The Cook County news-herald. [volume] (Grand Marais, Cook County, Minn.) 1909-current, 1915-07-15
Two Billions Owned by Aliens
Here and In Germany.
SITUATION IS COMPLICATED

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 confiscaton.
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 interned 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 confscated in the ports
where they are now held.
In all the history Of warfare there
has probably never been so complicat-
ed a financial situation in internation-
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
considerable degree liquidated in the
last year before the war began. Dur
ing that period Germany was systemat-
ically turning it's 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 had actually bro
ken out.
Consequently it is impossible at all
accurately to appraise German hold
1ngs in this country today. 1t is be-
neved, 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 a number of American in
dustrials have been forced to establish
plants in Germany.
It was estimated that 100000, 600
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.
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 it is
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 wiping out, debts of
a state or it's citizens to the citizens of
another state.
The reasons are manifest. In the
first place, to pay debts to a 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 $200,000,000, are in a Pc
culiar status. 1nterned here because
Luo Ou1L6u OLdIeS ~ n LuuLuul lrleuu,
they would suddenly be found to be
in the complete power Of new enemy.
1t is explained that the peculiar OBJ
legation which the United States has
assumed toward them raises questions
not before Observation-Disclosures it would
be violating a very special and unusual
faith to appropriate the ships now if
this country and Germany were at war.
The procedure which the authorities
believe correct would be to notify the
vessels that they must leave American
territorial waters and to give them a
fair chance to do so. After that they
would be liable to seizure by American
war vessels or by the vessels Of Ameri-
cas- allies.
Or, if the Germans preferred, they
could decline to leave, the United
States government could take possess
sion Of and formally contiscate the ves-
sells and let the whole business be set
tied after the wars end.