The Washington herald., 1922-07-06

FAIR play Tor Americans, Dul u
square deal. also. for Germans. is the
policy of the administration in clear
ing the way for disposing of the
clalms pending between the two gov
ernments as an outgrowth of the war
This policy, which contemplates the
strict preservation for the Germans
of their property and rights seized
in this country. appears to be the real
basis of President Harding's sensa-
tional demand for return Of patents
and other rights sold to the Chem
'ical Foundation.
During an informal talk on the
Foundation case. upon his return to
Washington yesterday, Alien Property
Custodian Miller replied to charges
made in different quarters that the
governments action was primarily in
the interests of Germans.
Not Unfair to Americans.
This administration" he declared.
''is not going to do anything that
will be unfair to Americans; but. on
the other hand. you cannot get around
the fact that this Office is trustse and
guardian for all of these properties.
He then revealed some new and in
teresting facts of the politico-legal
tangle, which promises to become
court and Congressional sensation.
For one thing, he tempered the
thunder emalating from some quar-
tiers by declaring that the case against
the Foundation could not be classed
primarily as a part Of the adminfstra-
tion's anti-war fraud prosecutions.
Also, he said. 'it is in absolutely no
sense political"
VIII Take Same Status.
But the outstanding point in Mil
Ier's explanation, which comprehends
the government winning the case. is
this:
II the property now held by the
Foundation is returned to the alien
property custodian. it will take the
same status as all other seized Ger
man property. Under the policy OF
the administration since peace with
Germany was declared. licenses for
use of formulas. copyrights, trade
marks. etc. would then be issued only
after consultation with and on author
ity of the original German owners.
Since this administration" Mil
Ter said, I'VE have been most care
full in licensing patents, trade
marks or copyrights" American
licensees have been cared for, he
said, by insertion of clauses in their
contracts which would protect them
in event the patent properties were
returned to the former-enemy own
ers before the term of the patent
expired. For the protection of
German owners. he said, I'VE have
not issued any exclusive licenses
ha Of the fnrn1ar
owner"
In these circumstances the Ger
man owners. alone. are now and
would be privileged to elect
whether anyone should share eX-
formulae.
Granting for the moment that the
government will win its suit
against the Foundation-a question
which probably won't be settled for
a year or more-there would be
created the possibility OF a German
dye monopoly. or even an American
dye monopoly in the United States
with the aid and consent of the
Germans. With this outlook it ap-
pears inevitable that the President,
through Congress, will establish
some special policy relative to the
dye patents.
Miller already has begun work
with Justice Department attorneys
on the letter he will send to Fran
els p. Garvan. president of the
Foundation, demanding return of
it's seized German holdings. In
event of Caravans expected refusal
to comply with the request. the
government through the Depart
ment of Justice viii file a suit in
equity in the District courts. While
fraud may not necessarily be openly
charged. the governments suit will
he based primarily on these two
questions:
Based on Two Points.
WAS the price paid for the
seized German property a proper
one?
2-was the transaction properly
conducted?
Growing out of this suit, It was
explained. would be an accounting
of the Foundations earnings and
scores Of companies. with scores OF
millions Of dollars at stake. would
be involved. II the government
We're victor. there would arise the
question of refunds on both sides.
In connection with the latter
phase of the case, the alien prop
erty custodian has just filed suits
in New York. Pennsylvania, Illinois
and New Jersey to retain funds
paid under licenses issued for the
use Of German. Austrian and Hun
earian-owned patents. and SO forth.
previously seized under the Wilson
administration.
Miller. in announcing the suits,
explained that he was acting on
behalf of the former-enemy owners
Of the patents. and so forth. "and
by SO doing. these funds. which ag-
greGate many thousands of dollars,
will be retained for the benefit of
the owners"
There would seem to be involved
in the Chemical Foundation case.
also. therefore. the question Of
what is to be done with the money
paid into the Foundation for IL
censes on it's patent holdings, II
the government wins its case.
Westinghouse Company First