Iron County record. [volume] (Cedar City, Utah) 1893-1982, 1922-07-14
j. S. TO DEFEND
ROYALTY SUITS
ADMINISTRATION STARTS &C
TON TO RECOVER ALIEN
PATENTS SOLD
Formal Demand Is To BE Made On
Chemical Foundation by Custodian
10 Word Being Sent Out From
Washington

Washington.-Th move OF the ad.
ministration to recover from the
Chemical Foundation, Inc, all enemy
allen patents purchased by that or.
ganization in 1915 from the then alien
property custodian, Francis p. Grrvan,
was declared In official circles recent
ly. to be a logical step on the part Of
the government TO defend suits
brought against Il TO recover royalties
collected from the licensing of those
patents.
IL was said there are more than
sixty suits already pending against
the treasurer OF the United States to
recover royalties which have accrued
as a result OF licenses issued by the
federal trade commission under auth
GRITTY of the trading with the enemy
act.
Allen Porperty Custodian Thomas
w. Miller announced he would make
formal demand this week on the
Chemical Foundation for the return Of
the patents In conformity with Presi-
dent Harding's instructions.
In the event Of q refusal. Mr.. Miller
said. suit In equity Immediately
would be filed In the supreme court Of
the District Of Columbia. He declined
90 disclose the basis of such a suit,
or TO discuss the causes which led
to the move at this time to recover
tho patents. He denied emphatically,
however. that politics was involved.
Department of justice officials also
declined to disclose what had been de
veloped by the Investigation referred
10 by Attorney General Daugherty in a
statement issued Saturday coincident
with the presidents letter to Custo-
dian Miller. Mr.. Daugherty said
records OF the department Of justice
showed the president had sufficient
reasons for his instructions TO recov-
CT the patents.
In official sources outside the de-
partmsnt OF Justice and the alien
property custodinn's office, however
Il was said that, while the govern
ment was not prepared to character
lee the sale Of the enemy patents tC
the Foundation "as clean as hounds
tooth" neither was 1t prepared TO say
that there was fraud or anything
criminal involved. Up TO the present
n was said. there has been no sug
gestion of fraud in the transaction by
which Mr.. Garvan. as alien propert,
custodian. sold the patents for $3.50,
600 to the organization of which he 1,
now president.
Confronted with the suits filet
against the treasurer of the United
States by the Chemical Foundation, d
was explained. the department of jus
tice was compelled TO defend tn,
suits or be placed in the position o
paying moneys out of the treasury {,
the Foundation in the face of "widel,
expressed doubt" as to the validity o
the Foundations title to the patents
The administration. II was said, ha,
In mind the numerous attacks mad,
in congress and elsewhere on the sal
of the German patents for the NON
inal" sum involved, and wanted L
ego into court with all the facts" Al
logical first step, the president wa
said TO have been advised by the de
partment of justice that move &
recover the patents would settle 70
all time the question of legality OF tn
sale. which was said to hinge OF
whether there was Sufficient consid
Grafton" paid by the purchaser.