The Washington herald., 1922-12-22
Origin of Amendment Providing
for the Retention of Former
German Patents Is Mystery
WAS NOT IN FIRST DRAFT
Restoration Of Dye Rights in
Hands of Custodian Blocked
by Section lust Discovered
BY Universal Service.

AnoCASAoh VI q JohSA SPsAho
che former German patents in
volved in the Chemical Founda-
tion scandal was discovered when
hearings began yesterday on the
Administration bill to return
seized enemy property UP to $10,-
900 value in each individual case.
CREATES SENSATION.
Of sensation among members Of
the House who have bitterly fought
the Chemical Foundation deal. par
ticularly in light Of President Hard
ing's order to Attorney General
Daugherty to institute suit for re-
covery of the patents. The action
demanded by the President now
IS pending in the Federal courts in
Delaware
The joker section provides that
the proposed authorization for the
restoration OF seized property shall
not apply to money paid to the
Alien Property Custodian in the
to any patent, trademark. print.
label. or copyright. conveyed. trans
ferred. assigned. or delivered to the
Alien Property Custodian. or to the
net proceeds received from the sale
OF any such patent, trademark,
print. label, or copyright"
Investigation as to the origin OF
the proposed exemption disclosed
that ii was not in the original
draft of the legislation submitted
by Alien Property Custodian Miller
nor in supplemental suggestions
that he made. Further, it was
declared. the provision did not come
from the Department of Justice,
which acts in the capacity of legal
adviser to the Custodian's bureau.
EXPLANATION SUGGESTED.
One informal explanation sug-
gested by an official who disavowed
any connection with the joker was
that it would hold intact the patents
held by the Chemical Foundation
pending determination of the Gov
ernment's legal action for their
recovery Representatives who
have fought the Foundation and its
efforts TO build up a dye monopoly
pointed out the provision goes much
farther
1t was further pointed out that
the joker contains no clause limiting
It to the time the present litigation
IL pending. but would prevent any
action being taken to carry out the
policy for return of seized property
as provided in the bill, irrespective
Of the outcome of the governments
suit.
GERMAN PROPERTY.
The section specifically provides
that the proposed act shall not ap-
ply to the former German property
in question. Even the small sum of
s25O.00O for which patents worth
millions were turned over to the
Foundation could not be paid over to
the original owners.
Involved in the Chemical Founda-
tion's transaction We're some $500
separate patents. Two of the patents
alone were declared TO be worth
SIC. 200. 900
If the joker Is not knocked out of
the bill in the Interstate and For
eign Commerce Committee, which is
considering the legislation. it is
certain to encounter violent oppo-
sitiOn on the floor of the House
Alien Property Custodian Miller,
the only witness before the COM
mittee yesterday, was asked his
opinion of the proposed exemption
lie replied that in view Of the fact
that he did not initiate the pro-
vision ne would prefer that the COM
mittee get its informal ton from
those urging 1t.
MAY WIND UP AFFAIRS.
Members Of the conor,ittee male
81 plain that unless State Depart
ment representatives, when they
take the stand. can demonstrate
good reason for retaining the limita-
ton. an amendment will be pressed
providing for the winding up of the
Custodian's affairs.
Col. Miller will complete his tes-
timony today. after which the hear
ings will be adjourned until jan
uary 8. II Is planned to close the
hearings and report out the bill