The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1922-03-31

America comparable to it. The Ger
mans are actually taxing capital and
are applying such percentages as to
make il possible for yhem to take away
from the German owners the largest part
1f any property returned TO them by the
American government. The theory
back of the policy Of the United States
always has been that individuals should
not be made to suffer for the acts OF
war of their government but if the
United States were to return tomorrow
without condition all the property
seized from Germdns. the allied govern
ments and citizens of allied countries
would Immediately be benefited whilst
German owners would be hurt as would
american citizens whose claims against
Germany are likely to remain unpaid in
definitely 50 far as Germany is con
cerned.
How German Law Works.
The working of the German tax law
/ is uniaue. All property or capital
/ brought into Germany is subject to two
/ separate taxeS-one an empire need
| ak" which goes TO pay allied repara-
\ lions and the other a general capital tax
/ for government expenses. In one case
/ the value of the mark is taken at IL
| marks per 81 as Of July, 1919, and in
/ the other 40 marks to the dollar as OF
/ December. 1919.
/ To explain actually how the system
works il NAV be supposed. for instance,
| that $4,000 worth of German property
was seized by the American govern
ment and held during the war. The
difference between $4,000 valued At -
/ marks to the dollar or 100000 marks
and $4,000 valued today at the pres
| mt rate of exchange which is SUI
marks to the dollar or 100000 marks
would be 2.ST0.00O marks. Now exam
ming the tax schedule of the German
/ under the first tax we find that all
| amounts above 100000 marks are to be
given to the German government as the
tax rate IS 100 per cent, This would
mean that the German owner would be
| entitled to keep only 100000 marks or
| qt the present rate Of exchange OF 5Uo
marks tooth ld0llasa koA would have APP
proximately S433 out Of his original
! 10000.
This absurd conclusion is admitted by
| German officials, some of whom have
| discussed the situation with the Jmtea
/ states government The Germans say
they could change their tax laws but
| they could not. Of course. make them
/ apply to all German property and could
hardly change the severe rates OF eN-
change so that in the end the bulk OF
the property held in America would find
its way into the hands of the German
government and be used for its expenses
| or be paid in reparations to the allies.
Americans Get no Pay.
There is. moreover. another phase OF
the matter. American claimants against
Germany realize that the German gov
eminent viii not soon pay them and I'M
less the United States treasury is to be
asked to nay claims which Germany her
self should pay. the only tangible as
sets which can be used at all to satisfy
the, claims are embraced in the German
prop rty held i'm America. The Amerl-
can government knows that TO pursue
a general policy Of applying the equlva-
tent OF the German tax laws ON TINS
side of the Atlantic would mean hard
shin on many small owners So the
alien property custodian has suggested
that n division could be made on the
estates and trust valued at SlO.ouo OF
under The official figures show that
there are approximately 29,bOb trusts
valued under $4,000. This is 10 per
cent of all the trusts held by the Amer
lean government The remaining sever
pcr cent are about 600 in all. but they
REPRESENT n total value of S2,96O,OOo.
600 as against S23O00,0O0 which l,
snread ont among 10000 owners.
The policy proposed by Colonel Nil
| Ter would on the one hand alleviate tn'
suffering of the German owners whc
have small estates tied up and would
confine the American governments ac
tion to only 1000 estates. BY estab
fishing quasi government corporation
tbp German owners of even these 2Ul1
estates would not permanently be de
prived of their property for they WouiI
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