223 
 C42
 
 Legal Memoranda 
 
 Relating to Enemy Patents Sold by the Alien 
 
 Property Custodian to The Chemical 
 
 Foundation, Incorporated
 
 T 
 225 
 
 This book is DUE on the last date stamped below 
 
 
 "' 
 
 AUG 2 : 
 
 Form L-9-5m-12,'2i 
 
 Southern Branch 
 of the 
 
 University of California 
 
 Los Angeles 
 
 Form L. I 
 
 223 
 C42 
 
 \
 
 CALIFORNIA, 
 
 LIBRARY, 
 
 l_OS ANGELES, CALIF. 
 
 Legal Memoranda 
 
 Relating to Enemy Patents Sold by the Alien 
 
 Property Custodian to The Chemical 
 
 Foundation, Incorporated 
 
 Submitted in connection with testimony of Fran- 
 cis P. Garvan (President of the Chemical Foun- 
 dation, Incorporated) before a subcommittee of 
 the Senate Committee on the Judiciary, 67TH 
 Congress, 2D Session. 
 
 Printed for 
 
 The Chemical Foundation, Incorporated 
 
 1922 
 
 


 
 T 
 
 In response to numerous requests for copies 
 of these memoranda filed with the Senate Com-' 
 mittee, this pamphlet is printed. Minor clerical 
 errors and inaccuracies in the text have been 
 corrected, and some slight rearrangements have 
 been made in order to consolidate the four docu- 
 ments under one cover. 
 
 THE CHEMICAL FOUNDATION, INC. 
 
 New York City, July 1, 1922.
 
 TABLE OF CONTENTS 
 
 PART I PAGE 
 
 History of Amendment to Trading with the Enemy Act giving Alien Property Custodian 
 
 general power of sale, and of Amendment giving him right to seize patents 5 
 
 1. The custodian a mere conservator under Trading with the Enemy Act as originally 
 
 enacted 5 
 
 2. The President and Custodian given unlimited power of sale by Congress 6 
 
 3. Power given to seize and sell patents 8 
 
 PART II 
 
 Laws and Executive Orders under which the Alien Property Custodian seized enemy patents 
 
 and sold certain of same to The Chemical Foundation, Inc 11 
 
 1. Laws (Trading with the Enemy Act) 11 
 
 (a) Power of Sale under the original Act and as amended 11 
 
 (b) Property subject to sale under original Act, and as amended 12 
 
 2. Executive Orders 13 
 
 (a) President's power of supervising sales delegated to Frank L. Polk 13 
 
 (b) Sales to Foundation authorized by Mr. Polk 13 
 
 (c) Custodian makes sales 14 
 
 (d) Confirmatory action by President and Custodian 15 
 
 3. Decisions of United States Supreme Court on Trading with the Enemy Act 15 
 
 PART III 
 
 Rights of Enemy Nationals as to property sequestrated by Alien Property Custodian 18 
 
 1. Rights under the Act 18 
 
 2. Rights under the Treaties of Peace 19 
 
 (a) The Peace Resolution 20 
 
 (b) Treaties of Versailles, St. Germain and Trianon 20 
 
 3. Method of settling war claims heretofore followed by the United States 22 
 
 PART IV 
 
 The Patent Convention of 1909 between the United States and Germany, and its repugnancy 
 
 to the spirit of our patent law '. 24 
 
 APPENDIX 
 
 1. Excerpts from Trading with the Enemy Act and Amendments thereto 31 
 
 2. Executive Orders and Excerpts theref orm 44 
 
 (a) Executive Order, Oct. 12, 1917 44 
 
 (b) Executive Order, Feb. 26, 1918 45 
 
 (c) Executive Order, Dec. 3, 1918 46 
 
 (d) Executive Order, Feb. 26, 1919 47 
 
 (e) Executive Order, April 5, 1919 49 
 
 (f) Executive Order, Feb. 13, 1920 51 
 
 3. Assignment from Alien Property Custodian to The Chemical Foundation, Inc., April 10, 
 
 1919 52 
 
 4. Confirmation and ratification of certain sales and conveyance in confirmation and ratifica- 
 
 tion of the same by the Alien Property Custodian to The Chemical Foundation, Inc., 
 
 March 1, 1921 55 
 
 5. Patent Convention between the United States and Germany, 1909 59
 
 PART I. 
 
 HISTORY OF AMENDMENT TO TRADING WITH THE ENEMY ACT 
 
 GIVING ALIEN PROPERTY CUSTODIAN GENERAL POWER 
 
 OF SALE, AND OF AMENDMENT GIVING HIM 
 
 RIGHT TO SEIZE PATENTS. 
 
 1. The custodian a mere conservator under Trading with the Enemy 
 Act as originally enacted. 
 
 During the period intervening between the outbreak of the war in 
 Europe and the declaration of war by the United States, the operation of 
 the armies in the field had been only a part of the forces engaged in the 
 great struggle. The Allies had necessarily developed and applied to the 
 enemy all possible economic pressure. In both France and Great Britain, 
 sequestration acts had long since been in force exerting their power in 
 the common cause. It was but natural, therefore, that following our entry 
 into the war, before an American army in the field could become a realized 
 fact, Congress should by legislative enactment place beyond the control 
 and use of the enemy, all enemy property in this country and compel it to 
 serve in war against its former owners. On October 6, 1917, the "Trading 
 with the Enemy Act" was enacted, its main purposes being threefold: 
 
 (a) To prohibit trade with the enemy. 
 
 (b) To impound enemy funds for war financing. 
 
 (c) To sequester and conserve enemy property in the interest of the 
 United States or the persons ultimately entitled thereto for Congressional 
 disposition after the end of the war. 
 
 The first two have no place in this discussion. The third applies to 
 the sequestration and conservation of enemy property, and to its ultimate 
 disposition, as covered in Section 12 of the Act. An examination of this 
 section discloses that, while Congress had in mind the conservation of the 
 property, such conservation was provided not only to prevent loss or injury 
 to the property, but also to the end that its value might be made available 
 to the United States in the settlement of claims growing out of the war, 
 if it elected so to apply it. 
 
 That this latter consideration was present is apparent from the specific 
 provision of the sixth paragraph of Section 12 of the Act: 
 
 "After the end of the war any claim of an enemy or of an 
 ally of enemy to any money or other property received and held 
 by the Alien Property Custodian or deposited in the United States 
 Treasury shall be settled as Congress shall direct." 
 5
 
 6 
 
 This intent of Congress is further evidenced by the rejection of the 
 so-called Hill Amendment. This amendment was offered on the floor of the 
 House and was intended to alter the original Act so that after the end of 
 the war, upon proof of ownership, the former owner could recover his 
 property as Congress should direct. The adoption of this amendment 
 would have made the Act a declaration of trust in behalf of the enemy 
 owner. (Cong. Rec. July 11, 1917, p. 4985.) Nowhere in the Act does 
 Congress declare an intention to return enemy property, but it does un- 
 equivocally recognize the fundamental right of the United States as a 
 sovereign power, in the event of war to take and use as it sees fit enemy- 
 owned property within its borders. 
 
 That the Custodian's duties under the original Act were merely those 
 of conservation pending final action by Congress is clearly indicated by 
 that part of Section 12 which gives the Custodian power of disposition and 
 sale only: 
 
 "If and when necessary to prevent waste and protect such 
 property and to the end that interests of the United States in 
 such property and rights, or of such person as may ultimately 
 become entitled thereto or to the proceeds thereof may be pre- 
 served and safeguarded." 
 
 It will be borne in mind that the sequestration of enemy property 
 had never before been carried out in this country on such a large scale. 
 There had been confiscatory measures directed against the property of 
 Tories by certain of the revolutionary legislatures, and during the Civil 
 War Congress passed legislation of the same general character. But the 
 property affected by these measures was comparatively small in value, 
 and it was natural that at the beginning of our entrance into the World 
 War Congress in creating a new method of sequestration should have 
 thought it wise to preserve the form of the original enemy investments 
 as far as possible. In fact, as before stated, the proceedings show that 
 one of the actuating motives was to safeguard the property from the 
 waste and damage to which it would be otherwise subject because of the 
 disability of the former owners to take necessary measures for its pro- 
 tection. Their status as alien enemies would debar them from the right 
 to institute actions in American courts, and the stringent prohibitions of 
 the Act would effectively prevent communication with the agents who 
 were managing the property for them here. Moreover, neither the extent 
 nor the menacing character of the enemy's American industrial holdings 
 was then known. Congress therefore at this time saw no occasion to pro- 
 vide for the liquidation of these holdings. For the time being it seemed 
 sufficient to remove any possibility of the enemy's receiving the benefit 
 of his American investments, and to reserve the property for use in the 
 peace negotiations should it later appear advisable so to employ it. 
 
 2. The President and Custodian given unlimited power of sale by 
 Congress. (Amendment March 28, 1918.) 
 
 At the time of the passage of the original Act there was but a vague 
 idea of the extent of enemy holdings in this country. The suggestion
 
 was made to the committee that an office force of not over thirty-five, 
 including clerical help, would suffice to handle the entire operation of the 
 Custodian's office, and the Custodian, upon his appointment, planned his 
 organization to handle a maximum of 15,000 reports of such enemy 
 property. How far apart estimate and fact proved to be is shown by the 
 filing of 47,000 separate reports of property belonging to more than 37,000 
 individual enemies. The office force was enlarged nearly twentyfolcl beyond 
 the expectations of Congress, yet Armistice Day found new reports of 
 enemy holdings arriving with a daily regularity and volume but slightly 
 less than that of six months before. Even more than two years later volun- 
 tary reports of enemy holdings were still being received. The amount of 
 enemy property discovered and taken over is known. The amount success- 
 fully concealed, illegally transferred, or not reported through ignorance of 
 the law, will never be known. It is, however, safe to say that all, or nearly 
 all, of the holdings inimical to the economic welfare of our country were 
 sequestrated under the law. 
 
 Shortly after the Act became operative it developed that many of 
 the major enemy investments in this country were part of a far-reaching 
 and effective plan designed to control our basic industries; that, at the 
 time these investments were made, they were unfriendly to this country 
 and if permitted to exist would remain unfriendly, even after peace was 
 declared. 
 
 It is unnecessary here to detail the facts as they were found to exist 
 in the metal, textile, wireless, magneto, fur and other industries. For a 
 full account, reference may be had to the report of A. Mitchell Palmer, 
 Alien Property Custodian, February 15, 1919, pp. 63-155. 
 
 The Alien Property Custodian began the duties of his office on October 
 22, 1917. The first three months of operations were necessarily consumed 
 in organization and in classifying the vast amount of information con- 
 cerning enemy properties which poured into Washington in response to 
 the law. It was but a few weeks after this when intensive study by the 
 Custodian's staff had revealed the surprising extent and strength of Ger- 
 man's holdings in key industries in this country and the important part 
 which she had assigned to them, not only in the field of commerce, but 
 in the actual conduct of the war itself. 
 
 On March 7, 1918 the Custodian laid the situation before the Senate 
 Committee on Appropriations, which then had under consideration a 
 bill for deficiency appropriations, a rider to which would afford a ready 
 means for the immediate enactment of such legislation as Congress might 
 deem adequate as to meet the emergency. At the hearing the particular 
 attention of the committee was directed to the fact that if the plan of 
 mere conservation of these enemy holdings in key industries was adhered 
 to, its effect would be to pile up great accumulations of profits arising out 
 of the war, possibly for the ultimate benefit of the very men whose selfish 
 ambitions in large measure had been responsible for bringing on the 
 struggle. (See Cong. Rec., March 11, 1918, pp. 3316 et seq.) 
 
 In March, 1918 the Great German offenisve had been launched and
 
 8 
 
 appeared well on its way toward Paris and the Channel ports ; England 
 had announced that she was "fighting with her back to the wall," and 
 the realization had come to this country, as well as to the Allies, that 
 every available force must be at once brought into play and exerted to 
 the utmost in order that imminent catastrophe might be averted. Con- 
 gress could not have failed to see that by changing the Custodian's powers 
 as to the disposition of property from those of a mere curator to those 
 of an absolute owner, a blow might be dealt the enemy which would shake 
 to their very foundations his industrial fortresses beyond the Rhine. And 
 seeing this, it exercised its constitutional war powers to this end by the 
 passage of the amendment granting to the President and Custodian the 
 unlimited power of sale. (March 28, 1918.) 
 
 3. Power given to seize and sell patents. (Amendment Nov. 4, 1918.) 
 But little progress had been made in the sales program before very 
 serious difficulties were encountered in disposing of stock in corporate 
 enterprises where the business was based on patent rights or the manu- 
 facture of a patented article. In cases where the title to the patent or 
 patents was vested in the corporation, these difficulties did not arise. In 
 many cases, however, title to the patents essential to the life of the busi- 
 ness was vested in one or more individual enemies who had in many 
 instances granted but oral permission to use the patents. Title to these 
 patents could not pass with the stock and the stock was practically worth- 
 less without the patents. The situation is explained by a statement of 
 Ramsay Hoguet, a patent attorney of New York, which statement was 
 read before the Senate Committee during consideration of this amend- 
 ment. (Hearing before Subcommittee, Senate Committee on Appropria- 
 tions on H. R. 13086, Oct. 21, 1918, pp. 82-84) : 
 
 "C. P. Goerz American Optical Co. This company is one of the 
 German-owned American concerns, the stock of which the Custo- 
 dian has taken over and is about to offer for sale to an American 
 purchaser. The business of the concern is manufacturing and 
 selling lenses and photographic apparatus. It is one of the three 
 or four largest concerns in the United States. More than 50 per 
 cent of the devices and apparatus manufactured and sold by this 
 concern are covered by United States letters patent, which are 
 not owned by the concern itself, but under which the concern has 
 a right to manufacture under license. The right which this 
 American concern has under these German-owned patents is 
 simply the right to continue to manufacture and sell the devices 
 as long as the German concern allows it to do so. . . ." 
 
 "G. Siegle Company. In the case of this corporation the 
 agreement between the American and German companies was 
 such that it raised a distinct doubt as to whether the good will 
 and trade-marks of the German company were conveyed to the 
 American so that it was impossible to assure the purchaser that 
 he would be permitted to carry on the business under the name 
 it theretofore had been carried on under and to use the trade- 
 marks in the business which they had adopted and had acquired 
 great value." 
 
 "It should be borne in mind in all cases that the time allowed
 
 9 
 
 for investigation is so short that a purchaser must to some extent 
 rely upon the representations made to him by the Governmental 
 officers having the sale in charge, and that the average purchaser 
 believes that he can secure no better title than that conveyed to 
 him by the Government of the United States. It is at present 
 impossible to guarantee to the prospective purchaser that he will 
 be permitted to conduct the business he purchases because of 
 patent infringement, and thus the purchaser may be very seri- 
 ously misled and may believe that he is buying a going business 
 when in fact he is purchasing merely the buildings and machin- 
 ery (very often of no use whatever except for the practice of 
 certain patented processes and for the manufacture of certain 
 patented articles) without any opportunity of using the physical 
 assets of the concern for the purpose for which they were intended 
 without laying himself open to a charge of infringement. . . ." 
 "Atlantic Communication Co. In the case of the Atlantic 
 Communication Co., it is proposed to transfer to the Navy Depart- 
 ment the wireless plant located at Sayville, Long Island, and all 
 of the patent rights under which this station is operated. The 
 American corporation which operated the station holds merely a 
 license to operate under Letters Patent owned by a German com- 
 pany, and a sale of the license to the Navy Department would, of 
 course, place the Department under the obligation of paying 
 royalties, accounting, etc., to the German company. While these 
 royalties, in the case of mere operation of the plant, are not 
 excessive, a sale of any apparatus, under the patents carries a 
 20 per cent royalty under the license. Inasmuch as the Navy 
 Department is now equipping all of the ships being built by the 
 Emergency Fleet Corporation with wireless apparatus, it will be 
 impossible to sell the wireless apparatus located on these ships to 
 the ultimate purchasers of the ships without paying a license fee 
 to the German patent owners and without accounting for each 
 installation placed in use upon a United States ship. There are 
 also a considerable number of patents the titles to which are in 
 the names of individual German owners, which the Navy Depart- 
 ment desires to acquire in order to be free to operate its large 
 number of stations (both ship and shore) without interference 
 by way of patent litigation. As the Act stands at present the 
 Navy Department can not operate under these patents except by 
 securing a license from the German owners and subjecting itself 
 to patent suits after the war and to the payment of a royalty 
 in accordance with the provisions of section 10 and accounting 
 for every installation made and subjecting itself to terms which 
 the Navy Department could not comply with, such as inspection, 
 etc." 
 
 Further, Mr. Lee Bradley, chief counsel for the Custodian, appeared 
 before the committee and said, in part (pp. 81, 84) : 
 
 ". . . In the urgent deficiency bill approved March 28 
 the last page of the printed copy contains it Congress conferred 
 the unrestricted power of sale on the Alien Property Custodian, 
 striking out all limitations about cases only of waste and the like. 
 Following that amendment, the Alien Property Custodian, with 
 the approval of the President, formulated the policy of selling 
 the enemy interest in all enemy going businesses in this country. 
 That was done because they were found invariably to be nests of
 
 10 
 
 espionage, and outposts of their propaganda and sabotage and 
 general deviltry, and of course they constitute a very powerful 
 strangle hold on the industry and commerce of the country. But 
 experience has demonstrated that the power of sale thus con- 
 ferred, although unlimited in its terms, is ineffective, for two 
 reasons in particular:" 
 
 "First, the prevailing legal opinion . is that patents are not 
 included within the enemy property which is subject to seizure 
 and sale by the Alien Property Custodian. That opinion prevails 
 because of the specific treatment given to patents, copyrights, 
 trade-marks, and other similar species of property by Section 10 
 of the Act. The only power in reference to these species of prop- 
 erty is the power conferred upon the President to license their 
 use within certain limits that are defined, and those licenses may 
 either be for a fixed term or for the life of the patent, as the 
 Federal Trade Commission to which the President has dele- 
 gated the power of Section 10 may decide. But any license so 
 granted is subject to judicial review after the end of the war 
 as to the license fees paid thereunder; and it goes even to the 
 extent of authorizing the court, if it thinks proper so to do, to 
 cancel the license in its entirety." 
 
 "We find in these concerns that the patented process is 
 important, and indeed indispensable in the great majority of 
 cases. We find, furthermore, even in the case of an American 
 corporation where the enemy owns the stock, that the patent 
 itself is rarely owned by the corporation, but that the corporation 
 exercises a mere license, the title to the patent itself standing 
 in the name of the enemy, some individual stockholder and prob- 
 ably a predominating stockholder, and the corporation exercising 
 the patented process under a license which in many instances is 
 revocable at will. That seems to be a favorite German method. 
 
 "This general subject has been considered at some length 
 by the Department of Justice the legal features of it, of course 
 and also quite extensively with the general counsel of the 
 Federal Trade Commission, Mr. Walsh, and Mr. Walsh has stated 
 very broadly that he feels and I assume he voices the views of 
 the Commission that this Act should be amended so as to confer 
 the power upon the Alien Property Custodian, or upon the Presi- 
 dent, to seize patents, copyrights, trade-marks, and other similar 
 pieces of property, and deal with them as provided by the terms 
 of the Act in respect of all other enemy property." 
 
 The doubt as to the power of the Custodian to seize and sell patents 
 was thus first raised by attorneys representing prospective purchasers of 
 stock in enterprises founded upon the use of patents not owned by the 
 corporation. This question arose by reason of the provisions of Section 10 
 of the Act, which, among other things, provided for the licensing of Amer- 
 ican citizens in the use of enemy-owned patents as therein provided. 
 
 The phraseology of Section 10 may have been sufficient basis for the 
 belief that Congress intended originally to except enemy-owned patents 
 from sequestration. It is not, however, ground for belief or argument that 
 Congress, in making this apparent exception did so because the enemy 
 owners thereof possessed rights any more sacred than the owners of
 
 11 
 
 other classes of property. On the contrary, the Congress plainly recog- 
 nized the necessity of saving to this country, its army, navy and manufac- 
 turers the general use of these patents, not only during the war, but, if 
 need be, throughout the life of the patent. The licensing procedure pro- 
 vided in this section was doubtless at the time of the passage of the Act 
 deemed to be an expedient method of insuring this general and necessary 
 use. 
 
 Congress, therefore, realizing the necessity of extending the Custo- 
 dian's power of seizure to patents, copyrights and trade-marks, in order 
 to give full effect to the power of sale already granted, amended Section 
 7 (c) of the Act (Nov. 4, 1918) in such a manner as to effect this purpose. 
 
 PART II. 
 
 LAWS AND EXECUTIVE ORDERS UNDER WHICH THE ALIEN 
 
 PROPERTY CUSTODIAN SEIZED ENEMY PATENTS AND SOLD 
 
 CERTAIN OF SAME TO THE CHEMICAL FOUNDATION, INC. 
 
 1. LAWS (TRADING WITH THE ENEMY ACT). 
 
 The Alien Property Custodian (appointed under Section 6 of the law) 
 sold the patents, copyrights and trade-marks now owned by the Founda- 
 tion to it under the provisions of the Trading with the Enemy Act, as 
 amended. 
 
 It will prove of interest to make a review of the most important fea- 
 tures of the operation of the officers of the Government under this law. 
 
 (a) POWER OF SALE UNDER THE ORIGINAL ACT 
 AND AS AMENDED. 
 
 Under Section 12 of the law, when first enacted, the disposition and 
 sale of enemy property was permissible only in case such action was neces- 
 sary to prevent waste and protect the property, and to the end that the 
 interests of the United States in such property, or those of such persons 
 as might ultimately become entitled thereto, or the proceeds thereof, might 
 be preserved and safeguarded. This provision for sale was radically 
 changed by the amendment on March 28, 1918. All of the language limiting 
 the Custodian in his power of sale to such cases as involved waste and the 
 like was struck out, and Congress in direct verbiage conferred upon the 
 Custodian the unrestricted power to make any disposition, of the properties 
 he held, by sale or otherwise, in like manner as though he were the absolute 
 owner. This power was subject to the supervision and direction of the 
 President of the United States. Further, the amendment provided that 
 any property so sold, except when sold to the United States, should be 
 sold only to American citizens, at public sale to the highest bidder, after 
 public advertisement of time and place of sale, which should be where 
 the property or a major portion of it was situated, unless the President 
 stating the reasons therefor in the public interest should otherwise 
 determine.
 
 12 
 
 (b) PROPERTY SUBJECT TO SALE UNDER ORIGINAL ACT, 
 AND AS AMENDED. 
 
 All property which the Custodian held was subject to disposition 
 under this amendment. By virtue of Section 7 (c) of the Act as originally 
 enacted, the President was authorized to require that any money or other 
 property owing or belonging or held for the benefit of an enemy or ally 
 of enemy as defined in the Act, not holding a license granted by the Presi- 
 dent, which he determined was so owing or so belonging or so held, should 
 be conveyed and delivered over to the Alien Property Custodian; and all 
 such property was to be held and administered by him as provided in Sec- 
 tion 12. 
 
 It was considered that the unlimited power of sale was ineffective as 
 the law was not broad enough in scope to authorize the President to require 
 the delivery and conveyance of enemy-owned patents, copyrights and 
 trade-marks, so thereafter Congress passed an amendment to this section 
 of the law (Section 7 (c) ), approved November 4, 1918, which in express 
 words authorized the President to require the conveyance and delivery 
 of patents, copyrights and trade-marks which he determined were so 
 owned or held to the Custodian ; and the latter official was also empowered 
 to seize the same; and similarly all such patents, copyrights and trade- 
 marks were to be held and administered under the same powers. (Sec- 
 tion 12.) 
 
 Enemies and allies of enemies whose property was thus subjected to 
 a possible seizure and sale by the Alien Property Custodian at no time 
 have included German and Austro-Hungarian citizens who were peaceably 
 residing in the United States. In fact, the Custodian was never authorized 
 to seize any property belonging to enemy citizens living in this country, 
 with the exception of those who had been interned by the War Department. 
 Although the persons included within the terms "enemy" and "ally of 
 enemy" were defined by Congress to include a number of classes, by far 
 the greater portion of those affected were German and Austro-Hungarian 
 citizens or subjects residing within the territorial limits of their own 
 countries. 
 
 By virtue of this authority of seizure, including the power delegated 
 to him by the President (Executive Orders dated October 12, 1917, Febru- 
 ary 26, 1918, and December 3, 1918) the Alien Property Custodian was 
 vested with the entire executive administration of the provisions of Section 
 7 (c) both prior and subsequent to its amendment. 
 
 The seizure by the Custodian of patents, copyrights and trade-marks 
 and the recordation of the instrument of seizure operated as a conveyance 
 to him of the property so seized and gave him full possession and owner- 
 ship. The Act in this regard provides (Section 7 (c) ) that any such 
 requirement might be recorded in the Patent or Copyright office, as the 
 case might be, and that if so recorded should impart the same notice and 
 have the same force and effect as a duly executed and recorded assignment.
 
 13 
 
 2. EXECUTIVE ORDERS, (a) PRESIDENT'S POWER OF SUPER- 
 VISING SALES DELEGATED TO FRANK L. POLK. 
 
 The President's power to supervise and direct the disposition of 
 property by the Custodian, and to waive the requirement for public sale 
 where the public interest demanded it, was delegated by him under author- 
 ity of Section 5 (a) to Mr. Frank L. Polk, through an executive order 
 issued December 3, 1918. Mr. Polk was the then Acting Secretary of 
 State, although the delegation was made to him as an individual. Presum- 
 ably the reason for the issuance of the order was the President's contem- 
 plated absence from the country. 
 
 (b) SALES TO FOUNDATION AUTHORIZED BY MR. POLK. 
 
 Mr. Frank L. Polk thereafter issued certain orders, by virtue of this 
 power and authority authorizing the Custodian to make the sales of pat- 
 ents, copyrights and trade-marks to The Chemical Foundation, Inc. 
 
 The first of these orders was issued on February 26, 1919. This order 
 recites that by virtue of the authority of the President vested in him by 
 the provisions of the Act and the amendments made to Sections 12 and 
 7 (c) thereof on March 28, 1918, and November 4, 1918, respectively, which 
 authority has been delegated to him (Frank L. Polk) by Executive Order 
 of December 3, 1918, (above mentioned) , he thereby in the public interest 
 determined and ordered : 
 
 1. That the Custodian might release and discharge the 
 United States of America and any department thereof upon such 
 terms and conditions as to the Custodian seemed proper, from 
 any and all claims and demands arising from any alleged infringe- 
 ment of the letters patent and trade-marks and rights thereunder 
 thereafter referred to. 
 
 2. That the Custodian might sell at private sale, without 
 public or other advertisement, to The Foundation at such place 
 and upon such terms and conditions as to the Custodian, or his 
 authorized agent, might seem proper, all of the letters patent and 
 trade-marks and rights thereunder, including all damages at law 
 and in equity for the past infringement thereof, which the Custo- 
 dian had seized or might seize under the Act, and which he (the 
 Custodian) should from time to time determine to relate to the 
 objects and purposes of The Foundation as expressed and defined 
 by its charter. 
 
 The order then recites the reasons in the public interest for the fore- 
 going determinations. 
 
 1. That the letters patent, trade-marks and similar rights 
 could not be sold to the best advantage at public sale after public 
 or other advertisement. 
 
 2. That The Foundation had been incorporated for the 
 purpose of holding letters patent, trade-marks and similar rights 
 relating to the chemical and allied sciences as trustee for Ameri- 
 can industry, for the purpose of the Americanization of such 
 industries as may be affected thereby, of eliminating alien inter- 
 ests hostile to said American industries and of the advancement 
 of chemical and allied industries in the United States. That The
 
 14 
 
 Foundation was obligated to grant non-exclusive licenses upon 
 equal terms at a uniform royalty to qualified American manu- 
 facturers and is empowered to grant free licenses to the United 
 States for any use the United States might desire to make of 
 the inventions covered by the letters patent and similar rights. 
 
 3. That the public interest would be best served by a wide 
 use of the inventions covered by the letters patent and similar 
 rights and that such wide use could be most readily promoted by 
 the licenses which The Foundation by its charter was obligated 
 to grant. 
 
 4. That a private sale would prevent the said letters patent, 
 trade-marks and similar rights from falling into the hands of 
 purchasers who would be unwilling or unable to put the inventions 
 covered thereby into use or would use them for purely specula- 
 tive purposes. 
 
 5. That it would be impossible to make a public sale of 
 the said letters patent, trade-marks and similar rights so as to 
 secure the foregoing benefits to the public. 
 
 6. That unnecessary expense, delay and inconvenience may 
 be avoided by private sale. 
 
 Subsequent to the issuance of the foregoing order Mr. Polk issued 
 an order on April 5, 1919, authorizing the sale to The Foundation of copy- 
 rights, certificates of registration thereof, publications upon which such 
 registrations were granted, applications for letters patent and for the 
 registration of trade-marks and copyrights and all rights thereunder. 
 This order contains substantially the same recitations and determinations 
 as the order of February 26, 1918, and was issued for the purpose of 
 extending the provisions of that instrument. This is clear after noting 
 the first determination and order made then, which provides: 
 
 "A similar order, rule and regulation relating to letters pat- 
 ent, trade-marks and similar rights has been made by me the 
 twenty-sixth day of February, 1919, and this order is supple- 
 mental thereto and necessary to fully carry out the objects and 
 purposes of said order of February 26, 1919." 
 
 (c) CUSTODIAN MAKES SALES. 
 
 The Alien Property Custodian pursuant to these orders and to the 
 authority vested in him by the Act thereafter consummated the sale of 
 divers letters patent, copyrights and trade-marks, together with all rights 
 and benefits appurtenant to the ownership thereof, including all claims 
 and demands for the past infringement thereof, to The Foundation. 
 
 This sale did not include, and properly so, any conveyance of claims 
 and demands against the Government of the United States for any past 
 infringement by it of the various items so sold. 
 
 The first and major assignment of the Custodian to The Foundation 
 was executed on April 10, 1919, and this conveyance expressly excluded 
 any claim or demand for infringement as against the United States Gov- 
 ernment. 
 
 The assignment was subject further to the rights of citizens of the 
 United States or of friendly nations as had been set forth in the seizure 
 orders.
 
 15 
 
 From time to time thereafter the Custodian executed further assign- 
 ments, many of which were corrective in character, although additional 
 items were also conveyed. These assignments (which are not annexed 
 as exhibits) contain substantially the same provisions of the assignment 
 of April 10, 1919, which may be found hereto attached. 
 
 (d) CONFIRMATORY ACTION BY PRESIDENT AND CUSTODIAN. 
 
 Following the return of the President from abroad, an Executive Order 
 was issued by him on February 13, 1920, which was confirmatory in char- 
 acter. In this order, after reciting the power vested in him, the authoriza- 
 tion of the Alien Property Custodian to sell to The Foundation, by virtue 
 of Mr. Folk's orders, certain choses in action, and rights, interests and 
 benefits; the intention of such orders to so authorize the sale of all such 
 choses in action, rights, interests, benefits under agreements, rights and 
 claims of any character and description including rights to receive moneys 
 by way of royalties or otherwise as compensation for the use of patents, 
 copyrights and trade-marks as the Custodian may have seized, and the 
 doubt that had arisen as to the Custodian's authority to make such a sale, 
 the President in the public interest determined and ordered: That the 
 Custodian was authorized (a) to make such sale to The Foundation in 
 the manner therein provided, and (b) in case of sales theretofore made 
 of property which he was thereby authorized to sell, but as to which his 
 prior authority under Mr. Polk's orders was deemed doubtful, to confirm 
 and ratify the same by suitable instrument of confirmation. 
 The order is concluded by the following: 
 
 "My reasons for the foregoing determination and order are 
 stated in the said orders of Frank L. Polk of the 26th of February, 
 1919, and the 5th of April, 1919 ; and in addition thereto, the pub- 
 lic interest will be best served by the elimination of any enemy 
 interest adverse to American citizens arising by reason of said 
 choses in action, or rights, interests and benefits under agree- 
 ments and by the devoting of any payments made by reason of 
 said choses in action or under said agreements by The Chemical 
 Foundation, Inc., to the promotion of the objects stated in its 
 charter." 
 
 And in pursuance of this order, the Alien Property Custodian con- 
 firmed and ratified to The Foundation, by instrument dated March 1, 1921, 
 all sales theretofore made to it by him. 
 
 3. DECISIONS OF UNITED STATES SUPREME COURT 
 ON TRADING WITH THE ENEMY ACT. 
 
 This concludes the comment on the laws and orders under which the 
 sales were made to The Foundation. It may prove of general interest, 
 however, to add a reference to the cases (two in number) involving the 
 construction of the Trading with the Enemy Act and the exercise of 
 powers thereunder which have, up to this time, been decided by the 
 Supreme Court of the United States. Many other such cases, of course, 
 have been determined by various lower courts and might be discussed did 
 space permit, but these two cases will be found of peculiar interest, not
 
 16 
 
 only as an expression of opinion from our highest court, but also because 
 they interpret some portions of the Act dealt with above. 
 
 In Central Union Trust Company vs. Garvan (January 24, 1921), 254 
 U. S. 554, 65 L. Ed. , the court said: 
 
 As to the constitutionality of the Act: 
 
 There can be no doubt that Congress has 
 
 power to provide for an immediate seizure in war times of prop- 
 erty supposed to belong to the enemy, as it could provide for an 
 attachment or distraint, if adequate provision is made for a return 
 in case of mistake. 
 
 As to delegation of Presidential authority: 
 
 The first question then is whether the Cus- 
 todian had the right to make the demand. By Sec. 5 the Presi- 
 dent may exercise any power or authority conferred by the Act 
 through such officers as he may direct. It is admitted that he 
 has exercised the powers material to these cases through the 
 Enemy Property Custodian and by the Act of November 4, 1918, 
 c. 201, 40 Stat. 1020, the Custodian is. given the right to seize. 
 By Sec. 7 (c), as originally enacted, 'If the President shall so 
 require, any money or other property owing or belonging to or 
 held for, by, on account of, or on behalf of, or for the benefit 
 of any enemy or ally of an enemy not holding a license granted 
 by the President hereunder, which the President after investi- 
 gation shall determine is so owing or so belongs, or is so held, 
 shall be conveyed, transferred, assigned, delivered or paid over 
 to the Alien Property Custodian.' We are to take it therefore that 
 the President has 'so required,' and that a case is made out under 
 Sec. 17 unless we are to consider the defences interposed." 
 
 As to effect of Custodian's demand and his power of sale : 
 
 "* * * If we look no further than Section 7 (c), it 
 is plain that obedience to the statute requires an immediate trans- 
 fer in any case within its terms without awaiting a resort to the 
 Courts. The occasion of the duty is a demand after a deter- 
 mination by the President and it is hard to give much meaning 
 to the words 'which the President after investigation shall deter- 
 mine is so . . . held,' unless the determination and demand 
 call the duty into being. The condition 'after investigation' addi- 
 tionally points to the intent to make his act decisive upon the 
 point, as it is in other cases mentioned in Sec. 7 (a)." 
 
 "To the conclusion that we reach it is objected that the 
 Custodian gets a good deal more than bare possession that the 
 property is to be conveyed to him, and that by the Act of March 
 28, 1918, c. 28, 40 Stat. 459, 460, enlarging Sec. 12, the Custodian 
 'shall be vested with all of the powers of a commonlaw trustee 
 in respect of all property, other than money, which has been or 
 shall be, or which has been or shall be required to be, conveyed,' 
 etc., to him, and is given the power to sell and manage the same 
 as though he were absolute owner. All this may be conceded if 
 no claim is filed. But this act did not repeal Sec. 9, which is 
 amended by the later Acts of July 11, 1919, c. 6, 41 Stat. 35, and 
 of June 5, 1920, c. 241, 41 Stat. 977, and as we have said, pro- 
 vides for immediate claim and suit and requires the property in 
 cases of suit to be retained in the custody of the Alien Property 
 Custodian or in the Treasury of the United States to abide the
 
 17 
 
 result. The present proceeding gives nothing but the preliminary 
 custody such as would have been gained by seizure. It attaches 
 the property to make sure that it is forthcoming if finally con- 
 demned and does no more." 
 
 In Stoehr vs. Garvan (February 28, 1921), 255 U. S. 239, 65 L. Ed., 
 the court said: 
 
 As to constitutionality of the Act: 
 
 "* * * The Trading with the Enemy Act, whether 
 taken as originally enacted, October 6, 1917, c. 106, 40 Stat. 411, 
 or as since amended, March 28, 1918, c. 28, 40 Stat. 459, 460; 
 November 4, 1918, c. 201, 40 Stat. 1020; July 11, 1919, c. 6, 41 Stat. 
 35 ; June 5, 1920, c. 241, 41 Stat. 977, is strictly a war measure and 
 finds its sanction in the constitutional provision, Art. 1, Sec. 8, Cl. 
 11, empowering Congress 'to declare war, grant letters of marque 
 and reprisal, and make rules concerning captures on land and 
 water.' 
 
 Brown vs. United States, 8 Cranch 110, 126 ; 
 
 Miller vs. United States, 11 Wall. 268, 305." 
 
 "* That Congress in time of war may authorize 
 
 and provide for the seizure and sequestration through executive 
 channels of property believed to be enemy-owned, if adequate pro- 
 vision be made for a return in case of mistake, is not debatable. 
 Central Union Trust Co. v. Garvan, supra. There is no warrant 
 for saying that the enemy ownership must be determined judi- 
 cially before the property can be seized; and the practice has 
 been the other way. The present act commits the determination 
 of that question to the President, or the representative through 
 whom he acts, but it does not make his action final. On the 
 contrary, it distinctly reserves to any claimant who is neither 
 an enemy nor an ally of an enemy a right to assert and establish 
 his claim by a suit in equity unembarrassed by the precedent 
 executive determination. Not only so, but pending the suit, which 
 the claimant may bring as promptly after the seizure as he chooses, 
 the property is to be retained by the Custodian to abide the result, 
 and, if the claimant prevails, is to be forthwith returned to him. 
 Thus there is provision for the return of property mistakenly 
 sequestered; and we have no hesitation in pronouncing it ade- 
 quate, for it enables the claimant, as of right, to obtain a full 
 hearing on his claim in a court having power to enforce it if 
 found meritorious. 
 
 As to delegation of Presidential authority : 
 
 "* * * The President, by orders of October 12, 
 1917, and February 26, 1918, committed to the Alien Property 
 Custodian the executive administration of Sec. 7 (c) , including the 
 power to determine after investigation whether property was 
 .enemy-owned, etc., and to require the surrender or seizure of 
 such as he should determine was so owned. 
 
 One objection urged by the plaintiff is that 
 
 the seizure permitted by the Act is confined to money or property 
 'which the President after investigation shall determine' is 
 enemy-owned, etc., and that here there was no such deter- 
 mination by the President, but only by the Custodian. Whether 
 the objection would be good if it turned entirely on the words
 
 18 
 
 of Sec. 7 (c), on which the plaintiff relies, we need not consider; 
 for they obviously are qualified and explained by Sec. 5, which 
 very plainly enables the President to exercise his power under 
 Sec. 7 (c) 'through such officer or officers as he may direct.' By 
 the orders already noticed the President directed that this power 
 be exercised through the Alien Property Custodian. It therefore 
 is as if the words relied on had been 'which the President acting 
 through the Alien Property Custodian, shall determine after in- 
 vestigation' is enemy-owned, etc. In short, a personal determi- 
 nation by the President is not required ; he may act through the 
 Custodian, and a determination by the latter is in effect the act 
 
 of the President. Central Union Trust Co. v. Garvan, ante. ; 
 
 The Confiscation Cases, 20 Wall. 92, 109. 
 
 As to the Treaty with Prussia proclaimed March 14, 1829 (2 Malloy's 
 Treaties, etc., between United States and other powers, p. 1496) : 
 
 "* * The treaty provisions relied on (Articles 23 
 
 and 24, 8 Stat. 174) relate only to the rights of merchants of 
 either country 'residing in the other' when war arises, and there- 
 fore are without present application. 
 
 PART III. 
 
 RIGHTS OF ENEMY NATIONALS AS TO PROPERTY SEQUESTRATED 
 
 BY ALIEN PROPERTY CUSTODIAN. 
 
 1. RIGHTS UNDER THE ACT. 
 
 That during war Congress enjoys the power to confiscate enemy prop- 
 erty, has since the case of Brown v. United States (1814) 8 Cranch 110, 
 not been open to argument. In that case Chief Justice Marshall said 
 in part : 
 
 That war gives to the sovereign full right 
 
 to take the persons and confiscate the property of the enemy, 
 wherever found, is conceded. The mitigations of this rigid rule, 
 which the humane and wise policy of modern times has intro- 
 duced into practice, will more or less affect the exercise of this 
 right, but can not impair the right itself. That right remains 
 undiminished, and when the sovereign authorities shall choose to 
 bring it into operation, the judicial department must give effect 
 to its will. 
 
 The Trading with the Enemy Act, although not enacted as an act 
 of confiscation, nevertheless reserves to Congress the full and complete 
 authority to dispose of the properties held by the Custodian as it may 
 choose, Section 12 providing that 
 
 "After the end of the war any claim of an enemy or of an 
 ally of enemy to any money or other property received and held 
 by the Alien Property Custodian or deposited in the United 
 States Treasury shall be settled as Congress shall direct." 
 
 An examination of the committee hearings and debates on the bill 
 will shov that Congress appreciated that there would be many matters 
 to be adjusted between the belligerent countries when the war was over,
 
 19 
 
 and deemed it advisable that all such property should be withheld from 
 the former owners pending, and as a force, in the conclusion of the re- 
 spective claims that might be asserted. (65th Congress, 1st Session, H. R. 
 4960). 
 
 It is thus seen that by the Act the former enemy owners are estopped 
 to bring any character of action with regard to the recovery of their 
 properties, or the proceeds of the sale of such properties until Congress 
 has legislated on the subject. The only exceptions to the foregoing were 
 specifically provided by Congress. By various amendments to Section 9 
 of the Act, which is the relief section (Acts of July 11, 1919; June 5, 
 1920; February 27, 1921) Congress permitted, among others (of no im- 
 portance in this discussion) certain of the aforementioned German and 
 Austro-Hungarian subjects who, under the treaties of peace designated 
 therein (Amendment of June 5, 1920), had acquired citizenship in newly 
 created states or allied nations, chiefly by reason of the changes made in 
 sovereignty over territories which prior to the war formed a part of Ger- 
 many and Austria-Hungary, to recover from the Custodian any property 
 he held belonging to them in kind, or if it had been sold, the proceeds of 
 such sale. 
 
 In case of sale, such claimants are limited strictly to the proceeds of 
 sale; Section 7 (c) as amended specifically providing that the sole relief 
 and remedy of any persons having a claim to properties held by the Cus- 
 todian shall be 
 
 "that provided by the terms of this Act and in the event of sale 
 or other disposition of such property by the Alien Property Cus- 
 todian shall be limited to and enforced against the net proceeds 
 received therefrom. 
 
 2. RIGHTS UNDER THE TREATIES OF PEACE. 
 
 This reservation by Congress as to what claims, if any, shall be here- 
 after allowed by it to former enemy owners and the power of ultimate 
 disposition of such property and proceeds of sale, so preserved by the Act 
 itself, have been confirmed to the United States through the recent treaties 
 of peace by the Government of Germany, Austria and Hungary, on behalf 
 of themselves, respectively, and their nationals. (See Treaties of Peace, 
 all ratified by the Senate, 67th Congress, 1st Session, October 18, 1921 ; 
 with Germany, signed August 25, 1921, Senate Document No. 70; with 
 Austria, signed August 24, 1921, Executive Document H; with Hungary 
 signed August 29, 1921, Executive Document I.) 
 
 These treaties with but minor modifications are similar in tenor and 
 specifically reserve to the United States and its nationals any and all 
 rights, privileges, indemnities, reparations, or advantages, with the right 
 to enforce the same, to which they have become entitled (a) by the terms 
 of the armistice upon which peace was finally concluded, (b) by reason of 
 participation of the United States in the war, or (c) which by the Treaties 
 of Versailles, St. Germain and Trianon, were stipulated for its and their
 
 20 
 
 benefit, and (d) by reason of any acts of Congress, including the joint 
 resolution of July 2, 1921 (Peace Resolution) declaring the several states 
 of war to be at an end. 
 
 (a) THE PEACE RESOLUTION. 
 
 The joint resolution contains an important paragraph which is here 
 set forth in full : 
 
 "Sec. 5. All property of the Imperial German Government, 
 or its successor or successors, and of all German nationals, which 
 was, on April 6, 1917, in or has since that date come into the 
 possession or under control of, or has been subject of a demand 
 by the United States of America or of any of its officers, agents, 
 or employees, from any source or by any agency whatsoever, and 
 all property of the Imperial and Royal Austro-Hungarian Gov- 
 ernment, or its successor or successors, and of all Austro-Hun- 
 garian nationals which was on December 7, 1917, in or has since 
 that date come into the possession or under control of, or has 
 been the subject of a demand by the United States of America 
 or any of its officers, agents, or employees, from any source or 
 by any agency whatsoever, shall be retained by the United States 
 of America and no disposition thereof made, except as shall have 
 been heretofore or specifically hereafter shall be provided by law 
 (bold face ours) until such time as the Imperial German Govern- 
 ment and the Imperial and Royal Austro-Hungarian Government 
 or their successor or successors, shall have respectively made suit- 
 able provision for the satisfaction of all claims against said Govern- 
 ments respectively, of all persons, wheresoever domiciled, who owe 
 permanent allegiance to the United States of America and who 
 have suffered, through the acts of the Imperial German Govern- 
 ment, or its agents, or the Imperial and Royal Austro-Hungarian 
 Government, or its agents, since July 31, 1914, loss, damage, or 
 injury to their persons or property, directly or indirectly, whether 
 through the ownership of shares of stock in German, Austro- 
 Hungarian, American, or other corporations, or in consequence 
 of hostilities or of any operations of war, or otherwise, and also 
 shall have granted to persons owing permanent allegiance to the 
 United States of America most-favored-nation treatment, whether 
 the same be national or otherwise, in all matters affecting resi- 
 dence, business, profession, trade, navigation, commerce and in- 
 dustrial property rights, and until the Imperial German Govern- 
 ment and the Imperial and Royal Austro-Hungarian Government, 
 or their successor or successors, shall have respectively confirmed 
 to the United States of America all fines, forfeitures, penalties, 
 and seizures imposed or made by the United States of America 
 during the war, whether in respect to the property of the Imperial 
 German Government or German nationals or the Imperial and 
 Royal Austro-Hungarian Government or Austro-Hungarian na- 
 tionals, and shall have waived any and all pecuniary claims 
 against the United States of America." 
 
 (b) TREATIES OF VERSAILLES, ST. GERMAIN AND TRIANON. 
 
 The treaties of peace, for the purpose of defining more particular any 
 obligations of the former enemy nations, specifically enumerate in para- 
 graph (1) of Article II of each treaty the portions of the Treaties of
 
 21 
 
 Versailles (Germany), St. Germain (Austria) and Trianon (Hungary), 
 under which the rights of the United States are reserved, and include those 
 dealing with enemy properties in the United States and the action past 
 and future of the United States Government with respect thereto. 
 
 Our discussion will be confined to the Treaty of Versailles, as that is 
 the best known, and the cited provisions of the other two treaties are of 
 like import. 
 
 As between the United States and its nationals on the one hand and 
 Germany and her nationals on the other hand, all acts of seizure, sequestra- 
 tion, administration, management and sale taken by the United States and 
 its officials are confirmed with certain exceptions not material to this 
 discussion (Art, 297; (d), Annex 1 and 3.) 
 
 No claim or action can be brought against the United States or any 
 person acting under its authority by Germany or her nationals, in respect 
 of any act of omission or commission with regard to his property, rights 
 or interests during the war or in preparation for war. (Article 297, 
 Annex 2.) 
 
 Subject to the reservations in the Treaty, the United States has 
 reserved the right to retain and liquidate all property, rights and interests 
 situate in the United States on October 18, 1921, belonging to German 
 nationals. (Sec. 297 (b) and paragraph (5) Article II, Treaty with Ger- 
 many). This provision would authorize the United States, notwithstand- 
 ing the termination of the war, to take over unsequestrated property of 
 such German nationals within our territory and to liquidate the same. 
 It would, of course, take legislative action by Congress to accomplish this. 
 
 The Treaty further authorizes the United States to retain such prop- 
 erty or to use the same in the payment of certain claims or debts therein 
 defined which may be asserted by citizens of the United States against 
 the German Government or its nationals. (Article 297; (e), h (1) and 
 h (2), Annex 4.) 
 
 Germany has agreed to compensate her nationals in respect of the sale 
 and retention of their property, rights or interests in the United States 
 (Article 297 (1) ). 
 
 Special provisions relating to the subject of patents, copyrights and 
 trade-marks may be found in articles 306-311, inclusive; however, by 
 Annex 15 to Article 297, it is specifically provided that the provisions of 
 that Article and its Annex shall apply to all such property and all action 
 that has been taken with respect thereto. And the provision validating 
 all actions taken by the United States in this respect and prohibiting 
 German nationals from making claim therefor are reaffirmed with par- 
 ticular reference to these classes of property in Article 306. 
 
 In the same Article the United States is given the right to impose 
 such limitations, conditions and restrictions as it sees fit on patents and 
 copyrights acquired by German nationals before' or during the war to 
 such extent as is considered necessary for national defense; or in the 
 public interest; or to secure fair reciprocity for American citizens; or 
 by way of security for Germany's obligations under the Treaty. As to
 
 22 
 
 patents and copyrights obtained after the war, the same limitations or 
 restrictions may be applied, but only 
 
 * * * f or na tional defense or in the public interest." 
 
 Transfers of patents, copyrights and trademarks effected after August 
 1, 1914, either before or after the date of the Treaty which would have 
 the result of defeating the provisions of Article 306 are voidable at the 
 option of the United States. 
 
 Article 297 and its Annex and Articles 306-311, inclusive, contain 
 numerous other provisions concerning this subject, but it is believed that 
 those specifically mentioned above cover the topic with which we are here 
 concerned. 
 
 3. METHOD OF SETTLING WAR CLAIMS HERETOFORE 
 FOLLOWED BY THE UNITED STATES. 
 
 It may be of interest to note the action that has been taken in the 
 United States concerning claims asserted by citizens of the United States 
 against foreign governments, and those asserted by citizens of those gov- 
 ernments against it, which arose during wars in which the United States 
 has heretofore been engaged. 
 
 During the Revolutionary War, although no federal act had been 
 passed, certain of the individual states had enacted legislation confiscating 
 and sequestrating private property and debts belonging to British subjects. 
 The Treaty of 1782, between the United States and Great Britain (Malloy's 
 Treaties of the United States, Volume 1, page 580) provided that creditors 
 on either side should meet with no lawful impediment to the full recovery 
 of all bona fide debts theretofore contracted, and it was agreed that Con- 
 gress should recommend to the respective states the restitution of prop- 
 erties confiscated by them. In order to enforce this Treaty a provision was 
 inserted in the Constitution providing that the treaties then made, or 
 thereafter made, should be the supreme law of the land. However, as the 
 results obtained under this Treaty did not meet all expectations, a new 
 treaty was entered into in 1794, known as the Jay Treaty (Malloy's Treaties, 
 Volume 1, page 594, 597) under which a commission was established for 
 the adjudication of debts owing to British subjects, due and unpaid by the 
 reason of the operation of various legal impediments; the United States 
 agreeing to pay according to the adjudication of the commission. The 
 commission met, but was unable to agree on certain points, and after long 
 and continuous negotiations a convention was concluded in 1802 (Malloy's 
 Treaties, Volume 1, page 611) under the terms of which 600,000 pounds 
 was accepted by Great Britain from the United States in satisfaction of 
 what the United States might have been liable to pay under the Treaty 
 of 1794 (See Moore's Digest Int. Law, Volume 7, page 310; and Moore's 
 Int. Arb., Volume 1, page 271). 
 
 Another instance of settlement as between governments of claims 
 asserted by their citizens is found in the Treaty of Washington, concluded 
 between the United States and Great Britain May 8, 1871 (Malloy's Treaties,
 
 23 
 
 Volume 1, page 700), under which provision was made for the settlement 
 by an arbitration to be held at Geneva of claims generally known as the 
 "Alabama claims," arising out of acts committed by various Confederate 
 boats during the Civil War, and also of claims of citizens of the United 
 States and subjects of Great Britain arising out of the same war. 
 
 A treaty with France to similar effect was signed July 4, 1831 (Malloy's 
 Treaties, Volume 1, page 523), under which France agreed to pay twenty- 
 five million francs to liberate itself from claims asserted by citizens of the 
 United States for unlawful captures, sequestration, confiscation or destruc- 
 tion of their vessels and cargoes, to the Government of the United States, 
 
 "who shall distribute it among those entitled, in the manner and 
 according to the rules which it shall determine." 
 
 The United States likewise paid one million five hundred thousand francs 
 to the French Government for similar purposes. 
 
 The settlement with China following the Boxer uprising (although not 
 constituting a war in which the United States was engaged) was made along 
 like lines (Malloy's Treaties, Volume 2, page 2006). 
 
 The most recent instance outside of the war just concluded occurred 
 following our war with Spain. By treaty signed December 10, 1908 (Mal- 
 loy's Treaties, Volume 2, page 1690), it was provided in Article VII: 
 
 "The United States and Spain mutually relinquish all claims 
 for indemnity, national and individual, of every kind, of either 
 Government, or of its citizens or subjects, against the other Gov- 
 ernment, that may have arisen since the beginning of the late 
 insurrection in Cuba and prior to the exchange of ratifications of 
 of the present treaty, including all claims for indemnity for the 
 cost of the war. 
 
 "The United States will adjudicate and settle the claims of its 
 citizens against Spain relinquished in this article." 
 
 In concluding this section, while it is obvious that the action of our 
 Government and Congress with respect to the settlement of claims which 
 may be asserted by Germany and Austro-Hungarian subjects for the return 
 of their properties, or the proceeds of the sale thereof, can not be anticipated 
 at this time, nevertheless, it is just as obvious that Congress enjoys full 
 power to dispose of such properties and recognize such claims in whatever 
 manner it may determine. Certainly, the reservations that have been 
 pointed out in the Trading with the Enemy Act, and the subsequent con- 
 firmation of the same to the United States by the former enemy govern- 
 ments in behalf of themselves and their nationals, intimate that Congress 
 is not unmindful of the necessity of at least holding all of this property until 
 such time as the recognition and payment of claims of citizens of the United 
 States has been provided for. 
 
 That such claims of our citizens exist in number is evidenced by the 
 report of the Secretary of State dated March 2, 1921, which was transmitted 
 to the Senate in response to a resolution adopted by it on December 30, 
 1920, calling for a report with respect to claims against Germany filed with 
 the Department of State by American citizens since August, 1914 (see 
 Senate Document No. 419, 66th Congress, 3rd Session) .
 
 24 
 
 It may well be that the United States will make settlement with the 
 several former enemy governments in respect of such individual claims as 
 may be deemed worthy of recognition. But in view of the provisions of the 
 Trading with the Enemy Act limiting the former enemy owners whose 
 claims have been recognized to the recovery of the proceeds of sale of their 
 property; the provisions of the recent treaties of peace with the former 
 enemy governments confirming all action of every kind taken by the United 
 States and its officials in relation to the sequestration and sale of enemy 
 properties ; and in view of the precedents above cited, it may be presumed 
 that former enemy owners will never be permitted to maintain individual 
 claims of any sort involving the administration and sale of their properties 
 by he Alien Property Custodian. 
 
 PART IV. 
 
 THE PATENT CONVENTION OF 1909 BETWEEN THE UNITED 
 
 STATES AND GERMANY, AND ITS REPUGNANCY TO THE 
 
 SPIRIT OF OUR PATENT LAWS. 
 
 The German hold on American industry was maintained in part at least 
 by means of compliance with the technical requirements of our patent 
 statutes. Nevertheless, the method in which they used their American 
 patents in view of the purposes to which it was directed was not in har- 
 mony with the fundamental principles of patent law in this country. 
 
 All our laws regarding the granting of patent and copyright privileges 
 are enacted by Congress under the eighth clause of the eighth section of 
 Article One of the Constitution which provides : 
 
 "The Congress shall have power . . . 
 
 "To promote the Progress of Science and useful Arts, by 
 securing for limited Times to Authors and Inventors the exclusive 
 Right to their respective Writings and Discoveries; . . ." 
 
 A brief summary of the introduction and adoption of this clause into 
 the Constitution is found in 10 Fed. Stat. Ann. 2nd Ed. p. 165, which states 
 in full: 
 
 "Charles Pinckney's speeches show that his draft conferred 
 power on the general Government to secure to authors the exclu- 
 sive right to their performances and discoveries, but Randolph's 
 draft contained nothing upon the subject, nor did the Committee 
 of Detail insert any such provision in the draft of August 6. 
 
 "On August 18, however, Madison introduced and had referred 
 to the Committee of Detail a series of powers to be conferred on 
 the Congress, among which were the following: 
 
 "To secure to literary authors their copyrights for a limited 
 time. 
 
 "To encourage, by proper premiums and provisions, the ad- 
 vancement of useful knowledge and discoveries. 
 
 "On the same day, also, Charles Pinckney had referred to the 
 same committee powers suggested by him, among which were 
 the following:
 
 25 
 
 "To grant patents for useful inventions. 
 
 "To secure to authors exclusive rights for a certain time. 
 
 "To establish public institutions, rewards and immunities for 
 the promotion of agriculture, commerce, trade and manufactures." 
 
 "The Committee of Detail did not report on these suggestions, 
 and they accordingly went to the Committee on Unfinished Por- 
 tions, and they reported on September 5, recommending to insert 
 before the last clause of Section 1, Article VII, the following: 
 'to promote the progress of science and the useful arts, by securing 
 for limited times, to authors and inventors, the exclusive right to 
 their respective writings and discoveries' ; and this was soon agreed 
 to nem. con. In this form this matter was later referred to the 
 Committee on Style, and they reported it as follows : 
 
 "To promote the progress of science and useful arts, by secur- 
 ing, for limited times, to authors and inventors, the exclusive right 
 to their respective writings and discoveries." 
 
 Story, in his Commentaries on the Constitution, says of this power of 
 Congress : 
 
 ". . .This power did not exist under the Federation : and its 
 utility does not seem to have been questioned. ... It was bene- 
 ficial to all parties that the national government should possess 
 this power; to authors and inventors, because otherwise they 
 would have been subjected to the varying laws and systems of the 
 different states on this subject which would impair and might 
 even destroy the value of their rights; to the public as it would 
 promote the progress of science and the useful arts, and admit 
 the people at large, after a short interval to the full possession 
 and enjoyment of all writings and inventions without restraint. 
 . . ." (Vol. 3, p. 48, Chap. XIX.) 
 
 The same thought is expressed in The Federalist in its brief comment 
 on this power (Paper XLII) which states in part: "The public good fully 
 coincides in both cases (copyrights and patents) with the claims of individ- 
 uals." (The foregoing parenthesis is our insert.) 
 
 Although the purpose of this provision is clear from its reading, it 
 may be of interest to note the expression of Judge Deady in the case of 
 Martinetti v. Maguire (1867) 16 Fed. Gas. No. 9173; 1 Abb. 356, Deady 
 216: 
 
 "... But the benefit of copyright is a privilege conferred 
 by Congress in pursuance of the Constitution of the United States 
 . . . Besides, the power to pass what are called copyright and 
 patent laws, or as the constitution expressed it, to secure 'for 
 limited times to authors and inventors the exclusive right to their 
 respective writings and discoveries,' is given not generally, but 
 only as a means to a particular end 'to promote the progress of 
 science and useful arts.' Const. Art. 1, S 8, Subd. 8. Hence, it 
 expressly appears that Congress is not empowered by the Con- 
 stitution to pass laws for the protection or benefit of authors and 
 inventors, except as a means of promoting the progress of "Sci- 
 ence and useful arts." . . ." 
 
 Similarly, Justice Fuller said in United States v. Duell (1898), 172 
 U. S. 576, 583; 43 L. Ed. 559, 562: 
 
 "Since under the Constitution Congress has power 'to pro- 
 mote the progress of science and useful arts by securing for lim-
 
 26 
 
 ited times to authors and inventors the exclusive right to their 
 respective writings and discoveries' and to make all laws which 
 shall be necessary and proper for carrying that expressed power 
 into execution, it follows that Congress may provide such instru- 
 mentalities in respect of securing to inventors the exclusive right 
 to their discoveries as in its judgment will be best calculated to 
 effect that object." 
 
 And this provision of the Constitution was not enacted in recognition 
 of any existing rights in inventions by reason of the common law. Patents 
 in England were from early times a grant of the sovereign and the pur- 
 poses underlying such grants as expressed by Coke in his Institutes, Vol. 
 Ill, Chap. 85, p. 181, were of similar tenor to those expressed in our Con- 
 stitution. He says in part : 
 
 ". . . the reason wherefore such a privilege is good in 
 law is, because the inventor bringeth to and for the common 
 wealth a new manufacture by his invention, cost and charges, 
 and therefore it is reason, that he should have a privilege for 
 his reward (and the encouragement of others in the like) for a 
 convenient time ; . . ." 
 
 In the United States it has been held in several decisions that Con- 
 gress, instead of sanctioning an existing right, created it that the right 
 is created by the patent. See Wheaton v. Peters (1834), 8 Pet. (U. S.) 
 591; 8 L. Ed. 1055; Gayler v. Wilder (1850), 10 How. (U. S.) 477; 13 L. 
 Ed. 504; Hartman v. Park & Sons Co. (1906), 145 Fed. 358. 
 
 It was, then, under the provisions of our Constitution and the laws 
 enacted to effect its object, "to promote the progress of science and the 
 useful arts," that these patents, seized and sold by the Custodian in order 
 to eliminate alien interests hostile and detrimental to the prosperity of 
 the United States, were obtained. Certainly our laws enacted for such 
 purposes were never intended to shield and protect patentees who used 
 their statutory privileges, not only to the detriment but also to endanger 
 the lives and property of the people through whom such privileges were 
 granted. 
 
 As was said in Kendall v. Windsor (1859), 62 U. S. (L. Ed.) 165, 167, 
 168 (21 How. U. S.) 322: 
 
 ". . . It is undeniably true that the limited and temporary 
 monopoly granted to inventors was never designed for their ex- 
 clusive profit or advantage ; the benefit to the public or community 
 at large was another and doubtless the primary object in granting 
 and securing that monopoly. ... By correct induction from 
 these truths, it follows that the inventor who designedly, and 
 with a view of applying it definitely and exclusively for his own 
 profit, withholds his invention from the public, comes within the 
 policy or objects of the Constitution or Acts of Congress. He 
 does not promote, and if aided in his design, would impede the 
 progress of science and the useful arts. And with a very bad 
 grace would he appeal for favor or protection to that society 
 which, if he had not injured, he certainly had neither benefited, 
 or intended to benefit . . . the rights and interests, whether of 
 the public or of individuals, can never be made to yield to schemes
 
 27 
 
 of selfishness or cupidity; moreover that which is once given to 
 or is invested in the public cannot be recalled nor taken from 
 them. . . . Whilst the remuneration of genius and useful inge- 
 nuity is a duty upon the public, the rights and welfare of the 
 
 community must be fairly dealt with and effectively guarded. 
 * * * 
 
 After citing and quoting from the above case, and from Justice Story's 
 opinion in Penmock v. Dialogue (1829, 2 Pet. (U. S.) 1; 7 L. Ed. 327; the 
 court in Macbeth Evans Glass Co. v. General Electric Co. (1916) 231 Fed. 
 183, 185, said: 
 
 ". . . Whether or not these conclusions, as to what are the 
 principles upon which our patent laws are founded were strictly 
 necessary to the decisions of the cases in which they were ex- 
 pressed, commending themselves as they do to sound thinking, 
 they must be accepted as a correct statement of the principles 
 and policy of that law which should guide us in the application of 
 it to this case. . . ." 
 
 And this extensive foreign hold upon the chemical industry of our 
 country was insured, as our laws did not require the working of the 
 patents within the United States or the granting of any compulsory 
 licenses in case the patents were not worked after a reasonable period of 
 time following their issuance. The imposing of such restrictions on foreign 
 patents in the United States has been heretofore considered by Congress 
 but failed of enactment; and our Government in diplomatic relations has 
 urged that no such limitations should be placed on American patents 
 abroad. However, it may readily be assumed that such action was taken 
 with no idea that foreigners would use their privileges under our laws to 
 ends detrimental to the public welfare, and without considering fully the 
 situation that would arise in event of war involving the United States. 
 
 In his annual report for the year 1908 (page XII), Commissioner of 
 Patents Moore says : 
 
 "It is to be hoped that in the near future treaties with the 
 leading commercial nations may be consummated embracing re- 
 ciprocal provisions which will relieve inventors and manufac- 
 turers from the necessity of working their inventions in the 
 respective countries." 
 
 In his report for the year 1909 (page IX) he says: 
 
 "Negotiations are now pending between the United States 
 and foreign countries looking to conventions being entered into 
 by the various countries for the elimination of the so-called 
 'working clause' in all Patent Laws. 
 
 "A treaty of this kind has recently been negotiated with 
 Germany and is now in force; also the working clause in the 
 Patent Law of Sweden and Switzerland has recently been elim- 
 inated. It is to be hoped that in the near future the laws of all 
 foreign countries now embracing this so-called working clause 
 will be so modified that its provisions will be entirely eliminated." 
 
 And in his annual report for 1910 (page X) : 
 
 "Several treaties have been entered into with foreign coun- 
 tries and the laws of several countries have been changed in 
 regard to the so-called working clause.
 
 28 
 
 "Previously, if an invention of an American citizen was 
 patented in this country and also abroad, and this invention was 
 not worked abroad, the products could not be sold in these coun- 
 tries; if they were manufactured solely in the United States. 
 The United States law does not embrace any such provision and 
 never has. When the fact was brought to the attention of 
 many nations, they took it under serious consideration, with the 
 result that now in many of these countries it is not necessary 
 for an American manufacturer to duplicate his plant in all other 
 countries in which he wishes to sell his goods. 
 
 "A notable case is the Treaty with Germany which the De- 
 partment of State sent me abroad to negotiate and with which 
 success crowned the efforts made. A treaty was entered into 
 with the German Empire, which, in its broad workings, had the 
 effect of not only protecting the American inventor but the 
 .German inventor as well. The Treaty has been construed by 
 the Imperial Court sitting at Leipsig, and its provisions were 
 upheld in some of the patents which had been declared forfeited 
 and they were ordered to be restored by the German Patent Office. 
 That treaty is still in force. Treaties with other countries of 
 like import are now pending." 
 
 However, no other treaties were in fact negotiated. 
 
 In his report for the year 1911 (page XIII), the Commissioner says: 
 
 "During the conference (held at Washington in May and 
 June, 1911) I received a cablegram which stated that the German 
 Reichstag had passed a patent law which upheld the treaty 
 between Germany and the United States providing that patents 
 of American inventors should not be revoked by the German 
 Government for failure to work or manufacture the same in 
 Germany within four years, provided, however, the same is manu- 
 factured in the United States in the same period of time. This 
 so-called working clause is embraced in the laws of nearly all 
 nations; but since the treaty with Germany has been entered 
 into, several of them have modified their laws in this respect. 
 This treaty was the result of certain negotiations instituted by 
 me while in Berlin in 1908, while acting under the direction of 
 the Secretary of State. In the following . year I again visited 
 Germany in the interest of this treaty and also visited several 
 other countries at the direction of Secretary of State Knox and 
 Assistant Secretary Huntingdon Wilson, and the result has been 
 the revision of the laws relating to the working clause in Norway, 
 Sweden and Switzerland, so that the manufacture of patented 
 inventions in those countries by the United States citizens is no 
 longer required in order to sustain their patents. It is thought 
 that several other countries will speedily follow this example." 
 
 A statement from Commissioner Moore, referred to the Senate Com- 
 mittee on Patents April 11, 1912, transmitting copy of a proposed bill to 
 codify the laws relating to patents, says, among other things (62 Cong. 
 2d sess. Sen. Doc. 555, pp. 7-8) : 
 
 "Section 17 comprises section 4884 revised statutes as it 
 now stands with the addition of two amendments. . . . The 
 second amendment to this section comprises a clause providing 
 that if the invention is not adequately worked or manufactured
 
 29 
 
 within the United States at any time after the expiration of the 
 first four years, the owner of the patent may be compelled to 
 license any person who shall demand the same to manufacture, 
 use and sell the patented invention upon such terms as may be 
 prescribed by the Judge of the Court of the district in which 
 the owner of the patent resides or has an established place of 
 business. Nearly all countries except the United States have 
 provisions of law requiring the working of a patented invention 
 and in the event of failure to adequately work the invention 
 that the patent shall either be revoked or that the owner thereof 
 shall be required to grant a license to others to manufacture, 
 use and sell the same. 
 
 "In my opinion the so-called working clause contained in 
 the laws of other countries is of such drastic nature as to dis- 
 courage invention. 
 
 "While, of course, it is desirable that valuable inventions 
 shall be manufactured and sold within a reasonable period, from 
 the date of the grant of the patent and not locked up by large 
 corporations as is now the case in some instances, it is believed 
 that the inventor or owner of the patent should in no case be 
 deprived of a reasonable remuneration for the invention which 
 he has patented and thus disclosed to the public. In the amend- 
 ment which I prepared to this section it is provided that if the 
 patented invention is not worked to an adequate extent after 
 the expiration of the first four years any person may demand a 
 license to manufacture and sell the same, and upon refusal of 
 the patentee to grant such license, shall have the right to apply 
 to the court of the district in which the owner of the patent 
 resides or has an established place of business and to demand an 
 order from the Judge requiring that the owner of the patent 
 shall grant to him a license to manufacture, use and sell the 
 invention upon such terms, conditions, security, etc., as in the 
 opinion of the court will be just. It is believed that such a 
 measure will have the effect of placing all valuable inventions 
 in public use within a reasonable time, and will also encourage 
 the establishment of manufactories for the production of patented 
 machines, devices, etc., which have been patented by persons 
 who are not citizens of the United States. 
 
 "Care has been taken in drafting this section to provide that 
 nothing shall conflict with any treaty or convention of other coun- 
 tries which reciprocally lessens the force of its application to the 
 citizens of the contracting countries." 
 
 The legislation thus suggested by the Commissioner was not enacted. 
 
 After the outbreak of the great war in 1914, and especially after the 
 United States had become a party to it, it was acutely realized that by the 
 absence of necessary drugs and chemicals not only the industrial future 
 of the country was endangered, but also the very safety and health of 
 soldier and civilian. American factories were not equipped to produce 
 adequately many of these essentials which prior to the war had been 
 supplied by imports, protected by the United States patents and the absence 
 of working requirements in our law. 
 
 Although shortly after the outbreak of the war a bill was introduced 
 to relieve this situation by the suspension of enemy-owned patents, its
 
 30 
 
 purpose was met for the time being by the adoption of Section 10 of the 
 Trading with the Enemy Act, permitting the licensing of such patents. 
 Mr. Thomas Ewing, Commissioner of Patents, in a letter to the Attor- 
 ney General, dated May 11, 1917, in explanation of the provisions of Section 
 10, said in part: 
 
 "... Moreover, in the patent laws of many of the foreign 
 countries there are general provisions for the granting of com- 
 pulsory licenses. These provisions were not found to be of much 
 importance and were in many respects disadvantageous prior to the 
 outbreak of the war, but since the outbreak of the war, they have 
 become important in connection with enemy-owned patents. 
 
 "Our Government may supply its own needs under the exist- 
 ing laws either directly or through contractors who are protected 
 against suit or interference, the only remedy to the patentee being 
 recovery through the Court of Claims. But the needs of state 
 governments and municipalities, and private citizens cannot be 
 supplied in this way. It is, therefore, suggested that our patent 
 statute be amended to provide that whenever a state of war exists, 
 the Federal Trade Commission may grant licenses under enemy- 
 owned patents." (Congressional Record, July 9, 1917, p. 4859.) 
 
 All of the discussion on this section of the Act, which may be readily 
 referred to in the Congressional Record, is of interest in this connection and 
 has a distinct bearing on the action of Congress in subsequently amending 
 Section 7 (c) of the Act to include the seizure of patents, as soon as it 
 learned of the purposes to which they had been put by the enemy nationals. 
 
 And the treaty with Germany of 1909, which the United States entered 
 into thinking it would advance science in its various ramifications, was, so 
 far as Germany was concerned, a part of its program for commercial 
 supremacy. Prior to the enactment of this treaty, the so-called working 
 clause in the German law required inventions patented in Germany to be 
 worked within a certain time. There were many proponents in this country 
 who urged that we should insure the future of this country by similar laws. 
 By 1908 Germany had concluded that her position in science was so strong 
 that the working clause might be waived without prejudice, and anticipated 
 the disastrous effects that the adoption of such a clause in the United States 
 would have on her purposes. Acting under instructions from the con- 
 solidated government and chemical industries of Berlin, the president of 
 the Bayer Chemical Company called upon Commissioner Moore of the U. S. 
 Patent Office in Washington. He urged that Mr. Moore, representing the 
 United States, should attend the International Patent Convention about 
 to be held in Stockholm. Mr. Moore responded that no funds were available 
 to pay for the expenses of such a trip. (On April 24, 1908, the Secretary 
 of the Treasury transmitted a communication from the Secretary of the 
 Interior requesting an appropriation of $1,200 to cover expenses of a dele- 
 gate to attend the above-mentioned convention at Stockholm. See House 
 Document No. 885, 60th Cong. 1st Session. The appropriation was not 
 made.) Mr. Moore then went on his vacation. Following this Mr. Muurling, 
 the then American voice of Germany's chemical interests, went to Robert 
 Bacon, then Acting Secretary of State, drew a picture of the United States
 
 31 
 
 unrepresented at that great conference and pointed out "that the State 
 Department had moneys from which sufficient funds could be drawn for the 
 purpose of this trip. The result was that Mr. Moore was recalled from his 
 vacation and sent abroad. Through German activity Mr. Moore was induced 
 to go from Stockholm to Berlin, where, having been feted and entertained by 
 the Kaiser himself, he returned to negotiate the treaty of 1909 under which 
 German citizens were released from ever working their chemical patents in 
 this country. The loyalty of Mr. Robert Bacon and Commissioner Moore is 
 above question, but by this action they unwittingly and unconsciously aided 
 Germany in completing her commercial program. 
 
 APPENDIX 1. 
 
 EXCERPTS FROM TRADING WITH THE ENEMY ACT AND 
 AMENDMENTS THERETO. 
 
 EXCERPT FROM SECTION 2. 
 
 Section 2. That the word "enemy", as used herein, shall be deemed to 
 mean, for the purposes of such trading and of this Act 
 
 (a) Any individual, partnership, or other body of individuals, of any 
 nationality resident within the territory (including that occupied by the 
 military and naval forces) of any nation with which the United States is at 
 war, or resident outside the United States and doing business within such 
 territory, and any corporation incorporated within such territory of any 
 nation with which the United States is at war or incorporated within any 
 country other than the United States and doing business within such 
 territory. 
 
 (b) The government of any nation with which the United States is at 
 war, or any political or municipal subdivision thereof, or any officer, official, 
 agent or agency thereof. 
 
 (c) Such other individuals, or body or class of individuals, as may be 
 natives, citizens, or subjects of any nation with which the United States is 
 at war, other than citizens of the United States, wherever resident or where- 
 ever doing business, as the President, if he shall find the safety of the 
 United States or the successful prosecution of the war shall so require, may, 
 by proclamation, include within the term "enemy." 
 
 The words "ally of enemy," as used herein, shall be deemed to mean 
 
 (a) Any individual, partnership, or other body of individuals resident 
 within the territory (including that occupied by the military and naval 
 forces) of any nation which is an ally of a nation with which the United 
 States is at war, or resident outside the United States and doing business 
 within such territory of such ally nation, or incorporated within any country 
 other than the United States and doing business within such territory. 
 
 (b) The government of any nation which is an ally of a nation with 
 which the United States is at war, or any political or municipal subdivision 
 of such ally nation, or any officer, official, agent, or agency thereof.
 
 32 
 
 (c) Such other individuals, or body or class of individuals, as may be 
 natives, citizens, or subjects of any nation which is an ally of a nation with 
 which the United States is at war, other than citizens of the United States, 
 wherever resident or wherever doing business, as the President, if he shall 
 find the safety of the United States or the successful prosecution of the 
 war shall so require, may, by proclamation, include within the term "ally 
 of enemy." 
 
 EXCERPT FROM SECTION 5 (a). 
 
 " . . and the President may exercise any power or authority 
 conferred by this Act through such officer or officers as he shall 
 direct. . . ." 
 
 EXCERPT FROM SECTION 6. 
 
 Sec. 6. That the President is authorized to appoint, prescribe the duties 
 of, and fix the salary (not to exceed $5,000 per annum) of an official to be 
 known as the Alien Property Custodian, who shall be empowered to receive 
 all money and property in the United States due or belonging to an enemy, 
 or ally of enemy, which may be paid, conveyed, transferred, assigned, or 
 delivered to said custodian under the provisions of this Act; and to hold, 
 administer, and account for the same under the general direction of the 
 President and as provided in this Act. ..." 
 
 SECTION 7 (c) as originally enacted. 
 
 If the President shall so require, any money or other property belonging 
 to or held for, by, on account of, or on behalf of, or for the benefit of an 
 enemy or ally of enemy not holding a license granted by the President here- 
 under, which the President after investigation shall determine is so owing 
 or so belongs or is so held, shall be conveyed, transferred, assigned, deliv- 
 ered, or paid over to the Alien Property Custodian. 
 
 SECTION 7 (c) as amended November 4, 1918. 
 
 (1) ALIEN PROPERTY CUSTODIAN: Subsection (c) of seven of 
 the "Trading with the enemy Act" approved October 6, 1917, is amended 
 to read as follows : 
 
 "(c) If the President shall so require any money or other 
 property including (but not thereby limiting the generality of the 
 above) patents, copyrights, applications therefor, and rights to 
 apply for the same, trade-marks, choses in action, and rights and 
 claims of every character and description owing or belonging to or 
 held for, by, on account of, or on behalf of, or for the benefit of, 
 an enemy or ally of enemy not holding a license granted by the 
 President hereunder, which the President after investigation shall 
 determine is so owing or so belongs or is so held, shall be conveyed, 
 transferred, assigned, delivered, or paid over to the Alien Property 
 Custodian, or the same may be seized by the Alien Property Cus- 
 todian ; and all property thus acquired shall be held, administered, 
 and disposed of as elsewhere provided in this Act. 
 "Any requirement made pursuant to this Act, or a duly certi-
 
 33 
 
 copy thereof, may be filed, registered, or recorded in any office 
 for the filing, registering, or recording of conveyances, transfers, 
 or assignments of any such property or rights as may be covered 
 by such requirement (including the proper office for filing, regis- 
 tering, or recording conveyances, transfers, or assignments of 
 patents, copyrights, trade-marks, or any rights therein or any 
 other rights) ; and if so filed, registered, or recorded shall impart 
 the same notice and have the same force and effect as a duly 
 executed conveyance, transfer, or assignment to the Alien Property 
 Custodian so filed, registered, or recorded. 
 
 "Whenever any such property shall consist of shares of stock 
 or other beneficial interest in any corporation, association, or 
 company, or trust, it shall be the duty of the corporation, associa- 
 tion, or company or trustee or trustees issuing such shares or any 
 certificates or other instruments representing the same or any 
 other beneficial interest to cancel upon its, his, or their books all 
 shares of stock or other beneficial interest standing upon its, his or 
 their books in the name of any person or persons, or held for, on 
 account of, or on behalf of, or for the benefit of any person or 
 persons who shall have been determined by the President, after 
 investigation, to be an enemy or ally of enemy, and which shall 
 have been required to be conveyed, transferred, assigned or de- 
 livered to the Alien Property Custodian or seized by him, and in 
 lieu thereof to issue certificates or other instruments for such 
 shares or other beneficial interests to the Alien Property Custodian 
 or otherwise, as the Alien Property Custodian shall require. 
 
 "The sole relief and remedy of any person having any claim 
 to any money or other property heretofore or hereafter conveyed, 
 transferred, assigned, delivered, or paid over to the Alien Property 
 Custodian, or required so to be or seized by him shall be that 
 provided by the terms of this Act, and in the event of sale or other 
 disposition of such property by the Alien Property Custodian, 
 shall be limited to and enforced against the net proceeds received 
 therefrom and held by the Alien Property Custodian or by the 
 Treasurer of the United States." 
 
 SECTION 9 AS ORIGINALLY ENACTED. 
 
 "Section 9. That any person, not an enemy, or ally of enemy, 
 claiming any interest, right, or title in any money or other prop- 
 erty which may have been conveyed, transferred, assigned, de- 
 livered, or paid to the alien property custodian hereunder, and 
 held by him or by the Treasurer of the United States, or to whom 
 any debt may be owing from an enemy, or ally of enemy, whose 
 property or any part thereof shall have been conveyed, transferred, 
 assigned, delivered, or paid to the alien property custodian here- 
 under, and held by him or by the Treasurer of the United States, 
 may file with the said custodian a notice of his claim under oath 
 and in such form and containing such particulars as the said 
 custodian shall require ; and the President, if application is made 
 therefor by the claimant, may, with the assent of the owner of 
 said property and of all persons claiming any right, title or interest 
 therein, order the payment, conveyance, transfer, assignment or 
 delivery to said claimant of the money or other property so held 
 by the alien property custodian or by the Treasurer of the United 
 States or of the interest therein to which the President shall
 
 34 
 
 determine said claimant is entitled : Provided, that no such order 
 by the President shall bar any person from the prosecution of any 
 suit at law or in equity against the claimant to establish any right, 
 title or interest which he may have in such money or other prop- 
 erty. If the President shall not so order within sixty days after 
 the filing of such application, or if the claimant shall have filed 
 the notice as above required and shall have made no application 
 to the President, said claimant may, at any time before the expira- 
 tion of six months after the end of the war, institute a suit in 
 equity in the district court of the United States for the district in 
 which such claimant resides, or, if a corporation, where it has its 
 principal place of business (to which suit the alien property cus- 
 todian or the Treasurer of the United States, as the case may be, 
 shall be made a party defendant) , to establish the interest, right, 
 title, or debt so claimed, and if suit shall be so instituted then 
 the money or other property of the enemy, or ally of enemy, 
 against whom such interest, right, or title is asserted, or debt 
 claimed, shall be retained in the custody of the alien property cus- 
 todian, or in the Treasury of the United States, as provided in this 
 Act, and until any final judgment or decree which shall be entered 
 in favor of the claimant shall be fully satisfied by payment or con- 
 veyance, transfer, assignment, or delivery by the defendant or the 
 alien property custodian or Treasurer of the United States or order 
 of the court, or until final judgment or decree shall be entered 
 against the claimant, or suit otherwise terminated. 
 
 "Except as herein provided, the money or other property 
 conveyed, transferred, assigned, delivered, or paid to the alien 
 property custodian shall not be liable to lien, attachment, garnish- 
 ment, trustee process, or execution, or subject to any order or 
 decree of any court. 
 
 "This section shall not apply, however, to money paid to 
 the alien property custodian under section ten hereof." 
 
 SECTION 9 AS AMENDED JULY 11, 1919. 
 
 "That any person not an enemy or ally of enemy claiming any 
 interest, right, or title in any money or other property which 
 may have been conveyed, transferred, assigned, delivered, or 
 paid to the Alien Property Custodian hereunder and held by 
 him or by the Treasurer of the United States, or to whom any 
 debt may be owing from an enemy or ally of enemy whose prop- 
 erty or any part thereof shall have been conveyed, transferred, 
 assigned, delivered, or paid to the Alien Property Custodian 
 hereunder, and held by him or by the Treasurer of the United 
 States, may file with the said custodian a notice of his 
 claim under oath and in such form and containing such par- 
 ticulars as the said custodian shall require; and the President, 
 if application is made therefor by the claimant, may order 
 the payment, conveyance, transfer, assignment, or delivery 
 to said claimant of the money or other property so held by 
 the Alien Property Custodian or by the Treasurer of the United 
 States or of the interest therein to which the President 
 shall determine said claimant is entitled : Provided, That no 
 such order by the President shall bar any person from the prose- 
 cution of any suit at law or in equity against the claimant to 
 establish any right, title or interest which he may have in such
 
 35 
 
 money or other property. If the President shall not so order 
 within sixty days after the filing of such application or if the 
 claimant shall have filed the notice as above required and shall 
 have made no application to the President, said claimant may, 
 at any time before the expiration of six months after the end of 
 the war institute a suit in equity in the Supreme Court of the 
 District of Columbia or in the district court of the United States 
 for the district in which such claimant resides, or, if a corpora- 
 tion, where it has its principal place of business (to which suit 
 the Alien Property Custodian or the Treasurer of the United 
 States, as the case may be, shall be made a party defendant), 
 to establish the interest, right, title, or debt so claimed, and if 
 suit shall be so instituted when the money or other property of 
 the enemy, or ally of enemy, against whom such interest, right, 
 or title is asserted, or debt claimed, shall be retained in the cus- 
 tody of the Alien Property Custodian, or in the Treasury of the 
 United States, as provided in this Act, and until any final judg- 
 ment or decree which shall be entered in favor of the claimant 
 shall be fully satisfied by payment or conveyance, transfer, as- 
 signment, or delivery by the defendant or by the Alien Property 
 Custodian or Treasurer of the United States on order of the court, 
 or until final judgment or decree shall be entered against the 
 claimant, or suit otherwise terminated: Provided, however, That 
 in respect of all property heretofore determined by the President 
 to have been held for, by, on account of, or on behalf of, or for 
 the benefit of a person who was an enemy or ally of enemy, if 
 the President, after further investigation, shall determine that 
 such person was an enemy or an ally of enemy solely by reason 
 of residence in that portion of the territory of any nation asso- 
 ciated with the United States in the prosecution of the war 
 which was occupied by the military or naval forces of Germany 
 or Austria-Hungary, or their allies, and that such person is a 
 citizen or subject of such associated nation, then the President, 
 without any application being made therefor may order the pay- 
 ment, conveyance, transfer, assignment, or delivery of such money 
 or other property held by the Alien Property Custodian, or by the 
 Treasurer of the United States, or of the interest therein to 
 which the President shall determine such person entitled, either 
 to the said enemy or to the person by whom said property was 
 conveyed, transferred, assigned, delivered or paid over to the 
 Alien Property Custodian. And the receipt of the said enemy 
 or of the person by whom said property was conveyed, trans- 
 ferred, assigned or delivered to the Alien Property Custodian, 
 shall be a full acquittance and discharge of the Alien Property 
 Custodian or the Treasurer of the United States as the case 
 may be, and of the United States in respect of all claims of 
 all persons heretofore or hereafter claiming any right, title, 
 or interest in said property, or compensation or damages 
 arising from the capture of such property by the President 
 or the Alien Property Custodian: Provided further, however, 
 That except as herein provided no such action by the President 
 shall bar any person from the prosecution of any suit at law or 
 in equity to establish any right, title or interest which he may 
 have therein. 
 
 "Except as herein provided, the money or other property 
 conveyed, transferred, assigned, delivered, or paid to the Alien
 
 36 
 
 Property Custodian shall not be liable to lien, attachment, gar- 
 nishment, trustee process, or execution, or subject to any order or 
 decree of any court. 
 
 "This section shall not apply, however, to money paid to 
 the Alien Property Custodian under Section 10 hereof." 
 
 SECTION 9 AS AMENDED JUNE 5, 1920. 
 
 ". . . Sec. 9 (a) That any person not an enemy or ally 
 of enemy claiming any interest, right, or title in any money or 
 other property which may have been conveyed, transferred, as- 
 signed, delivered, or paid to the Alien Property Custodian or 
 seized by him hereunder and held by him or by the Treasurer 
 of the United States, or to whom any debt may be owing from an 
 enemy or ally of enemy whose property or any part thereof shall 
 have been conveyed, transferred, assigned, delivered, or paid to 
 the Alien Property Custodian or seized by him hereunder and 
 held by htm or by the Treasurer of the United States may file 
 with the said custodian a notice of his claim under oath and in 
 such form and containing such particulars as the said custodian 
 shall require; and the President, if application is made therefor 
 by the claimant, may order the payment, conveyance, transfer, 
 assignment, or delivery to said claimant of the money or other 
 property so held by the Alien Property Custodian or by the 
 Treasurer of the United States, or of the interest therein to 
 which the President shall determine said claimant is entitled: 
 Provided, That no such order by the President shall bar any 
 person from the prosecution of any suit at law or in equity against 
 the claimant to establish any right, title, or interest which he 
 may have in such money or other property. If the President 
 shall not so order within sixty days after the filing of such appli- 
 cation or if the claimant shall have filed the notice as above 
 required and shall have made no application to the President, 
 said claimant may, at any time before the expiration of six 
 months after the end of the war institute a suit in equity in the 
 Supreme Court of the District of Columbia or in the district court 
 of the United States for the district in which such claimant re- 
 sides, or, if a corporation, where it has its principal place of 
 business (to which suit the Alien Property Custodian or the 
 Treasurer of the United States, as the case may be, shall be made 
 a party defendant), to establish the interest, right, title, or debt 
 so claimed, and if so established the court shall order the pay- 
 ment, conveyance, transfer, assignment, or delivery to said claim- 
 ant of the money or other property so held by the Alien Property 
 Custodian or by the Treasurer of the United States or the interest 
 therein to whidh the court shall determine said claimant is 
 entitled. If suit shall be so instituted, then such money or prop- 
 erty shall be retained in the custody of the Alien Property Cus- 
 todian, or in the Treasury of the United States, as provided by 
 this Act, and until any final judgment or decree which shall be 
 entered in favor of the claimant shall be fully satisfied by pay- 
 ment or conveyance, transfer, assignment, or delivery by the 
 defendant, or by the Alien Property Custodian, or Treasurer of 
 the United States on order of the court, or until final judgment 
 or decree shall be entered against the claimant or suit otherwise 
 terminated.
 
 37 
 
 "(b) In respect of all money or other property conveyed, 
 transferred, assigned, delivered, or paid to the Alien Property 
 Custodian or seized by him hereunder and held by him or by 
 the Treasurer of the United States, if the President shall deter- 
 mine that the owner thereof at the time such money or other 
 property was required to be so conveyed, transferred, assigned, 
 delivered, or paid to the Alien Property Custodian or at the time 
 when it was voluntarily delivered to him or was seized by him 
 was: 
 
 "(1) A citizen or subject of any nation or State or free city 
 other than Germany or Austria or Hungary or Austria-Hungary, 
 and is at the time of the return of such money or other property 
 hereunder a citizen or subject of any such nation or State or 
 free city; or 
 
 "(2) A woman who at the time of her marriage was a subject 
 or citizen of a nation which has remained neutral in the war, or 
 of a nation which was associated with the United States in the 
 prosecution of said war, and who prior to April 6, 1917, intermar- 
 ried with a subject or citizen of Germany or Austria-Hungary and 
 that the money or other property concerned was not acquired by 
 such woman either directly or indirectly from any subject or 
 citizen of Germany or Austria-Hungary ; or 
 
 "(3) A woman who at the time of her marriage was a citizen 
 of the United States (said citizenship having been acquired by 
 birth in the United States) , and who prior to April 6, 1917, inter- 
 married with a subject or citizen of Germany or Austria-Hungary, 
 and that the money or other property concerned was not acquired 
 by such woman either directly or indirectly from any subject or 
 citizen of Germany or Austria-Hungary ; or 
 
 "(4) A citizen or subject of Germany or Austria or Hungary 
 or Austria-Hungary and was, at the time of the severance of diplo- 
 matic relations between the United States and such nations re- 
 pectively, accredited to the United States as a diplomat or consular 
 officer of any such nation, or the wife or minor child of such officer, 
 and that the money or other property concerned was within the 
 territory of the United States by reason of the service of such 
 officer in such capacity; or 
 
 "(5) A citizen or subject of Germany or Austria-Hungary, 
 who by virtue of the provisions of sections 4067, 4068, 4069 and 
 4070 of the Revised Statutes, and of the proclamations and regula- 
 tions thereunder, was transferred, after arrest, into the custody 
 of the War Department of the United States for detention during 
 the war and is at the time of the return of his money or other 
 property hereunder living within the United States; or 
 
 " (6) A partnership, association, or other unincorporated body 
 of individuals outside the United States, or a corporation incorpo- 
 rated within any country other than the United States, and was 
 entirely owned at such time by subjects or citizens of nations, 
 States, or free cities other than Germany or Austria or Hungary 
 or Austria-Hungary and is so owned at the time of the return 
 of its money or other property hereunder ; or 
 
 "(7) The Government of Bulgaria or Turkey, or any political 
 or municipal subdivision thereof; or 
 
 "(8) The Government of Germany or Austria or Hungary or 
 Austria-Hungary, and that the money or other property concerned 
 was the diplomatic or consular property of such Government 
 
 44706
 
 38 
 
 then the President, without any application being made therefor, 
 may order the payment, conveyance, transfer, assignment, or 
 delivery of such money or other property held by the Alien Prop- 
 erty Custodian or by the Treasurer of the United States, or of the 
 interest therein to which the President shall determine such person 
 entitled, either to the said owner or to the person by whom said 
 was conveyed, transferred, assigned, delivered, or paid over to the 
 Alien Property Custodian: Provided, That no person shall be 
 deemed or held to be a citizen or subject of Germany or Austria 
 or Hungary or Austria-Hungary for the purposes of this section, 
 even though he was such citizen or subject at the time first speci- 
 fied in this sub-section, if he has become or shall become, ipso 
 facto or through exercise of option, a citizen or subject of any 
 nation or State or free city other than Germany, Austria, or Hun- 
 gary, (first) under the terms of such treaties of peace as have 
 been or may be concluded subsequent to November 11, 1918, be- 
 tween Germany or Austria or Hungary (of the one part) and the 
 United States and/or three or more of the following-named powers : 
 The British Empire, France, Italy, and Japan (of the other part) , 
 or (second) under the terms of such treaties as have been or may 
 be concluded in pursuance of the treaties of peace aforesaid be- 
 tween any nation, State, or free city (of the one part) whose 
 territories, in whole or in part, on August 4, 1914, formed a por- 
 tion of the Territory of Germany or Austria-Hungary and the 
 United States and/or three or more of the following-named 
 powers: The British Empire, France, Italy, and Japan (of the 
 other part) . For the purposes of this section any citizen or subject 
 of a State or free city which at the time of the proposed return 
 of money or other property of such citizen or subject hereunder 
 forms a part of the territory of any one of the following nations : 
 Germany, Austria, or Hungary, shall be deemed to be a citizen or 
 subject of such nation. And the receipt of the said owner or of 
 the person by whom said property was conveyed, transferred, 
 assigned, delivered, or paid over to the Alien Property Custodian 
 shall be a full acquittance and discharge of the Alien Property 
 Custodian or the Treasurer of the United States, as the case may 
 be, and of the United States in respect to all claims of all persons 
 heretofore or hereafter claiming any right, title, or interest in 
 said property, or compensation or damages arising from the cap- 
 ture of such property by the President or the Alien Property Cus- 
 todian: Provided further, however, That except as herein pro- 
 vided no such action by the President shall bar any person from 
 the prosecution of any suit at law or in equity to establish any 
 right, title, or interest which he may have therein. 
 
 " (c) Any person whose property the President is authorized 
 to return under the provisions of sub-section (b) hereof may file 
 notice of claim for the return of such property, as provided in 
 sub-section (a) hereof, and thereafter may make application to 
 the President for allowance of such claim and/or may institute 
 suit in equity to recover such property, as provided in said sub- 
 section, and with like effect. The President or the court, as the 
 case may be, may make the same determinations with respect to 
 citizenship and other relevant facts that the President is authorized 
 to make under the provisions of subsection (b) hereof. 
 
 " (d) Whenever a person, deceased, would have been entitled, 
 if living, to the return of his money or other property hereunder,
 
 39 
 
 then his legal representative may proceed for the return of such 
 property as provided in subsection (a) hereof: Provided, however, 
 That the President or the court, as the case may be, before grant- 
 ing such relief shall impose such conditions by way of security or 
 otherwise, as the President or the court, respectively, shall deem 
 sufficient to insure that such legal representative will re-deliver 
 to the Alien Property Custodian such portion of the money or other 
 property so received by him as shall be distributable to any person 
 not. eligible as a claimant under subsections (a) or (c) hereof. 
 
 "(e) No money or other property shall be returned nor any 
 debt allowed under this section to any person who is a citizen or 
 subject of any nation which was associated with the United States 
 in the prosecution of the war, unless such nation in like case ex- 
 tends reciprocal rights to citizens of the United States ; nor in any 
 event shall a debt be allowed under this section unless it was 
 owing to and owned by the claimant prior to October 6, 1917, and 
 as to claimants other than citizens of the United States unless it 
 arose with reference to the money or other property held by the 
 Alien Property Custodian or Treasurer of the United States here- 
 under. 
 
 "(f) Except as herein provided, the money or other prop- 
 erty conveyed, transferred, assigned, delivered, or paid to the Alien 
 Property Custodian, shall not be liable to lien, attachment, garnish- 
 ment, trustee process, or execution, or subject to any order or 
 decree of any court. 
 
 "(g) This section shall not apply, however, to money paid 
 to the Alien Property Custodian under section 10 hereof." 
 
 SECTION 9 AS AMENDED FEBRUARY 27, 1921. 
 
 Be it enacted by the Senate and House of Representatives of the United 
 States of America in Congress assembled, That subdivisions (2) and (3) of 
 subsection (b) of section 9 of an Act entitled "An Act to define, regulate, 
 and punish trading with the enemy, and for other purposes," approved 
 October 6, 1917, as amended, be, and hereby are, amended so as to read 
 as follows : 
 
 "(2) A woman who, at the time of her marriage, was a sub- 
 ject or citizen of a nation which has remained neutral in the war, 
 or of a nation which was associated with the United States in the 
 prosecution of said war, and who, prior to April 6, 1917, inter- 
 married with a subject or citizen of Germany or Austria-Hungary 
 and that the money or other property concerned was not acquired 
 by such woman, either directly or indirectly, from any subject or 
 citizen of German or Austria-Hungary subsequent to January 
 1, 1917. 
 
 " (3) A woman who, at the time of her marriage, was a citizen 
 of the United States and who, prior to April 6, 1917, intermarried 
 with a subject or citizen of Germany or Austria-Hungary, and that 
 the money or other property concerned was not acquired by such 
 woman, either directly or indirectly, from any subject or citizen 
 of Germany or Austria-Hungary subsequent to January 1, 1917." 
 
 SECTION 9 AS AMENDED DECEMBER 21, 1921. 
 
 "Be it enacted by the Senate and House of Representatives of 
 the United States of America in Congress assembled, That section
 
 40 
 
 9 of the Act entitled 'An Act to define, regulate and punish trading 
 with the enemy, and for other purposes,' approved October 6, 
 1917, as amended, is hereby amended by striking out the words 
 'six months' in such section and inserting in lieu thereof 'eighteen 
 months.' " 
 
 SECTION 10. 
 
 Sec. 10. That nothing contained in this Act shall be held to make un- 
 lawful any of the following Acts : 
 
 (a) An enemy, or ally of enemy, may file and prosecute in the United 
 States an application for letters patent, or for registration of trade-mark, 
 print, label, or copyright, and may pay any fees therefor in accordance with 
 and as required by the provisions of existing law and fees for attorneys or 
 agents for filing and prosecuting such applications. Any such enemy, or ally 
 of enemy, who is unable during war, or within six months threafter, on 
 account of conditions arising out of war, to file any such application, or 
 to pay any official fee, or to take any action required by law within the 
 period prescribed by law, may be granted an extension of nine months 
 beyond the expiration of said period, provided the nation of which the said 
 applicant is a citizen, subject, or corporation shall extend substantially 
 similar privileges to citizens and corporations of the United States. 
 
 (b) Any citizen of the United States, or any corporation organized 
 within the United States, may, when duly authorized by the President, 
 pay to an enemy or ally of enemy any tax, annuity or fee which may be 
 required by the laws of such enemy or ally of enemy nation in relation to 
 patents and trade-marks, prints, labels, and copyrights ; and any such citizen 
 or corporation may file and prosecute an application for letters patent or 
 for registration of trade-mark, print, label, or copyright in the country of 
 an enemy, or of an ally of enemy after first submitting such application to 
 the President and receiving license to file and prosecute, and to pay the fees 
 required by law and customary Agents' fees, the maximum amount of which 
 in each case shall be subject to the control of the President. 
 
 (c) Any citizen of the United States or any corporation organized 
 within the United States desiring to manufacture, or cause to be manufac- 
 tured, a machine, manufacture, composition of matter, or design, or to carry 
 on, or to use any trade-mark, print, label, or cause to be carried on, a 
 process under any patent or copyrighted matter owned or controlled by an 
 enemy or ally of enemy at any time during the existence of a state of war 
 may apply to the President for a license; and the President is hereby 
 authorized to grant such a license, non-exclusive or exclusive as he shall 
 deem best, provided he shall be of the opinion that such grant is for the 
 public welfare, and that the applicant is able and intends in good faith to 
 manufacture, or cause to be manufactured, the machine, manufacture, com- 
 position of matter, or design or to carry on, or to cause to be carried on, 
 the process or to use the trade-mark, print, label or copyrighted matter. 
 The President may prescribe the conditions of this license, including the 
 fixing of prices of articles and products necessary to the health of the 
 military and naval forces of the United States or the successful prosecution
 
 41 
 
 of the war, and the rules and regulations under which such license may be 
 granted and the fee which shall be charged therefor, not exceeding $100, 
 and not exceeding one per centum of the fund deposited as hereinafter 
 provided. Such license shall be a w complete defense to any suit at law or in 
 equity instituted by the enemy or ally of enemy owners of the letters patent, 
 trade-mark, print, label, or copyright, or otherwise, against the licensee 
 for infringement or for damages, royalty, or other money award on account 
 of anything done by the licensee under such license, except as provided in 
 subsection (f) hereof. 
 
 (d) The licensee shall file with the President a full statement of the 
 extent of the use and enjoyment of the license, and of the prices received in 
 such form and at such stated periods (at least annually) as the President 
 may prescribe ; and the licensee shall pay at such times as may be required 
 to the alien property custodian not to exceed five per centum of the gross 
 sums received by the licensee from the sale of said inventions or use of 
 the trade-mark, print, label or copyrighted matter, or, if the President 
 shall so order, five per centum of the value of the use of such inventions, 
 trade-marks, prints, labels, or copyrighted matter to the licensee as estab- 
 lished by the President ; and sums so paid shall be deposited by said Alien 
 Property Custodian forthwith in the Treasury of the United States as a 
 trust fund for the said licensee and for the owner of the said patent, trade- 
 mark, print, label or copyright registration as hereinafter provided, to be 
 paid from the Treasury upon order of the court, as provided in subdivision 
 (f) of this section, or upon the direction of the Alien Property Custodian. 
 
 (e) Unless surrendered or terminated as provided in this Act, any 
 license granted hereunder shall continue during the term fixed in the license 
 or in the absence of any such limitation during the term of the patent, 
 trade-mark, print, label, or copyrighted registration under which it is 
 granted. Upon violation by the licensee of any of the provisions of this 
 Act, or of the conditions of the license, the President may, after due notice 
 and hearing, cancel any license granted by him. 
 
 (f) The owner of any patent, trade-mark, print, label, or copyright 
 under which a license is granted hereunder may, after the end of the war 
 and until the expiration of one year thereafter, file a bill in equity against 
 the licensee in the district court of the United States for the district in 
 which the said licensee resides, or, if a corporation, in which it has its 
 principal place of business (to which suit the Treasurer of the United 
 States shall be made a party), for recovery from the said licensee for all 
 use and enjoyment of the said patented invention, trade-mark, print, label, 
 or copyrighted matter : Provided, however, That whenever suit is brought, 
 as above, notice shall be filed with the alien property custodian within thirty 
 days after date of entry of suit; Provided, further, that the licensee may 
 make any and all defenses which would be available were no license granted. 
 The court on due proceedings had may adjudge and decree to the said 
 owner payment of a reasonable royalty. The amount of said judgment and 
 decree, when final, shall be paid on order of the court to the owner of the 
 patent from the fund deposited by the licensee, so far as such deposit will
 
 42 
 
 satisfy said judgment and decree; and the said payment shall be in full or 
 partial satisfaction of said judgment and decree, as the facts may appear; 
 and if, after payment of all such judgments and decrees, there shall remain 
 any balance of said deposit, such balance shall be repaid to the licensee on 
 order of the alien property custodian. If no suit is brought within one 
 year after the end of the war, or no notice is filed as above required, then 
 the licensee shall not be liable to make any further deposits, and all funds 
 deposited by him shall be repaid to him on order of the alien property 
 custodian. Upon entry of suit and notice filed as above required, or upon 
 repayment of funds as above provided, the liability of the licensee to make 
 further reports to the President shall cease. 
 
 If suit is broug-ht as above provided, the court may, at any time, 
 terminate the license, and may, in such event, issue an injunction to restrain 
 the licensee from infringement thereafter, or the court, in case the licensee, 
 prior to suit, shall have made investment of capital based on possession of 
 the license, may continue the license for such period and upon such terms 
 and with such royalties as it shall find to be just and reasonable. 
 
 (g) Any enemy, or ally of enemy, may institute and prosecute suits in 
 equity against any person other than a licensee under this act to enjoin 
 infringement of letters patent, trade-mark, print, label and copyrights in 
 the United States owned or controlled by said enemy or ally of enemy, in the 
 same manner and to the extent that he would be entitled so to do if the 
 United States was not at war: Provided, That no final judgment or decree 
 shall be entered in favor of such enemy or ally of enemy by any court except 
 after thirty days' notice to the alien property custodian. Such notice shall 
 be in writing and shall be served in the same manner as civil process of 
 Federal courts. 
 
 (h) All powers of attorney heretofore or hereafter granted by an 
 enemy or ally of enemy to any person within the United States, in so far as 
 they may be requisite to the performance of acts authorized in subsections 
 (a) and (g) of this section, shall be valid. 
 
 (i) Whenever the publication of an invention by the granting of a 
 patent may, in the opinion of the President, be detrimental to the public 
 safety or defense, or may assist the enemy or endanger the successful 
 prosecution of the war, he may order that the invention be kept secret and 
 withhold the grant of a patent until the end of the war: Provided, That 
 the invention disclosed in the application for said patent may be held 
 abandoned upon it being established before or by the Commissioner of 
 Patents that, in violation of said order, said invention has been published 
 or that an application for a patent therefor has been filed in any other 
 country, by the inventor or his assigns or legal representatives, without 
 the consent or approval of the commissioner or under a license of the 
 President. 
 
 When an applicant whose patent is withheld as herein provided and 
 who faithfully obeys the order of the President above referred to shall 
 tender his invention to the Government of the United States for its use, he
 
 43 
 
 shall, if he ultimately received a patent, have the right to sue for com- 
 pensation in the Court of Claims, such right to compensation to begin 
 from the date of the use of the invention by the Government. 
 
 EXCERPTS FROM SECTION 12, as originally enacted. 
 
 The alien property custodian shall be vested with all the powers of a 
 common-law trustee in respect of all property, other than money, which 
 shall come into his possession in pursuance of the provisions of this Act, 
 and, acting under the supervision and direction of the President, and under 
 such rules and regulations as the President shall prescribe, may manage 
 such property and do any act or things in respect thereof or make any dis- 
 position thereof or of any part thereof, by sale or otherwise and exercise 
 any rights which may be or become appurtenant thereto or to the ownership 
 thereof, if and when necessary to prevent waste and protect such prop- 
 erty and to the end that interests of the United States in such property 
 and rights or such person as may ultimately become entitled thereto or 
 to the proceeds thereof, may be preserved and safeguarded. It shall be 
 the duty of every corporation incorporated within the United States and 
 every unincorporated association, or company or trustee, or trustees within 
 the United States issuing shares or certificates representing beneficial 
 interests to transfer such shares or certificates upon its. his or their books 
 into the name of the alien property custodian upon demand, accompanied 
 by the presentation of the certificates which represent such shares or 
 beneficial interests. The alien property custodian shall forthwith deposit 
 in the Treasury of the United States, as hereinbefore provided, the pro- 
 ceeds of any such property or rights so sold by him. 
 
 After the end of the war any claim or any enemy or an ally of enemy 
 to any money or other property received and held by the alien property 
 custodian or deposited in the United States Treasury, shall be settled as 
 Congress shall direct ; Provided, However, That on order of the President as 
 set forth in section nine hereof, or of the court, as set forth in sections 
 nine and ten hereof, the alien property custodian or the Treasurer of the 
 United States, as the case may be, shall forthwith convey, transfer, assign, 
 and pay to the person to whom the President shall so order, or in whose 
 behalf the court shall enter final judgment or decree, any property of an 
 enemy or ally of enemy, held by said custodian or by said Treasurer, so far 
 as may be necessary to comply with said order of the President or said 
 final judgment or decree of the court: And provided further, That the 
 Treasurer of the United States, on order of the alien property custodian 
 shall, as provided in section ten hereof, repay to the licensee any funds 
 deposited by said licensee. 
 
 FOURTH PARAGRAPH OF SECTION 12, as amended March 28, 1918. 
 
 The alien property custodian shall be vested with all of the powers of 
 a common-law trustee in respect of all property, other than money, which
 
 44 
 
 has been or shall be, or which has been or shall be required to be, conveyed, 
 transferred, assigned, delivered, or paid over to him in pursuance of the 
 provisions of this Act, and, in addition thereto, acting under the supervision 
 and direction of the President, and under such rules and regulations as the 
 President shall prescribe, shall have power to manage such property and 
 do any act or things in respect thereof or make any disposition thereof 
 or of any part thereof, by sale or otherwise, and exercise any rights or 
 powers which may be or become appurtenant thereto or to the ownership 
 thereof in like manner as though he were the absolute owner thereof; 
 Provided, That any property sold under this Act, except when sold to the 
 United States shall be sold only to American citizens, at public sale to the 
 highest bidder, after public advertisement of time and place of sale which 
 shall be where the property or the major portion thereof is situated, unless 
 the President stating the reasons therefor, in the public interest shall other- 
 wise determine; Provided further, That when sold at public sale, the alien 
 property custodian upon the order of the President stating the reasons 
 therefor, shall have the right to reject all bids and resell such property at 
 public sale or otherwise as the President may direct. Any person purchas- 
 ing property from the alien property custodian for an undisclosed principal, 
 or for re-sale to a person not a citizen of the United States, or for the benefit 
 of a person not a citizen of the United States, shall be guilty of a mis- 
 demeanor and, upon conviction, shall be subject to a fine of not more than 
 $10,000, or imprisonment for not more than ten years, or both, and the 
 property shall be forfeited to the United States. It shall be the duty of 
 every corporation incorporated within the United States and every unin- 
 corporated association, or company, or trustee, or trustees, within the Uni- 
 ted States issuing shares or certificates representing beneficial interest to 
 transfer such shares or certificates upon its, his or their books, into the 
 name of the alien property custodian upon demand, accompanied by the 
 presentation of the certificates which represent such shares or beneficiary 
 interest. The alien property custodian shall forthwith deposit in the 
 Treasury of the United States, as hereinbefore provided, the proceeds of 
 any such property or rights so sold by him. 
 
 APPENDIX 2. 
 EXECUTIVE ORDERS AND EXCERPTS THEREFROM. 
 
 (a) EXCERPT FROM EXECUTIVE ORDER ISSUED BY THE PRESI- 
 DENT OF THE UNITED STATES OCT. 12, 1917, ENTITLED 
 'EXECUTIVE ORDER VESTING POWER AND AUTHORITY IN 
 DESIGNATED OFFICERS AND MAKING RULES AND REGULA- 
 TIONS UNDER THE TRADING WITH THE ENEMY ACT AND 
 TITLE VII OF THE ACT APPROVED JUNE 15, 1917. 
 
 XXIX. I hereby vest in an alien-property custodian, to be hereafter 
 appointed, the executive administration of all the provisions of section 
 7 (a), section 7 (c), and section 7 (d) of the Trading with the Enemy Act,
 
 45 
 
 including all power and authority to require lists and reports, and to extend 
 the time for filing the same, conferred upon the President by the provi- 
 sions of said section 7 (a), and including the power and authority con- 
 ferred upon the President by the provisions of said section 7 (c) , to require 
 the conveyance, transfer, assignment, delivery or payment to himself, at 
 such time and in such manner as he shall prescribe, of any money or other 
 properties owing to or belonging to or held for, by or on account of, or 
 on behalf of, or for the benefit of any enemy or ally of an enemy, not hold- 
 ing a license granted under the provisions of the Trading with the Enemy 
 Act, which, after investigation, said Alien Property Custodian shall deter- 
 mine is so owing or so belongs, or is so held. 
 
 (b) EXCERPT FROM EXECUTIVE ORDER NO. 2813 ISSUED BY 
 THE PRESIDENT OF THE UNITED STATES FEBRUARY 26, 
 1918. 
 
 (1) DEFINITIONS. 
 
 (d) Any requirement made by the Alien Property Custodian pur- 
 suant to Section 7, subsection "c" of the "Trading with the Enemy Act" 
 may be known as and called a demand and will be hereinafter referred to 
 as a demand. 
 
 (2) DEMANDS PURSUANT TO SECTION 7, SUBSECTION "C." 
 
 (a) The Alien Property Custodian may make demand for the con- 
 veyance, transfer, assignment, delivery, and payment of any money or 
 other property owing or belonging to or held for, by, on account of, or 
 on behalf of or for the benefit of an enemy not holding a license granted 
 by me or in the exercise of my power and authority, which the Alien 
 Property Custodian after investigation, shall determine is so owing or 
 so belongs or is so held, together with every right, title, interest, and 
 estate of the enemy in and to such money or other property and every 
 power and authority of the enemy thereover, including (but without 
 limiting the generality of the foregoing) the power and authority to 
 affirm, ratify, approve, revoke, repudiate or disapprove, in whole or 
 in part, and at any time or times, any power, agency, trust or other 
 relation at the time existing, and also any act or omission thereto- 
 fore done in the exercise of or pursuant to any power, agency, trust 
 or other relation which the enemy could or might lawfully revoke, 
 repudiate, disaffirm, affirm, ratify or approve, *and also including 
 (but without limiting the generality of the foregoing) the power and 
 authority to direct, supervise, and control the future exercise of any 
 power, agency, trust or other relation over such money or other property 
 to the extent that the enemy could or might lawfully direct, supervise, and 
 control the same. Or the Alien Property Custodian may qualify or limit 
 any such demand in such manner o such extent as he may in any case 
 see fit and (without limiting the generality of the power to qualify and 
 limit demands) he may in any case demand all or only such power and 
 authority over the money or other property as he may see fit without
 
 46 
 
 demanding any conveyance, transfer, assignment, delivery or payment 
 of such money or other property or any other right, title, interest, or 
 estate therein or thereto except such as may be included within the power 
 and authority demanded in the particular case over such money or other 
 property. 
 
 A demand for the conveyance, transfer, assignment, delivery and 
 payment of money or other property unless expressly qualified or limited 
 shall be deemed to include every right, title, interest, and estate of the 
 enemy in and to the money or other property demanded as well as every 
 power and authority of the enemy thereover. 
 
 (b) Notice of demand made by the Alien Property Custodian may 
 be given to any person who, alone or jointly with others, may hold or 
 have the custody or control of or may be exercising any right, power, or 
 authority in or over or may be performing any duty concerning the 
 money or other property mentioned in the demand; and, in any notice 
 given, the Alien Property Custodian may require of the person notified 
 the performance of any act or thing within the power of the person noti- 
 fied which may be necessary or proper to make the demand fully effective, 
 or to establish proper acknowledgment, recognition, or evidence of the 
 right, title, interest, and estate of the Alien Property Custodian in and 
 to such money or other property and of the power and authority of 
 the Alien Property Custodian thereover, and it shall be the duty of any 
 person so notified to perform any act or thing so required. Such notice 
 may be given in person or by mail. 
 
 (c) When demand shall be made and notice thereof given, as here- 
 inbefore provided, such demand and notice shall forthwith vest in the 
 Alien Property Custodian such right, title, interest, and estate in and 
 to and possession of the money or other property demanded and such 
 power or authority thereover as may be included within the demand, 
 and the Alien Property Custodian may thereupon proceed to administer 
 such money and other property in accordance with the provisions of the 
 "Trading with the Enemy Act" and with any orders, rules, or regulations 
 heretofore, hereby, or hereafter made by me or heretofore or hereafter 
 made by the Alien Property Custodian. 
 
 (c) EXCERPT FROM EXECUTIVE ORDER No. 3061, ISSUED BY THE 
 PRESIDENT OF THE UNITED STATES DEC. 3, 1918. 
 
 III. The power* and authority heretofore vested in the Federal 
 Trade Commission to issue, pursuant to the provisions of sub-section (c) 
 and section 10 of the "Trading with the Enemy Act," or to withhold or 
 refuse a license to any citizen of the United States or any corporation, 
 organized within the United States, to manufacture or cause to be manu- 
 factured a machine, composition of matter or design, or to carry on or 
 cause to be carried on a process under any patent, or to use any trade- 
 mark, print, label or copyrighted matter owned or controlled by an enemy 
 or ally of enemy, is hereby continued in full force and effect, provided: 
 
 (1) That said Federal Trade Commission shall not have the power
 
 47 
 
 or authority to issue any such license whenever the patent, trademark, 
 print, label or copyright with respect to which application for such license 
 is made, shall have been conveyed, transferred, assigned or delivered to 
 the Alien Property Custodian, in pursuance of his requirement, or seized 
 by him; and whenever any patent, trademark print, label or copyright 
 shall be or shall have been conveyed, 'transferred, assigned, or delivered 
 to the Alien Property Custodian, in pursuance of his requirement, or 
 seized by him, the Federal Trade Commission shall have no further power 
 or authority with respect thereto. 
 
 (2) That said Federal Trade Commission shall notify the Alien 
 Property Custodian of all applications made to it for licenses under said 
 sub-section (c) of Section 10 of the Trading with the Enemy Act, so that 
 he may, if he so desires appear at any hearing and object to the issuance 
 thereof. The Alien Property Custodian, in lieu of appearance, may file 
 with the Federal Trade Commission objections to the issuance of any such 
 license. In no event shall any license be issued until after the expiration 
 of fifteen days after such notice of the application shall have been given 
 to the Alien Property Custodian. 
 
 IV. The Alien Property Custodian is hereby authorized to take all 
 measures and do all things that may be necessary or expedient to admin- 
 ister the powers and authority conferred by this Order. 
 
 V. I hereby vest in Frank L. Polk all power and authority conferred 
 upon the President by the provisions of Section 12 of said "Trading with 
 the Enemy Act" as amended, other than the Executive Administration of 
 the provisions of said Section 12 pertaining to the designation of a Depos- 
 itary or Depositaries, which Executive Order of October 29, 1917, and 
 which Executive Order is expressly ratified and continued in full force 
 and effect; provided that this order shall not be construed to revoke or 
 cancel the power and authority in the Attorney General by Paragraph 
 XXXII of the Executive Order of October 12, 1917. 
 
 Nothing in this Order shall nullify or impair any license heretofore 
 granted by the Federal Trade Commission, pursuant to the provisions of 
 Section 10 of An Act of Congress entitled "An Act to define, regulate, 
 and punish trading with the enemy, and for other purposes, approved Octo- 
 ber 6, 1917. 
 
 (d) ORDER BY FRANK L. POLK UNDER AUTHORITY OF EXECU- 
 TIVE ORDER OF DECEMBER 3, 1918. AN ORDER CONCERN- 
 ING THE SALE, TRANSFER AND RELEASE OF CERTAIN 
 RIGHTS UNDER LETTERS PATENT, TRADEMARKS AND SIMI- 
 LAR RIGHTS DETERMINED TO BELONG TO OR TO BE HELD 
 FOR, BY, ON ACCOUNT OF OR ON BEHALF OF OR FOR THE 
 BENEFIT OF PERSONS DETERMINED TO BE ENEMIES NOT 
 HOLDING A LICENSE OR LICENSES GRANTED BY THE PRESI- 
 DENT WITHIN THE PURVIEW OF THE TRADING WITH THE 
 ENEMY ACT AND THE AMENDMENTS THERETO. 
 By virtue of the authority vested in the President by an Act of Con- 
 gress entitled "An Act to define, regulate and punish trading with the
 
 48 
 
 enemy and for other purposes," approved October 6, 1917, known as the 
 "Trading with the Enemy Act," and the amendment to such Act embodied 
 in "An Act making appropriations to supply urgent deficiencies in the 
 appropriations for the fiscal year ending June 30th, 1918, and prior fiscal 
 years on account of War expenses and for other purposes," approved March 
 28, 1918, and the amendment to such Act embodied in "An Act making 
 appropriations to supply deficiencies in appropriations for the fiscal year 
 ending June 30, 1919, and prior fiscal years on account of War expenses 
 and for other purposes," approved November 4, 1918, to make certain 
 orders such as that herein contained, which authority has been delegated 
 to me by the Executive Order No. 3016 and signed by the President under 
 the third day of December, 1918, I hereby, in the public interest make the 
 following determination and order. 
 
 The Alien Property Custodian may release and discharge the United 
 States of America and any department thereof upon such terms and condi- 
 tions as to the Alien Property Custodian may seem proper, from any and 
 all claims and demands arising from any alleged infringement of the 
 letters patent, trademarks and rights under letters patent and trademarks 
 hereinafter referred to. 
 
 The Alien Property Custodian may sell at private sale without public 
 or other advertisement to The Chemical Foundation, Inc., a corporation 
 organized and existing under and by virtue of the laws of the State of 
 Delaware at such place and upon such terms and conditions as to the 
 Alien Property Custodian or his authorized agent may seem proper, all 
 of the letters patent, trademarks and rights under letters patent and 
 trademarks, including all profits and damages recoverable at law or in 
 equity for the past infringement thereof which the Alien Property Custo- 
 dian may seize or may have seized under the provisions of the said Trading 
 with the Enemy Act and the amendments thereto, now or hereafter enacted 
 and which he from time to time shall determine relate to the objects and 
 purposes of said The Chemical Foundation, Inc., as expressed and defined 
 by its charter. 
 
 My reasons in the public interest for the foregoing determination, 
 order, rule and regulation are: 
 
 First: Said letters patent, trademarks and similar rights cannot be 
 sold to the best advantage at public sale after public or other advertisement. 
 
 Second: The Chemical Foundation, Inc., has been incorporated for 
 the purpose of holding letters patent, trademarks and similar rights relat- 
 ing to the chemical and allied sciences as a trustee for American industry, 
 for the purpose of the Americanization of such industries as may be 
 affected thereby, of eliminating alien interests hostile to said American 
 industries and of the advancement of chemical and allied industry in the 
 United States. The Chemical Foundation, Inc., is obligated to grant non- 
 exclusive licenses upon equal terms at a uniform royalty to qualified 
 American manufacturers and is empowered to grant free licenses to the 
 United States for any use the United States may desire to make of the 
 inventions covered by said letters patent, and similar rights.
 
 49 
 
 Third: The public interest will be best served by a wide use of the 
 inventions covered by said letters patent and similar rights and such wide 
 use can be most readily promoted by the licenses which the said, The 
 Chemical Foundation, Inc., is by its charter obligated to grant. 
 
 Fourth: A private sale will prevent said letters patent, trade-marks 
 and similar rights from falling into the hands of purchasers who would 
 be unwilling or unable to put the inventions covered thereby into use, or 
 would use them for purely speculative purposes. 
 
 Fifth : It would be impossible to make a public sale of the said letters 
 patent, trade-marks and similar rights so as to secure the foregoing bene- 
 fits to the public. 
 
 Sixth: Unnecessary expense, delay and inconvenience may be 
 avoided by a private sale. 
 
 Done in the District of Columbia, this, the 26th day of February, 
 in the year of our Lord one thousand nine hundred and 
 nineteen, and of the Independence of the United States of 
 America, the one hundred and forty-third. 
 
 FRANK L. POLK. 
 
 (e) ORDER BY FRANK L. POLK UNDER AUTHORITY OF EXECU- 
 TIVE ORDER OF DECEMBER 3, 1918. AN ORDER CONCERN- 
 ING THE SALE, TRANSFER AND RELEASE OF CERTAIN 
 COPYRIGHTS, APPLICATIONS AND LETTERS PATENT AND 
 APPLICATIONS FOR THE REGISTRATION OF TRADEMARKS 
 AND COPYRIGHTS DETERMINED TO BELONG TO OR TO BE 
 HELD FOR, BY, ON ACCOUNT OF OR FOR THE BENEFIT OF 
 PERSONS DETERMINED TO BE ENEMIES NOT HOLDING A 
 LICENSE OR LICENSES GRANTED BY THE PRESIDENT 
 WITHIN THE PURVIEW OF THE TRADING WITH THE ENEMY 
 ACT AND THE AMENDMENTS THERETO. 
 
 By virtue of the authority vested in the President by an Act of Con- 
 gress entitled "An Act to define, regulate and punish trading with the 
 enemy and for other purposes," approved October 6, 1917, known as the 
 "Trading with the Enemy Act," and the amendment to such Act embodied 
 in "An Act making appropriations to supply urgent deficiencies in the 
 appropriations for the fiscal year ending June 30th, 1918, and prior fiscal 
 years on account of War expenses and for other purposes," approved 
 March 28. 1918, and the amendment to such Act embodied in "An Act 
 making appropriations to supply deficiencies in appropriations for the 
 fiscal year ending June 30, 1919, and prior fiscal years on account of War 
 expenses and for other purposes," approved November 4, 1918, to make 
 certain orders such as that herein contained, which authority has been 
 delegated to me by the Executive Order No. 3016, and signed by the 
 President under the third day of December, 1918, I hereby, in the public 
 interest, make the following determination and order: 
 
 The Alien Property Custodian may release and discharge the United 
 States of America and any department thereof upon such terms and con-
 
 50 
 
 ditions as to the Alien Property Custodian may seem proper, from any 
 and all claims and demands arising from any alleged infringement of the 
 copyrights hereinafter referred to. 
 
 The Alien Property Custodian may sell at private sale without public 
 or other advertisement to The Chemical Foundation, Inc., a corporation 
 organized and existing under and by virtue of the laws of the State of 
 Delaware at such place and upon such terms and conditions as to the Alien 
 Property Custodian or his authorized agent may seem proper, all of the 
 copyrights, the certificates of registration thereof and the publications 
 upon which said registrations were granted, applications for letters patent 
 and for the registration of trade-marks and copyrights and all rights 
 thereunder which the Alien Property Custodian may seize or have seized 
 under the provisions of the said "Trading with the Enemy Act" and the 
 amendment thereto now or hereafter enacted and which he from time 
 to time shall determine relate to the objects and purposes of said, The 
 Chemical Foundation, Inc., as expressed and defined by its charter. 
 
 My reasons in the public interest for the foregoing determination, 
 order, rule and regulation are: 
 
 First : A similar order, rule and regulation relating to letters patent, 
 trade-marks and similar rights has been made by me the twenty-sixth 
 day of February, 1919, and this order is supplemental thereto and neces- 
 sary to fully carry out the objects and purposes of said order of February 
 twenty-sixth, 1919. 
 
 Second: Said copyrights, applications for letters patent and for the 
 registration of trade-marks and copyrights can not be sold to the best 
 advantage at public sale after public or other advertisement. 
 
 Third: The Chemical Foundation, Inc., has been incorporated for 
 the purpose of holding letters patent, trade-marks and similar rights 
 relating to the chemical and allied sciences as a trustee for American 
 industry, for the purpose of the Americanization of such industries as 
 may be affected thereby, by eliminating alien interests hostile to said 
 American industries and of the advancement of chemical and allied indus- 
 tries in the United States. 
 
 Fourth: The public interest will be best served by the administra- 
 tion by The Chemical Foundation, Inc., of the letters patent, trade-marks, 
 copyrights, and applications therefor and similar rights permitted to 
 be sold to it by this order and by my order of the twenty-sixth of Febru- 
 ary, 1919. 
 
 Fifth: A private sale will prevent said copyrights, applications for 
 letters patent and for the registration of trade-marks and copyrights 
 from falling into the hands of purchasers who would be unwilling or 
 unable to carry out the purposes of The Chemical Foundation, Inc., or 
 would use the copyrights, applications for letters patent and for the 
 registration of trade-marks and copyrights for purely speculative pur- 
 poses. 
 
 Sixth: It would be impossible to make a public sale of the said 
 copyrights, letters patent and applications for the registration of trade-
 
 51 
 
 marks and copyrights so as to secure the benefits to the public which a 
 sale to The Chemical Foundation, Inc., would secure to the public. 
 
 Seventh: Unnecessary expense, delay and inconvenience may be 
 avoided by a private sale. 
 
 Done in the District of Columbia, this 5th day of April, in the 
 year of our Lord One thousand nine hundred and nineteen, 
 and of the Independence of the United States of America, 
 the one hundred and forty-third. 
 
 FRANK L. POLK. 
 
 (f) EXECUTIVE ORDER AN ORDER CONCERNING THE SALE 
 AND CONVEYANCE OF CERTAIN CHOSES IN ACTION AND 
 RIGHTS, INTERESTS AND BENEFITS UNDER CERTAIN 
 AGREEMENTS, DETERMINED TO BELONG TO, OR TO BE 
 HELD FOR, BY, ON ACCOUNT OF, OR ON BEHALF OF, OR 
 FOR THE BENEFIT OF PERSONS DETERMINED TO BE ENE- 
 MIES, NOT HOLDING A LICENSE OR LICENSES GRANTED BY 
 THE PRESIDENT WITHIN THE PURVIEW OF THE "TRADING 
 WITH THE ENEMY ACT" AND THE AMENDMENTS THERETO. 
 
 By virtue of the authority vested in me by an Act of Congress entitled 
 "An Act to define, regulate, and punish trading with the enemy and for 
 other purposes," approved October 6, 1917, known as the "Trading with 
 the Enemy Act," and the amendment to such act embodied in "An Act 
 making appropriations to supply urgent deficiences in the appropriations 
 for the fiscal year ending June 30th, 1918, and prior fiscal years on account 
 of war expenses and for other purposes," approved March 28, 1918, and 
 the amendment to such act embodied in "An Act making appropriations 
 to supply deficiencies in appropriations for the fiscal year ending June 30, 
 1919, and prior fiscal years on account of war expenses and for other pur- 
 poses," approved November 4, 1918, to make certain orders such as that 
 herein contained, and all other powers and authorities me hereto enabling, 
 I do hereby make the following determination and order : 
 
 WHEREAS by Orders dated February 26, 1919, and April 5, 1919, 
 made by Frank L. Polk under the authority of Executive Order No. 3016 
 of December 3, 1918, the Alien Property Custodian was authorized to sell 
 and convey to The Chemical Foundation, Inc., a corporation organized and 
 existing under and by virtue of the laws of the State of Delaware, certain 
 choses in action and rights, interests and benefits heretofore determined 
 to belong to, or to be held for, by, or on account of, or for the benefit of 
 persons heretofore determined to be enemies; and 
 
 WHEREAS it was the intention of the said Executive Orders to 
 authorize the said Custodian to sell and convey thereunder, all choses in 
 action, rights, interests and benefits under agreements and rights and 
 claims of every character and description, including rights to receive 
 moneys by way of royalties or otherwise as compensation for the use of 
 patents, trade-marks or trade-names, which the Alien Property Custodian 
 may have seized under the provisions of the "Trading with the Enemy
 
 52 
 
 Act" as amended, and which he had from time to time determined to 
 relate to the objects and purposes of the said, The Chemical Foundation, 
 Inc., as expressed and defined in its charter ; and 
 
 WHEREAS doubt has arisen as to the authority of the said Alien 
 Property Custodian to sell and convey to the said, The Chemical Founda- 
 tion, Inc., certain of the said choses in action, rights, interests, benefits 
 under agreements, and rights and claims including rights to receive 
 moneys by way of royalties or otherwise, as compensation for the use of 
 patents, trade-marks or trade-names; 
 
 NOW, THEREFORE, I, WOODROW WILSON, President of the 
 United States of America, do hereby in the public interest, determine and 
 order that the Alien Property Custodian is hereby authorized to sell at 
 private sale, without public or other advertisement, to The Chemical Foun- 
 dation, Inc., a corporation organized and existing under and by virtue of 
 the terms and conditions as to the Alien Property Custodian may seem 
 proper, all choses in action, rights, interests and benefits under agreements 
 and rights and claims of every character and description which the Alien 
 Property Custodian may seize or may have seized under the provisions 
 of the "Trading with the Enemy Act" and the amendments thereto now 
 or hereafter enacted and which he from time to time shall determine 
 relate to the objects and purposes of the said The Chemical Foundation, 
 Inc., as expressed and defined in its charter. 
 
 The Alien Property Custodian is also hereby authorized in the case 
 of sales heretofore made by him of any property which he is hereby 
 authorized to sell, but as to which his authority to sell the same under 
 the said Orders of February 26, 1919, and April 5, 1919, may be deemed 
 doubtful to confirm and ratify the said sales by the execution and delivery 
 of a suitable instrument of confirmation. 
 
 My reasons for the foregoing determination and order are stated in 
 the said orders of Frank L. Polk of the 26th of February, 1919, and the 
 5th of April, 1919 ; and in addition thereto, the public interest will be best 
 served by the elimination of any enemy interest adverse to American citi- 
 zens arising by reason of said choses in action, or rights, interests and 
 benefits under agreements and by the devoting of any payments made by 
 reason of said choses in action or under said agreements by THE CHEM- 
 ICAL FOUNDATION, INC., to the promotion of the objects stated in its 
 charter. 
 
 Done in the District of Columbia this 13th day of February, in 
 the year of Our Lord One Thousand Nine Hundred and 
 Twenty, and of the Independence of the United States the 
 One Hundred and Forty-fourth. 
 
 WOODROW WILSON. 
 
 APPENDIX 3. 
 
 ASSIGNMENT. 
 
 WHEREAS, A. MITCHELL PALMER, formerly Alien Property Cus- 
 todian, duly appointed, qualified and acting under the provisions of the
 
 53 
 
 Act of Congress known as the "Trading with the Enemy Act," approved 
 October 6, 1917, and the amendments thereto and the executive orders 
 and proclamations issued in pursuance thereof, did during his incum- 
 bency of said office of Alien Property Custodian by virtue of requirement 
 or demands issued under his hand and seal of office duly recorded in the 
 United States Patent Office, seize and require to be conveyed to him 
 certain letters patent of the United States and applications for letters 
 patent of the United States which patents are enumerated in Schedule A 
 hereto attached, together with every right, title and interest with respect 
 thereto including all damages and profits recoverable at law or in equity 
 from any persons, firm, corporation or government for past infringement 
 of said letters patent, subject to the rights of citizens of the United 
 States or of friendly nations as stated in certain of the requirements or 
 demands relating to said letters patent and applications for letters patent ; 
 and 
 
 WHEREAS, I, FRANCIS P. GARY AN, was on the 4th day of March, 
 1919, duly appointed and thereafter duly qualified as Alien Property Cus- 
 todian in succession of the said A. MITCHELL PALMER ; and . * 
 
 WHEREAS, I, FRANCIS P. GARVAN, as Alien Property Custodian 
 as aforesaid by virtue of requirements or demands issued under my hand 
 and seal of office and duly recorded in the United States Patent Office and 
 in the office of the Register of Copyrights of the United States, have 
 seized and required to be conveyed to me certain letters patent of the 
 United States and applications for letters patent of the United States, cer- 
 tain trade-marks and registrations thereof and the business and good- 
 will appurtenant thereto, and certain copyrights and certificates of regis- 
 tration thereof and the works upon which said copyrights were issued 
 and certain rights, interests and benefits under agreements, all of which 
 are included in Schedules A, B, C and D hereto attached together with 
 every right, title and interest with respect thereto including all damages 
 and profits recoverable at law or in equity from any person, firm, corpora- 
 tion or government for the past infringement of said letters patent, 
 trade-marks and copyrights, subject to the rights of citizens of the United 
 States or of friendly nations as stated in certain of the requirements or 
 demands relating to said letters patent, applications for letters patent, 
 trade-marks, and registration thereof, copyrights and rights, interests 
 and benefits; and 
 
 WHEREAS, by a certain order bearing date the 26th day of February, 
 1919, concerning the sale, transfer and release of certain rights under 
 letters patent, trade-marks and similar rights determined to belong to, 
 or to be held for, or on account of, or on behalf of, or for the benefit of 
 persons determined to be enemies not holding a license or licenses granted 
 by the President within the purview of the "Trading with the Enemy 
 Act" and the amendment thereto and by another certain order bearing 
 date the 5th day of April, 1919, concerning the sale, transfer and release 
 of certain copyrights, applications for letters patent and applications for 
 the registration of trade-marks and copyrights determined to belong to
 
 54 
 
 or to be held for, by, on account of or for the benefit of persons determined 
 to be enemies not holding a license or licenses granted by the President 
 within the purview of the "Trading with the Enemy Act" and the amend- 
 ments thereto, both made by Frank L. Polk under authority of executive 
 order of December 3, 1918, I am empowered to sell such letters patent, 
 applications for letters patent, trade-marks and registration thereof, copy- 
 rights and rights, interests and benefits under agreements to The Chem- 
 ical Foundation, Inc., a corporation duly organized and existing under and 
 by virtue of the laws of the State of Delaware, as I determine relate to 
 the objects and purposes of the said The Chemical Foundation, Inc., as 
 expressed and defined in its charter; and 
 
 WHEREAS, I have determined that the letters patent of the United 
 States, applications for letters patent of the United States, trade-marks 
 and registration thereof, copyrights and rights, interests and benefits 
 under agreements enumerated in Schedules A, B, C, and D hereto annexed 
 relate to the objects and purposes of the said The Chemical Foundation, 
 Inc., as expressed and defined in its charter; 
 
 NOW, THEREFORE, in consideration of the sum of Two Hundred 
 and Fifty Thousand Dollars ($250,000.00), paid by the said The Chemical 
 Foundation, Inc., receipt whereof is hereby acknowledged, I, FRANCIS P. 
 GARVAN, as Alien Property Custodian as aforesaid, by these presents, 
 do sell, assign, transfer and set over unto the said THE CHEMICAL 
 FOUNDATION, INC., its successors and assigns, the whole, right, title 
 and interest acquired by me and by said A. Mitchell Palmer, each as said 
 Alien Property Custodian as aforesaid, in and to: 
 
 1. Each of the letters patent of the United States and applications 
 for letters patent of the United States enumerated in Schedule A hereto 
 annexed, together with all claims and demands for profits and damages 
 recoverable at law or in equity for the past infringement of said letters 
 patent of the United States against every person, firm, corporation, or gov- 
 ernment except the government of the United States of America; 
 
 2. Each of the United States copyrights and the certificates of regis- 
 tration thereof and the works upon which said copyrights were granted 
 enumerated in Schedule B hereto annexed, together with all claims and 
 demands for profits and damages recoverable at law or in equity for the 
 past infringement of said copyrights against every person, firm, corpora- 
 tion or government except the government of the United States of America ; 
 
 3. Each of the trade-marks and the registrations thereof enumerated 
 in Schedule C, hereto annexed and the business and good-will appurtenant 
 thereto, together with all claims and demands for profits and damages 
 recoverable at law or in equity for the past infringement of said trade- 
 marks against every person, firm, corporation or government except the 
 government of the United States of America; 
 
 4. All of the rights, interests and benefits under the agreements 
 enumerated in Schedule D hereto annexed; 
 
 All as more specifically described and set forth in the requirements 
 or demands relating to said letters patent of the United States, applica-
 
 55 
 
 tions for letters patent of the United States, trade-marks and registrations 
 thereof, copyrights and rights, interests and benefits under agreements 
 issued by said A. Mitchell Palmer, as Alien Property Custodian, or by 
 me as Alien Property Custodian without any reservation or qualification 
 whatsoever, whether by reason of anything contained in the charter or 
 by-laws of the said The Chemical Foundation, Inc., or otherwise and 
 subject only to the provisions of a certain release to the United States of 
 America, bearing even date herewith, and to the rights of citizens of the 
 United States or of friendly nations as set forth in the requirements or 
 demands for certain of said letters patent of the United States, applica- 
 tions for letters patent, trade-marks and registrations thereof, copyrights 
 and rights, interests and benefits under agreements. 
 
 I, as Alien Property Custodian as aforesaid, do hereby request the 
 Commissioner of Patents to issue any letters patent granted upon any of 
 the applications for letters patent enumerated in Schedule A hereto 
 attached to The Chemical Foundation, Inc., as the assignee of my entire 
 right, title and interest therein. 
 
 IN WITNESS WHEREOF, I have hereunto set my hand and seal of 
 office this 10th day of April, 1919. 
 
 FRANCIS P. GARY AN, 
 
 Alien Property Custodian. 
 
 APPENDIX 4. 
 
 CONFIRMATION AND RATIFICATION OF CERTAIN SALES AND 
 CONVEYANCE IN CONFIRMATION AND RATIFICATION 
 OF THE SAME BY THE ALIEN PROPERTY CUS- 
 TODIAN TO THE CHEMICAL FOUNDATION, INC. 
 
 WHEREAS,' I, Francis P. Garvan, as Alien Property Custodian, and 
 my predecessor in the said office, acting under the authority conferred 
 upon the Alien Property Custodian by the Act of Congress known as 
 "Trading with the Enemy Act," approved October 6, 1917, and the amend- 
 ments thereto, and the executive orders, orders and proclamations issued 
 in pursuance thereof, did seize, by certain seizure orders, certain letters 
 patent, application therefor, copyrights, certificates of registration thereof, 
 publications upon which such registrations were granted, trade-marks, 
 the good-will and business pertaining thereto, rights, interests and bene- 
 fits under agreements and together with the foregoing certain rights, 
 claims, demands, interests and choses in action some of which were con- 
 nected with or appurtenant to the same; and 
 
 WHEREAS, by the said Act of Congress, and the amendments thereto, 
 and by certain of said orders dated respectively February 26, 1919, and 
 April 5, 1919, the Alien Property Custodian was authorized to sell to 
 The Chemical Foundation, Inc., a corporation organized and existing 
 under and by virtue of the laws of the State of Delaware, certain of the 
 said letters patent and other property above referred to; and
 
 56 
 
 WHEREAS, I, Francis P. Garvan, as Alien Property Custodian, pur- 
 suant to said authority vested in me, for valuable consideration and at 
 such places and upon such terms and conditions as to myself, as Alien 
 Property Custodian, seemed proper, did sell to said The Chemical Foun- 
 dation, Inc., at private sale without public or other advertisement certain 
 of the said letters patent and other property, which letters patent 
 and other property, I, as Alien Property Custodian, from time to time 
 determined to relate to the objects and purposes of said The Chemi- 
 cal Foundation, Inc., as expressed and defined in its charter, and in 
 effectuation of the said sales did execute and deliver to said The Chemi- 
 cal Foundation, Inc., certain assignments in writing, in which assign- 
 ments the patents, applications therefor, copyrights, and trade-marks 
 assigned are enumerated, and which assignments are dated and recorded 
 as follows: 
 
 (1) Assignment dated April 10, 1919, recorded as to patents, applica- 
 tions therefor and trade-marks in the United States Patent Office on April 
 21, 1919, in Liber Y 107, page 1 of Transfer of Patents and recorded as 
 to copyrights in the Library of Congress, Copyright Office, on April 15, 
 1919, in Copyright Office Book 81, pages 181 to 186. 
 
 (2) Assignment dated May 2, 1919, recorded in the United States 
 Patent Office on May 21, 1919, in Liber J 107, page 152 of Transfers of 
 Patents. 
 
 (3) Assignment dated May 6, 1919, recorded in the United States 
 Patent Office on May 21, 1919, in Liber A 107, page 229 of Transfers of 
 Patents. 
 
 (4) Assignment dated May 15, 1919, recorded in the United States 
 Patent Office on May 21, 1919, in Liber X 107, page 188 of Transfers of 
 Patents. 
 
 (5) Assignment dated June 17, 1919, recorded in the United States 
 Patent Office on June 27, 1919, in Liber L 107, page 242 of Transfers of 
 Patents. 
 
 (6) Assignment dated June 21, 1919, recorded in the United States 
 Patent Office on July 10, 1919, in Liber H 107, page 259 of Transfers of 
 Patents. 
 
 (7) Assignment dated October 17, 1919, recorded in the United 
 States Patent Office on November 14, 1919, in Liber P 108, page 441 of 
 Transfers of Patents. 
 
 (8) Assignment dated December 9, 1919, recorded in the United 
 States Patent Office on December 19, 1919, in Liber Z 109, page 69 of 
 Transfers of Patents. 
 
 (9) Assignment dated February 26, 1920, recorded in the United 
 States Patent Office on December 21, 1920. 
 
 (10) Assignment dated February 26, 1920, recorded in the United 
 States Patent Office on December 21, 1920.
 
 57 
 
 (11) Assignment dated March 9, 1920, recorded in the United States 
 Patent Office on March 11, 1920, in Liber X 108, page 435 of Transfers 
 of Patents. 
 
 (12) Assignment dated -May 4, 1920, recorded in the United States 
 Patent Office on May 20, 1920, in Liber X 109, page 199 of Transfers 
 of Patents. 
 
 (13) Assignment dated May 15, 1920, recorded in the United States 
 Patent Office on November 1, 1920, in Liber E 111, page 319 of Transfers 
 of Patents. 
 
 (14) Assignment dated July 20, 1920, recorded in the United States 
 Patent Office on July 27, 1920, in Liber B 111, page 66 of Tranfers of 
 Patents. 
 
 (15) Assignment dated December 21, 1920, recorded in the United 
 States Patent Office on December 21, 1920. 
 
 (16) Assignment dated December 21, 1920, recorded in the United 
 States Patent Office on December 21, 1920. 
 
 (17) Assignment dated December 21, 1920, recorded in the United 
 States Patent Office on December 21, 1920. 
 
 (18) Assignment dated December 21, 1920, recorded in the United 
 States Patent Office on December 21, 1920. 
 
 (19) Assignment dated February 19, 1921, recorded in the United 
 States Patent Office on February 23, 1921. 
 
 And 
 
 WHEREAS, it was the intention of myself as Alien Property Cus- 
 todian and of said The Chemical Foundation, Inc., in agreeing upon the 
 said sales and in executing, delivering and receiving the said assignments 
 that the said assignments should assign and convey to said The Chemical 
 Foundation, Inc., not only the letters patent and other property specifically 
 referred to in and assigned by the said assignments, but also with such 
 exceptions as are specifically stated in said assignments, all rights, claims, 
 demands, interests and choses in action of every character and descrip- 
 tion acquired by the Alien Property Custodian by virtue of the seizures 
 whereby the said letters patent and other property were seized; and 
 
 WHEREAS, doubt has arisen as to whether the language of the said 
 assignments is in fact and in law sufficient and effectual to carry out 
 the true intent and purpose aforesaid of the said sales and to assign and 
 convey to said The Chemical Foundation, Inc., all of the said rights, claims, 
 demands, interests and choses in action acquired by the Alien Property 
 Custodian as aforesaid: and 
 
 WHEREAS, doubt has arisen as to the authority of the Alien Prop- 
 erty Custodian to sell and convey to the said The Chemical Foundation, 
 Inc., certain of the said choses in action, rights, interests, benefits under 
 agreements, and rights and claims including rights to receive moneys by 
 way of royalties or otherwise, as compensation for the use of patents, 
 trade-marks, or trade-names ; and
 
 58 
 
 WHEREAS, in one of the above mentioned executive orders, the same 
 being dated February 13, 1920, among other things it is recited that it 
 was the intention of the above mentioned orders dated February 26, 1919, 
 and April 5, 1919, respectively, to authorize the Alien Property Custodian 
 to sell and convey thereunder, all choses in action, rights, interests and 
 benefits under agreements and rights and claims of every character and 
 description including rights to receive moneys by way of royalties or 
 otherwise as compensation for the use of patents, trade-marks, or trade- 
 names, which the Alien Property Custodian may have seized under the' 
 provisions of the "Trading with the Enemy Act" as amended, and which 
 he had from time to time determined to relate to the object and purposes 
 of said The Chemical Foundation, Inc., as expressed and defined in its 
 charter; and 
 
 WHEREAS, the Alien Property Custodian is authorized by said 
 executive order dated February 13, 1920, to sell at private sale, without 
 public or other advertisement, to said The Chemical Foundation, Inc., at 
 such place and upon such terms and conditions as to the Alien Property 
 Custodian may seem proper, all choses in action, rights, interests and 
 benefits under agreements and rights and claims of every character and 
 description which the Alien Property Custodian may seize or may have 
 seized under the provisions of the "Trading with the Enemy Act" and 
 the amendments thereto, then or thereafter enacted and which he from 
 time to time shall determine relate to the objects and purposes of the said 
 The Chemical Foundation, Inc., as expressed and defined in its charter ; and 
 
 WHEREAS, the Alien Property Custodian is also authorized by said 
 Executive Order dated February 13, 1920, in the case of sales theretofore 
 made by him of any property which he is authorized to sell by virtue of 
 said executive order dated February 13, 1920, but as to which his author- 
 ity to sell the same under the said orders of February 26, 1919, and April 
 5, 1919, may be deemed doubtful to confirm and ratify the said sales by 
 the execution and delivery of a suitable instrument of confirmation ; 
 
 NOW, THEREFORE, I, FRANCIS P. GARY AN, as Alien Property 
 Custodian, by virtue of the authority conferred upon me by said "Trading 
 with the Enemy Act," as amended, and by the executive orders, orders 
 and proclamations issued in pursuance thereof, do hereby for the purpose 
 of effectuating the true intent of the parties to said assignments confirm 
 and ratify the sale and assignment to said The Chemical Foundation, Inc., 
 of, and do hereby for valuable consideration heretofore received by me, 
 sell, assign, transfer and set over to said The Chemical Foundation, Inc., 
 all property, including (but not thereby limiting the generality of the 
 foregoing) letters patent, rights under letters patent, applications for 
 letters patent and rights thereunder, copyrights, rights under copyrights, 
 certificates of registrations thereof, the publications upon which such 
 registrations were granted, trade-marks, rights under trade-marks, 
 together with the good-will and business pertaining thereto, including all 
 profits and damages recoverable at law or in equity for past infringement 
 with respect to any and all of the foregoing, choses in action, rights, inter- 
 ests and benefits under agreements, and rights and claims of every char-
 
 59 
 
 acter and description with respect to all of the foregoing, seized by me 
 as Alien Property Custodian, or by my predecessor in such office specifi- 
 cally referred to in and assigned by said assignments, and I do hereby 
 confirm and ratify the sale and assignment of and do hereby sell, assign, 
 transfer and set over to said The Chemical Foundation, Inc., all choses 
 in action, rights, interests and benefits under agreements, and rights and 
 claims of every character and description growing out of and appurtenant 
 to the ownership of said property, including (but not thereby limiting the 
 generality of the foregoing) rights to receive moneys by way of royalties 
 or otherwise as compensation for the use of patents, copyrights and trade- 
 marks, and all right, title and interest in and to the choses in action and 
 the funds referred to in Section 10, Sub-section (f ) of the "Trading with 
 the Enemy Act" as amended, acquired by the Alien Property Custodian 
 by virtue of the seizures by which there were seized patents, copyrights, 
 or trade-marks, under which a license had theretofore been granted in 
 accordance with the provisions of Section 10, Sub-section (c) of said Act 
 as amended, all of which property I, as Alien Property Custodian, from 
 time to time have determined and do hereby determine to relate to the 
 objects and purposes *of said The Chemical Foundation, Inc., as expressed 
 and defined in its charter ; the intent and purpose of this instrument being 
 to vest in said The Chemical Foundation, Inc., every right, title, interest, 
 claim and demand, save as such as are specifically excepted in and by the 
 said assignments, acquired by the Alien Property Custodian by virtue of 
 the seizures whereby the said property was seized. 
 
 IN WITNESS WHEREOF, I have hereunto set my hand and seal of 
 office this 1st day of March, 1921. 
 
 FRANCIS P. GARVAN, 
 
 Alien Property Custodian. 
 
 APPENDIX 5. 
 PATENT CONVENTION. 
 
 Concluded February 23, 1909 ; ratification advised by the Senate April 
 15, 1909 ; ratified by the President April 20, 1909 ; ratifications exchanged 
 July 14, 1909 ; proclaimed August 1, 1909. 
 
 ARTICLES. 
 
 I. Reciprocal rights, 
 n. Time of taking effect; duration. 
 m. Ratification. 
 
 The President of the United States and His Majesty the German 
 Emperor, King of Prussia, in the name of the German Empire, led by the 
 wish to effect a full and more operative reciprocal protection of patents, 
 designs, working patterns, and models in the two countries, have decided 
 to conclude an agreement for that purpose and have appointed as their 
 Plenipotentiaries :
 
 60 
 
 The President of the United States of America, Mr. Robert Bacon, 
 Secretary of States of the United States; and 
 
 His Majesty the German Emperor, King of Prussia, His Excellency 
 Count von Bernstorff, His Ambassador Extraordinary and Plenipotentiary 
 to the United States; 
 
 Who, after having communicated each to the other their respective 
 full powers, found to be in good and due form, have agreed to the fol- 
 lowing articles: 
 
 ARTICLE I. 
 
 The provisions of the laws applicable, now existing or hereafter to 
 be enacted of either of the contracting parties, under which the non- 
 working of the patent, working pattern (Gebrauchsmuster), design or 
 model carries the invalidation or some other restrictions of the right, 
 shall only be applied to the patents, working patterns (Gebrauchsmuster), 
 designs or models enjoyed by the citizens of the other Contracting Party 
 within the limits of the restrictions imposed by the said Party upon its 
 own citizens. The working of a patent, working pattern (Gebrauchs- 
 muster), design, or model in the territory of one of the Contracting 
 Parties shall be considered as equivalent to its working in the territory 
 of the other Party. 
 
 ARTICLE II. 
 
 This agreement shall take effect from the date of its promulgation 
 and remain in force until the expiration of 12 months following the 
 notice of termination given by one of the Contracting Parties. 
 
 ARTICLE III. 
 
 The present Agreement shall be ratified and the ratifications shall be 
 exchanged at Washington as soon as possible. 
 
 In witness whereof the- respective Plenipotentiaries have executed 
 the present Agreement and affixed their seals thereunto. 
 
 Done in duplicate in the English and German languages at Wash- 
 ington this 23rd day of February, 1909. 
 
 ROBERT BACON (Seal). 
 J. BERNSTORFF (Seal).
 
 SOUTHERN BRANSH, 
 
 UNIVERSITY OF CALIFORNIA, 
 
 LIBRARY, 
 
 i OS AMBLES, CALIF/
 
 I