Evening star., 1922-07-14
||DU POINTS ACCUSED
OF BIC DyEFRAUDS
BY SENATOR MOSES
Held Co-Conspirators With
Chemical Foundation and
Textile Alliance.
TARIFF BILL EMBARGO
PROVISION ASSAILED
Delaware Corporation Charged
With Mulcting U. S. Treasury
During War Time.
BY the Aesociated Press


character against the Chemical
Foundation, Inc: the E. l.. du Pont de
Nemours Company and the Textile
Alliance were made today in the Sen
ate by Senator Moses, republican,
New Hampshire, in the course OF
prepared address in opposition to the
dye embargo provision of the admin
istration tariff bill. Senator Noses
said these organizations were three
of the actors in the gigantic fraud
he was opposing, and added:
These three are significantly inter
locked in their related personnel and
IN their activities; and it is they
whose subsidiaries. officers, stock
holders. lobbyists. paid propagandists
and faxed and kept organizations
have been the most aggressive, avari-
cious, and insolent of all the prof
Iteering crew who pertinaciously
push this legislation"
Senator Moses declared that what
ever the. outcome of the government
proceedings against the Chemical
Foundation, he always would believe
that II was conceived in conspiracy
shsrraS sha f9stersd ,hs ,b by falsehood He
formed by Francis p. Garvan. its
president: his associates in the Of
flee of alien property custodian, and
certain OF the dye manufacturers of
the country"
Order Carefully Prepared.
Calling attention that the founda-
tion was organized in the winter of
1919. Senator Moses said that on Feb
ruary 26 of that year Acting Secre-
tary Polk signed an executive order
which had been carefully prepared
for his signature" by the foundation.
a fhfr izin he ctrsy
enemy patents and trade marks by
the organization.
In this connection he presented a
memorandum of a conversation which
federal official, setting forth that Mr.
Polk, who was acting in the absence
in Europe of Secretary Lansing and
President Wilson, had explained that
he had signed the order upon repre-
sentation that the action TO be taken
was with the full approval of the
Federal Trade Commission, which
was licensing the, patents under au-
thority of the trading with the enemy
act.
The memorandum set forth also
that Mr.. Polk seemed very much dis
turbed" and held several conferences
with officials of the Trade Commits
sion. and had eliminated very strong
of false representations to induce his
signature TO the executive order
Caravans Sale to Self
A week after the order was
signed. Senator Moses continued. Mr..
Garvan became alien property Gus
todian, and las such on April 10 sold
to himself for $25O,000 property
whose earning capacity thus far dis
closed indicates it to have been
worth many millions.
Turning to what he characterized
as 1.-The orgy of falsehood with which
the Chemical Foundation camouhageo
Its real purpose" the New Hampshire
senator asserted that while the foun-
dation had "unctuously" advertised
that it was to carry out educational
purposes in the field of chemistry
it had spent nearly $3eo,oo9 10
| bolster the propaganda ior a n.y.
embargo" He placed in the Record
a number of letters sent to inui-
yiduaIs anu organizations over the
country, in which there was maue
what the senator said was the raise
claim" that the foundation was
. Ssnator Moses also introduced
number of letters to show that the
! Chemical Foundation's agents hau
had the bureau OF education, uhuef
former Commissioner Claxton' ois
tribute articles about chemistry wrN,
ten by r. E. Rose of the chemicai
department of the du Pont company;
As another illustration of how. he
said great agencies of the govern
ment were victimized by the dye
makers of the country and our pup-
Nc agencies turned to use in prNals
propaganda" the senator presehteq
correspondence s. designed rscsn,iU 10 SHOWN Sm
at Chicago, Philadelphia, Rochester.
N. Y; Washington, ID. G.. ana o.ner
cities and now in the National NM
scum here, had been financed oy tne
dyemakers, having been prepared IN
tSe chemical warfare section of the
I War Department. The Correspondence
was between Capt. o. E. Roberts, IL
and the du Pont company tne Ma
tional Aniiine and Chemfcaf Company
and other dye concerns.
nf m. 81. du Pont de Nemours
Company, Senator Moses declared
that the people. through advances
from the federal Treasury during tne
war, mot only financed the ou f4nts
in the tremendous extension OF their
h,;siness. but were also mulcted by
the du Points to an extent wnicn
enabled the company to increase us
nlant value to an admitted $Z2o.oVo,
900, while at the d ssme =, time nns .ax xear
amounted to s12s s,0o0. 900" He charged
aiso that of the $99,250,000 advanced
to the du Points during the war there
remained "unrecouped" on July i.
1922, $3b,QoV,VVV.
World Monopoly Planned.
Tbe senator asserted that the du
Points and the National Aniline and
chemical Company constituted the
mononolistic features of the dye in
dnsfry in his country, and that the du
Pont. company, aside from entering
;nto contract with Levinstein, Ltd,
| q british concern, to divide the world
for the sale of their. dyes, had sought
ais, to enter into world agreement
with the Badische company, the chief
nroducer Of dyes. which, with the
German dye cartel, he added, had
heen held up ''as the boyle men OF the
dye world since the agitation for an
embargo was started.
After the Badtsche company oe-
ciined to enter into the agreement,
senator Moses said the du Pont COM
pany had submitted proposal to the
American trade counsel in China that
his once should ATTEMPT to effect an
arrangement whereby the Chinese
ooyernment would condscate lS.o0o
frade marks held by the Germans for
dives marketed In China and form a
Joint Chinese company or an Ameri-
u-British company 20 license these
trade marks from the Chinese gov
senator Moses added that for more
than a year he had heard nothing "of
| the imperialistic plans of the du
POINTS In Europe or In the orient and