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Show DENIES GERMAN i PATENTS TAKEN OVER BY FRAUD Senator Underwood Takes Up Cudgel in Defense of Francis Garvan HARDING- CRITICISED j President Errs He Says, Action Against Chemical Foundation TVASHTN'GTON, July 24 The chemical foundation and its president Francis P. Garvan, former alien property prop-erty custodian who ;ire being proceeded proceed-ed asalnst by the government for the return of German chemical patents, were defended in the ewtiate todav by Senator Pnderwood of Alabama. Democratic Dem-ocratic leader, who criticised President Presi-dent Harding and the administration for the. action taken against them. DENIES FRAUD. Denying that there was fraud, collusion col-lusion or conspiracy in the acquisition acquisi-tion of the German patents by th" chemical foundation. Senator Underwood Under-wood also commended the record of A Mitchell Palmer, former attorney; general, and former alien property custodlnn. in dealing with enemy alien' property. German int. -rest", senator Underwood said, were supporting the, administration's course against the chemical foundation In tho hope, he I said, of securing rM tutyn of prop-1 erty and also damage claims for its use. Senator Underwood's statements were made during an address In sup-i port of his recent bill to create an I American commission to press Amer- lean damage claims against Germany , and Austria, using German property seized as a pledge for payment Mr ' Underwood opposed the administration j plan for a Joint claims commission or anothe rtreaty to deal with the claims.! declaring there was no necessity fori further negotiations with German j i n the subject. He reviewed at length the alien property legislation and cited cit-ed figures showing that the property.' worth $600,000,000. was taken over, and control acquired of 200 alien cor-i poratlons. QUOTES PAIiMER, Quoting from Mr. Palmer's report on enemy alien property. Senator I n-; derwood said that tho $2r.0.000 paid by the chemical foundation In securing secur-ing rights to the 5,000 German chemical chemi-cal patents was "adequate" when th government's right to use the patenlsj i i cmsldcrod "This report." said Mr. Underwood. "effectually disposes of the charge that thero was a fraudulent onspiracy on the part of those on the alien prop-1 erty custodian's office who erected the; chemical foundation and sold these patents to it. The charges has been-repeatedly been-repeatedly made that Mr Garvan as' alien property custodian sold these patents to himself a spresldent of the chemical foundation. Too entire planj was devised and perfected before Mr Garvan became alien property custodian custo-dian or had any thought of being ap- pointed to that office the entire plat, was devised and perfected while Mr. Palher was alien custodlau " "Conspiracies to defroUd the go - eminent arc not committed In the open light of day i 'onpiraclos to, defraud the government are never It-ported It-ported to congress by the conspirators In advance. MISTAKEN THEORY "Now. President Harding has directed direct-ed the present alien property custodian custo-dian to demand a return of these pat- ents from the chemical foundation to, the government. The president has: committed himself to the doctrine that' this sale was a violation of a trust., This is a mistaken theory of law forj th. title to the property was vested absolutely In the government and tne alien property custodian was not tho trustee for the German owners ," German Interests. Senator Under-, wood said, were seeking to have the latter construction sustained. If this was done, he said. It would 'Inevitably' mean that the Germans will insist that the government must return t the trusteeship the wireless plants and patents and all patents on war ma-j terlals. and the great Hamburg-American and North German Dloyd terminals ter-minals at New York, which were sold for about $7,000,00. And then the Germans propose to collect on all put-, ents used by American citizens and I even by the American government dur-; Ing the war." Senator Underwood said, were first J All sales of iherny alien property approved by a sales committee appointed ap-pointed by former President NVilson The senate Judiciary committee took up Senator Underwood s bill and appointed ap-pointed Senators Cummins. Jowa; i SterllnK, South Dakota, Republicans, and OverntUin, Democrat North Carolina Caro-lina as a CUOCOmmRlee to continue further consideration. on |