Evening star., 1922-07-09
motive EXPLAINED
IN DYE PATENT SUIT
Justice. Department Says
Government Would Save
Expenses.
STATEMENT IS ISSUED
STATEMENT IS ISSUED
Claims Step Forced by Chemical
Foundations Litigation Against
United States Treasurer,


clared by the Department of Justice
in a statement last night to be an
endeavor ito adjudicate the Whole
/ question in the most practical and ex-
peditious manner possible and save
10 the government and the litigants
! a. great deal of unnecessary expense"
The departments statement. issued
! partially as reply to the statement
made in New York Friday by Francis
F. Garvan. former alien property Gus
todian and now head of the Chemical
! Foundation, set forth in formal man.
ner for the first time the motive i'm
pelling the government to make the
demand on the foundation for return
or all patents. copyrights and other
property transferred to it, The state
ment also referred to Mr. Caravans
assertion that a delegation of Ger
mans conferred with Justice Depart
ment officials shortly before the gov
ernment announced its action. declar-
ing that the German delegation had
absolutely nothing to do with any ac-
tion Of the department against the
Chemical Foundation"
The statement, in explaining the
governments motive. called atten-
tion that the Chemical Foundation had
brought sixty-seven suits against the
, United Ssa.es treasurer 20 collect
royalties paid that official on patents
now held by the foundation while
they were in the trusteeship Of the
alien property custodian: 1t being
. incumbent on the 1nstice Depart
| ment to defend these suits. abe gov
ernment, it IS added, decided that the
| best procedure required the original
conveyance as well as every Incl
dental step therein should be set
anew"
Text OF Statement.
! The statement issued by the De-
| partment of Justice said:
Officials Of the Department of JUS
tice today took cognizance of the
els P. Garvan. former alien property
custodian, and now president of the
Chemical Foundation. the return OF
whose patents; taken over from the
alien property custodian the govern
! ment has demanded"
Officials of the department called
attention to the fact that the Chemi-
cal Foundation last week brought
sixty-seven suits against the treas
urer Of the United States to collect
several lHOuSduu uOllATS VI
royalties which had been paid to that
official on account Of the patents now
held by the Chemical Foundation
while they were in the trusteeship of
the alien property custodian. They
pointed out that it was the duty OF
the administrative Offices Of the De-
partment of Justice to defend these
suits against the government Of the
United States and that the decision
to do so was reached In view Of the
fact that there was only one way to
act in the best interest Of the govern
ment to adjudicate the whole question
| in the most practical and expeditions
, manner possible and save to the gov
ernment and the litigants a great
deal of unnecessary expense.
"Oficials of the department. it was
said, believed that since the Chemical
Foundatio had indirectly attacked
| the original conveyance by the alien
property custodian sound legal prin-
ciples required that in the defense
Of these suits the original convey
therein. should be set aside and the
matter considered anew.
1T was further stated by officials
OF the department that the amount
for which the Chemical Foundation
lis suing the government is a larger
sum than the Chemical Foundation
paid for the patents. and that the
policy adopted by the government of
meeting the situation in one suit was
much more to the advantage of the
government in bringing about a set
tlement of the controversy than
ernment had become defendant in the
sixtyseven suits brought by the
Chemical Foundation.
No Notice Of Suits.
with respect to Mr. Caravans al
legged explanation Of his reason for
saying previously that President
Hardfng's action last week in de-
manding the return OF these proper
ties was taken without consideration
of or notice to the Chemical Founda-
tion, officials Of the department to-
day called attention to the fact that
the government had no notice that
the Chemical Foundation would bring
sixty-seven suits against the govern
ment only one week before the statute
Of limitations would run out-a cir
cumstance which might have been to
the prejudice of the government
Tt was also said by officials Of the
department that representatives of
the German cartel comprising the or
ganic chemical industry Of Germany,
called at the Department Of Justice
recently relative to thirty-odd suits
to be Instituted by them against the
government on behalf of their clients.
but that they had absolutely nothing
" w Will any dCtlOH O1 tue QSp6EL.
ment against the Chemical Founda-.
ton. 1t was pointed out that the De-
partment Of Justice had been investi-
eating the transaction between the
alien property custodian and the
Chemical Foundation for many months
prior to the arrival OF the German
representatives, as Mr.. Garvan and
his associates we'll knew, and prior to
the action of the Chemical .Founda-
tion in precipitating an unexpected
situation by bringing sixty-seven
suits against the government. inyolv-
!, ing Q very large sum Of money
1T was pointed out that the return
of these patents to the alien property
custodian would in no sense benefit
the former German owners or inter-
ests. The action taken by the gov
ernment has been wholly In, the in
terest Of the government itself. The
disposition Of these patents after re-
| turn to the alien property custodian,
! as we'll as all enemy property held
by him. must be determined by action
of Congress-"