The Washington times., 1922-07-14
MOSES FLAYS
DYE|NTEREST
AS CONSPIRACY
Senator Attacks du Points for
Alleged Withholding Of
Federal Funds.
Continued from First Page)


will not comment on the popularity
in which these items OF dye pro-
lection are developed. II designed
to purposely mislead, they could
hardly be better arranged"
Charging some OF the dye rates
would place a tariff on water the
same as dyestuffs, Moses charged
the whole schedule was contrary
to the fundamental Republican
principles Of protection" He then
recounted the protective tariffs
enacted in the Underwood bill.
which was effective up until the
war.
chapter OF greed and profiteering
which marked the war era" Moses
continued. "It is significant. how
ever, that Immediately following
the armistice, the dyemakers OF
America, engulfed in the golden
flood of profits which they had
secured, took steps to continue their
stranglehold upon consumers.
"As Allen Property Custodian,
A. Mitchell Palmer seized and held
all German-owned patents in this
country. Associated with Mr.. Pal
mer was Francis p. Garvan who
became Mr.. Palmer's successor
when the latter was translated to
the office Of sAttorney General.
Later, through an amendment to
the trading with the enemy act, the
origin OF which is still shrouded in
mystery, provision was made for
selling the enemy property which
the Alien Property Custodian sup
posedly held In trust.
Charges Conspiracy.
"Ik the agile mind OF Mr.. Garvan
there arose a clear vision Of the
vast advantage to be obtained by con-
centrating these alien patents in the
hands Of private owners. He sought
first the American Dyes Institute
and the American Manufacturing
Chemists Association to aid in the
conspiracy.
The dyes institute gave instant
and enthusiastic approval, and as
result a corporation was organized
to be known as the Chemical Founda-
ton"
Moses then reviewed the attempt
to investigate Caravans office, which
was abandoned when Senator Un-
dcrwood, Democrat, Of Alabama, de-
clared he was about to submit re-
port on seized German patents. The
report died a-borning," Moses added.
"Garvan may be excused for this
dereliction because he was stimuli
taneously Alien Property Custodian
and president OF the Chemical Foun-
dation, while during the same period
he was named Assistant Attorney
General" Moses continued. In these
three capacities he was constantly in
a position to entrap all critics, going
and coming.
Huge Profits Alleged.
"The Chemical Foundation paid for
4,767 patents the sum Of $26O,OOO,
less than the amount required fer
their mere recording. Up to Decem-
ber 81, 1921, the Chemical Founda-
ton had collected $407,37S in royal
ties and license fees, a tidy return
for n profit in less than three years
on an initial investment of $2S0,000.
With sublime effrontery. 1t has
brought suit to recover 6,0S9 from
the Government, representing ac-
crued royalties and license fees COL
lected by the Federal Trade Com
mission under the trading with the
enemy act. This shows that within
within less than three years from its
organization, the foundation has re-
ceived or Is seeking to obtain an in
come OF 81 900. 900. or four times its
original investment.
Whatever the result of Govern
ment proceedings now under way
against the foundation. shall al.
ways believe that II was conceived
by conspiracy and fostered by false
hood. The conspiracy, as I believe,
was formed by Mr.. Garvan, his
associates in the office OF the alien
property custodian, and certain dye
manufacturers"
Heyden Sale Criticized.
Referring to sale of other patents
made by Palmer. Moses pointed out
that the rights of the Heyden Chem
ical Works were sold to st. Louis
firm for $605,000, "a sum so alb
surdedly low that even the pliable
approve II, and the property later
was sold to Allen A. Ryan, of New
York, for more than $1,000, ,000."
THE Chemical Foundation was
organized An the winter Of 1919"
Moses continued. ION April 10, OF
that year, It took the first title to
the patents upon which $1,000, 900
in royalties have been collected. On
February 26, the necessary papers
were executed by Acting Secretary
of State Polk and one week later Mr..
Garvan became alien property Gus
todian. AS such, on April 10, he
sold to himself for $250,0 property,
whose earning capacity thus far dis
closed, indicates II to have been
worth many millions Of dollars. In
fact, the total value Of patents and
trademarks controlled by the Chem
ical Foundation can hardly be less
than $50 900"
Miller's Name Misused.
Moses charged Garvan with using
the name of Thomas w. Miller,
present alien property custodian,
as a vice president OF the Chemi'
cal Foundation" without the con-
sent of Miller himself. Moses de-
clared Miller had compelled Garvan
to halt the use OF his name when
he learned OF II, Moses read a
letter from Col. Miller to support
his statement.
"As another example OF the man,
ner in which dye makers have been
able to hoodwink the public and use
Governmental agencies for their
private purpose" Moses continued
| NI call attention to the indust rial