-Caveat Lector- <A HREF="http://www.ctrl.org/"> </A> -Cui Bono?- an excerpt from: Treason's Peace Howard Watson Armbruster©1947 A Crossroads Press Book Beechurst Press New York 438 pps. -- First/Only Edition -- Out-of Print --[8]-- CHAPTER VIII Republicans—Open The Door ON OCTOBER 20, 1942, The New York Times published a sensational story about a "sealed" gift to the Library of Congress of some nine thousand letters comprising the files of the late Edward T. Clark, private secretary to President Calvin Coolidge. The story attracted interest because it stated that these files had been advertised to be sold at public auction on Oct. 28 at the Parke-Bernet Galleries in New York City, but instead were suddenly withdrawn from sale and presented to the nation by one Charles Kohen, proprietor of the Hobby Shop of Washington, D. C., who had secured the files from Clark's widow. The Times article stated that the correspondence covered ten years, from 1923 to 1933, which period included part of the time Clark spent with President Coolidge at the White House. It was also stated that the catalog listing of the letters classed some of them as sensational. What the Times article did not reveal, however, was that Edward Terry Clark, or Ted Clark as he was known in Washington until his sudden death in 1935, was not only personal secretary to President Coolidge until March 4, 1929, but that immediately after that date he became Washington representative of Drug, Inc. Clark, with the title of vice-president, was in charge of "government relations" from then until 1933 — when Drug, Inc. was unscrambled, and Sterling returned to its earlier status as the Farben partner in the-patent medicine industry. Drug, Inc., it will be recalled, was the tie-up of Sterling and the Louis K. Liggett group in 1928 which later took in Bristol Myers, Vick, Life Savers and other large national advertisers. Ted Clark was, in plain English, a Washington lobbyist, main-tained at the national capital in the interest of Farben's original postwar tie-ups in the drug industry, which tie-ups ten years later were admitted by all concerned (except Farben) to have been illegal from the day on which they were first entered into. After Clark -left the President of the United States his boss was William E. Weiss, senior vice-president and general manager of Drug, Inc., who, some twelve years later, was to be prosecuted and fined under a federal criminal statute, and forced out of Sterling be-cause of what the United States Treasury termed his "undesirable" relations with I.G. Farben in the latter's "plotting of the downfall of the United States." The Times story also neglected to mention that in August, 1932, when Herbert Hoover was running for reelection as President against Franklin D. Roosevelt, his White House secretary, the late Thomas G. Joslin, went off on a vacation and Mr. Hoover "borrowed" Ted Clark from Farben's Drug, Inc. Thus Mr. Clark became the official secretary to the President of the United States, while Drug, Inc., agent of Farben, continued to pay his salary as though no interruption had occurred in his services as its Washington representative. (And perhaps none bad.) At the time, this incident created something of a stir. It was too much for the New York World-Telegram's usually sweet-tempered Raymond Clapper, who described the temporary secretary to Mr. Hoover, as a "lobbyist whose salary was paid by Drug' Inc." Editorially the World-Telegram commented that, "the President must be very insensitive Much more than the vagary of Hooverian taste is involved." The day after the Times first published the story of the sudden decision to get these Clark files under lock and key, the New York Herald Tribune still further whetted the curiosity of those who knew of Clark's activities by quoting Mr. Kohen as having said that the files included correspondence with Col. William J. Donovan, who was Assistant Attorney General during the Coolidge Administration; Charles D. Hilles, member and former chairman of the Republican National Committee; and others. Also that there were letters pertaining to South and Central American countries, and that it would be a terrible thing if German agents got hold of them. The description of these files printed in the Parke-Bernet catalog is intriguing in its implications. Whoever wrote it would seem to have examined the files carefully and to have had a deft sense of the value of spicy historical documents: They provide an insight into the political workings of official Washington and much important information of a private nature on various public and political matters ..... The correspondents are persons of note, including members of Congress, governors of states, government officials, busi-ness men, financiers, personal friends, politicians, and others in various walks of life. The letters pertain to matters of government, public works, political matters, etc. Some of the letters may be classed as sensational; they reveal the workings of a political machine. The writers seek legislation in favor of their business, seek appointments to positions for friends of the Republican party Another folder contains correspondence between Mr. Clark and the holder of an important office during the Coolidge Administration, and who has been appointed by President Roosevelt to a high government office since the outbreak of the present war on political and private matters. With regard to those letters referred to in the catalog as having been written by seekers of official favors, it should be recalled here that in the case of such "favors" as may have related to the affairs of Sterling, Bayer, and Winthrop, these companies had clauses in their contracts which stipulated that Farben would share in their expenses. The possibility of Farben thus having been charged its proportionate share of Clark's salary while he was "Acting Secretary" of the President of the United States, is not edifying. However, to return to the story of the aborted auction of the files. Several months after they had gone to their Congressional guardians, I had the pleasure of meeting Mr. Kohen. His little Hobby Shop is just around the comer from the White House, on 17th St. near Pennsylvania Avenue; its windows and the counters and cases inside display autographed letters, historic- documents, stamps, coins and medals. Its proprietor told me a dramatic story. As soon as the story of the Clark files was published, fantastic things began to happen. In one instance an imposing-looking individual came into the shop, while two other men stationed themselves outside the door. His visitor, who gave no name, was brief and to the point. He merely announced that he had come to get the Clark files, and had brought with him $100,000 in cash as purchase money. When Mr. Kohen refused this bizarre sum, his mysterious customer denounced him as a fool, and departed with his little black bag. Mr. Kohen had another visitor, this one a gorgeous young lady -"and I mean gorgeous," he assured me-who came into the shop and wanted to know whether a certain gentleman had written any of those letters to Mr. Clark. On being told that he had, the young lady informed Mr. Kohen that she would take those particular letters at his, Mr. Kohen's price. Again the offer was rejected. The high point in Mr. Kohen's story was the reason he gave for donating the files to his country. "As a veteran of the last war," he said, "I feared that if I let the auction go through, a German agent might get the files, destroy those which were objectional to the Nazi cause, and make use of other letters to embarrass our present war effort." After I first heard the story, but before I met Mr. Kohen, I suggested to government authorities that in view of my own knowledge of Clark's activities, an official examination should be made of this correspondence. So far as I can learn this was not done. That suggestion was by no means my first effort to induce official Washington to look into the lobbying activities of Mr. Clark. In December, 1929, I had written to the late Thaddeus H. Caraway, asking that his lobby committee question Mr. Clark about the connection between Drug, Inc., and I.G. Farben. I also called the Senator's attention to the fact that a few years back, Secretary of Commerce Herbert Hoover had appointed what be called a Chemical Advisory Committee to help him decide what to do about the encroachments of I.G. Farben; and that some of the individuals who had been appointed to that committee were under the influence of that same German combine. With that letter I enclosed a reprint of an editorial from the publication Che micals of May 13, 1929, entitled "Does the American Chemical Industry Need Guts." Senator Caraway never acknowledged either the letter or the editorial. The editorial was written by my good friend Sidney W. Dean, Sr., one of the few writers in the chemical industry who did not hesitate to express publicly, what was said privately by substantially all of his less robust colleagues when the subject of Farben came up. That reads in part as follows: Several weeks ago. through the financial pages of the metropolitan press, it was announced that a banking group, headed by the National City Bank of New York, was offering $30,000,000 in guaranteed 5.5% debentures of what—the American I.G. Chemical Corporation. This American (?) annex to the German dye and chemical cartel-the Interessen Gemeinschaft Farbenindustrie Aktiengesellschaft of Frankfort-on-the-Main in Germany-proposes to manufacture in America such chemical and dye products as synthetic gasoline and motor fuels, products from the hydrogenation of coal, dyestuffs, synthetic fertilizers, artificial silks, and solvents and lacquers. While not so stated, this new colossus with a German accent will also manufacture and vend medi-cinals, pharmaceuticals, photographic chemicals, biological stains, etc ...... It is an amazing program—yet the most amazing thing about it is the roster of American business men announced as affiliated with it as executives and as directors ..... Now, what is this $30,000,000 for? Simple enough when you stop to think it over-for the acquisition of stocks of certain prominent American chemical companies already deeply attached to the I.G. by agreement or friendship or relationship, or patent agreement, or what have you, by filaments so fine as to be almost invisible to the general public and chemical buyer of this country, and yet as strong as steel ..... Is there to be repetition of the cut-throat tactics existing before the War in the battle for dye and chemical markets, not only in the United States but in Central and South America? ..... Are we to again see the source of our explosives (for every dye laboratory is a potential arsenal) under the dexterous thumb of gentlemen wearing honorary degrees from Cologne or Heidelberg or Berlin? Shall our recent discoveries in the realms of film and photographic chemistry; in serums and stains, in pharmaceuticals, synthetics, lacquers and solvents, be gathered into a mighty merger under the shadow of the world's most grasping and most powerful cartel? Dare we, realizing that mergers and trusts cannot be operated legally in this country with foreign control, insist that the actual ownership and direction of such new mergers as shall appear from now on in the field of chemistry and allied industries be probed to the last proxy in the safe deposit vaults of Wall Street or the depositaries of the I.G.? Have the American chemists and chemical producers and dye makers and distributors the guts, as we have so expressed it, to fight this new battle to a finish so that we may know now and in the future into just what pockets and just what coalitions the products of American plants and laboratories are descending? Have the American chemists forgotten just how and where many of the formulae were obtained for products which have now entered world trade in competition with Germany? No? Well, you may be assured that Germany has not. Is it not the proper moment to erect a few tank-proof obstacles in the way of such international merger-colossi instead of greasing their path with tears of sorrow at our own helplessness, while decking the oncoming monopolies with the coupons of bonds sold to American purchasers by American banking houses? In God's name! Has the American chemical industry no guts? Full credit for that editorial challenge to the power of Farben belongs to Sidney Dean, but I had some small part in its inspiration and I also secured a large number of reprints with which for some time afterward, I belabored official Washington in a vain attempt to arouse a realization of what Farben had already done, and proposed to do, to our national security. As part of the story of this editorial it should be added that the** at publication Chemicals no longer exists. It met with the sad fate that so frequently has been visited upon those who rushed in, in print, where the Farben brand of angels fear to tread. The story of Secretary of Commerce Herbert Hoover's Chemical Advisory Committee goes back to 1925, when Mr. Hoover announced that he had appointed a group of nine men, each prominent in some branch of the chemical industry, to act as a liaison body between the industry and the Department of Commerce. One member of that original committee was Henry Howard, vice-president of the Grasselli Chemical Co. Later Mr. Howard's name on the committee was to assume a very definite significance. In December, 1926, several hundred men more or less prominent in the chemical industry received invitations signed by Mr. Hoover which stated that he was calling a conference in Washington at the suggestion of the Chemical Advisory Committee in order to inform the Department as to the needs of the industry. Being one of the elect I attended the conference and the banquet which followed. By that time I.G. Farben -had been formed. Its gigantic proportions were realized and the character of its early tie-ups in the American drug and dye industries had become public. For this reason the main subject of private discussion on the floor of the conference was Farben. And the one great question in the minds of all present was where Mr. Hoover stood on the issue. The answer, as far as the conference was concerned, was zero. Mr. Hoover spoke feelingly of the wonderful service to business the reorganized and enlarged Commerce Department was prepared to render, and of his own determination to assist the chemical industry. However, when some of the diners asked questions which approached the Farben issue, it was impossible to determine from the replies what, if anything, the Federal Government intended to do to put a stop to foreign encroachments upon the industry. A year later it was announced that a second conference of executives of the chemical industry was to be called by Secretary Hoover, and this time the engraved invitation tacitly recognized the Farben issue by stating that its purpose was "to consider present world conditions as they affect the American chemical industry." Meanwhile, and as a preliminary to this second conference, it was announced that Secretary Hoover had decided to increase the membership of his Chemical Advisory Committee with eight additional executives, three of whom were Walter Teagle, president of Standard Oil of New Jersey, Lammot duPont of the duPont Company and Frank A. Blair, president of the Sterling subsidiary, Centaur Co. It had, already been announced publicly that Standard, under Teagle's leadership, had entered into the first of its tie-ups with Farben. The duPont relationship was recognized. And Sterling was boasting openly of its newly gained power as Farben's American partner in the drug industry. Blair was recognized as the most active of the lobbyists who represented Sterling's interests at Washington, especially in legislative matters. So, here were four men, Teagle, duPont, Blair and Howard, serving on the Secretary's Chemical Advisory Committee to tell him what the chemical industry wanted done about Farben. And the companies of all of them may appear to have been on the Farben side of the fence. About this time, many articles were being published about the tremendous strides the Germans were making in their attempt to draw the chemical industries of the entire world into their sphere of influence. And not a few of the articles had to do with Farben's new ventures in the United States. In the New York Journal of Commerce of January 12, 1928, Department of Commerce officials were quoted as having stated that they had no confirmation from their representatives abroad regarding the proposed entry of I.G. Farben into the American chemical industry, and refused to comment upon the report that Farben was seeking to purchase American companies. The correspondent of the journal then went on to state that there was some agitation in Washington for legislation to combat the encroachments of the Germans, but that Secretary of Commerce Herbert Hoover had expressed the opinion that 'lengthy study of the situation would be necessary before steps could be taken' to amend the law, and that hasty action should not be countenanced." As events were to prove, neither hasty action nor any other kind of action was taken, save to unlock all the legal doors and throw away the keys. Many of us who made the trip to Washington for the second conference expected some enlightenment, and possible encouragement, on the Government's attitude towards Farben. We got the enlightenment-but not the encouragement. Among the speakers announced were Colonel William J. Donovan, Acting Attorney General; William T. Daugherty, Trade Commissioner of the Commerce Department at Berlin; and Daniel J. Reagan, Commercial Attache' at Paris. Some pointed questions had been prepared to be put to Colonel Donovan regarding enforcement of the antitrust laws. However, that was not to be. The open forum, which bad been scheduled, was turned into a closed shop by the opening remarks of the chairman who announced that it had been decided to dispense with questions from the floor because they would not be as beneficial as questions that bad been coordinated by the Advisory Committee. Mr. Daugherty, the Secretary's ace investigator of the German cartel, made some interesting observations. "The cartel," said Mr. Daugherty, "when it combines producers of varying production costs, protects the weak against the strong" (a beautiful thought but hardly an accurate one). Mr. Daugherty went on to say: German dye trust officials have been considerably exercised of late by press reports that their chemical industry calculated to consolidate for the particular purpose of opposing -the best interests of the American chemical industry. While it is not the purpose of this discussion to reach any definite conclusion on this controversial issue I can quote cer-tain leading figures of the German dye trust who deny first that they are out to fight the American chemical industry, and secondly that the dye trust has bought heavily into shares of the American chemical industry. They emphasize on the other hand that it is their wish to frame agreements with elements in the American chemical industry and cite as proof of this at least three German- American agreements arrived at in the past year. They indi-cate also that further special agreements with American chem-ical and related companies are in sight ..... Before leaving Berlin last month, I was told substantially the same thing by Dr. Bueb, the dye trust's leading figure in that city, that if accurate information were wanted concerning the dye trusts' plans in connection with international tieups, either he or Dr. Bosch would welcome questions from any reasonable American firm, association, or individual. The dye trust's argument is of course that rationalization, begun after the inflation period in Germany, is now being sought internationally in the interest of lowering costs by combatting over-production, by allocating markets, and it follows that such arrangements involve price fixing. This effort is only in its beginning now and the future may bring forth many significant international associations. When Mr. Daugherty finished his address I found myself standing at the elbow of Mr. H. Hill of Kuttroff, Pickhardt & Co. I asked him how he liked the speech. "Very good, splendid" replied that member of Farben's American front. Mr. Reagan's speech, in light of later events, contained some food for thought. He quoted the head of the French dyestuff industry as saying that he considered it the policy of the French chemical industry to promote peace by effecting international ententes. Colonel Donovan was the most important speaker at the conference, and his subject, as announced, "Foreign Cartels and American Industry" gave promise of a clear-cut statement of the attitude of the justice Department towards I.G. Farben and the latter's American tie-ups. Stated the Colonel: It is the belief of the Department of justice, that when a foreign monopoly, though legal in its place of origin, comes into this country, and, by collusion with our citizens enters into agreements here for the restraint of trade and the enhancement of prices, those agreements are just as illegal, and just as much subject to our laws, as they would be if the corporations and individuals involved were creatures of our government. This part of the talk sounded as though the Colonel was clearing the decks for action. Thurman Arnold could not have put it stronger. A bit later, however, he said: So far as it presently appears, the so-called chemical entente and the Franco-German dyestuffs agreement appear to involve no attempt to exploit this market. In fact, we have authentic assurances that these arrangements are not directed against this market. Two days before the conference those of us who bad accepted the invitation received a wire stating that Mr. Hoover would be unable to attend. His apologies, read to the conference, expressed his regret at not being present, and complimented the industry for having solved some of its difficulties. "The Department of Commerce," said the absent Secretary, "is created for service ..... We can serve only by direction of the leaders of the industry. Therefore the industry is asked to express its needs to the Advisory Council." It was a happy thought, we could write to Mr. Teagle or to Mr. Blair. In my own case all doubts were removed. I declared an all-out war. Mr. Hoover became Secretary of Commerce in 1920, when the original postwar Republican Cabinet was installed by Warren G. Harding. His official activities in Europe during the war, and as an adviser at the Peace Conference, had given him much firsthand knowledge of the backstage connections of Kaiser Wilhelm's war machine. As Secretary of Commerce for eight years, he was to be supplied with much additional data which pictured the pattern of I. G. Farben in all of its many manifestations in other countries and inside the United States. In January, 1924, Dr. Julius Klein, Director of the Bureau of Foreign and Domestic Commerce, transmitted to Secretary Hoover a report prepared by Thomas W. Dalahanty, of the Chemical Division, which contained a very excellent historical sketch and chart of the German dye companies. The report referred to the part played by the German government in the success of the cartel; to the cartel's practice of taking out basic patents in all countries in order to stifle others in its field; and to the dishonest practices of dumping, bribery, deceptive labeling, and false propaganda; and the setting up of, or control of factories in this and other countries in order to assist the mother industry. No one reading that report could have any doubt as to precisely what the Germans proposed to do and would accomplish, if permitted, in the establishment of new tie-ups, partnerships and subsidiaries, inside the United States. In 1927 Dr. Klein and Mr. A. Cressy Morrison, Union Carbide & Chemical Corp., executive, and chairman of Hoover's Chemical Advisory Committee, attended the Economic Conference of the League of Nations as unofficial observers for the United States. Mr. Morrison's widely published accounts of the conference discussed at some length the so-called "Rationalization of Industry" by which I.G. Farben, as a cartel, was alleged to reduce costs and therefore lower prices to the consumer. Mr. Morrison was somewhat skeptical about the usefulness of the cartel theory, and stated quite plainly that its strength lay in its centralized control and ability to dump its products or utilize other competitive devices to strangle its competitors. He recited one illustration, discussed at Geneva, of the prewar activities of the German dye cartel in a South American country, which made this vicious part of the Farben pattern stand out in such high relief that it should have been sufficient warning to all concerned that Farben was again erecting an espionage machine. As Mr. Morrison described it: In Brazil, for illustration, representatives of the German Government were everywhere, in banks and other clerical positions, acquiring information regarding contracts and trade relations with other countries, so that the information might be transmitted to Germany and there acted upon by the cartel for the benefit of German commerce. Then, in February 1928, at the time of the Chemical Executives' conference, the Commerce Department published a lengthy analysis of the progress of I.G. Farben, which referred to the 1927 tie-up with Standard Oil; to its ties on rayon with the English Courtaulds, owners of American Viscose; and with Metz, Grasselli, and Sterling-Bayer. Thus the record of this entire period proves conclusively that during what Thurman Arnold later called "the era of non-enforcement of the antitrust laws," the Government of the United States knew in ample detail what Farben was doing in Europe and in precise detail how illegal its tie-ups were inside the United States. Colonel Donovan made another noteworthy contribution to the picture on May 9, 1929, after Mr. Hoover had become President and Donovan had resigned from the justice Department. Although then in private practice, his views were regarded as indicating what action might be expected from the Hoover administration with regard to the financing of Farben's American I. G. Chemical Corporation with thirty million good American dollars, which operation, successfully consummated within a few weeks of Mr. Hoover's inauguration as President, had incited the outspoken wrath of many men in the industry. The Colonel's address to a large gathering of members of some fifteen technical associations at the annual chemical industries banquet said little about the Farben issue, but that little was to the point. He stated that if the United States could build plants in France and in Germany for the production of American automobiles and machinery, then the Germans had an equal right under the law to erect chemical plants in this country. The loaning of American money to Farben to enable it to erect plants in the United States, and the illegal character of the tie-ups by which Farben was tightening its grip upon our munition industries, did not enter into the argument. In March 1930, Representative Wright Patman of Texas made a bitter attack upon both the justice Department and the Federal Trade Commission for not enforcing the antitrust laws, and gave special mention to the Standard Oil group, to which he accused the new Attorney General, William D. Mitchell, of turning over his office. "This" said Patman, "is because he is following directly in the footsteps of Harry Daugherty." Patman's reference to former Attorney General Daugherty takes us back to some of the notorious instances of criminal malfeasance and official degradation of the Harding Administration. Among these shameful incidents were the indictment and trials of Daugherty and Thomas W. Miller, former Alien Property Custodian, for conspiracy in receiving bribes from German and Swiss interests in consideration for the return of some $7,000,000 of German property which had been seized by A. Mitchell Palmer and Francis Garvan. Others indicted were John T. King, former Republican National Committeeman from Connecticut; and Jesse W. Smith, this friend of Daugherty, who lived in the "little house with the green shutters" had an appointment to "talk" one morning but never kept it-he was found quite dead with a revolver in his hand and a hole in his head. King died before the first trial of Daugherty and Miller, at which a hung jury resulted. In the second trial Miller was convicted, but the jury failed by a single vote to convict the former Republican Attorney General. Regardless of the extent to which I.G. Dyes was directly involved with the German and Swiss individuals named in these indictments, the purpose of those who supplied the $400,000 bribe was the development of the Farben pattern. In 1929 Francis P. Garvan brilliantly summed up, on a court record, some of the official infamies which accompanied the beginnings of Farben's comeback in the United States. Garvan was the most conspicuous defendant in a case whic h was instituted during the Coolidge administration against A. Mitchell Palmer, Garvan, and a number of others in the federal court at Boston, Mass., for alleged improper handling of the sale of Bosch Magneto Co., headed by Robert Bosch, brother and close associate of Carl Bosch head of I.G. Dyes and I.G. Farben. The charges were made and publicized continuously from the time Palmer and Garvan first seized and then sold the Bosch property for over $4,000,000, under authority and instructions of President Woodrow Wilson. They constituted the high point in the propaganda to discredit the seizure of the properties and patents of the Germans, and to justify their return by the Republican postwar administrations. Among those involved was Merton E. Lewis, a lawyer who was first retained by the Bosch interests in 1919 to attack Mr. Palmer before a Senate Committee. Later, Mr. Lewis was made an assistant to the Attorney General to prosecute Garvan and Palmer, and, fantastic as it may appear, his pay for this official service again came out of Bosch funds. Among others named by Garvan in scathing language were John Crim, former counsel for the German Embassy who was appointed by the justice Department to secure Garvan's indictment; along with former Attorney General Daugherty and his notorious pals, Jesse Smith, Gaston B. Means, Thomas B. Felder, John T. King, Thomas W. Miller and a long list of others identified by Garvan as German agents. Republican Senator George H. Moses was pictured as instigating Gaston Means to "get" Garvan by fair means or foul, and as appointing Otto Kahn, partner of Paul M. Warburg, of American I.G., as treasurer of the Republican Committee to raise funds with which to elect Senators who would vote favorably to Farben's interests. Mr. Garvan's testimony, with citations from official records, was couched in language without precedent in denouncing high government officials in a court proceeding. Garvan, waiting for years for the opportunity, forced into one concise record the assembly of facts which not only cleared him and the others of wrong doing, but proved the infamy which had indicted them. He let loose with both barrels and the result was devastating. While Mr. Garvan was testifying relative to the Bosch Magneto case one of the government attorneys asked: Has anything occurred since Jan. 1, 1919, which had been the occasion of your having a rather accurate memory with respect to the details of the Bosch transaction? Garvan in reply let loose a barrage of fact which completely destroyed the case against him, and which pictured the pattern of Farben and its allies in all of its vicious ramifications. For stark indecency there is no page in the history of this republic which approaches the recital of shameless bribery, brazen corruption and foul pollution of official power which Garvan, on Dec. 11, 1929, hurled into the faces of his accusers, and burned into the records, of the case. Incriminating his persecutors with one sordid fact after another Garvan traced each link in the chain of official degradation straight back to Robert and Carl Bosch, and to the latter's plan to destroy the military security of this nation. It is imperative to quote Garvan's testimony at some length in order that the reader may perceive, in its full significance, how the sinister facts from the record fit together to form the pattern of what has already happened—and the prospect of what was yet to come. In part, Mr. Garvan's testimony was as follows: In answer to your question as to the refreshing of my recollection . . . . . I think it is probably better to state it this way: that the overpowering fact that has illuminated my memory, has made me search every possible record and has made me ceaselessly work night and day to ascertain the truth of the f acts in this case, was the charge in the complaint here, signed and sworn to by Merton E. Lewis, to the effect that when our country's darkest hour, in April 1918, was at hand, when, as President Wilson said, we were with our backs to the wall, that I betrayed my country and entered into a conspiracy . . . . . to turn over this company . . . . . for less than its value. That is a charge of treason and there has not been one word of testimony, and furthermore there never can be one word of testimony adduced as to the truth of that charge . . . . and then I found . . . . the following facts: that in our files (Alien Property Custodian) on the payroll of the Ham-burg American line for three years before the war was a man by the name of John T. King, receiving a salary of $15,000 a year for mysterious services; that on that payroll was Gaston B. Means; that Means had been a German spy in this country for years and years . . . . . and then this man John T. King shows up in my office and says he is to be appointed Alien Property Custodian . . . . . John King told me his appoint- ment had been obtained by himself from Senator Moses, and next we find . . . . . that be and Senator Moses had obtained the appointment of Thomas W. Miller of Wilming-ton, Delaware. Then, the day after Miller is appointed . . . . I find Sena-tor Moses in Tom Miller's office . . . . asking about the Bosch case . . . . next, in May 1921, two months after I left the office, we find Gaston Means is put in on the investigation of the Bosch Magneto case. I refer now to Gaston Means' testimony in which he admits he had been a German spy for six years; that he got $1,000 a week from Boy-ed; that he had been tried for murder in Carolina . . . . . and he himself says that Senator Moses put him in charge of the Bosch case . . . then we find that they must have a lawyer to take charge of this case, and whom do they select but John Crim, spelled English C-r-i-m but in German K-r-i-m . . . . Who is John Crim? During the war he was counsel for Hays, Kaufman and Lindheim, the counsel for the German Embassy, two mem-bers of which firm I sent to State's Prison. He was counsel for Hans Tauscher, who tried to blow up the Welland Canal, and be was counsel for the German who tried to put bombs on ships in our harbor, and his entire war service was that of serving German malefactors . . . . . When the war is over he . . . . . is put down in Washington in charge of the prosecu-tion of the officers of the United States Government who seized German property during the war. Thus it goes on; from that time on we find Means and Crim, and Burns in charge of the proceedings; we find Means reporting to Jesse Smith of Attorney General Daugherty's staff; we find Bosch now hiring another man, Thomas Felder, who is Daugherty's ward man, who since was convicted and is dead; Means since convicted of defrauding the United States Government and bribing its officers . . . . . Later we find Miller convicted and sent to Atlanta Prison for being an employe of the Germans in this country., Poor Tom Miller, a decent clean boy ..... a beautiful clean record in the war, and then this bunch picked him, because he was a weakling, and then corrupted him with German funds-for what? For getting behind their movement to recover not only the Bosch Magneto but to recover the whole six hundred millions of German property. Always remember that this case is only the bellwether of German propaganda. This case was really over in 1928 ..... when they had befogged the mind of Congress, and befogged the issue as the bill was passed which returned every dollar of German property that had been seized during the war ..... Next they concocted the scheme of indicting me in the Chemical Foundation case . . . . I went down there and Mr. Crim, this counsel for the German Embassy, counsel for Hans Tauscher, counsel for explosive bombs, counsel for members of the bar convicted for defrauding the Government during the war, and German spies, opened the door of the United States Grand jury room and said, 'Please give me your books,' and I said, 'No sir, I will walk in with them' and . . . . . when I got in I offered to waive all immunity and I asked Mr. Crim to turn right around and explain to the Grand jury who he was and what he was doing there and what his former record was, and how this was not a case of the United States against Garvan, but that it was a case of Germany against the United States, and I asked the Grand jury . . . . . to make Mr. Crim tell them who he was and what he was doing there. And that was the last of Crim in the Chemical Foundation case or in the Bosch case ..... Another thing that has made this thing bum into my mind . . . . is the fact that the man who sat in at the begin-ning of these charges in 1919 (M. E. Lewis) now is able to make this charge in this complaint under a salary of $1,000 per month drawn from the German funds in direct viola-tion of the Penal Law of the United States ..... America is entitled to know that the propaganda for the return of German property which seemed to necessitate bespattering public officials . . . . . was founded upon misstate-ment of facts and false charges, and I want to ask that at the conclusion of this hearing Mr. Lewis stand on his feet and say what he had in his heart and mind when he made those charges, and to ask me any questions under the sun, because now, at last I see him face to face ..... I wanted to prove this whole historical picture. I wanted to call Senator Moses before you and Merton E. Lewis and Otto Heins and Robert Bosch . . . . . and I wanted to show you how the two Bosch brothers in Germany, Robert, the head of this concern, with his powers of attorney from twenty or fifty other big concerns in Germany, and Carl . . . . .the head of the chemical cartel of the world, joined forces . . . . . and show you the whole historical picture which came to a close with the successful return of German property ..... I would like to insert in the record from Means' own testimony the fact that he admits that Senator Moses obtained his appointment on the Bosch case; . . . they published across the country that a conspiracy bad been established . . . and then came the tie-up with Hearst . . . and the great publications in his office where you will find all the private papers of the Attorney General's office and the Alien Property Custodian's office . . . The pressure of the government of Germany which had bought Attorney General Daugherty and Tom Miller . . . those are the things that burn this case into my mind . . . they obtained the appointment of Mr. Lewis as Attorney General . . . I particularly want to put into the record letters from Senator Moses, from his office rather, Mrs. Gold to Mr. Bennett, showing his control of the Bosch Magneto case and showing the linking of it together with the fight against our building up the chemical industry ..... All that time the Attorney General of the United States, Daugherty, and the Alien Property Custodian, Thomas Miller, were in the employ and pay of German people and had $50,000 worth of U. S. Government bonds banded them and put in their pockets by whom—Go back go back, go back—by John T. King, the $15,000 representative who died three days before he could be tried Some of you saw the other day that Senator Moses had appointed Otto Kahn as treasurer for the election of new Senators. You did not associate the fact that his friend and partner, Warburg, is the head and front of the American interest in the American Interessen Gemeinschaft, in its attempt to destroy our chemical industry, and that there is a tariff pending in the U. S. Senate, and that the same question is left open, and that the same Pickrell and the same agents that worked in this case, are working around the corridors of the Senate today. The endeavor was that Kahn would furnish the money for the election of the Senators who would vote upon the question of American valuation or foreign valuation. German propaganda again eating into the vital problem of the life or death of the second greatest industry of the country today, the chemical industry. It is never a dead issue. Peace? There is no Peace. Always the fight goes on for the supremacy in the chemical industry because it is the keystone to the safety of the-United States or of any country in the world today. Your rules, your statutes, your Bosch case are only appendages, they are only part of a great, great, struggle of Germany to recover the position of throttling chemical development and of domniating over the entire world the development of the chemical industry, which is the secret of industrial prosperity and the secret of military prosperity, and the secret of the peace and happiness and health of the nation, that is why I put into this record a bit of the historical picture because you will find the same bunch down in Washington, you will find Bennett in Washington, you will find Herman Metz, you will find Pickrell, you will find the same bunch working from the same offices, with the same sources of money, using every contention possible to befog the minds of Congress, which is charged with the protection of this country in its industries and in its military equipment. That is about all I think of. Merton E. Lewis, after an unsuccessful effort to have Garvan's entire statement stricken from the record, began a rambling discourse on the circumstances which he said led to his original association with the Bosch interest, and to his later appointment as a special assistant at $10,000, a year to prosecute the case against Garvan and Palmer. Garvan continued to torment Lewis during the latter's attempt to explain away the charges; at one point Garvan demanded that Lewis cross-examine him on the alleged conspiracy: Now is the opportunity, if there is any question lurking in any man's mind, why for God's sake, let him speak up and ask me questions . . . I don't care how far astray or how personal or how anything else the questions are, but ask them of me now. Mr. Lewis apparently did not choose to ask Garvan a single question. He did not care for the way Garvan answered questions. So Mr. Garvan, the defendant, finally asked Mr. Lewis the prosecutor: I understand you said that neither Attorney General Sargent, nor his assistant. Mr. Letts, ever told you you were being paid by the Germans? MR. LEWIS: I don't think they did at that time. I learned of it of course, when a check came to me ..... Mr. Garvan later put into the record a letter describing how the plans for recovering German properties were progressing. This was written by Harvey T. Andrews, agent of the Bosch interests, in July 1922 to one of his employers in Germany. It stated, in part: The work entailed on my office in the disentangling of the German property proposition has entailed profound and constant attention. Sundays, nights, holidays and every day have been all alike since you left . . . It appears at the present time as if I was among the few who really bad the right angle on this matter . . . The recog-nition on the part of the Administration of the fundamental principles is due largely to my efforts as well as to my connections, and it would be futile for me to attempt to explain how, where and through what agencies I succeeded in getting it done . . . I have done all that my thirty-five years of practical knowledge of political affairs in this country induced me to do in order to win . . . Have a little patience and everything will be much better than you anticipated. This astounding document was sworn to by Mr. Garvan on Jan, 22, 1930, and was then made a part of the record of the federal court at Boston, whereupon Attorney General Mitchell promptly announced that the suit was dismissed because no wrongdoing had been shown on the part of Mr. Palmer or Mr. Garvan or any of the other officials accused in the complaint of conspiracy in the seizure and sale of the Bosch property. If the government had won this suit the chief beneficiaries would have been Robert Bosch and his associates. Yet to this day, mud continues to be thrown at the memory of Francis P. Garvan on the basis of those fake charges first made and broadcast by some of Harding's gang. Inevitably as the pattern is unfolded the story now goes back still further-it goes back to the letter written in 1916 by the Bayer Company's Dr. Hugo Schweitzer to Ambassador von Bernstorff, in which that celebrated head of German espionage spoke of electing a President of the United States whose party politics were more in harmony with the cause of the German dye trust. The story goes back also to Herman A. Metz, the dyed-in-the-wool Tammany leader and life-long Democrat who suddenly switched his allegiance to the Republican Party. In 1930, while Metz was explaining to the Senate Lobby his campaign contributions to Senator King, he also gave his reasons for having deserted the Democrats in 1919. Senator Caraway developed this in the following testimony: SENATOR CARAWAY: You came to Congress as a Democrat? MR. METZ: Yes Sir. SENATOR CARAWAY: I believe you were one of the Harding Democrats? A Democrat that supported Mr. Harding? MR. METZ: Well, I contributed to the Harding campaign fund afterward; yes, sir. I did not like the treatment some of the Democrats gave me. (Metz' dislike for the treatment that some of the Democrats gave him and his I.G. friends is understandable. So it is permissible to conclude that he bolted the Democrats for a more sympathetic party.) However, according to Metz his "people abroad" did not altogether approve of his holding public office because they thought that it interfered with his business activities; or at least so he once informed a Senate Committee. Possibly the I.G. considered Metz more useful from the less conspicuous vantage point as a business man and philanthropist who would be free to contribute campaign gifts where they would do the most good. Toward the close of the postwar decade President Herbert Hoover wrote to his good friend, Dr. William O. Thompson, president emeritus of Ohio State University, a plaintive discourse upon the problems confronting a chief executive of the nation. In that letter, dated Jan. 10, 1930, President Hoover said in part: We can and must, however, greatly increase the production of truth, and we must know the truth, before the grave interest of 120,000,000 people is involved in government policies. The author has had Mr. Hoover's quaintly expressed goal constantly in mind for many years; he believes it to be particularly applicable to this chapter. pps. 132-154 --[cont]-- Aloha, He'Ping, Om, Shalom, Salaam. Em Hotep, Peace Be, All My Relations. Omnia Bona Bonis, Adieu, Adios, Aloha. Amen. 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