Economic Losses T 1939 to January on the Nikkei
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litary Intelligence the beginning of "sensitive a area" lions of war-time h observation can ry can readily be n and maneuvers; :causeof the tre- ,sexposed to sab- rea covering less cludesabout 407o nufacturing tools. rtion of war-time fthe federal gov- communications. lequipment pass- ; of men and sup- easilydiscernible EconomicLoss on the personsto lbel,for instance, r presidentof the Exclusion from the West Coast imposed very substantial economic losses t 1939 to January on the Nikkei. The complete picture of those lossesis a mosaic I was one of the of thousands of personal histories of individual families. Owners and in its encourage- operators of farms and businesseseither sold their income-producing 'e of Germany in assets under distress-sale circumstances on very short notice or at- t05 tempted, with or without government help, to place their property in standardsestab- the custody of people remaining on the Coast. The effectiveness of ether, under the these measures varied greatly in protecting evacuees'economic inter- st Coast in 1943 ests. Homes had to be sold or left without the personal attention that live and conduct owners would devote to them. Businesseslost their good will, their that they had to reputation, their customers. Professionals had their careers disrupted. asonablerelation Not only did many sufier major losses during evacuation, but their ln was found ex- economic circumstances deteriorated further while they were in camp. The years of exclusion were frequently punctuated by financial trou- rsameconclusion bles: trying to look after property without being on the scene when c its proofagainst difficulties arose; lacking a source of income to meet tax, mortgage and ritedStates. How insurance payments. Goods were lost or stolen. Income and earning slybe considered capacity were reduced to almost nothing during the long detention in g of 1942 on the relocation centers, and after the war life had to be started anew on )s were places of meager resources.War disrupted the economic well-being of thousands of Americans, but the distinct situation of the Nikkei-unable to rely on family or, often, on close friends to tend their afiairs-involved demonstrably greater hardship, anxiety and loss than other Americans LL7 ll8 rERSoNAL JUSTTcEDENTED suffered. Forty years after the events, a detailed reckoning of Nikkei of 1942, wl carried, wh Iosses and suffering is difficult, as the postwar effort to calculate these or whether Iossesand to make partial recompense for them shows. unreasonab would have the medicir relocation t The who CALCULATING AND COMPENSATING FOR LOSS could not t And, tod In 1948 Congress passed the Japanese-AmericanEvacuation Claims taken place Actr which gave persons of Japanese ancestry the right to claim from to secure e' "damage the government to or loss of real or personal property," not homes, the "a a1 compensated by insurance, which occurred as reasonable and natural a decade To add fi consequence of the evacuation or exclusion."2 The Act was amended of the Gov over the years but remained the central vehicle by which the federal value as crr government attempted to compensate for the economic lossesdue to Thus the best e exclusion and evacuation. There were many kinds of injury the Evac- The passageofr uation Claims Act made no attempt to compensate: the stigma placed many Issei and on people who fell under the evacuation and relocation orders: the One study deprivation of liberty suffered during detention in the assembly and done shortly af relocation centers; the psychological impact of evacuation and relo- Return. It focus cation; the loss of earnings or profits; physical injury or death during evacuated adull detention; and losses from resettlement outside the camps. The leg- loss of $2,5007- islative history reflects that such claims were considered too specula- lion in claims p tive.3 the approximat Twenty-six thousand, five hundred sixty-eight claims totaling $148 estimates are c million were filed under the Act; the total amount distributed by the estimate persor government was approximately $37 million.a It is difficult to estimate were not prese the extent of property losses which were not fully compensated under culated. In add the Evacuation Claims Act, for the evidence is suggestiverather than comprehensive or complete. income lossesir to labor and mr First, by the time the claims were adludicated, most of the es- ized this study sential financial records from the time of the evacuation were no longer considering am available. When the Evacuation Claims Act was set in motion in 1g48, ough analytical the Department of Justice discovered that the Internal Revenue Serv- ice had already destroyed most of the 1g3g to lg42 income tax returns evacuation, ef svnsusss-1he most comprehensive set of federal financial records.5 A second Nor was the situation better among the evacuees themselves. The Effects of the I japanese American Citizens League emphasized this problem in tes- fornia," relies , tifuing in favor of amending the Evacuation Claims Act in lgb4: in analyzing thr It was the exception and not the rule when minute and detailed points out that records and documents were retained. In the stress and tension were five years ECONOMICLOSS I19 :ailed reckoning of Nikkei of 1942, when one could only take to camp what could be hand carried, rr effort to calculate these when one did not know how long he would be detained or whether he would ever be allowed hem shows. to return, it would be unreasonable to expect that emotion-charged men and women would have chosen to pack books and records instead ofthe food, the medicines, and the clothing which they took with them to war relocation centers. FOR LOSS The whole community was moved, and so books and records could not be left with neighbors or even with friends. And, today 12 years later, with all the great changes that have rrican Evacuation Claims taken place particularly on the west coast, it is almost impossible y the right to claim from to secure even remotely accurate appraisals and evaluations of the r personalproperty," not homes, the businesses, the farms and the properties of more than "a reasonableand natural a decade ago, a decade ofwar and upheaval. "2 To add further difficulties, The Act was amended under Federal and State codes, most of the Government records of 1942-which might have been of icle by which the federal value as cross-references-have been destroyed pursuant to law.6 e economiclosses due to Thus the best evidence of economic losses no longer existed by 1954. kinds of injury the Evac- The passage of another twenty-eight years, coupled with the deaths :nsate:the stigma placed of many Issei and witnesses, has only added to the difficulty. rd relocation orders; the One study of property and income losses due to evacuation was :ion in the assembly and done shortly after World War II, Broom and Riemer's Remaoal and of evacuation and relo- Return. It focused on Los Angeles and the authors estimated that each rl injury or death during evacuated adult had a median property loss of and an income ide the camps. The leg- $1,000 loss of would have resulted in approximately consideredtoo specula- $2,5007-which $77 mil- lion in claims payments under the Evacuation Claims Act, rather than the approximately $37 million actually paid. The Broom and Riemer :ight claims totaling $I48 estimates are conservative. Replacement nount distributed by the costs of 1941 were used to estimate personal property It is difficult to estimate losses. Estimates of real property losses were not presented fully compensatedunder separately and it is not clear how they were cal- culated. is suggestiverather than In addition, Broom and Riemer did not distinguish between income losses imputable to property and that part of income imputable dicated, most of the es- to labor and management components.s In 1954 the JACL character- ,zacuationwere no longer ized this study as authoritative to the Congressional subcommittee asset in motion in 1948. considering amendments to the Acts and it is certainly the most thor- , Internal Revenue Serv- ough analytical work that is even roughly contemporaneous with the 1942income tax returns evacuation. "The :deral financial records.5 A second suggestive study by Lon Hatamiya, Economic rcueesthemselves. The Effects of the Second World War Upon Japanese Americans in Cali zed this problem in tes- fornia," relies on Broom and Reimer's work but develops other data )laimsAct in 1954: in analyzing the income of the ethnic Japanese in California. Hatamiya ten minute and detailed points out that Broom was already dealing with recollections which n the stressand tension were ffve years old and that the study was limited to Los Angeles, but I2O PERSoNAL IUsTICE DENIED his analysis supports Broom on income ftgures and thus suggests the Decisions" to guide all future s general soundness of Broom's property loss ftgures. Hatamiya estimates for Japanese phonograph recc the 1940 median annual (alien g622.10 income ofJapanese and citizen) at it was rumored that anyone w Broom had estimated rr the mean as $67I-694. Hatamiya argues that was not allowed since the loss since median figures are "the often less than mean figures, there is no major was caused by general hy discrepancy between these numbers. Hatamiya does not attempt to of the state of war"'2r but a $ estimate property losses directly. car for sale at the time of el For years, writers and commentators have cited an estimate by allowed.22Thus the difficulty o the Federal Reserve Bank ofSan Francisco that evacuee property losses ants' losses, the evidentiary ran to $400 million.r2 The Commission has inquired of the Federal partment and a compromiseat Reserve, which can find no basis in its records for such an estimate, of many claims, would tend , and the Commission can identifo no known source for the number.