Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-07-25
DENIES FRAUD
BY HOLDER Of
ALIENS GOODS
Underwood Defending
Administration of For
mer u. S. Custodian.
Says Chemical Found
alton Came Lawfully
by Enemy Patents.

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 de-
Tended in the senate Monday by Sena
tor Underwood of Alabama, democratic
leader, who criticized President Hard
ing and the administration for the
action taken against them.
Denying that there was fraud. col
fusion or conspiracy in the acquisition
OF the German patents by the Chem,
cal Foundation. Senator Underwood
also commended the record of A..
Mitchell Palmer. former attorney gen
eral and former alien property Gus
todian. in dealing with enemy owned
property.
German interests. Senator Under
wood said. were supporting the admin
istration's course against the Chemical
Foundation in the hope, he said, of
securing restitution of property and
also damage claims for its use.
Senator tnderwood's statements
were made during an address in sup
port Of his recent bill to create al
American commission to press Amer
lean damage claims against Germany
and Austria. using enemy alien prop
erty seized as a pledge for payment.
Mr.. Underwood opposed the admins
tratiOn plan for Il joint claims com
mission or another treaty to deal with
the claims. declaring there was no ne
cessity for further negotiations with
Germany IN the subject. He reviewed
at length the alien property legisla-
ton and cited figures showing that
property worth $500, 900 was taken
owe and control secured of 200 alien
corporations.
Payment Was Adequate
Reading from Mr.. Palmer's report on
enemy alien property. Senator Under
wood said that the $3.50 900 paid by
the Chemical Foundation in securing
rights to the 5000 German chemical
patents was adequate when the gov
erDment's right to use the patents was
considered.
This report said Mr.. Underwood.
"e~ffectually disposes of the charge that
there was a fraudulent conspiracy on
the part of those in the alien property
c~ustodian's office who erected the
Chemical Foundation and sold these
patents to it. The charge has been
repeatedly made that Mr.. Caravan as
alien property custodian sold these pat
ents to himself as president of the
Chemical Foundation. The entire plan
was devised and perfected before Mr.. |
dian or had u thought of being ap- |
pointed to that office-the entire plan
was devised and perfected while Mr..
Palmer was alien property custodian. /
Stating that formal. official state
ments Of the Chemical Foundation plan
were made in advance, Senator Under
wood 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 ad-
vance
Now. President Harding has direct
ed the present alien property custodian
to demand a return of these patents
from the Chemical Foundation to the
The president has com
mitted himself to the doctrine that this
sale was a violation of a trust. This
is a mistaken theory of law for the title
to the property was vested absolutely
in the government and the alien prop
was W lIlf IL uSltt lcI /
the German owners.
Germans Support Harding
German interests. Senator Under
wood said, We're seeking to have the
latter construction sustained. If this
was done. he said, it would inevitably
that the Germans will insist that
the government must return to the
'trusteeship' the wireless plants and
and all patents on war mate
rails. and the great Hamburg-Ameri-
can and North German Lloyd terminals
at New York, which were sold for about
100000. And then the German pur-
pose to collect on all patents used by
citizens and even by the
American government during the war"
All sales of enemy property, Senator
Underwood said. were first approved
by a sales committee appointed by
Wilson.
The senate judiciary committee took
up Senator Underwood's bill and APP
Senators Cummins. Iowa; Ster-
ing. South Dakota. republicans. and
democrat. North Carolina. as
subcommittee to continue further