The Marietta journal. (Marietta, Ga.) 1918-1944, 1922-07-27


natter, but insert here an extract from
the report of A. Mitchell Palmer, filed
with the President February %, 1919,
and by him forwarded to the Congress,
and by that Congress made a public
document and most widely commented
on by the press Of the country"
Palmer's Version of IL
Mr.. Palmer stated in the course Of
the report referred to by Mr. Garvan:
These patents, as had already been
J Indicated, formed q colossal obstacle to
! the development of the American dye
stun industry. Evidently they had not
been taken out with any intention of
manufacturing In this country or from
any fear of American manufacture
=. upon consideration 1t seemed that
these patents offered a possible sOlu-
ton for the problem, hitherto unsolv-
able, Of protecting the new American
dye industry against German competi-
ton after the war The idea was
accordingly conceived that If the Ger
man chemical patents could be placed
in the hands OF any American institu-
ton strong enough TO protect them,
real obstacle might be opposed to Ger
man importation after the war, and at
the same time the American industry
might be freed from the prohibition en-
forced by the patents against the man.
ufacture of the most valuable dye
stuffs. Accordingly these considerations
were laid before various associations Of
chemical manufacturers, notably the
| Dye Institute and the American Manu-
featuring Chemists Association. The
suggestion was met with an instan-
| taneouS and enthusiastic approval, and
as a result a corporation has been Or
ganized to be known as the Chemical
| Foundation Qnc.), in which practically
every important manufacturer will be
stakeholder, the purpose of which is
| to acquire by purchase these German
| patents and to hold them as trustee
for American industry. i. The first
| president of the Chemical Foundation
will be Francis p. Garvan Of the New
| York bar, to whose clear vision and in
| defatigable industry l am chiefly in
debted for the working out of this plan.
The combination was not objection
able to public policy, since 1t was so
organized that any genuine American,
whether a stakeholder of the COM
| pany or not, could secure the benefits
of the patents on fair and equal terms"
a Quasi-Publc Idea
Mr. Garvan goes on to state that at
| that time he was a dollar a year man,
| with no expectation whatever of be-
| coming alien property custodian; that
! 1t was only when Acknowledgement
| Gregory resigned and Palmer was ap-
| pointed encouragement that Palmer
asked him to take the custodian's
place. Three months later, he writes,
| he testified before the Ways and Means
Committee of the house THE founda-
tion Of the Chemical Foundation was
| an effort to form an organization to
| represent as nearly as possible at that
| time the public interests. Judge In
| graham Of New York and Judge Gray
| of Delaware had charge of drawing
| our charter and our trust agreement
| and our certificate of Incorporation.
| We have endeavored to make 1t as
nearly a public institution as our laws
allow, and at the same time to have
it an official organization. We wanted
to sell these patents to the govern
ment, and II there had been any
method by which we could make them
| a working force and still have them
! owned and controlled by the govern
ment, 1t would have relieved us of
great deal of responsibility, and If
there is at this time any suggestion for
! modification or amendment of our plan
| which will insure in the minds of the
! committee a more definite and certain
fultillment of the intention and pur-
| poses of our organization l am certain
| that the Chemical Foundation and all
| its stockholders and all who are inter
ested in it would be glad to conform
to the wishes of the committee, be
cause, in so far as we have public rec
ignition and public support and gov
eminent recognition and government
support, we become more efficient and
become more able to carry out the in
tentions which are in our hearts and
minds"
Mr.. Garvan states that the total or
| gross income of the Foundation has
averaged $143, 216.65 per year. The run
ming expenses, bare overhead, have
averaged St21 ,971.35, a net excess of
S21, 245.30 or .049 per cent on the $42S,-
900 invested, allowing nothing for de-
| probation. The average life Of the
! patents is eight years, 80 that 12h
per cent of the $271 $50 cash paid for
the patents or s3S,931 per year
should be subtracted from the appar-
ent net receipts per year, which leaves
an actual annual operation deficit Of
| NiZ, I50.IU In educational work, Mr.
Caravan informs the President the
Foundation has spent $264,O17.S5, the
entire balance of its capital.
Quotes English Prediction
Firmly maintaining that the Founda-
ton is the keystone of the wall raised
to protect the American people from
German chemical domination, Mr. Gar
van maintains such protection is indis-
pensable to the future happiness, health
and safety of the American people, and
quotes from a recent open letter to
parliament written by James Morton,
largest carpet manufacturer Of Eng
land, Organic chemistry is the key to
the world of new values and that
America in five years time will have
dye works and general chemical works
equal to Germany
AS regards the development of or
ganic chemistry for national defense,
Mr.. Caravan calls to his aid testimony
| by Marshal Foch and the late Field
Marshal Sir Henry Wilson to the gen.
| eral conclusion that a nation thorough
ly equipped chemically may almost
| guarantee the peace of the future. And
,,.Is, 80,