APPENDIX 9. MANUAL OF INSTRUCTIONS TO DEPOSITARIES. [Prepared by Depositary Section, Alien Property Custodian, Aug. 1, 1918.] FOREWORD. The purpose of this Manual is to answer the many questions that arise in connection with the duties of a depositary. The various steps have been taken up in logical order, from the time a depositary is appointed, showing what is necessary to be done to comply with the requirements of this office and how this work can be handled most efficiently. There will be special problems coming up from time to time which will require correspondence with this office, but in general, by carefully following the Manual no further instructions should be necessary. In writing, key letter, trust number, and report number, where possible, should be given, as "Trust E-1620, Report 1836." Each division and department has a key letter, and it is thus easy to distribute such mail promptly and accurately. The trust and report numbers identify the particular trust. Separate letters should be written regarding each trust, except where several trusts are under one report number. This enables mail to reach promptly those having the various trusts in charge. These instructions may be modified and will be supplemental from time to time with others, as various rulings are made. They will go out on punched sheets, which can be inserted in their proper place in the Manual. A. MITCHELL PALMER'S APPOINTMENT AS ALIEN PROPERTY CUSTODIAN BY PRESIDENT WILSON. WOODROW WILSON, President of the United States of America. To all who shall see these presents, greeting: Know ye, That reposing special trust and confidence in the Integrity and Ability of A. Mitchell Palmer, of Pennsylvania, I do appoint him Alien Property Custodian, with full power and authority to receive all money and property in the United States due or belonging to an enemy, or ally of enemy, which may be paid, conveyed, transferred, assigned, or delivered to him under the provisions of the "Act to define, regulate, and punish trading with the enemy, and for other purposes", approved October 6, 1917. In testimony whereof, I have caused the Seal of the United States to be hereunto affixed. Given under my hand in the District of Columbia, this twenty-second day of October, in the year of our Lord one thousand nine hundred and seventeen, and of the Independence of the United States of America the one hundred and forty-second. [SEAL.] WOODROW WILSON. By the President: ROBERT LANSING, J. LIONBERGER DAVIS'S APPOINTMENT AS MANAGING DIRECTOR BY A. Mitchell PALMER, ALIEN PROPERTY CUSTODIAN. ALIEN PROPERTY CUSTODIAN. To all who shall see these presents, greetings: Know ye, That reposing special trust and confidence in the Integrity and Ability of J. Lionberger Davis, of Missouri, I do appoint him Managing Director, with all power and authority, in the absence or inability of the Alien Property Custodian, to exercise the powers of the Alien Property Custodian, so far as may be lawful and as may be not inconsistent with the provisions of the Trading with the enemy Act and the orders of the President of the United States in respect thereof and regulations issued and to be issued under said Act, in the administration of the provisions of section 7 (a), section 7 (c), and section 7 (d) of said Act; of section 8 (a), section 8 (b), section 9, and section 12 of said Act, so far as said sections relate to the powers of said Alien Property Custodian, and so far as the powers of the President under said sectionshave by the President been conferred upon the Alien Property Custodian; also in such case to exercise the powers of the Alien Property Custodian in appointing and fixing the compensation of clerks, attorneys, investigators, accountants, and such other employees as he may find necessary for the due administration of said Act and of the orders of the President in respect thereof, heretofore or hereafter made; also with all power and authority at all other times to exercise any and all powers of the Alien Property Custodian, incidental to the administration of said Act, which may be lawfully delegated by the Alien Property Custodian. In testimony whereof, I have hereunto set my hand this fourteenth day of January, in the year of our Lord one thousand nine hundred and eighteen. A. MITCHELL Palmer, J. LIONBERGER DAVIS'S APPOINTMENT BY PRESIDENT WILSON TO ACT Under SecTION 7E OF THE TRADING WITH THE ENEMY ACT. WOODROW WILSON. President of the United States of America. To all who shall see these presents, greeting: Know ye, That reposing special trust and confidence in the Integrity and Ability of J. Lionberger Davis, of Missouri, I do appoint him as a person to give full acquittance and discharge for all money and property in the United States due or belonging to an enemy or ally of enemy which may be paid, conveyed, transferred, assigned, or delivered to the Alien Property Custodian under the provisions of the "Act to define, regulate, and punish trading with the enemy, and for other purposes", approved October 6, 1917, and to execute, acknowledge, and deliver any such instrument or instruments as may be necessary or proper to evidence upon the record, or otherwise, such acquittance and discharge. In testimony whereof, I have caused the Seal of the United States to be hereunto affixed. Given under my hand in the District of Columbia, this 5th day of December, in the year of our Lord one thousand nine hundred and seventeen, and of the Independence of the United States of America the one hundred and forty-second. WOODROW WILSON. By the President: [SEAL.] ROBERT LANSING, DEPOSITARIES AUTHORIZED BY THE TRADING WITH THE ENEMY ACT. Under section 12 of the "Trading with the enemy act," the use of depositaries is authorized as follows: "The President is authorized to designate as a depositary, or depositaries, of property of an enemy or ally of enemy, any bank, or banks, or trust company, or trust companies, or other suitable depositary or depositaries, located and doing business in the United States. "The Alien Property Custodian may deposit with such designated depositary or depositaries, or with the Secretary of the Treasury, any stocks, bonds, notes, time drafts, time bills of exchange, or other securities, or property (except money or checks or drafts payable on demand, which are required to be deposited with the Secretary of the Treasury) and such depositary or depositaries shall be authorized and empowered to collect any dividends or interest or income that may become due and any maturing obligations held for the account of such custodian. "Any moneys collected on said account shall be paid and deposited forthwith by said depositary or by the Alien Property Custodian into the Treasury of the United States as herein before provided. "The President shall require all such designated depositaries to execute and file bonds sufficient in his judgment to protect property on deposit, such bonds to be conditioned as he may direct." EXECUTIVE ORDER OF OCTOBER 29, 1917. The authority to designate depositaries was vested by an Executive order dated October 29, 1917, in the Alien Property Custodian. EXECUTIVE ORDER OF FEBRUARY 26, 1918. The Alien Property Custodian may appoint and clothe with necessary power and authority such agents, bailees, and attorneys in fact as he may find to be necessary or proper to carry out the provisions of the "Trading with the enemy act," and the Executive orders, rules, and regulations heretofore, hereby, or hereafter made, and prescribe the duties and fix the compensation of such agents, bailees, and attorneys in fact; and any depositary designated by the Alien Property Custodian may be appointed as such agent, bailee, or attorney in fact. And the Alien Property Custodian may require bonds of such agents, bailees, and attorneys in fact, and fix the penalty and conditions thereof. The Alien Property Custodian may pay all reasonable and proper expenses which may be incurred in or about securing possession or control of money or other property and in or about collecting dividends, interest, and other income therefrom, and in otherwise protecting and administering the same. So far as may be, all such expenses shall be paid out of, and in any event recorded as a charge against, the estate to which such money or other property belongs. The Alien Property Custodian may authorize depositaries designated by him and agents, bailees, and attorneys in fact appointed by him to deduct all expenses authorized or approved by the Alien Property Custodian, including the compensation of such depositaries, agents, bailees, and attorneys in fact, from any moneys collected by them and the payment by them to the Alien Property Custodian or into the Treasury of the United States of the net amount remaining in their hands. DEFINITION OF ENEMY. By the "Trading with the enemy act," and the President's proclamations, the last of which was of May 31, 1918, persons falling under the following classes are enemies: 1. Any person, regardless of citizenship or place of birth, who is within the boundaries of Germany, Austria-Hungary, or their allies, or within the territory actually 107248-S. Doc. 435, 65-3-37 occupied by their military or naval forces. A peaceful and law-abiding German or Austrian citizen residing in the United States is not an enemy, but an American citizen living in enemy territory is an enemy. 2. A person residing outside of the United States and doing business within the territory of enemy countries or their allies. 3. A corporation, if incorporated within the territory of enemies or their allies, or incorporated in any neutral country and doing business within the territory of enemies or their allies. 4. An official or agent of an enemy Government or any subdivision thereof. 5. All natives, citizens, or subjects of Germany or Austria-Hungary interned by the War Department. 6. All citizens or subjects of Germany or Austria-Hungary resident outside of the United States who are (a) Wives of officers, officials or agents of Germany or Austria-Hungary, wherever resident; (b) Wives of persons within the territory (including that occupied by military and naval forces) of Germany or Austria-Hungary; (c) Wives of persons resident outside of the United States and doing business within enemy territory. 7. Citizens or subjects of Germany or Austria-Hungary who are prisoners of war or who have been or shall be interned by any nation associated with the United States in the war. 8. Citizens or subjects of Germany or Austria-Hungary resident outside of the United States who since April 6, 1917, have disseminated or shall hereafter disseminate propaganda to aid any enemy nation or to injure the cause of the United States or who have assisted or who shall assist in plotting against the United States or any nation associated with the United States in the war. 9. Citizens or subjects of Germany or Austria-Hungary resident outside of the United States who are included or who shall be included in the "Enemy Trading List" published by the War Trade Board. 10. Citizens or subjects of Germany or Austria-Hungary resident outside of the United States who at any time since August 4, 1914, have been resident within enemy territory. HOW DEPOSITARIES CAN HELP. Depositaries can greatly assist the work of this office: First, by carefully noting just what classes of people are now enemies under the act, and then by notifying the Alien Property Custodian at Washington, D. C., of all property in the United States owned by these enemies and not already reported, with names of persons holding the same. SALE OF ENEMY PROPERTY. Under date of March 28, 1918, A. Mitchell Palmer, Alien Property Custodian, made the following statement: "The amendment to the urgent deficiency bill gives the Alien Property Custodian the general power of sale of all property which shall come into his possession under the provisions of the 'Trading With the Enemy Act.' "His powers in this regard under the original act were somewhat restricted and he was permitted to sell only if and when necessary to prevent waste and protect the property. These restrictions are now eliminated, and he is authorized to sell any and all enemy owned property in this country. "It will not be the policy of the Alien Property Custodian, however, to disturb the private investments of the ordinary individual German subject. The power of sale will be exercised only in cases where in the public interest it seems to be wise to absolutely divorce German capital from American industry and commerce. "In the cases of industrial plants and other businesses situated in this country, which are in effect mere American branches of similar industrial and commercial concerns in the German Empire, plans will be considered to thoroughly Americanize the industries located here. "Due notice will be given by public advertisement of the time and place of sale and full description of properties to be sold. Sales will be made only to American citizens who satisfy the Alien Property Custodian that they represent American capital exclusively and that they do not propose to purchase for the benefit, either present or prospective, of the enemy. "There may be cases where the public interest may require sales by some other method than by public auction. Each of such cases will be presented to the President for his determination and each case will be considered upon its own facts. "The Custodian realizes that in making these sales he will be obliged to consider not only the character of the purchasers in order to establish a true Americanization of the properties, but the effect also upon American markets, both industrial and financial, if large enemy holdings are quickly liquidated. He will, of course, require a fair and adequate price in order that the United States at the end of the war may be in a position to account in such manner as Congress shall direct for the actual value of the properties taken over and sold, or otherwise liquidated.” POLICY IN APPOINTING DEPOSITARIES, The policy of this office is to appoint incorporated banks and trust companies of financial standing and proven loyalty as depositaries for enemy property. APPOINTMENT. Every bank or trust company that is appointed as a depositary by this office is so advised through a letter signed by the Manager of the Depositary Section. The Alien Property Custodian feels that any institution so selected will be glad of the opportunity to render a patriotic service for which it is particularly well equipped. WHAT THE DESIGNATION COVERS. A depositary is not designated for a given territory. Where a bank or trust coinpany reports enemy property, it will ordinarily be appointed as depositary for that property, provided it meets the requirements of this office. Where enemy property is reported by one other than a bank or trust company, such "floating trusts' placed with depositaries already appointed or new ones are appointed if the number and nature of the trusts seem to justify it. DO NOT ADVERTISE. are No depositary should advertise its appointment, as it is likely to lead to the impression that such depositary has been appointed for a particular district, city, or town, and this would not be in accordance with the fact. Preference is always given to members of the Federal Reserve System. HAVE EARLY MEETING OF BOARD. Acknowledgment of the receipt of letter of appointment as depositary should be made the day received. A meeting of the board of directors, or executive committee where it has authority to act for the board, should be called at as early a date as possible, to pass resolution accepting appointinent and authorize the execution of the required bond. |