The Washington times., 1922-09-09

IS ALLEGED IN
PATENTS SALE
Government Sues Chemical
Foundation, Of Which r. p.
Garyan Is Head.
ny Universal servies.

by Universal servire.
WILMINGTON. Del. Sept. o.
Branding the transactions as pre-.
tended sales" that were illegal and
unwarranted, the Federal Govern.
ment yesterday filed suit in United
States District Court for the re.
covery Of title to 6.51s former
! enemy-owned patents. patent ap-
plications. trademarks, copyrights
and patent contracts now held by
the Chemical Foundation.
The Government demands the re-
turn Of all these properties and the
| removal OF my cloud upon the titles
caused by' the sales to the Chemical
Foundation, Of which Francis r.
Garvan, who was Alien Property
Custodian at the time OF sac, was
then and still Is president. An ac-
counting is demanded Of all income
and profits derived from such
patents, and the turning over Of
these sums to the Government, less
approximately s27l.000 paid for the
II is alleged that royalties Of
81, 1,153 1886 had accrued to the
foundation upon patent licenses up
to June 80. 1922, and that the
average income from the patents
so licensed is approximately 100000
per year. The patents were sold,
il IL alleged. for less than the
average cost to the inventors In
procuring the patents from the
Patent Office.
Transfers Were Many.
The bill shows there were trans
ferred to the Chemical Foundation
: 4.Sl3 patents, 2S1 applications for
patents, SIC trademarks. 492 copy.
rights, and rights under fifty-six con-
tracts relating to patents. These In
! cluded substantially all the enemy.
owned patents OF any value not pre-
viously disposed of, whether or not
they related to the objects Of the
Chemical Foundation. and that many
| Of them related 10 matters entirely
I outside the scope OF the foundation,
such as machines for making fringes,
aeroplane parts. field and spectacle
! glasses, telescopes and turbine
engines.
The Government charges a plan to
create and the existence Of a dye
! and chemical monopoly in the Uni
I ted States, and that before June.
1918, considerable progress had been
/
monopoly by a limited number OF
corporations. chief among which
| were the National Aniline and Chem
ical Company, the uenerai Chemical
Company, the Solvay Process Com
pany, the Samet.Solvay Company,
and the Barrett Company, all Of
which in 1920 were combined into the
Allied Chemical ana Dye Corpora
| ton and E. I, du Pont de Nemours
& Co.
It is further alleged that by agree.
ments with the American Dyes In.
stitute, the American Chemical So
ciety, the Chemical Manufacturers
Association of the United States, the
Textile Alliance, enc, and their af.
| filiatted organizations, there had
been accomplished by June. 1918, "an
organized and upited control and mo-
nopoly Of the Manufacture. sale and
distribution Of dyes and the ingre.
dents therefor and Of chemicals re-
lated thereto or used in connection
Herewith in the United States"
Conspiracy Is Charged.
These interests. it is charged, en-
tered into a conspiracy prior to or
about November, 1918, to procure
the seizure Of enemy-owned patents
BY the Alien Property Custodian snc
their transfer to themselves or a cor
poration controlled by them. AS
early as June, 1918, 1t is alleged,
Morris r. Poucher and others, rep.
resenting and acting for said con-
spirators," approached the Allen
Property Custodian, A. Mitchell Pal.
mer, and certain OF his assistants.
especially Garvan, then chief of the
Bureau Of Investigation and director
Of the New York office Of the Gus
todian; Joseph II. Choate, jr., attor-
ney in charge Of chemical matters
for the Custodian, and Ramsey Hou-
get, patent attorney for the Custo-
dian, and after many conferences in.
duced Palmer to undertake the seiz.
ure and sale Of the patents.
| So eager were the alleged con-
spirators to consummate their plans
prior to the termination Of the war,
obtained through the alien property
custodian the right for their repre-
sentatives to work day, night and
| Sunday shifts in the patent office
listing the patents to be seized. At.
torneys for the du Points and the
National Aniline and Chemical Com.
pany, also were placed In the Pat
ent Office to select the patents de-
sired "for the purpose Of said scheme
and said conspiracy, "it is alleged.
Garvan In Two Jobs.
The bill sets forth that the Chem
icaT Foundation was organized on
February 10, 1919. that Garvan be-
came Alien Property Custodian on
March 4, 1919, and on March s, 1919,
was elected president Of the Chemi-
cal Foundation. Also Douglas 1.
Mckay, serying as director for the
custodian In certain alien-enerny
corporations, became vice president
of the foundation: George ]. Corhett,
an officer of one Of the chief he
positories Of the custodian, became
secretary. and treasurer OF the foun-
dation: Choate became general cou n;
sci; Heguet became patent attor.
ney, and GArvan, Mckay and Cor
bett comprised the board OF direc-
tors, all continuing their official con.
Il v~rfiona With the 0u a Odia m N affirn