The Appeal. [volume] (Saint Paul, Minn. ;) 1889-19??, 1915-05-29
MONEY M|xUP If
AMERICA l FIGHTS
Two Billions Owned by Aliens
Here and In Germany,
SITUATION IS COMPLICATED

@
Forty eight German Ships In American
Waters Would Have to Flee or Be
Seized This Country Would Prob
ably Give Them Chance to Get
Away and Land wh.l' They Could.
Washington.-The precise legal sta
tus of many hundreds of millions, per-
haps of billions, Of property in this
country and others would be brought
into question If the United States were
to become involved in#the war in Eu-
rope.
Vast properties in the United States
of European ownership would be liable
to confscation.
Great properties, though much less
in aggregate value, owned by Ameri-
cans in Europe would be in the same
position.
American corporations would not be
permitted, it is assumed, to pay divi-
dends on securities held by citizens of
the countries with which the United
States was at war.
The German ships now informed in
this country would be under the neces-
sity of leaving American waters at the
risk Of being captured on the high seas
or else being confiscated in the ports
where they are now held.
In all the history Of warfare there
has probably never been so complicat-
ed financial situation in information
al relationship as that which would en-
sue between the United States and
Germany if the two countries by any
chance should engage in hostilities.
Germans have long been large invest
ors in the United States, particularly
in securities of railroad and industrial
corporations. It is now pretty we'll
known that these investments were to
a considerable degree liquidated in the
last year before the war began. Dur
ing that period Germany was systemat-
ically turning its Investments into
forms most available for quick use,
fully and quietly that the world OF
business did not fully realize what was
afoot until the war haE actually bro
ken out.
Consequently it is impossible at all
accurately to appraise German hold
1ngs in this country today. 1t is be-
heved, however, that they are largest
in railroad securities, then in industri-
ais and finally in real estate and mis-
cellaneous forms Of property.
On the other hand, American proper
ty interests In Germany are larger than
is generally understood, because in re-
cent years number Of American in
dustrials have been forced to establish
plants in Germany
It was estimated that $4,000, OOO, 900
worth of various alien owned invest
ments In both countries would be in-
volved If the two countries should go
= to war. What would be their stand
ing?
This question is decidedly important
to people on both sides who have such
holdings. But it Is easier answered
than the next one. ,s
With the two countries at war un-
naturalized Germans in this country
would become, before the law, "alien
enemies" No matter how loyal to this
country or how determined that their
conduct toward and in their adopted
country should be exemplary, that
would be their legal position.
This class of people own great ag-
gregates Of property in this country,
and to involve them in any general
confagration measures would be so
farreaching In their effects that 1t il
recognized as quite impossible that any
such would be undertaken.
The declaration Of war between two
countries has the effect, under long es-
tablished international practice, of sus-
pending, but not w1ping out, debts Of
state or it's citizens to the citizens of
another state.
The reasons are manifest. In the
first place, to pay debts to foreign
state during war would be to furnish
the sinews of war to the enemy. In
the second place, if the debtor declined
to pay, there would be no chance to
enforce collection, because the debtor,
an enemy alien, would have no access
to the country's courts to enforce pay
ment.
The forty-eight German vessels in
termed in this country, appraised as
worth nearly $2O0OOO,O00, are in pc