New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20
Joint Use of Hun
Trade Processes
Through New Corp.
Company Formed to Take
Over for American Use
Chemical, Color and Drug
Patents Seized by U. S.

The executive committee of the
Chemical Manufacturers Association
met at India House, Hanover Square,
yesterday to formulate final plans
for corporation which will take
over all German chemical dye and drug
patents now in the hands Of the Alien
Property Custodian. Papers of incor
poration under the laws OF the State
of Delaware or the District of Column
ba will be filed o-day or tomorrow.
The membership of the rev concern,
which will act as holding company,
will include nearly all the chemical and
dyestuffs manufacturers il the coun-
Try, all of whom, upon payment Of
fixed fee, will receive licenses from
the company to use the German
patents for chemicals, dyes, pharma-
ceutical preparations and the chem
zeal processes employed iii the iron
and steal industries. The name of
the holding company will indicate its
character as Il non profit making I'M
dertaking
Inquirers at the Offices of the Ma
tional Aniline and Chemical Company
for information concerning the new
corporation were referred to Il. NJ.
Kalish, Of counsel for the company.
The latter also refused to divulge any
information in regard TO the holding
company.
Object Of Company
The object of the holding company
not only will be to put at the disposal
of domestic chemical and dyestuHs
manufacturers the valuable German
processes, but primarily tC place the
industry in America in an unassailable
position, so far as competition is con
ccrned. For this feason il has been
decided that no licenses will be issued
TO foreign manufacturers, even if their
plants are located i'll the United States,
whether they were former enemies or
allies. Through the workings of this
plan it is Hoped to mericanize the en-
tire dy estuffs and chemical industry.
Through the licensing privilege the
industry in this country believes 1t
will have an effective weapon to coun-
tcract any embargoes which may be
placed Oh the importation oil chemicals
bv foreign countries. 1t is known that
France. England, Italy and Japan have
such pronik tory measures under con-
s.dera zion.
France has such an act now in force
as a war measure. and proposals are
now being made in England for the
adoption OF an act extending the pres
cnt war measure The countries named
arc said to contemplate the enforce
ment of an embargo against chemicals
for period of from three to SIX years.
Should such measures be put into e,
feet the countries enforcing them would
have to do without certain essential
chemicals OF be forced to manufacture
them without the advantage OF the use
of dyes made under the improved
methods covered by the patents.
License System
The license fees to be charged by the
holding company will be uniform, so
as to avoid discrimination between
large and small manufacturers. The
trustees Ct the company have not ye.
been selected, but they will be men OF
the highest character, drawn from UNI
versity. banking and Official circles
The plan has the sanction OF govern
ment officials as we'll as of the American
Dye institute and the Chem cal Manu-
lecturers Association. Waile the com
pany viii rot be incorporated under
the laws of this state, ITS main ONCE
will be located in New York City.