New-York tribune., 1922-07-06
Government IN /
Sue for Return
Of Alien Patents
Move to Recover ChemiesI
Rights From Garvan Said
To Be Step for Defen,s
of Actions for Royalties
Sixty Cases Are Pending
Federal Demand Believed
Made in Effort to ses
tie Legality of the Sak

WASHINGTON, July 5.-Ths ne,
Of the Administration TO recover ir,-
the Chemical Foundation, Inc. all sls
enemy patents purchased by that o..
ganization in 1919 from the then ai.,
Property Custodian. Francis P. ca,.
vim, was declared in official circles To-
day to be logical step on the part If
the government to defend suits brosstt
against it to recover royalties a.
lected from the licensing Of iasa
patents.
II was said there are more than slrs
suits alreacy pending against IL
Treasurer of the United States 70 n
cover royalties which nave accrued 81
a result of licenses issued by The Fsi-
eral Trade Commission under su.heriT
of the trading with the enemy act
Alien Property Custodian ThonssF.
Miller announced to-day that be saald
make formal demand this weekat
Chemical Foundation for the nsuncf
the patents, in conformity with Pres
dent HarGing's instructions. In III
event Of q refusal, Mr.. Miller said
suit in equity Immediately would
filed in the Supreme Court Of the Ds
trict of Columbia. He deaIiAed to ds
close the basis of such suit or to aS
cuss the causes which led TO the nes
at this time to recover the patsasi
He denied emphaticslly. however, ~
politics was involved.
Results of Inquiry Withheld
Department of Justice officials sF
declined to disclose what had been q
veloped by the investigator seisn'a
to by Attorney General Daaghertg d
statement issued Saturday co'asiss
with the Presidents letter to Vasse
dian Miller. Mr.. Daughsrty ssid ~
ords Of the Department Of Jasha
showed the President had susassA
reasons for his instructions TO rees''a
the patents.
In official circles outside the peEaF
ment of Justice and the Alien pfsTss
Custodian's Office however, it wasa.
that while the government was
prepared to charac,sri4e the sss ~,
the enemy patents = lns Foanasls,, oaa'.l.,
cas- clean as a hounds tooth,. ns',s,. :.
was it prepared to say that taen :.
fraud or anything criminal inss.ss 80
Up TO the present, it was SAID ss,.. 4.
has bee, no suggestion OF fraud y "a !.
transaction by which Mr. Garssa' =. =
Alien Property Custodian. sold tas 4
tents for s251,000 to the orgahslss'
Of which he is now president.
Compelled TO Defend Snits i,
Confronted with the soits ,..;,.j
against the Treasurer OF the W us i
States by the Chemical Foundssl,v1,,s ~.
was explained. the Department. - -, ~
tice was compelled TO defend las s.sSs.
or be placed in ths position o. M
moneys out of the Treasury = n
Foundation in the face OF VICE. VICE.. i
pressed doubt" as to tae vaslan,
the Foundations title to the ps1asan's ~ 81
The Administratiou 1t vas ss'a, ,,.ss
in mind the numerous attasss .ss
in Congress and elsewhere on V. s.ssk
of the German patents for tne N
nal" sum involved, and wanted 2 /.
into court with all the faets j., NJ
logical first step the Presiasss, Dr.
said to have been advised by ~ y
partment Of Justice that nlosos i, II
cover the patents would settle IN
time the question Of Legality d
sale. which was said to hisp -
whether thsre was "sufscien:
sideration' paid by the purchases
Sale of Patents Questsohtd !. !
Administration lawyers are ssm ssan,,.
question the right of the Wilson e. u.
istration, as a matter OF ias. .ns.s k
the patents even for the pusrspii pEssp
making them available to Ah,s. s.r. III
dustry on non -monopolistic te's lid
to develop an industry which " .snsty
time had been controlled by vss ass
"No matter what the puaYr al
former Attorney General Psiusa usaapsSi
Mr.. Garvan was in creating the = ~
tion," an official said, we NJ
fronted with a cold question
and fact" a. ~
While Custodian Miller was III IA
pared to-day to nake pess. .est
grounds on which a suit ~ aa.sa;,''s t'a
would be filed if it became nsnbji,bk
as indicated by Mr.. Garvan ps1lls rsls
statement that he would ~ ',stads.s ads.s
the patents, officials OF the css s,auI3
office said that two courses e.sd d g
Spsn Spsis for rsda the sUaio acton, Or the rhss.
pie expedient Of contending u sss saa
was " void because there was ~ pI
cient monetary considersI,ssSs I..sS ts
over. In the latter case fraua asaid
nak haxa "a ha shown. IL Eas +