The object of this temporary means of fastening will be explained later. The lateral lines of the "Is-cards" corresponded exactly with those of the ledger-cards, so that anything written, say on the fifth line for example, would be exactly opposite or in juxtaposition to writing on the fifth line of the ledger-cards. The fictitious name of the dyestuff sold would be entered on the ledger-card, together with the price charged and the extension as taken from the sales-sheet; then on the "Is-card" attached to the ledger-card would be entered the correct or trade name of the colour, so that the fictitious name on the ledger-card and the real or trade name of the "Is-card" would be exactly opposite one another.

'The object of the "Is-cards" was primarily for means of record, and they could be detached from the ledger-card at will at any time. Also, if a customer would come to the office and would wish to see how his account stood on the books of the Farbenfabriken Company, the "Is-card" could be quickly detached from the ledger-card and the latter shown to the customer, and he would be none the wiser as to the exact character and name of the goods he was buying.

'I remember one particular dyestuff of which the D . . firm bought a good deal, "Brilliant Black BB." This was a fictitious name given to Naphthylamine Black 4BK. The market price of the latter colour was twenty-one cents, yet, under its fictitious name, D. was paying eighty-five cents a pound, and they used a good deal of it, at least three to five hundred pounds each week. On my order blank I would insert on the first column one keg or barrel, as the case might be, of Brilliant Black BB, in the next column the correct or trade name of the colour, that is, Naphthylamine Black 4BK, so that the shipper would know exactly what to send D., though they would not know the exact nature of the colour they were getting, thinking they were using a high-priced dye when in reality it was a cheap one.

'All these transactions, being typical, would be entered on the "new-thing" sheets, which in time would find their way to Miss Gaul or Mr Keppelman, and the graft to be paid for such fraudulent dealings would be figured out accordingly and paid to the dyer who was countenancing such transactions. I remember Mr McNeil coming to the office on several occasions and the men about the place speculating on the amount of graft he would be paid.

'It was also one of my duties to telephone all orders for goods that we did not have in stock here in Philadelphia to the New York office, and of course, any goods that were ordered that had to be reduced in strength and quality. Also it was

customary to wire to the New York office some of the orders; and this was all done in code, odd and peculiar names being used to designate the various colours and the amount of reductions, so that to the outsider these wires would be absolutely unintelligible. Of course, this was done to keep their methods secret to the outside world.

John Cunning stated that he went first as errand-boy to the Elberfeld Company and gradually worked up until he had charge of the sample room.' He continued:

'In the sample room my duties were to tag the samples, send samples out, take care of samples and, whenever necessary, to re-tag samples. I would file these samples away in my room with the tag on them showing their proper names, and, whenever these samples would be sent to the mills buying those particular dyes, I would take off the tag showing the real name and substitute a tag showing the name and names under which these dyes were sold to this particular mill.

'I also sometimes saw the shipping orders under which the dyestuffs were sent out to the mills. I remember one of these orders was for the carpet mills of the D-s, and under this shipping order Congo-Corinth G was sold to the D-s for a direct red; in other words, everybody knows Congo colours in the dye trade, and they wanted to pretend that this was a direct pink or a direct red. A direct pink or a direct red is almost anything or is apt to be any colour, and no one would know what it was in the trade, but CongoCorinth they would. The price of Congo-Corinth was known and fixed, but for a direct red or pink they could give almost any price.

The foregoing extracts show how the book-keeping was elaborated and perfected to meet the exigencies of. 'peaceful penetration.' It will be of interest now to learn how the bribery payments were calculated and made. But first we may glance at the methods adopted by the Elberfeld Company in order to supply proper vouchers to the New York office and to the home office in Germany. William Voris Gundy stated:

"The Farben people also had in their Philadelphia office, as part of their accounts, what is known as "P" slips. These "P" slips had on them the date the sale was made to a particular mill, the name of the dyestuffs under which the dye was sold, the quantity and the amount due to the dyer

as his graft or commission; and then there was a separate column in which the salesman (or whoever paid this graft) would fill in the date that this graft or commission was paid to the dyer.

"This "P" slip was about nine inches by six inches, white paper, and ruled by lines with different columns into which these things were placed. After the graft was paid to the dyer, this "P" slip, which had previously been given to the salesman in order to pay the right amount of graft to the dyer, would be returned or turned in by the salesman to the Philadelphia office. None of these papers would be seen by the dyers themselves but [they] were only known to the employees of the Farben people. The only one of these papers which would come into the possession of the salesman would be the last paper named-the "P" slip-and this only temporarily, when he would have to turn it in after payment had been made. Sometimes even the "P" slip would not come into the salesman's possession, because Mr Keppelman, the local manager, often made these payments himself to the dyers either at their houses or at a place which had been mutually agreed upon by appointment.

'In the list of firms which I have furnished, where I paid graft to the dyers in person by reason of money furnished me by Mr Keppelman, is the firm of the Gass Dyeing and Finishing Works, which was located on Ontario Street near "F" Street, Kensington. I mention this firm because this is a most notorious example of the injury that can be accomplished by this system of paying graft to the dyers. This firm was finally pushed to the wall and failed a few years ago. The dyer for this firm was a man by the name of McClintock-I think his first name was Harry, but I am not sure. McClintock was not paid all the graft to which he was entitled, according to the prices charged this firm on the bills for dyestuffs furnished them. McClintock was actually paid never less than ten and sometimes fifteen cents or more a pound. According to the size of the bills for dyestuffs sold [to] the Gass Dyeing and Finishing Works, however, McClintock really was entitled to twenty-five or thirty cents a pound; but, on account of the firm being rather slow payers, no more than ten or fifteen cents a pound was paid McClintock; and even the payments which were due him at this rate were withheld, according to my recollection, and McClintock never got these, although the firm was charged for the dyestuffs sold them the proper and market prices, plus the amount of graft which was supposed to be paid to the dyer.

'The custom and rule of the Company for which I was the salesman-the Farbenfabriken or Elberfeld Companywas that, in order to protect themselves, they would charge, as an additional price for the stuff, about the same as they would have to pay the dyer for graft. In other words, the amount paid the dyer for graft was just doubled, and this amount was added to the bill. This was done as a margin for protection for the firm selling the dyestuff, because the firm selling the dyestuff would consider it was taking some risk when it would have to pay the dyer graft, and they wanted an additional margin for contingencies. Some of the old dyers who were on to this insisted that this whole amount be paid them, that is to say, they wanted the amount which was allowed on the bill for their graft and also the amount which was allowed the firm selling the dyestuffs as margin for their protection. Some of the old dyers demanded the whole amount and got it within a very few cents.

'Another firm which occurs to my mind now as being a glaring example of graft is that of X. Y. & Co. The head of this firm was Mr X., and the dyer was A. B., who made a great deal of money by graft, and has since left the firm. I never knew just how much B. got, but on several occasions I took sealed envelopes containing money from Mr Keppelman to him. B. was a great hand at this graft business. He would order, for instance, five barrels of sulphur black, which is a cheap black, and one barrel of lizarine black or lizarine green; the sulphur blacks are very cheap and the lizarine colours are expensive. When the order would be filled, as was understood at the time, B. would give the order; all the barrels of dyestuff delivered would be sulphur colours; and B. would see that he got within a very few cents of the difference paid to himself.'

Warren W. Hartford, employed for general office work, stated:

I remember often seeing Miss Gaul, who was Mr Keppelman's private stenographer and secretary, making out the envelopes to be paid the dyers at a desk at the south side of Mr Keppelman's private room. She would have the money all spread out before her and would take different amounts and put them in envelopes. . . . Sometimes the dyers would come to the office and get these envelopes, sometimes the salesmen would take the envelopes to the dyers. general rule, the salesmen would take the envelopes to the dyers. . . .

'Among the dyers whom I remember coming to the office interviewing Mr Keppelman in his private office, are A. B. [see preceding disclosure of Gundy], who was then a dyer of the X. Y. & Co.'s mill; C. D., who was a dyer at the mill of U. V. W. & Co., at Bristol, Pa.; and T. S., who was a dyer for O. P. at Norristown, Pa. I remember the last named, S., distinctly, because, when he would be there, Mr Keppelman would 'phone down for the "new-thing" sheets; for O. P.'s mill, and "Is "-card and ledger-card besides. I remember the same thing with regard to C. B. and D. with regard to their mills of X. Y. & Co. and U. V. W. & Co. When these dyers were in Mr Keppelman's private office, and sometimes before he would call them up into his private office, Mr Keppelman would 'phone down and have us send money up to his office, and I have no doubt this was money which he paid these particular dyers.'

The following dyers, among others, confessed to having received bribes, and gave their evidence as follows. Alexander Macfeat, who worked at the P- Woollen Mills, stated:

'During the time that I was there dyes were bought from ..., Cassella Colour Company, Farbenfabriken, Berlin Aniline Works, and . . .. I do not remember the exact or even approximate amounts, but the books of the Company will show this. During the time I was there the . . . loaned me $1500.00, and have loaned me $2000.00 more since leaving the mills; the Cassella Colour Company paid me five, ten and fifteen cents a pound on all dyestuff I bought from them; the Farbenfabriken paid me twenty and twenty-five cents a pound on all dyestuff I bought from them; the Berlin Aniline Works, through Leander Riddle, their salesman, left envelopes twice at my house, with fifteen dollars enclosed each time, in payment of my purchasing two barrels of sulphur black from them; the ... paid me ten cents a pound on all dyes obtained by me from them. They would have paid me fifteen cents a pound. The reason I did not get the other five cents from the . . . was because the Philadelphia manager told me that N. B., the salesman, was giving this five cents a pound to Mr X. Y., the president and manager of the Company. Since I have confessed my part in this affair, Mr Y. denies this, and I now believe that he never got this five cents, but that N. B. put it into his own pocket.'