Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-11-22
A CONSPIRACY?
WHAT SAYS COURT?
ABOUT Dye COMBINE?

Wilmington, Del. Nov. 21.-The
governments suit against the Chemi-
cal Foundation, Inc, was brought on
the direct orders of the late Presi-
dent Harding and was filed Septem-
Der 8, 1922, after the Foundation
had refused to comply with formal
demand of the government for the
return Of the seized enemy dye and
chemical patents sold to it by the
alien property custodian during the
Wilson administration.
The government charged in its
bill and sought to support at the trial
that the sale was brought about
through "combinatio scheme ard
conspiracy" on the part of the
domestic dye industry and that both
President Wilson and Acting Secre-
tary Of State Polk, who signed the
FIRST executive order authorizing a
private sale, had been deceived as to
the facts.
The contention was made that
President Wilson could not delegate
to Assistant Secretary Polk his
authority under the Trading with
the Enemy Act to order a private
sale and that the Presidents order
of February 10, 1920, authorizing a
reassignment of the patents to the
authority OF the alien property
custodian to make the original sale
was not in fact an attempt to ratify
the orders of Mr.. Polk authorizing q
private sale.
Furthermore the government in
sisted that Francis P. Garvan as
alien property custodian had made
the sale to himself as president of
the Chemical Foundation in viola
ton of well defined principles of law
that trustee may not sell to HIM
self property which he holds in
trust. Other arguments advanced by
the government why the sale should
be declared invalid included:
Because of "the combination of
substantially all of the prospective
purchasers into one organization"
Because 'purposely made in such
or in part, the value of the prop
erty.'
ION account of the relations of the
parties conducting the same to each
other and the subject matter"
Because "the price paid was
arbitrarily arrived at and grossly in
adequate"
The Chemical Foundation under
took to show at the trial that Presi-
dent Wilson and Mr.. Polk acted with
the idea of organizing the Chemical
Foundation to license the seized
patents originated with government
officials and not with the dye in
dustry and that the purpose of the
transaction was to organize in this
country an industry and chemical
science free from alien domination.
Specifically the defense commended:
THAT the action and purpose of
the President were directly in the
exercise of the war powers of the
government and in the public inter-
est:
THAT a sufficient and independent
dive and chemical industry in the
United States was indispensable for
the national safety and defense, the
public health and the economic in
dependence of the United States:
THAT the hostile German influence
over, and the domination in. this
field of scientific and commercial
activity in the United States had to
be ended and recurrence thereof
prevented in the future as a legiti-
mate measure of governmental pru-
dence, war policy and safeguard:
"That the German chemical
patents constituted a grave menace
to the United States, and had to be
taken from hostile alien ownership
and control:
"That It was because of these pub
lie reasons and considerations that
the President directed the sale of the
enemy owned patents to the de-
PENDANT, and
What the defendant, among other
things. bound itself to hold the
patents thus acquired as a trustee
for the promotion Of the American
chemical industry, to grant nom
exclusive licenses to all qualified
Americans without discrimination
and upon reasonable terms, to give a
license to the government itself
under said patents, free of charge
and to release the United States from
all liability for infringement of the
patents"
The defense commended also that
the negotiations for the sale had
been completed by former Attorney
General A. Mitchell Palmer while he
was alien property custodian and
that Francis p. Caravan had beer
appointed custodian by President
Wilson to carry out the agreement