New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-07-08
Garvan Hints
TeutO1as Caused
Patent Seizure
Declares Agent of German
Chemical Industries Saw
Daugherty's Aids Before
Announcement Of Action
No Notice to Foundation
Attorney He Names Insists
Conference Was Merely to
Notify of Impending Suit

LSOeAH VI AH kJCaaul1Af9 t1&hS
Agents Of the German chemical in
!. dustries consulted with assistants of
Attorney General Daugherty just be-
fore the announcement was made that
the United States government intended
to bring suit to recover from the
Chemical Foundation the German
chemical patents which it bought from
: the Alien Property Custodian after
they had been seized during the war,
; according to q statement made by
Francis P. Caravan, president of the
Chemical Foundation, Inc, last night.
~ had not intended to make any
further statement until the demand Of
the Alien Property Custodian had been
served upon me and will not do so
with reference to the suits involving
the Foundation ITSELF" said Mr..
. Caravan.
81 have been asked so urgently and
frequently two questions by the papers,
however, that ! feel | should not wait
until the demand is served"
Explains First Statement
, "The first question asked is what
justification I had for saying in my
first statement, This action was taken
| without any notice to the American
| organic chemical industry, or to the
Chemical Foundation, or any of it's Off
! GERS, or to, in fact, anyone equipped
| to speak for this essential American
, industry in peace and war. 1t has been
begun, l am informed after a full
hearing by the representatives of the
) German Cartel, the German dye trust
and the German government, without
/ any American interest being given an
opportunity to be heard in reply
an answer thereto l desire to state:
81. Within about three weeks q
commission, consisting of three Ger
man lawyers-Rudolph Oppenheim,
Hans Wagner and Karl Holderman--
representing the German Cartel which,
in turn, consists of all the organic
, chemical industry of Germany, ar
rived in this country to perfect plans
control in America of the organic
chemical industry. On Saturday, June
"a, q conference was held at the office
of O'Gorman, Battle, Vandiver & Levy,
81 Wall Street, at which were present
Mr.. Vandiver and Mr.. Levy, represent
ing Herman A. Metz, the leading Ger
man importer and agent of the 4. c.
: and several other lawyers representing
the German Embassy and other Ger
. man interests. 1t was there decided
: that q direct action by Germany or
by the cartel to upset the sale to the
Foundation would be ineXpedient, but
that the most promising form of pro-
cedure would be to attempt to induce
the United States government to bring
,, the action and to offer to the govern
ment all possible German assistance.
Accordingly, a committee was appointed
consisting of Messrs. Oppenheim and
: Wagner, Vandiver and Levy to go to
Washington and consult with the De-
partment Of Justice.
Foundation Not Advised
| "2-On Tuesday, June 27, this COM
mittee visited the Attorney Generals
Office and there placed before his as
sistants the German proposition and
offered German assistance. Prior to
that time neither the Chemical Founda-
| ton nor any one in any way represent
ing them nor any one representing any
part Of the American organic chemical
} industry had been asked any question
: in reference to the sale, and subse-
quent to the visit Of the German rep
resentatiyes no request or opportunity
was given to any American interests to
answer the German representations be-
fore the announcement of the intended
, demand was made.
"The second question which has been
continuously asked me is for what other
sale in reference to patents will the
foundation case become a governing
! precedent. In answer thereto, first, the
sale of all wireless patents and plans
to the United States government for
the nominal sum of $14O,000.' Ger
many had obtained the domination in
this country through a patent system
similar to the chemical patent system,
hot
; troll they were all sold to the govern
ment for what, of course, is an made
quate price if you consider the value
to Germany of the control of the wire
less news Of the world.
Second, some $500 German patents
were selected by the army and navy
as having been taken out by the Ger
mans to control our freedom in wag
ing war. These patents covered gun
sights and countless other appliances
and devices either used by our army
or navy or which might be used in the
future. Many of them had been in
fringed upon by tho army and navy
in the winning of the war. The Alien
Property Custodian turned over to the
United States all the German rights
.. and interests as between this govern
ment and German interests to the navy
for the nominal sum of 100000. This
tTduSdCLlOn VIII also nave TO De upset.
Attorney Admits Conference
That such conference took place
between Mr.. Daugherty's assistants and
Levy, Oppenheim and Vandiver on June
27, was admitted by Almuth C. Van
diver, the attorney in question, last
night. Mr.. Vandiver declared, how
ever, that he had information that the
Attorney General had determined to
, institute suit against the Chemical
Foundation, and had so recommended
{ to the President, long prior to his con-
ference with the German representa-
: tives and their counsel. The Washing
ton conference, he added, was for the
purpose of notifying the Attorney Gen.
| eral that the German owners were 60
ing to bring suit, which they did on OF
about July 1, to recover the license
7 fees payable to them under the act.
Oppenheim, Wagner and Holderman
) who are stopping at the Plaza Hotel
after declaring their willingness to be
interviewed last night, changed THEN
, mind when reporters reached the hotel
and refused to discuss the matter.
t Oles Won't Fight to Get