The Washington times., 1922-07-06
SU|FPROP0SED
;T0RECOVER ALL
ALIEN PATENTS
Government to Act II Chemical
Foundation Is
Obdurate.
Alien Property Custodian Thom-


as W. Miller and representatives
Of the Department of Justice con-
ferred late yesterday on the form
Of the demand to the Chemical
Foundation for the return of its
patent holdings to the Govern
ment.
The demand will 20 forward to
Francis p. 1Garvan, president. OF
tho Chemical Foundation, today.
II Garvan refuses to comply,
which he has indicated will be
his course, the next step will be
the filing of a suit In equity,
probably in the District Supreme
Court.
VIII RepIevin Title.
This suit win be to replevin title
to the patents and tie up all assets
Of the foundation, pending an ac'
counting to the Government Of all
license fees and royalties collected
on the patents. said to exceed
;4oo. 900.
Any criminal action in connection
with the sale of these patents is up
to the Department OF Justice. Gus
todian Miller said today.
The suit in equity will be brought
against the Chemical Foundation, as
Incorporated under the laws OF
| Delaware, and not against the indi-
vidual officers or stockholders. II
the Government il successful in its
suit, however, II will be up to the
stockholders to make good the
royalties collected over and above
the $266.40 paid the Government
for the patents, since II has been
shown by a financial statement of
the foundation that Its entire cash
J dssets have been dissfpated and its
books show a deficit Of many thou
sands OF dollars. This probably
would take the form Of a stock as
sessment.
IF this office is successful and
the patents are returned to the
custody Of the alien property Gus
todian, they will be in the same
category as all other German. Aus
trian, and Hungarian property.
namely, awaiting further disposition
by Congress" Custodian Miller said.
Under the law we have full
authority to license these patents to
American concerns for their use.
II they are returned to the custody
of this office. American concerns
will have perfect right to apply for
license, exclusive or non-exclusive,
under the trading with the enemy
| act. the same way as we grant ex-
1 elusive or non-exclusive rights to
Americans on other patents that
have not been sold or assigned to
anybody.
Since this Administration, .ws
have been most careful in licensing
tany Of these patents. trademarks
or copyrights, to see to II that
clauses are inserted, II the property
is returned before the life Of the
patent expires. the former owners
will be protected. During this Ad
ministration we have not issued
any of these exclusive licenses
without the assent 'of the former
owner.
Bases OF Suit.
This Administration In not goins
to do anything that will be unfair
to Americans. but on the Other
hand, you cannot get around the
fact that this office is trustee and
guardian for all OF these proper
ties, and the head Of this office ID
officially charged with the trustee
ship and guardianship Of thest
properties.
An examination OF records in tn,
alien property custodian's office to
day revealed there is on deposit II
the Treasury $ss4.000 in royalties
and fees on licenses issued by tn,
alien property custodian and tn,
Federal Trade Commission, preced
ing the sale Of the patents to the
Chemical Foundation. II was to ge
possession OF this huge sum tina
the Chemical Foundation, late II
June. filed suits against th'
Treasurer Of the United States ant
about sixty licensees, claiming .
was the lawful owner OF the patents
by virtue Of the sale by the alieI
property custodian's office.
And It was to protest these royal
ties and prevent them falling int
, the hands Of the Chemical Foun
dation that Custodian Miller on fat
urday brought legal proceedings II
the Federal courts in New York
Delaware, New Jersey, Illinois anc
Pennsylvania.