The New York herald., 1922-08-12
UNDERWOOD FIGHTS
CLAIMS AGREEMENT
Attacks Legality of Berlin
Pact and Says Congress Will
Have to Act.
pec,a, Dispatch to THE NEW York HnaALp.

Special Dispatch to THE NEW York HnaALp
New York Herald Bureau.
Washington, ID. G.. Aug. IL.
1t was asserted at the White HOUSE
to-day that despite the opposite view
taken by some minority leaders the
Administration does not think 1t neces-
sary to obtain the specific approval OF
Congress oe the claims agreement signed
In Berlin between the United States and
Germany to determine the amount Of
claims against Germany.
Those close to the, President are con-
fident that the opposition to the agree
ment will not carry much weight ana
declare that the Administration will seek
the approval Of the Legislative branch
only with regard to appropriations
needed to carry on the work OF the
claims commission.
Secretary Of State Hughes and Pres
ident Harding, 1t was indicated. regard
the effort to balk the agreement as
futile. as they hold that the selected
method OF determining the claims OF
American citizens Is well within the
powers Of the President. It was stated
that there are more than a score Of
ton OF the Republic In which the same
course was followed in determining
claims against \ foreign country by the
United States. In case Of claims against
this Government the situation would be
quite different Is was said, and Con-
gress would have to act
Demands All-American Board.
Supporters of an all-American COM
mission to be designated by Congress
to settle American claims against Ger
many and dispose Of German property
In the hands Of this Government will
put UP a vigorous fight against the
Berlin agreement. Senator Underwood
(Dem., Ala.). the author of the bill for
an American board. declared to-day
that the agreement signed In Berlin Is
merely an executive order and that 1T
Is not and cannot be aboye the law
He will push his bill for an American
commission. he declared, and is now
preparing q statement of his views on
the legality OF the Administrations
proposal which he will submit to Sena-
tor Cummins (Rep., Ia.), who was
chairman OF the subcommittee OF the
judiciary that had hearings on the I'm
derwood bill.
The claims commission established by
the agreement with Germany does not
have authority to pass on the manner
in which the claims are to be adjusted
or what financial arrangements are
made by the two Governments. 1t has
no powers, beyond the powers Of recon-
mendation. to divert funds of German
nationals now held by this Government.
Its powers are purely to determine
what the claims actually are. Tho
State Department holds this determine
tion must precede the actual steps for
adjustment and liquidation. and the
manner In which this latter phase Is to
be carried out will be a matter for Con-
gress to determine later. president
Harding. 1t was indicated. holds the
same view. No notification OF the
agreement by the Senate. he holds. is
necessary.
Any decision by the commission
created under the agreement will not
have standing in any court Of law II
litigation should arise. Senator Under
wood conterded. He will insist that
Amexfcan claimants should be provided
for as indicated by the Versailles
treaty. Otherwise there will be complica-
tions.
Senator hodge (Rep, Mass) Is sup
porting the position OF President Har-
ding and Secretary. Hughes and thinks
1t unnecessary fortthe new agreement to
be ratified In the Senate.
"A Presidential agreement" Mr..
Underwood says. "or understanding, or
an executive order cannot divest the
people of theft legal rights In connection
with their war claims The agreement
simply puts the cart before the horse.
II leaves the whole question OF Amer-
lean claims against Germany up In the
air, and Congress. in my Judgment, will
be compelled to step in eventually with
some legal enactment to protect Amer
| lean claimants under the provisions OF
the Versailles treaty and our separate
peace treaty with Germany.
Even IL the proposed commission
acts its decisions and judgments are
not unlikely to be the subject OF future
Congressional and court action. and oven
IL the State Department does not have to
submit the agreement to the Senate for
| It's approval 1t has not heard the last
OF 30 vitality important a subject"