Evening star., 1922-06-23
HANDS Of j. s. TIED
| IN ALIEN PROPERTY
German Tax Law Likely to
Mean Almost Total Loss
to Owners.
BY DAVID LAWRENCE.

Although President Harding has
decided to follow the humane course
which has been traditional in Ameri-
can history in returning the private
property of citizens of an enemy
country. the painful truth is that in
the instance of the German nationals
practically all the property now held
by the United States will come into
| the hands of the German government
and eventually will be transferred to
/ the allied governments as reparation
moneys
This is because the German govern
| ment has on its statute books a tax
! on capital which would virtually con-
!iScate the property about to be re-
| turned by the American government
| to German citizens. President Hard
! ing and his associates realize this, but
! ii was stated at the White House in
/ response to an inquiry that the United
! States government is powerleSS to in
| tervene as between German citizens
and the German government.
i Not to Intervene.
| There has been some discussion of
!
! crnmcnt might make as a condition
| of the return that the German gov
| c"nmcnt waive the tax on capital or
! that the Department Of State use its
good offices to secure exempt ion for
! German nationals having property in
! jic United States For the moment,
| however. American officials will not
! intervene. CnOtticially German en-
! haSSy suokcHmen have assured Amer
! lean officials that the tax on capital
| would not b" enforced against the
! German nationals having property re-
turned to them by the United States
! government. and it may be that this
! VIII be the case. but there is nothin =
definite to guarantee such an out
| come. and ii is believed a special law
| would have TO be passed in Germany
to cover the exemption.
| S3O.OO0.O 900 Is Involved.
| The situation becomes particularly y
| vital. because the United States plans
to return approximately $3O,OoO,ooo
worth of property, which takes in
| about 95 per cent of the people inter-
ested in getting property back. The
remaining ! per cent own property
! estimated in value at from $3.50 ,000,- :
900 to $3.50. 900. 900 Should the Ger
| man goNcrnment practically confiScate
| the hrSt S3o."O0.0o0 it would have au
| important bearing on the disposition
of the remainder of the property
| Americans who have claims against
| the German government. either
| through the death of relatives on the
| Lusitania or elsewhere in the war
zone, and the loss of property, know
! that in the present state of German
! finances they have little chance to
collect their claims. That's why they
| have been insisting that the property
J OF German nationals could be used as
a means of paving American claims.
The President and his colleagues
| have been opposed to this on the
ground that American tradition was
against confiSCation OF private prop
/ erty OF enemy citizens. but American
claimants declare that if the Ameri-
can government doesn't cOnfiScate it
the German government will. and the
proceeds Will not go either to Ameri-
/ can claimants or the owners of Ger
man property, but will go to the al
lied governments as reparation pay
ment.
Urge Holding in Trust.
The representatives of American
claimants have suggested that the
wiser course for the American gov
; ernment to follow would be to hold
Germany can pay American claim
! ants. The objection to this has been
the fact that many persons with
small amounts of property We're being
made to suffer unnecessarily. The
; compromise plan which was worked
| out by Col. Thomas w. Miller. alien
property custodian, and now is ap-
| proved by the President, would, with
| the consent of Congress, give to Ger
! man nationals all property under
$4,000 in value and on large estates
I at least $4,000.
The prospects are that the owners
! of the large estates will not wish
! them divided SO as to get $4,000 and
F; will decline to accept the $4,000. pre-
! fcrrinc to keep their estates intact
, The President has followed almost
! entirely the recommendations of Col
| Miller. who for months has been -e-
! organizing the office of the alien
! property custodian. 1t cannot be said
! however. that a permanent policy ha s
i yet been evolved. for until Congress
| approves the legislation being draft
| ed by Col. Miller and the departme n IS
of State and Justice. and some idea is
| obtained of the attitude of the Ger
! man government toward the first
| $50. .OO0.O worth of property returned