The Washington herald., 1920-12-26
CLAIMS
PROPERTY HERE
PUZZLE NATION.
Business Debts of Billion
Offset by $500, 900, 900
Seized in War.
USE AS FARM TRADE
CREDIT PROPOSED
Traditions of u. S. Forbid
Lack of ReparatiOns
To Owners.
by FREDERIC WILLIAM VILE.


conference with the Ger
mans at Brussels that the United
States should use sequestered Ger
man property as the basis for
credit-loan to Germany leave out Of
account American claims against
and German citizens. Those
on fle with the State De-
partment for many months, aggre-
gate roundly s1.ooo,ooo,o 900. They
are almost double the amount of
German property now held by the
Alien Property Custodian, who es-
the value of his trust at
$500, 100000.
There is excellent ground for be-
lieving that President Wilson is un-
aIterably opposed to any disposal
of the German property except its
return, under proper conditions, to
the original owners. The Ameri-
can Farm Bureau Federation's
scheme for a $1,000. 900, 900 advance
to Germany has been under review,
informally, at the White House for
some time.
Everyone Uncertain
All concerDed are uncertain how,
when and by whom American claims
against Germany are to be satis-
fed. The quandary of the would-be
beneficiaries is no greater than that
of the United States government
itself. Neither the State Depart
ment, the Treasury nor the Depart
ment of Justice is able to shed any
light or offer any solution No one
is more anxious than Francis p
Garvan. Alien Property Custodian
to have the Gordian knot unraveled
When he asks the solicitor OF the
State Department, Fred X. Nelson
for light and leading. that official
throws up his hands and declares
that no administration genius vel
has arisen capable of showing the
legal and practicable way out of the
tangle. Mr.. Garvan says he 4.
spending his third winter in Wash.
IA NOh SAAiCc lHC
indisputable legal authority to dis.
pose OF the colossal German treasure
in his keeping.
Rests With Congress.
The President. the State Depart.
ment and Federal law officers are
agreed that in Congress alone i:
vested the right to order final dis.
position of alien property. Congress:
seemingly possesses authority e
, "conflscate" Mr.. Caravans hoard oi
half a billion by earmarking il fol
satisfaction of American claim.
against Germany, or to return tn,
property intact to its various ori
down in The Hague conventions, al
likely exception is the German
ships and shipping property docks
wharves, etc.), seized at American
ports. These will almost certainly b,
retained by the United States undel
war reparation arrangements. al
though some eventual form of in
Identification is hoped for by th'
Hamburg rg-American line and Nortl
German Lloyd.
Traditions Cited.
American tradition, dating bacl
to the Revolution, as well as inter
national law on the subject lsi,
down in the Hague conventions. al
is against forcible retention of Ger
man private property sequestere,
here. We have always maintaine
the inviolability of such propert
in wartime, from the earliest hour
Of the Republic. Several of the orig
inal Thirteen Colonies seized prop
erty belonging to loyalist Britis
subjects. In those cases in which
was not finally restored to tn
original owners. the first Fedora
Congress, at George Washington
instigation, voted indemnity fund
to the dispossessed Britisher,
Authorities now point to that clas
sic precedent, which they say ha
had numerous successors, as evi
dence that the United States wouI
not be on tenable ground in con
fiscating the German property noy
sequestered.
II The consensus of opinion
Washington is that Congress wi
order every cent of it returned, ex
cept shipping property and in othe
cases where a defensible case fo
seizure can be established.
Difficulties Found.
Some of the snags in the situa
tion are due to the circumstance
that many of the claims on file q
the State Department date back {
the days of our neutrality. such a
claims for indemnities due to th
torpedoing of the Lusitania. Their
has also to be decided the questio
which claims lie against the Gel
man government and which agains
German individuals. Again, the reI
arations clause of the Versatile
treaty may not apply to us at al
IL we scrap" the pact. Presider
Harding's attorney general wi
have to wrestle with those knott
questions.
A scheme meeting with favor
the. present administration circl.
Is for the United States governmef
to indemnify all American either
with established claims. The Unite
States then, by diplomatic actio
when concluding peace with Gel
many, might demand from her LONG
term treasury obligations in fu
cover. Some s50.0o0, 900 of the Allie
Property Custodian's German trui
already has been returned to Amel
ican-born wives of German sul
jects. living or dead. like Barone.
Speck Won Sternburg. widow of
former German ambassador
Washington. The number of sue
benefciaries turned out to be SUI