1 II. Agricultural Loan Agencies: (a) Atlanta, Ga., Federal Reserve Bank Building. (b) Boise, Idaho, 205 McCarthy Building. (c) Cheyenne, Wyo., 212 First National Bank Building. (d) Chicago, Ill., 9 South La Salle St. (e) Denver, Colo., 602 Ideal Building. (f) Des Moines, Iowa, Central State Bank Building. (g) Fort Worth, Tex., Burk-Burnett Building. (h) Helena, Mont., 30 West Sixth Ave. (i) Kansas City, Mo., Live Stock Exchange Building. (j) Milwaukee, Wis. (k) Minneapolis, Minn., 100 North Seventh St. (1) Oklahoma City, Okla., 526 Liberty National Bank Building. (m) Omaha, Neb., care of Federal Reserve Branch Bank. (n) Portland, Or., 411 Spalding Building. (0) Santa Fe, N. M., 201-202 Gallisteo Building. (p) St. Louis, Mo., 315 Pine St. (q) Spokane, Wash., 427 Hutton Building. 4. Publications Annual Report of the War Finance Corporation. Government Printing Office, Washington, D. C. 640 CHAPTER 59 ALIEN PROPERTY CUSTODIAN 1. Origin and Mission Under the provisions of the Trading with the Enemy Act,1 the President was authorized to appoint an Alien Property Custodian empowered to receive all the moneys and property in the United States due or belonging to an enemy or ally of an enemy, which may be paid, conveyed, transferred, assigned, or delivered to the said custodian under the provisions of the act, and to hold, administer, and account for the same under the general direction of the President and as provided in the act. The purpose was the seizure of enemy property to prevent its use in any way to aid the Germanic allied governments or people during the World War. 2. History By the terms of the act broad powers were' given to the President which he delegated to the Alien Property Custodian, Attorney General, Secretary of State, and other officials. By Executive Order of October 12, 1917, the President vested in the Alien Property Custodian executive administration of all the provisions of section 7 (a), section 7 (c), and section 7 (d) of the Trading with the Enemy Act, including all power and authority to require lists and reports, and to extend the time for filing the same, conferred upon the President by the provisions of said section 7 (a), and including the power and authority conferred upon the President by the provisions of said section 7 (c), to require the conveyance, transfer, assignment, delivery or payment to himself, at such time and. in such manner as he shall prescribe, of any money or other properties owing to or belonging to or held for, by or on account of, or on behalf of, or for the benefit of any enemy or ally of an enemy, not holding a license granted under the provisions of the Trading with the Enemy Act, which, after investigation, said Alien Property Custodian shall determine is so owing, or so belongs, or is so held. He further vested in that official the executive administration of all the provisions of section 8 (a), section 8 (b), and section 9 of the Trading with the Enemy Act, so far as said sections relate to the powers and duties of said Alien Property Custodian. By Executive Order of the 29th of the month and year aforesaid, the President vested in the Alien Property Custodian the executive administration of the provisions of section 12 of the act pertaining to the designation of a depositary or depositaries and requiring all such designated depositaries to execute and file bond and prescribing the form, amount, and security thereof. By Executive Order of January 26, 1918, the President prescribed rules and regu 1 Act Oct. 6, 1917 (40 Stat. 411 [Comp. St. 1918, Comp. St. Ann. Supp. 1919, §§ 31152a31152]), amended by Act March 28, 1918 (40 Stat. 459). 2 Trading with the Enemy Act and Amendments Thereto, Together with Proclamations, pp. 26, 27, etc. Government Printing Office, Washington. lations under section 5 of said act and under title of the Espionage Act.3 By Executive Order of February 5, 1918, such rules and regulations were amended, and further amended by Executive Order of February 26, 1918.5 6 The Knox-Porter Peace Resolution provided that property of German nationals in the hands of the Alien Property Custodian shall be held until Germany makes suitable provision for the satisfaction of claims of American citizens. against the German government arising out of the World War. The treaties of peace between the United States of America and Germany and Austria provide that: " "All property of the Imperial German government, or its successor or successors, and of all German nationals, which was, on April 6, 1917, in or has since. that date come into the possession or under control of, or has been the subject of a demand by the United States of America or of any of its officers, agents, or employees, from any source or by any agency whatsoever, and all property of the Imperial and Royal Austro-Hungarian Government, or its successor or successors, and of all Austro-Hungarian nationals which was on December 7, 1917, in or has since that date come into the possession or under control of, or has been the subject of a demand by the United States of America or any of its officers, agents, or employees, from any source or by any agency whatsoever, shall be retained by the United States of America and no disposition thereof made, except as shall have been heretofore or specifically hereafter shall be provided by law until such time as the Imperial German government and the Imperial and Royal Austro-Hungarian government, or their successor or successors, shall have, respectively, made suitable provision for the satisfaction of all claims against said governments, respectively, of all persons, wheresoever domiciled, who owe permanent allegiance to the United States of America and who have suffered through the acts of the Imperial German government, or its agents, or the Imperial and Royal Austro-Hungarian government, or its agents, since July 31, 1914, loss, damage, or injury to their persons or property, directly or indirectly, whether through the ownership of shares of stock in German, Austro-Hungarian, American, or other corporations, or in consequence of hostilities or of any operations of war, or otherwise." By the Act of March 4, 1923,8 the Trading with the Enemy Act was amended in section 9 so as to authorize the President to return an amount of property or money not to exceed in value the sum of $10,000 to individuals, partnerships, unincorporated associations, and corporations whose property was seized or demanded by the Alien Property Custodian during the existence of the war. 3 Trading with the Enemy Act and Amendments Thereto, Together with Proclamations, pp. 29-36. Government Printing Office, Washington. 4 Trading with the Enemy Act and Amendments Thereto, Together with Proclamations, pp. 36, 37. Government Printing Office, Washington. 5 Trading with the Enemy Act and Amendments Thereto, Together with Proclamations, pp. 37-42. Government Printing Office, Washington. 6 Act July 2, 1921 (42 Stat. 105). 7 Treaty of Berlin (42 Stat. 1939). 8 42 Stat. 1511. The President, by an Executive Order dated May 16, 1923, has vested in the Alien Property Custodian all the power and authority conferred upon him by the said amendment pertaining to every claim in which the amount to be paid does not exceed in money or other property the value of $10,000. About 50,000 reports of enemy property were rendered to the Alien Property Custodian, from which about 38,000 trusts or trust accounts arose. The whole fund at one time amounted to about $550,000,000. About $200,000,000 has been returned, leaving about $350,000,000 in the fund, the disposition of which rests with Congress, which may confiscate, return, or hold the property in custody. 3. Activities The Alien Property Custodian must administer property seized. (a) The property seized and demanded by the Alien Property Custodian is scattered throughout the United States and its territories, including the Philippine Islands and Hawaii, and consists of industrial plans, such as chemical and woolen mills, steamship lines, banks, land and cattle companies, salmon factories, gold and silver and other mines of metal and other miscellaneous industrial plants, and thousands of parcels of real estate, and trusts represented by securities and liquid assets. (b) The Alien Property Custodian is required by the Trading with the Enemy Act to deposit all moneys coming into his hands in the Treasury of the United States, to be invested by the Secretary of the Treasury in United States bonds or certificates of indebtedness. With respect to all other property the Alien Property Custodian has all the powers of a common-law trustee, and the further power of management and sale under the direction of the President. All moneys or properties after the end of the war will be disposed of as Congress shall direct. (c) Must consider applications for the return of property to non-enemies, neutrals, or allies, who are citizens of new countries established by the various treaties of peace, such as Poland and Czechoslavakia. (d) Must pass upon various claims of enemy subjects such as counselor or diplomatic officers, internes, and women, who by marriage lost their American, neutral, or allied citizenship. (e) The Custodian must submit claims for return of property to the Attorney General for decision of allowance or disallowance. If the claim is allowed, the property is returned. If disallowed, the claimant may bring suit in equity i the federal courts. (f) Must pass upon applications for return of property or money not to exceed in value the sum of $10,000 to individuals, partnerships, unincorporated associations, and corporations whose property was seized or demanded by the Alien Property Custodian during the existence of the war. 4. Organization The Alien Property Custodian has custody of the alien property fund, and administers and operates approximately 23,987 active trusts, representing real estate, personal property, or small active and inactive corporations in almost every state of the Union, as well as in the Philippine Islands and Hawaii. (1) Secretary to the Custodian. (2) General Counsel and Assistant. (3) Chiefs of Divisions: (a) Division of Administration.-Chief charged with responsibility for operation of the statutory requirements essential to carrying out certain provisions of the Trading with the Enemy Act. (b) Division of Corporation Management.-Attorney in Charge. He stands in the place of enemy stockholders whose stock was seized in various corporations under the Trading with the Enemy Act. Where the Custodian's shareholdings represent a majority of interest, the business is operated by the Alien Property Custodian through a board of directors selected by him. Where such holdings are a minority interest, there is not always a representative of the Custodian in the management or on the board of directors, unless the interest is sufficiently large to insure representation, and then only where the majority extends the courtesy. Sales of enemy property are authorized under section 12 of the Trading with the Enemy Act, as amended March 28, 1918, and under such amendment the President has authorized the private sale of property in the hands of the Alien Property Custodian at various times. Other sales have been made by executive order designating specific properties.10 (c) Division of Trusts.-Chief. (cl) Real Estate Section.-Chief. (c2) Patent Section.-Chief. (c3) Insurance Section.-Chief. (d) Bureau of Law.-General Counsel. 5. Procedure of Claimant The claimant of any class hereinbefore described should, as a first step, apply to the Alien Property Custodian for a blank application. After filling out such blank application, it should be forwarded, with supporting proof, to the Alien Property Custodian. Ordinarily an application for the return of property, if granted, should result in such return within about three months. 6. Publications (a) Trading with the Enemy Act, with amendments, proclamations, and executive order, obtainable from the Government Printing Office, Washington. (b) Annual Report of the Alien Property Custodian, obtainable upon appli 1 Act Oct. 6, 1917 (40 Stat. 411 [Comp. St. 1918, Comp. St. Ann. Supp. 1919, §§ 3115a31152]), amended by Act March 28, 1918 (40 Stat. 459). 9 Executive Orders No. 2813, of February 26, 1918; No. 2832, of April 2, 1918; No. 2914, of July 15, 1918; No. 2916, of July 16, 1918; No. 2949, of August 20, 1918; No. 2991, of November 12, 1918; No. 3843, of May 16, 1923. 10 Annual Report Alien Property Custodian, 1924, p. 3. |