Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-07-25
Al AbAMA SOLON
DEFENDS CARAVAN
IN PATENT ROW
Senator Underwood Also
Backs Chemical Founda-
ton; CritiCiseS Harding
and the Administration.
lR, The Assoeinted Press.l

Washington, July 24.-The Cheml-
cal foundation and its president
Francis z. Caravan, former alien
property custodian, who are being
proceeded against by the govern
ment for the return of German pat
ents, were defended in the senate
today by Senator Underwood, OF
Alabama, democratic leader, who
criticized President Harding and
the administration for the action
taken against them.
Denying that there was fraud, col
/ fusion or conspiracy in the acquisi-
ton of the German patents by the
Chemical foundation, Senator I'M
derwood also commended the rec
ord of A. Mitchell Palmer, former
attorney general and former alien
property custodian, in dealing with
enemy alien property. German in
terests, Senator Underwood said,
We're supporting the administra-
tons course against the Chemical
foundation in the hope, he said, of
securing restitution of property and
also damage claims for its use.
oDDpSpS COMMISSION tiuH'
Senator Underwood's statements
were made during an address in
support of his recent bill to create
an American commission to press
American damage claims against
Germany and Austria, using enemy
alien property seized as a pledge
for payment. Mr.. Underwood OPP
posed the administration plan for
a Joint claims commission or an
other treaty to deal with the claims,
declaring there was no necessity for
further negotiations with Germany
on the subject. He reviewed at
length the alien property legislation
and cited figures showing that
property worth $6o0,000,0O0 was
taken over and control secured of
200 alien corporations.
Quoting from Mr.. Palmer's report
on enemy alien property, Senator
Underwood said that the S250,00O
paid by the Chemical foundation In
securing rights to the 5000 German
chemical patents was adequate"
when the governments right to use
the patents was considered.
"This report" said Mr.. Under
wood, "effectually disposes of the
charge that there was a fraudulent
conspiracy on the part of those In
the alien property custod!an's office
who erected the Chemical founda-
ton and sold these patents to 1t.
The charges have been repeatedly
made that Mr.. Caravan, as alien
property custodian, sold these pat
ents to himself as president of the
Chemical foundation. The entire
plan was devised and perfected be-
fore Mr.. Garvan became allen
property custodian or had any
thought of being appointed to that
office---the entire plan was de-
vised and perfected while Mr.. Pal
1ner was alien property custodian
Stating that formal official state
ments of the Chemical foundation
plan were made in advance, Senator
Underwood continued, "conspiracies
to defraud the government are not
committed in the open light Of day.
Conspiracies to defraud the govern
,nent are never reported to congress
by the conspirators in advance.
Mistaken Theory of Law.
"Now, President Harding has d.
rected the present alien property
custodian to demand a return OF
these patents from the Chemical
foundation to the government. The
president has committed himself to
the doctrine that this sale was
Violation of trust. This Is mis-
taken theory of law, for the title
to the property was vested absolute
ly in the government and the alien
property custodian was not the
trustee for the German owners
German interests, Senator I'm
derwood said, were seeking to have
the latter construction sustained.
Ii this was done, he said, it would
Inevitably mean that the Germans
will insist that the government must
return to the 'trusteeship' the wire
less plants and patents and all pat
ents on war materials. and the great
Hamburg-American and North Ger
man-Lloyd terminals at New York,
which were sold for about $1,000
600. An then the Germans propose
to collect on all patents used by
American citizens and even by the
American government during the
war"
All sales Of enemy alien property