Every evening, Wilmington daily commercial., 1922-07-03
SAYS ACTION
MAY RESTORE TRUSTS
Former Alien Property Custo-
dian Comments on President
Harding's Move.

Mitchell Palmer. former alien property
custodian and attorney general OF tho
United States. yesterday issued the
following statement In reply to Presi-
dent Harding's letter demanding re-
turn OF German patents by the Chemk
cal Foundation:
1T Is a great shame that the war
and it's lessons should be 80 soon Tor
gotten. II these patents are recover
ed from the Chemical Foundation they
cannot be again sold to AMERICAN
citizens, and the inevitable next step
will be return to their former Ger
man owners. We will then be back
| to the old days when we were at the
absolute mercy of tho German dye
trust. | doubt II that Is the kind OF
return to normalcy the American peo-
| pie want.
Before the war Germany controlled
| the dye and chemical industry az the
world. with all its byproducts In the
| line of medicines. explosives and gases.
When the war broke we were en-
tirely without dyestufrs, and the civil
lied world was in imminent danger
from the German scientific knowledge
and economic control OF explosives
and gases Germany built up this con-
! trol by her Systematic violation OF
the spirit of our patent laws. She took
out American patents, not for the pur-
pose CT developing an American chemi-
cal industry. but to stifle II.
These patents were seized by the
alien property custodian under author
lty of the trading with the enemy act.
We had no means OF determining their
actual money value. There was no
American chemical inustry to aid us
in fixing It, If we had sold them to
private interests we might have sold
them for grossly less than their value
and got nothing hut n new American
mono poly to take the place OF the Ger
man trust So we conceived the plan
of conserving them for the general
public and TO build great American
Industry free from the evils OF monopo-
listiC control.
We formed the Chemical Founda
ton. sold the stock I'm small blocks &c
persons interested I'm new Chemica
industry, trusted the stock FOR n Ions
period Il years in the hands of five
disinterested American citizens of high
character and undoubted patriotism
, provided for non n-exClusive licenses or
equal terms to all comers. the pro
cceds to he used after payment Of
- per cent to stockholders I'm research
' and educational work in the develop
meut of the chemical science.
Francis y. Caravan was made preei
dent che Is not "A stock holder. beCaus
, he was so cirCumstauCed that he Coul
and would work without Compensa { io
for service or personal expenses. w
then sold all the patents. about $500 i
p. number. under authority OF law and 1
= strict conformity herewith, to IN
- Chemical Foundation for s30O, 900. Bu
- that was not the only consideration.
There were two other consideration
= of enormous value. First, the free rigt
), to the United States Government
- use ali the patents, without any Al
y counting as long as the patents wer
/, IN existence. and second. the buildin
- up by the plan outlined OF compel
tive chemical industry in the Unite
States 10 the great material benei
= OF the people in time OF peace and Il
their safety and security in time
war.
The result has fulfilled our hop
and has proportionately disturbed Il
A., German plans in the war after q
war; The world knows now that Il
- next war will be chemists war. TT
Chemical Foundation has assur
- America of a proper measure of pr
- paredness. Strike IL odwn and Ge
- IS again al our throats.
- many is again al our throats
American chemical industry Is I
greatest victory Germany has W,
since Pershing turned back tho
legions at Chateau-Thierry. 1t will
80 hailed with delight in every Germ;
y, household, both here and in the fathe
ii: land. But will real Americans sta
~ for this belated surrender"