The Pulaskian. (Pulaski Heights [Little Rock], Ark.) 1915-1929, 1919-03-21


Chemical Foundation, Inc, which is
to take over all alien enemy dye
patents and of which he has been
made first president.
The new incorporation will be a
voting trust, capitalized at 100000,
of which 100000 is to be cumula-
tive preferred stock paying 6 per
cen dividends There will be $780,
600 common stock also limited to 5
per cent dividends.
By executive order obtained under
provisions of the trading with the
enemy act there has been sold to
the new corporation for $250,00O APP
proximately $500 patents. There re-
mains $250,000 to be used as work
ing capital to develope the patents
and to fight any suits which may
later by instituted by the original
owners for restitution, or to prevent
infringement of the patents under the
new control.
Under the voting trust plan the
stock is to be placed under the CON
troll of a trustee committee composed
of the five men who have been act
ing as sales committee for the
department for several months:
George L. Ingraham, Presiding JUS
tice of the Appellate Division, First
Department, New York, Supreme
Court; Otto T. Barnard, president
New York Trust Co.; Clevland H.
Dodge, Benjamin H. Criswold of
Brown Bros, Philadelphia, and
Ralph Some, president Detroit Trust
Co.
In his report upon German alien
enemy activities and the measures
necessary to protect American in
dustry Mr.. Palmer's report says in
part
Should Furnish Necessary Protec-
ton.
cit is submitted that the organ
ization of this institution constitutes
the most important step that has
been taken for the protection of the
new industry. Tariff protection has
proved utterly unavailing in the past
The German industry as hitherto
organized and still more as now
organized, has had so much to gain
by extending its foreign trade and by
destroying the industry in other
countries that it would undoubtedly
give away its goods in this country
for nothing in order to recover the
American market. The Chemical
Foundation, however, should prove
power sufficient to discourage in
most effective manner any German
attempts in this direction At the
very least, the institution will be able
to protect the American industry for
a considerable period, and this should
be all it needs. 1t appears to be the
universal view of the more competent
manufacturers in this country that
given five years of freedom from
German competition, the American
industry can hold its own.
"Up to about 1910 all the great
German houses shipped their goods
to their American representatives on
a pure consignment basis. The COM
pensation of the American represen-
tative was. wholly by way of COM
mission. The American company in
these cases was mere selling
agency or branch. In 1912 a group
of Philadelphia lawyers brought
about the prosecution of an officer
of the Bayer & Co. (Inc.) Cor its
predecessor, Farben Fabriken of Ell
berfeld, another New York corpora
tion) for some of the corrupt prac-
tees in the way of bribing buyers,
which, as has been stated had be-
come universal among the German
houses. In the course of this prose-
cution the lawyers in question be-
came familiar with the general his
tory of the German industry and at
once realized that it might be made
a subject of an attack under the
Sherman law, on the theory that each
of German companies was through
its agent, actually doing business in
his country and that the two great
cartels were conspiracies in restraint
of trade.
pRIITAT MILDRED