The New York herald., 1922-07-30

the hands of the Alien Property Custo-
dian, or their proceeds IL liquidated, are
to be held virtually in pledge until Ger
many, Austria and Hungary respec-
lively make suitable provisions Tor the
satisfaction of these claims. When
the amount of these claims has been
determined the question OF the satisfac-
tion can be taken UP at once, Congress.
Of course, reserving Its authority TO deal
with the question in the light OF the
event I should hope that in any
case no measure of confiscation would
Be adopted until there had been fail
ure, after reasonable opportunity, to
provide for the satisfaction OF the
claims of American citizens duly ascer-
tanned"
Senator Underwood said he regretted
very much that Secretary Hughes had
taken the stand he did. Especially as 1t
is in direct contravention of the treaty
of peace that he negotiated with Ger
many and that was signed at Berlin.
This separate treaty OF peace en-
braces all of the terms of settlement
that were included in the Versailles
Treaty in regard to the property in the
hands of the Alien Property Custodian
and the settlement of American claims.
I'm the first place these two treaties,
which are one so far as this question
is concerned especially declare that the
settlement of the matter should be Oft
to Congress- The Secretary seems to
have overlooked that proposition In
suggesting that action by Congress
would embarrass the Administration.
IL must be borne in mind that All OF
the issues involved were settled by
an agreement in the German treaty
in which the German Government
agreed to requisition the property OF
her nationals in the hands OF the alien
property custodian and then to pay her
own nationals for the value OF the
property SO requistioned.
Underwood Defends Procedure.
"There Is nothing unusual about this
| procedure. The American Government
| many times during the war requisitioned
the property of private citizens, allow
| ing them merely a claim against the
| Government. Germany, in order to set
tie the claims, had requisitioned this
property and has agreed to settle with
her own citizens, under both the Yer
| sailles Treaty and the separate treaty
! of peace signed at Berlin.
iIn both of these treaties she also
agreed that our Government might ap
point its own commission to adJuolcat'
the amount Of the claims and 1t wa
/ further agreed in these treaties that
there was any surplus left over aftel
the payment of the American claim
from the property now held by tn!
American Government 1t might go q
the Reparations Commission, showing
clearly that Germany made no furthe
claims to this property, but intended Z
take care of her own nationals ant
leave the property for our Government
to reimburse our citizens. :,
.It Is. therefore, clear that. IN tn'
treaty contracts now existing, German!
agreed to an American commission
The state Department is now offerini
TO Germany to rescind the contrac
J heretofore made, reopen the whole ques
ton and appoint mixed commission
! with Germans sitting on II. to deter
mine the validity of American claims
! This appears to me to be ari-entire sur
render not only of the treaty contrac
|, that was heretofore made, and of tn
principles that we fought for in tn
: war. but also Of the rights OF the Amer
ican citizens whose lives were destroye
and whose property was taken by tn
Germans during the war"
, The Senator disclaimed any tntentio
, of embarrassing Administration negotia