South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-07-03
CAPITAL STIRRED
BY ANNOUNCEMENT
OF CHEMICALPROB
Harding Move Against Chem
zeal Foundation, Inc,
Comes as Surprise.

WASHINGTON. July 2.-CBy A.
'P)-The move of the Harding ad-
ministration against the Chemical
Foundation inc. was the chief topic
of discussion Of official Washington
on this sizzling hot Sunday.
The determination OF the admin
istration TO take steps against the
foundation, which was organized by
Francis p. Carvin and several of his
associates in the alien property Gus
tOdians office under the Wilson ad-
ministration. was revealed in a letter
made public Saturday at the White
House in which the president m
structed Thomas w. Miller. the pre-
sent alien property custodian 20 de-
mand return OF all patents. copy
rights and other property transfer
red 20 the foundation. The move
great proportion of official Washinn-
ton and for this reason it was asub-
Jet Of conservation Sunday wher-
ever officials met.
Officials closely connected with
the administration move declined TO
panying statement by Atty General
the presidents letter and the accom-
supplement what was contained in
DauEherty saying that the transfer
OF patents 10 the foundation had
been under investigation for some
months by the department OF justice
and that the presidents instructions
would be promptly carried out. AL
len property custodian Miller as well
as Mr.. Daugherty were out Of the
CITY and A. Mitchell Palmer. who
preceded Mr.. Craven as allen pro-
perrv custodian and under whose
administration Of that office many OF
the German patents in question were
seized could not he found in the
capital
See War Fraud Connection.
other ofhcials while not acquain-
ed with the details OF the move, saw
in IL one OF the steps in the admins
frauds prosecution. They also saw
the prospect Of considerable discus
sion Of the matter in the senate.
where the Chemical Foundation has
often been the subject OF fire from
the republican side and has been
as warmly defended by democratic
members Most house members had
left the capital due 20 the six weeks
adjournment taken Friday, but
among the republicans still here Rep.
woodruff. republican. Michigan. waS
about the only one who would COM
men- Mr. woodruff. who has at
tackled the department Of justice on
the grounds that II had been remiss
in prosecution OF war frauds. de-
scr.bed the presidents action as
"snaendid" and added that the
course was fully justified in view OF
he charges made IN congress al
y-arguos times that the foundation
had ACQUIRED from the alien pro-
nertv-custodians Office German pa
tan+s worth from $4,000, 600 70
$50. 600. 600 for approximately $3.50
600.
DemoC ratio members OF congress
|gererally have pointed 10 Mr. Gar
vans. testimony before the special
senate dyestuffs lobby investigating
committee headed by Sen. Short
ridge. republican. California. as an
answer 10 these charges. Mr.. Gar
van before that committee said the
foundation acQuiredits patents.
.c copyrights and other similar pro-
perty through sale made under an
executive order issued by Acting
Sec'y 81 state Frank /. Polk az the
direction OF PresT Wilson The
sale provision he told the committee
was contained IN an amendment 20
the trading with the enemy act
Mr. Garvan also. when before the
committee. submitted a financial
statement for the corporation show
Ing that the stock OF the corporation
consists Of $500. 900 six percent cum
iulative referred and 100000 COM
/ mon stock with dividends limited 10
I six percent. All profits above that
limit he testified were 10 be used in
educational and research work in
the dye and chemical industry.