these German activities for some weeks. It is
reported today, confirming The Herald dispatch of last night, that the
plants for which negotiations are on include that of Charles M. Schwab
at Bethlehem, Penn.; the Remington small arms works at Hartford,
Conn., and the Cramp works at Philadelphia, which, it is said, Schwab
is about to acquire; the Metallic Cartridge Company, the Remington
Company, and other munition and small arms works.

Included in the Schwab plant holdings are the Fore River Shipbuilding
Company, Massachusetts, and the Union Iron Works, San Francisco, where
it is reported parts of submarines are being made for English
contract, shipment being made through Canada.

This new move of the Germans involves the outlay of hundreds of
millions, a gigantic financial operation in the face of war needs and
conditions. It is one of the most sensational developments of the
present conflict in connection with the United States. Its
consummation inevitably would lead this country into serious
disagreement, if not conflict, with Great Britain and the Allies.

The latter will demand the fulfillment of their contracts with these
concerns. The German move is to prevent this delivery of munitions of
war. With the consummation of the purchases, the German owners could
refuse to fill these contracts. They will not fear suits for broken
contracts.

The whole matter is fraught with such possibilities of danger to this
country that Attorney General Gregory and the experts of the
Department of Justice have taken up the question with a view to
interposing legal obstacles. It may become necessary, it was suggested
today, to prevent such a sale on the grounds of public welfare because
of strained relations with Germany.

Secretary McAdoo will not disclose who are the agents for the German
interests seeking to purchase the munitions plants, or who are the
financial backers. The Secret Service men are believed to know these
details, having been on the investigation for three weeks. Rich
Germans in the United States are believed to be interested.

Charles M. Schwab, head of the Bethlehem Company, came here two weeks
ago in response to an urgent summons. He saw Secretary McAdoo,
Secretary Daniels, and other officials. At that time it was given out
that he was conferring as to details of supplies to be furnished this
Government under contracts for new warship construction about to be
awarded. It is now understood that Secretary