The New York herald., 1921-05-31
SEIZURE OF GERMAN
INDUSTRIES URGED
Berlin Cabinet Considers Radi-
cal Plans for Reparation
Payments.

Special cable to THE NEW YORK HERALD.
Copyright, 1891, by THE NEW YORK HERALD.
New York Herald Bureau,
Berlin, May 80.
Several drastic tax projects are being
debated in the Cabinet preparatory to
the Government uniting on a programme
to be laid before the Reichstag as a new
policy for meeting the reparation pay
ments to the Allies. The proposals are :
First TO confscate 25 per cent. of all
property in Germany. including indus
trial shares, land and houses; second,
a graded tax up to so per cent. on the
net profits of corporations: third. the
formation Of a State monopoly of all
insurance business after the Italian plan.
and. fourth. the State TO own all indus
try and hold a mortgage on fourth of
all real estate In Germany.
Further capital taxes are certain to be
bitterly fought by the industrial and the
Nationalist parties. which maintain that
the existing levies already are throttling
enterprise and which are fundamentally
antagonist,c to further participation by
the State in private business.
The new proposals emanate chiefly
from radical sourcs. either from Mat
thias Erzberger. formerly Minister of
Finance and now Chancellor Wirths
political godfather and an advocate of
anti-capital taxation. or from the Ma
jority Socialists, who are represented in
the Wirth Ministry by Robert Schmidt,
Minister of Economics. and Otto Bauer.
Treasurer. 1t now remains to be seen
il the Cabinet will be dominated by the
Majority Socialists. and, in case II
adopts radical programme. If 1t can
weather the storm In the Reichstag.
Should these issues be carried to the
floor OF Parliament now, 1t Is thought
likely that II would lead to a dissolu-
tion of that body and an appeal TO the
country. In which event both the Social
lists and the Nationalists feel confident
they would make satisfying gains
Chancellor Wirth's Cabinet. however,
will never reach next weeks Parliament
with a programme unless Bavaria per-
mits it. Tomorrow night Chancellor
Wrth must make a statement to the
Allies regarding the prospects of dis
armament. and the fateful Bavarian
Einwohnerwehr tCivic Guard) has
emerged again as an irremediabe factor
Premier Won Kahr's Bavarian Ministry
had. from all surface indications, aban-
doned its intransigeant stand and Dr.
Georg Escherich, head of the Einwoh-
nerwer. in repeeted public utterances
Hdu SuTIenuereu MS central oTSdHlHdlloH
to Premier Won kahr's will.
But now the local captains Of tho
wohnerwehr repudiate their leaders
and to-day are still refusing to obey
the command to surrender their arms
and disband their companies.
Whether this constitutes a fairly uni
fled Bavarian plan for evadlng Berlin's
domination or really is a spontaneous
rebellion cannot be answered here. In
Berlin both theories are offered. How
ever. Chancellor Wirth is confronted
with difficulties which may make him,
In addition to being Germany's youngest
Chancellor, the most short lived head
of the Berlin Government. For unless
the Bavarians voluntarily disarm. he
will likely have to tell the Allies that he
Is unable 10 fulfil his promises TO them
and leave further dealings with the En-
tente to his successor
The Bavarians then would be invited
to enter the Ministry and try for them
selves a policy of defiance