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Office of Alien Property Custodian

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162: 177:, 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 government official, the Custodian had responsibility for the seizure, administration, and sometimes the sale of enemy property in the United States. Palmer was also allowed to take control of property that might hinder the war effort, including all property belonging to interned immigrants, whether they had been charged with a crime or not. Palmer's background in law and banking qualified him for the position, along with his party loyalty and intimate knowledge of political patronage. Under Palmer's leadership, the Custodian employed hundreds of officials. 154: 24: 305:'s, focused less on legality of their appointments or the fees earned by political cronies but on sales of enemy assets. 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 his indictment. However, Thomas W. Miller was caught in the act and served jail time for taking a $ 50,000 bribe. 146: 227:(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". Palmer wanted to seize the estate of the late 309:
independent of German investment, with major sales of the seized assets 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-preservation and that power has no limits other than the extent of the emergency."
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establishing the Office of the Alien Property Custodian within the Office for Emergency Management under authority of the Trading with the Enemy Act of 1917 and the First War Powers Act of December 18, 1941. On April 21, 1942 an Executive order subsequently transferred to it the functions, personnel,
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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 for the care and administration of the property and property rights of enemies and their allies in this country pending
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Palmer successfully campaigned to keep the powers to sell confiscated assets within the office of custodian. He promised to hinder Germany's industrial expansion after the war. Even when Germany was facing an inevitable defeat, Palmer insisted on continuing his crusade to make American industry
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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 awaited evaluation. Many of the enterprises in question produced materials significant to the war effort, such as medicines,
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Testifying before a U.S. Subcommittee in 1957, Townsend argued that a return of 10% of seized enemy property was a sufficient amount. "One of the most unfair aspects of a general return of all German and Japanese property is that it would donate huge windfalls to large enemy corporations,
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for gas masks. Others included mines, brewing, and 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
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to appoint an official known as the "alien property custodian" (APC) who is responsible for "receiv ... hold, administer, and account for" "all money and property in the United States due or belonging to an enemy, or ally of enemy ... ."
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said that the alien property custodian kept "the biggest general store in the country." Altogether, the United States Government confiscated close to $ 500 million of foreign assets during WWI. In 1921, the Congress while adopting the
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Assistant United States Attorney General, heading the Justice Department's Alien Property Office, an office he held until 1960. Townsend supervised the seizure of enemy property and assets that had been seized during World War II.
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Brewing and Liquor Interests and German Propaganda: Hearings Before a Subcommittee of the Committee on the Judiciary, United States Senate, Sixty-fifth Congress, Second and Third Sessions, Pursuant to S. Res.
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Executive Order No. 2729–A, October 12, 1917, Vesting Power and Authority in Designated Officers and Making Rules and Regulations under Trading with the Enemy Act and Title VII of the Act Approved June 15,
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Joint Resolution Terminating the State of War Between the Imperial German Government and the United States of America and Between the Imperial and Royal Austro-Hungarian Government and the United States of
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Guide to Federal Records in the National Archives of the United States. Compiled by Robert B. Matchette et al. Washington, DC: National Archives and Records Administration, 1995, Volume 1, 131-1
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transferred 4,500 German chemical patents valued at $ 8 million to the Chemical Foundation, paying only $ 250,000; the Chemical Foundation in its turn licensed patents to American companies.
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industrialists and their agents, many of whom were strong supporters of the militaristic and aggressive policies of the former Governments of Germany and Japan," he told Senators.
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wrote that Palmer's organization turned into "the biggest trust institution in the world, a director of vast business enterprises of varied nature, a detective agency, and a
973:"Executive Order 9788—Terminating the Office of Alien Property Custodian and Transferring Its Functions to the Attorney General | the American Presidency Project" 1024:"PLUNDER AND RESTITUTION: Findings and Recommendations of the Presidential Advisory Commission on Holocaust Assets in the United States and Staff Report: Chapter III" 972: 622:
How Seized German Millions Fight Germany; First Authoritative Account of the Many;-Sided Activities of Alien Property Custodian;-Enemy Money Is Put Into Liberty Bonds
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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
543:"The U.S. Confiscated Half a Billion Dollars in Private Property During WWI: America's home front was the site of internment, deportation, and vast property seizure" 568: 443: 362: 322: 1156: 1146: 493: 385:, indicated that Bazelon's activities as head of the Office of Alien Property warranted a Senate investigation but predicted none would be forthcoming. 1131: 955: 1141: 542: 621: 248:, as well as twenty German insurance companies, were seized. Among other significant seizures, the United States assets of the chemical company 293:. In 1925, the Office of Alien Property Custodian still controlled $ 300 million worth of alien property, with half of that amount in cash. 92:(APB) in the Claims Division of the Department of Justice. On December 9, 1941, the APB was superseded in the Justice Department by the 713: 1093: 161: 990: 109: 104:, Department of Justice. It was abolished in 1966 and most of the functions related to foreign assets control were passed to the 931: 792: 331: 231:, whose wife was stranded in Europe during the war, and succeeded in seizing the property of another brewer, George Ehret. 841: 810: 761: 81: 1023: 671: 398:, meaning that Hitler got none of the royalties from the book's sales in the United States, totaling $ 20,580 by 1945. 282: 52: 224: 100:(APC) within the Office of Emergency Management. APC was abolished in 1946 and its functions were transferred to the 842:"Franklin D. Roosevelt: "Executive Order 9095 Establishing the Office of Alien Property Custodian.," March 11, 1942" 382: 1151: 105: 354:
in 1943, the Custodian seized much of Tesla's work from his hotel room even though Tesla was an American citizen.
55:(TWEA) in order to "assume control and dispose of enemy-owned property in the United States and its possessions." 908: 476: 68: 153: 213: 1068: 51:
to property that belonged to US enemies. The office was created in 1917 by Executive Order 2729-A under the
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The size of the assets the Custodian controlled only became clear over the next year. In January 1918,
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Office of Alien Property Custodian: Annual report for the period March 11, 1942 to June 30, 1943
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Government Documents - Independent Agencies, Boards, and Commissions: Alien Property Custodian
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to serve as counsel for a textile company and another the vice-president of a shipping line.
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specified that all seized property had remained in the United States ownership; also, the
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took over as head of the Office of Alien Property, as a result of the reorganization in
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and property of the Alien Property Division of the Department of Justice. He appointed
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Among the assets held by the Alien Property Custodian in WWII was the copyright for
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Alien Property Custodian sale of the plant of A. W. Faber Pencil Co., Newark, N.J.
378: 370: 192: 871: 500:, J., concurring). See also S. Rep. No. 113, 65th Cong., 1st Sess., p. 1 (1917). 96:(APD). The APD was abolished in 1942 and its functions were passed along to the 849: 818: 777: 497: 228: 170: 1125: 36: 762:
Treatment of Alien Enemy Property in War Time and After by the United States
726: 724: 569:"Chemical Warfare: From the European Battlefield to the American Laboratory" 389: 347: 44: 1008:
Ickes, Harold L. (October 31, 1949). "Responsibility for a Strong Bench".
811:"Executive Order 9095 Establishing the Office of Alien Property Custodian" 640:
The Palmer Raids and the Red Scare: 1918-1920: Justice and Liberty for All
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In September 1918, Palmer testified at hearings held by the U.S. Senate's
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President Wilson with Mitchell Palmer, the first Alien Property Custodian
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The Secret Life of Statutes: A Century of the Trading with the Enemy Act
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Later criticism of Palmer's and his successors performance, especially
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Office of Alien Property Custodian, Department of Justice (1942–1946)
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Office of Alien Property Custodian, Department of Justice (1917–1934)
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Office of Foreign Assets Control, Treasury Department (1966–present)
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United States Court of Appeals for the District of Columbia Circuit
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The seal of the United States Office of Alien Property Custodian
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was not terminated. It stayed dormant until March 1933, when
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which abolished the office, effective June 30 of that year.
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Office of Alien Property, Department of Justice (1946–1966)
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Alien Property Division, Department of Justice (1941–1942)
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Alien Property Bureau, Department of Justice (1934–1941)
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The Great War in America: World War I and Its Aftermath
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Annual reports - Office of Alien Property, 1947-1979
267: 686:United States Senate, Committee on the Judiciary, 604: 872:"Tesla - Master of Lightning: The Missing Papers" 115: 1123: 512:. United States: National Archives and Records 365:. He remained in this post until he received a 817:. American Presidency Project. Archived from 536: 534: 532: 530: 422:Townsend seized $ 329 million in proceeds of 738:, Volume 1, Issue 2, July 2018 , pp. 151-172 1157:1966 disestablishments in the United States 1094:1922 Report of the Alien Property Custodian 1048: 1046: 1044: 747:Borchard, Edwin M. Enemy Private Property, 658:Brewing Battles: A History of American Beer 346:and pending patent applications. Following 35:was an office within the government of the 1147:Government agencies disestablished in 1966 923: 799:, April 8, 1919, accessed January 22, 2010 527: 373:on October 21, 1949, to a new seat on the 242:, the German-American Lumber Company, the 1069:"Records of the office of Alien Property" 1012:. Vol. 121, no. 18. p. 16. 1001: 653: 647: 296: 1132:1917 establishments in the United States 1041: 991:Biographical Directory of Federal Judges 808: 768:, March 1927, Volume 2, Issue 6, p. 472. 524:, University of Hawaiʻi at Mānoa Library 160: 152: 144: 110:United States Department of the Treasury 22: 1142:Government agencies established in 1917 1113:Records of the Office of Alien Property 598: 596: 594: 1124: 965: 929: 751:Vol. 18, no. 3, July 1924, pp. 523–532 749:American Journal of International Law, 628:, January 27, 1918, Section T, Page 63 611:. New York: Columbia University Press. 1007: 930:Berger, Marilyn (February 21, 1993). 602: 566: 540: 377:. Before he was seated on the bench, 332:Federal Deposit Insurance Corporation 979: 591: 560: 357:In 1947, Assistant Attorney General 793:Break German Hold on American Metal 330:, a former banker and chair of the 312: 252:were auctioned off and it lost its 82:United States Department of Justice 80:Created in October 1917 within the 13: 840:Peters, Gerhard; Woolley, John T. 541:Gross, Daniel A. (July 28, 2014). 496:, 326 U.S. 404, 414, n. 1 (1945) ( 289:invoked it to enforce a week-long 283:Trading with the Enemy Act of 1917 98:Office of Alien Property Custodian 86:Office of Alien Property Custodian 53:Trading with the Enemy Act of 1917 33:Office of Alien Property Custodian 14: 1168: 1087: 238:, the Bosch Magneto Company, the 225:United States Brewers Association 778:Alien Property Custodian Scandal 662:. New York: Algora Pub. p.  567:Gross, Daniel A. (Spring 2015). 268:Disposal of confiscated property 180: 157:Alien Property Custodian sale ad 106:Office of Foreign Assets Control 1061: 1016: 949: 909:Federal Bureau of Investigation 893: 864: 846:The American Presidency Project 833: 809:Wooley, John; Peters, Gerhard. 802: 786: 771: 754: 741: 680: 631: 615: 607:A. Mitchell Palmer: Politician 515: 503: 486: 469: 456: 430:, the German chemical cartel. 240:Hamburg-American Shipping Line 236:Orenstein & Koppel Company 140: 116:Lineage of successive agencies 1: 449: 214:Democratic National Committee 18:Former U.S. government agency 433: 317:On 11 March 1942, President 7: 438:On May 13, 1966, President 10: 1173: 58: 901:"FBI 100 - Top 10 Myths" 644:Luton: Andrews UK, 2011. 401: 383:Roosevelt administration 102:Office of Alien Property 1152:United States trade law 1028:govinfo.library.unt.edu 996:Federal Judicial Center 994:, a publication of the 736:Modern American History 654:Mittelman, Amy (2008). 603:Coben, Stanley (1963). 94:Alien Property Division 730:Coates, Benjamin A. . 381:, a key figure in the 297:Criticism and response 262:Francis Patrick Garvan 166: 158: 150: 28: 782:United States History 718:. Pegasus Books, 2020 444:Executive Order 11281 319:Franklin D. Roosevelt 287:Franklin D. Roosevelt 245:New York Evening Mail 164: 156: 148: 90:Alien Property Bureau 26: 956:Alien Office Merging 363:Executive Order 9788 323:Executive Order 9095 291:Bank Holiday of 1933 1071:. National Archives 852:on January 12, 2015 821:on January 12, 2015 815:presidency.ucsb.edu 766:Indiana Law Journal 412:Dallas Townsend Sr. 406:In 1953, President 960:The New York Times 936:The New York Times 797:The New York Times 626:The New York Times 367:recess appointment 234:The assets of the 188:The New York Times 175:A. Mitchell Palmer 167: 159: 151: 29: 962:, April 25, 1947. 494:Markham v. Cabell 440:Lyndon B. Johnson 408:Dwight Eisenhower 221:Overman Committee 43:and again during 1164: 1137:Economic warfare 1081: 1080: 1078: 1076: 1065: 1059: 1058: 1050: 1039: 1038: 1036: 1034: 1020: 1014: 1013: 1010:The New Republic 1005: 999: 986:David L. Bazelon 983: 977: 976: 969: 963: 953: 947: 946: 944: 942: 927: 921: 920: 918: 916: 897: 891: 890: 888: 886: 868: 862: 861: 859: 857: 837: 831: 830: 828: 826: 806: 800: 790: 784: 775: 769: 760:Potterf, Rex M. 758: 752: 745: 739: 728: 719: 710: 699: 684: 678: 677: 661: 651: 645: 635: 629: 619: 613: 612: 610: 600: 589: 588: 586: 584: 564: 558: 557: 555: 553: 538: 525: 519: 513: 507: 501: 490: 484: 473: 467: 460: 359:David L. Bazelon 352:New Yorker Hotel 350:'s death at the 313:World War II-era 303:Thomas W. Miller 203:for explosives, 1172: 1171: 1167: 1166: 1165: 1163: 1162: 1161: 1122: 1121: 1090: 1085: 1084: 1074: 1072: 1067: 1066: 1062: 1057:. May 28, 1966. 1052: 1051: 1042: 1032: 1030: 1022: 1021: 1017: 1006: 1002: 984: 980: 971: 970: 966: 954: 950: 940: 938: 928: 924: 914: 912: 911:. 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Truman 369:from President 315: 299: 270: 193:court of equity 183: 143: 118: 67:authorized the 61: 47:, serving as a 19: 12: 11: 5: 1170: 1160: 1159: 1154: 1149: 1144: 1139: 1134: 1120: 1119: 1110: 1101: 1096: 1089: 1088:External links 1086: 1083: 1082: 1060: 1055:New York Times 1040: 1015: 1000: 978: 964: 948: 922: 892: 863: 832: 801: 785: 770: 753: 740: 720: 700: 679: 673:978-0875865720 672: 646: 630: 614: 590: 559: 526: 514: 502: 485: 468: 454: 453: 451: 448: 435: 432: 403: 400: 314: 311: 298: 295: 269: 266: 229:Adolphus Busch 182: 179: 171:Woodrow Wilson 142: 139: 138: 137: 134: 131: 128: 125: 122: 117: 114: 108:(OFAC) in the 60: 57: 17: 9: 6: 4: 3: 2: 1169: 1158: 1155: 1153: 1150: 1148: 1145: 1143: 1140: 1138: 1135: 1133: 1130: 1129: 1127: 1118: 1114: 1111: 1109: 1105: 1102: 1100: 1097: 1095: 1092: 1091: 1070: 1064: 1056: 1049: 1047: 1045: 1029: 1025: 1019: 1011: 1004: 997: 993: 992: 987: 982: 974: 968: 961: 957: 952: 937: 933: 926: 910: 906: 902: 896: 881: 877: 873: 867: 851: 847: 843: 836: 820: 816: 812: 805: 798: 794: 789: 783: 779: 774: 767: 763: 757: 750: 744: 737: 733: 727: 725: 717: 716: 709: 707: 705: 697: 693: 690: 683: 675: 669: 665: 660: 659: 650: 643: 641: 634: 627: 623: 618: 609: 608: 599: 597: 595: 578: 574: 573:Distillations 570: 563: 548: 544: 537: 535: 533: 531: 523: 518: 511: 506: 499: 495: 492:Quoting from 489: 482: 478: 475:TWEA 40  472: 465: 459: 455: 447: 445: 441: 431: 429: 425: 420: 416: 413: 409: 399: 397: 396: 391: 386: 384: 380: 376: 372: 368: 364: 360: 355: 353: 349: 345: 341: 337: 333: 329: 324: 320: 310: 306: 304: 294: 292: 288: 284: 280: 274: 265: 263: 259: 255: 251: 247: 246: 241: 237: 232: 230: 226: 222: 217: 215: 211: 206: 202: 196: 194: 190: 189: 181:Seized assets 178: 176: 172: 163: 155: 147: 135: 132: 129: 126: 123: 120: 119: 113: 111: 107: 103: 99: 95: 91: 87: 83: 78: 75: 70: 66: 56: 54: 50: 46: 42: 38: 37:United States 34: 25: 21: 16: 1116: 1107: 1073:. 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Index


United States
World War I
World War II
custodian
Trading with the Enemy Act of 1917
president
United States Department of Justice
Office of Foreign Assets Control
United States Department of the Treasury



Woodrow Wilson
A. Mitchell Palmer
The New York Times
court of equity
glycerin
charcoal
patronage
Democratic National Committee
Overman Committee
United States Brewers Association
Adolphus Busch
Orenstein & Koppel Company
Hamburg-American Shipping Line
New York Evening Mail
Bayer
U.S. patent
Aspirin

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