U.S. Custodianship to Guard Evacuated Aliens' Property

By Associated Press.

SAN FRANCISCO, March 10.--The Federal Reserve Bank will set up a custodianship to protect the property rights of persons forced to evacuate military zones on the Pacific Coast.

Thousands of Japanese--alien and American-born--and German and Italian aliens are affected.

Details of the custodianship were received today from Secretary of the Treasury Morgenthau, by Congressman John H. Tolan, chairman of the House committee investigating defense migration.

Voluntary Action Expected.

Those who have to liquidate their property on short notice will be given protection from fraud, forced sales and unscrupulous creditors.

Secretary Morgenthau telegraphed Congressman Tolan that "properly staffed offices under the direction of the San Francisco Federal Reserve Bank will be opened at once in the local communities from which evacuees will be moved."

Morgenthau said it was expected that in most instances the evacuees will voluntarily avail themselves of the facilities.

"Government sanctions," Morgenthau said, "will be necessary to deal with creditors and others who seek unfair advantage of the evacuees."

The Federal Reserve Bank, the fiscal agent of the Treasury Department, has branches in Los Angeles, Seattle and Portland, and from these offices trained experts will go to establish facilities in smaller communities of the West. The bank will work in close liaison with the Federal Secuitry [Security] Agency, the United States Department of Agriculture, and other federal and state agencies in dealing with property in the course of liquidation.

Crop Protection Included

As to agricultural properties, an attempt will be made to arrange for the leasing or sale or, if there is need, for the growing of crops with a view to preventing their loss through inattention.

Morgenthau stated that "evacuees threatened by creditors will be encouraged to come to the representatives of the Federal Reserve Bank for advice and guidance."