Belington progressive. [volume] (Belington, W. Va.) 1912-1927, 1924-02-07
COURT UPHOLDS
PATENT SALE
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 Amerl.
can People.

Wilmington, Del-In a sixty-two
page decision which swept away ev
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 series Of cons aacy charges
unsupported by evidence at the trial
and refuted by the defe Use as well as
by documents filed ~ the Govern
ment.
In declining to compel the Founda-
ton to restore the disputed patents,
numbering some 400 and bought for
s271 900, 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
40 tn{a u
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 1T 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 var powers granted by Con-
sress, coulG not be brought to court.
Congress had not delegated legisla.
tive powers to President Wilson, az
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 enum crate 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 is
weapon with which serious IRENE
dial injury may be done to innocent
persons if such charges are lightly
made, it is difficult to understand
foregoing testimony relates we're
made" wrote the court yet the re-
naming 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 it sought to have the
charges sustained as against the Of
fcers of the Government who formu-
lated and carried out in the public in.
terest the plan of SALE While
| 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, it 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
circumstarre
The SALE 2" dispute were not made
bv the Custodian in his capacity as a
eommon-la~ trustee, but under the
extraordinar7 powers devolving upon
him as the President's representative
under the additional sections of the
act Because trustee with only the
usual powers may not ordinarily sell
trust property at private sale for less
than its fair monetary value it by
no means follows that the Custodian.
acting under supervision and di
recton of the President, may not do
So held the Court obviously. the
primary purpose of the AFT wac the