Every evening, Wilmington daily commercial., 1922-09-09
DAuoHERTY SUES HERE
TO RECOVER PATENTS


should order = private sale. giving his
therefore; that II was the
opinion OF tho officers OF tho govern
ment. including tho then attorney
general. that tho alien PROPERTY Gus
todian had no right TO take over
patents and similar rights; and that
a bill was introduced. by request OF
the allen property custodian. in Con-
Eress, giving such rights. and tho
general counsel OF the alien property
to mako a complete DISPOSE
ton Of corporations no was DESTROYS
u selling.
The bill Of complaint further alleges
that tho power concerning patents
was then Eavcn TO tho alien property
by another rider TO an
urgent deficiency bill dated November
1918. only one day after tho armis-
sice with Austria and only q week be-
fore the armisticc with Germany.
Executive Order Challenged.
The bill sets forth that President
Wilson. by executive order. attempted
to give Frank l.. Polk certain broad
powers and authority formerly exer-
cised by tho President under tho act.
This was about tho time President
Wilson left for the peace conference
at Paris. The government In its bill
does not admit the validity OF this
executive order. but submits to tho
court tho question as to Its validity.
including the question as to whether
the President had power OF authority
to vest such executive function In Mr..
Polk.
The government makes broad and
general allegations OF plan to create,
and the existence OF, a dye and chemi-
cal monopoly in the United States,
which II alleges. was stimulated by
the shutting on of these products
from Germany upon tho declaration
OF war. Tho bill of complaint states
that before June, 1918. considerable
progress had been made in the forma-
ton of such a monopoly by lirpit-
ed number of corporations, chief
among which were the National AMI
line a Chemical Co.. tho General
Chemical Co.. tho Solvay Process CO.,
the Samet- Solvay Co. and the Barrett
Co, all OF which in 1920 were combin-
ed into the Allied Chemical and Dye
Corporation. and f. i. du Pont de Ne
mours Company. The government
further alleges that the control OF the
industry was effected by means of
agreements between these corpora
tons and other persons. firms and cor
porations and by means OF trade or
CARNATIONS among others. the Areri-
can Dyes Institute. the American
Chemical Society, the Chemal Manu-
facturers' Association OF the United
States. the Textile Alliance, Inc. and
their affiliated organizations, and the
government alleges and charges that
by means OF such methods. Agree
ments and organizations there had
boon accomplished by juno. 1915. IAN
organized and united control and
monopoly OF the manufacture. sale
and distribution OF dyes and the IN
gradients thereof and OF chemicals
related thereto or used in connection
herewith IN the United States"
Tho bill further alleges that the
persons. firms and corporations who
had acquired control OF the dyestuffs
and chemical industry IN the United
States. entered into combination
prior 10 or about November. 1918. 70
procure the seizure of such enemy
owned patents by the alien property
custodian and the transfer by him 10
themselves or a corporation controll-
ed by them. 1t is further alleged that
In pursuance OF such plans that such
persons. firms or corporations as early
as June. 1918. through their represen-
tatives approached the alien proper
~ custodian and certain OF his as
sis,ants. and especially Francis p
Caravan. who was then and for a Ions
time prior thereto, had been chief OF
the Bureau OF Investigation and also
director OF the New York Office of the
alien property custodian, and who
continued 10 occupy this position IL
the organization OF the alien property
custodian until March 3, 1919, when h,
was appointed and became alien prop
erty custodian, Joseph H. Choate
Jr., who was then and for long tim,
prior thereto had been an attorney fo
the alien property custodian il
| charge OF chemical matters in tn,
| Bureau of Investigation of the aliel
| property custodian and who continue,
TO occupy that position for some time
and Ramsey Hogue;. who was the,
and for long time prior thereto ha.
been patent attorney for the aliel
property custodian and who continue,
10 occupy that position for some time
and urged upon the alien propert,
custodian the pretended necessity 70
the protection OF American industr,
in securing control of ownership 0
these enemy-owned patents. The gov
eminent further alleges that afte
many conferences with the allie
property custodian these parties in
duced him 10 undertake the seizur
and sale OF these patents.
The governments bill sets forth tn
allegations tending 10 disprove tn
claims of the Chemical Foundation Z
be a philanthropic association. an
describes in detail the organization @
this corporation.
The government alleges that tn
organization Of this corporation com
b'ned Into the Chemical Foundation
Incorporated. substantially all VIII
might be interested in the purchase c
any OF these enemy-owned patent
which the alien property custodia
might offer for sale, In order tina
there might be no competitive bic
ders. The government alleges ths
an a part OF the plan all of the CON
mon stock OF the Chemic6 Founda
ton was placed in a voting trust fc
period OF II years. which is III
I life Of any OF the youngest of III
patents, and that the corporation pre-
vided that no common stock shoul
be issued unless placed in this votin
trust. II is further alleged that tn
board OF directors OF the Chemic;
Foundation, had authority TO deter
mino to whom licenses for sue
| paterlts niRht h6 granted and the fes