Tax refuge?

Before the First World War, Konstanz and Thurgovia had formed a closely entwined economic area. During the war, however, the border had been closed. The movement of goods and passengers via customs was gradually resumed only after 1919. The border town of Konstanz soon became known as the place where countless uncontrolled border sections allowed for smuggling goods from Switzerland to Germany. Goods worth more than 6 million Deutschmark were assumed to have passed the border right after the war. With the onset of inflation, the reverse path was followed. Swiss came to Konstanz to stock up with extremely cheap goods.

Before the war, nobody thought of border controls. Also Salomon Picard at the main customs in Konstanz had used the open border to Thurgovia in many ways. Together with his father he ran a cattle trade in Amlikon near Weinfelden and, according to a contemporary, he was a successful trader of real estate. In neighboring Kreuzlingen, Salomon helped the Wieler family with a loan to establish their knitwear factory in 1904/05.

Against this background, it happened in 1919 that Samuel Picard wanted to resume his relations with the Swiss hinterland very urgently. The Swiss authorities had approved to an unrestricted entry permit to Switzerland but the Konstanz tax office did not. There is a big file in the Archives of Karlsruhe concerning this affair.

A lawyer in Karlsruhe was busy for three months dealing with the repeal of a security clearance from the Property Tax Office. The applicant Salomon Picard should pay a deposit of almost half of his assets in capital and real estate for a permanent travel permit to Switzerland. The German authorities wanted to make sure, that he would not transfer his entire capital to Switzerland and thus commit tax evasion.

The lawyer could provide sound evidence: Salomon Picard had lived in Konstanz for 35 years. His reputation was excellent. Even a member of the local aristocracy and former minister, Freiherr von Bodman, would guarantee for the good character of the applicant. In addition, the deposit asked for was much too high. The capital of the plaintiff amounted in total to about 200 000 Reichsmark.

Only towards the end of the year an agreement could be negotiated although Salomon Picard had claimed three months earlier, that his presence in Switzerland was absolutely urgent.

The file about the dispute over the bail reveals yet another aspect of the consequences of the First World War for Salomon Picard. He had been the owner of a property in Mulhouse in Alsace. According to the peace treaty, the property now was owned by the French state and Germany in turn would have to pay off the former owners. However, the peace treaty had not yet been ratified in 1919.