New-York tribune., 1920-04-14
Berlin B0er][,s:;e ][,:;
Housed Against
Stock Seizure
Many Operators Fear Ruin
by Governments Action
Complying With Treaty
Terms; Trading Stopped
Opposition to Date Fixed
Many Securities Advanced
Since Jan. 10, Forcing
New Holders to Take Loss
By William c. Dreher

Special Cable to The Tribune
<copyright: 1920, New York Tribune Inc. }
BERLIN, April 13.--Scenes of un-
paralleled excitement and confusion
occurred on the Berlin Boerse yeater-
day upon the announcement of the
governments decision to confssa.e Tor
elEn securities at prices prevailing en-
January 10, when the peace treaty WIS
! declared ratified. AS most of these
securities have risen considerably,
sume operators fear they will lie
ruined through the governments de-
! cisior. which was announced n the
morning newspapers.
The announcement caused great cx-
citeme,. on the floor Of the exchange,
1aaking tire transaction of business IN
tssblc Brokers howled angrt,,, Gc-
ncnncing the Boerse committee for
negles ting to get clear Statement. Of
the governments purposes months ago.
Excited speeches were made. Str,ng
lungs which usually cried bids and Of
fers were brought effectively into play
ana bedlam reigned for several hours
When the committee saw the state of
things in the first hour it withdrew
finally decided that the Boerse session
had to continue. This caused redou-
bled tumult on the floor, with crowds
of brokers surging wildly back .\ad
forth, shouting denunciations.
Some members Of the committee
were attacked by traders, and one
highly respected bankers hat was
crushed with a we'll aimed blow.
Hundreds of brokers gathered around
the committee shouting "Put them out"
when official brokers took their seats
to fix quotations. They were prevented
by force from doing so, and we're COM
PEELED to leave their seats. Similar
scenes were enacted in an adjacent
room, where rates on foreign exchange
are quoted. Members tore up the quo
tation sheets of official brokers and
stamped on them, making it impossible
to fix exchange rates. Dealers in ex-
change were maltreated likewise. After
scenes of disorder the committee held
another sitting and decided to close
the Boerse.
1t was reported in the financial
district that the exchanges in
Frankfort and Hamburg we're also
closed: Under the peace treaty, Ger
many is required to meet a part of its
obligations to the Allies by the trans
fer of foreign securities. The excite
ment on the Berlin exchange indi-
Gated that the brokers were unaware
as to the method and particularly at
what price the government would oh
tain possession of the securities.
The action of the German govern
ment is evidently in compliance with
Section 10 of the annex to Article 29o,
which provides:
Germany will, within six months
from the coming into force Of the pres
ent treaty, deliver to each Of the Allied
or associated powers all securities, Ger
tificates, deeds or other documents of
title held by its nationals and relat-
ing to property rights or interests sit
uated in the territory OF that Allied
or associated power, including any
shares, stock, debentures, debenture
stock, or other obligations of any COM
pany incorporated in accordance with
the laws Of that power"
1t is explained further in the treaty
that "the provisions of Article POT and
this annex relating to property rights
and interests in an enemy country, and
the proceeds of liquidation thereof, ap-
ply to debts, credits and accounts"