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March 13, 1942


Subject: Evacuee Property Program

This morning several prominent Japanese called upon the Reserve
Bank and the Treasury representatives to discuss some of the problems of
the Japanese people. The meeting was held in the Reserve Bank in the office provided for Mr* Pehle. I attended the meeting, and the following
were present:
Saburo Kido, National President,
Japanese American Citizens League
Mike M. Masaoka, National Secretary and Field Executive,
Japanese American Citizens League
Henry Tani, Executive Secretary,
Japanese American Citizens League
Yasuo lia. Abiko, Editor,
The Japanese American News
Treasury representatives
Mr. Pehle
Mr. Luxford
Mr. Lawler
Mr. Blake
Reserve Bank
Mr. Armstrong
Some very interesting questions were posed and various problems
presented. The gist of them is as follows:
The representatives discussed the disposition of different types
of personal property. Examples mentioned were beauty parlor equipment and
leases of dry cleaners. It was mentioned during the discussion that there
were 120 Japanese dry cleaning establishments in the district and that to
dump all this equipment on the market at one time would mean that very little
would be realized out of it. Another business mentioned was a poultry business upstate, which business has approximately 500,000 hens and from which
operation several hundred thousand eggs are shipped to the market daily.
One suggestion which came out during the discussion was that
management corporations might be formed for these different businesses,
with the stock of the corporations being owned t*y the Japanese interested,
undertaking through such corporations the orderly liquidation of the businesses. The Japanese representatives seemed to be impressed with that
thought and are going to see what can be done along that line.
One question in which the representatives were interested was
whether or not leases on stores or residences would be automatically cancelled because of the evacuation order. Mr. Luxford, of the Treasury

representatives, said that the Japanese people should not rely upon anything like that happening, that it would be unlikely that the evacuation
order could serve as legal grounds for termination of leases, and that
it must be remembered by the Japanese people that the landlords too are
suffering losses because of the evacuation.
One of the biggest problems seems to be that of providing storage for household furniture or transporting the furniture into the new
areas. The Japanese representatives expressed the view that their people
are not going to want to sell their furniture, the sales for which would
naturally be at sacrifice prices, and with the type of furniture that
most of them own they would receive very little for it. The representatives said that they were trying to induce the military authorities to
move the furniture for the people and, if that cannot be done, to establish some sort of warehousing for the furniture. The representatives
thought that, if facilities could not be made available for the storage
of the furniture for the duration of the war, perhaps some facilities
might be worked out for storing the furniture for a temporary period
until it could be moved to the new area. It was brought out that some
furniture had already been stored in churches and other public places,
but that after the evacuation this might have to be changed because of
having no custodian to look after the stored articles.
A serious problem confronting the Japanese people is that of
being able to get fire insurance. The insurance people have quit radting policies covering Japanese risks. The representatives of the Japanese called upon the Insurance Commissioner of the State of California
to discuss that matter with him. The Commissioner advised them that
there was no way of forcing the insurance companies to write the policies, that it was a business proposition. The representatives attending
the session seemed to see the insurance companies1 point of view. It was
brought out that there were naturally some people who would go to any extreme to do harm to property owned by Japanese and that from a business
point of view they were not the best risks. The representatives seemed
to be convinced that it wa§ not a question of boycotting the Japanese
people by the insurance companies but that it was strictly business.
It developed during these discussions that the most sensible
approach would be for the Japanese representatives to prepare memoranda
on these different subjects, turn the memoranda over to the Reserve Bank,
and they would undertake to help out in every way possible in the solution of the problems presented. As an example as to how such memoranda
might be helpful, it was pointed out that one on the insurance problem
might be presented to the military authorities and the authorities might
be in a position to offer some advice on that situation.
Probably one of the most serious problems facing the Japanese
people is in connection with the farming population. The Japanese representatives said that if their farming people did not undertake to produce
on the farms they were regarded as saboteurs, and that actually the problem with lots of them to produce is serious. The banks have about stopped
financing the Japanese farmers, and these representatives said they could

see the banks1 point of view, that so far as they know the Japanese people
will be evacuated within a short time and their chances of collecting the
moneys advanced will be endangered* Another difficulty facing the farmers
is the attitude on the part of some of the cooperatives handling farm products. The Japanese representatives said that one of these organizations,
the Associated Farmers, had actually passed a resolution that they would
not handle Japanese products• The representatives said that that was true
of other cooperatives and that up in the Northwest some of the large canning
factories had refused to handle Japanese products.
This is another matter which is to be fully covered in a memorandum
from the Japanese organisations, and it was brought out that, with the problem being presented intelligently to the Reserve Bank, the Reserve Bank in
turn would be in a position to undertake getting these organizations to take
a more realistic view of the situation.
The Japanese representatives asked whether or not the Reserve
Bank would serve as conservator in certain cases if it was determined that
the business involved could not be sold on a fair basis. This situation
was discussed at some length. It was pointed out to the Japanese representatives that the Reserve Bank could hardly be expected to be proficient
in supervising all types of business, and it was emphasized in the discussion
that oftentimes the difference between success and failure lay in the personal
interest in the particular business and that with some outsider undertaking
to operate the business that personal interest could not be there, resulting
inevitably in the failure of the business.
The Japanese representatives wanted to know whether or not the
Reserve Bank would be in a position to furnish credit information on prospective agencies whom the Japanese people might be considering to handle
their properties. Mr. Armstrong made it clear in this connection that the
Reserve Bank could hardly afford to divulge information which they considered confidential, but that he doubted that this problem would be involved very many times, that in most instances people were well known and
their reputation would be sufficient to rely upon.
The Japanese representatives said they would like to feel that
after the evacuation has been completed their people could feel free to
call upon the Reserve Bank for advice just as they are doing at this time,
and they were assured that this would be done. They wanted to know, for
instance, if some individual were considering the sale of a piece of property and had certain offers, whether he could feel free to write the Reserve Bank for its advice as to whether the proposition should be accepted
or rejected.
The suggestion was offered by the Japanese people that it would
be very helpful if the Reserve Bank would establish offices out in the
Japanese section on Bush Street. It was pointed out that there are a
number of Japanese people who hesitate to come to the downtown office,
and that they would feel much freer to talk with the Reserve Bank representatives if they had offices out in the district. It was also pointed
out in this connection that in some of the areas it was going to be necessary to have office! scattered about because the Japanese are forbidden

to travel more than five miles from their homes• This is another matter
which is going to be covered in a memorandum, and an effort will be made
to permit the Japanese to travel more freely if they are on a mission regarding the disposition of their properties*
These Japanese men who came into the Reserve Bank for this discussion seemed to be very intelligent and to be fair minded* They talked
freely and did not give any evidence of resentment. They expressed appreciation for the Governments interest in their problems and said that that
would go a long way toward getting their people in the proper frame of mind*
They expressed appreciation for what the Reserve Bank was doing, and from
all appearances Mr* Armstrong has their confidence.
During the discussion !iik§ Masaoka, the National Secretary, said
that frankly the big difficulty in getting his people to start work on their
plans for evacuation was that the Japanese people are still not convinced
that they are going to have to move^ and that they still hope that this will
not be necessary. There is talk in some sections of getting out petitions
to permit different classes to remain, such as the farmers*
These representatives were also frank in saying that the Reserve
Bank was going to get the very worst cases to handle, that the easy cases
would be handled without having to call upon the Reserve Bank for help.
One particular statement made by Masaoka impressed me that he
was trying to be fair. He said that he wanted it understood in connection
with the preparation of these memoranda on their various problems that the
picture might be overdrawn a bit, that they would naturally be biased and
could not help but make a strong plea for their position. He said that
this would have to be weighed carefully in the consideration of their
various requests. He added that they hoped they would not be accused
of being unreasonable but that human nature was the same with the Japanese
people as with the American people and that naturally they wanted to avail
themselves fully of all the facilities which were being offered them.