The sun., 1919-08-01
NO INDEMNITY,
WILSON DECREE
Acted on Own Responsibility,
1t Is Disclosed at Open
Hearing on Treaty.
ALL CREDIT RIGHTS LOST
American Citizens Have No
Property Redress Under
Treaty Provisions.
LII CREDIT RIGHTS LOST
Special DesputcA TO The sus.

WASHINGTON, July 31.-Open hear
ings on the peace treaty. the League
Of Nations covenant and the Franco
American alliance began to-day before
the full sitting Of the Senate Foreign
Relations Committee. The first wit
nesses to appear were Bernard Baruch
Of New York, lately financial adviser
to the American delegation to the
peace conference, and Bradley Palmer.
a Boston lawyer of prominence who
had assisted the peace commission as
a legal adviser.
The hearings were not remarkable
for any brilliant or striking disclos-
ures OF facts not heretofore quite well
known to the American public, but
two points stood out with prominence
from the rest of the dry as dust dis
cussion Of technicalities and interpre-
tations Of the often hazy language of
the peace pact.
Those points were: Tho indemnify
which Germany must pay to her late
antagonists of the Entente Alliance will
not be participated in by the United
States; commercial readjustments be-
tween citizens Of the United States and
nationals of the German Republic may
now be undertaken on a pre-war basis
and debts incurred in the pre-war period
become henceforth subject to settlement
in the same fashion and under Identical
terms as those prevailing In 1914 and
before.
Wilson Barred Indemnity.
The decision that America should not
participate in tho sharing Of Germany's
stupendous indemnity contribution was
made by President Wilson himself. Mr..
Baruch told the Senators, a fact which
created no little sensation among the
committee members And Mr.. Baruch
said that for the reason of Americas
non-participation IN the dividend OF the
German indemnity the amount which
might Justly be due the United States
out OF the war damage fund was not dis
cussed by the financial experts at Paris
The vague language of Section 2S7 oil
the peace treaty with Germany was re-
sponsible for the intrusion OF this SUD
ject at the hearing to-day. From the
language II had not been clear that there
was to be any American relinquishment
of a claim on Germany. Section 2S1
stated that the payments would be d.
yided among the allied and associated
Powers according to a proportion agreed
on in advance.
The proportion to be allotted to each
participating nation had not been de-
cided, Mr.. Baru0h said. when he left
Paris and that he had taken no interest
in this question. knowing that the United
States would not share. Then he told
the committee there was possibility
that the translation from French to Eng
lish Of Section 237 had been erroneous
and that probably 1t should have read
that the proportionate distribution should
be on a basis TO be decided later instead
OF in advance.
wilson's Authority Questioned.
Tho question of the entire right OF
President Wilson to make with appar'
entity free hand a decision that the
United States would not be participant
in the dividend of Germanys damage
fund was raised by Senator Knox (Pa,)
Indirectly. Senator Knox asked Mr.
Baruch II he remembered who made tho
decision as TO the indemnity to be PAID
the United States by the Government o
China subsequent to adjustment Of dam
ares incurred in the Boxer uprising o.
l8ss-1s00.
The next question taken up was thu
system OF disposing of the property o.
enemy aliens proposed In the peac'
treaty. Mr.. Baruch explained there haC
been two systems proposed. One knowI
as the clearing house system had beer
adopted by the Governments OF Grea
Britain and France, but this was no
acceptable 10 the United States.
BY America not adhering to the Frencl
and British plan American citizens arr
now free to undertake the collection o.
debts due them from German source,
and to pay debts owed to the former
subjects of the Kaiser. while disputed
Items Of such account may be adjusted
before a mixed commission. At thil
Iuncture Mr.. Palmer was called to thu
stand to elucidate in legal terms th'
questions before the committee.
Status Of American Creditors.
Mr.. Palmer was asked to set fortl
the exact status OF American creditor
Of German individuals, firms and cor
porations and the situation of Amer
lean property in Germany and German
owned property in the United States
He said the disposition OF German prop
erty In the United States was clearl!
left to Congress and that the American
delegates In Paris had made no attemp
to provide for the disposition OF thi
property. While every other nation Il
effect guaranteed the collection o
credits held by its nationals agains
! the former enemies and in turn guaran
teed to the Germans the collection o
| their credits from the citizens OF tn
ally nation. the United States win MAX
no such engagements.
The plan OF the United States wa
regarded, Mr.. Palmer said. as n muc
better one for the American credito
than the clearing house plan because
leaves American citizens free to pro
ceed to renew trade relations with thei
former German correspondents.
This assertion by Mr.. Palmer induce
. volley OF questions from variou
| Senators. They wanted to know II Con
gross still possessed the power to decid
that Germany property seized In tn
/ Coatt,saed on Fourth Pd0a