Show GARYA DEMANDS DE HARDING CLEAR HIM Writes Writes' to President That He Has Been Grossly Misled Misled Mis Mis- led by Daugherty New York Flatly Flatly refusing to return to the United States government go a single chemical patent right owned by bythe bythe bythe the Chemical Foundation Inc of which he Is president Francis P. P Garvan Garvan Garvan Gar- Gar van In a spirited and energetic letter to President Harding lardIng asserted that the President grossly crossly misled b by the general attorney-general is for the first time In American history attempting to abrogate a solemn Executive e order of ofa a predecessor and Is acting moreover on Information furnished b by German Gennan agents and interpreted by lawyers whose sole Bole knowledge of the war and Its lessons Is derived from association with German clients Absolute legality In the sale of and odd former German patents to the Foundation and complete publicity Inthe In lb the organization and operation of this quasi-public quasi Institution together with the highest of ethical motives are earnestly maintained by Mr Garvan Gar in his ii communication and he asserts with emphasis that no person connected with the Foundation has ever made a dollar out of It or ever could do so sounder sounder sounder under Its charter and laws by-laws himself least of all he fortifies that statement with figures which show that the capital capital capital capi capi- tal of the institution consisted of DOO all of which has been spent In the purchase of at the patents and In educating educating ing lag the people through schools and colleges and In the encouragement of chemical societies and says that the Foundation Foun Income from licenses barely barely barely bare bare- ly meets the modest running expenses All AU of these thes financial details have hue huelong long been available Mr Garvan reminds reminds re reo re- re minds President Harding and demands that the President a ascertain the truth and tell the people whether the Foundation Foundation Foun Foun- dation and md its head have deserved the abuse they have received Gave All and Got Abuse has all nIl Mr It given its Garvan writes You can take away nothing but the opportunity of B lt was all we got from t the It ItIs ItIs Itis Is all we have Mr r. r President you have had the temerity to Impugn the honor of the gentlemen who boast a part In the great work of building up or preservIng preserving ing the possibility of progress In organic organic or or- ganic chemistry f for r America You have again been misinformed as to the nature of the trust we tore bore ore That trust was not for the Germa German Kartel the owner of practically all nil the Important patents who had received them under the unthinking graciousness of laws they had induced That trust was for tor forthe forthe the American people their Industrial I Independence and for tor the safety nn and f health of their children and their childrens children's childrens children's childrens chil chil- drens dren's children At the outset of his letter Mr Garvan states that he has forwarded to the Allen AUen Property Custodian the Chemical Foundations Foundation's formal answer to his demand an answer as an American corporation ready at all times to defend defend defend de de- de- de fend Its rights In the courts but that the public In whose Interests the Foundation Foundation Foun Foun- dation was organized Is entitled to be fully informed as to the circumstances under which the demand was made and the reas reason n why It Is unqualifiedly re re- fused The demand Itself Mr 11 Garvan as asserts erts to together ether with the letter written by bv the President and the statement made made by General Attorney-General Daugherty demonstrate that you Mr P President have hae been grossly misled by the general ney-general both as to the law and the factS of at the case Eliminating Enemy Interest Thereupon Mr Garvan contends 1 that the attorney attorney- general attorney has listened exclusively to German n agents which h Is la lano no Investigation 2 that the United States government go has no Interest In Inho inthe the tho suit brought by the Foundation to determine the tho ow ownership of funds held by the treasury 3 that when President President dent Wilson authorized the sale of the German patents neither th the President secretary of state nor alien property custodian was wasP under the law In the remotest sense a n trustee for the German German Ger Ger- man enemies 4 that specific power to sell the patents was granted by Congress Con- Con press gress ess after atter full committee hearings on November 4 1918 and on De December ember 3 1018 1918 President Wilson vested with power to supervise all sales authorized Acting Secretary S of ot State Frank L. L Polk to approve the sale saIl of the German chemical and other patents 5 that on l February 26 20 1010 1919 Polk ordered the sale In Inthe the public Interest noting that thata a public sale was vas not In the best Interests Interests In In- of ot the public because It would offer oer opportunity for the patents to get Into the hands of speculators and monopolists and that the Chemical Foundation obligated to grant rant noni non exclusive e licenses was as the best means for forell ell eliminating alien Interests hostile to American Industries and of the advancement ad ad- van ment of chemical and allied Industries Industries In In- In the United States 6 0 that President Wilson returning from abroad confirmed Polk's ord order r on Feb eb February man 13 13 1920 1020 with this comment My reasons for the foregoing determination nation and order are stated In the said orders of f Frank Frnnk I L. L Polk and In addition thereto the public nubile Interest win Will DC no best hest served by the elimination of ot any enemy Interest adverse to American citizens arising by reason o ot of said mid In action or rights IntereSts Interests interests Inter Inter- ests and nad benefits under said agreements agree agree- ments This sale Mr Garvan Garan continues was wats was made male In the full fun lI light ht of al all branches of the government and In the full light of publicity The Idea of Its formation was vas the result of at the mate knowledge e of the past use of these patents In a manner munner hostile to the United States' States interests and in full ful with all nil of the executives of the government the experts of our army and nav navy and leaders of our our chemical business organizations org and the heads head of nil all our scientific and re reo re- re earch learch or organizations I do not ask you o to accept m ray my p present e statement of th the matter maUer hut but Insert here an on extract from the report of A. A Mitchell Palmer filed flIed with the President February 22 1910 1019 and by him forwarded to the Congress Congre s and by that Congress made a public document and most widely commented on by the press of the country Palmers Palmer's Version of It Mr Palmer sta stated ted In the course of the report to by Mr Garvan GaITan These patents as ns had already been Indicated formed a colossal obstacle to the development of the American dyestuff dyestuff dyestuff dye- dye stuff Industry Evidently they had not been taken talen out with any Intention of manufacturing in this country or from any fear of or American manufacture upon consideration It seemed that these patents offered a possible solution tion Uon for the problem hitherto unsolvable unsolvable unsolvable able of protecting the new American d dye e Industry against German competition tion after the war war The Idea was accordingly conceived that if the German Ger r- r man chemical patents could be pl placed ced In the hands of any Rny American Institution InstItution tion strong enough h to protect them thorn a areal areal real obstacle might be opposed to German German Ger Ger- man Importation after the war and at atthe tho the same me time the American Industry might be freed from the prohibition enforced enforced enforced en en- forced by bj the patents against the manufacture manufacture manufacture man man- of the most valuable dye dye- stuffs Accordingly these considerations were laid before beCore various associations of chemical manufacturers notably the Dye Institute and the American ManufacturIng Manufacturing Manufacturing Manu Manu- Chemists' Chemists Association The su suggestion was met with an Instantaneous Instantaneous and arid enthusiastic approval and andas andas andas as a result a corporation has been heen organized or or- to be known as the Chemical Foundation Inc In which practically pra every Important manufacturer will be bea a stockholder the purpose of which Is Isto Isto isto to acquire by purchase these German patents and to hold them as a trustee for American Industry The first president of the Chemical Foundation will be Francis P. P Garvan of the New NewYork NewYork NewYork York bar to whose clear vision and Indefatigable In in- able Industry I am chiefly Indebted Indebted indebted In In- for the working out of this pI plan aD The combination was not objectionable objection objection- able to public policy since It was so so i or organized that any genuine American whether a stockholder of the company company com corn comi i pany or not could secure the benefits of the patents on fair and equal terms A Quasi Public Idea II IIA Mr Garvan goes on to state that at that time he was a dollar a year man with no exp expectation whatever er of becoming becoming becoming be be- coming alien allen property custodian that It was only when General Attorney-General Gre Gregory ory resigned and Palmer was appointed appointed ap ap- ap pointed general attorney-general that Palmer asked him to take the custodians custodian's place Three months later he writes he testified Before the Ways and Means I Committee of the ho house e The foundation foundation foundation tion of the Chemical Foundation was an effort to form an organization to represent as nearly as I possible at that time the public Inter Interests ts Judge Ingraham Ingraham In In- graham of New York and Ju Judge Gray of Delaware had charge of drawing our charter and our trust agreement And our certificate of at Incorporation We have hae endeavored to make It as liB nearly a R public institution as u our laws allow and at nt the same time to e have haveIt It an official organization We wanted to sell these patents to the government governS govern ment meat and if there had be been n any method by which we could make them thema a working force and still sUIl have them owned and controlled by the government government govern govern- overn- overn ment It would have relieved us of a great deal of responsibility v and If it there ther Is at nt this time any suggestion for modification or amendment of our plan which will Insure In the minds of the committee a more definite and certain fulfillment of ot the Intention and purposes purposes purposes pur pur- poses of pur pun organization I am certain that the Chemical Foundation and all Its stockholders and all who are Interested Interested interested Inter Inter- ested In It would be glad lad to conform to the wishes of the committee because because because be be- cause In so far tar as we have hae public recognition recognition rec ree- og and public support and government government government gov gov- recognition and government support we become more efficient and become more able ahle to carry out the Intentions Intentions Intentions In In- which are In our hearts and minds Mr Ir Garvan states that the total or gross ross Income of the Foundation has haa averaged per year The running run run- fling ning expenses bare overhead have averaged ed a net excess of or or per cent on the Invested allowing nothing for de de- de- de predation The average life Ute of the patents Is eight years rears so 80 that 12 1234 per cent of ot the cash paid for forthe forthe forthe the patents or per year Jur should hould be subtracted from the apparent apparent apparent ent net receipts per y year ar which h leavean leave leaves an actual annual operation deficit d of at 1 In educational work Mr Hr Garvan Gar Informs the President the Foundation has spent the entire balance of Its Us capital Quotes English Prediction Firmly maintaining that the Foundation Foundation Founds Founds- tion Is the keystone of the wall raised railed to protect the American people from German chemical domination Mr Garvan Gar Gar- van Tan maintains such protection Is Indispensable Indispensable Indispensable Indis Indis- to the future happiness health and safety of the American people and quotes from a recent open letter t te t. parliament written b by James Tames Morton largest hugest carpet manufacturer of England England Eng Eng- land Organic chemistry Is the key to the world of new values alues and that America In five fi years' years time will hare hue huedy dy dye works and general chemical works work equal to Germany As re regards ards the development of organic organic or or- ganic chemistry for national defense Mr Garvan calls to his aid testimony by Marshal Foch and the late Field Marshal Sir Henry Wilson to the general general general gen gen- eral conclusion that a nation thoroughly thorough thorough- ly equipped chemically may mar almost guarantee the peace of the future And Andas as regards Its Importance in the development development de de- de- de of medicine lie he quotas s Prof Julius of the University of at Q world famous chemist The pitiful calls colls of or our hospitals for tor local anaesthetics to alleviate suffering on the operating table the frantic appeals appeals appeals ap ap- ap- ap peals for tor the hypnotic that soothes the epileptic and staves ofT off hl his hla seizure th tho I almost furIOUS tor r after otter remedy that came In the early years yea of the war are still ringing Inthe in inthe inthe the hearts heart of many of us No 1 wonder that our small army of chemists Is grimly determined not to give ghe up the Independence In chemistry which the war achieved for us usi I Only a widely enlightened public however can Insure insure In in- sure th the permanence of what far 8 seeIng seeing see see- Ing men have started to accomplish In developing the power of chemistry through research In every domain which chemistry touches I These TheBe Mr van Oar concludes were the thought thoughts which were In to the minds of the men nn who knew the war and its Ita lessons when they formed forme the Chemical al Foundation |