The Washington herald., 1922-07-12
CARAVAN DISCLOSES
DYE FIRM RECORDS
T0GRAND JURYMEN
Refuses to Comply With
Request to Turn Over
Company's Books.
CRITICIZES PROBERS
viii Permit Justice Depart
ment to Examine Papers
In New York.

With an air of suspicion toward
certsin Department of Justice off,
cials,@ Francis P. Garvan, former
Alien Property Custodian and now
president of the Chemical Founda-
ton. yesterday appeared before the
special grand jury which is inves-
tigating war fraud" contracts, and
offered the books and records of the
concern for Investigation.
However. when Assistant Attorney
General ]. W. II. Grim made a for
NAL demand that these records.
which are said to show completely
the transactions whereby more than
sixty disputed German dye patents
and other former alien-owned prop
erty was acquired by the concern
Garvan flatly refused to comply.
'I can trust an American grand
jury, he said. after stating that at
the proper time he would lay all
the records of the transactions be-
fore the jurymen. but when II
comes to placing any trust in the
people concerned In the tnvestiga-
tion, / shall refuse and do refuse to
hand over the records"
Appears Before Jury.
After being refused the records,
Grim permitted Garvan to appear be-
fore the grand jury.
Garvan remained closeted in the
grand jury room for more than
twenty minutes. making the follow
ing statement as he emerged:
aI appeared before the grand jury
with the books and records in ques-
tion. i was treated with every con-
sideration possible. An agreement
was. entered into between the grand
Jury and myself whereby the books
will be returned to my New York
offfce and there to be examined by
auditors of the Department OF Jus
tice-an examination which might
Rave been made any time by merely
Rocking at my door. l am to re-
turn at some future time at the
convenience OF the grend jury for
complete hearing"
volunteered. He Says
Questioning the regularity of the
issuance of a subpoena requiring
him to appear before the grand
Jury, Garvan stated that the docu-
ment was not signed by any judge
OF the District Supreme Court and
appeared to be improperly drawn.
He made some other remarks in this
connection to the effect that he had
come here Voluntarily
He further stated that, in his
opinion, the investigation regarding
the patents is a form of camoufiage
thrown about the activities OF the
Department of Justice to veil its
preparations to file a suit in equity
to compel the return or these
patents
Assistant Attorney General Grim
stated that he believed that this
particular case is unusually irreg-
ular and that action will be taken
by the grand jury as soon as it COM
pletes Its investigation into the
Phillips lumber case.
Caravans allegation that the De
partment of Justice Is resorting TO
camoufiase was lightly treated by
Grim, who declared that II such was
true, 1t would amount to bald
and fragrant misuse of power, and
that a grand jury can only be used
by the government In appropriate
and strictly legal ways to investi-
gate and hear evidence concerning
criminal cases.
1t is generally believed that the
Chemical Foundation inquiry will
be far-reaching and that a num-
Der of former and present govern
ment officials will be questioned.
Coupled with the Chemical Foun-
dation. the Bosch Megneto case will
be brought forward and aired. The
Bosch patents and property were
handled by former Attorney General
A. Mitchell Palmer. predecessor to
Garvan as Alien Property Custodian