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<I> Portrait of Wally</i>

David D'Arcy reports on the dispute over ownership of a painting that the Nazis took from a Jewish art dealer in 1938 Vienna. Portrait of Wally, by Egon Schiele has been on loan to the Museum of Modern Art for the last two-and-a-half years. A federal judge ruled that the painting cannot be considered "stolen" because the American military returned it to the Austrian government in 1945. The Justice Department is asking the judge to reverse his ruling. The case has implications for the families of Holocaust victims, who are trying to recover art and other property that was looted by the Nazis.

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