country has resulted in many millions of dollars of enemy interests in estates being reported to the Alien Property Custodian.

Bankers are usually in close touch with business conditions in their respective communities. They are what might properly be called "listening posts," because of their close association with the business interests of their communities. With this in mind, letters were sent to every banking institution in this country, asking their cooperation in the search for enemy money and property. Approximately 32.000 of these letters were sent out and the results justified the effort. Reports and tips as to the location of enemy property began to flow into the Alien Property Custodian's office. Bankers by the score wrote that their first knowledge of the trading with the enemy act was the letter they had received from the Alien Property Custodian's office, many of them adding that a search of their records disclosed the fact that they were holding the enemy money which should have been reported to this office. There are about 8,000 building and loan associations in this country. Having in mind their possibilities for the location of enemy property, a letter was sent to cach one of these associations. The patriotic cooperation of the National League of Building and Loan Associations was also obtained with excellent results. In addition to this, the Alien Property Custodian had the cooperation of the 2,000 organized title men of the country, their national association having furnished the list of names so that a personal letter could be sent to each one of them from this office. The title men have access to all real estate records which proved of considerable aid in turning up this particular class of enemy property.

Postmasters, as a general rule, know pretty much all that is going on in their respective communities. Because of their intimate knowledge of things in their cities or towns, it was realized that they could be made an effective force in the task of digging out property of enemy character. There are 56,000 postmasters in this country. The plan had the hearty cooperation and support of the Post Office Department, and, through its machinery, a circular letter was sent to each of these 56,000 postmasters, the result of which was that practically each and every one of them scoured the community in the search for enemy property. Much valuable information was obtained from the postmasters of the country and considerable enemy property was discovered as a result. Internal-revenue collectors and bank examiners, both National and State, also were helpful in discovering enemy money and property. The cooperation of the Treasury Department was patriotically given and proved of much assistance.

The various tax assessors of the country through the generous cooperation of the various State tax boards also heartily joined in the work of this office. The local tax assessors are in close touch, as

a rule, with affairs in their community, and much valuable information was received from them.

The Alien Property Custodian had a patriotic cooperation of the Council of National Defense through its various units that are scattered throughout the country in practically every county. Many commercial organizations at the request of this office also joined in the task of unearthing enemy property. The farm-loan banks also co-operated in a patriotic and helpful manner.

To sum up, the campaign of education was conducted in a manner which it was believed would bring the provisions of the trading with the enemy act to all persons who might possibly be affected by it. With the press of the country reaching the general public, it was believed that the intensive work among the lawyers, bankers, and business men of the country would have the effect of unearthing all money and property of enemy character, the knowledge of which was in the possession of persons who honestly desired to conform to the provisions of the law.

4. SPECIFIC INVESTIGATIONS.

A detailed statement of the investigations conducted by the New York office is set forth more fully in another part of this report. As previously stated, the field investigation conducted from the Washington office was of minor importance, though it might be well to mention the work conducted along this line at Fort Oglethorpe, Ga., and Fort Douglas, Utah. By an Executive order of February 5, citizens or subjects of an enemy or ally of enemy country interned in custody of the War Department for the duration of the war were included within the definition of the term enemy. These interned enemies and allies of enemy were held principally in prison barracks at the two forts above named. A representative of the Washington office in April and May examined each of these interned persons for the purpose of determining the property owned by them subject to sequestration, also in an effort to secure information that would lead to the location of property previously undisclosed.

5. FILES.

As a basis for all investigating work it was necessary to gather and record data from every available source. This duty was performed by the files section. From Military Intelligence, Naval Intelligence, Bureau of Investigation of the Department of Justice. Cable Censor's office, War Trade Board, Internal Revenue office, and the Department of State, the bureau received voluminous data and value assistance and cooperation. Not only has it been possible at all times to have this cooperation and assistance from the 107248-S. Doc. 435, 65-3-11

offices in Washington, but the field force of the Alien Property Custodian has in every section of the country found the offices and agents of these departments always ready and willing to cooperate. This same cordial, cooperating relationship has existed between the bureau and the British Embassy, the French High Commission, and the several foreign embassies and consulates in Washington. In turn, the files and records of this organization have been constantly at the disposal of the properly accredited representatives of the offices above named, and this reciprocal arrangement has not only resulted in a benefit to all, but has avoided a great amount of duplication of effort.

All data thus received, as well as that gathered from the reports on file in the office and through the medium of the correspondence section, have been digested and posted in a card file according to enemy subjects. This work started in the spring, and had progressed to such an extent that on the date of the signing of the armistice, 18,000 subject cards had been prepared, indexed and filed in the bureau.

A second activity of this section has been the preparation of a record containing the substance of all reports filed by corporations showing stock therein to be owned by an enemy or ally of an enemy. In more than 2,200 cases has such a record been prepared for the investigators. This record included not only the substance of the corporation report, but all information that could be gathered through the above-mentioned sources, correspondence, and from the bureau files. Thus equipped, the field investigator could more readily distinguish those cases in which an enemy interest or full ownership had been willfully concealed.

In the early summer the force in this section undertook the task of examining the copies of all radiograms passing to and from Germany and Austria from January 1, 1915, to April 6, 1917. More than 250,000 of these radiograms were thus examined and the information gathered therefrom classified and indexed in the bureau files. From this information innumerable investigations have developed with fruitful results. In many instances the first information concerning the existence of enemy interest was obtained from this source and it was thus possible to fix absolutely such interest and ownership where it had previously been denied or concealed. The enthusiastic cooperation accorded the bureau by the agencies in charge of these radiograms has added materially to the efficiency of the work and to the aggregate value of the property sequestered under the provisions of the trading-with-the-enemy act.

CHAPTER XII.

BUREAU OF TRUSTS.

FREDERICK J. HORNE, Director.

The Bureau of Trusts performs three of the principal functions of the Alien Property Custodian.

First. To prepare demands for enemy property.

Second. To receive such property in pursuance of a demand, petition, order, or decree of court, or license, and to conserve, administer, and account for such property.

Third. To distribute such property in pursuance of the provisions of the trading with the enemy act, Executive orders of the President and acts of Congress.

The bureau was originally composed of nine divisions and seven departments. During the year the number of divisions and departments was reduced by consolidating those performing similar functions, and there are now seven divisions and four departments. Divisions and departments are subdivided into sections when necessary. It is proposed during the coming year to continue the consolidation of all branches of this bureau which perform similar functions, and to eliminate all unnecessary subdivisions in order that the business of the bureau may be more efficiently transacted.

The divisions are the instrumentalities through which the bureau performs the functions of preparing demands for and receiving, holding, administering, and distributing such property.

The departments serve as clearing houses for the several divisions, and as sources of information and advice about the different kinds of property.

The divisions were created for the purpose of dealing with properties in accordance with the sources from which they were reported, such as, for example, the Division of Insular Possessions, which has jurisdiction of properties in the insular possessions and Territories of the United States; the Division of Court and Private Trusts, which has jurisdiction of properties in the hands of trustees, executors, administrators, or under the control of the courts; the Division of Accounts, which keeps all books of account; the Division of Corporation and Individual Property, which has jurisdiction of the stock of American corporations whose stock is enemy owned, and of enemy partnership

interests, and commodities, and all other properties not in the jurisdiction of the other divisions; the Division of Patents, which deals with royalties and patent rights, etc.; the Division of Neutral Countries, which has charge of properties reported by persons residing in neutral countries or in countries associated with the United States in the prosecution of the war; the Division of Insurance, which has jurisdiction of stock in American insurance companies, and over liquidations of enemy insurance companies.

The functions and methods of the several divisions and departments are described more particularly hereafter.

For convenience the word "Report" as used herein includes reports of enemy property, orders or decrees of court, petitions and licenses. The general procedure of the bureau may be stated briefly as follows:

REPORTS, COURSE TAKEN.

Reports of enemy property are received by this bureau after they have been examined and passed upon by the Bureau of Investigation for sufficiency, execution, and enemy status. A trust number is given for each enemy, and reports are then assigned to the appropriate division, according to the character of the property reported, and the source from which such report has been received.

The division chief then assigns the reports to the various referees (who are attorneys) in his division. The referees determine whether or not demands should issue for all or any part of the property reported. In making this determination, the referee applies to the facts in each trust the general policy of the custodian, and such rules as have been laid down to determine the form and substance of the demands.

If doubtful questions arise, the division chief is consulted, and if he in turn is in doubt, such questions are referred to the director of the bureau. If additional facts are required, the Bureau of Investigation is called upon, and if questions of law arise the advice of the Bureau of Law is obtained. Questions of general policy not covered by instructions and rules already laid down, are presented by the director of the bureau to the noonday conference, which is held daily by the custodian, managing director, and directors of the several bureaus, and the decision made at the noonday conference is followed by the referee.

If it is determined that the property should be demanded, the referee prepares a demand, which is submitted for approval to the chief of the division. When approved by him, the demand is certified to the alien property custodian for execution by him or by the managing director. When executed, the demand is returned to the referce (if a depositary is not required) and the referee is charged with the service of the demand, the receipt of the property demanded,