, 1922-08-23

and by him forwarded TO the Congresh,
and by that Congress made a pubic
document and most widely commented
on by the press of the country"
PaImer's Version Of II
MI. Palmer stated In the course OF
the report referred to by Mr.. Garvan:
These patents, as had already been
indicated, formed a 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 froJu
any fear Of American manufacture
upon consideration 1t seemed that
these patents offered a possible solu-
ton for the problem. hitherto unsolv-
able, of protecting h new American
dye industry against German competi-
tion after the war The idea was
accordingly conceived that II the Ger
man chemical patents could be placed
In the hands of any American institu-
ton strong enough to protect them, a
real obstacle might be opposed to Ger
man Importation after the war, and at
the same time the American industry
might be freed from the prohibition en-
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-
featuring Chemists Association. Che
suggestion was met with an inStan-
taneous and enthusiastic approval, and
as q result a corporation has been or
ganized to be known as the Chemical
Foundation (Inc.). in which practically
every important manufacturer will be
a stakeholder. the purpose Of which Is
to acquire by purchase these German
--a~-k- --I a. L-lI Ah~r. ratAn
for American industry. . . The first
president of the Chemical Foundation
will be Francis p. Garvan Of the New
York bar, to whose clear vision and in
defatigable industry I am chiefly in
debted for the working out of this plan.
The combination was not objection
able to public policy, since 1t was so
organized hat any genuine American,
whether a stakeholder Of the com
pany or not, could secure the benefits
Of the patents on fair and equal terms"
A Quasi-Publie Idea
Mr.. Garvan goes on to state that at
that time he was a dollar 4 year man,
with no expectation whatever OF be-
1t was only when Acknowledgement
Gregory resigned and Palmer was APP
pointed attorney-general 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 vas
an effort to form an organization to
represent as nearly as possible at that
time the public interests. Judge In
graham of New York snd Judge Gray
Of Delaware had charge Of drawing
our charter and u trust agreement
and mr. CQrftHrofo NJ Recommendation
We have endeavored to make II 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
ment, and II 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. 1t would hav relieved us of a
great deal of responsibility, and II
there is at this time any suggestion for
modification or amendment Of our plan
which will insure In the minds Of the
committee a more definite and certain
fulfllment 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 II 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
eminent recognition and government
support, we become more eficient and
become more able to carry out the In
tentions which are In our hearts, and
mlGds."
Mr. Garvan states that the total or
gross income of the Foundation has
averaged S143.216.65 per year. The run
ming expenses. bare overhead, have
averaged S121 .971.35, a net excess Of
$21, 245.30 or .049 per cent on the $685.
900 invested. allowing nothing for de-
probation. The average life of the
patents Is eight years, so that 12h
per cent of the $271. $50 cash paid for
the patents, or $33, 9S1 per year,
should be s%ubtracted from the appar-
ent net receipts per year, which leaves
an actual annual operation deficit of
$12,735.70. In educational work, Mr..
Caravan informs the President, the
Foundation has spent $2e4,017. IS, the
entire balance of its capital.
Quotes English Prediction
Firmly maintaining that the Founda-
ton Is the keystone of the wall raised
to protect the American people from
German chemical domination, Mr.. Gar
a maintains such protection is indis-
pensable to the future happiness, health
and safety of the American people, and
quotes from a 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
equal to Germany.
AS regards the development of or
ganic chemistry for national defense,
Mr.. Caravan calls TO his aid testimony
by Marshal Foch and the late Field
Marshal Sir Henry Wilson to the gem
eral conclusion that a nation thorough
ly equipped chemically may almost
guarantee the peace OF the future. And
as regards Its Importance in the de-