Evening star., 1922-07-15
OPPOSE RETURNING
GERMAN PATENTS
Chemists Warn President
Step Would ImperiI U. S.
Dye Industry.

To return the patents involved in
tthe Chemical Foundation case to for
mer German owners would be disas-
| trous to the American chemical in
dustry. President Harding was told
yesterday by the board of governors
of the synthetic Organic Chemical
,, Manufacturers of the United States
Such return of the patents seized
during the war would be of great help
in restoring the monopoly formerly
enjoyed by the German chemical
cartel
On leaving the White House repre-
sentatives of the association said the
President had given them a consid-
crate audience. adding that they all
were agreed that the court action
projected by the government against
! the Chemical Foundation, Inc. to
clear title to the patents was the best
procedure under the circumstances.
Charles H. Herty, president of the
chemical manufacturers organization,
said he was convinced that Mr.. Hard
ing had not been informed las to the
utter confusion which would ensue
in the American industry" in the
event of a return of the patents to
their former ownership.
Memorandum Is Left.
The delegation left at the White
House memorandum reviewing in
detail the situation which had led to
the seizure of the German patents
and their sale; at a nominal price. to
the Chemical Foundation. 1t was en-
phasized that the corpora tion's pro-
spective profits were limited by its
charter, that it has thus far paid no
dividends and that control Is vested
in five trustees, none of whom hold
Y
had been no American chemical in
dustry before the war because of the
strangle hold held by the Germans
through their patents, the memoran-
dunn estimated the present American
investment to be about $100,000,000.
Senator King Of Utah Joined in the
attack on the Chemical Foundation in
the Senate yesterday. and declared that
President Harding was to be congrat-
ulated for having done his duty" in
instructing the Department of Justice
to proceed against the foundation for
the return of the patents and trade
marks. He characterized as high
handed and indefensible" the action Of
Mr.. Garvan in selling these patents and
trademarks to the foundation.
Trust Law Violated.
Assailing the American Dyes Insti-
tute. Senator King declared that this
was a combination Of 80 per cent Of the
dye manufacturers Of the United States.
He described it as an illegal open price
association in violation of the
antitrust laws" and charged that the
Dupont Company and the Allied Chem
ical and Dye Company were the chief
contributors to the funds Of the insti-
tute by reason of their dominance in the
dye business.
The Utah senator declared the dye
interests were all tied together and
that domestic producers through the
advisory committee to the War Trade
Board controlled importations Of dyes
as well as domestic production. He
argued that the domestic industry
was fully able to meet foreign COM
petition and that the chemical indus
try of the country was not a puny
infant, having an invested capital
of five billions of dollars and an out
put valued at three and one-half bill
lions annually.
Dye Embargo Question.
Senators McCumber. republican,
urged that the Senate leave to the
courts the trial of the Chemical Foun-
dation, declaring that the sole Ques-
tion before the Senate was whether
the dye embargo should be continued.
Senator Frelinghuysen argued that
national policy" to protect the Amer
lean dye industry from German DOM
ination and also to prevent the coun-
try again finding itself, with respect
to chemicals, in the situation it was
at the outbreak of the world war.
Charging that agents of German in
terests had been active in the capital
fighting the dye embargo. Senator
Frelinghuysen expressed belief that
Germany would consent to surrender
her trade with the United States in
fabrics, toys and metals to regain the
trade in dyes.