Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-07-12
Chemical Foundation
Records Washington
War Contract Probe

washington, July 11-(By A. PO
Appearance today of Francis p.
Garvan, former alien property Gus
todian and now head of the Chemical
Foundatio Inc, before the special
war frauds grand jury was said in
official circles to have inaugurated a
sweeping inquiry into every act of
the custodian's Office from it's incep-
ton.
1t was emphasized by the same
officials that the investigation was
designed primarily to establish final
ly the legality of the custodian's acts
and to remove any ground for con-
tinued criticism levelled against the
Office. if such criticism has been un-
justified
A grand jury investigation was
declared by the officials to be the
only method provided for in the
American system Of government to
clear up definitely the controversy.
Formal assurance tina "every
American interest" in the dye pat
ents sold by the alien property GUS
todian in 1919 to the Chemical
Founda ton. will be protected by the
government was made today by At
torney General Daugherty.
Denying that any person connected
with the department of justice had
had any communication with Ger
man interests or individuals regard
ing recovery of patents. Mr.. Daugh-
erty's statement reiterated that in
moving to recover them from the
Foundation. the department was
merely carrying out instructions re-
ceived from President Har-" e.
The statement was interpreted as
having reference to charges made by
Francis p. Garvan-who handled the
sale as the then custodian. subse-
ouently assuming the presidency of
the Foundation-to the effect that
the demand for return Of title to the
patents had been actuated by Ger
man influence.
Mr. Caravan appeared today in re
Spouse to a subpoena. before the
special war frauds grand Jury here
ana turned over u t1dl DUuN tIt
records Of the Foundation. He said
later arrangements had been made
to permit inspection Of the books nv
representatives of the department of
justice.
Prior to going before the grand jury
Mr.. Caravan said. he had refused a
demand of Assistant General Grim
70 inc hnokS
on the ground that he would not
open them to 'Germanic influences"
Attorney General Daugherty's
statement regarding the patent con-
troversy was as follows:
The matter is in legal progress.
I have had no communication with
any German interest or person con-
nected with any interest that the
Germans are supposed to have, or
have had in these patents. nor has
anybody in the department of justice
had communication of any kind with
any of them.
I'VE are continuing to carry out
the Presidents instructions in the
matter.
4nSie Tan DE no OOuDI tndt IL
these patents are returned by orderly
and due process of legal proceedings,
the President and Congress will take
care of every American interest. That
question will be entirely up to Con-
gress and the President if the pa
tents are returned later voluntarily
or by virtue of court order"
The attorney general, questioned
concerning Mr.. Caravans charges that
CASTOR B. Means was associated
with the department of justice in
connection with the Chemical
Foundation matter, said that he
would not discuss Mr.. Means.
Mr.. Means" he said, seemed to
have the i'll will of lots of people
and | think / know the reason"
In reply to further questions as to
whether Mr.. Means had been sus-
pended from the staff of the bureau
of investigation of the department,
Mr.. Daugherty said. Il have not said
that l suspended Mr.. Means"
Court Clears CIothier