Every evening, Wilmington daily commercial., 1919-01-04
Sale of Hun Property
a Peace Table Problem
BY Fred ric J. Haskin

w
posal of the hundreds OF millions OF dol
lars worth of German-owned property III
the United States. which has been taken
over and sold by A. Mitchell Palmer,
alien enemy property custodian, Will bo
one of the questions discussed nj the
peace table, There is at present ht''e
prospect that this property VIII be re-
turned IN any form to it's original owners
The accepted opinion seems TO be tha'
all OF the Allies will pool the enemy prop
erty in their possession, and VIII use ei'o
proceeds OF its sale to reimburse tue citi-
zens of allied countries for damage done
them hy the Germans.
Whatever is done with this property,
the most valuable part of the work oil tue
enemy property custodian has already
been accomplished. German capital ana
German influence have been e1ninateo
once and for all from the United states,
and American industry has taken mhR
stride toward the condition oi ail-aneii-
can ownership which Is SO mucn 10 pe
desired.
$3.50. O.OOO. 900 erIzEp.
German concerns to the value of $780,
600 600 have been taken over 10y the
guardian of enemy possessions, not to
mention $3.50, ,OOO, 900 worth oil stocks and
bonds in industrial corporations and an
equal sum In real estate, patents and other
| incidentals This scquestered property
has either been sold TO American citizens
whose LOYALTY has been investigated, or Is
held by the government.
"If an American corporation, the stock
of which was owned by German subjects,
| were turned back tomorrow to the control
of its former owner" says Mr.. Palmer,
| "its business would melt away, its assets
would shrink. and its former good will as a
going business would become distinct
liability The German investor would
SAVE little out Of the resulting wreck.
Foresccing disaster, the German owners
of American securities IN all lines of IN
dustrv would either dump them upon
the American market with resultant DIS
arrangement in finance ald commerce,
or conceal their ownership Dehind dunn
mics who would seek TO deceive the
American public Either result would be
unfortunate and should be avoided.
This does not imply that the United
States will boycott German trade offered
on fair basis in tho import market II
docs mean that the United States Is not
going to take again the risk OF German
control Of any of its industries.
That the former German government
NAiiFfu ttliiN Aitt Sbntt ~ bA'' Ah''
of Gerrnan-owned business interests IN
the United States is apparent IN the notes
sent to the United States government
protesting that the sale OF this property
| consciously aimed TO do lasting injury TO
German economic existence. Thus lear
OF lasting injury was well grounded, so far
az German control of United States IN
dustrv was concerned. for II is the avoved
intention Of the government to prevent
repetition of our pre-war economic situa-
| ton.
NO SECRECY IN WORK
There has been no veil Of secrecy en-
vclopinr the work of the alien property
Il, odan. Germany has been granted
| Fl information regarding laws made
and carried into effect The German gov
ernmcnt. on the contrary has refused the
United States an explanation an to the tate
Of Anerican-ouned property IN its hands,
and hintsd at retaliation which the United
States believes had been already taken.
Where enemv-owned property is to
be disposed Of. II is valued and set up at
public auction Bidders must prove un-
questioned loyalty 10 tho United States,
and are required 10 put up a sum OF
money as proof of them sincerity. Other
wise the home of factory on sale would he
ovcrr7In by curious persons who had no
intention Of entering a bid Sometimes
the highest bidder is refused the right OF
purchase after his citizenship record has
| been looked into Sometimes, too, the
sale is called of il the highest offer Is too
| small
When the enemy property Is IN the forTr
of shares in corporation, these are sold
lust rs the entire business would Dc sold.
Proceeds OF all sales are turned over 10 the
treasury and held in trust until Congress
authorizes some disposal
An exception TO the rule OF seizure OF
enemy property is the German embassy at
Washington AS each embassy or lega-
tion belongs by right of purchase TO the
government il represents, the German
embassy Is German property, but At the
reoueSt OF the State Department 1t has
not been sold, nor has any attempt been
made by the United States government TO
make anv use OF it, The Swiss minister,
whom the German government entrusted
with its diplomatic intercourse, has used
II in this work. and for time the Swiss
flag few over the residence.
U. $ INTERESTS SMALL.
American business interests in Germany
are insignificant beside the 100000, 900
of German capital invested In this coun-
try. The fifteen or twenty million United
States dollars sunk in business in Ger
many was mostly in typewriters, tcle-
phones. and exporting and importing.
| It did not, and could not, touch any of the
essential industries, for German industry
was completely and exclusively German
zed.
The strength Of the German hold on
Anne rican industry was proven by war
| deveIopments. While the United States
was still neutral, German firms having
| branches in this country mailed to Ger
MANY blue prints of our munition plants
which they had installed some small
/ mechanism. The claim that the home
! officers must be kept posted on business
! transactions could not be refuted by a
| neutral.
German interests in factories Of the
United States often held back shipments
TO the Allies. 4 typical instance was the
| ,ase Of aircraft contracts made with n
/ German controlled firm. The IN. chinery
vas delivered Just rapidly enough to
avert suspicion, and not until the delay
| had been seriously felt was the trick q s
covered.
In all Of its Actlvit es the ahen prop
crty custodian's Office has had the CO.
| operation OF the Secret Service, the De
partment Of Justice, the Military and
! Naval Intelligence Bureaus. Tips from