Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-07-24
herman PATENTS
SEIZURE DEFENDED
Senator Underwood criticizes
President for Action Against
!, Chemical Foundation
CONSPIRACY CHARGE DENIED
By Associated P-css


y Washington. July 24.-The Chemical
Foundation and its president, Francis
p. Garvan. former Alien Property Gus
todian, who are being proceeded against
/, By the Government for the return of
German chemical patents, were defend
cd in the Senate today by Senator I'm
derwood. who criticized President
Harding and the Administration for the
: action taken against them.
Denying that there was fraud. COL
lusion or conspiracy in the acquisition
Of the German patents by the Chemi-
cal Foundation, Senator Underwood
also commended the record of A. Mitch
,ell Palmer. former Attorney General
and Allan Property Custodian. in deal
ing with enemy alien property. Ger
man interests. Senator Underwood said.
were supporting the Administration
course against the Chemical Founda-
tion in the hope of securing restitution
. Of property and also damage claims for
Its use.
Senator Underwood's statements we're
made during an address in support of
: his recent bill to create an American
commission to press American damage
I, claims against Germany and Austria,
using enemy alien property seized a.
q pledge for payment.
Opposes Claims Commission
Mr.. Underwood opposed the Admin
istration plan for a joint claims COM
mission or another treaty to deal with
the claims, declaring there was no ne
cessity for further negotiations with
Germany on the subject. He reviewed
at length the alien property legislation
and cited figures showing that property
worth 5000. ZOO, 900 was taken over and
control secured of 200 alien corpora
tions.
Quoting from Mr.. Palmer's report
on enemy alien property, Senator Tn
derwood said that $3.50. 900 paid by
the Chemical Foundation in securing
rights to the 5000 German chemical
patents was adequate when the Gov
ernment's right to use the patents was
considered.
( "This report" said Mr.. Underwood,
'effectually disposes of the charge that
]. there was n fraudulent conspiracy on
the part of those in the Alien Property
Custodian ) office who erected thc Chem
p ical FourGai ion and sold these patents
to It. The charge has been repeatedly
made that Mr.. Garvan as Alien Prop
erty Custodian sold these patents to
himself as president Of the Chemical
Foundation. Tho entire plan was de-
vised and perfected before Mr. Gar
van became Alien Property Custodian
or had any thought of being appointed
to that office-the entire plan was de-
vised and perfected while Mr.. Palmer
was Alien Property Custodian.
Stating that former. official state
nents of the Chemical Foundation plan
were made in advance, Senator Under
wood continued:
"ConspiracieS to detraud the Gov
ernment are not committed in the open
light of day. Conspiracies TO defraud
the Government are never reported to
Congress by the conspirators in advance.
"A Thinks President Erred
y "Now President Harding has d.
rected the present Alien Property Gus
todian to demand a return of these pat
ents from the Chemical Foundation to
the Government The President has
committed himself to the doctrine that
this sale was a violation of a trust. This
is mistaken theory of law. for the
title to the property vested absolutely
in the Government and the Alien Prop
erty Custodian was not the trustee for
the German owners.
German interests, Senator Underwood
said. were seeking TO have the latter
construction sustained. II this was
done, he declared, II would lneN!tdnlE
mean that the Germans will insist that
the Government must return TO the
.trusteeship the wireless plants, pat
ents, all patents on war materials and
the great Hamburg American and
North German Lloyd terminals at New
York which were sold for about 81
600 900.
The Senate Judiciary Committee took
up Senator Underwood's bill and ap-
pointed Senator's Cuminins, Iowa /;
Sterling. South Dakota, Republicans,
and Overman. Democrat, North Caro-
lima, as a sub committee to continue
-l,,,th.. ,,pci1nrotinp