During the latter part of May, 1918, repeated inquiries were received from the German Government through the Spanish minister requesting information as to whether measures for the liquidation of German property in the United States had as yet been taken. All those inquiries, some of which were made through the German branches of American concerns, indicated that should America liquidate German interests, retaliation would follow. Information had already been received here that Germany had already proceeded to liquidate American businesses in Germany. In the case of R. G. Dun & Co., a communication was received dated April 17 from their district manager in charge of their interests in Germany and AustriaHungary containing the following:

The business has been sold, the new firm assuming all outstanding liabilities, such as tickets, rents, clerk hire, etc. In Austria it may continue under the old style. Can not give you any particulars. Will send you the newspapers when the advertisement appears.

EXTENT OF THE JURISDICTION EXERCISED BY GERMANY.

It will be noted that while America has only taken over the property in this country belonging to residents of Germany, Germany has declared, by way of reprisal, measures of liquidation which are applicable to enterprises whose capital belongs predominantly to citizens of the United States of America wherever resident, or which are managed or controlled from the territory of the United States of America, or which were, until the outbreak of the war, managed or controlled therefrom. They have in one case, that of the International Bell Telephone Co. (Ltd.), requested the European manager of that company as follows:

We kindly request you to inform us where your company's seat is situated at this moment, and to state the names and the nationality of the members of your board of directors.

We must point out, that for in case we should not receive said particulars by return, the German commissar designed to control our business will consider your honorable company as being of the nationality of the enemy.

It will be noted, especially in this instance, that the Caisse Générale de Reports, Brussels, stated that in case this information was not furnished, the German authorities intended to take over the control of the business of the company, as being of the nationality of the enemy.

INDIVIDUAL HOLDINGS.

While, of course, it is impossible to state with accuracy the treatment accorded all cases of American property in Germany, indications are that the holdings of individual Americans have been sold and the proceeds taken by the German Government.

RESIDENTS OF NEUTRAL COUNTRIES.

One case has come to the attention of this office, that of Miss Lucy M. Muddock, now resident in Copenhagen, a British subject, indicating that her personal property, including home and all its contents, and even wearing apparel, would be sold "for the benefit of the State." Notes due to her were drawn by the German Government and paid into the Reichsbank, the amount to be withheld by the State "without payment of interest" until the end of the war.

AMERICAN OIL INTERESTS IN ROUMANIA.

A brief reference to the measures taken against the American oil interest in Roumania might be of interest. It has been reported. that Gen. Mackensen, the German military commander in Roumania, issued a decree on July 16, 1917, relating, apparently, to the sequestration or compulsory administration of American property and firms in Roumania. This decree seems to have contemplated the taking over of property and business firms in which American citizens. directly or indirectly have a controlling interest, or which were managed or controlled from American territory. This measure appears to be the first step taken against American property within enemy jurisdiction, since the first measure applied in Germany proper, is that of August 9, 1917, referring to the payment of money to the United States as referred to above. The decree of the military commander of July 16, 1917, seems to extend and apply the provisions contained in the ordinance of November 26, 1914, ordering the compulsory administration or the sequestration of enemy concerns. A later decree, issued by the military commander on March 12, 1918, obviously applies to American property in Roumania the provisions contained in the imperial chancellor's decree of March 4, 1918, directing the liquidation of American firms and merely extending the provisions of the order of July 21, 1918, which orders the liquidation of British concerns. Attention may be called to another decree of the military commander, of August 14, 1917, prohibiting and declaring void any kind of sale, including mortgage, of oil percentages (redevanus) as well as any sort of acquiring land concessions.

According to reports, the property of the Romano-American Co. was sequestered and placed under German management some time during the summer of 1917.

The interests of American oil concerns in Roumania are, of course, vitally affected by the treaty of peace of May 7, 1918, and more particularly by the so-called "petroleum agreement." It is not necessary to take up in detail the provisions of this agreement. Section 3, however, is of great significance and pertains to liquidated oil companies:

The Roumanian Government recognizes the transferences already or now in progress to the Mineral Oil Investment Co. (Ltd.), of the rights and properties of other companies compulsorily wound up. This company shall be given all the rights mentioned in paragraphs 3, 7, 9, 10, 12, and 14 of section 1, and its acquired concessions shall be continued for a period equal to that from August 27, 1916, to the end of the first year after the signing of the general peace.

It has been reported during the earlier part of this summer that the Franco-Americana and the Roumania Consolidated Oil Fields and other oil concerns were liquidated and absorbed by the Mineral Oil Investment Co. (Ltd.) (Deutsche Erdol-Industrie-Anlagen Gesellschaft m. B. h.), and it has been said that in case of liquidation of German concerns by the United States Government similar measures would be applied to the Romana-Americana.

The "petroleum agreement" in conjunction with article 20 of the treaty of peace of May 7, above referred to, stipulating that the high command of the army of occupation shall retain the right to regulate the production, utilization, transportation, and distribution of oil and oil products, gives the central powers practical control over the oil resources of Roumania, and is designed to make Germany independent of the importation of American oil.

THE GERMAN TRUSTEE FOR ENEMY PROPERTY.

The ordinance of April 19, 1917, created the trustee for enemy property (Treuhänder für des feindliche Vermögen). The functions. of this trustee are in many respects vitally different from the functions of the United States Alien Property Custodian. A brief summary of the provisions of the above ordinance may, therefore, be of interest.

The trustee for enemy property is made the central authority for keeping control of and for acting as the bookkeeper and statistician of all enemy property in Germany. He has the power to demand any information pertaining to enemy property and his consent is required for any action against such property. Claims against enemy property may be allowed by him.

Enemy property under his control falls into two classes:

First. To be deposited with him are the proceeds from enemy property under supervision, compulsory administration, or liquidation by the Federal States, and whatever objects, money, and securities are not considered necessary to carry on the business of the enemy concern. (It will be noted that the trustee has nothing to do with the supervision, compulsory administration, or liquidation of enemy concerns; that is left to the authorities appointed by the Federal States.)

Second. He is to control all debts owing to enemies which have not yet been collected. In his discretion he may require, at a month's

notice, the payment of any such debts and also the payment of interest on all such debts from April 1, 1917. This is a new provision, amending the ordinance of September 30, 1914, which specifically stated that no interest shall accrue on debts owing to enemies.

By subsequent ordinances the imperial chancellor has substituted the trustee for the authorities appointed by the Federal States as the authority which is to receive all reports concerning enemy property in Germany.

The trustee is substituted for the Imperial Bank, which up to that time was the depositary of enemy funds, as the authority with which money due, securities, proceeds from liquidations or sales of enemy property or any other payments to which enemy persons living abroad are entitled, are not to be deposited.

The imperial chancellor appointed on April 21, 1917, Privy State Councillor Heinrich Albert, who acted as imperial commissioner at the world exposition in Brussels (1910) and at St. Louis (1904) and who was, until he returned with the German ambassador, Germany's financial agent in the United States. The trustee's offices are located at Berlin W. 8 Mohrenstrasse 34/35, in the quarters of the Société Française de Banque et de Dépôts which concern is under compulsory administration.