New-York tribune., 1918-05-21
Break Ger1nany's
Financial Grip on
y. S., Palmer Urges
Alien Enemy Custodian
Would Divorce Teutonic
Capital From American
Industry
Especial Dispatch to The Tribune J

Especial Dispatch to The Tribune)
DETROIT, May 2O.-"I would divorce
utterly and forever all German capital
from American industry" A. Mitchell
Palmer, Alien Property Custodian, de-
clared here tonight.
Mr.. Palmer asserted there are two
classes of German investments in the
United States inspired by widely diff
ferent motives.
"In the first Glass;" he said, "are
the investments of individual German
subjects in American enterprises.
These are usually in small amounts.
But there is second class, which from
its very nature requires quite different
treatment That is the investment
which marks an outpost Of German
kultur-the investment which stands in
the trenches dug into the soil of Amer
lean industry and commerce for the
purpose of weakening American control
of American resources. 1t is the in
vestment of the great financial, in
dustrial and commercial powers in
Germany in what amount to American
branches of German business concerns.
These American branches are generally
American corporations, in which the
enemy owns the predominating interest
and, therefore, exercises full control.
Describes German Invasion
GAS we are able to view the aggrega-
tion of German capital in this country,
now that it has come under one central
control, we can piece together the pict-
ure of the German industrial aggres-
sion which has been going on in Amer
lea for the generation past. We can
see with what crafty yet plausible
processes their shrewd pioneers blazed
the way through the rich industrial
forests of America.
"They came from industrial organi-
cations fostered by the financial pow
ers of the German Empire, sometime IS
even subsidized by the government
They came to capture SO far as they
could great lines of industry and COM
merce whose control was designed to
spread the power of Germany as
against the day when it might call
to It's support in the struggle for world
conquest its industrial and financial
legions on sthis continent as other ma
tions have called to their defence the
free men of their provinces the world
around.
"In the case of nearly two hundred
corporations, running the entire gamut
of American industry, the alien prop
/ nrfVy
jority interest formerly held by Ger
man capital. AS result, l have sat
in Washington and watched these
great enemy corporations under my
management earn enormous profits
growing out of the very war conditions
tor which their owners and their own
ers' friends in Germany are directly
res pons.tle, and l face the possibility
OF Eiling up these inordinate profits
for distribution after the war to the
very persons to whom, under the cir
cunstances, it would be immoral and
unconscionable for them to go.
Would Destroy German Machine
"The government finds itself with a
large organization at it's own expense
preserving property which was placed
here originally as hostile act look
ing to the conquest of America. We
may De put IN the position OF reward
! ing that hostile act by generous re-
turns under our management of the
capital invested. Or. if the Congress
shall conclude at the termination of
the war to deny to the owners the
profits which have been made certain
by the war which Germany has thrust
upon the world, there is still a posi-
| bility that when the war is over these
properties will be restored to their
owners and Germany will be permitted d
to go on where she left off in building
great industrial and commercial
army to aid her in some future plan of
conquest. Shall we permit ig?
at seems to me- tn he an irorortort