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Show 10URT UPHOLDS PATENT SALE U. S. Suit Against Chemical Foundation Dismissed by Judge Morris. CONSPIRACY CHARGE FAILS quires the President to consider the public Interest. Public Interest is not a synonym for money." In this relation Judge Morris quoted quot-ed from President Ooolidffe's message to Congress on the Muscle Shols problem, that "while the prloe Is an Important element, there is another consideration even more compelling. If this main object (low-priced nitrates for farmers in peace and the Government in war) is accomplished, the amount of money received tor the property is not a primary or major consideration." Referring to German-owned property, proper-ty, the court said: "Much of this property was not Conduct of Chemical Foundation Praised In Use of Former German Patents for Benefit of American Ameri-can People. Wilmington. Del. In a sixty-two page decision which swept away every ev-ery one of the Government's major contentions as being without basis in innocently held or held solely for trade and commerce. Information acquired ac-quired by German-owned companies had been transmitted to Berlin, and there indexed and made available to German competitors and the German Government The flies of one company com-pany were filled not with business papers, but with pan-German literature. litera-ture. It was a distribution centre for propaganda in this country." Upholds Confiscation of Patents Judge Morris pointed out tht when America entered the war she adhered to the international convention tor-bidding tor-bidding poison gas, "but It soon became be-came apparent that America would be fighting on disastrously unequal terms unless she should make use of all the dread weapons being used against her by the toe. When Germany persisted In her attempts to destroy her opponents oppo-nents with poison gas In contravention contraven-tion of all International agreements, she made It manifest that America's future safety lay In America's cheml- fact or law, Federal Judge Hugn m. Morris dismissed Its suit to set aside the sale of seized chemical and dye patents by the Allen Property Custodian Custo-dian to the Chemical Foundation, Inc. The decision rebuked the Government Govern-ment for including in the bill of complaint com-plaint a series of conspiracy charges unsupported by evidence at the trial and refuted by the defense as well as by documents filed by the Government. Govern-ment. In declining to compel the Foundation Founda-tion to restore the disputed patents, numbering some 4,700 and bought for cal Independence. The amendment to the act was passed In the darkest days of the war (allowing the sale of seized properties). It was thought Paris was about to fall and the Channel Chan-nel ports be taken." These were the circumstances, said the opinion, "which Impelled Congress to grant the President the broad powers of almost absolute ownership. It was the intent of Congress to subordinate mere property prop-erty rights to the welfare of the nation." na-tion." Of the. value of the patent sold, Judge Morris held, in accordance with the testimony, that while Dr. Carl Holderman, a German, asserted the Haber patents were worth $17,000,000 to the Germans, "the evidence is overwhelming over-whelming that they were and are without substantial affirmative value 1271,000, from the Government, Judge Morris held there was no evidence bearing out allegation ot a conspiracy by American manufacturers to effect a monopoly through the Foundation. The court ruled that there was no evidence of fraud or deceit practiced on President Wilson, Mr. Polk, Under Secretary ot State; Attorney General Palmer and other high officials of that Administration. Garvan'a Course Upheld The opinion praised Francis P. Gar-van, Gar-van, president ot the Foundation, and Its trustees, as having; met the most severe ot tests In their conduct ot the Foundation nhe test ot actual trial." They were declared by the court to afford, through their high Integrity and unquestioned patriotism, a thorough thor-ough assurance of loyalty to their trust "It has kept the faith." said the court of the Foundation's work. Judge Morris found without merit the Government's contention that the criminal laws were violated in that Mr. Garvan. as Alien Property Custo- to American citizens. Had these patents pat-ents been sold to Americans at public rather than private sale and only the net proceeds paid to their former enemy owners these owners would have suffered an almost total loss in the value of their property." dlan and thereby a public trustee, sold to himself as president ot the Foundation the patents In question. He had acted by direction ot President Presi-dent Wilson and his acts, supervised by the President under the tatter's wide war powers granted by Congress, Con-gress, could not be brought to court. Congress had not delegated legislative 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. Judge Morris recited that although Colonel Thomas R, Miller, present Custodian, who had approved two of the sales Involved, verified the complaint, com-plaint, in his testimony he admitted that he could not enumerate any of the tacts alleged to have been withheld with-held and suppressed from him. "In view of this testimony and the obvious fact that the power to charge persons with fraud and conspiracy is a weapon with which serious irreme- Praises Work of Foundation As to allegations that the sale was not to obtain a fair value, but to promote pro-mote the Interests of the chemical and dye Industries and that the transaction transac-tion was In legal effect granting a subsidy to private Industry, the Court commented, "this challenge to the motives ot the officers making the sale Is supported, I think, neither by the facts nor the law. Mr. Polk determined de-termined the public Interest would be j best Berved by a wide use of the Inventions In-ventions covered by the patents. It the property was sold under terms and conditions that assured Its being devoted to the public use It matters not what benefits or detriments may have flowed as incidents therefrom. "The property is in the keeping of men who have In its management no selfish interest to serve and whose devotion de-votion to the public Interest has been established," continued the opinion. "No better plan for devoting the dial Injury may be done to innocent persons it such charges are lightly made, it Is difficult to understand why the specific charges to which the foregoing testimony relates were made," wrote the court "Yet the remaining re-maining 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 conspirators, con-spirators, but It sought to have the charges sustained as against the officers of-ficers of the Government who formulated formu-lated and carried out In the public Interest In-terest the plan of sale. . . While 1 know ot no case where by Implication Implica-tion 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 Aot at first merely authorized custodianship cus-todianship ot German properties In this country, It 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 ot the nation, possessed of powers as broad as though he were absolute owner ot the seled properties. Under the provisions pro-visions ot the act. the President wms empowered to make any conditions ot sale he considered necessary In the circumstances. The tales In dispute were not made by the Custodian In hie capacity as a common-law trustee, but under the extraordinary powers devolving upon him as the President's 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 Its fair monetary value, It by no means follows that the Custodian, acting under supervision and direction di-rection of the President, may not do so." held the Court. "Obviously, the primary purpose of the act wan the protection of the nation, not the bpne-fit bpne-fit of the enemy. The trust was for the benefit 01 the nation--a public, not a private trust. The statute re- i property to public use has been suggested. sug-gested. The plan has stood the most severe ot all tests actual trlaL The defendant has kept the faith. This It has done, not only by granting licenses li-censes in furtherance of the purposes for which it was charatered, but also at Its great expense, by distribution of books and pamphlets showing the national necessity for practical development devel-opment of chemical science In America. Ameri-ca. It. perchance, those heretofore engaged In the Industries bare derived de-rived an Incidental advantage frpm the plan, that Incidental result cannot Invalidate a transaction lawfully consummated con-summated In the public Interest. The same charge would lie against the validity ot every tariff act The sale was in effect to America and Its citizens, not to those then engaged in chemical and allied industries." Judge Morris ruled that If the executives ex-ecutives entrusted by Congress with power of sale acted within the scope ot that power "their acts are not subject sub-ject to Judicial nullification or review. Invasion by the courts to determine whether the public Interest required the property be sold otherwise than undr the statutory conditions prescribed pre-scribed and to set aside the sale should the Judgment of the court be different from that of the President would be a Judicial nullification not only of the President's act but also of the act ot Congress conferring on the President the power to determine what the public interests required. What the publlo interest requires depends de-pends upon the conditions existing In the nation. Courts do not understand the 'state of the Union' and as, I apprehend, ap-prehend, are not equipped to ascertain It The statement of the reasons rea-sons actuating the President does not make his act any the less an act of discretion. It is conceded the President Presi-dent cannot be brought Into court to substantiate his reasons. The statute does not -equire him to disclose to the purchaser the evidence upon which his reasons were hased Tbf statute does not Mmlt the Rxecutlv in the assignment of reasons to suet as may be supported by legal evidence or by tacts available to the public." |