Upon the report of the Bureau of Investigation, I directed the seizure of all the stock, except that held by Beitter, and appointed a full board of directors to represent me in the company. My representatives learned that the course of business of the company had been to secure seed from German growers and to parcel this out to farmers in the vicinity of Bay City, Mich., who grew the roots under contracts for the purchase of the product in the fall. The German management had bought out a company in Bay City, Mich., and had renamed it the Franck Chicory Co. In order to control the disposition of the finished product, it had likewise purchased the controlling interest in a vending company in New York City, and it now has a complete organization which handles the growing, harvesting, curing, grinding, packing, and selling of the product. The wholesale disposal of the product is through the main corporation, Heinr. Franck Sons (Inc.). The retail of package goods is through the corporation referred to, George Jos. Scheuer (Inc.). The chicory root produced from the German seed is the so-called short root. There are two other grades, known as the long and half long but neither of these is available for the purpose of chicory production, for the reason that the farmer is unwilling to grow them, because of the difficulty of harvesting. Only the short root can be taken from the ground with a reasonable expenditure of time and labor, and if any portion of the root be permitted to remain, the next year sees the spreading of chicory throughout the field, to the great disturbance of other crops. In this enterprise there was the same propaganda to the effect that none but Germans could grow and supply the proper seed, but my directors undertook to obtain an American supply. They found that the needs of the 1919 planting could be met only by importation of seed, and after a most cautious and careful investigation by the War Trade Board procured a license to import the necessary quantity through Switzerland. In order that the industry might not be dependent upon German supplies, however, they interviewed American seedsmen, and have made arrangements for the growing of seed for the 1920 planting from selected 1918 roots. These roots are to be planted in widely separated sections of the United States, with the idea that different climatic conditions may be found, and the directors are sure that the seed can be grown here just as efficiently and successfully as in Germany. The success of this enterprise will mean that one more German myth has been exploded and that one more American industry has been made independent of German supplies. The business of the company has been broadening from year to year and there is a market for all that the company can produce. The transfer of the property by the approaching sale will put this important food-producing company into genuine American hands, freed from the ties of the former German owners. The enemy interest is 89.70 per cent. Other concerns manufacturing food products which have been taken over by the Alien Property Custodian as follows: Fahlberg Saccharine Works of America, manufacturers of saccharine___ 100 50 97 50 CHAPTER XI. BUREAU OF INVESTIGATION. FRANCIS P. GARVAN, Director. January 1, 1918, 11,170 reports of property held for the account of an enemy or ally of an enemy had been filed in the office of the Alien Property Custodian. These had been filed voluntarily and had not necessitated prior action on the part of the Bureau of Investigation. This bureau had, however, examined each one of these reports and classified them as: 1. Cases in which a trust should be opened and the property demanded by the Custodian. 2. Cases in which a further investigation should be made before affirmative action taken on the report. 3. Cases in which no action should be taken by the Custodian for the reason that the party named in the report as an enemy did not come within the provisions of section 2 of the trading with the enemy act. While this classification was being made, each report was examined for the purpose of determining whether it contained any information upon which a further additional report could be required. The work above outlined occupied the attention of this bureau during its organization period. Immediately following this period the work of the bureau was divided as follows: 1. Examination of reports for the purposes above outlined. 2. The handling of all general correspondence: All mail received at the office of the Custodian which did not refer to a trust in process of administration, or which did not call for a ruling strictly within the province of the Bureau of Law was referred to this bureau. 3. Publicity: This was not confined to the publication of articles concerning particular cases in which the Custodian had taken action, but consisted of a general education of the public to the existence, operation and requirements of the trading with the enemy act. 4. Specific investigations: (a) Special field investigations carried on under the direction of the Washington office of the bureau did not compare in number or results with similar work of the New York office. Such cases, however, were not infrequent, and the examination and investigation in such was performed by investigators from the Washington office. (b) As a basis for the investigation work of the force in the New York office, which work was carried on under the personal direction of the director of the bureau, the Washington office accumulated and digested the data upon which a majority of these investigations were based. 5. Files: Under this head is included not alone the care of the physical files, but the accumulation and proper arrangement of data from all available sources and upon which all the other activities of the bureau are based. Returning to the classification of the work of the bureau, it may be of interest to give a more detailed statement concerning the same: 1. EXAMINATION OF REPORTS. As above stated, on January 1, 1918, 11,170 reports had been received. These had been filed largely from the large financial and commercial districts in the East and Middle West, where the provisions of the trading-with-the-enemy act had received a greater or less prominence in the newspapers. Very few reports had been received from the South, Northwest, and the Western States. The number of reports handled and classified by the bureau during the year was 22,650, or an average of 1,800 per month. Even as late as the date of the signing of the armistice new reports were being received at the rate of 55 a day and there had been but a slight decrease in this average receipt on January 1, 1919. Each one of the reports have been examined and classified as above stated, and the information contained therein collated for use in the files. 2. CORRESPONDENCE. It is not possible to state definitely how many of the reports received during the year were the result of the work of the correspondence section, but there would be no exaggeration in stating that at least two-thirds of them were thus secured. The record of correspondence handled prior to May 28 is not sufficiently accurate to give definite figures, but since May 28, 11,871 correspondence files have been opened and developed. The development of these files would necessitate on the average of four letters being written by the members of the force in that section. More than 50,000 letters have thus been mailed from this bureau since May 28, 1918, and this number is confined strictly to the cases passing through the correspondence section. 3. PUBLICITY. One of the chief difficulties encountered by the Alien Property Custodian's office at the beginning of its work was the general lack of knowledge throughout the country of the provisions of the trading with the enemy act, especially the provisions defining the duties of the alien property custodian. The ignorance of the provisions of the act were widespread and was not confined to any particular class or group. Consequently, one of the first things to be done, if the work of the Alien Property Custodian's office was to be successful, was to acquaint the people of the country, especially those who might be affected by the act, with all of its provisions, so that there could be no excuse for not making the necessary reports to this office. A comprehensive campaign of education was started, the object of which was to reach as many interested persons as possible with a minimum expense to the Government. Before inaugurating this campaign, reports of enemy-owned money or property had come into the Alien Property Custodian's office in a fairly steady stream until something like 13,000 had been received. Then the flow appeared to subside. As a result of this educational campaign, more than 20,000 additional reports of enemy-owned money and property were sent to the Alien Property Custodian's office. As in all campaigns of education the newspapers of the country are primary factors. The newspaper editors of the country joined in the task of acquainting the people of the country with the provisions of the trading with the enemy act in so hearty and generous a manner that I feel justified in saying that much of the success the Alien Property Custodian's office has had is in a large measure due to the unselfish and patriotic support given to its work by the press of the country. The newspaper editors joined in this work with enthusiasm. Likewise the magazines, trade papers and other publications joined in the work of this office in a hearty and substantial manner. The Alien Property Custodian thanks the press of the country for the assistance given to him in his work. In addition to the work of the press of the country an intensive educational campaign was started, the object of which was to reach in an intimate way all persons who might possibly have some knowledge as to the location of money and property of enemy character. This intensive campaign was centered upon influential groups such as lawyers, bankers, etc. Acting on the theory that the lawyers of the country would have, perhaps more than any other group, considerable first-hand informa |