Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1924-01-24
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 Ameri.
can People.

Wilmington, Del.-In sixty-two
page decision which swept away ey-
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
$271 900, from the Government, Judge
Morris held there was no evidence
bearing out allegation of conspiracy
by American manufacturers to effect
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-'th test of actual trial"
They were declared by the court to
afford, through their high integrity
and unquestioned patriotism, thor,
ough assurance OF loyalty to their
trust "It 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
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.
T,,5-o M0r~so ro0ifo6 eo1f OH
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.
I'm view of this testimony and the
obvious fact that the power to charged
persons with fraud and conspiracy is
q weapon with which serious IRENE
dial injury may be done to innocent
persons If such charges aa'e lightly
made, It is difficult to understand
why the specific charges to which the
foregoing testimony relates were
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
Rcers 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, 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 we're 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
common-law trustee, but under the
extraordinary powers devolving upon
him as the Presidents representative.
under the additional sections of the
act Because a trustee with only the
usual powers may not ordinarily sell
trust property at private sale for less
than it's fair monetary value, it by
no means follows that the Custodian,
acting under supervision and d.
rection of the President, may lot do
40" held the Court Obviously. the
primary purpose Of che act was thu
protection of the nation, not the bene-
ut OF the enemy. The rust was for
the hel fit of the h-Jtion- 1uhHc
not p-Aat~ ISt. Ths tad J