The sun., 1918-11-07
PALMER TELLS PLAN
TO MAKE FOE PAY
Would Use Funds From Enemy
Properties Sale to Meet
Damage Claims.
THANKS BANKS FOR AID
Says Germany's Strangle Hold
on Essential U. s. Indus
tries Is Broken Forever.

A. Mitchell Palmer, Allen Property
Custodian, laid bare his plans for the
unconditional surrender OF Germany's
huge industrial and world trade organis-
alton in the United states last night In
speech at the Quarterly Club dinner In
the Metropolitan Club.
Mr. Palmer explained that he already
had In his custody between S7OO.o0O,ooo
and $500, 900, 900 Of German owned con-
Germs, and he said that this amount soon
would he svelled TO 81, 900. 100000. He
thanked the banks and bankers for the
aid they already had given the Govern.
ment In taking over this property and
called for more aid In the direction OF
financing purchasers for these vast prop
critics, many of which he said would De
placed on the auction block within sixty
days.
He admitted the vast difficulty that the
Government would have had In handling
the more than 30, 900 separate trusts IN
yolyed In the vast task OF taking over
the German owned concerns IL the banks
and trust companies had not aided, ana
he made a strong plea to the bankers TO
help convert the Teutonic industries into
100 per cent. American institutions.
He explained It was the hope OF the
Administration to make the seized Ger
man Industries pay the damages In
Cured by Americans through illegal
methods of German warfare from the
seauestered funds now in his hands.
II earnestly hope" he said, that
will be given the power to use this money
to pay the Just claims OF American citi-
gems against the German Government
due TO its illegal warfare Why shohld
Americans have to wait for years for the
payment OF these claims when SO much
enemy money Is available to pay them at
once?
whatever accounting is to be made
when the war is over for enemy prop
erty taken here during the war" Mr..
Palmer continued, $50 far as that &C
counting affects investment in American
industry, will be for the money value
thereof and not for the thing itself.
without attempting to prophesy what
may be done with the proceeds, for this
must remain to be settled by the treaty
of peace. It is safe to say that the bust
nesses that the Germans built up In
America will be lost to them forever.
NO other course would be compatible
with the safety of American institutions.
No other course would make the Amer-
can field OF industry and commerce SAFE
for democracy for the German autoc-
racy Is quite as apparent in Its economic
exploitation OF the world as In its gov
ornamental domination OF central Europe.
mo greater favor could be shown TO
Germany than by carefully managing
and conserving these enemy properties
against the time when. at the end OF the
war. upon accounting for properties OF
any kind, the former German owners
could take up the invasion OF American
industry and commerce on the very
salient which they had erected before
the war.
Demands Industrial Disarmament.
Germany must be made to under
stand that her plan has failed In the
industrial field as we'll ae In the mill
tary. Industrial disarmament must
come along with military disarmament
Autocracy In industry must fall with
the fall OF the Hohenzollern dynasty. 7
have no doubt that America will be glad
enough to compete in the worlds mar
kets with German production when that
production Is not controlled and sub
sidized by an autocratic power for the
purpose OF extending that power the
world around.
The cooperation and assistance 81
over 500 banks and trust companies
throughout this country and In its in
sular possessions have made possible the
quick and accurate handling of nearly
year OF the activities of the Custodian.
II II had not been for such cooperation
II would have been necessary for the
Custodian TO maintain an enormous Of
flee. with a clerical force running into
the thousands and storage vaults OF
great magnitude.
There is greater need for coopera
ton now. I want the bankers OF this
country to help me crush the stransla
hold which Germany. through its bank
ers and agents, has had upon most =
the essential industries OF this country
want to Americanize every German
owned industry In this country. ! want
to see every factory. every workshop
and every manufacturing plant that IL
enemy owned placed IN the hands OF 100
per cent. Americans for all time.
Tin the next few weeks we will sell
approximately $500. 100000 worth OF
enemy owned concerns in this country at
public auction. They include great
woollen mills in New Jersey, large drug.
chemical and color companies, lace
works, machinery plantsland a magnetic
company. More sales will follow. There
will be no letup in the AmericaniEation
of the German owned concerns in this
country.
Part OF world Control Plan.
Long before the war the German
Government, through It's agents in this
country, sought to control practically
every important and essential industry
This was part of its plan TO colombo.
subdue and control the world. II planted
great industrial and commercial army
on American soil. and that army had
become so large and so powerful that
when the war broke out in 1914 Ger
many believed II would be strong enough
to keep America out OF the war
Germany planted that army in every
State OF the union. and it's tentacles
stretched out across the Pacific to Ha-
wall and the Philippines. in the Atlantic
20 Porto Rico and the Virgin Islands,
down to Panama and up to Alaska,
without any part OF American soil free
from its touch
This great German industrial organ
tZation exploited our great resources
and husbanded them for it's own use and
power. II kent secret from America the
processes and patents which might some
day be used against It and built up in
dustry after industry, totalling possibly
So ,O0o,ooO,oo0 in money value and bill
ions more in potential political value
1T Is the Entertainments OF German
bank controlled business in this country
that both American bankers and Amer
lean Industrial leaders must combat
They are already intrenched here In
I the form OF German ownership of con-
, trolling shares of American corporations
American bankers have real red
oooded part to play in oustinE them
The Allen Property Custodian is en-
deavoring now TO show them the way
4 ha afYa