nish immediately more complete and detailed information.

Of the efforts to obtain control of the munitions companies, The Providence Journal of June 9, 1915, reported:

Acting under the personal instructions of the German Ambassador, several German bankers of New York have been working together for the last week on preliminary negotiations for the purchase of every large plant they can lay their hands on which is now engaged in turning out munitions of war for the Allies.

Count von Bernstorff, Dr. Dernburg, and two well-known German bankers held a conference at the German Embassy in Washington on Tuesday, June 1. At that conference the Ambassador outlined in detail instructions he had received the day before from Berlin to proceed with this propaganda, and he declared to the three men there present that his Government considered the success of the plan as of vital importance, superseding every other phase of the war situation.

The bankers at once returned to New York, and at a meeting next day with Captain Boy-Ed and several other men at the German Club outlined their plan of campaign.

For months past the German Ambassador has been in possession of a list of factories all over the country engaged in turning out munitions of war for the Allies. Last Saturday concerted movement was begun toward securing a majority control of many of these plants.

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When one of the bankers at the conference in Washington asked the Ambassador if he had any conception of the magnitude of the financial problems involved in the scheme he replied that his Government was fully prepared to pay everything necessary, and repeated that the fate of the empire might rest on the success or failure of the plan. He then added these words:

"There is no limit, gentlemen, to the amount of money available."

The activities of the representatives of Count von Bernstorff in this matter

have already brought them up to the point of negotiation, or attempted negotiation, with the Fore River Shipbuilding Company, the Remington Arms Company, the Bethlehem Steel Company, and the Union Metallic Cartridge Company.

Government officials, when notified of this new propaganda yesterday, were a unit in declaring it was impossible to believe that such a scheme could be carried through successfully. In the first place, they pointed out that activity of this kind would be a direct violation of the Sherman act, and, secondly, a case of conspiracy would lie against individuals attempting such a movement for wholesale violation of contracts, which would become necessary in order to carry the plan to its successful conclusion.

The moment the German agents in New York began to disclose their purpose, several cunning individuals who have had some slight connection with the contracts for supplying the Allies with various materials have deliberately put themselves in the path of these agents under the pretext that they already had contracts, or were about to be given contracts, and have already mulcted the German Government of many thousands of dollars.

In two specific cases men have talked of having contracts for picric acid-the manufacture of which necessitates the most skilled training, with most expensive and complicated machinery, and which is only being attempted in four places in this country, and were promptly paid off, on their pledge that they would violate these alleged agreements. One of these deals was made in the Waldorf-Astoria Hotel last Saturday.

Another case, which is fully authenticated, is that of a Western dealer in horses, who delivered 1,500 horses to the port of New Orleans for the British Government last January. As soon as he ascertained what the German agents were doing, he produced his receipt for delivery of his first and only order, and declared he was now searching for 5,000 horses, in addition, for the British Government. On his pledge to abandon this

search, he was given $2,500 by German agents.

The keen anxiety of the German Govment, acting through the embassy in Washington, to deprive the Allies of any shipments of war materials that they can possibly stop is based on the result of calculations made in Berlin and forwarded to this country two weeks ago, which profess to show that the Allies cannot possibly arm their increasing forces or secure ammunition for their great numbers of large guns from their own resources, and that they must have the help of this country in order to accomplish their purpose. The German representatives also thoroughly believe that without this assistance the Allies cannot continue and complete an aggressive campaign, driving the Kaiser's armies out of Belgium and France.

In THE NEW YORK TIMES of June 9, 1915, appeared the following statement of counter-negotiations to checkmate the German operators in America:

Negotiations for the purchase of arms and ammunition manufactories in this country have been under way for some little time, it is asserted, but so quietly have they been conducted that no hint of them became public until yesterday. Yet, coincident with their disclosure, came yesterday, also, announcement of a contract for the manufacture for the Allies of shrapnel and high explosive shells on the greatest scale yet undertaken by an American corporation, which revealed as could nothing else how carefully these supposedly secret dealings had been discovered, watched, and checkmated by the Allies.

This contract, all but the smallest details of which are said to be settled, is to be taken by the General Electric Company, directors of which admitted that the total involved would be at least $100,000,000 and might run far in excess of this figure. In fact, the order was spoken of as limited more by the capacity of the General Electric's plants than by any restricting order of the Allies.

The significance of this contract does not lie wholly, or even chiefly, in its size,

for the American Locomotive Company recently closed a $65,000,000 contract with the Allies for shells. What is considered of especial note is that less than a week ago an official of the General Electric stated emphatically that his company had not taken any orders and was not negotiating for any despite the fact that for some time a proposal to specialize in war orders had been under consideration. Less than a week ago the company had reached a negative decision and less than a week ago there was no reason to suppose that it would rescind this decision.

J. P. Morgan & Co., fiscal agents for Great Britain and France in the matter of war supplies, then entered the field. Charles Steele, a partner in the banking house, is a Director of the General Electric Company and negotiations went forward rapidly. These were conducted with a secrecy which exceeded that even of the German interests with the other arms and ammunition companies, but there are several factors which, it is known, were of prime importance in effecting the General Electric's change of policy.

In the past much valuable time has been lost in the distribution of orders among a score or so of concerns which have had facilities for making shells, ordnance, and so forth. Competitive bidding for parts of contracts has held back the finished product and successful bidders have frequently been handicapped by inability to obtain necessary machinery.

Now plans for accelerating manufacture in all war lines have been launched by David Lloyd George, the new British Minister of Munitions, and in the shadow of his influence J. P. Morgan & Co. have practically brought to a conclusion plans to centre future war orders in a few great companies, with the General Electric Company as the dominant unit.

The extent to which the banking house used its tremendous influence is problematical, but it is history that Mr. Lloyd George has been bringing all pressure to bear to increase England's supplies, and with them the supplies of the re

maining allies, since British purchasing agents are, to a large extent, looking after the interests of France and Russia, and it may be inferred that the Morgan firm has been as active as possible in carrying out the wishes of the European nations.

Persons in touch with the progress being made in war orders state that the British authorities have become greatly concerned over their supplies of ammunition at hand and in process of manufacture. While orders aggregating many hundreds of millions of dollars have been placed in this country and Canada, deliveries have been disappointing. Canadian plants got to work early in the war, but the delay in ordering supplies in the United States and other neutral countries has seriously affected the efficiency of the allied armies in France and Poland, it is said.

The experience of the American Locomotive Company is typical of the situation. After negotiations which covered several weeks, the company procured a contract which is said to amount to approximately $65,000,000 for shells. During the discussion of terms, and even before, the Locomotive officials were busy buying the necessary lathes and other machinery, but installation of equipment and the training of men could not be done in a few days. The contract was definitely closed six weeks ago, but the company has only begun to turn out the shells at its Richmond plant, and it was said in authoritative quarters that several weeks more would pass before anything like a substantial output would be possible.

The centring of manufacture in a single, or a few, great plants carries the additional and chief advantage to Great Britain and the Allies, that no efforts of Germany can now cut off their ammunition supply. The stoppage of this supply has been one of Germany's chief concerns since the war began, and by embargo propaganda here and by the attempt to create sentiment she has tried to cut down the supplies reaching the Allies from this country.

Well-founded gossip in Wall Street has had it that early rises in the stocks of

munition-making concerns were оссаsioned not so much by the acquisition of war orders as by efforts of German agents quietly to buy up control of these companies in the open market. These devices failing, it is said, orders for ammunition and other supplies have been placed by Germany with no hope of receiving the goods, but merely to clog the channels against the Allies. With the General Electric and other co-operating companies pledged to the Allies this. danger will cease to exist.

The concerns selected to join with the General Electric for what will thus amount practically to a combination of resources for rapid manufacture will be those whose equipment, with a few alterations, can be adapted to the new work.

The General Electric Company, according to a Director, is in a position to begin turning out shells at a high daily rate, and, under present plans, the company will not sublet any of the $100,000,000 order. There are facilities available in the plants at Schenectady, Lynn, Harrison, Pittsfield, and Fort Wayne to carry on the work rapidly and without interfering with the ordinary electrical manufacture now being conducted.

Wall Street offered one of the first evidences that things of moment were occurring in the war supply situation. Bethlehem Steel shot forward 10 points, to 165, a new high record, although Mr. Schwab's company was not mentioned in connection with fresh contracts.

It is believed that when the proposed concentration of munition making occurs the Bethlehem Steel Corporation and other companies which already have booked sufficient contracts to keep them busy for some time will not be included.

Stock of the Studebaker Corporation was in large demand as the result of reports that about $7,000,000 of additional war orders had been taken for artillery wheels, motor trucks, and harness. Tennessee Copper shares were strong after it became known definitely that the concern had arranged with the du Pont Powder Company for an increased monthly supply of sulphuric acid. Toward the close of business stocks generally re