Evening journal., 1922-09-09

4
tedlan and certain OF his assist
ants. and especially Francis p.
Garvan. who was then and a long
time prior thereto, had been Chief
of the Bureau OF Investigation and
also director Of the New York Office
OF the Allen Property Custodian, and
who continued TO occupy THE posi-
| tlon In the organization OF the Allen
Property Custodian until March 3,
1919, when he was appointed and
became Allen Property Custodian,
and urged upon the Allen Property
Custodian the pretended necessity
for the protection OF American in
dustry In securing control Of owner
ship of these enemy-owned patents.
The government further alleges that
after many conferences with the
Allen Property Custodian these
parties Induced him TO undertake
the seizure and sale OF these
patents.
The government alleges IN It's bill
that so anxious wers the parties to
this aller,d conspiracy 20 oonsum-
mate their plans prior 20 the termi-
nation OF the war that they obtained
the right through the Alien Property
Custodian 20 have Representatives
in the patent oflloe work day and
night shifts and also on Sundays to
list the patents seized. II Is further
alleged that the patent attorneys
for the duPonts and the National
Anillnc and Chemical Company ware
placed In the patent ofice TO 20
over the records and select the enc
my-owned patents which were de-
sired by this group "for tho purpose
OF said scheme and said conspiracy"
and after these Lists were made they
were turned over 20 n representa-
tive OF the Allen Property Custodian
for the purpose OF ceiling them 20
the organization 20 be formed by |
this group. which, when organized. |
became the Chemical Foundation,
Inc.
The governments bill contends that |
the patents which were turned over |
by the Allen Property Custodian in |
this manner were not used IN con-
nection with any corporation or
business which the Alien Property |
Cusscs<ian contemplated selling. as
wa -epresented to Congress by the |
Allen Property Custodian for giving /
for seizing such patents.
Allie alton is made by the govern
ment that 10 further this said
scheme or conspiracy" the firms.
and associations men
toned, acting through their repre-
sentatives. induced Garvan, Chaote
and Hoguet and others TO incorpor-
ate and organize under the laws OF
Delaware, The Chemical Founda-
ton, Incorporated, as a devise for
acquiring by purchase from the
Alien Property Custodian and TAX
ing title TO the enemy-owued pat
ents, copyrights, trademarks. etc.
and TO Issue licenses for the use and
enjoyment OF them.
It IS further alleged that the group
IN the so-called conspiracy under
wrote the financial requirements OF
the Chemical Foundation. Incor-
porated, 20 the extent OF s460,600
and list OF subscribers is set out.
and that parties 70 the alleged con-
spiracy advanced the money for the
expenses OF seizing the patents and
organizing the corporation.
In its bill the government alleges
that Frank L. Polk Issued two or
ders. dated February 2. and April 5,
1919. undertaking TO authorize the
Allen Property Custodian TO sell at
private sale without public adver-
tisement TO the Chemical Foundation
upon such terms and conditions as
The Allen Property Custodian might
such patents. etc. which
the Custodian had seized or might
seize which he might determine
related 70 the purposes OF the Chem,
cal Fou ndation as set out in its char
Ter.
The Government further alleges
that the orders OF Frank /. Polk
we're in fact prepared by or at the
Instance OF the Chemical Foundation
and at the instance and procure
nent OF the persons, firms and cor
Dorations in control OF the dyestuff
md chemical industry "in pursuance
II the scheme and conspiracy"
II is further alleged that Francis
?. Garvan as Allen Property Custo-
iian. being also president of the
Chemical Foundation, executed 20
eparate instruments attempting to
ssign patents. etc, 10 the Chemical
during the period from
April 10. 1919, TO March l. 1921. The
asst assignment attempted to ratify
nd confirm all previous attempted
ssignments to the Chemical Founda-
ion.
It Is further alleged that in many :
instances a part of the nominal con- .
liberation named for said patents
nd other rights was paid by the de-
endant before the sale had been =
made or consummated, and that
ONE of the patents and other rights
mentioned had not in fact at the
ime Of the assignment been seized
nd were not in. the custody or con-
rol of the Alien Property Custodian. Y
The bill further alleges that after {
'homas w. Miller became Alien 7
property Custodian, two additional
of alleged sale were
lade to The Chemical Foundation, o
ated April 81. 1921. and November a
1921, respectively; that such in c
truments were prepared at or by u
he instance Of the defendant and c
nat Miller executed said instruments
without knowledge OF the facts
erein set forth and other necessary
nd essential facts in relation TO the Z
LEGGED SALE and that said facts a
ere withheld from him with intent Z
nd nurpose 10 secure the execution II
: hf,, 10 Tho Instruments aforesaid, II