Evening star., 1922-06-27
LOW MARK SAVES
AL|ENPROPERN
German Government Rules
Confiscatory Taxes Can Be
Paid at Berlin Value.
BY DAVID LAWRENCE.

Germany has given the United
States government official assur-
ances that no confiscatory taxes Will
be levied upon the property returned
to German citizens by the alien prop
erty custodian here.
The German government realizes
that if existing statutes were liter
ally interpreted it might mean that
the property of Germans seized here
during the war would find it's way
into the hands of the Berlin govern
ment, and eventually would be part
payment to the allies on the war
indemnity This fact more than any
officials from recommending the re-
turn of the German property to its
owners it being argued. that while
the American government may have
sentimental objections TO confiscat-
ing private property, the same prop
erty would be confiscated anyhow by
the German authorities.
Value of Mark Factor.
Publication in the United States
of this argument led the German
government " ldhc up tic 4uSSlIoh
in an effort to persuade the United
States government that Germany
would not confiscate the property. The
department of finance in Berlin has
examined the laws and issued a rul-
ing to the effect that the taxes may
be paid in the present value of Ger
man marks. This makes all the diff
ference in the world, for the Ger
ar cd in, Tr,1x
1919. and December. 1919, respec-
lively. and in the former case the
value of the mark was thirteen to
dollar. and in the latter, forty mine
to a dollar.
Will Nos Exceed 10 Per Cent.
If taxes were to be paid on that
valuation it would mean virtual confis-
cation. But the German government
offlcially advises the United States
that it has no intention of applying
the value of the mark as of July or
December. 1919, but as of the date on
which the property is returned Ac-
cording to the statisticians of the Ger
man nnance department the tax would
IN no case go beyond 10 per cent, and
IN many cases where the property re-
turned is of relatively small size the
tax would range from to 4 per cent
These taxes, 1t is admitted, are high.
but they do not mean the taking of
the whole thing as was supposed would
be the case If the tax laws were in
terpreted as the American government
thought.
The German government is naturally
interested in seeing the property of its
nationals restored, and was quick to
point out that fears of confiscation
by the Berlin authorities need not be
entertained. The United States gov
ernment had, of course, no power to
intervene as between German citizens
and the German government though
the good offices of the Department of
State were frequently suggested as a
means of preventing German confisca-
ton.
Not to Penalize Nationals.
Instead. the German government
has voluntarily interpreted its laws
of 1919 and made it clear that it will
not penalize it's nationals simply be-
cause the difference between ex-
change rate today and three years
ago is so large. 1t is believed this
action will make it difficult for Con-
gress to withhold approval of Pres
ldent hafding's plan on that ground
though it is anticipated a lively fight
will ensue in both the Senate and
the House on the question of paying
American citizens the claims they
hold against Germany for acts com
mitted during the war. The adjust
ment of these claims, which will be
taken up by a mixed commission, may
be sought first before all the German
property is returned. The present
plan contemplates returning indi.
vidual properties up to $4,000 In
value and would keep in trust ap.
proximately s350.000,000 to s450.000,.
900 other properties of German own.
ership pending further Developments
in American policy.
Copyright 1927