The New York herald., 1922-07-25


joint claims commission Senator Lodge
added that he would not favor giving
such commission power to decide
whether Germany was bound to pay
American claims. but the commission, he
said. should only fix. the amounts due.
This was opposed by Senator Under
wood, who said he favored an American
commission to fix American claims and
that American claimants might be de-
layed indefinitely II their claims were
placed In the hands of a Joint COM
mission.
Senator Underwoo1s denial of any
fraud collusion or conspiracy In the
acquisition of the German patents in
cluded a criticism Of President Harding
and the Administration for the action
taken against the Chemical Foundation
and Mr.. Garvan.
German Interests Aiding.
German interests, Senator Underwood
said. were supporting the Administra-
tion's course against the Chemical F'oun-
dation in the hope. he said, of obtaining
restitution of property and also damage
claims for its use.
Quoting from Mr. Palmer's report on
enemy allen property, Senator Under
wood said the S250,000 paid by the
Chemical Foundation in securing rights
to the 5000 German chemical patents
was adequate" when the Governments s
right to use the patents was considered.
This report said Mr.. Underwood.
"eifectually disposes of the charge that
there was fraudulent conspiracy on
the part of those in the alien property
custodian's Office who erected the Chem
ical Foundation and sold these patents
n Ot,a ,av~rn l,ae kaa ,t1Il lrx
made that Mr.. Garvan as alien property
custodian sold these patents to himself
as president of the Chemical Founda-
tion. The entire plan was devised and
perfected before Mr.. Garvan became
alien property custodian or had any
thought of being appointed to that
ofice-the entire plan was devised and
perfected while Mr.. Palmer was alien
property custodian"
Stating that formal, official statements
of the Chemical Foundation plan were
made in advance Senator Underwood
continued
"Conspiracies to defraud the Govern
ment are not committed In the open
light of day. Conspiracies to defraud
the Government are never reported to
Congress by the conspirators in advance.
Now President Harding has directed
VIC PASSSiS diiSti PiOPSity SdStooidH "
demand a return OF these patents from
the Chemical Foundation to the Govern
ment. The President has committed
himself to the doctrine that this sale
was a violation of a trust.
Mistaken Theory of Law.
This is mistaken theory Of law, for
the title to the property. vested abso-
lutely in the Government and the alien
property custodian, was not the trustee
for the German owners"
German interests. Senator Underwood
said. were seeking to have the latter
construction sustained. If this was
done. the Senator said. 1t would 'in-
evitably mean that the Germans will
insist that the Government must return
to the 'trusteeship' the wireless plants.
patents and all patents on war ma
terials. the great HamburgAmerican
and North German Lloyd terminals At
New York, which were sold for about
S7,000,000. And then the Germans pro-
pose to collect on all patents used by
American citizens and even by the
American Government during the war
for the very purpose Of putting an end
to the war which the Germans started"
All sales of enemy alien property,
Senator Underwood said, were first
approved by a sales committee appointed
by former President Wilson.