Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-12-15
SEIZURES Under
ENEMY TRADING
LAW EXPLAINED

A. Mitchell Palmer, alien property
custodian under the trading with the
enemy act, following a conference
! with the President on Oct Is, issued a
| statement correcting reports giving
| wrong impressions in regard to his
duties and purposes. The chief test
of enemy character. he says, is not to
be determined by nationality or citi-
zenship, as has been stated by many
newspaper dispatches from Washing
ton, but is one of residence or place of
business or business connections. The
statement reads as follows:
Reports have appeared in the press
! with regard to the plans and pur-
poses Of the alien property custodian
with respect to the property of aliens
residing in the United States, which
have caused unnecessary and i'll
founded alarm. This alarm has led in
some localities to heavy Withdrawals
Of postal savings and bank deposits.
Many OF the published statements con-
corning this very important matter
are so misleading as to give rise to
the fear that they may have originated
in deliberate wish to disturb and in
jure American business interests, and
not in mere mistake.
The statement most calculated to
mislead and cause uneasiness Is to the
effect that the fact as to whether any
one is an enemy or the ally of an en-
envy under the terms of the trading
with the enemy act recently passed by
congress is determined by nationality
aiki is 50
The principal test of enemy character
under the act of congress is one of
residence or place Of business or bust
ness connections, rather than nation
atty or citizenship. A subject of Ger
many or any of Germany's allies resid-
ing in this country, even though he
has made no declaration Of his inten-
ton to become a citizen, is permitted
to continue in trade and commerce and
in the possession and control of his
property while he remains in the
United States and obeys it's laws, and
he is not regarded as an enemy nor
placed in that category by the trad
ing with the enemy act.
The broad purpose of congress; as
expressed in the trading with the en-
envy act, is, first, to preserve enemy
owned property situated in the United
states from loss, and, secondly, to pre-
vent every use of it which may be hos
tile or detrimental to the United
States.
Commerce cannot, of course, be
carried on between residents of coun.
tries that are at war. In the absence
of a general law for the protection of
money and property in the United
States belonging to those who are I'm.
der legal disability there might with.
out the special action Of congress,
have been very considerable property
loss and deterioration. The property
of every person under legal disability
is In every civilized country protected
by the appointment Of trustees or
conservators whose duty 1t is to ad-
minister and care for the property
while the disability exists.
This is the duty of the alien prop.
erty custodian. He is charged by law
with the duty of protecting the prop.
erty Of all owners who are under legal
disability to act for themselves while
a state of war continues.
! The tradlng with the enemy act
authorizes in certain cases a license |
to permit enemy owned business to be |
carried on. Where such license is not
applied for or is not granted the alien |
property custodian is directed to ex. |
ercise in regard to enemy-owned prop |
erty the well-defined authority Of a |
common law trustee. Thus the prob |
able waste and loss of a great deal |
of valuable property and property |
rights which could not, while the war
continues, be conserved by the enemy |
owner is avoided, and trustee ap-
pointed and paid by the United States
is charged with the duty Of protecting
and caring for such property until the
end of the war This Is his function.
There is, of course, no thought Of the
or dissipation of the prop
erty thus held in trust. Financial
foln