Show COURT UPHOLDS I r PATENT SALE U U. U S S. S Suit Against Chemical Foundation Dismissed by Judge Morris CONSPIRACY CHARGE FAILS Conduct of 0 Chemical Foundation Praised In U U. U Use e of 0 Former German Patents for or Benefit of 0 American Amen Ameri can People Wilmington D In DeL L In a sixty two sixty two page decision which swept away every ev sty ery one of the Governments Government's major contentions contention I as aa being without basis in I fact or law Federal Judge Hugh M. M Morris dismissed Its III suit to I set t aside the sale of seized chemical and dye patents by the Allen Alien Property Custodian Custo Custo- dian dlan to the Chemical Foundation Inc The decision rebuked the Government Govern m meat ment t for Including In the bill of complaint com cool plaint a series of conspiracy charges unsupported by evidence at the trial and refuted by the defense as III well as 81 asby asby by documents tiled by the Govern ment In declining to conI compel pel the Foundation lion tion to restore the disputed patents numbering some and bought for from the Government Judge Morris held there was wag no DO evidence bearing out allegation of a conspiracy by hy American manufacturers to effect a monopoly through the Foundation I The court ruled that there was wu no evidence of fraud or deceit practiced m nn President nt Wilson Mr Polk Under UnderSecretary UnderSecretary UnderSecretary Secretary of State State Attorney General Palmer and other high officials of that Administration Garvane Garvan's Course Upheld The opinion praised Francis P Oar van vac president of the Foundation and andr v r its trustees as ba having Ing met the mo mud I. I vere of tests boats In their conduct of the lound the test of actual trial They were declared declare by the court to afford through their high Integrity and unquestioned patriotism a thorough thor thoro ough ass assurance of loyalty to their trust It hoe has kept the faith said The sour of of the Foundations Foundation's work Judge Morris found without merit the Governments Government's contention that the Jaw we were violated In Iq that thai Mr fir Mr Oar ea aa as Alien AUen en Property hoper Custodian Custo dlan dian n an and J thereby a pu public lc trustee sold to 10 himself as pr president of ot the Foundation the patents In question He Ie had lI acted te by br direction Ir o of Pres dell and ads his ads ads' a supervised b by the President nt under 1 e the e letters letter's wide war war p powers wera granted by Congress Con n gress gresa could not be brought to court Congress had bad not DOt delegated legislative legisla tine tive powers to President Wilson a b maintained by the plaintiff and the courts courtl could not pass pall Judgment on the wisdom or lack of wisdom of ot Presidential war acts Judge Morris Morris' recited that although Colonel Thomas fit II Miller present Custodian who had approved two of the sales Involved verl verified eO the complaint com com- plaint In his bis testimony he admitted that he be could not enumerate any of ot the facts alleged to have bave been withheld withheld with with- held and suppressed from himIn himIn himIn him In view Sew of this testimony and the obvious fact that the power to charge persons wIth fraud and conspiracy lea IIa is le isa a weapon with which serious dial mien injury may be done to innocent persons it If such charges are lightly made It is la difficult to understand why the specific charges charge to which the th foregoing testimony relates were I Imade made wrote the court Yet the remaining remaining re re- re like Uke charges were equally lacking in evidential support In fact at the argument the plaintiff seemed no longer to press prell these charges chargee against the persons alleged to be con conS conspirators but It sought to have bave the charges sustained as II against the officers of of the Government who formulated formulated formu formu- and carried out In n the public Interest In terest the plan of ot sale While 1 I know of no case where by implication Implication tion of law the duty of ot clearing Itself from Imputed fraud rests upon the defendant yet ret the defendant has bal met even eYen this burden Holds Wilson Had Full Power While the WIth the Enemy Act at first merely authorized authorised custodianship cus cuss of German properties In Inthis inthis this country it was later IMer amended I recalled the Court to give power of ot sale ale under such auch conditions nl as aa the President In the public Interest should d determine upon In effect this m made Ade the President as agent Of the nation possessed of or powers as broad broadas as aa though be he were absolute owner of ot I I tb the th seized seised properties Under the provisions provisions pro pro- visions of ot the act the President was a empowered to wake make an any conditions ot of sale ule he be considered d necessary in the circumstances The sales lales In fn dispute were not Dot made by the Custodian In lu his capacity as al a r law common trustee but under the extraordinary powers devolving upon hIm as the he Presidents President's representative under the additional sections of the act Because a trustee with only the usual powers power may not ordinarily sell lell trust property at private sale ule for less lv I than Its fair monetary value alue It by byi byno i no means follows that the Custodian acting under supervision and direction di dl of the President may not do dot t t. t so so held the Court Obviously Deviously the t v primary purpose of or the act was the protection of ot the tbt notion nation not the bene bens fit of Jf the enemy nemy Tbt trust was ws for tb the benefit benent of the tM nation nation t public tot mot a private t tot The Tbt statute re rs- Y t. t quires the President to tD consider tb the public Interest Public interest Is not nota a synonym for tor money In this relation Judge Morris quoted quoted quoted ed from President C Coolidge's message to Congress on the th Muscle Mute Shoals Shoal problem that while the price Is II an important element there la 1 another consideration even eYen more compelling If this main object priced low nitrates for farmers in peace and the Government In wart war warl is II accomplished the amount of money received for the property Is II not a primary or major consideration Referring to owned German property proper ty the court said i Much of this thit property was wu not Innocently Innocenti held or held solely for trade and commerce Information acquired ac by owned German companies bad had been transmitted to Berlin Derlin and there indexed and nd made available to German competitors am and the German Government The flies files of one com corn company pany were filled not nOl with business papers but with pan German litera litera- ture It waa was a distribution centre for propaganda In this country Upholds Confiscation of 0 Patents Judge Morris Morrie pointed out that when America entered the war she ahe adhered to the international convention forbidding forbidding for for- bidding poison polson gas gaa but It soon became be came apparent that America would be fighting on disastrously unequal terms unless she should l make use ule of all aU the dread weapons lapone being used against her herby herby herby by the foe toe When Germany persisted In to her attempts to de destroy troy her opponents with poison polson gas In contravention contravention tion of ot all 1111 International agreements she made it k manifest that Americas America's future safety lay In Americas America's chemical chemical chemi chemi- cal Independence The amendment to the act was wal passed In the darkest days of the war allowing the sale of seized properties It was waa thought Paris PaTti was about abot t to tall fall and the Channel Channel Chan Chan- nel ports b be taken These were the circumstances said raId the opinion which Impelled Congress to grant gront the President the broad powers of almost absolute owner ownership It was the Intent of Con Congress ees to subordinate mere property property prop prop- ert erty rights to the welfare of the na na- I tion Uon Of the value of the patents sold Judge Morris hell held In accordance with the testimony that while Dr Carl Holderman a German asserted the Haber patents were worth to the the evidence is overwhelming overwhelming over over- whelming that they were and are without substantial affirmative value to American citizens Had these patents patents pat pat- been sold lold to Americans Americana at public rather than private sale and only the thenet thenet thenet net proceeds paid to their former enemy owners tb these sO owners would have suffered an almost total loss lose in inthe inthe the value pf their b lr property Praises Work Woric o oJ of 1 foundation As to allegations that the sale lale was no not t to obtain a fair value but to proa pro pro- Interests of the chemical and dye Industries and that the transaction lion tion was waa In legal effect granting a subsidy to private Industry the Court commented tb this s challenge to the motives of the officers officer making the sale Is supported 1 I think neither by bythe bythe bythe the facts nor nor the law Mr Polk determined de de- determined the public Interest would be best served by a wide use of the Inventions In covered by the patents If the property was sold under terms and conditions that assured Its Ita being devoted to the public use ule it matters matters' not what benefits benefits' or detriments may have flowed as aa incidents The property Is in the keeping of men who bave have in its management no DO selfish Interest to serve and whose whole devotion devotion devotion de de- de- de to the public Interest has hal been established continued the he opinion No better plan for devoting the property to public use has haa been sug sug- The plan has stood the most severe eure of all tests actual tests actual trial The defendant has haa kept the faith This It has hal done not only by granting li licenses Ii 11 censes censer In furtherance of the tha purposes for tor which it was but also allo at Its great expense by distribution of ot books and pamphlets showing the national necessity for practical development development devel devel- of chemical science In to Ameri Amerl ca If IL If perchance those heretofore engaged In the Industries have bave derived derived de de- rived rInd an incidental advantage from the plan that that Incidental result cannot Invalidate a transaction lawfully cond consummated con summated in the public Interest The same charge would lie against the validity of every tariff act The sale was waa In effect to America and It its I citizens not to those then engaged in chemical and allied industries Judge Morris ruled that If It the executives ex entrusted by Congress with I power of ot sale lale acted within the scope of that power their acts are not subject subject sub sub- to judicial nullification or review Invasion by the courts to determine whether the public Interest required the property be sold otherwise than under the statutory conditions pre pre- scribed pre scribed and to set let aside alide the sale r should the Judgment of the court be different from that of the President would be a Judicial nullification not only of the Presidents President's act but also of the act of Congress conferring on the President the power to determine what the public interests required What the public interest requires depends depends de de- de upon the conditions condItion I existing In inthe the nation Courts Courtl do not understand the state of he Union and as as I 1 apprehend ap ap- are not equipped to ascertain it The statement of the reasons rea rea- sons IOns actuating the President does not make his hie act any the Ie less an act of discretion It Is II conceded the President President Prell dent cannot Innot be brought into court to substantiate his hla reasons The statute does doe I not require him to disclose to the purchaser the evidence upon which his reasons were based The statute does doel not limit the Executive in to the assignment of reasons to uch Irh as may be supported by I evidence or by facts available t ta to l the ollila |