New-York tribune., 1922-07-02
Harding Orders
Alien Chemical
Grants Return
CONTINUED from page one)

ing the senate dyestufs lobby investig.
cation recently concluded.
The letter of the President to Mr.
Miller, made public at the White House
after Attorney General Daugherty had
been in conference with the Executive
follows:
"My attention has been called by the
Department of Justice to the fact that
corporation, known as the Chemical
Foundation, has brought suit against
the Treasurer of the United States and
certain licensees of the Federal Trade
Commission for an accounting alleged
to be due the said Chemical Foundation
on royalties due it for the use of GER
tain patents originally seized under
the authority of the Alien Property
Custodian and sold to the Chemical
Foundation by the custodian during the
previous Administration.
"On the face of such an action it
became SO apparent to me that an in
quiry should be made that asked for
a report by the Department of Justice
on the sale of such enemy property to
the Chemical Foundation.
1T appears that the sale was made
at so nearly nominal sum that there
is reason to believe that this govern
ment has not faithfully observed the
trust which was implied in the seizure
Of this property. The circumstances
relating to the entire transaction are
of such character that full investi-
cation becomes public duty. More
over, l feel that your Office is obli-
gated to maintain the sacred character
of ho ~.
erty custodian is intrusted by law.
"You are thereby directed to pro-
ceed forthwith as follows:
"1-Make written demand upon the
Chemical Foundation, Inc, in form to
be approved by the Attorney General
to Immediately return, transfer and
assign to the Alien Property Custodian
all patents, trade marks, copyrichts.
contracts, applications or other prop
critics or rights transferred to it by
the Alien Property Custodian as fore
said, and to account to it for any and
all rents, profits, license fees or other
proceeds thereof realized by said
Chemical Foundation, Inc, from said
property or rights or any of them from
the date Of transfer thereof, to the
chemical Foundation, Inc, to the date
of restoration.
be advised or approved by the Attorney
General by suit or otherwise to fully
and in every way respect the rights or
interests of the United States and any
other person or corporation interested d
therein, in and to the properties and
rights aforesaid and any proceeds, in
come or profit therefrom in the hands
of the Chemical Foundation, Inc, or
Its officers, agents or employees.
In carrying out these instructions
Attorney General"
Attorney General Daugherty in his
statement said:
The Presidents instructions with
respect to the return to the govern
ment of the property taken over by
the Chemical Foundation will be car.
ried out with all dispatch.
After many months of investigation
by the officials of the Department of
Justice, and in the face of much in
terference. the point was finally
reached when it was possible to make
report to the President.
The action taken by the President
is justified by the records of this de.
partment.
"The investigation was in progress
by this department for many weeks. It
will be continued and the necessary
successive steps to carry out his In
structions will be taken. The investi-
cation into this case proceeded most
expedtiously, in view of the vast
number of records examined and the
widely scattered location of the va
rious properties and witnesses. This
is all that the Department of Justice
can say about the case at this time"
Garvan Criticizes Order
Francis P. Garvan, of the Chemical
Foundation, said last night:
president Hardings communication
for nothing less than the destruction
America. This industry has been built
up by the investment of S150,OO0,O0O
of American capital in the assurance
of freedom from German control, which
the transfer of these patents to the
Chemical Foundation guaranteed.
This action was taken without no
tice to the American organic chemi-
cal industry or to the Chemical Foun-
dation or to any of its officers or to.
in fact, any one equipped to speak
for the essential American industry
in peace or war. 1t has been taken,
am informed, after full hearing of
the representatives of the German car
tel, the German dye trust and the
German government and without op-
portunity being given for any Ameri-
can interest to be heard in reply.
"Many Investigations have shown
that not one dollar of individual profit
or gain has ever accrued to any in
dividual connected with the founda-
ton"