Evening star., 1922-07-02
Letter Of President.


MY attention has been called by
the Department of Justice to the fact
that a corporation known as the
Chemical Foundation has brought
suit against the treasurer of the
United States and certain licensees
of the Federal Trade Commission for
an accounting alleged to be due the
said Chemical Foundation on roy
alties due it for the use of certain
patents originally seized under the
authority of the alien property Gus
todian and sold to the Chemical
Foundation by the custodian during
the previous administration. On the
face of such an action it became so
apparent to me that an inquiry
report by the Department Of Justice
on the sale of this enemy's property
to the Chemical Foundation. 1t ap-
pears thns the szIs was made at 50
nearly a nominal sum that there is
reason to believe that this goverp-
meft hAs noe faith faiiy J 81 served tSss 1
trust which was implied in the
cumstances relating to the entire
transaction are of such a character
that full investigation becomes a
public duty. Moreover. I feel that
your Office is obligated to maintain
the sacred character Of the trust to
which the alien property custodian
is committed by the law.
forthwith proceed as follows:
Il. Make written demand upon the
Chemical Foundation, Inc, in form
to be approved by the Attorney Cen
eral, Immediately return, transfer and
assign to the alien property Gus
todian all patents, trademarks, copy
rights, contracts. applications or
other properties or rights transferred
to it by the alien property custodian
as aforesaid, and to account to you
for any and all rents, profits, license
fees, or other proceeds thereof re-
allied by said Chemical Foundation,
Inc, from said properties, or rights
or any of them, from the date of
transfer thereof to the Chemical
rouHudtioii, 1HS., " tAS udtS u TeStl-
tuition.
"2. Take any other action which
may be advised by the Attorney Cen
eral, by suit or otherwise, to fully
and in every respect protect the
rights or interests of the United
States and any other person or cor
noration interested therein, in and to
the properties and rights aforesaid.
and any proceeds, income or profits
therefrom in the hands of the Chemi-
cal Foundation, Inc, or its officers,
agents or employees.
I'm carrying out these instructions
you will act upon the advice of the
Attorney General"
Dnueherty Pledges Haste.
Mr.. Daugherty, in his statement,
said the Presidents instructions
with respect to the return to the
government Of the property taken
over by the Chemical Foundation
will be carried out with all possible
dispatch. =.
"After many months of investi-
cation, he added, "by the officials
of the Department of Justice and in
the face of much interference, the
point was finally reached when it
was possible to make a report to. The
President.
1.-THE action taken by the Presi-
dent is justified by the records of
this department"
Attacks I'm Congress.
Notable among the attacks on the
Chemical Foundation in Congress, it
was recalled yesterday, was made by
Representative Frear, republican, Wis
consin, who a little less than year ago
stirred up row with charges Of dye
monopoly headed by the Chemical
Foundation Company, and that
Francis P. Garvan and Joseph
Choate, jr., while employed by the
government in the alien property
custodian's Office in positions Of control.
conceived the idea Of seixing alien
patents then on file in the patent Office
and taking them over to themselves and
their associates in a private capacity
under the name Of the Chemical Foun-
dation Company" at q private SALE
for $3.50, 900. or about two per cent Of