The Washington herald., 1922-06-21
Administration Will Ask
Congress to Provide
Mixed Commission.
RETURN OF ALIEN
PROPERTY URGED
Would Permit Part to Be
Applied Toward
Reparations.


clear the way for the settlement
of American war claims against
Germany and the return of German
nationals property now held by the
Allen Property Custodian. Details
being worked out for Congressional
action will be announced soon, II
was learned officially.
This Is the general plan accord
ing to which these settlements are
to be effected. $s- =ugse=;ed by
those close to the government Of
ffcials in charge or~the work:
1. An act of Congress laying
down the method of procedure and
probably providing for the appoint
ment Of mixed commission Of two
Americans and one German as well
as tie scope and powers of that
commission.
2 The actual carrying out of this
settlement by machinery possessing
one or both of the following char
acteristics:
Taxes to Pay Claims.
Ca) \ portion of the seized prop
e-ty would be used for the settle
ment of claims without resorting to
conhscation through an agreement
with the German government
whereby the taxes on property
brought into Germany could be
placed in fund to liquidate
against the German government
now outstanding.
(b) a portion of the seized prop
erty already liquidated in America
would be harnessed to develop es-
sentially homegrown commodities.
which business today does not ex-
ist, but which would be revived
were 1t possible to utilize the vast
sum of money on deposit in ths
United States Treasury awaiting
the disposition of Congress.
Following this settlement or dur
ing ,the process of settlement, some
arrangement may be effected
whereby the vast sums of money
which the German Government
would receive in taxes on property
returned. could be diverted to the
payment of reparations to the AL
lies
These steps are understood to
have been discussed in a confer
ence. Saturday. between President
Harding, Secretary Hughes. Attor-
ney General Daugherty and Col.
Thomas w. Miller, Alien Property
Custodian. For some time Miller
has publicly advocated these steps
of procedure. and. it was said. the
Administrations course may follow
tbs line
Smaller Claims Get Preference.
A further step has been suggested
whereby claims up to $4,000 each
might be satisfied first. This would
mean an expenditure Of some $2u.-
100000 or only a fraction of the
s345.00O.0 900 worth of trusts now in
possession of the Alien Property
Custodian. Some objection has been
raised to this, 1t was said, because
of it's scmblance to class legisla-
ton.
Inasmuch as the total legitimate
claims against the German Govern
ment are approximately s115,0O0,O 900
and the value of trusts, S345,000, 900,
the settlement of claims and the re-
turn of property are Immediately
possible from the financial point OF
view But, it was pointed out. the
mechanics Of settlement and return
is extremely complicated, involving
such issues as naturalized Ameri-
cans caught in Germany during the
war. ex-patriated naturalized Amer
leans drafted into the German army
and said to have fought against the
United States forces. the settlement
OF estates of deceased property own
RS. AMI at last another score of -le-
gal tangles.
However. it is understood AM
bassador Wfedfeldt. of Germany. Is
now in constant touch with the
State Department which acts as
intermediary between the GIman
government and the Alien Prop
erty Custodian. And there is said
to be favorable sentiment among
German government and financial
circles regarding the settlement of
claims through the forms of Ger
man taxation-extremely high for
returned property-which might
serve as the basis of a fund to be
derived from the alien property in
this country when returned, the
same to be applied for the satisfac-
tion of claims OF American citizens
against IeTIldng. "hcn lncSe
claims are adjudicated.
Reparation Payments
And this tax fund. ID was said
might form the further basis of
pin money" reparations payments.
1t runs as high as so per cent on
returned property. OF this amount,
Ii is pointed out. per cent would
be sufficient to supply the Ameri-
can claims fund and the rest might,
by some agreement with the allies,
be used toward reparations pay
ments.
In detail. the German tax Is of
two parts. The war tax on in
crease OF property or income. A
great deal Of the alien property in
this country has vastly increased
in value since time of seizure. p
The empire need OF indemnity
tax" The first part is assessed on
any increase of property in excess
OF 5000 marks. The second, taxes
the whole property. Both these
assessments range from 10 to 100
per cent but, according to esti-
mates of the Allen Property Gus
todisn's office. the average tax
would be about so per cent. All
taxes would be payable in marks,
of course. IL was said but some
arrangement could be made
whereby the depreciation of the
ri UNn1H -