The Washington herald., 1922-07-05
WAR ON CHEMICAL
FOUNDATION TO Be
AIRED in SENATE
So1ons and Daugherty
Each Plan Action on
Alleged Frauds.
KING FOR HARDING
Says Sale of Alien Patents
Was Fraudulent and
Illegal.
KING FOR HARDING

fresident harding ana Attorney
General Daugherty against the
Chemical Foundation, organized by
leaders of the Wilson administna-
tion, will be dragged not only
through the courts but all over the
floors Of Congress.
And. IL Allen Property Custodian
Miller acts promptly In seeking TO
force return of the German patents.
copyrights. etc, held by the Founda-
tion. as he has said he would. the
battle around this outstanding is
sue may be raging simultaneously
In the courts and in the Senate.
Immediately after the Senate con-
cludes work on the agricultural
tariffs now under discussion II will
take up dye schedules. and debate
on the latter, both Democrats and
Republicans have announced, will
involve the Chemical Foundation
and will lift the lid againon the
smouldering charges that a dye
lobby is at work in the legislative
halls of the nation.
King Backs President.
The Senate debate will reveal
strange bed-fellows. For example,
Senator King, Democrat, of Utah,
says he will strongly support the
Presidents action against the
Foundation, declaring the very
men who seized the patents con-
spired to buy them. They spent
100000 In propaganda. The sale
was fraudulent, illegal and i'm
moral"
1t Is noteworthy that those who
have promptly come to the defense
OF the Chemical Foundation have
charged that the move Is one
strongly In the interests of Ger
many. And the bitter fight in Con-
gress against continuing the pres
ent embargo on German dyes prom
ises to have its counterpart in the
expected effort to keep German
dyes Off the high levy list when
the chemical schedules are reached
The night against continuation of
the German dye embargo has been
led by Senator Moses, of New
Hampshire. New England textile
Industries need these dyes, Il has
been claimed, and the American
monopoly on the product, effected
through continuance of the em-
oargo, has worked against their
best interests. 1t has been said.
suspects German Interests.
Friends of Francis p Garvan
president of the Chemical Founda-
hon. profess to see a direct con-
nection between the tight against
the dye embargo. the fight on the
Foundation for return of its Ger
man patents, including dye patents,
and recent visitations here Of Ger
mans and Americans interested in
the German dye monopoly.
FROM this II would seem certain
that the counter attack of Garvar
former Attorney General Palmer and
others concerned in the administra-
uon move to get back former Ger
man property now held by the Foun-
oation Will involve these ALLEGED Ger
man interests.
Representative woodruY. Repub-
hcan. Michigan. whose constant de-
mand for an investigation of the At
torney Generals office probably is re
sponstole more than any single thing
Tor the present move against the
Foundation. intimated yesterday that
all the hubbub over dyes was merely
cover for other equally important
activities Of the Foun-ation.
CriticiIes Propaganda.
"Of the several thousand patents
disposed of by Alien Property Gus
todian Garvan to the Chemical Foun
dation. 1nc.." Woodruff said, there
were hundreds which in no way bore
any relation to dye manufacture. 1t
Is noteworthy that the propagandists,
sent out to create public sentiment for
the Foundation. in order to protect
the infant dye industry Of America,
carefully refrained from making pub
lie this fact"
In replying to statements by darvan
and others interested in the Founda-
tion that 1t was not a profit-making
institution. and, in fact. was broke"
Woodruff said:
1T is true that profits Of stockhold-
ers of the Foundation are limited
in so far as their holdings of the COM
pany stock are concerned. But the
fact is there is practically no lint to
the toll OF profits they can exact by
letting out to themseelvs, as privi-
legged purchasers. the exclusive rights
to manufacture the various patented
articles or to use the formulas.
THE stockholders. for the most
part. are composed of the DuPonts
and other great moneyed interests.
The board of directors passes on the
eligibility OF any prospective stock
holder and II he Is not acceptable to
great majority Of the insiders he
doesn't get in. Consequently the
whole proposition is effectively tied