Evening star., 1922-03-30
GERMAN PROPERTY
:, SEIZED IN WAR MAY
PAY CLAIMS IN U. S.

PAY CLAIMS IN U. s..
instance, that $4,000 worth of Ger
man property was seized by the
american government and held dur
ing the war s.
The fdifferenee between $4,000
Waived at thirteen marks to the dol.
lar. or 10000 marks and $4,000
exchange. which is soe marks to the
dollar. or 100000 marks. would be
2,870.000 marks. Now examining the
tax schedule of the Germans unicr
the first tax. we find that all amounts
above 100000 marks are to be given
rate is 100 per cent. This would mean
that the German owner would be en-
titled to keep only 10000 marks, or
at the present rate of exchange OF 500
marks to the dollar. he would have
approximately $43a out of his original
$4,000.
This absurd conclusion is admitted
by German officials. some Of whom
have discussed the situation with the
United States government. The Ger
tax laws, but they could not, Of
man property, and could hardly
change the severe rates Of exchange
so that in the end the bulk Of the
property held in America would nnd
government and be used for its ex-
penses or be paid in repArations to
the allies.
Only Tangible Assets.
There is moreover. another phase
Of the matter. American claimants
against Germany realize that the
German government will not soon
pay them, and unless the United
States Treasury is to be asked to pay
claims which Germany herself should
pay, the only tangible assets which
can be used at all to satisfy the
claims are embraced In the German
property held in America.
The American government Knows
that to pursue general policy CT
applying the equivalent Of the Ger
mar, tax laws on this side Of the At
lantic would mean hardship on many
small owners. So the alien property
custodian has suggested that a NV
sion could be made on tue basis OF
estates or trusts valued at $4,000 or
there are approximately 2s.6oS trusts
valued under $1,000. This is 80 per
cent of all the trusts held by the
American government. The remaining
Z per cent. are about 1000 In Al: Dnt
they represent 4 total value OF xZse,,
600, 900. as against $13,o00.00o, which
is spread out among $4,000 owners.
H.. Would he Aid to Owners.
The policy proposed by Col. Miller
would, on the one hand. alleviate the
suffering Of the German owners who
have small estates tied up. and would
coniine the American governments
action to only 1000 estates. BY es-
tablishing a quasi-government cor
poration the German owners OF even
these 1000 estates would not pernia-
nentIy be deprived OF their property.
for they would be given . portion OF
their estates back and the remainder
would be converted into stocks or
bonds in the new credit corporation'
out OF the profits Of which 1t Is es.
Germany could easily be paid. It
would take some years to reap enough
profit to pay all the claims. but the
American Treasury could anticipate
the profits Of the corporation by pay
ing slsine .1sst in amenns ssyanes Il tn. American
claims against Germany will not be
known until the American-German
claims commission, soon to be set up
by treaty with Germany. gets into
operation. 1t 10 estimated that the
sum will not amount to more than
xaO0. 900. 600, though nobody knows
except from historical experience,
which shows that the final adjudiea-
ton cuts the claims down materially.
other Claims Neslisisle.
|. In any event, the amount Of German
property held in America is more than
sufficient to permit the return OF es-
tates under 10000. and some think
even higher. and still have enough left
to establish the credit corporation
and give back some percentage to the
owners OF estates. above $le.680.
AS for Austrian property, or rather the
sssets of citizens OF the former Austro-
Hungarian empire, which now has been
diyided into Poland, Rounania, Serbia
and CxechoslovAlsin. the claims Of Amer
fcan citizens arc considered relatively
negligible. So it is proposed to give back
an the property seized from nationals OF
the former Aietro- Hungarian empire.
The Germany property is scattered
from tie Philippines to the New Eng
land coast, and includes chemical fac-
tnries. wooden mills, steamship lines,
banks. land and cattle companies.
salmon factories gold and silver and
other mines, AZ well rs nniscellAneons In
dustrial plants and thousands OF parcels
Of real estate and trusts represented by
securities and liquid assets.
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