New-York tribune., 1922-07-11
.Carva1l Takes
His Dye Case
To W Washington
Chemical Foundation Head
Leaves for Capital i'm Re
sponse to Second Demand
for Patents Surrender
Ready to Reply, He Says
Repeats Charge That Gas
ton Means and Other
Germans Inspired Move

| Francis p. Garvan, president Of the
Chemica: Foundation, Inc, was in
Washington last night, ready to an
swer the demand Of the government
| for the return of all the German chem
ical and dye patents which had been
seized by the United States during the
war and sold to this company.
! The demand was made on Mr.. Gar
van by Fred E. Wilson, secretary to
Alien Property Custodian Thomas W.
Miller, in compliance with the instruc-
tions of President Harding about a
week ago, when the Alien Property
Custodian was directed to. obtain the
immediate return of all the patents in
possession of the foundation.
| This is the second move the govern
ment has made in its efforts to compel
the corporation to give up the pat
ents, Mr.. Garvan having been served
with subpoena on. Saturday to pro-
duce all the books and papers of the
concern before Federal grand jury
/ in Washington to-day.
Fund Accounting Also Asked
! The formal demand not only calls for
the return Of the patents, Of which
there are about 400, but also REQUIRES
ceived in connection Herewith and re-
quires that no further assignments or
! transfers of the patents be made after
the receipt Of the notice. A duplicate
copy of the demand was also served
on the Corporation Trust Company
Of America, of Wilmington, Del, res
ident representative of the Foundation.
The Foundation was incorporated in
Delaware under the state laws. and
serving of the duplicate demand in
Delaware was for the purpose of COM
plying with technical requirements.
Mr. Garvan said he would make
courteous reply" upon his return from
Washington. 1t is understood that the
Foundation will refuse to give up tho
patents, and will fight the govern
ments attempt to obtain them "all
along the line" 1t was pointed out
that the formal demand specifies no
statute on which the action is based,
no legal authority, does not charge
| fraud in the transfer Of the patents to
the alien property custodian nor makes
F., any other charge.
They do not charge anything" COM
mented Mr.. Garvan. "They just make
g bald demand for all Of our property"
The property was duly bought and paid
for, it was said, and the Foundation will
be prepared to fight what it regards as
any unwarranted seizure by the govern
ment.
Will Mean German Ownership
Mr.. Garvan contends that the return
Of the patents to the Alien Property
Custorian will eventually place them
in the hands of Germans, as the
Treaty of Peace no longer permits the
custodian to sell. He insists that the
investigation into the attack against
the foundation were engineered by
CASTOR B. Means, onetime paid agent
Of the German secret service, who was
known as "Z-13" in the employ Of
Captain Karl Boy-Ed at salary Of
$1,000 a week.
would President Harding have any,
thing to do with such a man or scheme
ii he knew the truth?" asked Mr.. Gar.
van. "The whole scheme has been
conducted under cover and in the dark,
and | am going to Washington to ask
for fair play"
Mr.. Garvan, aroused at what he
called some understanding" con-
cerning the origin and purposes of the
Foundation, went into the matter in
detail. He explained that it was an
absolutely. philanthropic institution"
which had been capitalized at $43s, 900
with about $50 stockholders, repre-
senting the biggest chemical concerns
in this country
"Under our charter" he said, "no
man can make nickel except the peo-
pie who actually put cash into it..
These $50 stockholders can get back
their cash and per cent. None of
the officers Of the concern get cent
of remuneration. I have never re-
ceived an expense account of five cents
or collected nickel in any way, shape
or form, and I have not a odllar's in
terest in the Chemical Foundation"
Capital All Has Been Spent
He explained that all the s43e, 900
paid in as capital has been expended,
that no dividends have been paid, and
that the foundation was just about
making ends meet with respect to it's
running expenses from the returns on
its licenses. These returns amounted
to about $4,000 and some cash, which
the Treasury now has and for which
the foundation has put in formal
claim, as have the original German
owners.
He insisted that the foundation was