Docket No. 262: Max Schwarcz

Docket No. 262.

UNITED STATES OF AMERICA
on behalf of
Executors of the Estate of Max M. Schwarcz, Deceased,
Claimants,

v.

GERMANY.

PARKER, Umpire, rendered the decision of the Commission.

This case is before the Umpire for decision on a certificate of the American Commissioner and the German Commissioner[a] certifying their disagreement. A brief statement of facts as disclosed by the record as follows:

The United States asserts this claim on behalf of the Executors of the Estate of Max M. Schwarcz, Deceased, and Irene S. Jacobi, Dorothea S. Greenbaum, and Minna E. Schwarcz for losses suffered by them resulting from the death of Max M. Schwarcz, a naturalized American citizen, 51 years of age when he went down with the Lusitania, on which he was a passenger. Three daughters then unmarried survived him, Irene, Dorothea, and Minna, 25, 22, and 15 years of age respectively, each of whom was born and has ever remained an American national. In April, 1917, Irene married Frederick Jacobi, an American national; in October, 1920, Dorothea married Edward S. Greenbaum, an American national; Minna remains unmarried.

The decedent resided in New York City with his daughters, all of whom were solely dependent upon him for support. He was the senior member of and owned a 55% interest in Max M. Schwarcz & Company, of New York, designers and manufacturers of women’s cloaks and suits. He was strong and would probably have remained active in business for some years to come. His income from the business of which he was the head averaged more than $49,000 per annum during the period of 5 years from 1909 to 1913 inclusive. The interest of the decedent in the net assets of this business at the time of his death was $244,600.00, which constituted practically his entire estate, bequeathed by him to his three daughters in equal parts. The personal earning power of the decedent, which he put into the business from which he derived his income, was substantial. His death deprived the claimants of this source of income, notwithstanding the corpus of the estate passed to them. The youngest daughter, then of tender years, was particularly deprived of the decedent’s personal services in her care, education, and supervision.

No claim is made for the loss of personal property which the decedent had with him on the Lusitania.

Applying the rules announced in the Lusitania Opinion to the facts in this case as disclosed by the record, the Commission decrees that under the Treaty of Berlin of August 25, 1921, and in accordance with the terms of the Government of Germany is obligated to pay to the Government of the United States on behalf of (1) Mrs. Irene S. Jacobi the sum of twenty thousand dollars ($20,000.00), (2) Mrs. Dorothea S. Greenbaum the sum of twenty-three thousand dollars ($23,000.00), and (3) Minna E. Schwarcz the sum of thirty-two thousand dollars ($32,000.00), with interest thereon at the rate of five per cent per annum from November 1, 1923.

Done at Washington February 21, 1924.

EDWIN B. PARKER
Umpire.

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[a] Dated February 14, 1924.

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