The Connecticut labor news., 1922-07-28

to accept my present statement of tHn
 matter, but insert here an extract from
 the report of A. Mitchell Palmer, filed
 with the President February p, 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"
 PaImer's Version of 1t
 1 MT. Palmer stated in the course of
 the report referred to by MT. Garvan
 ''These patents, as had already been
 indicated, formed 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 1 any fear of American manufacture upon consideration it seemed that
 these patents offered a possible solu- tion for the problem, hitherto unsolv-
 able, of protecting the new American
 dye industry against German competi- l tion 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- 1 tion strong enough to protect them, a real obstacle might be opposed to Ger I man importation after the war, and at | the same time the American industry might be freed from the prohibition en- l 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- l featuring Chemists Association. The suggestion was met with an inStan- 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 a stockholder, the purpose of which Is to acquire by purchase these German patents and to hold them as trustee for American industry. The first president of the Chemical Foundation will be Francis F. Garvan of the New York bar, to whose clear vision and in- defatigable industry I am chiefly tn- debted for the working out of this plan. The combination was not objection able to public policy, since it was so
 organized that any genuine American, whether a stockhOlder of the com pany or not, could secure the benefits
 of the patents on fair and equal terms" A Quasi-Pubiic Idea MT. Garvan 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 attorney-genera1 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: "The founda- ton of the Chemical Foundation was
 an effort to form an organization to
 . r Ivy c O
 time the public interests. Judge In-
 graham of New York and Judge Gray
 of Delaware had charge of drawing
 our charter and our trust agreement
 and our certificate of incorporation.
 We have endeavored to make 1t as nearly a public institution as our laws
 allow, and at the same time to have 1t an official organization. We wanted to sell these patents to the govern n1ent, and if there had been any method by which we could make them
 a 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 more definite and certain fulfillment of the intention and pur- poses of our organization I am certain that the Chemical Foundation and all its stockholders and all who are inter ested in 1t would be glad to conform to the wishes of the committee, be cause, in so far as we have public rec ognition and public support and gov ernment 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"
 MT. Garvan states that the total or gross income of the Foundation has averaged $143, 3,216:65 per year. The rum ming expenses, bare overhead, have averaged $121,971.35, a net excess of $21, ,245.30 or .O49 per cent on the $42S,- | 300 invested, allowing nothing for de- ] preciation. ; The average life of the | patents is eight years, so that 12A | per cent of the $271 $50 cash paid for 1 the patents, or $33,9 per year, | should be subtracted from the appar- l ent net receipts per year, which leaves | an actual annual operation deficit of | SIP, ,7357O. In educational work, MT. l Garvan informs the President, the l Foundation has spent $264,O17.S5, the | entire balance of it's capital.
 Quotes English Prediction
 Firmly maintaining that the Founda- tion is the keystone of the wall raised | to protect the American people from | German chemical domination, MT. Gar van maintains such protection is indis- pensable to the future happiness, health | and safety of the American people, and | quotes from 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 five years time will have dye works and general chemical works l equal to Germany.
 As regards the development of or ganic chemistry for national defense, MT. Garvan calls to his aid testimony by Marshal Foch and the late Field Marshal Sir Henry Wilson to the gen. eral conclusion that a nation thorough , ly equipped chemically may almost | guarantee the peace of the future And |