The New York herald., 1921-05-10

Special cable to THE NEW YoRK HERALD.
Copyright 1891, by Tng NEW YORK HERALD
New York Herald Bureau,
Berlin, May 3. }
German financial experts and indus
trialists are making an eleventh hour
effort to interest the Allies in German
industry as security for their repara-
| tions demands In this the Germans
have taken the initiative. with nurner-
Gus plans, in the expectation that they
may be able to evolve some form OF
settlement which will enable Germany
10 still retain control of her factories.
The Germans have long realized that
some Of the politicians of France weru
beginning to see that the German in
dustries. with their ten million work.
crs, were the real source Of German
wealth. 1t is held here that the mill
.arv sanctions are principally political
devices and a means to an end, but
that among the kinds OF reparations
that can be collected are gold coin and
supplies. and the delivery Of it's gold
reserve by the Reichsbank falls in this
category. This, It is held. is plainly a
moral demand. intrinsically destructive
and not profitable.
Then. say the German industrialists.
there is the scheme for taking over the
mines OF the Ruhr Valley for direct ex-
ploitation, labor TO be paid in paper
money and the mine owners taking what
satisfaction they can from their own
Impoverished Government. The danger
OF this method OF raising money. they
say, is that the ultimate economic sta
bility Of the country would be endan-
gered for immediate expediency
The Germans are now holding lively
discussion on the wisdom Of permitting
the Allies to participate as sharehold-
ers in German industry. campaign
with this in view has been launched by
Arnold Rechberg. known as a dilettante
artist In Paris before the war. He was
subsequently a confdant OF Gen. Lu-
dendorfr and IS member of an impor-
tant German industrial family. The
scheme is for 80 per cent. allied partici-
patton. but Hugo SHINES is reported TO
have discussed a figure as high as 80
per cent with friends or Louis Lou
cheur. French Minister OF the Devastated
Regions. in conferences recently.
After the arrnistice French interests
tried TO get hold on German industry
and last year a move was made TO reacn
some form Of collaboration. French eS-
perts negotiated for he transfer OF lnrae
stocks OF Government machinery as well
as the delivery Of machinery by German
firms. all 20 be charged to the repafa-
tions account At the same time Ger
man industrialists. headed by Stirnes.
advocated bringing together the basic
materials. such as French ore and
German coal The Germans also studied
the possibility OF rcconstructiug France
at their own initiative. but French con-
tractors resented this. not wishing 10
have Germany money and labor In COM
petition with theirs.
Tho reparation terms contained In
the note OF Or. Walter Slmons. German
Foreign Minister. sent TO the Washing
ton Administration ignored the Rech-
berg plan OF Industrial participation and
offered the customs and the State owned
mines as security. There Is still much
doubt regarding the success Of Herr
Rechberg's calculation Of letting allied
manufacturers own German shares. The
first motive obviously, II the Allies were
financially interested IN German indus
tries. would be that they would not be
"choked on with reprcssive measures.
Oscar Tietz. known as the German
Woolworth." who Is the chief opponent
Of the Rechbere scheme. refutes the lat
ter's arguments about the industrial
profits, but certain German manufac-
turers have not yet dropped the idea.
Paul Litwin would have all German
industry given as security for a large
bond issue. estimating that the factories
and their installations could guarantee a
60, 900, 900, 900 mark issue. These are
paper marks. but The investment would
tend to raise the value Of them. he holds.