The Snowflake herald., 1922-07-28

and by him forwarded to the Congress,
and by that Congress made q pubic
document and most widely commented
on by the press Of the country
Pamer's Version of IL
Mr.. Palmer stated in the course or
the report referred to by Mr.. Garvan:
''These patents as had already been
indicated, formed q colossal obstacle to
the development Of the American dye
stuff 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 it seemed that
these patents offered a possible sOlu-
ton for the problem, hitherto unsolv-
able, of protecting the new American
dye industry against German competl-
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 instltu-
tion strong enough to protect them, a
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 or
chemical manufacturers, notably the
Dive Institute and the American Manu-
featuring Chemists Association. The
suggestion was met with an lnStan-
taneous and enthusiastic approval ana
as a result a corporation has been or
ganiZed to be known as the Chemical
Foundation Unc.), In which practically
every important manufacturer Will be
a stakeholder, the purpose Of which Is
to acquire by purchase these German
patents and to hold them as trustee
for American industry. The first
president of the Chemical Foundation
will be Francis p Caravan 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-PubIic Idea
Mr.. Caravan goes on to state that at
that time he was a dollar year man,
with no expectation whatever OF be-
coming alien property custodian; that
it was only when Attorney-General
Gregory resigned and Palmer was APP
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-
ton of the Chemical Foundation was
an effort to form an organization to
represent as nearly as possible at that
1nnUQ n
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 if there had been anyj
method by which we could make themI
a working force and still have themI
owned and controlled by the govern
ment, it would have relieved us Of al
great deal of responsibility, and i'll
there is at this time 2ny suggestion for|
modification or amendment of our plan|
which will insure In the minds of the|
committee more definite and certainl
fulfillment of the intention and pur-l
poses of our organization / am certainl
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
ognitiOn 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. Caravan states that the total or
gross income of the Foundation has
averaged $143.216.65 per year. The run
ming eXper SEES. bare overhead, havel
averaged $121 ,971.35, a net excess of
So, 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, so that 121s
per cent of the $271 $50 cash paid for
the patents, or $33,9S1 per year,
should be subtracted from the appar-
ent net receipts per year, which leaves
an actual annual operation deficit of
| $12, 1850 In educational work, Mr..
Garvan informs the President, the
Foundation has spent $264,017.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.. Car
van maintains such protection is indis-
| penSable to the future happiness, health
and safety of the American people, and
quotes from 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