The New York herald., 1922-07-10
CARAVAN SUMMONED
BEFORE GRAND JURY
Continued from First Page.

weeks interval for the Government to
prepare. They conceal the fact that on
May 23. the Government was notified.
They know full we'll that these suits
which are made the excuse for the sud-
den action have no interest whatever for
the United States Government. They
are not against the Government. The
Treasurer simply holds a fund under
Section 10 of the trading with the
enemy act. and they are brought within
the provisions of that act simply to
decide what proportion of that fund be-
longs to Germany and what to American
citizens or corporations.
Again they state that the founda-
tion is claiming royalties under the
patents while they were in the trustee
ship of the Alien Property Custodian.
This is false.
THE next paragraph states that the
Chemical Foundation had indirectly at
tackled the original conveyance of the
Alien Property Custodian. Does that
statement deceive any one? Does any
one believe that the Chemical Founda-
tion has brought suit to attack It's own
title?
THE naive explanation of the visits
of the representatives of the German
cartel to this country and to the De-
Germans have had able lawyers in this
country ever since the armistice.
II repeat that at the conference the
German Commission stated that Ger
many deemed 1t injudicious for 1t to
attack the title of the Chemical Foun-
dation direct and that they then urged
that these gentlemen in the Attorney
Generals office persuade the Attorney
General and the President to authorize
that action and proffered to them all
the assistance they could give.
"One of the assistants then asked
Mr.. Oppenheim II he could supply them
with the evidence of the value Of these
patents in order to prove the inade-
quacy of the price paid by the Chemi-
cal Foundation. Mr.. Oppenheim replied
with the question. Value TO whom p
In so answering Mr.. Oppenheim de-
stroyed the entire position of the De-
partrnent of Justice.
HE might well have gone on and
said that to Germany they meant a
great step forward in her determination
to regain her pre-war organic chemical
monopoly of the world, with all the
power and wealth that that entailed /:
that to America they meant the free
dom Of her s4,000.000 a year of In
ustry from the power M that mcnop-
oily: that 1t meant the ability without
expense to be ever ready In advance for
any future war. and that 1t meant the
opportunity for the future development
of American medicine"
Concerning the value OF the patents to
the development of American medicine,
Mr.. Garvan refers In his statement to
Salvarsan. which. he says, is the only
known cure for syphilis, with which
100000 of our people are afflicted"
The manufacture of Salvarsan Is COW
cred by the patents transferred TO the
Chemical Foundation. Before the war,
when the German Cartel had monop-
oily on the product, there was but one
agent selling Salvarsan In this coun-
try. according to Mr.. Garvan. that
agent being Herman A. Metz. who now
is In Europe. and the lowest price at
which II was sold was $3.50 to the in
dividual and $3.50 to the Government
In 1914, when the war broke out. the
prices went as high as $50. so the prod
uct was available only to the wealthy
Germany II is charged, deliberately cut
off the supply in order to bring pressure
upon our State Department to influence
England TO raise the blockade. We were
able to make the remedy In this country
only after enormous funds had been
spent by the Government and by pri-
vate individuals, Mr.. Garvan states, and
the invention had to be discovered anew.
AS result of the policy OF organizing
the Chemical Foundation. he adds. we
row have six manufacturers, and the
price has dropped from s1.50 to Is cents
to the Government. and from $3.50 TO
so cents to the individual. The con-
sumption has increased tenfold, and Mr..
Garvan. asserting that never again will
there be 100000 syphilitics In this
country. asks. Where has been the
profit?"