Alien Property Custodian
Encyclopedia
An Alien Property Custodian was an office within the Government of the United States
during World War I
and again during World War II
, serving as a Custodian of Enemy Property
to property that belonged to US enemies.
appointed A. Mitchell Palmer, a political ally and former Congressman, Alien Property Custodian in October 1917. Palmer held the position from October 22, 1917 until March 4, 1919. A wartime agency, the Custodian had responsibility for the seizure, administration, and sometimes the sale of enemy property in the United States. Palmer's background in law and banking qualified him for the position, along with his party loyalty and intimate knowledge of political patronage.
The size of the assets the Custodian controlled only became clear over the next year. Late in 1918, Palmer reported he was managing almost 30,000 trusts with assets worth half a billion dollars. He estimated that another 9,000 trusts worth $300,000,000 dollars awaited evaluation. Many of the enterprises in question produced materials significant to the war effort, such as medicines, glycerin for explosives, charcoal for gas masks. Others ranged from mines to brewing to newspaper publishing. Palmer built a team of professionals with banking expertise as well as an investigative bureau to track down well-hidden assets. Below the top-level positions, he distributed jobs as patronage. Always thinking like a politician, he made sure his group's efforts were well publicized. For example, he appointed one of his fellow members of the Democratic National Committee to serve as counsel for a textile company and another the vice-president of a shipping line.
In September 1918, Palmer testified at hearings held by the U.S. Senate's Overman Committee
that the United States Brewers Association (USBA) and the rest of the overwhelmingly German liquor industry harbored pro-German sentiments. He stated that "German brewers of America, in association with the United States Brewers' Association" had attempted "to buy a great newspaper" and "control the government of State and Nation", had generally been "unpatriotic", and had "pro-German sympathies".
Later criticism of Palmer's performance focused less on his appointments or the fees earned by political cronies than on his sales of enemy assets. He campaigned successfully to have his powers to dispose of assets by sale increased to counter Germany's long-term plan to conquer the world by industrial expansion even after the war. There were safeguards in place, but competitive bidding meant nothing when an auction was rigged by withholding information from all participants. More revelations took years to surface and the connections between Palmer and direct profits proved too tenuous to support indictments. Even after Germany's surrender, Palmer insisted on continuing his campaign to make American industry independent of German investment, with major sales in the metals industry in the spring of 1919, for example. He offered his rationale in a speech to an audience of lawyers: "The war power is of necessity an inherent power in every sovereign nation. It is the power of self-reservation and that power has no limits other than the extent of the emergency."
issued Executive Order 9095 establishing the Office of the Alien Property Custodian as an independent agency under his direct authority. He appointed Leo Crowley
, a former banker and chair of the Federal Deposit Insurance Corporation
as APC. During the war the APC amassed a vast portfolio of enemy property including real estate, business enterprises, ships and intellectual property in the form of trademarks, copyrights, patents and pending patent applications.
On May 13, 1966, President Lyndon B. Johnson
issued Executive Order 11281 which abolished the office, effective June 30 of that yearhttp://www.archives.gov/research/guide-fed-records/groups/131.html#131.1.
Sec. 6 of the Trading with the Enemy Act, , 50 U.S.C.App., authorizes the President
to appoint an official known as the "alien property custodian," who is responsible for "receiv[ing,] ... hold[ing], administer[ing], and account[ing] for" "all money and property in the United States due or belonging to an enemy, or ally of enemy ... ." The Act was originally enacted during World War I "to permit, under careful safeguards and restrictions, certain kinds of business to be carried on" among warring nations, and to "provid[e] for the care and administration of the property and property rights of enemies and their allies in this country pending the war." Marshall v. Marshall
, 126 S.Ct. 1735 (2006) (quoting from Markham v. Cabell, 326 U.S. 404, 414, n. 1 (1945) (Burton, J., concurring)), see also S.Rep. No. 113, 65th Cong., 1st Sess., p. 1 (1917).
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
during World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
and again during World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, serving as a Custodian of Enemy Property
Custodian of Enemy Property
The Custodian of Enemy Property is an institution that handles property claims created by war. In wartime,civilian property may be left behind or taken by the occupying state. In ancient times, such property was considered war loot, and the legal right of the winner...
to property that belonged to US enemies.
World War I
President Woodrow WilsonWoodrow Wilson
Thomas Woodrow Wilson was the 28th President of the United States, from 1913 to 1921. A leader of the Progressive Movement, he served as President of Princeton University from 1902 to 1910, and then as the Governor of New Jersey from 1911 to 1913...
appointed A. Mitchell Palmer, a political ally and former Congressman, Alien Property Custodian in October 1917. Palmer held the position from October 22, 1917 until March 4, 1919. A wartime agency, the Custodian had responsibility for the seizure, administration, and sometimes the sale of enemy property in the United States. Palmer's background in law and banking qualified him for the position, along with his party loyalty and intimate knowledge of political patronage.
The size of the assets the Custodian controlled only became clear over the next year. Late in 1918, Palmer reported he was managing almost 30,000 trusts with assets worth half a billion dollars. He estimated that another 9,000 trusts worth $300,000,000 dollars awaited evaluation. Many of the enterprises in question produced materials significant to the war effort, such as medicines, glycerin for explosives, charcoal for gas masks. Others ranged from mines to brewing to newspaper publishing. Palmer built a team of professionals with banking expertise as well as an investigative bureau to track down well-hidden assets. Below the top-level positions, he distributed jobs as patronage. Always thinking like a politician, he made sure his group's efforts were well publicized. For example, he appointed one of his fellow members of the Democratic National Committee to serve as counsel for a textile company and another the vice-president of a shipping line.
In September 1918, Palmer testified at hearings held by the U.S. Senate's Overman Committee
Overman Committee
The Overman Committee was a special subcommittee of the United States Senate Committee on the Judiciary chaired by North Carolina Democrat Lee Slater Overman. Between September 1918 and June 1919, it investigated German and Bolshevik elements in the United States...
that the United States Brewers Association (USBA) and the rest of the overwhelmingly German liquor industry harbored pro-German sentiments. He stated that "German brewers of America, in association with the United States Brewers' Association" had attempted "to buy a great newspaper" and "control the government of State and Nation", had generally been "unpatriotic", and had "pro-German sympathies".
Later criticism of Palmer's performance focused less on his appointments or the fees earned by political cronies than on his sales of enemy assets. He campaigned successfully to have his powers to dispose of assets by sale increased to counter Germany's long-term plan to conquer the world by industrial expansion even after the war. There were safeguards in place, but competitive bidding meant nothing when an auction was rigged by withholding information from all participants. More revelations took years to surface and the connections between Palmer and direct profits proved too tenuous to support indictments. Even after Germany's surrender, Palmer insisted on continuing his campaign to make American industry independent of German investment, with major sales in the metals industry in the spring of 1919, for example. He offered his rationale in a speech to an audience of lawyers: "The war power is of necessity an inherent power in every sovereign nation. It is the power of self-reservation and that power has no limits other than the extent of the emergency."
World War II
On 11 March 1942, President Franklin D. RooseveltFranklin D. Roosevelt
Franklin Delano Roosevelt , also known by his initials, FDR, was the 32nd President of the United States and a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic crisis and world war...
issued Executive Order 9095 establishing the Office of the Alien Property Custodian as an independent agency under his direct authority. He appointed Leo Crowley
Leo Crowley
Leo Thomas Crowley was a member of the cabinet of President Franklin D. Roosevelt as the head of the Foreign Economic Administration. Previously he had served as Alien Property Custodian and as chief of the Federal Deposit Insurance Corporation...
, a former banker and chair of the Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
as APC. During the war the APC amassed a vast portfolio of enemy property including real estate, business enterprises, ships and intellectual property in the form of trademarks, copyrights, patents and pending patent applications.
On May 13, 1966, President Lyndon B. Johnson
Lyndon B. Johnson
Lyndon Baines Johnson , often referred to as LBJ, was the 36th President of the United States after his service as the 37th Vice President of the United States...
issued Executive Order 11281 which abolished the office, effective June 30 of that yearhttp://www.archives.gov/research/guide-fed-records/groups/131.html#131.1.
Sec. 6 of the Trading with the Enemy Act, , 50 U.S.C.App., authorizes the President
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
to appoint an official known as the "alien property custodian," who is responsible for "receiv[ing,] ... hold[ing], administer[ing], and account[ing] for" "all money and property in the United States due or belonging to an enemy, or ally of enemy ... ." The Act was originally enacted during World War I "to permit, under careful safeguards and restrictions, certain kinds of business to be carried on" among warring nations, and to "provid[e] for the care and administration of the property and property rights of enemies and their allies in this country pending the war." Marshall v. Marshall
Marshall v. Marshall
Marshall v. Marshall, 547 U.S. 293 , is a case in which the United States Supreme Court held that a federal district court had equal or concurrent jurisdiction with state probate courts over tort claims under state common law...
, 126 S.Ct. 1735 (2006) (quoting from Markham v. Cabell, 326 U.S. 404, 414, n. 1 (1945) (Burton, J., concurring)), see also S.Rep. No. 113, 65th Cong., 1st Sess., p. 1 (1917).