The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1922-06-23
BY DAVID LAWRENCE.
Especial Despatch to The Reformer. J
Copyright 1922


Copyright 1922.
WASHINGTON. June 23-A1though
President Harding has decided to fol
low the humane course which has been
traditional in American history in re-
turning the private property of citizens
of an enemy country, the painful truth
is that in the instance of the German
nationals practically all of the property
now held by the United States will come
into the hands of the German govern
Intent and eventually viii be transferred
to the allied governments as reparation
money.
This is because the German govern
ment has on its statute books tax on
capital which would virtually eonfiscate
the property about to be returned by the
American government to German citi-
zens. President Harding and his asso-
ciates realize this but it was stated at
the White House in response to an in
qulry that the United States government
is powerleSs 10 intervene as between
German citizens and the German gov
eminent.
There has been some discussion of
the possibility that the American gov
crnmeut might make as a condition Of
the return that the German government
waive the tax on capital or that the de-
partment of state use its good offices to
secure exemption for German nationals
having property in the United States
Fer the moment. however, American
officials will not intervene UnOfiicially
German embassy Spokesman have as
Sured American officials that the tax on
capital would not be enforced against
the German nationals having property
returned to them by the United States
government and it may be that this will
be the case. but there is nothing definite
TO guarantee such an outcome and it is
believed special law would have to be
passed in Germany to cover the exemp-
ton.
$50. 900 900 in First Return
The situation becomes particularly
vital because the United States plans to
return approximately S30,000.000 worth
of property which takes in about 90 per
cent of the people interested In getting
property back The remaining seven
per cent own property estimated in value
at from $3.50. 100000 to S450O00, 600.
should the German government practi-
caliy confscate the first S30. COG. 600, III
would have an 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 and the loss of
/ property know that in the present state
| of German finances they have little
| chance to collect their claims. That 5
! why they have been insisting that the
/ property of German nationals could be
/ used as n means of paying American
claims. The President and his col
| leagues have been opposed 10 this on
the ground that American tradition was
against confscation of private property
of enemy citizens but American claim
ants declare that if the American gov
| eminent doesn't contiscate it the German
government viii and the proceeds viii
not go either to American claimants or
90 to the allied governments as repara-
tions payments.
Americans Want Property Held
The representatives of American
claimants have suggested that the wiser
course for the American government to
follow would be to hold the German
property in trust until Germany can pay
American claimants. The objection to
this has been the fact that many per-
were being made to suffer unnecessarily.
The compromise plan which was worked
out by Col Thomas W. Miller, alien
property custodian, and now Is APP
proved by the President, would, with the
consent of congress, give to German ma
fionals ali property under $4,000 in
value and on large estates at least S1O,-
coo. The prospects are that the owners
of the large estates viii not wish them
divided so as TO get $4,000 and viii de-
cline to accept the $4,000, preferring
TO keep their estates intact. The Presi-
dent has followed almost entirely the
recommendations of Colonel Miller, who
for months has been reorganizng the
Office of the alien property custodian. 1t
cannot be said however, that a perma-
nent policy has yet been evolved. for I'M
til congress approves the legislation be-
ing drafted by Colonel Miller and the
departments of state and justice and
some idea is obtained of the attitude of
the German government toward the first
$50, 100000 worth Of property returned,
The whole subject will be more or less
in allegiance.