New-York tribune., 1922-07-12
War Frauds Grand Jury
Questions Carvan as
First Move i'm Probe of
Alien Property Chiefs
Ouiz Will Reach
Every Incumbent
Chemical Co. Books Are
Turned Over; Daugherty
to Protect Patent Rights

EYanclS +. Od4Sdt, iofiiieF alleu FrOp-
.r.v Custodian and now head of the
fsemieal Foundation. Inc, before the
,oecial war frauds grand jury to-day
was said in official circles to have in
anyursted a sweeping inquiry into
sxarv act Of the custodian's Office from
It's inception.
Il was emphasized by the same Of
sfsals that the Investigation was de-
signed primarily to establish finally
the legality Of the custodian's acts and
20 remove any ground for continued
criticism leveled against the Office, if
such criticism has been unjustifed.
A grand jury investigation was de-
slared by the officials to be The only
pethod provided for In the American
system of government to clear up the
controversy definitely.
American Rights To Be Guarded
Formal assurance that every Ameri-
can interest" in the dye patents sold
ty the Alien Property Custodian in
1919 to the Chemical Foundation will
be protected by the government was
made to-day by Attorney General
Daugherty.
Denying that any person connected
with the Department of Justice had
had any communication with German
interests Or individuals regarding re-
tovery of the patents, Mr.. Daugherty's
statement reiterated that in moving
to recover them from the foundation
The department was merely carrying
out the instructions received from
President Harding.
The statement was interpreted as
having reference to charges made by
Francis P. Garvan-who, as custodian,
tshded the sale, subsequently assum-
Ing the presidency of the foundation
TON, effect that the demand for return
at1e to the patents had been actuated
EGerman influence.
VI. Garvan appeared before the war
Nauds grand jury ip. response to sub
Z prna and turned over to that body the
record of the foundation. He said later
engagements had been made to permit
tspection of the books by representa-
yes Of the Department of Justice.
Prior to going before the grand jury
Ar Garvan said he had refused de-
nand of Assistant Attorney General
Trim for permission to inspect the
books on the ground that he would not
open them to "Germanic influences"
Daugherty Issues Statement
Attorney General Daugherty's state
nent regarding the patent controversy
follows
The matter is in legal progress I
have had no communication with any
0erman interest or person connected
with any interest that the Germans are
supposed to have or have had in these
patents, nor has anybody in the Depart
ment Of Justice had communication of
any kind with any of them.
We are continuing to carry out the
RESIDENTS instructions in the matter.
There can be no doubt that if these
patents are returned by orderly and
cue process of legal proceedings, the
PRESIDENT and Congress will take care
81 every American interest. That ques-
t,on VIII be entirely up to Congress and
.ne President if the patents are re-
Mfned later voluntarily or by virtue
ei court order"
Won't Discuss CASTOR Means
iae Attorney General, questioned
Sohcernlng Mr.. Caravans charges that
9aseon b. Means was associated with
.ae Department of Justice in connec-
sioh with the Chemical Foundation
MMas{er, Ma said that he would not discuss
:, Mr.; Means" he said, "seems to have
NE Ne; III will of lots of people, and I
'n,nk l know the reason"
~. IN reply to further questions as to
aihetner Mr.. Means had been suspend
f ~ from the staff of the Bureau of
in,mestigation of the department Mr..
pausherty said: "I have not said that
9spended Mr.. Means"
MT Garvan spent only twenty min
@ YVES IN the grand jury room, and on
svming out dictated the following state
A's,9 81, IN the presence of his attorney:
Wal appeared before the grand jury
St'a all the books and papers of the
G,ssmical .,asa Foundation. l was treated
Avn every courtesy and consideration.
~ ~ arrangement was entered into be-
ss;eS s5sen the grand jury and myself by,
N,cn the books will be returned to the
l.. iN.w York office, there to be examined
s,.a Il me auditors of the Department of
sssa;salce; an examination which any one
a1 have had at any time since the
sisal1ization of the foundation by
arply 81 knocking On the door.
81 am to return at some future time
ta,ine me grand iury's convenience for