Evening star., 1922-07-24
DYE PATENT SALE
UPHELD IN SENATE
Underwood Denies Fraud in
Purchase by Chemical
Foundation.
GERMANS PUSHING FIGHT
Senator Declares Effort Is Made to
Set Precedent to Pave Way
for Many Claims.

The Chemical Foundation and its
president. Francis P. Garvan, former
alien property custodian, who are
being proceeded against by the gov
eminent for the return of German
chemical patents. were defended in
the Senate today by Senator Under
wood of Alabama, democratic leader,
who criticized President Harding and
the administration for the action
taken against them.
Denying that there was fraud. coll
lusion or conspiracy in the acouisi-
ton of the German patents by the
Chemical Foundation, Senator Under
wood also commended the record of
A. Mitchell Palmer, former ATTORNEY
General and former alien property
custodian, in dealing with enemy
alien property. German interests,
Senator Underwood said, were sun
porting the administrations course
against the Chemical Foundation in
the hope, he said. of securing restitn.
ton OF property and also damage
claims for its use.
Believes Treaty Unneeded.
Senator Underwood's ststemer+s
were made during the address in SUP.
port Of his recent bin to create an
american commission to press Amer
lean damage claims against GERMANY
ana Austria. using enemy alien prop.
erty seized as a pledge for payment
Mr.. Underwood opposed the adminis-
tratlon plan for a joint claims COM
with the claims, declaring there was
no necessity for further negotiations
win Germany on the subject He
reviewed at length the alien prop
erty legislation and cited figures
showing that property worth 5000. :
100000 was taken over and control
secured of 200 alien corporations.
Quoting from Mr. PalmeEs report
on enemy alien property. Senator
Underwood said that the $3.50, 900 paid
by the Chemical Founda ton in Sc
curing rights to the 5000 German
when the governments right to use
the patents was considered.
Plans Antedated Garvan.
This report" said Mr. Underwood,
"effectually disposes of the charge
that there was fraudulent con-
spiracy on the part of those in the
alien property custodian's Office who
erected the Chemical Foundation and
sold these patents to it. The charge
has been repeatedly made that MIR.
Garvan as alien property custodian
sold tneSe patents to himself as presl-
dent Of the Chemical Foundation. The
entlre plan was devised and perfected
before Mr.. Garvan became alien prop
fn6t 10 1, i
oeing appointed to that office-the en-
tire plan was devised and perfected
while Mr.. Palmer 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 gov
ernment are not committed in the
open light of day. Conspiracies to de-
fraud the government are never re-
ported to Congress by the conspira-
tors in advance.
Now President Harding has di-
rected the present alien property Gus
todlan to demand return of these
patents from the Chemical Founda-
ton to the government. The
President has committed himself to
the doctrine that this sale was a vio-
lation Of a trust. This is a mistaken
OI law. fOf the title TO
the property vested absolutely in the
government and the alien property
custodian was not the trustee for
the German owners"
Sees Threat In Precedent.
German interests, Senator Under
wood said. were seeking to have the
latter construction sustained If
this was done, Senator Underwood
said, it would Inevitably mean that
the Germans will insist that
the government must return to the
'trusteeship' the wireless plants and
patents and all patents on war ma
terials. the great NEUTRALITY-SUSPICIOUS.
and North German Lloyd terminals
at New York. which were sold .
for about s7.ooo.ooo. And then the
Germans propose to collect on all
patents. used by American citizens
and even by the American govern
ment during the war for the very
purpose of putting an end to the war
which the Germans started"
All sales of enemy alien property,
Senator Underwood said, were first
approved by a sales committee ap-
pointed by former President Wilson.