patents now owned by it, whether they appear as denationalized or camouflaged products seeking to enter through neutral

sources. It proposes to establish an Intelligence Department which will co-ordinate, preserve and utilize all the chemical information gathered by every department of the Government during the war, and make that information available to the American public that they may know the exact truth as to the past, and may be kept apprised of all German activity, either through its own agents or its American connections, during every stage in the coming struggle.

It proposes to match with watchfulness and pitiless publicty all future attempts at espionage or propaganda in our land. It proposes to expose all unfounded criticism directed against our productions, and, on the other hand, to do what it can to prevent producers or dealers here casting reflection upon our industry by the marketing of inferior or dishonestly described products.

It proposes to encourage and foster chemical research by co-opera