Papers Relating to the Foreign Relations of the United States, 1918, Supplement 2, The World War

File No. 863.852/322

The Director of the Bureau of Sales of the Alien Property Custodian ( Guffey) to the Assistant to the Counselor for the Department of State ( Auchincloss)

New York, September 16, 1918.
[Received September 25.]

Dear Sir: Referring to Mr. Bennett’s telephone conversation on Saturday in which he requested a letter from you setting forth the position of the State Department in regard to the remainder of the funds in the hands of Phelps Bros., representing the proceeds from the sale of the various Austrian vessels, we are attaching a copy of Phelps Bros.’ statement showing all disbursements made to date.¹

They appear to have on hand $1,726,743.40 which is an unremitted balance covered by the various War Trade Board licenses issued. In addition to this amount there is a little over $1,000,000 for which no licenses have been applied for.

It is our understanding that the State Department wishes the remainder of the funds held by Phelps Bros., to be transmitted to the various owners, and we would therefore request that you advise us in writing to this effect.²

Yours very truly,

Joseph F. Guffey

1. Not printed. The total amount remitted since Dec. 31, 1917, is shown to have been $12,118,256.60, of which $730,000 was on account of the seven ships referred to in despatch of May 22 from the War Trade Board, ante, p. 456.
2. No answer to this letter found in the files.