New Britain herald., 1924-04-09

|
 Tt is not our intention thus to de-
 priye Germany of the administration
 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 VIC do not anticipate any interference in the German manage
 nent of the undertaking"
 Railway Management
 by board of IS directors, of whom nine will be chosen by the German government and the private holders of preference shares and the other nine will be named by the trustee of the bonds to be issued amounting to II, 00,000,000 gold marks, five of whom may be Germans. The chairman of the board and the general manager of the railways will be German.
 Regarding contributions from the various German industries, the report says: ''The committee has been im- pressed with the fairness, and desir- ability of requiring as a contribution to reparation payments from German industry sum of not less than D. 900 100000 gold marks to be repre- sented by first mortgage bonds bear ing five per cent interest and one per cent sinking fund per anrum."
 It is pointed out that the industrial concerns have prof1ted in many ways through the depreciated currency, such as the long delayed payment of taxes by subsidies granted and ad- yances made by the German govern ment and by the depreciation of emergency money which they issued, notwithstanding some losses incurred by these industrial concerns, the oom- mittee feels that the burden imposed blythe plan is not too great for them to bear.
 Treaty Payments
 The provision contemplated by the committee for treaty payments is as follows: Budget moratorium period: First year from foreign loan and part interest o0.eoo,ooo) on railway bonds, a total of 1,o0o,00o,ooo gold marks. Second year, from interest on railway bonds dncluding 1so,ooo,- 900 balance from first year) and in- terest on industrial debentures and budget contribution, including the sale of railway shares a total of 1,iao,- 008, 900 gold marks
 Transition period: Third year, from interest on railway bonds and industrial debentures. from transport tax and from budget; a total of l,a0o,o ,o0o gold marks, subject to contingent addition or reduction not exceeding 250.0oe,oo0 gold marks. Fourth year, from interest on railway bonds and industrial debentures, from transport tax and from budget, a to- tai of 1,T5.e0o,ooo gold marks, sub ject to contingent addition or reduc- ton not exceeding 25o,ooo,ooo gold marks.
 Standard year: Fifth year. from interest on railway bonds and indus trial debentures. from transport tax and from budget, a total of 2,eoO,- | GOO. .o00 gold marks" '~ .t....
 With a view to making certain that not only does Germany meet her pay ments but that the possible surplus is actually established. the report says: | We arc convinced that some kind of | coordination policy with regard. to | the exchange lies at the root of the 1 reparation problem and is essential to any practical scheme in obtaining the maximum sums fronts Germany for the benefit of the allies.
 "The greater the extent to which | may be rendered automatic | and matter of habit, and be inde- pendent - a fluctuating political at- titude tow ards reparation 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 the German government and people to &C., cept in good faith burden which the world is satisfied will be within their capacity and to liquidate as speedily as possible a burden which is and should be onerous." ..
 second Committee Report.
 Paris, an official summary of the report of the second committee of ex- perts follows:
 "Preamble.
 "The committee to consider the means of estimating tho amount Of German exported capital and Of it back to Germany, held 3s meetings in Paris and Berlin. It adopted the date of December 5i, 1923, as that to which its estimates relate. Ii is not possible to fix pre- ,ise figures but the committee has aid down maximum and minimum imits between which the actual mount is to be found.
 Section [. Mcthodo Work.
 "lA). While availing themselves of lll information the committee reject ,d the method Of making a detailed inquiry Of bankers and business men throughout the world as to specific md confidential transactions on the part Of Germans. {.
 "(BD. Instead it adopted the fol- owing method. t1) The committee , ,stimated the total value Of German ,apital abroad at the outbreak of war. 20 It estimated the total reduction hereof during the war as a result Of ! diverse trade balance during that ,eriod. advances by Germany to her 1 lilies, loss by sequestration Of proper 1 y in allied and associated countries md loss through depreciation in value [ # securities. tsD It estimated the otal accretions to German foreign ssets during the war as a result of ! ales of German securities. interest ccumnlations, sale Of gold and prof Is realized from territories occupied y Germany. ......
 "(CD The foregoing calculations re- uited in an estimate of Herman for ign holdings at the time Of the ar- [