Evening star., 1924-04-09
Experts Report is Submitted
- On German Payment Plans

! the war. The transportation system
and Industries generally are provided
with the most modern appliances.
and ports and terminals have been
! extended and improved, furnishing
| excellent sources of revenue and an
adequate pledge, along with monopo-
| lies. for the payment of reparations.
With respect TO the military aspects
! of sanctions and guarantees, the
Dawes report says:
IF political guarantees and penal
! ties intended to insure execution OF
! the plan proposed are considered de-
sirabe they fall outside the COM
! mittee'S jurisdiction. questions Oh
military occupation also are not with
! ing our terms of reference. 1t, how
ever, is our duty To point out clearly
that our forecasts are based on the
assumption that economic activity VIII
, be unhampered and unaffected by any
foreign organization other than the
controls herein provided. Consequent
| ly our plan is based upon the aSSump-
tion that existing measures, In SO Tar
as they hamper that activity, VIII be
withdrawn or sufficiently modified so
soon as German has put into eXecu-
ton the plan recommended.
Joint Stock Company.
In agreement with the railway .ex-
perts, the committee recommends the
| conversion of the German railways
| into joint stock company, adding;
/ 1T is not our intention thus to
! deprive Germany of the administra-
| ton of her railways in favor of the
allies. on the contrary, our plan
| demands only a modest return on
the capital cost. and SO long as this
| return is forthcoming we do not
| anticipate any interference in the
| German management Of the under
! taking.
| The railways are to be managed
| by Il board of eighteen directors, of
| whom nine Will be chosen by the
! German government and the private
! holders of preference shares, and the
other nine will lie named by the
| trustee of the bonds to he issued,
! amounting to 10000 100000 gold
marks, five OF whom may be Ger
! mans. The chairman of the board
! and the general manager of the rail-
I ways will lie German.
! Regarding contributions from the
various German industries. the report
! says:
/ First Mortgage Bonds.
The committee has been impressed
| with the fairness and desirability of
! requiring, as Il contributor to repa-
! ration payments from German indus
! try. Il sum Of not less than 5000
| 600 900 gold marks TO be represented
! by first mortgage bonds bearing
/ per cent interest and ! per cent sink
ing fund per annum'
/ 1t il pointed out that the indus
! trial concerns have protited in many
/ ways through the deprecated cur
Sency. such as the long delayed pay
ment of taxes by industrial concerns
"A l., hNrs heir taS nj 4.
/ ed and advances made by the Ger
man government and by the deprecia-
tiOn of emergency money which they
issued. Notwithstanding some losses
| incurred by these industrial con
Germs, the committee feels that the
burden imposed by the plan is not
too great for them to bear.
The provision contemplated by thf
committee for treaty payments is rs
follows;
BDdget Moratorium Period.
Budget moratorium perod-F'irs
year from foreign loan and part in
a total Of ,000. 100000 gold marks
Second year from interest on railway
bonds Gncluding l30.000.00O balanc,
from first YEAR,. and interest on in,
dustrial debentureS and budget con
tributiOn, including the sale of rail,
| way shares, total of 1.22o.o00, 90,
| gold marks.
"Transition period. Third Year
from interest on railway bonds anC
! industrial debentureS, from trans
port tax and from budget, a total o
1900. 900 gold marks. subject u
contingent addition or reduction no
exceeding 250.00C.OO0 gold mar ks
| Fourth year. from interest on rail
! way bonds and industrial debentures
! from transport tax and from budget
a total of 1,75O,000,000 gold marks
, subject to contingent addition or re
! duction not exceeding 250,000 ,00t
! gold marks.
/: STANDARD year: Fifth year from
; interest on railway bonds and in
! dustrial debentures- from transport
tax and from budget, total OF
! 800 0OO, 900 gold marks"
! With a view to making certain
! that not only does Germany meet her
! payments. but that the possible sur
| plus is actually established, tn" re-
! ports says:
| Exchange Is Vital.
! We are convinced that some kino
! of co-ordinated policy with regard &c
! the exchange lies at the root or the
reparation problem, and is essential
to any practical scheme in obtaining
the maximum sums from Germany
| for the benefit of the allies.
| THE greater the extent TO which
/ payment may be rendered autotmatit
and a matter of habit. and b.
| independent of a fiuctuating polltlca
attitude toward reparations, the less
! will be the friction and the greater
will be the real stability of the Ger
| man budget. In the last resort the
best security is the interest OF tht
German government and people tt
accept in good faith a burden which
! the world is satisfied will be within
| their capacity and to liquidate a:
| speedily as possible burden which
| is and should be onerous."