The Washington times., 1922-07-28
BLOCK AIM To
COVER WORK Of
CHEMICAL BODY
A. Mitchell Palmer and F. p.
Garvan Debarred From Try
ing to Protect Foundation.

| from using the Underwood war
claims bill to throw a smoke screen
around the Chemical Foundation
and other scandals during their
administrations of the Alien Prop.
| erty Custodian's office. -
Senator Cummins, chairman of
the Judiciary Subcommittee con-
Quoting the first hearing on the
measure, flatly announced at the
outset that no "extraneous matter"
would be permitted and that all
testimony would be restricted solely
OF the bill.
Senator Cummins had been eau
toned by Republican leaders that
one Of the main purposes of the bill
was to give Palmer and Garvan an
opportunity to make public de.
Tense against charges now being in
vestigated by the Department of
Justice. They were able, therefore,
to make only indirect references to
the sale by themselvs to the Chemi.
cal Foundation, organized by them
selves and headed by Garvan, of
$500 seized German dye and chemi.
cal patents for a song and Presi-
dent Harding's order demanding the
return Of the patents to the Gov.
ernment.
Senator Underwood took occasion
during the hearing to issue a def
to the Administration In the mat
ter of the mixed claims commission
on which the State Department now
Is negotiating with Germany. He
insisted that his bill setting I'D a
strictly American commission and
requiring all seized German prop
erty to be held intact pending ad-
Judication of American claims
should be enacted at this session.
II the President should send to
the Senate a treaty with Germany
providing for a mixed claims com.
mission. Senator Underwood said,
1t will probably be a long, long
time before 1t is ratified, and, in
fact, II may not get through at ALL"
Senator Cummins indicated that
Secretary OF State Hughes may be
called before the committee to ex.
plain the negotiations with Germany
regarding the settlement OF claims.
The Senator said there is "a marked
difference of opinion" between Re.
publicans and Democrats as to how
the claims should be settled, but
that both sides agreed that they
should be settled as quickly and as
fairly as possible" He declared
there is strong sentiment in favor Of
settlements through diplomatic chan
uels. which would mean through a
mixed commission, as proposed by
Secretary Hughes.
Will Press for Action.
At the conclusion Of the hearing,
which was adjourned to meet at the
call Of the chair, there was no ex-
pectation that any action will he
taken on the bill. although Senator
Underwood is determined to press
IL with all possible force.
The opinion appeared to be. how
ever, that II anything along the line
is to be done, 1t will be done by the
Republicans in their own way,
rather than permit the Democratic
leader to put through legislation Of
such Importance while the Repub-
lican Administration is deal ing with
the question.
Custodian Thomas Miller. who has
been in frequent consultation with
President Harding recently, made II
plain, however, that the Administra-
tion's policy is to protect the Ameri'
can claims in every way possible.
Senator Underwood called attcn-
ton to provisions in the Versailles
treaty, the Knox.Porter peace resolu'
ton and the separate treaty with
Germany, all Of which. he declared.
give to this country the right to hold
intact all seized German property
pending settlement of American
claims. Then he took the position
that under the Administration pol
lev. as provided in the Winslow bill
| for the return of all seized property
| valued at $4,000 and less, sufficient
funds would not be left to cover
American claims.
Custodian Miller stated that the as
sets of his office today amount to
about $345, 900 900. and IL the Wins.
low bill were passed this fund would
not be reduced below $500, 900, 900.
Senator Underwood asserted that the
American claims total $500, ,000, 900 to
$500 ,00O, 900. Palmer testified that
former Secretary of State Colby had
reported to the Senate in March.
1921, that the claims amounted to
1921, 900. 900.
Assets Decreased.
When Palmer stated that he had
turned over about $3.50. .000, 900 worth
of property to Gar IAN, who succeeded
him, Custodian Miller explained that
the depreciation to the present value
! Of s345, 900. 900 was due largely to
fluctuation in the value Of great num-
bers of stocks, bonds and other Sc.
| curities.
In response to question by
Senator Underwood as to whether
or not all German patents would
be returned under the Winslow bill,
Colonel Miller said the patent sit
uation undoubtedly will receive the
attention of the House and Senate
when the Winslow bill comes up for
hearings.
In line with the policy exemplified
in the Chemical Foundation. deal,
Palmer urged that this country
adopt what he asserted is Great
Britain's attitude: There are no
German patents; take the patents
and use them" He saw no reason
whatever why there should be any
communication about using seized
: German property to pay American
claims. But on the other hand, he
wanted the Underwood bill amended
so that Germany should not only
have to pay all American claims
but also would have to restore all
seized American property.
Palmer and Garvan throughout