The Penn's Grove record., 1919-07-25
PAGE EIGHT
German Metodhs Exposed

Continued from page 1
and transferring the German patents.
The General Counsel of the Company
IS to be Mr.. Joseph H. Choate, Jr., who
for the pas year has been entirely oc-
cupied in the chemical part OF the
work of the Alien Property Custod1-
ans Bureau of Investigation. SUB
st~antiallv the whole of the special
knowledge. in this field, acquired by
the Alien Property Custodian ana ms
staff. is thus at the disposal OF the
Foundation. 1t is believed h all OF
fine trustees. officers and counsel OF
the Foundation are completely dlssocl-
ated from the d~ye-produclng ana uye-
consuming industries.
The members of the American Dyes
Institute and the Manu1actuflhS
Chemists Association nave placed
themselves on record as Wiling TO take
the entire capital stock of h foun-
dation, and have provided IN advance
so much of the capital as was requlrgo
for the purchase of the patents. IN
order to render it certain, we've
shat the control of the Company can
never be vested, even at the termlna,
+ion of the voting trust, in any small
group of interested parties, the Com
nanv is now e~ndeavoring, under the
sunervision of the Alien Property Gus
todian. to distribute its stock as wac,
" as possible among the chemical n
allied industries. In any event no SUD-
scriber will be allowed to hold more
than two, and possibly not more tnah
one. share of the common stock, Whlc1
has the voting power. 1t is hopeo
that when this distribution is com
plete. no single subscriber will retain
more than 100000 of the preferred
and common stock. If this car be
realized. the Foundation will remain,
even after the dissolution of the vot-
ing trust. the impartial representative
of all the industries affected. After
the success of the Company shall have
been demonstrated in actual operation
it is hoped that the consuming INDUS
tries may also be brought IN.
To the Foundation as thus organlz-
ed. the Alien Property Custodian mas
sold for the sum of $250,0O0.O0 SUBJ
st~antially all of the German Dye and
chemical patents, seized by HIM, X
cept those which were included IN the
sale of the Bayer Co., Inc, which took
place before the organization OF the
Foundation. The patents cover a wide
field, the classification including
metallurgy, fertilizers, hXation OF MI
trogen, INCORPORATION of oils, ETC., and
number approximately forty-fve hum
bred. The transfer of these patents
has been completed. They will be
used to encourage manufacture in this
country and discourage Importation
from Germany. The Foundation VIII
issue non-eXclusive licenses under
them, on reasonable and equal terms,
to manufacturers whose AmerlcanlSm
and competence are unquestloned. II
will also prosecute with all posslole
vigor, suits against all persons VINO
attempt to import any infringing pro-
duct. Since many of the patents are
product patents, the Foundation should
be able to exclude infringing goods
from any source whatever, and should
thus be able to give partial protection
to a part, at least, of the new Amer
lean dye industry.
In addition to the patents, the en-
envy trademarks taken over by the
Alien Property Custodian have like
wise been sold to the Foundation. A
plan is being formulated under which
II is hoped that the Foundation will be
able to license American manufactur-
ers to use these trademarks. The IN
tention is to issue such licenses only
when the goods to which the mark is
to be attached, are found, on eXamina-
ton by the Foundation itself, to be
equal or superior to those of the origi-
nal owner. Such trademarks would
then represent to the public a guaran-
tee of quality furnished by an impair
tial body, and would thus give Amerl-
can manufacturers an important adj
vantage wei foreign competitors.
The Foundation has also purchased
from the Custodian the German copy
rights covering some of the indis-
pensable literature of science By this
means it should be able to render vast
ly more accessible than at present
many of the necessary scientific pub
locations. The Foundation also has
power, under its charter, to purchase
new patents, and it is hoped that this
may become an important field of &C
t~ivities. 1t seems clear that an i'm
mense stimulus will be offered to
chemical invention by the provision of
such a disinterested and impartial pos
Slble purchaser; at the same Clme, Sucn
transactions would be valuable to the
public at large, as all inventions thus
purchased would be available for i'm
mediate use by any suitable m%anufac-
turer, and could not be suppressed.
The chief usefulness of the Foun-
dalton, however, is expected to be as
a centre of research. It's charter pro-
vides that after the redemption of the
preferred stock, the free net earnings
of the Corporation shall be used and
devoted to the development and adj
vancement of chemistry and allied
sciences in the useful arts and manu-
features in the United States" If the
patents turn put to be as valuable as
is hoped, this provision should render
a considerable income available for re-
search purposes, and for this work the
Foundation is in a position of unique
advantage. 1t forms the link of a type
L.