Evening journal., 1915-05-19
VAST DEBTS TANCLE
IF j. S. Goes TO WAR

WASHINGTON. May 19.-The pre-
else legal status of many hundreds OF
millions, perhaps of billions of prop
erty in this country, and others would
be brought into question if the United
States were to become involved in the
war in Europe.
Vast properties in the United States
of European ownership would be LA
bic to confiscation.
Great properties, though much less
in aggregate value. owned by Ameri-
cans in Europe would be in the same
posture.
American corporations would not
be permitted, it is assumed to pay
dividends on securities held by citi-
zens of the countries with which the
United States is at war.
The German ships now interned in
this country would be under the ne
cessity of leaving American waters at
the risk of being captured on the high
seas or else being confscated in the
ports where they are now held
Germans Investors Here.
Germans have long been large in
vestors in the United States. partic-
ularly in securities of railroad and
industrial corporations. It is now
pretty well known that these invest
ments we're to a considerable degree
I liquidated in the last year before the
war began. During that period Ger.
many was Systematically turning it'
! investments into forms most availabl,
for quick use. and the conversion wal
made so skillfully and quietly tina
the world of business did not full.
realize what was afoot until the wa
had actually broken out
Consequently it is impossible at al
accurately to appraise German hold
ings in this country today. II is be
lieved. however, that they are larges
} in railroad securities, then in indus
trials and finally in real estate ant
miscellaneous forms of property.
Il On the other hand, American prop
erty interests in Germany are large
than is generally understood. because
in recent years a number of American
industries have been forced to estab
!, lish plants in Germany.
D American holdings of German Sc
curities, governmental and other
have been larger. it is believed, thai
was commonly understood before tn
war. Since the war began part of tn
German loan has been offered an,
subscribed here.
II was estimated today that tw,
billions of dollars worth Of these va
rious alien-Owned investments in botl
countries would be involved if tn,
two countries should go to war.
This class of people owns great ag
gregates of property i'm this country
and to involve them in any genera
g. confiscation measures would be 81
! far-reaching in effect that il is rec
ognized as quite impossible that an,
2 such step would be undertaken.
The declaration of war between tw,
countries has the effect. under long
established international practice. o
suspending, but not wiping out. debt
of State or its citizens to the citi
zens Of another State
Confscation of debts applies in
different class of cases. Under tn
. ancient practices of international law
, not now in favor, II was customar,
for a government TO confiscate debt
owed by its people to alien enemies
That is. the American government
ii would demand list of the securitie
of an American company that wer
held in Germany and IL would direc
that these debts were now owing L
the American government, whicl
would receive the interest. dividend
3 and principal. This method of actua
c cOnfscation to the government O
debts owed to aliens is now disap
proved in universal practice.
. The German Ships Here.
The As German vessels interned il
this country, appraised as wort
nearly S500,000,000. are in a peculia
status. Interned here because tn
United States is a mutual friend. the
would suddenly be found TO be in tn
complete power of new enemy.
II is explained that the peculiar oh
. legation which the United States ha
assumed toward them raises question
not before broached-whether it woul
be violating a very special and un
= usual faith to appropriate the ship
now if this country and German
= we're at war.
The procedure which the authoritie
= believe correct would be to notify tn
vessels that they must leave Ameri
; can territorial waters, and TO Civ
them a fair chance TO do so. Afte
that they would be liable to seizur
I by American war vessels or by tn