Evening star., 1923-06-11
CANADA ASKS j. S. /
FOR SEIZED BONDS.
Claims Right to Railroad
Securities Held by Germans
Prior to War.
BY DAVID LAWRENCE.

Canada and the United States have
legal points over the question of
German property seized during the
war that the alien property custo-
dians of the two countries have yet
tackled.
A delegation of Canadian officials
and Secretary Hughes are meeting
here today to disentangle the skein.
The problem arises out of the fact
that Canadian Pacilc railway prop
erty, which was owned in part by
Germans, was confiscated by the
Canadian authorities. The securities,
however. originally issued against
the property were held by Germans
resident in the United States and
thus the securities came into the
possession of the alien property GUS
todian of the United States govern
ment. The Canadians feel that mas
much as they hold the original prop
erty they are entitled to the securi-
lies.
Would Require Compensation.
So far as the Washington govern
ment is concerned. the action of the
alien property custodian is regulat-
ed by acts of Congress and there is
no law on the statute books permit
ting the American government 10
confiscate securities or any other
class of property with the idea of
turning it over to anybody but law
full owners. Much of the alien prop
erty may be held indefinitely in trust
and dividends or other income yield
ed will be retained until Congress
finally says what shall be done.
To give up the securities desired
by the Canadians would mean con-
f1scation of property held by the
American government and the only
way that could be done would be for
the United states government to
compensate the owners some day ana
that would require authorization
from Congress as We'll as an appro-
priation.
No Precedent Is Set.
The legal experts of the American
government do not see how they can
decide otherwise. since the law of
Congress is so explicit on the subject
of holding property in trust, but the
Canadian officials have thought it best
to come here to argue the question In
person.
incidentally an erroneous impression
has gone forth that because the Cana
dian cabinet officers are dealing direct
ly with the Secretary of State OF the
United States precedent has been es-
tablished which, as one published re-
port phraSed il. ignores Great Brl-
tain" The truth is the visit of the
Canadian officials was arranged through
the British embassy as nave been al
other conferences in which Canadian
authorities and the Washington gov
ernment have participated.
Legation Would He Welcome.
The part the British embassy plays
is purely perfunctory and formal, and
the entire negotiation is usually car
ried on between the Canadian and
American governments, but until di-
rect representa- ton is specifically ar
ranged and the British government
notifies the American government 70
that effect, the arrangements VIII
continue to be made through the Brit
ish embassy In fact. one OF the ar
guments heard against Canadian rep
resentation is that it would cost the
Canadian government considerable
money to maintain a legation here.
while to all practical purposes direct
conferences can always be arranged
through the British embassy. in which
the Washington government gives
maximum attention to the business OF
the Canadian government just as II
the questions arising were to have
been submitted through a Canadian
legation.
There have been sentimental ques-
tions raised, of course. which nave
bearing on whether the Canadians
shall have a legation here, but these
naturally are matters upon whicn
the Canadians themselves ultimate
Iy must pass. though it is fact the
establishment of closer relations
with Canada through a legation
would be warmly welcomed here and
there is every reason to believe the
London government is not opposed
to the step. But the conferences
now being held are in line with
previous practice and do not imply
any slight of the home government
by the Canadians.
Copyright. 1921