River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1924-02-14
U. S. Suit Against Chemical
Foundation Dismissed by
Judge Morris.
CONSPIRACY CHARGE FAILS
Conduct of Chemical Foundation
Praised in Use of Former German
Patents for Benefit of Ameri-
can People.

page ueClSlOD Which ohSpS away
cry one Of the Governments major
contentious as being without basis In
fact or law, Federal Judge Hugh Nj.
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.
nent 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 fled by the Govern
ment..
In declining to compel the Founda-
ton to restore the disputed patents,
numbering some 400 and bought for
$271,000, from the Government, Judge
Morris held there was no evidence
bearing out allegation OF 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
its trustees, as having met the most
severe 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. st 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.. Caravan, as Alien Property Custo-
dian and thereby a public trustee,
sold to himself as president OF the
Foundation 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
Presidential war acts.
Judge Morris recited that although
Colonel Thomas r. Miller, present
Custodian, who had approved two OF
the sales involved, verified the COM
plant. In his testimony he admitted
that he could not enumerate any OF
the facts alleged to have been with
held and suppressed from him.
"In view OF this testimony and the
obvious fact that the power to charge
persons with fraud and conspiracy Ia
a weapon with which serious IRENE
dial injury may be done to innocent
persons II such charges are lightly
made, 1t is difficult to understand
why the specific charges to which the
foregoing testimony relates were
made" wrote the court. "Yet the re-
manning like charges were equally
lacking in evidential support. In fact,
at the argument, the plaintiff seemed
no longer to press these charges
against the persons alleged to be con-
spirators, but 1t sought to have the
charges sustained as against the Of
ficers OF the Government who formu-
lated and carried out In the public In
terest the plan of sale. While
I know of no case where by implica-
ton of law the duty of clearing itself
from imputed fraud rests upon the
defendant, yet the defendant has met
even this burden"
Holds Wilson Had Full Power
While the Trading With the Enemy
Act at first merely authorized Gus
todianship of German properties in
this country, 1t was later amended.
recalled the Court, to give power OF
sale under such conditions as the
President, in the public interest,
should determine upon. In effect, this
made the President. as agent OF the
nation, possessed of powers as broad
as though he were absolute owner OF
the seized properties. Under the pro-
visions of the act, the President was
empowered to make any conditions
OF sale he considered necessary In the
circumstances.
The sales in dispute were not made
by the Custodian In his capacity as a
common-law trustee. but under the
extraordinary powers devolying upon
him as the Presidents representative,
under the additional sections OF the
act. Because trustee with only the
usual powers may rot ordinarily sell
trust property at private sale for less
than It's fair monetary value. 1t by
no means follows that the Custodian,
acting under supervision and d.
rection Of the President, may not do
So" held the Court. obviously. the
primary purpose OF the act was the
protection Of the nation. not the bene-
at OF the enemy The trust was Tor
the benefit Of the nation-a public.
.nof private trust. The statute re-