HEARINGS

BEFORE THE

COMMITTEE ON PATENTS
UNITED STATES SENATE

SEVENTY-SEVENTH CONGRESS
SECOND SESSION

ON

S. 2303

A BILL TO PROVIDE FOR THE USE OF PATENTS IN THE
INTEREST OF NATIONAL DEFENSE OR THE PROSECU-
TION OF THE WAR, AND FOR OTHER PURPOSES

S. 2491

A BILL TO AMEND THE PATENT LAWS, TO PREVENT
SUPPRESSION OF INVENTIONS, TO PROMOTE THE
PROGRESS OF SCIENCE AND THE USEFUL
ARTS, AND FOR OTHER PURPOSES

71503

PART 8

AUGUST 4, 5, AND 12, 1942

Printed for the use of the Committee on Patents

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON: 1942

CONTENTS

WITNESSES

Testimony of—

Page

C. R. Starnes, president of the East Texas Petroleum Derivatives
Co., at Gladewater, Tex..

4484

John R. Jacobs, Jr., special attorney, Antitrust Division, Depart-
ment of Justice, Washington, D. C.....

4587

Richard J. Dearborn, technical consultant, Rubber Reserve Co.,

Washington, D. C..........

4676

Committee exhibits introduced by Creekmore Fath in Part 7:

Exhibit No. 1. Rubber meeting at O. P. C., January 12, 1942

Exhibit No. 2. Draft of recommendation to oil companies of C. R. A.

group, January 21, 1942..

4171

4174

Exhibit No. 3. Wire from R. J. Dearborn to J. Howard Marshall

of O. P. C., February 4, 1942.

4176

Exhibit No. 4. Agreement between Shell, Standard Catalytic, Stand-

ard Development, Texaco, Universal, all Delaware corporations,

Standard of Indiana, February 6, 1942

4176

Exhibit No. 5. Letter from J. Howard Marshall to R. J. Dearborn,

February 10, 1942__

4181

Exhibit No. 6. Draft of recommendations to oil companies on catalytic

oil process, February 20, 1942.

Exhibit No. 7. Draft of agreement on hydro-catalytic reforming

process and fluid cracking process, February 18, 1942.

Exhibit No. 8. Memorandum from John Leonard to Dr. Cary Wagner

on catalytic cracking, Februray 25, 1942.

Exhibit No. 9. Memorandum from John Leonard for the files con-
taining license agreement of catalytic cracking process, March 3,
1942.

Exhibit No. 10. Extract from chapter 13 of the title 32, National
Defense on Catalytic Cracking and Catalytic Reforming, March 3,
1942

Exhibit No. 11. Memorandum from R. J. Dearborn to J. Howard

Marshall including catalytic cracking process agreement, March 4,

1942; catalytic cracking process supplemental license agreement,

March 4, 1942; hydro catalytic reforming process license agree-

ment, March 4, 1942; hydro catalytic reforming process supple-

mental license agreement, March 4, 1942.

Exhibit No. 12. Wire from H. E. Sharpe to John Leonard.

Exhibit No. 13. Note from J. Howard Marshall to Thurman Arnold

including title 32, National Defense, chapter 13, March 9, 1942_ _ _.

Exhibit No. 14. Memorandum from J. Howard Marshall to John

Leonard, March 25, 1942_____

4182

4184

4190

4191

4201

4202

4213

4213

4215

Exhibit No. 15. Memorandum from Thurman Arnold to J. Howard

Marshall, March 25, 1942

4215

Exhibit No. 16. Letter from Thurman Arnold to J. Howard Marshall,

March 25, 1942.

4215

Exhibit No. 17. Memorandum from John Leonard to R. K. Davies,

March 26, 1942.

4216

Exhibit No. 18. Memorandum from John Leonard to Wright W.

Gary, April 28, 1942

4216

Exhibit No. 19. Signed copies of title 32, National Defense, chapter

13. by Deputy Petroleum Coordinator for National Defense.

Exhibit No. 20. Note from Samuel S. Allender to J. Howard Mar-

shall attaching letter to Thurman Arnold on Mashinoimport

inquiries on oil refining in Russia, August 26, 1941.

4217

4217

Exhibit No. 21. Note from J. Howard Marshall to Thurman Arnold,

August 29, 1941.

4222

Exhibit No. 22. Letter from Thurman Arnold to J. Howard Marshall

attaching letter to H. J. Halle, president of Universal Products,

September 5, 1941.......

4222

Committee exhibits introduced by Creekmore Fath in Part 7—Continued.

Exhibit No. 23. Letter from J. Howard Marshall to Samuel S. Allen-

der, September 6, 1941..

Page

Exhibit No. 24. Letter from H. K. Nieuwenhuis to J. Howard Mar-

shall containing Mashinoimport inquiries, September 26, 1941.

Exhibit No. 25. Correspondence between J. Howard Marshall, John

N. Hazard, H. J. Halle, September 1941...

4223

4223

4227

Exhibit No. 26. Letter from Frank A. Howard to J. Howard Mar-

shall attaching redraft of proposed recommendations on Mashino-

import proposal, October 14, 1941.

4229

Exhibit No. 27. Letter from H. J. Halle to J. Howard Marshall,

October 14, 1941.

4233

Exhibit No. 28. Note from J. Howard Marshall to H. J. Halle, Octo-

ber 17, 1941...

4233

Exhibit No. 29. Letter from J. Howard Marshall to Thurman Arnold,

October 21, 1941.

4233

Exhibit No. 30. Letter from Thurman Arnold to J. Howard Mar-

shall, October 23, 1941.

4233

Exhibit No. 31. Note from J. Howard Marshall to Thurman Arnold,

October 29, 1941...

4234

Exhibit No. 32. Note from Thurman Arnold to J. Howard Marshall,

October 30, 1941.

4234

Exhibit No. 33. Memorandum from Wright W. Gary to office of J.

Howard Marshall...

423

Exhibit No. 34. Wire from Frank A. Howard to J. Howard Mar-

shall..

423

Exhibit No. 35. Note from H. J. Halle to J. Howard Marshall, Novem-

ber 4, 1941..

423

Exhibit No. 36. Letter from J. Howard Marshall to International

Catalytic Oil Processes Corporation, November 26, 1941.

Exhibit No. 37. Letter from J. Howard Marshall to John M. Hazard,

March 5, 1942_ _

423

423

Exhibit No. 38. Letter from John N. Hazard to J. Howard Marshall,

March 9, 1942_

423

Exhibit No. 39. Title 32, National Defense, chapter 13, recommen-

dation No. 42.

423

Exhibit No. 40. Letter from H. K. Nieuwenhuis to Amtorg Trading
Corporation, March 25, 1942.

423

Exhibit No. 41. Note from J. Howard Marshall to International Oil
Processes Corporation, April 1, 1942---

423

Exhibit No. 42. Computation for quotations in Amtorg Trading
Corporation, April 3, 1942.

423

Exhibit No. 43. Letter from H. K. Nieuwenhuis to Amtorg Trading
Corporation, April 21, 1942_

424

Exhibit No. 44. Draft of sulfuric acid alkylation license proposal,

October 2, 1941.

424

Exhibit No. 45. Letter from R. J. Dearborn to Wright W. Gary,

October 6, 1941.-

424

Exhibit No. 46. Note from R. J. Dearborn to Wright W. Gary,

October 6, 1941-

424

Exhibit No. 47. Letter from Wright W. Gary to W. L. Allen, October

10, 1941

42-

Exhibit No. 48. Letter from R. J. Dearborn to Wright W. Gary,

October 23, 1941.

424

Exhibit No. 49. Letter from R. J. Dearborn to J. Howard Marshall,

December 10, 1941-

42

Exhibit No. 51. Agreement granting use of sulfuric acid alkylation

process, No. 3, December 10, 1941...

Exhibit No. 50. Agreement granting use of sulfuric acid alkylation

process, note, December 10, 1941.

42

42

Exhibit No. 52. Letter from Thurman Arnold to J. Howard Marshall

with title 32, National Defense, chapter 13, recommendation No. 23,

December 10, 1941-

42

Exhibit No. 53. Second draft of December 12, 1941, to grant licenses
on sulfuric acid alkylation process

42

Exhibit No. 54. Letter from R. J. Dearborn to J. Howard Marshall,

December 15, 1941.

42

Committee exhibits introduced by Creekmore Fath in Part 7-Continued.

Exhibit No. 55. Draft of December 15, 1941 (No. 1) to grant licenses

on sulfuric acid alkylation process-

Exhibit No. 56. Draft of December 15, 1941 (No. 2) to grant licenses

on use of sulfuric acid alkylation process.

Exhibit No. 57. Note from R. J. Dearborn to J. Howard Marshall

containing license agreement on sulfuric acid alkylation process,

December 29, 1941...

Page

4259

4263

4267

Exhibit No. 58. Letter from W. M. Stratford to Bruce K. Brown

with license agreement granting sulfuric acid alkylation rights,

December 29, 1941

4271

Exhibit No. 59. Memorandum from J. Howard Marshall submitting

a license on use of the sulfuric acid alkylation process for approval. 4276

Exhibit No. 60. Letter from Ralph K. Davies to R. J. Dearborn,

January 9, 1942.

Exhibit No. 61. Letter from R. J. Dearborn to Ralph K. Davies,

January 16, 1942__

Exhibit No. 62. Letter from R. J. Dearborn submitting recommenda-
tions and agreement on sulfuric acid alkylation process, January 16,
1942.

4277

4277

4278

4279

Exhibit No. 63. Agreement on use of sulfuric acid alkylation process.

Exhibit No. 64. Letter from Walter Miller to members of district No.

2, subcommittee on 100-octane aviation gasoline, February 4, 1942. 4282

Exhibit No. 65. Agreement supplemental to sulfuric acid alkylation

license agreement...

Exhibit No. 66. Letter from R. J. Dearborn to J. Howard Marshall

containing agreement supplemental to sulfuric acid alkylation

license agreement, February 20, 1942.

Exhibit No. 67. Letter from J. P. Langfitt to Wright W. Gary con-

taining agreement supplemental to sulfuric acid alkylation license

agreement between Texaco Development Corporation and the Pure

Oil Co., sulfruic acid alkylation license agreement between Texaco
Development Corporation, licensor, and the Pure Oil Co., February
24, 1942...

Exhibit No. 68. Memorandum from John Leonard to files on defense

plant licenses, March 3, 1942.

4283

4284

4286

4291

Exhibit No. 69. Letter from D. W. Wilson to J. Howard Marshall,

March 5, 1942..

4291

Exhibit No. 70. Agreement supplemental to sulfuric acid alkylation

license agreement, March 5, 1942...

4292

Exhibit No. 71. Letter from Frank Phillips to Wright W. Gary,

November 13, 1941..

4293

Exhibit No. 72. Letter from Wright W. Gary to Frank Phillips,

November 26, 1941...

4294

Exhibit No. 73. Letter from Frank Phillips to Wright W. Gary,

December 12, 1941...

4294

Exhibit No. 74. Letter from Frank Phillips to Wright W. Gary,

December 24, 1941.

4295

Exhibit No. 75. Letter from Phillips Petroleum Co. to Shell Oil Co.,

December 24, 1941...

4295

Exhibit No. 76. Note from Wright W. Gary to R. J. Dearborn,

December 31, 1941_-_-

4296

Exhibit No. 77. Memorandum from John Leonard to J. Howard

Marshall on patent litigation, March 13, 1942__

4296

Exhibit No. 78. Letter from Ralph K. Davies to Frank Phillips and

Alexander Fraser, March 16, 1942-

4297

Exhibit No. 79. Letter from Ralph K. Davies to Frank Phillips, April
14, 1942...

4299

Exhibit No. 80. Letter from Frank Phillips to Ralph K. Davies, April
29, 1942...

4300

Exhibit No. 81. Agreement between Phillips Petroleum Co. and

Champlin Refining Co., on hydrofluoric acid alkylation...

Exhibit No. 82. Agreement between Phillips Petroleum Co. and

Champlin Refining Co., on catalytic isomerization____

4300

4304

Exhibit No. 83. List of patents owned by Phillips Petroleum Co.,

February 11, 1941...

4307

Exhibit No. 84. Letter from Bruce K. Brown to Wright W. Gary,

September 22, 1941..

4326