PART II. THE FUTURE DISPOSITON OF ENEMY PROPERTY. 1. Claims of American Citizens against Germany. 2. Amount of German Funds. 3. Patents of Germans. 4. American Property Held by Germany. 5. The Present Policy. 6. Should Each Government Pay Its Citizens? 7. The Intent of Congress in Passing the Act. 8. Senate Committee Favored Use Without Confiscation. 9. Our Historic Policy. 10. United States-Prussian Treaty. 11. Enemy Property as Security for American Claims? 12. Taxes on the Fund Imposed by Germany? 13. German Bonds to Satisfy American Claims? Those interested in the subject are watching for Congressional legislation with considerable interest, the Act providing that the property of aliens should be disposed of according to the direction of Congress after the war. The bill at present arousing the most interest is known as the Winslow Bill which provides for the return to aliens of not more than $10,000 out of each trust.* This bill has been the subject of extended hearings before the House Committee on Interstate and Foreign Commerce. Under the bill as originally drafted, even though a trust such as that arising The Winslow Bill became a law March 4, 1923. It is printed in full in the Appendix, p. 329, post. from moneys of German banks involves the property of many people, yet the total sum to be paid out of the trust is $10,000. The bill is, after all, merely a temporary solution. As was stated by Col. Miller, "That was just a dead line that was drawn by those of us who were considering the proposition." (Hearing on H. R. 13,496, p. 5.) In the event the bill becomes effective, the amount that would be paid out would not exceed $45,000,000. In the Alien Property Custodian's office, there are about 30,000 active trusts, of which over 28,000 would be disposed of by this bill, leaving about 2,000 trusts to become the subject of future litigation. The bill is therefore a step in the right direction as, under any consideration, the balance of money would be sufficient to secure all American claims. At the same time the disposal of trusts under $10,000 would alleviate the hardship visited upon the smaller investors of Germany to whom property seized in America is their sole sustenance. Peace became effective on July 2, 1921. The Treaty of Peace between the United States and Germany provides that alien property shall be held until Germany has made suitable provision for the satisfaction of American claims. The amount of such claims is somewhat a matter of guess work, but, in all probability, judged by other international arbitral awards, the sum allowed will be but a percentage of the sum claimed. Mr. Lansing once stated that 3 per cent. of the amount claimed has been a not unusual figure. The Alien Property Custodian, Mr. Miller, says that in past wars the basis of settlement was about 8 per cent. On October 4, 1922, the Secretary of State issued a circular notifying claimants to file claims by January 1, 1923. The time was later extended to January 15, and subsequently to April 8. 1. Claims of American Citizens Against Germany. The report submitted to Congress (Senate Document 419, 66th Congress, first session) showed that in March, 1921, there were some 1,253 claims to the total value of over $221,000,000. According to the statement of Hon. Wilbur J. Carr, representing the State Department before the House Committee considering the Winslow Bill, on January 15, 1923, the total number has now reached between 8,000 and 9,000. These have not yet been listed and the face value figured, but it is variously estimated that such claims might reach a total of $1,000,000,000. (Hearing on H. R. 13,496, p. 299.) The nature of these claims is somewhat surprising. We hear continually of the Lusitania claims, and yet the total amount of those does not exceed $16,000,000 for about 160 lives this on the basis of $100,000 per life, a figure which will probably be considerably reduced. For losses of life on the high seas, the claims altogether amount to about $190,000,000. |