Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1922-08-10

to accept my present statement Of the
matter, but insert here an extract from
the report of A. Mitchell Palmer, filed
with the President February %, 1919,
and by him forwarded to the Congress,
and by that Congress made a public
document and most widely commented
on by the press of the country"
Palmer's Version of II
Mr.. Palmer stated in the course of
the repost referred to by Mr.. Garvan:
These patents, as had already been
indicated, formed q colossal obstacle TO
the development of the American dye
stuff industry. Evidently they had not
been taken out with any intention Of
manufacturing in this country or from
any fear of American manufacture
upon consideration it seemed that
these patents offered possible solu-
ton for the problem, hitherto unsOlv-
able, of protecting the new American
dye industry against German competi-
ton after the war :. The Idea was
accordingly conceived that If the Ger
man chemical patents could be placed
In the hands OF any American institu-
ton strong enough to protect them,
real obstacle might be opposed to Ger
man importation after the war, and at
the same time the American industry
might be freed from the prohibition en-
forced by the patents against the man
ufacture of the most valuable dye
stuffs. Accordingly these considerations
were laid before various associations Of
chemical manufacturers, notably the
Dye Institute and the American Manu-
featuring Chemists Association. The
with InSton-
taneous and enthusiastic approval, and
as a result corporation has been Or
ganized to be known as the Chemical
Foundation (Inc.), In which practically
every important manufacturer will be
d stockholder, the purpose Of which Is
to acquire by purchase these German
patents and to hold them as trustee
for American industry. E. The first
president of the Chemical Foundation
will be Francis P. Caravan of the New
York bar, to whose clear vision and In
defatigable industry I am chiefly In
debted for the working out Of this plan.
The combination was not objection
able to public policy, since 1t was so
organized that any genuine American,
whether a stakeholder of the COM
pany or not, could secure the benefits
of the patents on fair and equal terms"
A Quasi-Publlc Idea
Mr.. Caravan goes on to state that at
that time he was a dollar year man,
with no expectation whatever of be-
coming alien property custodian; that
1t was only when Attorney-General
Gregory resigned and Palmer was ap-
pointed encouragement that Palmer
asked him to take the custodian's
place Three months later, he writes,
he testified before the Ways and Means
Committee Of the house: 1.-THE founda-
ton Of the Chemical Foundation was
an effort to form an organization to
represent a. nearly as possible at that
time the public interests. Judge In
graham Of New York and Judge Gray
Of Delaware had charge Of drawing
e1Y charter and our trust agreement
and our certificate Of Incorporation.
We have endeavored TO make Il as
nsariy a public institution as our laws
allow, and at the same time to have
Il an official organization. We wanted
TO sell these patents to the govern
ment. and II there had been any
method BY which we could make them
4 working force and still have them
owned and controlled by the govern
ment, It would have relieved us Of a
great deal Of responsibility, and If
there IS at this time any suggestion for
modification or amendment Of our plan
which will insure in the minds of the
committee a more definite and certain
fulillment of the intention and pur-
poses Of our organization l am certain
that the Chemical Foundation and all
it- rtp Nj oil ,,-b ;o+D
ested in it would be glad to conform
to the wishes o. the committee, be-
cause, in so far as we have public rec
Ognition and public support and gov
eminent recognition and government
support, we become more efficient and
become more able to carry out the In
tentions which are in our hearts and
minds"
Mr.. Garvan states that the total or
gross income of the Foundation has
averaged $143, 21G.G5 per year. The run
ming expenses, bare overhead, have
averaged $121, 97I33, a net excess of
So ,245.30 or .0+9 per cent on the, SIPS
900 invested, allowing nothing for de-
preciation The average life Of the
patents is eight years, so that 1917
per cent of the $271,S50 cash paid for
the patents, or S33,9S1 per year,
should be subtracted from the appar-
ent net receipts per year, which leaves
an actual annual operation deficit of
S12, 1870. In educational work, Mr..
Garvan informs the President. the
Foundation has spent S264,017.S5, the
entire balance Of Its capital.
Quotes English Prediction I
Firmly maintaining that the Founda-
tton Is the keystone Of the wall raised
10 protect the American people from
German chemical domination, Mr.. Gar
van maintains such protection Is indis-
pensable to the future happiness, health
and safety Of the American people, and
quotes from a recent open letter to
parliament written by James Morton,
largest carpet manufacturer OF Eng
land. "Organic chemistry is the key to
the world of new values and that
America in Ave years time will have
dye works and general chemical works
equal to Germany.
AS regards the development Of or
ganic chemistry for national defense,
Mr.. Caravan calls to his aid testimony
by Marshal Foch and the late Field
n 49,