This exploitation for the benefit of German industry is an outgrowth of the plan suggested early in August, 1914, by Dr. Walter Rathenau, President of the General Electric Company of Germany, to establish a Bureau of Raw Materials for the War. The bureau (Kriegsrohstoffabtheilung) was made a part of the Ministry of War. Its operation in the occupied territories was explained in a lecture by Dr. Rathenau in April, 1916, as follows: It was necessary to be sure of an increase in the reserve of raw materials both by purchase in neutral countries and by monopolizing all stocks found in the occupied territory of the enemy. * * * The occupation of Belgium, of the most valuable industrial parts of France, as well as of parts of Russia, made a new task for the organization. It was necessary to make use of the stocks of raw material of these three territories for the domestic economy of the war, to use, especially, the stores of wool found at the centres of the Continental wool market. Valuable stocks of rubber and of saltpeter were to be used for the profit of the manufacturer at home. The difficulties that are met with in keeping to the rules of war while making these requisitions have been overcome. A system of collecting stations, of depots and of organizations for distribution was arranged which solved the difficulties of transportation, infused new blood into industry at home, and gave it a firmer and more secure basis. BRAND WHITLOCK'S STATEMENT This plan, which has given German industry "a firmer and more secure basis," was used not merely to "make war support war" by contributions wrung from the conquered peoples, but also to destroy future competition--in violation of The Hague Convention, (Articles 46, 52, 53,) which Germany had signed. In the first months of the war a pretense was still made of acting under military necessity, but this was soon abandoned. On March 4, 1915, Brand Whitlock, American Minister to Belgium, reported to the State Department: The Federation of Belgian Steel and Iron Manufacturers forwarded a protest to the German Governor General in Belgium, on Jan. 22, 1915, complaining that the German authorities have invaded the Belgian plants and seized the machinery and tools, which have been taken to pieces and sent to Germany in great number; in many cases no receipt was left in the hands of the legitimate owner to prove the nature, number, and value of the seized tools. Machinery to the value of 16,000,000 francs ($3,000,000) had been taken away up to Jan. 22. Furthermore, the Feldzeugmeisterei in Berlin has entered into a contract with the firm Sonnenthal Junior of Cologne, which firm is to collect, transport, and deliver to German manufactories of war supplies all engines and tools seized in Belgium and France, and to bring them back after the war is over.