File No. 763.72113/412
The Secretary of State to the Alien Property Custodian ( Palmer )
Sir: The Department is in receipt of your letter of November 26, 1917,1 in which you state that a banker in London, who is the owner of record of shares of stock in the United States Steel Corp., has in pursuance of the income tax law of the United States filed with the corporation a statement certifying that while he is the registered owner of the stock, the real owner is the Public Trustee of England, and that this leads you to the conclusion that the London banker was carrying the stock for a German subject and that it has now been turned over to the Trustee.
You point out that under the Trading with the Enemy Act all dividends from stock held by an enemy go to the Alien Property Custodian, and that your legal department is of the opinion that the rights of the Public Trustee of England are no greater than those of the person whose stock he holds, and that therefore the stock is still stamped with enemy character, and that the dividend should go to you as Alien Property Custodian, which position you are prepared to take unless the Department sees some objection thereto.
Without expressing an opinion as to the legal phase of the question, the Department informs you that viewed from an international standpoint, it perceives no objection to your proposed action, provided you have satisfied yourself that the stock is in fact owned by an alien enemy. It seems important that this should be clearly established in order that any unnecessary complications may be avoided.
I am [etc.]
- Not printed.↩