File No. 763.72113/781
Public Statement by the Alien Property Custodian ( Palmer), March 28, 19181
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 [Page 293] 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, cither 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.
Early announcement will be made of proposed sales and the terms and conditions thereof.
- Transmitted in a letter from the Alien Property Custodian to the Secretary of State, Nov. 13, 1918, as “issued on Mar. 28, 1918,” but not found in The Official Bulletin or the New York Times. ↩