U.S. Resistance Returning Nazi Looted Art Resurrects Old Wounds

 

BY JEANETTE LENOIR

 

In a crowded media world the topic of Nazi looted art has taken comfort on the back burner of the national debate circuit. But things are changing and the push to return art plundered by the Nazis is gaining momentum and more of the world’s attention.

A ruling in July by U.S. Court of Appeals in Washington, DC sided with Jewish heirs of the Welfenschatz art collection looted by Nazis in 1935. The ruling follows Germany’s attempts to dismiss the case claiming, among other things, immunity from suit under the Foreign Sovereign Immunities Act, (FSIA). Nonetheless, the district court rejected Germany’s arguments and denied their motion to dismiss the case.

And, hard to believe, Donald J. Trump played a small role in the push to bring justice to remaining Holocaust survivors. In the gloom of his support for American Nazis who marched in the Charlottesville rally, the president signed the Just Act into law in May of this year; about nine months after calling anti-Semitic, white separatists chanting “Jews will not replace us,” very fine people.The Just Act is another statute requiring the State Department to report on the progress of European efforts to return artworks stolen nearly 70 years ago.

Still, this question lingers: is the U.S. doing enough to return its own Nazi-looted art kept in high brow institutions like The Metropolitan Museum of Art? No, says Raymond J. Dowd, who serves on the Board of Governors of the National Arts Club and the Board of Directors of the Federal Bar Association. Sighting a 2014 report by the World’s Jewish Restitution Organization, (WJRO) Dowd says, “The United States is not in the group of countries that are doing the right thing.” He says despite established laws laying out the process and groundwork of returning art forcibly taken from Jews, even deeming the taking a form of genocide, only a small fraction of stolen art has been returned to its rightful owners.

Dowd, who lectures on legal and ethical matters related to Nazi art looting, represented the heirs of Fritz Grumbaum, a renowned art collector who died at the Dachau concentration camp in 1941.

“It’s still our public policy in the United States that this property should go back to the people from whom it was stolen. The Holocaust Victims Redress Act of 1998, Congress reaffirmed that.” So why did the U.S. end up with so much Nazi looted art in our museums? Dowd says, “We have to take a hard look at American museums and our cultural traditions to understand why.” He says it started with J.P. Morgan who, for tax purposes, refused to move his large European art collection to put in U.S. museums. Being one of the wealthiest men in America, Congress obliged and enacted the Payne-Aldrich Tarrif Act of 1909. “And that Act added imports of original artworks from Europe that were more than 20 years old to the duty free list. So, that paved the way for the creation of some of our greatest museums.” Dowd says even Andrew Mellon legally challenged his tax bill by pointing to the vast art collection he donated to the National Gallery as reason to reduce his tax obligation.

“Mr. Mellon’s victory is enshrined in today’s tax code that says you get a fair market value deduction for a work of art regardless of what you paid for it. The significance over most of the 20th century is that if you’re wealthy you could avoid capital gains tax by donating to a museum and thus shelter all of your income from taxation.”

Dowd says it’s an ethical and social choice being made to help rich Americans shelter their incomes in museums. And although it led to America acquiring extraordinary art collections, it’s an unjust system. “When we think about tax fairness, people who give to museums are not giving to others in our community; they’re not paying for schools or housing or roads and most of the things that other people in the middle class are paying for.”

The tax loophole may be legal but it becomes problematic when stolen art, which doesn’t get properly scrutinized, is donated. “Particularly when we see that today in America there are more museums than there are Starbucks and McDonald’s combined.” Despite early declarations of nations not taking part in stolen art transactions, Holocaust survivors and their heirs are still searching for their plundered art, many of which are hanging in American museums.

According to Art Law Gallery an estimated 300,000 Nazi looted artworks are still missing today.

 

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