Evening journal., 1922-09-09

SUES TO GET
BACK PATENTS

such patents trade marks etc., te
the government.
Colonel Miller, Alien Property
Custodian, stated today
This actlan IL taken by Attorney
General Dausherty and myself under
orders from the President, and the
suit Is fled before the District Court
in Delaware because the Chemical
Foundation. Ino,, is Delaware cor
poraten. should the government be
successful IN this suit Il will not
mean that the patents, trade marks
and copyrights will go back TO their
former owners, but the title IN the
same will rest IN tho United states
Government through IN Alien Prop
erty Custodian, and will be In the
same category az any other Ger
man, Austrian ana Hungarian prop
erty now held by this office, VIZ; un-
I'll such disposition as Congress may
make OF the same after the question
OF American claims against these
countries is eettled by the mixed
claims tribunal. Any other state
ment must como from the attorney
general"
The suit Is the result OF letter
from President Harding written to
Allen Property Custodian Colonel
Thomas W. Miller under date OF
July /, directing him as custodian.
TO make a formal demand on the
Chemical Foundation, Ino.. for the
return OF the trade marks, patents
and copyrights. which formal de-
mand when made, was refused.
Thereupon Attorney General Harry
VI. Daugherty and Colonel Miller
were directed by the President 10
bring suit against the Chemical
Foundation, Inc, for the recovery Of
this property.
The Government requests that
the court in granting the relief
sought will so shape It's DEGREES and
impose such equitable conditions
that the rights and interests OF all
licensees OF said patents. either from
the Chemical Foundation or the
Federal Trade Commission, may be
protected. The bill specifically
prays that the patents and other
rights as well as the income there
from be returned 10 the government
10 be held by the Alien Property
Custodian and disposed OF by him
as now provided by law or as may
be provided by any future legisla-
tion by Congress.
The bill prays the Chemical
Foundation be enjoined from prose-
cutting the many suits heretofore
brought by It TO recover the license
fees under such patents and other
rights. heretofore paid to the United
States and now in the United States
Treasury. and also asks an in1unc-
uon against the Chemical Founda-
ton to prevent It from disposing OF
or encumbering the patents and
other rights. and from wasting in
come which Il is receiving from
licenses for such patents.
The bill sets forth that President
Wilson, by executive order. attempt
cd 10 give Frank i. Polk certain
broad powers and authority, for
merIy exercised by the President un-
der the act. The government In its
bill does not admit the validity OF
this executive order but submits 20
the court the question Of its validity
including the question as to whether
the President had power or author
ity 10 vest such executive function !
in Mr.. Polk.
The government makes broad and /
general allegations OF a plan TO |
create, and the existence OF, a dye !
and chemical monopoly in the |
United states, which was stimulated I
by the shutting off OF these products !
from Germany upon the declaration |
OF war. The bill Of complaint shows
that before June. 1918. considerable |
had been made in the for
nation Of such a monopoly by a
limited number Of corporations, |
CHIEF among which were the Ma /
tional Anillne and Chemical Com
nanv the General Chemical Com
many. the Solvay Process Company. /
the Samet-Solvay Company, and the
Rarrett Company, all of which in /
1920 were combined into the Allied
and Dye Corporation; and
= dupont de Nemours and Com
,anv. The government further al
ages that the control of the indus
nv was affected by means OF agree
nents between these corporations
md other persons. firms and corpo-
-ations and by means OF trade or
among others, the
American Dyes Institute, the Amer
can Chemical Society, the Chemical
Association OF the
United states, the Textile Alliance,
nc. and their afiliated organiza-
ions. and the government alleges
md charges that by means OF such
methods, agreements and organlza-
ions there had been accomplished
w June. 1918, ian organized and
,nited control and monopoly Of the
sale and distribution
- dves and the ingredients thereof
md of chemicals related thereto or
lsed in connection Herewith in the
United States"
conspiracy Is Charged.
The bill further sets forth that the
,ersous. firms and corporations who
,ad acquired control of the dyestuffs
nd chemical industry In the United
;tates. fearing that at the end OF {
var their monopoly and control
would be weakened by German i'm {
,ortations unless they could obtain {
ontrol of many enemy-owned pat
nts covering these products and
ouid. through such control, prevent {
he importation of such products
nto the United States after the war '
xcept upon the terms and condi- {
ions which they as owners OF the {
atents might prescribe. conceived 6
nd entered into a scheme. combi- {
latinn and conspiracy prior TO or