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  • Treason's Peace - German Dyes and American Dupes by Howard Watson Ambruster, 1947 P1

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    The author is deeply indebted to a number of others whose assistance and support have made possible the preparation uf this book. He pays grateful tribute also to the fact that, as strangers to him, Jack Shuttleworth and Jack Morris came forward from the throng who turned away.

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    Treason’s Peace – German Dyes and American Dupes By Howard Watson Ambruster, 1947 P1

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    The author is deeply indebted to a number of others whose assistance and support have made possible the preparation uf this book. He pays grateful tribute also to the fact that, as strangers to him, Jack Shuttleworth and Jack Morris came forward from the throng who turned away.

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    Attribution Non-Commercial (BY-NC)
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    143 Ansichten106 Seiten

    Treason's Peace - German Dyes and American Dupes by Howard Watson Ambruster, 1947 P1

    Hochgeladen von

    skalpsolo
    The author is deeply indebted to a number of others whose assistance and support have made possible the preparation uf this book. He pays grateful tribute also to the fact that, as strangers to him, Jack Shuttleworth and Jack Morris came forward from the throng who turned away.

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    TREASON’S PEACE HOWARD WATSON AMBRUSTER TREASON’S PEACE GERMAN DYES & AMERICAN DUPES [A CROSSROADS PRESS BOOK NEW YORK: THE BEECHHURST PRESS coprnucir 1947 vrasr nvr apn. 1947 sec0ND PROSTING APRA 147 A NOTE OF APPRECIATION AND GRATITUDE ‘The material for this volume would neither have been assembled nor recorded here except jor the loyalty and sacrifice of Uroula Ambruster, whose unswerving support despite years of hardship, ‘mada it possible for both of us to carry on. ‘The author is deeply indebted to a number of others whose ‘assistance and support have made possible the preparation of this book. To name a few of these would be unfair to the others: to name ell of those who have aided me would result in disaster to those to whom I should not, knowingly, bring disaster. But 1 ‘would be lacking in candor if did nat express here my profound ‘appreciation to Jack Morris, to whose untiring efforts tts final publication is largely due, and to Jack Shuttleworth, for his col- leboration in the preparation ofthis colume. I pay grateful tribute ‘also to the fact that, az strangers to me, Jack Shuttleworth and Tack Morris came forward from the throng tho turned eway. “rm avruon Contents ern Profane The Pattern of Farben vi 1 Graftmand America Unarmed : UW. Congressman Metz of the Bleeding Heart 1% ML The Lost Provinces Regained 33 1V. New Conquests of America’s Industry 0 V. Fatben’s Royal Family 69, Vi. “Tarnung” The Magic Hood [which renders the wearer invisible} 89 VU False Fronts Become Bold 107, Vill. Republicans—Open the Door ge 1X, Denocrats—Facing Both Ways 155 X. Senators and CongressmenWho Never Knew 18 Xi, Two Drug Laws-and Two Wars rot ‘XIE Patent Medicines—and Freedom of the Press 228 XII Good Neighbors, and Bad 4 XIV. Again, Espionage and Sabotage 354 XY. Propaganda for Wall Street and Washington 286 XVL_ Counter Propaganda and The Lobby 305, ‘XVIL Alibis and Excuses 313 Xvi. No Sacrifice on the Altar of Moloch 385 ‘XIX, Behind America’s Iron Curtain 350 ‘XX. Plans for Peace—In Time of War 3B XXL Another Farben Peace 395, Canclasion Democracy at Its Worst, and At Its Best 414 Arrenie “7 cat ast CAPTAIN WATSON AMBRUSTER IL, USA, AIR FORCE WATSON ITT AND MARGARET UNSULA, ‘TMOSH OF THEIR GENERATION, THIS STORY The Pattern of Farben THE HUGE INTERNATIONAL chemical combine and cartel leader thet is known today as I. G. Farben had its begioning some seventy-five years ago, with the founding in Germany of six small coal-tar dye companies. By 1899 these six companies had grown into the ominous-sound- fog INTERESSEN GEMEINSCHAFT FARBENINDUSTRIE AKTIENGESELLSCHAFT, of FRANKFORT am MAIN, which translated literally, means “community of interests of the dye manufacturing companies” 1.G. Farben is usually discussed as a huge German cartel which ‘controls chemical industries throughout the world and fram which profits dow back to the headquarters in Fraakgort. Farben, how ever, is no mere industrial enterprise conducted by Germans for the extraction of profits at home and abroad, Rather, its and must bbe recognized as a cabalistic organization which, through foreign subsidiaries end by secret tie-ups, operates a fer fung and highly ficient expionage machine—the ultimate purpose being world ‘conguest—and a world super-state directed by Farben. i PREFACE Perhaps the chief distinguishing characteristic ofthis vast organ- ‘ation is the definite patter to which itholds. From its beginning the Fasben pattern—based upon intensive research wedded to ap- plied science, plus a eynical disbelief inthe existence of social, e00- nomic, or political morality—has never varied its rhythm appears changeless. ‘This book i the story ofthe Farben patternas it has appeared {nthe United States, and a glimpse of its extent in Latin America, isa story ofthe shadowy designs that repeatedly have come up threngh the fabric of our industria, social, and political life ‘Viewed over a long period of years it appears as an interlocking design of propaganda, espionage, sabotage, and corruption Fragments ofthis pattern have been revealed tothe public from time to time in press reports of offical investigations and court actions here in the United States. These detached items, however, could mean little to the public. To understand their significance—as « part of a never ending menace to world peace—the activities of Farben must be traced from the beginning, and chronicled in some ‘kind of sequence. ‘The events in tis tory are not set forth in chronological order. Rather, they are grouped! according to subject matter-—to bring out the many designs of the patter, and to make clear each phase of the menace that is Farben, Space doesnot permit a history of this nebulous structure othe pat it has played in German po ‘aking Hitler Chancellor, and providing money and munitions for his armies. For more than forty years the author, through busines, profes: sional and officiel contacts has followed the activities of this colos- sal cartel structure and its predecessors, the “Big Six” dyestaft ‘companies. He has followed the establishment of thefr chemical cartels in this country prior to the Ost World War; the partial Aestruction of those monopolies during that war; andthe rebuild- jing, in the next two decades, of a far stronger and more sinister framework inside our inlitarily strategic industries, our agencies ‘of public opinion, and the very fabric of government itself He believes that the story told here shows clearly that Farben was largely responsible for our spiritual and physical disarmament ‘when the present war boganjust as the Big Six was largely respon- sible for our unarmed condition at the start of the first World War. Ho believes also, that the story shows what we mey expect from Farben during the peace. ‘tis well to say now that every statement of fact inthis book is supported by irrefutable evidence in the form of offtal documents, court records, or private papers. From these the reader may draw his own conclusions regarding the guilt or gullbiity—or both—of some of those American citizens who find mention in these pages. Be itadmitted that unhappy instances of comuption, double deal tng and cupidity appear and reappear ia our history from the earliest days ofthis republic and will coatinue-yet a distinction iust be made between ordinary violations of our erimina statutes and those committed, or secretly instigated, by an enemy wich is obsessod with the lust of enslaving this nation. ‘his, thea, is the patter of Farben CHAPTER 1 Graft—and America Unarmed ON A STORMY evening eatly in 1912, a raiding party armed with a search warrant proceeded to ane ofthe fashionable residential strats of Phila- Aeiphia, broke down the docr and ransacked the upertment of one ‘Alfred J. Keppelmann. ‘Mr. Keppelmann was the executive in charge of the Philadelphia ofice of the American Bayer Company, owned and directed by ‘ne of the leading German dyestuf manufacturers. The local office of the Bayer company was at 9 North Water Street, but the young, attomey who Ted the raiding party had been tipped off that Mr. Keppelmann kept his mare important business correspondence in his home. The tip was good one and resulted ina rich yield of evidences ‘of bribery and fraud engaged in by Mr. Keppelmann over a peviod of yoars. “Thus was launched an exposé of commercial coxrupton tht i without parallel inthe history of legitimate business fn the United States. But that raid wes the ist of a long series of ineffectual ‘lows atthe German-controlled chemical cartels that for seventy- five years have operated within our bordersineffectual because they have not yet destrayed the corrupt influence and power of these monopolies, whose purpose, since their inception, has been to stifle our military effectiveness and to strongthen the resources of the Fatherland, ‘The leading German chemical companies before the frst World ‘War were known throughout the world asthe Big Six. Direct prede- cessors of the gigantic I. G. Farbenindustrie, in which they were Tater merged, these six companies wore: 1 Badische Anilin und Sodafabrik. (known es Badische) 2. Farbenfabriken vorm, Fridr, Bayer & Co. (Inown as Bayer or Elberfeld) 8. Aktiengesellschaft fir Aninfabrikation. (Inown as the Berlin Company) 4. Farbwerke vorm. Meister Lucius und Briining. (mown as the Hoechst Co.) 5. Leopold Cassella C. m. b. H. ia Frankfurt. (Known as Cassell) 6, Kalle & Company. (Known as Kalle) All ofthese companies made dyestuffs and the intermediates from which coal-tar dyes are produced; several of them also produced pharmaceutical products from coal-tar intermediates and other ‘chemical bases, ‘There wore mumorous other smaller Gerinan dyestuf producers but these six concerns, with several hundred mallion dollars in sssts, united early in the centary in two cartels, dominated the coal-tar industry in Germany, and controlled the world’s markets for dye stalls. In America, where business was a strictly private afar, and all ttempts at goverment supervision were fought tooth and nail by cour ragged individuslists, the Big Six found fertile ground for thelr “peaceful penetration.” Here ia America with the cooperation of the German government, they established their agencies, and pursued a ruthless policy of cconemie strangulation, with the re- suit thet upon our entry into World War I, America’s organic chem- {eal industry, the very Mfeblood of modern warfare, consisted of litle more than a series of small assembly plants. ‘The completeness with which we failed to develop this mili TREASON'S PEACE 3 carly strategic industry attests the determination of purpose and the typical German thoroughness with which the representatives ‘of Kaltur caried out, within our borders, their coordination of industry withthe forces of war. "The carly history ofthese ax German companies takes in the bisth ofthe commercial development of dyes made from coal ta. ‘Three generations ago these dyes bogan to replace many of the natural or vegetable dyes. However, it was not a German, but a {young English chemist, Wiliam H. Perkin, who discovered in 1856 that a usable purple, of mauve color, could be produced fom tlie, the ot-like product distilled fom coal ta, which had been exiginaly in 1826, History records that young Perkin was not attempting to make a dyestulf at the tne, but was experimenting, unsuecessfully, with the aniline inom attempt to produce syntbetic quinine. Some 70 years later, one of Farben's chemists succeeded in doing what Perkia had set out to do and produced the coal-tar derivative now as Atabrine which today, as a substitute for quinine, oo capies such a vital place ia our control of malaria. Tt was the Germans, however, who most industriously followed up Perkin's discovery of an aniline dye, Intensive research was fncouraged at German universities, and by subsidies from the German government. The late Congresszian Nicholas Longworth told ofa conversation he had with a distinguished American chem- ist who bad graduated from the University of Heidelberg many years before, and who told Longworth that when he said goodbye to his head professor he asked why it was that so much of the German research workin chemistry waa the development of coal tar dyes. The professors so engaged were receiving higher selaries than thets colleagues, and the industries wre receiving govern- sent bonuses. The German professor replied, “Young men, some day this work will save the Fatherland” In light of mote recent ‘events; that professor can hardly be considered a good. prophet, but his remark indicated the carly German vision of world suprem- sey in selence~-out of which the Farben pattern of world conquest ‘was to emerge. ‘The objectives of the origial German dye cartels in the United States were by no means confined to obstructing our development of the dye industry. It was of utmost importance to forestall th establishment of any primary phase of the coal-tar industry which sight make this country sadependent of Germany for coa-tarin- termediate, and for oer chemical products used in masking dyes uring peace, or explosives and munitions during war. In the carly development of the dye industry in Germany, the high cost of individual dyes was due to the large quantities of cetain by- products which had no valve but which bad to be extracted fram the coal ta in order to produce the dyes. And the great variety of colors was de largely tothe continuous research devoted to the puoltable utilization ofthese by-products. Despite this research, however, tho stock piles ached enormous size. Then, carly in this century the Germans realized the military significance ofthe coal tar product, trnitrotolual (TNT) which could readily be made from the by-products. Thereupon, research to produce certain new cxlors suddenly ceased, and the stock piles were allowed to ‘accumulate for the war that was to come. ‘The two Big Six cartels appoared perfectly willing that the few American manufacturers who were trying to make dyes should continue thelr struggle to-do so, provicing they secured the bull of their iatermediates from Germany. They laughed at this compe- tition, but they were systematic in thei price eutting and utterly ruthless in thee determination that a coal-ar industry which could ‘quickly be tumed from dyes to manitions should nct exist in the United States. “Throughout this period, while our coal-tar industries languished ‘or were still-bom wienever attempts were made to start them, it is estimated that we were letting a billion dollars worth of coal gs goto waste annually through the chimneys of the old fashioned beehive ovens in which substantially ll f our eoke was then mado. ‘The gas went to waste because we had no coal-tar dye industry to make it profitable ‘At one time, when a group of three of the largest Ame: manufacturers of heavy chemicals decided to start the production of aniline oll so that ove feeble dye industry would not be totally at the mercy of the Germans, a special emissary of the Big Six ferme tthe United States with the impudent demand that produe- tion of the oil be stopped, and made the equally impudent offer TREASON'S PEACE 5 that te cartels would repay the Americans for such expenditures as had been incunced \ “To protect the domestic producers from the price slashing on aniline that followed the refusal of the Americans to shut up shop, Gongress placed 10 pereent duty on aniline oll. The Big Six, however, retaliated by dropping the price on aniline far below any possible cost of production inthe United States ‘Originally the German dyes were exported to the United States rough houses which handled a variety of imported products. Later, exclusive selling agencies or branch houses were established bere by each ofthe Big Six. These branches and agencies had their rnain ofce in New York City, and maintained branches in New England, Philadelphia and other centers where dyes were con- sumed in quantities by testi, leather, paper and printing ink ‘manofacturers “The author's frst contact with these powerful German fms was in the early 1900, while working on the original production of rayon, or artifical il, as Tt was then knowa, in a plant located inthe suburbs of Philadelphia, Continuous experimental work was requited in order fo determine which dyes were suitable for the new textile yarn, ancl we received moch assistance and many fine samples of dyes from the local agents of the Big Six, Our interest in dyes was confined to samples and laboratory experiments. The subject of balk purchases did not arse, and the matter of graft, of which [had hoard a great deal in my visits to commercial dyeing {slablishments, ever arose. A few years ater, however, Icomered & textile mil owner, « most fortright citizen with whom 1 had been doing busines, and asked him why he tolerated the graft which the German dyestlf companies were handing out to the boss dyers who used their products. It was common knowledge, T told this ill owner, that this brtbery was what made it practically iropossible forthe few American makers of dyestus to compete with the Cermans. My friend's reply was characteristic of the ejected attitude ofthe men who were paying the bills for German Ayes. Withont pretending to quote his exact words, hs reply was: "Timow perfectly well that my boss dyer receives bribe money on every ounce of dyestuf that goes into the products whieh my mill tums out. However, st happens that we are making money on the 6 TREASON'S PRAGE work this man is doing. Now, if I Bred him, at Tam fustiied in doing, I would have to get another boss dyer. I can't dye these fabrics mysel, and the new man would also take bribes from the German companies. Competent dyers are hard to get, but oad or bad, they all aovept the graft. So why make the change? We mill owners al know that tis thing exists, but each of us feels that he is helpless to do anything about it without risking ruin.” Not long after this conversation, 1 was Invited to have hunch with an executive of one ofthe American branches ofthe Dig Six This man was a native born American whom I had known when he was engaged in another branch of the chemical industy. Tn the past, Thad found him a reputable business man. During that luncheon he offered me a position with the German company he was representing, and quite casually mentioned that ome of my atios would be to handle the Saturday pay-offs of bribe money to the boss dyers, He remonstrated with me when I declined. "Its customary” he protested. “Everyone inthe industry does i, very. ‘one knows it is done end no ane is objecting except a few small concerns that doa't count~s0 why’ be squeamish about i?” T have recounted these personal experiences to illustrate the corruption, and the callous aoquiescence tof through which the ‘Germans maintained their impregnable monopoly inthe Amesiean

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