Salt Lake Telegram | 1921-08-07 | Page 29 | Dye Embargo Claims Pressed

I DYE EMBARGO PRESSED Committee e Examines Che Chemi Cherni Chemical i. i cal Foundation 7 W WASHINGTON N Aug 6 The G.-The The Chemical Chemical Chem Chem- ical Foundation company compan holder hoMer ot of former German p patents tents on dyestuffs dyestuffs dye- dye stuffs patents and trademarks which it acquired from the th alien property properly custodian was was' investigated today by bythe bythe bytho the tho senate finance committee Joseph H. H Choate Jr attorney for tor forthe the thet company and Washington representative representative of the Am American Dye De Institute institute tute appeared before tho committee e and urS urged d that a dyestuffs embargo be included In tho the Fordney ordney tariff bill Senator Lafollette Republican of or Wisconsin a member r of the committee commit commit- tee and Sem Senator tor M Moses ses Republican 1 of ot New Hampshire who has been leading the fight in tho senate against the dyestuffs lobby In the capitol Questioned questioned questioned ques Ques- him at length c concerning nce the operations of ot the company Senator Moses was called in Into to assist in questioning ques ques- the the- witness although not a a. member of the tho finance c committee REASONABLE PROFITS Mr Choate declared the thc Chemical Foundation company is Is' not making an exorbitant profit Its contract with the ted federal ral government go ho he asserted limits it to ton n a n profit of ot 6 p per r cent which ho he said sald it it- makes through licensing the patents it holds to dye dyo manufacturers The c committee did not touch upon the actual sale of the pate patents ts of ot the company A A. resolution for Cor an Investigation of ot the sale is isnow now pending In tho ho house se The resolution charges that lor Francis n P. P Garvin n and his asso- asso asso asso- dates Including Mr Choate while they were ere assistants to the alien property property property prop prop- erty custodian organized the tho Chemical Chemi Chemni- cal Foundation company and sold the the patents to themselves for when they were worth more than 10 I DENIES LOBBYING I Asked by Senator Senat r Lafollette wh why he was not pal paid l a large salary to r remain maln j I jIn In Washington and try to secure adoption i tion of ot a dyestuffs embargo by congress con con- gress c Mr denied that he was as lobbying I received from the dye do in institute institute In- In Mr Choate replied That was for some legal services I rendered rendered ren rem dered a S aThe The Duponts Mr Choate stated had I invested in th the dyestuffs in In- In I This amount he said sald was wusI I only a n small part of at th their Jr business I It was large enough for tor them to send lobbyists here to tu work for Cor an an embargo remarked Senator r Moses l I IThe The Tho Duponts of ot course were InterI Interested interested Inter- Inter InterI I ested in any legislation affecting affecting- their I IJ business sll said Mr Choate but the they did not lobby I II I foI know better said Senator Moses Explaining tho the workings of the Chemical Foundation company n Mr Choate said tho the concern made an a agreement with the government when I it secured the patents under which It 1 t-J t I could souM only license their use by dyestuffs dyestuffs dye dye- stuffs manufacturers Wo are arc limited to a profit o of ot 6 per perI I I cent the witness s said ald ld The manufacturers manu man u I who used the patents under I license from us us make the profits I. I