The Kevin review. [volume] (Kevin, Mont.) 1922-1929, 1924-01-24
U. S. Suit Against Chemical
Foundation Dismissed by
Judge Morris.
CONSPIRACY CHARGE FAILS
Conduct Of Chemical Foundation
Praised in Use Of Former German
Patentsefor Benefit of Ameri-
car People.

f0oO \ UblSh o"OPt ave ~
cry one of the Governments major
contentious as being without basis in
fact or law, Federal Judge Hugh M.
Morris dismissed its suit to set aside
the sale of seized chemical and dye
patents by the Alien Property Custo-
dian to the Chemical Foundation, Inc.
The decision rebuked the Govern
ment for including in the bill of com.
plant a series of conspiracy charges
unsupported by evidence at the trial
and refuted by the defense as well as
by documents filed by the Govern
ment.
In declining to compel the Founda-
ton to restore the disputed patents,
numbering some 400 and bought for
$271 1000, from the Government, Judge
Norris held there was no evidence
bearing out allegation Of a conspiracy
by American manufacturers to effect a
monopoly through the Foundation
The court ruled that there was no
evidence of fraud or deceit practiced
on President Wilson, Mr.. Polk, Under
Secretary of State; Attorney General
Palmer and other high officials of that
Administration.
Caravans Course Upheld
The opinion praised Francis P. Gar
van, president of the Foundation, and
{fc fr1rofonc oo ho win mot tho mncf
sever of tests In their conduct Of the
Foundation-"the test of actual trial"
They were declared by the court to
afford, through their high integrity
and unquestioned patriotism, a thor
ough assurance of loyalty to their
trust. at has kept the faith" said
the court of the Foundations work.
Judge Morris found without merit
the Governments contention that the
criminal laws were violated in that
Mr.. Garvan, as Alien Property Custo
dian and thereby a public trustee,
sold to himself as president of the
the patents in question
He had acted by direction Of Presi
dent Wilson and his acts, supervised
by the President under the latter's
wide war powers granted by Con
gress, could not be brought to court
Congress had not delegated legisla
tive powers to President Wilson, as
maintained by the plaintiff, and the
courts could not pass judgment on
the wisdom or lack Of wisdom of
war acts.
Judge Morris recited that although
Colonel Thomas R. Miller, present
who had approved two OF
the sales involved, verified the com
In his testimony he admitted
that he could not enumerate any of
the facts alleged to have been with.
held and suppressed from him.
I'm view of this testimony and the
obvious fact that the power to charge
persons with fraud and conspiracy is
a weapon with which serious IRENE.
dial injury may be done to innocent
persons if such charges are lightly
it is difficult to understand
why the specific charges to which the
foregoing testimony relates were
wrote the court. yet the re-
naming like charges were equally
in evidential support. In fact,
the argument, the plaintiff seemed
no longer to press these charges
against the persons alleged to be con
5pirators, but it sought to have the
charges sustained as against the Of
dcers OF the Government who formu-
Lated and carried out in the public In.
crest the plan of sale. While
know of no case where by implica-
lion of law the duty Of clearing itself
rom imputed fraud rests upon the
defendant, yet the defendant has met
this burden"
Holds Wilson Had Full Power
While the Trading With the Enemy
at first merely authorized Gus
OF German properties in
his country, 1T was later amended,
.ecalled the Court, to give power of
,ale under such conditions as the
President, In the public interest.
should determine upon. In effect, this
the President, as agent of the
possessed Of powers as broad
rs IuOuS1 he hclt dO0O3utt ONAIA VI
he seized properties. Under the pro
visions of the act, the President was
empowered to make any conditions
II sale he considered necessary in the
circumstances.
The sales in dispute were not made
the Custodian in his capacity as a
.ommon,law trustee, but under the
Extraordinary powers devolving upon
lin as the Presidents representative.
lnder the additional sections Of the
.ct. Because a trustee with only the
Isual powers may not ordinarily sell
rust property at private sale for less
han its fair monetary value, It by
10 means follows that the Custodian,
citing under supervision and di.
ection of the President. may not do
o." held the Court. obviously, the
purpose of the act was the
protection OF the nation, not the bene.
t Of the enemy. The trust was fol
he benefit of the natiOn--a public.