Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-07-31
FOR ]. S.
AN OPEN QUESTION
Mr.. Baruch, as Adviser to
Peace Delegation, Before
Senate Committee.
TREATY TEXT EXPLAINED

Bernard M. Baruch, economic ad-
wiser to the American peace delega-
ton, told the Senate foreign rela-
lions committee today that he thought
the question whether the United
States should receive part of the
indemnity to be paid by Germany
still was an open one.
Senator Knox, republican. Penn
sylvania, said he understood from the
Presidents message to the Senate IN
submitting the peace treaty that the
United states was to have no part
of the indemnity. but MI. Baruch rer
piled that he thought this was only
the Presidents opinion and did not
represent a definite decision.
Asked by Senator Knox whether
the President expected to reach a de-
ing Congress. Mr.. Baruch SAID ne
The English text of the treaty says
the division of indemnity shall be in
proportions which have been deter
mined" but Mr.. Baruch pointed out
that the French text more properly
should be translated shall be deter
mined" In this Chairman Lodge
agreed.
Each Nation Responsible.
Explaining how international debts
are to be paid under the treaty. Mr..
Raruch said each nation was made
responsible for the debts OF its ma
tionals abroad and then an tnserna-
tionaI balance Was struck. sTnss pro-
far as payment went. he continued.
saying that II the amount owed In
Great Britain by German subjects ex-
ceeded the amount owed IN Germany
by British sub5ecfs. Germany must
clearing house system; whiie II the
case were the opposite, the excess
simply was credited against Ger
many's indemnity bill.
Mr.. Baruch said the arrangement
did not seem desirable" to the
American delegates, so 1t was provtd-
ed that affirmative acceptance OF 1t
was necessary to make the section
binding any nation.
If the United States declines to ac-
cept the section of the treaty, he said.
the claims of German subjects in this
country will have to, be prosecuted in
the American courts while the claims
of American citizens in Germany will
come before mixed tribunal.
Settle Private Accounts.
II.
in the treaty to prevent Americans
and Germans as individuals from
settling their private accounts.
Bradley Palmer, another financial
advisor, interrupted to say that the
property rights of American individ-
uals were clearly protected, more SO
Because Of chaotic conditions caused
by the sudden start of the war and
also for reasons kept secret by Great
Britain and France, Mr.. Palmer said
it was necessary for those nations to
their nationals and to devise the
clearing house" plan.
Payment From Alien Assets.
Mr.. Palmer said the prewar claim
of any American citizen against Ger
many could be paid by the American
government out Of alien enemy assets.
Senator Knox raised the question
of what recourse an alien enemy
would have il his property had been
sold by the alien enemy property Gus
todian, for much less than it's vaule
Mr.. Palmer said any one so wronged
trading-with- the-enemy act.
Senator Knox suggested that the
treaty should also have given an OPP
portunity to bring such claims in the
American courts.
Senator Fall, republican. New Mexi-
CO, said the treaty provisions, by
leaving German nationals no recourse
in American courts. had validated"
the acts of A. Mitchell Palmer, as
alien property custodian, and the wit
ness agreed that the treaty did wall
date the acts OF the alien enemy prop
erty custodian so far as an enemy is
concerned"
Senator Johnson. California, point
ed out that the treaty expressly pro-
vided that mo question shall be
raised" as to the disposition OF alien
enemy property. and Senator Lodge
suggested that acts of the alien enc
my property custodian thus were
placed beyond the pale" of any fu
ture legal proceedings.
The witness did not agree with
this, declaring that the section under
question would not affect the rights
Of American citizens who had held
minority interests in German prop
erty seized by the government.
The committee adjourned until to-
morrow without completing its ques-
tioning of Mr.. Baruch and Mr.. Pal
mn