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 /

All rights
All reserved, including
rights reserved, right
the right
including the
reproduction in
of reproduction
of or in
whole or
in whole in part in
part in
any
any form.
form. ''

COPYRIGH
COPYRIGHT, 1947, BY
T, 1947, SASULY
RICHARD SASULY
BY RICHARD
PUBLISHED BY
PUBLISHED BY BONI
BONI 8:8: GAER,
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Inc., New
New York
York

/
I

Citfiiiq I A
 ACKNOWLEDGEMENTS
ACKNOWLEDGEMENTS

' /

r
I

Unquestiona bly the

Unquestionably important thing
most important
the most this book
about this
thing about the
is the
book is
fact it could
that it
fact that be written
could be at all.
written at Entry into
all. Entry the great
into the and
plants, and
great plants,
files and records,
files and records, of Farbcnindustrie was
IG Farbenindustrie
the IG
of the gained by
was gained force of
by force of
K
allied arms
allied from east
arms from east and west at
and west climax of
the climax
at the of the World
Second World
the Second
War. To
War. To make
make order of the
out of
order out wreckage of
the wreckage evidence oi
the evidence
of the IO
of IG
Farben’s war
Farben’s required intensive
crimes required
war crimes team of
by aa team
work by
intensive work of investi-
investi-
gators under
gators Colonel Bernard
under Colonel financial adviser to Gen-
Bernstein, financial
Bernard Bernstein, adviser to Gen-
eral Eisenhower. The
eral Eisenhower. to write
chance to
The chance story of
the story
write the Farben was
IG Farben
of IG was
in
in every
every sense
sense ata by-product
by-product ofof victory
victory in
in the
the war.
war.
'I
I 'I'
I“ *
I’ ‘I
I ‘II'
if ‘I
‘I -II’
-ll’

For help
For in the
help in of finishing
work of
the work this book,
finishing this the author
book, the indebted
is indebted
author is
to Edward
to and Jeannette
Edward and Belle Mayer,
Tenenbaum, Belle
Jeannette Tenenbaum, Loretta April
Mayer, Loretta April
and
and Meredith
Meredith Davis.
l
\ Davis.

l
_ Alexander
Alexander Stevenson
Stevenson and
and Bernard
Bernard Glaser,
Glaser, formerly
formerly members
members of
oi the
the
IG
IG Farben
Farben investigating
investigating team,
team, read
read the
the manuscript
manuscript and
and made
made valu-'
valu-
able
able suggestions.
suggestions.
l
The
The author
author was
was helped
helped in
in many
many ways
Ways by
by Bruce
Bruce Waybui'
Waybur and
and
Russell
Russell Nixon,
Nixon, his
his colleagues
colleagues during
during the
the occupation
occupation of
of Germany.
Germany.

Naturally,
Naturally, the
the author
author bears
bears sole
sole responsibility
responsibility for
for any
any mistakes
mistakes the
the
boek
book may
may contain.
contain.

' V
1
l
\

’f
r
 ERRATUM
Line 6 on Page 61 of this book should read “230”
instead of “320” as it does now.

I‘-"v -»

J /

1;": ll l
' 4. "W .-L
»-,_.
--.-_ 1

1
 TABLE
TABLE OF CONTENTS
OF CONTENTS

l
l

> Chapter
Chapter
11 GERMAN
GERMAN TOURIST GUIDE — 1945
Toumsr Gun)E— 1945 . .
2
2 THE BIRTH
THE BIRTH OF
OF IG
IG . . . . . . 18
3 1925 . . . . . 38
4 SAVIOR . .
THE Savron 53
5 ARMS BY
Anms BY Nrcnr
NIGHT .. . 72
6 THE Quint‘
THE QUIET WAR
WAR . 89
7 BLOODY Hanvnsr
BLOODY HARVEST . . . 113
8 QUESTIONS AND ANSWERS .
AND ANswEns . 127
K9
0 0-\IO\U1rPUO BIG FIGHT IN WALTZ TIME . . 141
10
10 AGAINST THE
AGAINST TIIE NEW
NEW Wonw
WORLD . . 161
ENDING? ——- U.S.A.
11 ENo1NG?——U.S.A. . . 178
ENDING? — GERMANY .
12 ENn1Nc?—GEnMANY . 191
13 To MAKE AMENDS . 215
BRUSH FIRE . .
14 Bnusn 225
APPENDIX
APPENDIX ONE
ONE . 235
APPENDIX
APPENDIX Two
Two . 251
APPENDIX
APPENDIX THREE
THREE . 271
REFERENCES
REFERENCES .. . 303
INDEX . . 306
vii
V11

5
_. "-9-; - '"-— ----..-._._,_
i
l

PREFACE
PREFACE
by
by
Senator Claude
Senator Pepper
Claude Pepper

If
If there
there isis aa man
man living
living who
who would
would dare
dare say
say publicly
publicly
that
that he
he isis not
not for peace, II do
for peace, do not
not know
know where
where toto find
find him.
him.
Yet, in
Yet, in spite the unanimous
of the
spite of for peace,
professions for
unanimous professions when
peace, when
down to
get down
we get
we specific peace
to specific programs, we
and programs,
policies and
peace policies are
we are
confronted with
confronted Bahel-like confusion.
with aa Babel-like There are
confusion. There two reasons
are two reasons
for this.
for we do
First, we
this. First, not all
do not want the
all want same kind
the same peace—-—
of peace-—
kind of
want aa peace
some want
some based upon
peace based international cooperation
upon international and
cooperation and
some want
some want aa peace based upon
peace based of arms;
invincihility of
upon invincibility some
arms; some
A mericana and
Fox Americana
want aa Pox
want some want
and some World State.
want aa World Second,
State. Second,
we do
we do not
not agree
agree on
on what
what are
are the
the real
real causes
causes ofof war.
war.
To build a sound peace, We must be
we must relentless in
be relentless identi- .
in identi-
fying and
fying exposing the
and exposing things that
the things make for
that make war. It
for war. the
is the
It is
merit of
merit of this that it
book that
this book contributes to
it contributes to the insight
necessary insight
the necessary
regards the
as regards
as causes of
the causes of the world war.
Second world
the second book
This book
war. This
story of
is aa story
is of melodramatic industrial intrigue
melodramatic industrial and espionage
intrigue and espionage
building, but
cartel building,
and cartel
and very much
but very than that,
more than
much more is aa
it is
that, it
story of
story what lay
of what behind the
lay behind the German Let it
war. Let
driveto war.
German drive-to be
it be
remembered that
remembered that the Nazi war
the Nazi took shape
menace took
war menace slowly
shape slowly
over aa period
over period ofof years.
years. ItIt took
took various forms of
various forms of diplomatic,
diplomatic,
economic and'
’economic and military pressure. Yet
military pressure. Yet all while, one
the while,
all the master
one master
combine, lG
combine, IG Farben, the German
Farben, the chemical trust,
German chemical representa-
trust, representa-
of the
tive of
tive circle of
inner circle
tight inner
the tight German monopoly,
of German operated
monopoly, operated
behind'the scenes
behindthe give aa constant
to give
scenes to purpose to
and purpose
drive and
constant drive to the
the
Nazi juggernaut.
Nazi juggernaut. -
, ix
ix '
 The German
The German war
war maker,
maker, in
in aa real
real sense,
sense, was
was not
not so
so much
much
Adolph Hitler’s
Adolph Hitler’s brown-shirted,
brown-shirted, swaggering
swaggering storm
storm trooper,
trooper,
as it
as it was
was thethe soberly-clad
soberly-clad superficially
superficially honorable
honorable typc--
type—'
Hjalmar Schacht
Hjalmar Schacht or or Hermann
Hermann Schmitz,
Schmitz, president
president of of IG
IO Far-
Far-
ben. This
ben. This is
is the
the theme
theme of
of the
the book,
book, and
and II believe
believe it
it is
is supported
supported
by the
by the evidence.
evidence. ItIt was
was the
the particular
particular function
function ofof the
the leaders
leaders
of IG
of IG Farben
Farben and and aa handful
handful ofof other
other German
German corporations
corporations
to start
to start preparations
preparations forfor another
another World
world war,
war, just
just asas soon
soon as
as
World War
World War II was
was over.
over. It
It was
was they
they who
who assured
assured Hitler’s
Hitler’s
victory in
victory in Germany
Germany in
in 1933.
1933. And
And it
it was
was they
they who
who set
set the
the
pace in
pace in the
the looting
looting of
of Europe
Europe during
during those
those first
first years
years of
of the
the
war while
war while the
the Wehrmacht
Wehrmacht was
was rolling
rolling over
over conquered
conquered coun-
coun-
tries.
tries.
We are
We are concerned
concerned here
here with
with something
something rather
rather more
more im-
im-
portant
portant than
than the
the allocation
allocation of
of guilt
guilt for
for aa war
war already
already past.
past.
The case
The of IG
case of Farben cannot
IG Farben yet be
cannot yet away in
laid away
be laid the his-
in the his-
torian’s file.
torian’s Farben and
IG Farben
file. IG kind of
the kind
and the cartel practice
of cartel of
practice of
which it
which it was
was the
the most
most dynamic
dynamic specimen
specimen are
are still
still very
very much
much
With us.
with us. They
They still
still constitute
constitute aa threat
threat to
to the
the peace
peace of
of aa world
world
which has not
which has counting the
finished counting
yet finished
not yet of World
dead of
the dead World War II.
War II.
It seems to
It seems that there
me that
to me tendency today
is aa tendency
there is today to who
forget who
to forget
.were
were our and who
enemies and
our enemies were our
who were our allies——to
allies——to forget the
forget the
causes of
causes of the
the last
last war,
war, and,
and, therefore,
therefore, the
the potential
potential causes
causes
of
of the
the next
next war.
war. II do
do not
not maintain
maintain thatthat every
every German
German is is an
an
enemy
enemy andand will
will remain
remain one
one forfor the
the rest
rest of
of time.
time. But
But II do
do
maintain
maintain that
that IG
IG Farbenism
Farbenism is
is an enemy and
an enemy and will
will remain
remain one;
one;
and for
and for the
the evidence
evidence of
of this,
this, II refer
refer you
you to
to this
this book.
book. Here
Here
the evidence
the evidence is
is freshly
freshly and
and convincingly
convincingly set
set out.
out.
Mr. Sasuly
Mr. Sasuly was
was inin aa key
key position
position to
to study
study the
the nature
nature and
and
evidence of
evidence of IG
IO ramifications
ramifications in in the
the political
political as
as well
well as
as the
the
economic field.
economic field. He
He waswas chief
chief of
of financial
financial intelligence
intelligence and
and
liasion of
liasion of the
the Finance
Finance Division
Division ofof United
United States
States Military
Military
Government. He
Government. He was
was one
one of
of the
the investigators
investigators who
who analyzed
analyzed
the files
the files and
and prepared
prepared thethe case
case against
against IG.
IG. As
As you
you will
will see
see
from this
from this book,
book, it
it is
is an
an overwhelming
overwhelming case.
case.
.--“J:
" '1
IG FARBEN
re FARBEN
 II

_‘ _

_:‘__I £

_“\
I

/I_L,/___ I’

~!! \
in
HI_

_L
 '1
German.
German. Tourist
Tourist Guide
Guide
-~ 1945
1945 I'

Deep in
Deep in the
the forests
forests of
of eastern Bavaria the
eastern Bavaria the Nazis
Nazis hid
hid
their
their newest
newest war plants. You
You can pass them on a road and see
nothing. You
nothing. You can
can fly
fly over
over them
them and
and again
again see
see nothing
nothing but
but
the dense
the dense green
green blanket
blanket ofof the
the trees.
trees.
The munitions
The munitions works
works are
are perfectly
perfectly camouflaged.
camouflaged. They
They are
are
painted dirty
painted dirty grays
grays and
and yellows,
yellows, covered
covered byby netting
netting where
where
they stand
they stand in
in small
small clearings.
clearings. Some
Some ofof the
the units
units of
of aa plant
plant
may be
may be underground.
underground. Generally
Generally they
they are
are widely
widely scattered,
scattered,
connected by miles of green pipes. '
Foreign slave
Foreign slave labor
labor built
built and
and operated
operated most
most of
of these
these mu-
mu-
nitions plants
nitions plants under
under the
the management
management of
of IG
IG Farbenindustrie,
Farbenindustrie,
' the
the biggest of German
biggest of German monopolies.
monopolies. Now
Now the
the foreign
foreign slaves
slaves
have gone
have gone home.
home. The
The plants
plants stand
stand dingy
dingy and
and sullen-looking
sullen-looking
——but undamaged.
——but undamaged.
Some of
Some of the
the hidden
hidden factories
factories still
still operate.
operate. They
They make
make aa
variety
variety of
of peacetime
peacetime chemicals; they can
chemicals; they can be
be converted
converted back
back
to war
to war production
production tomorrow.
tomorrow.
~\ Some
Some' are
are idle.
idle. In
In an
an idle
idle factory
factory you
you will
will probably
probably find
find
33

I
 44 [G
IG FARBEN
FARBEN
no
no one but aa German
one but German engineer
engineer making
making aa last
last inventory
inventory of
of the
the
plant. He
plant. He is
is likely
likely to
to be
be aa lonely
lonely and
and depressed
depressed man.
man. He
He did
did
not
not enjoy
enjoy operating
operating the
the factory
factory in
in the
the trees.
trees. The
The units
units were
were
too
too scattered.
scattered. ItIt was
was too
too hard
hard toto keep
keep track
track of
of the foreign
the foreign
slaves; under
slaves; under cover
cover ofof the
the trees,
trees, they
they were
were always
always disappear-I
disappear-
ing for
ing for aa rest.
test. Now
Now thethe engineer
engineer hashas nothing
nothing to
to do
do but
but list
list
equipment in iri a munitions plant which stands empty and de- de
serteclmwaiting,in
serted—-—waiting, 1n the quiet of the forest.
In one
In one clearing
clearing in
in the
the Bavarian
Bavarian woods
woods stands
stands aa half-
half-
completed structure,
completed structure, aa nightmare
nightmare of
of the
the builder’s
builder’s craft.
craft. It
It
might be
might be aa great
great sewer
sewer pipe
pipe lying
lying on
on its
its side
side half
half out
out of
of
the earth,
the earth, but
but it
it is
is far
far too
too big
big for
for that.
that. It
It might
might be
be aa huge
huge
airplane hangar
airplane hangar with
with aa completely
completely arched
arched roof,
roof, but
but it
it is
is too
too
It' is half a mile long, perhaps a hundred
big for that also. It‘
yards wide
yards wide atat ground
ground level,
level, more
more than
than aa hundred
hundred feet
feet high.
high.
It was
It was intended
intended for
for aa Messerschmitt
Messerschmitt airplane plant.
To build
To build the
the plant,
plant, part
part of
of the
the floor
floor of
of aa small
small valley
valley was
was
dllg away.
(lug away. AnAn enormous
enormous massmass of
of sand
sand was
was piled
piled in
in aa long
long
mound in
mound in the
the excavation.
excavation. OnOn top of the sand, two layers of 0f
concrete were
concrete were poured,
poured, reinforced
reinforced with
with steel,
steel, in
in an
an arch
arch twenty
twenty
feet thick.
feet thick. On
On top
top of
of the
the concrete
concrete twenty
twenty feet
feet of
of sod
sod was
was to
to
be piled
be piled with
with trees
trees planted
planted so
so that
that the
the whole
whole structure
structure would
would
seem to
seem to disappear
disappear into
into the
the woods.
woods. Finally,
Finally, the
the sand
sand was
was dug
dug
out from
out from beneath
beneath the
the concrete
concrete and in the vast arched space
remaining all
remaining all the
the machinery
machinery for an airplane factory was to
have been
have been installed.
The building
The building was
was never
never completed;
completed; all
all the
the stages
stages of
of con-
con-
struction can
struction can be
be seen,
seen, as
as if
if diagramed.
diagramed. It
It stands
stands now
now naked
naked
and ugly
and ugly and
and completely-abandoned
completelyehandoned except for a Bavarian
peasant watchman
peasant watchmari and
and occasional
occasional American
American service
service troops
troops
who come
who come up
up in
in trucks
trucks and
and take
take infinitesimal
infinitesimal scoops of
of sand
sand
out of the
out of the huge
huge pile
pile which had been taken from beneath the
the
concrete. The Bavarian watchman looks at it and mutters
concrete. The matters
and calls it
and calls it “the
“the Devil’s
Devil’s work.”
work.” It
It might
might have
have been an answer
to atomic warfare,
to atomic warfare, the
the completely
completely bombproof factory;

".-".--"t
l

GERMAN TOURIST GUIDE—1945

GUlDE—-1945 5
it could hardly
it could hardly have
have been damaged by
been damaged by any
any known
known blockbuster.
blockbuster.
The
The work
work was
was not
not begun
begun until
until August
August of
of 1944.
1944. In
In that
that
month
month American
American troops
troops were
were racing
racing across
across France.
France. Paris
Paris
had been liberated—by its own people. General Eisenhower
thought
thought there
there was
was aa good
good chance
chance of
of ending
ending the
the war
war by
by Sep-
Sep-
tember
tember or
or October.
October. Yet
Yet at
at that
that very
very time
time the
the Germans
Germans started
started
construction
construction of
of aa completely
completely bombproof
bombproof factory
factory and
and pushed
pushed
the
the work
work ahead
ahead with
with terrible
terrible intensity
intensity until
until that
that very
very day
day in
in
. April,
April, 1945,
1945, when
when the
the first
first American
American troops
troops appeared
appeared in in the
the
area.
area. Thousands
Thousands of of slave
slave workers
workers were
were kept
kept at
at the
the job
job in
in
shifts
shifts around
around the
the clock.
clock. SS
SS guards
guards surrounded
surrounded thethe job;
job; near-by
near-by
townspeople
townspeople never
never knew
knew what
what was
was being
being built.
built. In
In aa country
country
scraping
scraping thethe bottom
bottom of its manpower
of its manpower resources,
resources, newnew slave
slave
workers were
workers were thrown
thrown inin as
as fast as others
fast as others died
died or
or were
were killed.
killed.
Defeat loomed
Defeat loomed bigger
bigger with
with each
each crack
crack inin the
the faltering
faltering trans-
trans-
portation
portation system,
system, but
but uncounted
uncounted thousands
thousands of of tons
tons of
of sand
sand
and
and building
building materials
materials were
were brought
brought in
in by
by rail
rail and
and truck.
truck. In
In
eight
eight months
months snatched
snatched from
from thethe end
end of
of the
the war,
war, construction
construction
was
was nearly
nearly half
half finished.
finished.
And
And forfor what?
what? It It might
might have
have been
been organization
organization gone
gone madmad
and
and devouring
devouring itself
itself in
in aa last
last frenzy
frenzy ofof keeping
keeping going
going atat any
any
cost.
cost. It
It might
might have
have been
been hope,
hope, aa hope
hope which
which is
is still
still alive
alive and
and
goes
goes whispering
whispering through
through thethe sullen
sullen andand beaten
beaten land:
land: the
the hope
hope
that
that they
they might
might be be permitted
permitted to to finish
finish the
the job
job toto build
build air-
air-
planes
planes for
for another
another war,
war, aa war
war this
this time
time with
with friends
friends atat their
their
backs,
backs, against
against the
the well-hated
well-hated Russians
Russians in
in the
the East.
East.
Now
Now the
the half-finished
half-finished hulk
hulk is
is another
another one
one of
of Hitler’s
Hitler’s war
war
monuments in the Bavarian woods. It too stands desolate and
still
still along
along with
with the
the munitions
munitions plants,
plants, symbol
symbol of
of aa power
power badly
badly
hurt but not broken, dangerous as the adder, waiting.

The war ended on different days in the part of Germany

captured by
captured by the
the American
American Army.
Army. The
The victorious
victorious troops
troops would
would
pass through
pass through aitown,
a‘town, sometimes
sometimes even without aa fight,
even without fight, and
and
behind them
behind them the
the war
war was
was over.
over. '
 66 ‘ to FARBEN
IG FARBEN
'For the Germans
‘For the Germans the the end
end of
of the
the war
war brought
brought a a feeling
feeling of
of
relief.
relief. American
American troops
troops were
were not
not welcomed
welcomed but but neither
neither were
were
they
they ostensibly
ostensibly hated.
hated. For
For aa long
long time
time there
there had
had been
been no
n0
future for the
the Germans
Germans except
except air raids and
and terror.
terror. Now
Now atat
f ' I

uture for air raids

least there
least there was
was safety.
safety.
The dead
The dead of
of the
the armies
armies lay
lay where
Where they had fallen
they had fallen in
in com-
com-
bat.
bat. In
In every
every town
town there
there were still civilian
were still civilian dead
dead under
under the
the
rubble. But
rubble. But everything
everything had
had stopped,
stopped, there
there were
were no
no shells
shells 01'
01'
bombs to fear, and there was nothing to do. Even German
devotion
d
evotion to
0
to duty
duty could
could step.
stop. In
In cities
cities people
|
people sat
0
sat in
in parks
P arks and
and
l
|

sunned
sunned themselves.
themselves. In
In most
most places
places there
there were
were bomb
bomb craters
l

craters ll
r
I

in
' the
th e parks
parks and
and ruined
ruined buildings
buildings allall around.
around. After
After aa While
l

in while .

. rubble
rubble looks
looks normal.
normal. The
The people
people looking
looking at at the
the rubble
rubble apj
l
8-P’
‘ peared
peared normal.
normal. Compared
Compared to to the
the French
French . they
the Y seemed
seemed well‘
W611;
fed
fed and
and healthy.
healthy . The
The women—mand
wo men——-and what
what fewfew men
men there
there were
were >
l

-wore
--w ore stockings
stock’ings andand leather
leather shoes.
shoes. The
The characteristic
characteristic sound
.

sound |
4

on
on aa French
French street
street had
had been
been the
the clatter
clatter _0f
_of wood-soled
wood-soled shoeb-
sh06='
Most
M 0SlZ of
O f the
llh 6 German cities
G erman C1l1BS were 1‘l.11I1€d.
' ' WGTB ruined.
' In
In the
[I18 zone
ZOIIB 00‘
06'
cupied
cupied by
by the
the American
American armies,
armies, Heidelberg
Heidelber 5 was
was the
th e .only
.0111?, .-

not been
had not badly hit.
been badly At first
hit. At sight it
first sight
.

largettown which
large‘town which had It
seemed
seemed as as if
if decades
decades mustmust pass
pass before
before Germany
German Y could
could ever
BVBE
.
again be a major producer; looking at the ruins of cities it 1t
did
d'id not seem possible ' that factories
° could be intact.
The
The first
first sight
sight was
was deceptive.
deceptive. It
It was
was true
true that
that the
the Germails
Germans
would
would live
live in
in discomfort
discomfort forfor many
many years
years to
to come.
come. But
But houseS
I

housfis
,were
were easier to hit lllt’ and damage than factories;
factories.' Factories W6re
were
0n
on the
the outskirts
outskirts (5fo f IOWHS;
towns,~ the bomb clusters fell mainly in 1n
the centers. Even,when hit, the shell of the factory building
took most of the damage.
d amage. Where the machinery
' was damaged
damflgfid
had done
too, the Germans generally had f as t job
done aa fast ]O o f repair,
' b of rcpt: 11' a
making
making good
good use
use of
of aa tremendous
tremendous over-supply
over-supply of
of machine
\
macblne
tools.
011 the outskirts of Munich, on one of the main roads
On
leadingg into town
leadin town,, was
was aa plant
plant of
of the
the Bavarian
Bavarian Motor
Motor Wvrks
Works r
l

where
where W
jet engmes
engines were made. The
The building
building was
was aa mess“—
I

were made. mess"-

<

(0

p
. =_ \i
L I

GERMAN GUIDE
GERMAN TOURIST GUIDE — 1945
—— - 7 ‘
the roof destroyed,
the roof destroyed, the
the walls
walls partially caved in. Looking at
it,
it, lone
one would
would think
think that here at least was one plant
plant which
which
could
could never!
never, again
again produce
produce for war. On the inside the view
view
was'entir
wasentirelyely different.
different. Revetmen
Revetmentsts had been built around the
blocks
blocks ofof important
important machiner y; the
machinery; the building
building itself
itself had
had taken
taken
the
the whole
whole beating
beating and
and the
the plant
plant had
had never
never stopped
stopped producin
producing g
throughou
throughoutt thethe War.
war.
The
The truth
truth is
is that
that given
given fuel,
fuel, materials
materials,, aa few
few quick
quick repairs,
repairs,
and
and adequate
adequate transport ation, the
transportation, the German
German economy
economy could
could soon
soon
have
have produced
produced at at perhaps
perhaps ninety
ninety per
per cent
cent of
of its
its peak
peak capacity.
capacity.
After
After aa year
year ofof occupatio
occupationn by
by the
the victorious
victorious Allies,
Allies, German
German
productio
productionn waswas still
still generally
generally low.
low. But
But that
that was
was mainly
mainly due
due
to the continuin
continuingg tie-up of coal and transporta tion. And the
transportation.
transport ation system
transportation system had
had been
been hurt
hurt worst
worst by by the
the Germans
Germans
as
as they
they blew
blew upup bridges
bridges and
and destroyed
destroyed roads
roads in in the
the final
final
month of.
month the war.’
of. the war.‘ ''
The
The factories
factories themselve
themselvess looked like factories anywhere
an ywh ere
in
in the
the world.
world. The
T518 fancy
fancy war-built
war-built jobs, hidden away in re-
mote
mote forests
fores t s and
an super-ca mouflaged, were
super-camouflaged, were somethin
somethingg special.
The
The regular
regular industrial plants, backbone of the
the most h'ighly
most highly
concentra ted Eystem
concentrated system of productio
productionn it}
in Europe, could have have
been in Mancheste
0 M .

r, in
H110 B$t6I‘, in Lille,
Lille, or
or in
in Pittsburg
Pittsburgh. Cities, homes,
h. Cities, homes,
farm buildings
buildings,, all
all bear
bear the
the signs
signs of
of national
national culture.
cul ture. But
But
the
the factories
factories are internatio nal. For American
international. Americans s from industrial
centers
centers the
the most
most familiar
familiar sights in Germany were the th e big,
dingy,
dingy, red brick
brilek buildings
buildings,, the long
V
peaked-roof
peaked-ro sheds 9 the
of sheds, the
tall
tall smokestac
smo estackss and
and furnaces and the spur railroad tracks.
The
The only
only things
things missing
missing were the eternal_ clouds of factory
f actory
smoke
smoke and
and the
the crowds
crowds at
at the
the gates
gates when shifts changed.
changed. ItIt
might have been merely a deep depressio
depression.
n. a1
I
I I‘

German
German industry had been the main support of a con- ‘
spiracy
spiracy against
against the
the world
world which
which nearly succeede
succeededd in bring-
ing
ing back an age of mechaniz ed feudalism
mechanized feudalism.. It took the com-
bined strength of the United States, the British Empire, and
I
.-

38 ' is
lG FARBEN
FARBEN

Soviet Russiarfinally to
Soviet Russia=finally to crush
crush the
the armies
armies which
which moved
m0‘/ed onon
the
the wheels
wheels of
of the
the German
German industrial system.'Before the.
industrial system.'Before the end
end
came, the great
came, the great productive
productive forces
forces of
of Germany
Germany had
had been ahle
been £11916
to
to unleash destruction on a scale vaster than anythlng
unleash destruction flnythmg
dreamed of
dreamed of before.
before.
Towering
Towering over
over the rest of
the rest of the German industrial
the German industrial concerlzs
concerris ‘
was the IG
was the IG Farbenindustrie
Farbenindustrie A.G. IG Farben was Germany 5
greatest corporation and the kingpin of the German War
war
effort.
effort.
IG Farben factories were dotted all over the map 0f
of Ger-
Ger"
many. IG Farben’s influence extended far beyond the boundé
bflundé
aries of Germany.
aries of Germany. As
As fast
fast as
'as the Wehrmacht moved forwar
f01‘W3r
. in the years
in the years from
from 1939
1939 toto 1943,
1943, IG
IG Farben
Farben followed
followed C1936
01.056
after picking
after picking up
up control
control of
of plants
plants in
in the
the conquered
conquered counII‘1e5-
countrleS-
Long before
Long before the
the war,
war, Farben
Farhen had acquired E1a largelarge
influence over foreign industries through
measure of influence through tile
fife
shrewd use
shrewd use of
of cartels.
cartels. More
More than
than any other corporatiqn m
any other corpvratkfn 1n
the world,
the world, IG
10 was
was at
at the
the center
center of
of the
the network
network_of international
_of international
cartels which
cartels which control
control aa bewildering
bewildering array
array of
of products
products from
.from
Oil to rubber to dyes to nitrogen to explosives _to
oil to alumlflum
alumlnum
4'
1
to nickel
to nickel to
to synthetic
SYnthetic silks.
silks. It is more than three thousand
miles from
miles frotn the
the headquarters of IG Farben in in Franl<f‘1rt'
Frankfurt‘
on-the-Main in
on-the-Main in Germany to
Germany to the shores of the free and power-
Powep
ful United
ful United States
States of America, but Farben had -a‘a great deal
to say
to say about
about U.
U. S. war production.
Farhen is Interessen Gemeinschaft
The full name of IG Farben Gemeinschétflt
Farbenindustrie Aktiengesellschaft, meaning: “commu1‘lillY_°f
Farbenindustrie “communitYPf
interests of
interests of dye
dye industries,
industries, incorporated.” The “communltx
“c0mmun1ti:
of interests”
of interests” part
part of
of the
the name
name really stood for “monopoly
0r “cartels,” but the men of
or of IG
IG preferred
preferred aa loftier
loftier interpret“
interpreta'
tion. Profeséor Erwin Selck,
tion. Professor Erwin Selck, a member of the supervisory
superviS01'_Y
board of directors, tried to explain it to American invest“
investl'
togetherlfor the
gators: “Community of interest: working togetherfor
common good, co-operation. You understand?”
common understand?” he he said,
said, "1n_d
altd
hi3 grim, death’s head face cracked into a smile. Besides 1115
his 1113 -'
1

wm
 GERMAN TOURIST
GERMAN TOURIST GUIDE -- 1945 ,- 9
._

IG duties, Selck
Selck had
had also
also been
been the
the leader
leadet of
of aa company
company of SS
3!
«1"

I
¢ IG duties, SS
cavalry.
cavalry. '
The
The whole
whole name
name is is deceptively Dyestuffs were
deceptively modest. Dyestulls
only
only aa part
part of
of IG’s
IG’s chemical production. And chemicals werewere
only a part of IG’s total production.
only a part of IG’s total production.
Secrecy
Secrecy shrouded
shrouded every
,|
i every activity of IG Farben
Farben. Even now,
if
after intensive investigatio
after ‘intensive ns, the exact worth of IG Farben
investigations,
iI ' is not known. It is known that the net worth of Farben
amounted
amounted to to more
more than
than six
six billion
I
billion marks at the least. It is
Am-uur— a...‘ 3mwwr¢=za=~u~ n..- 1.x. m. . aw.» qa.-._.._.A4.‘u: .

known that
known that Farben
Farben hadhad aa share,
share, andand generally the 1ion’s
lion’s
share, in
share, in the
the control
control of
of more
more than
than three
three hundred
hundred and
and eighty
eighty
KJ-.1_:4A5-4.!_)-.;r-
-i
I
other German
other German firms.
firms. The
The IG
IG men
men were
were particularly
particularly secretive '
about their foreign connections, but it is established that the
IG Farben
IG Farben world
world organization
organization included
included more
more than five hun-
dred firms
dred abroad.
firms abroad. '
IG Farben
IG lived up
Farben lived up to position as
its position
to its biggest and
the biggest
as the and
Ithacted on
strongest chemical combine in the whole world. Itacted
ac:-nr1—-;-*4-\.._;- -115.*_¢_'»-_
\
aa grand
grand scale.
scale. The IG headquarters in Frankfurt was a mod-
ern building,
ern building, large
large enough
enough for any government department.
The IG was almost a complete empire in itself. It
The It had
had its
its
own
own mines for coal, magnesite, gypsum, and salt. It had its
'1
own coke
own coke ovens
ovens and
and was
was a heavy investor in steel firms.
-_.*--._-.— _4.-_ a;i.4%_-—
When Henry
When Henry Ford
Ford started
started aa branch
branch of
of his
his company
company in
Germany, IG
Germany, IG Farben
Farben snapped
snapped up the bulk of
of the forty per
cent of
cent of the
the stock
stock of
of the
the new
new company
company which Ford offered for
salein
111 Germany;
Germany; Professor
Professm Carl Bosch, first president of IG
-m-en4-—.1‘_-~.
I
l sale
Farben,' oined the
the board
5.1!

fl
-T Farben, joined board of
of the
the German
German Ford Company, andand
, Edsel Ford in turn became a member of the board of the the
then newly formed
then newly Amreican IG
formed Amreican IG Company.
Company. '
As a matter of course, IG Farben had its own house banks
As
and patent
and patent and
and research
research firms, not only all over Germany but.
but
scattered
scattered throughout all the main business centers of the
world.
world. From
From raw
raw materials
materials down to the last detail of sales
organization and
organization and financing,
financing, IG
IG Farben
Farben controlled
controlled everything
it needed.
it needed. .A F;
i
1

\
’*“‘ ’1“?-l I-2l~—-_fl*—<€;':-a%id?;%1

\
it
ti
 1

10 , IG FARBEN
IG FIKRBEN
1
\

In the
the international economic battle
battle which
which takes
takes place
4
In international economic Plafie
cartels, IG
through cartels,
through Farben was
IG Farben able to hold 1tS
than able
more than
was mere to hold 1tS
own against
own world’s most
the world’s
against the most powerful corporations, includ-
powerful corporations, includ-
ing‘Stan‘dard
ingstandard Oil Oil of
of New
New Jersey,
Jersey, Royal
Royal Dutch
Dutch Shell,
Shell, the the 4tt

Company of
Aluminum Company
Aluminum America, the
of America, the British Imperial Chem-
British Imperial Chern-
ical
ical Industries,
Industries, andand DuDu Pont.
Pont. -- -
At the
At end of
the end of the war, the
the war, the connections the Farben
among the
connections among Farben
plants
plants andand offices
oilices had
had broken
broken down, down, along
along with
with everythlng
everythlflg
else Germany. But
in Germany.
else in little real
But little damage had
real damage had been done to
been done to the
the
scattered
scattered factories.
factories. ‘ ’’ ‘I ‘I
By
By the
the estimate
estimate of of IGIG engineers
engineers themselves,
themselves, damage
damage to to 1

plants
plants during
during most
most ofof thethe war
war amounted
amounted to to no
no more
more thaf‘ thafl _, . _r

estl-
1

fifteen per
fifteen cent of
per cent of the productive capacity.
the productive The engineers
capacity. The
.

engineers fish‘ t
i
mated that,
mated that, if
if they
they could
could getget the
the labor
labor and
and fuel
fuel and
and mat¢1"1315*
materials, . i
1
they could
they could bring
bring production
production back back to
to more
more than
than ninety
ninety 1’? Pfir 1

_cent
cent of
of capacity
capacity within
within three months. Only
three months. Only ak
akfew of the
few of the mammill"
plants
plants had
had been
been hurt
hurt and
and these
these almost
almost by
by accident.
accident. The
The great
great -1
<

works
works at
at Ludwigshafen, for example,
Ludwigshafen, for example, suffered
suffered some
some damage,
damage’
but
but mainly
mainly through
through bad
bad luck.
luck. Ludwigshafen
Ludwigshafen happened
happened to
to be
be
across
across the
the river
river fromfrom Mannheim,
Mannheim, wherewhere the the Neckar
Neckar River
1
River
flows
flows into-the
into-the Rhine.
Rhine. The The juncture
juncture of of two
two rivers
rivers is
is aa g00
1
500d 1

landmark
landmark for for fliers.
fliers. Bomber
Bomber crews
crews who
who had had been
been over
over ”Ger-
GQ1“ 1

reorganized at
many often reorganized at Mannh
Mannheim forthe rest
eim forlthe rest of
of the trip- ,
the tI‘1P-
back. If
hack. If they
they still
still had
had bombs,
bombs, Mannheim
Mannheim and and Ludwigshafflfl
Ludwigshafcn
were handy
were handy places
places on on which
which toto jettison
jettison them.
them. Toward
Toward the the
end
end of
of the
the war,
war, somesome of of Lu'dwigshafen’s
Lu'dwigshafen’s production
production had had I0 tO
be shifted to
be shifted to other
other plants.
plants. . _
Synthetic gasoline
Synthetic gasoline and and lubricating
lubricating oils
oils hadhad been
been aa main
mam
target: IG’s
target: IG’s capacity
capacity in in these lines was cut. But the IG syn- 5Yn'
thetic rubber
thetic rubber capacity
capacity was was down
down only
only about
about fifteen
fifteen per
per cent,
cent:
explosives were reduced less than ten per cent, and IG’S IG’5
ability to
ability to make
make greatgreat quantities
quantities ofof light
light metals
metals (aluminum,
(aluminum,
magnesium, nickel),
magnesium, nickel), poison
poison gases,
gases, and
and aa host host of
of chemical
chemical ‘
products was
products was hardly
hardly touched.
touched. Within
Within thethe American occupa-
American occupa-
-.

tlon
tion zone
zone of of Germany
Germany only one IG
only one plant of
IG plant of any
any kind
kind sufferfid
suffered
u.
...
«r

_1i
turf...»

5.

L?
n-"""r"'-1
GERMAN TOURIST
GERMAN TOURIST GUIDE
GUIDE—‘l945
-—-‘I945 14 11
H i
more
more than
than fifty
fifty per
per cent
cent damage,
damage, and
and that
that was
was aa small
small plant
plant .
at Cleebronn
at which made
Cleebronn which colored signal
made colored lights, employing
signal lights, employing
only four
only four hundred
hundred and
and fifty
fifty workers;
workers; the the big
big plants
plants in
in the
the
U. S.
U. S. Zone
Zone were
were virtually
virtually untouched.
untouched. r1
In spite
In spite of
of the
the greatest
greatest efforts
efforts at
at secrecy,
secrecy, IGIG had had been
been too
too
important in
important in the before the
years before
the years to hide
war to
the war its works
hide its from
works from
the eyes of
the eyes world. The
the world.
of the outline of
general outline
The general of what had
it had
what it
meant/for power and
German power
meant/for German what it
and_what done to
had done
it had other
to other
nations was
nations particularly to
known, particularly
was known, U. S.
the U.
to the Treasury and
S. Treasury and
Department of
Department of Justice
Justice investigators
investigators who
who had
had been
been trying
trying to
to
pick up the
pick up skimpy traces
theskimpy IG’s activities.
of IG’s
traces of the suSpicion
And the
activities. And suspicion
IG had
that IG
that successfully weathered
had successfully strategic bombing
weathered strategic and aa
bombing and
short
short campaign
campaign on
on the
the ground
ground quickly
quickly matured.
matured.
IG had
IG “great damage
done great
had done the Allied
to the
damage to It was
Nations. It
Allied Natibns. was
now clear
now power to
the power
that the
clear that to do harm still
do harm almost in-
remained almost
still remained in-
tact. probe thoroughly
To pfobe
tact. To thoroughly workings of
the workings
into the
into IG Fa_rben
of IG Farben
and to
and destroy completely
to destroy completely potentialities for
its potentialities
its war became
for war became
aa top
top priority
priority job
job for
for the
the military
military occupation.
occupation.
For the
For American side,
the American General Eisenhower
side, General delegated the
Eisenhower delegated the
job of
job IG Farben
investigating IG
of investigating the director
to the
Farben to of F
director of mance for
Finance for
the
the U.
U. S.
S. Military
Military Government
Government forces,
forces, Colonel
Colonel Bernard
Bernard Bern-
Bern-
stein.
stein. Colonel
Colonel Bernstein,
Bernstein, who
who had
bad come
come from
from the
the U.
U. S.
S.
Tifeasury to be
Treasury to adviser throughout
financial adviser
Eisenhower’s financial
be Eisenhower’s throughout the
the
campaigns
campaigns inin Africa,
Africa, 'Italy,
‘Italy, "and
and France,
France, undertook
undertook toto or-
or-
ganize
ganize on
on the
the spot
spot one
one of
of the
the more
more motley
motley task
task forces
forces of
of the
the ‘
war.
war. The
The group
group included
included aa few
few civilians
civilians from
from the
the Treasury
Treasury
and
and the
the Department
Department ofof Justice,
Justice, oflicers.from
oflicers.from Army,
Army, Navy,
Navy,
and
and Coast
Coast Guard, 'and G.
Guard,'and G. L’s
I.’s pulled
pulled from
from outfits
outfits in
in all
all parts
parts
of
of the
the world.
world. I .
The
The‘ investigation
investigation ofof IG
IG Farben
Farben began
began almost
almost immediately
immediately
after
after Frankfurt---on-the-Main
Frankfurt-on-the-Main had had been
been captured,
captured, while
while the
the
war
war moved
moved rapidly
rapidly eastward
eastward toward
toward its
its end.
end. With
With the
the smell
smell
of
of smoke
smoke still
still hanging over the
hanging'over the town,
town, the
the investigators
investigators went
went
after
after the
the records
records ofof IG
IG Farhen
Farben. '
There
There was
was nono trouble
trouble finding
finding records
records of
of the
the IG.
IG. Records
Records by
by

' .'
 »

12
12 -u x ‘‘ // IG FARBEN
IG FARBEN
the and by
bale and
the bale the carload
by the for the
there for
were there
carload were the taking. To ‘
taking. To
make
make sense
sense out
out of
of them
them was
was another
another matter.
The main
The headquarters building
main headquarters had not
Frankfurt had
in Frankfurt
building in not been
been
/
hit by the
hit by war. But
the war. was an
there was
But there aftermath of
an aftermath war. In
the war.
of the In
wake of
the wake
the the fighting,
of the foreign slave
the foreign
fighting, the who had
workers who
slave workers had
shanghaied by
been shanghaied
been by the declared themselves
Nazis declared
the Nazis free and
themselves free and
were
were graduated
graduated to
to the
the status
status of
of “displaced
“displaced persons”—-—DP’
persons”—-DP’S-S;
Soon DP’s by
Soon DP’s tens and
the tens
by the hundreds of
and hundreds of thousands on the
were on
thousands were the
move all
move Germany. They
over Germany.
all over wanted more
They wanted than anything
more than anything
else
else to
to gogo home,
home, butbut that
that took
took time,
time, and
and meanwhile
meanwhile they
they
needed food,
needed shelter, fuel.
food, shelter, since, the
Long since,
fuel. Long Germans had
the Germans had
taught them, the
taught them, way, to
hard way,
the hard out for
look out
to look and to
themselves and
for themselves t0
take what
take needed where
they needed
what they could find
they could
where they The 1G
it. The
find it. IG
headquarters
headquarters building
building stood
stood open
open and
and inviting;
inviting; byby way
way 0f
Of
luxury
luxury" it
it had
had aa whole
whole roof
roof and
and walls,
walls, solid
solid floors,
floors, and
and even
even
in the
glass in
glass As many
windows. As
the windows. ten thousand
as ten
many as DP’s made'
thousand DP’s
4
made
'themselves
themselves at
at home
home 1n
in the
the 10
IG building.
building. ‘
' It was
'It cold, that
still cold,
was still Spring of
that Spring of 1945 Germany. There
in Germany.
194-5 in There
was no
was But there
fuel. But
no fuel. countless file
were countless
there were stuffed with
cases stuffed
file cases with
paper.
paper. The
The DP’s
DP’s started
started burning
burning IG IG records
records toto heat
heat the
the
building.
building. '
After
After the
the invasion
invasion by
by DP’s
DP’s came
came the
the expeditionary
expeditionary force
f0r66
of the Big
of the As the
Brass. As
Big Brass. imposing Structure
most imposing
the most the whole
in the
structure in whole
region, the Farben building was quickly
building was marked as
quickly marked as perma-
perma-
nent headquarters
nent for what
headquarters for to become
were to
what were the American
become the American
forces. The
occupying forces. order came
The order clear the
to clear
came to building. A
the building. A
master
master sergeant
sergeant took
took charge
charge of
of the
the cleaning
cleaning operation
operation and
and
Bronze Star
won aa Bronze the job
for the
Star for did. The
he did.
job he procedure was
The procedure was
simple. Furniture,
simple. cases, papers—everyt
file cases,
Furniture, file hing movable—
papers——everything movable——-
were
were carted
carted out
out and
and dumped
dumped in
in great
great piles.
piles. '
The
The IG
IG Farben
Farben investigators
investigators started
started quickly,
quickly, but
but by
by the
the
time
time they
they arrived
arrived they
they found
found papers
papers in
in aa thin layer spread,
thin ‘layer spread,
over
over several
several acres
acres of
of the
the pleasant
pleasant grounds;
grounds; papers
papers were
were ankle
deep'
deep 1n
in the
the rooms,
rooms, knee
knee deep
deep 1n
in the
the halls,
halls, waist
waist deep
deep on
on some
some
of the stairways. _ L _
 P

GUIDE— 1945 .o
GERMAN TOURIST GUIDE--1945 _. 13

It
It proved easier to
proved easier to lay hands on
lay hands on most
most of
of the
the top
top leaders
leaders of
of
IO
IG Farhen
Farben than to make sense out of their records. Many of ‘
them lived in Frankfurt; others had hurried.hurried’ there from
Berlin
Berlin to
to wait
wait for
for the
the American
American occupation.
occupation. For
For important
I
I
important
German
German industrialists
industrialists it
it Was
was aa period
period of
of anxious
anxious guessing.
guessing.
They had little doubt that it was healthiest to get out of the
path
path of
of the
the westward
westward marching
marching Russian
Russian armies.
armies. But
But whom
whom
to
to go
go to,
to, the
the British
British or
or the
the Americans?
Americans? From
From whom,
whom, 1n
in other
other
words,
words, could
could they
they expect
expect the
the easiest,
easiest, therefore
therefore the
the best,
best, treat-
treat-
ment?
ment? For
For whatever
whatever their
their judgment
judgment waswas worth,
worth, the
the bulk
bulk of
of
the
the IG
IG executives
executives decided
decided toto try
try it
it the
the American
American way.
way.
It
It looked
looked to
to start
start with
with as
as if
if they
they had
had made
made aa bad
bad mistake.
mistake.
’ The
The important
important ofiicials
officials were
were rounded
rounded up up and
and jailed
jailed to
to await
await
interrogation.
interrogation. Half
Half aa year
year later
later there
there was
was some
some doubt
doubt _as
_as to
to
whether
whether or
or not
not they
they really
really had
had made
made such
such aa bad
bad mistake
mistake inin
E judgment.
judgment. And
And after
after more
more than
than aa year,
year, the
the issue
issue was
was still
still very
very
much
much in
in doubt.
doubt. With
With the
the occupation
occupation ofof Germany
Germany inits
inits second
I

1. second
I. - year,
year, IG
IG Farhen
Farben was
was still
still not
not finished.
finished.
1
But
But atat least
least the
the first
first inonths
inonths were
were trying
trying for
for aa group
group ofof
1
men
men accustomed
accustomed to to rather
rather different
different treatment.
treatment. Among
Among those
those
jailed
jailed and
and questioned
questioned we're
were Geheimrat
Geheimrat Hermann
Hermann Schmitz,
Schmitz, suc-
suc-
cessor
cessor to
to Carl
Carl Bosch
Bosch as
as president
president of
of the
the IG
IG and
and one
one of
of the
the
great
great powers
powers in
in the
the business
business affairs
affairs of
of the
the world;
world; Dr.
Dr. Max
Max
Ilgner, director of the Finance Department in title, actttally actually
> one
one of
of the
the key
key organisers
organizers in in IG
IG and
and boss
boss of
of the
the IG IG interna-
interna-
tional
tional spy
spy ring;
ring; Dr.
Dr. Georg
Georg vonvon Schnitzler,
Schnitzler, IG’s
IG’s toptop salesman
salesman
and
and front
front man man inin international
international affairs;
affairs; and
and many
many others,.
others,
. including
includingmostmost ofof the
the IGIG, directors.
directors. .
I.
Gradually,
Gradually, out out of
of interrogations
interrogations andand the
the painfully
painfully pieced
pieced
together
together records
records the
the story
story of
of IOIG Farben
Farben began
began toto take
take shape.
shape.
Some
Some ofof the
the directors
directors were
were tough
tough and
and arrogant;
arrogant; somesome began
began
to
to talk.
talk. Specially
Specially hidden,
hidden, confidential
confidential files
files of
of paper
paper began
began
\ to
to turn
turn up.
up. A A few
few were
were buried
buried inin gardens
gardens hack
back- of of homes
homes ofof
\
I the
the directors.
directors. A A few
few were
were found
found among
among empty
empty bottles1n
bottles in the
the
A wine cellar of a country inn. '
 .-
m-
.
14 FARBEN '
[G FARBEN
‘ .
14 IG
The story as
The story emerged had
it emerged
as it bad none the obvious
of the
none of of
horror of
obvious horror
Buchenwald, with
aa Buchenwald, with its chambers and
slaughter chambers
its slaughter unbur1ed .
and unburied
heaps _corpses piled
of .corpses
heaps of stinking on
piled stinking on the ground when
the ground when-the Coal
the coal
supply ran
supply ran out. The story
out. The story of the IG
of the IG was clean. It
quite clean.
was quite was,
It was,
in
in fact,
fact, aa success
success story.
story. The
The leaders
leaders ofof IG
IO Farben
Farhen were
were sharp
sharp
but respectable businessm
but respectable businessmen who had
en who piled up
had piled great wealth
up great wealth
building the
by building
by engine which
the engine drove the
which drove the Nazi war machine
Nazi war machine
along
along the
the road
road toto Buchenwal
Buehenwald._ d.
Without IG
Without Hitler could
Farben Hitler
IG Farhen gone to
have gone
never have
could never war.
to war.
Chemistry was
Chemistry business of
the business
was the IG, but
of IO, chemistry today
but chemistry today
ranges
ranges into
into many
many fields.
fields. IGIG had
had forty-three
forty-three main products.
main products.
Of
Of these,
these, twenty--eight
twenty-eight werewere ofof primary
primary concern
concern to
to the
the Wehr-
Wehr-
macht.
macht. Above
Above all,
all, 10
IG found
found the the way
way toto cut
cut across Germany5
acrossrGcrmany’S
I two
two biggest
biggest shortages,
shortages, oiloil and
and rubber.
rubber. IG IG produced
produced all all of
of
Germany’s
Germany’s synthetic
synthetic rubber.
rubber. It It also
also produced
produced allall of
of Ger-
Ger-
i 0
many’s
many’s lubricating
lubricating oiloil and
and part
part ofof its
its synthetic
synthetic gasoline.
gasoline.
As
As aa matter
matter of
of course,
course, IG
IG Farben
Farben manufactu
manufacturedred the
the greatest
greatest
bulk
bulk of
of German
German explosives.
explosives. ItIt turned
turned out
out ninety
‘ninety per
per cent
cent of
of
the
the plastics.
plastics. And
And itit also
also pioneered
pioneered the
the way
way for
for Germany
Germany in in
r
'the
the field of light metals, again finding the short cuts across acrOSS
German shortage
German shortage ofof raw
raw material.
material.
But production
But production was was only
only aniend-product
an. end-produot in in IG
IG Farben’S
Farhen5
design for
design for war.
war. Along
Along with the rest
with the rest of
of Germany’5 major com-
Germany’s major com- ‘
hines and cartels, IG Farben in the truest sense planned _
b1nes
World War
World War II.II. Long
Long before
before thethe Nazi
Nazi Party
Party had
had left
left the
the lunatic
lunatic
fringe of
fringe of society,
society, the
the industrialists were making
industrialists were making preparations
preparations
for war.
for War. TheThe record
record now
now shows
shows that
that IGIG took
took aa leading
leading pertpart
in
In the preparations. p —.
For
For twelve
twelve years
years it
it was
was possible
possible toto argue
argue over
over the
the reasons
reasons
why
Why Hitler
Hitler was
was able
able to
to take
take power
power inin Germany1n
Germany in 1933.1933', The
The
recordIS
record now clear
is_ now clear on
on this
this point too. Hitler was pushed to ,
the top,
the top, without
Wlthout support of of a majority of the people, by byaa
' coalition
coalition ofof the
the heavy
heavy industry
industry leaders
leaders and
and Junker
Junker militarists.
militarists.
IG Farhen’s
IG Farhen’s partpart in
in -the
rthe operation
Operation can'now
can now be he told
told inin the
the
words of
words of IG
IG oflicials.
officials.
I

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 GERMAN TOURIST
GERMAN TOURIST GUIDE--/1945
GUIDE—i 945 .. 15
15
There is
-There is an
an English
English story
story dating
dating from
from World War I.
World War I. AA
field
field artillery
artillery piece
piece was
was captured
captured from
from the Germans by
the Germans by the
the
English and
English and brought
brought back
back as
as aa monument
monument toto the
the men
men who
who
died capturing
died capturing it.
it. The
The name
name of of the
the maker
maker ofof the
the gun had
gun had
Ibeen
been left on the
left on the name--plate. It was
name-plate. It was Vickers, the Britisharms
Vickers, the British arms
maker.
maker. ' '
Apparently that
Apparently that lesson from World
lesson from World War
War II was never
was never
. learned.
learned. Britain
Britain and
and the United States
the United States fought
fought'1n
in World
World War
War
II
II against
against an
an enemy
enemy whom they had
whom they had helped
helped rearm.
rearm. Even
Even
worse, they went
worse, they went to
to war
war with
with their. own defenses
their. own defenses neglected,
neglected,
as'
as the
the result
result of
of arrangements
arrangements made
made between
between their
their own
own
big
big industrialists
industrialists and
and the businessmen of
the businessmen 0f the
the enemy.
enemy. Here
Here
was
was IG
IG Farben’s
Farben’s greatest
greatest success.
success. More
More than
than any
any other
other cor-
cor-
poration
poration IG
IG sat
sat at
at the
the center
center ofof aa web
web of
of international
international cartel
cartel
agreements.
agreements. How
How cartel
cartel links,
links, covering
covering Europe
Europe and
and stretching
stretching
I across
across the
the Atlantic
Atlantic to
to the
the United
United States
States and
and Latin
Latin America,
America,
became
became aa framework
framework within
within which
which aa war
war took
took shape
shape is
is also
I
I also
part of the record of the investigation of IG Farben.
SpiesL—and
Spies.-—and spyspy scares~—are
scares-—are anan established
established part
part of
of world
world
politics
politics today.
today. IGIG served
served the
the Nazi
Nazi State
State by
by developing
developing aa new
new
system of
system of spies.
spies. The
The Farben
Farben spies
spies were
were good
good because
because they
they
I
were invisible./They
were invisible. They were
were invisible
invisible because
because they
they belonged
belonged
'and
and could
could rightfully
rightfully operate
operate in
in aa respectable
respectable manner:
manner: they
they
were businessmen who
were businessmen picked up
who picked and transmittedvital
up and transmitted vital in-
in-
I|
I
I formation
formation inlthe
in_the normal
normal course
course ofof running
running their
their businesses.
businesses.
Other
Other German
German concerns
concerns used
used the
the same
same device.
device. IGIG Farben
Farben
raised
raised the
the technique
technique to such aa high
to such high point
point that
that its
its spy
spy ring
ring
became
became a.a. key
key weapon
weapon ofof both
both Army
Army Intelligence
Intelligence and
and the
the I
Nazi
Nazi Party.
Party. '‘
For
For all
all these
these and
and other
other services,
services, IG Farben was
IG Farben was well
well paid.
paid.
To each
To each new
new country
country conquered
conquered by
by the
the Wehrmacht,
Wehrmacht, IG
IG sent
sent
representatives who started the work of salvage even as the
battle was
battle was ending.
ending. From
From Norway
Norway toto France,
France, in
in Poland
Poland and
and
Czechoslovakia, IG
Czechoslovakia, IG took
took over
over control
control of
of every
every chemical
chemical plant
plant
of
of importance.
importance. The seized plants
The seized plants were
were immediately
immediately set
set to
to
\

. f' ‘ _

.1-A_wu.- -.uan
 16 IG FARBEN
producing for
work producing
work Nazis to
the Nazis
for the to make
make themthem better able to
better able to
conquer more
conquer countries in
more countries which more
in which could be
plants could
more plants be seized.
seized.
Here, too,
Here, set aa pattern
IG set
too, IG which was
pattern which was followed
followed by the
all the
by all
main
main banking
banking andand industrial concerns of
industrial concerns of Germany.
Germany.
IC
IG was
was paid
paid off
off byby the
the Nazis.
Nazis. Its account with
Its account with thethe United
United
Nations
Nations is is another
another matter.
matter. ThatThat debt cannot be
debt cannot be settled
settled until
untiln.
Farben is
IG Farben
IG wiped out
is wiped out of existence. The
of existence. Allied military
first Allied
The first military
directives
directives made
made it it look
look as as if
if the final settlement
the final settlement wouldwould bebe Ela
quick
quick one.
one. But
But it
it did
did not
not work
work outout that
that way.
way. IGIG Farben
Farben wasWas
not immediatelyy wiped
not immediatel wiped out. out. From
From thethe start
start there was aa counter
there was cbunter
offensive
offensive aimed
aimed at at keeping
keeping it it alive.
alive. After
After more
more than
than aa year
year OfOf
peace,
peace, the
the issue
issue still
still hangs
hangs in in the
the balance.
balance.
Hitler
Hitler had
had only
only oneone chance
chance of of winning
winning the the war
war while
while the
the
fighting
fighting went
went on:
on: aa Split
split between
between the the Allies,
Allies, Great
Great Britain
Britain
and the
and against the
States against
United States
the United Union. He
Soviet Union.
the Soviet lost that
He lost that
f chance
chance because
because thethe Allies
Allies held
held together.
together. Now Now again
again a a Split
Split
is
is the
the main
main chance
chance forfor IGIG Farben
Farben and and the
the rest
rest of
of the
the big
big Ger-
G61“
man
man combines
combines to to stay
stay alive.
alive. If If IC
IG Farben
Farben doesdoes live
live to
to build
build
its
its strength
strength again,
again, it
it will
will be
be because
because it
it has
has been
been held
held out
out as
as
aa Weapon
Weapon for
for another
another war,
war, aa war
war thethe Nazis
Nazis and
and their
their friends
friends
have
have never
never stopped
stopped wanting,
wanting, the
the holy
holy crusade
crusade against
against the
the East-
East-
Certainly
Certainly if
if the
the issue
issue were
were settled
settled by
by plain
plain war
war guilt,
guilt, IG
IG
could
could not
not last
last aa month.
month.
The lessons
The lessons of
of IG
IG Farben
Farben areare worth
worth study.
study. Evidently
Evidently the
the
fear of war did not leave the world as soon as the fighting
stepped in
stopped in World
World War
War II.
II. If
If finding
finding out
out how
how aa war
war was
was made
made
in the
in the past
past will
will help
help prevent
prevent another’
another' war
war inin the
the future,
future, that
then
IC Farben
IG Farben is
is the
the best
best case-study
case-study atat hand.
hand. IGIG is
is aa particula1'tY
particularly
good
good case
case because
because here, perhaps for
here, perhaps for the
the first
first time
time in history,
in history,
aa great
great war-making
war-making corporation
corporation was
was caught in the
caught in the moment
moment Qt
0f
defeat and
defeat and all
all its
its workings
workings were
were laid
laid bare.
bare. Usually,
Usually, the
the
people who make a war are the ones who write about it. '
Out of
Out of the
the story
story of
of how
how IG
IG Farben
Farben developed
developed comes
comes the
the
‘picture of the
picture of the way
way in
in which
which aa whole
whole civilized
civilized nation
nation gave
gave it"
it-
self over to fascism. J
4"

"""'T""'-1
 GERMAN TOURIST GUIDE— I945
GERMAN 1945 17
. I7
It is
It is aa sinister
sinister picture
picture which
which comes
comes too close to home for
comfort. Some
comfort. Some ofof the
the Nazis
Nazis could
could be pushed out of mind as
lunatics. There
lunaties. There was
was nothing
nothing crazy
crazy about the leaders of IG
Farben. Before
Farben. Before the
the war,
war, few
few would
would have
have called them crim-
inals. They
inals. They had
had the
the support
support andand co-operation
co-operation of partners
throughout the
throughout world.
the world.
the story
all, the
Above all,
Above story of IO Farben
of IG is the
Farben is the best at
illustration at
best illustration
hand of
hand how international
of how international cartels monopolies are
and monopolies
cartels and oper-
are oper-
1
I
ated to
ated war.
make war.
to make
1
1

I
I

1
I /

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2
!
I
7r; an..."m—u=.;._ nav-um...» “HG \ .

I
“w-. r»_1-.<-_.,:u-_¢.-= .k_
 I

2
2
I The
The Birth
Birth of IG
of IG

For the
For the better
better part
part of
of six
six thousand
thousand years
years of
of recorded
recorded his-
hi5-
tory,
tory, men
men built
built their
their material
material civilizations
civilizations using
using the
the products
products
of
of nature
nature very
very much
much as
as they
they found
found them.
them. They
They built
built with
with
lumber
lumber and and stone,
stone, wove
wove cloth
cloth from
from icotton
‘cotton and
and Wool.
wool. Even
Even
the
the metals—copper,
metals—copper, bronze, bronze, iron-,—which
iron-,—which determined
determined the the
character
character of of whole
whole cultures
cultures were transformed from
were transformed from oreore bY
by \"
quite
quite simple
simple methods.
methods. ' I I
In
In the
the course
course ofof aa few
few generations,
generations, beginning
beginning with
with the
the first
first
half of the nineteenth century, all this has. hast been changed.
changed-
, Starting
Starting with
with ordinary
ordinary goalcoal itit is
is possible
possible to to make perfumeS
make perfume$
and
and gasoline, dyes and
gasoline, dyes and synthetic'rubber.
synthetierubber. -The 'The main ingredient
main ingredient
of explosives
of explosives cancan bebe drawn
drawn from
from thethe invisible
invisible air
air around uS-
around 11$-
Synthetic rubber
Synthetic rubber cancan bebe made
made from flgom petroleum
petroleum and and from
from
alcohol as
alcohol as well
well as
as from
from coal.
coal. Using the same
Using ithe same basic
basic ingredients
ingrediente
of coal,
of coal, oil,
oil, air,
air, and
and power,
power, literally
literally thousands
thousands of of synthetic
synthetic
textiles and materials can be made.
The revolution
The revolution which
which had
had its
its beginning
beginning here
here is
is as
as sweep"
sweep-
ing
ing in its
in its effects
effects as
as the
the Industrial
Industrial Revolution
Revolution which
which followed
followed
the
the use of
use of steam
steam power
power from
from coal.
coal. The
The effects
effects on
on all
all mantl-
manu-
u

/18
/I8 1
f .
 \ I
I

THE
THE BIRTH
BIRTH OF [G 'I '' .V 19
19 '
I
or to
facturing
facturing areare beyond
beyond calculation.
calculation. But
But even more, the.whole
even more, the. whole
structure
structure of of politics
politics and
and international
international diplomacy
diplomacy IS is changed.
changed.
The
The kinds
kinds of
of power
power politics
politics and
and high
high strategy
strategy which
which domi-domi-
nated
nated international
international relations
relations even
even up
up to
to World
World War
War II II have
have
I
been
been changed
changed radically.
radically. ,»
'' In
In World
_World War
War I,I, it
it was
was possible
possible for
for the
the coalition
coalition of
of powers
powers
headed
headed by by the
the British
British Empire
Empire to to win
win by
by use
use of
of the
the old
old prin-
prin-
I
I
ciple
ciple ofof blockade:oi1
blockade: oil and and rubber
rubber were
were essential
essential for
for war;
war;
I
Germany
Germany had
had no
no natural
natural supplies
supplies of
of either
either oil
oil or
or rubber;
rubber;
I
I it
it was
was possible
possible to to cut
cut her
her off
off from
from the the countries
countries of of supply
supply
from
from raw raw material
material starvation
starvation as as from
from any any other
other cause.
cause.
by
by naval
naval blockade.
blockade. In In the
the end
end Germany
Germany collapsed
collapsed as as much
much
Allied
Allied strategy
strategy for
for World
World WarWar II II was
was essentially
essentially the
the same.
same.
But
But thethe German
German reaction
reaction waswas totally
totally difl'erent.
different. This
This time,
time, to
to
the
the very
very endend ofof six
six years
years of
of struggle,
struggle, the the Germans
Germans did did not
not
seriously
seriously lack lack any
any important
important raw raw material.
material. This
This time
time they
they
made
made theirtheir own—their
own——their own own gasoline,
gasoline, their
their own
own rubber,
rubber, their
their
II own
own synthetic
synthetic cloth.
cloth. They
They had
had coalin
coal in plenty,
plenty, and
and they
they used
used ‘
I
all
all the
the craft
craft and
and arts
arts of
of organic
organic chemistry
chemistry to to transform
transform it it
into
into the
the things
things they
they needed.
needed. '
The
The battle
battle for
for strategic
strategic supply
supply areasareas goes
goes en_demon-
on-—demon-
strated
strated by by trouble
trouble inin the
the undeveloped
undeveloped sections
sections of of the
the world
world
from
from IranIran toto Indonesia.
Indonesia. ButBut now
now it is _only
it is only aa desperate
desperate struggle
struggle
for
for advantages;
advantages; contrcl
control ofof strategic
strategic areas
areas alone
alone can
can nono longer
longer
force
force aa decision
decision in in major
major conflict.
conflict.
It
It was
was Germany
Germany which which showed
showed the the rest
rest ofof the
the world
world howhow
to
to make
make critical
critical raw
raw materials
materials out
out of
of aa sandbox
sandbox and
and aa pile
pile
of
of coal.
coal. And
And itit was
was IGIG Farben
Farben which
which led
led the
the way
way for
for Ger-
Ger-
many.
many. 10
IG, changed
changed chemistry
chemistry from
from pure
pure research
research and
and com-
com-
mercial pill—rolling into
mercial pill-rolling into aa mammoth
mammoth industry
industry affecting every
affecting every
phase
phase of
of civilization.
civilization. Above
Above all,
all, it
it was
was IG
IG which
which turned
turned the
the ,
science
science of
of new
new materials
materials into
into the
the most
most powerful
powerful weapon
weapon of
of
war.
war. _ -, "
4
The
The story
story of
of the
the growth
growth of
of IQ15
IG is also
also the
the st01y
story of
of the de-
the de-
velopment of
velopment of organic
organic chemistry.
chemistry. A
A very
very considerable
considerablepart of
“part of
. 1‘1'
 1

20 -' IG FARBEN
the development of
the development chemistry must
of chemistry must be
be credited
credited to
to IG
IG Farben.
Farben.
Certainly every
Certainly every new
new step
step was
was turned
turned by
by IG
IG into
into both
both aa source
source
of rich
of rich profits
profits and
and an
an addition
addition to
to the
the military
military power
power ofof Ger-
Ger-
many.
many. ''
In the
In the last
last part
part of
of the
the eighteenth
eighteenth century,
century, the
the foundations
foundations
of all
of all modern
modern chemistry
chemistry hadhad been
been laid
laid by
by such
such men
men as
as Lavoi-
Lavoi-
sier and
sier and Priestly
Priestly and
and Gay-Lussac.
Gay-Lussac. These
These men,
men, mainly
mainly French
French
and English,
and English, turned
turned chemistry
chemistry from
from the
the mumbo-jumbo
mumbo-jumbo of of the
the
alchemists to
alchemists to aa scientific
scientific examination
examination of
of the
the materials
materials Of
of
the earth.
the earth. Hand
Hand in
in hand
hand with
with the
the basic
basic research
research went
went com-
com-
mercial developments
mercial developments required
required by
by the
the expanding
expanding Industrial
Industrial
Revolution. For
Revolution. For example,
example, byby 1790
1790 the
the Frenchman
Frenchman Leblanc
Leblanc
had discovered
had discovered aa practical
practical way
way to
to make
make carbonate
carbonate of~
of~ soda,
soda, ‘
the foundation
the foundation of
of the
the huge
huge artificial
artificial alkali
alkali industry
industry essential
essential
to textiles
to textiles and
and other
other major
major industries;
industries; and
and this
this discovery
discovery came
came
scarcely ten
scarcely ten years
years after
after Lavoisier
Lavoisier had
had set
set the
the whole
whole science
science on
on
combustien.
its feet by giving a rational account of combustion.
Although Frenchmen
Although Frenchmen andand Englishmen
Englishmen were
were the
the founders
founders
of chemical
of chemical science
science as
as at
a whole,
whole, it
it was
was in
in Germany
Germany that
that the
the
foundation of organic chemistry was laid. Organic chemistry
means nothing
means nothing more
more than
than the
the chemistry
chemistry ofof carbon
carbon andand its
its
compounds. Carbon,
compounds. Carbon, the
the main
main ingredient
ingredient of
of coal,
coal, and in faet
and in feet
of most things that are burnt for fuel, occurs in all things
enormous, profusion
which live. Corresponding to the enormous’ proftision and com-
plexity of living things, carbon appears in an almost infinite
number of variations and combinations. Slight changes in the
combination of materials which have essentially the same
elements can
elements can make
make substances
substances which
which are
are totally
totally different
different in
in
appearance and use. When investigators had the almost fool- feel-
hardy courage to try to build up the materials of nature in
the laboratory, they found that they could notnot only
only make
make syn-
syn-
thetic materials which were the same as the products of nature
but that sometimes they could makehitherto unknown sub-
stances which were improvements on nature.
the German pioneers in what became in-
One of the first of the‘
1

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'TI“'?"'I
 [G
THE BIRTH OF IG . 21

dustrial
dustrial chemistry
chemistry waswas Justus
Justus von
von Liebig.
Liebig. Liebig
Liebig was
was born
born
in
in Darmstadt
Darmstadt in in western
western Germany
Germany in in 1803.
1803. HisHis father
father was
was aa
drysalter
drysalter and
and dealer
dealer inin colors
colors who
who himself
himself hadhad done
done some
some
I
I
experimenting
experimenting with with his
his products.
products. The
The son
son hadhad shown,
shown, great
great
interest
interest in
in chemistry
chemistry asas aa school
school boy.
boy. He
He went
went through
through all
all the
the
chemical
chemical texts
texts he
he could
could find
find and
and at
at the
the age
age ofof fifteen
fifteen was
was ap-
ap-
prenticed
prenticed for
for aa year
year to
to an
an apothecary.
apothecary. It It is
is said
said that
that Liebig
Liebig
lasted
lasted only
only aa year
year as
as an
an ap0thecary’s
apothecary’s apprentice, having made
apprentice, having made
aa nuisance
nuisance of of himself
himself with
with experimental
experimental explosions
explosions inin the
the
apothecary’s back
apothecary’s back room.
room.
Liebig studied
Liebig studied atat the
the Universities
Universities ofof Bonn
Bonn andand Erlangen.
Erlangen.
These were
These were old
old centers
centers of
of learning,
learning, in
in the
the medieval
medieval tradition
tradition
of classical
of classical scholarship,
scholarship, properly
properly representative
representative of
of aa country
country
still split
still split into
into feudal
feudal principalities
principalities where
where businessmen
businessmen had
had to
to
scramble forfor aa foothold
foothold in
in an
an otherwise
otherwise sleepy
sleepy community
community of of
s
t
I
scramble
I feudal soldiers,
feudal soldiers, handicraftmen,
handicraftmen, andand poorpeasantry.
poor‘peasantry. There
There was
was
II
. no chemistry
no chemistry forfor Liebig
Liebig to
to learn
learn in
in Germany.
Germany. He He had
had toto go
go to
to
I France. Afterwards
France. Afterwards he
he complained
complained that
that the
the wordy
wordy influence
influence of
of
'the
the romantic
romantic philosopher
philosopher Schelling
Schelling had
had cost him two
cost him two years
years of
of
study.
study. In Paris, Liebig
In Paris, Liebig' found
found what
what he
he wanted.
wanted. He
He was
was able
able_
to learn
to learn from
from such
such founders
founders of
of chemistry
chemistry asas Gay-Lussac.
Gay-Lussac.
i
In 1824,
In 1824, Liebig
Liebig went
went back
back to‘
to‘ Germany.
Germany. He He spent
spent the rest of
the rest of
>'
I
his life
his life teaching
teaching other
other Germans
Germans to to be
he chemists.
chemists.
The bulk
7 The bulk of
of Liebig’s
Liehig’s own
own work
work laylay in
in the
the field
field of
of organic
organic
'chemistry.
chemistry. Jointly
Jointly with
with Woehler
Woehler he he published
published aa famous
famous paper
paper
on
on the
the analysis
analysis of
of oil
oil of
of bitter
bitter almonds
almonds (benzaldehyde)
(benzaldehyde) .. It
It was
was
Woehler who,
Woehler who, in
in 1828,
1828, showed
showed that
that urea could be
urea could be made
made in
in the
the
laboratory from
laboratory from evaporation
evaporation of of solutions
solutions ofof ammonium
ammonium cy- cy-
r
I
I anate—without benefit
anate—without benefit of of animal
animal kidneys.
kidneys.
Liebig
Liebig laid
laid the
the basis
basis for
for agricultural
agricultural chemistry.
chemistry. He
He experi-
I

I
experi-
I

!
mented
mented with
with the
the chemistry
chemistry of of different
different foods
foods and
and the
the many
many
tion of
tion of German
German chemists.
chemists. ,,
chemical processes
chemical processes ofof life.
life. But above all,
But above all, he
he trained
trained aa genera-
genera-
Liehig’s pupils, August Wilhelm von Hofmann,
One of Liebig’s
I
I
cut the
cut the beginning
beginning of of the
the trail
trail which
which led,
led, through
through the
the making
making
I
1
z I
I
i
If
 I

22
22 IG FARBEN
IO FARBEN
of dyestuffs, to
of djrestuffs, IG Farben.
to IG Hofmann, too,
Farben. Hofmann, was aa great
too, was teacher-
great teacher-
He led
He his students
led his into the
students into field of
the field It was
tar. It
coal tar.
of coal was the fb-
the fe-
led and
search led
search inspired by
and inspired which built
Hofmann which
by Hofmann IG.
built IG.
first important
Hofmann’s first
Hofmann’s teaching job
important teaching was in
job was England,
in England,
where in
where 1845 he
in 1845 the first
became the
he became of the
director of
first director C01-
Royal Col-
the Royal
of Chemistry.
lege of
lege Hofmannwent back
Chemistry. Hofmannwent the German
to the
back to uni-
German uni-
but not
1864, but
versities in 1864, before one
not before his brightest
of his
one of young
brightest young
English
English proteges touched off
had touched
proteges had revolution in
small revolution
off aa small in-
in in-
dustrial
dustrial history.
history.
Englishman was
young Englishman
The young
The was William Perkin." He
Henry Perkin.’
William Henry He
experimenting with
was experimenting
was by-product of
with aa by-product aniline. He
tar, aniline.
coal tar,
of coal He
that by
found that
found treating aniline
by' treating bichromate of
with bichromate
sulphate with
aniline sulphate 0f
potash he
potash could get
he could beautiful coloring
get aa beautiful which he
material which
coloring material he
mauve. The
called mauve.
called material turned
color material
The color to be
out to
turned out dye:
true dye:
be aa true
it could
is, it
that is,
that could be added to
be added it would
and it
textile and
to aa textile hold its
would hold its
color in
color spite of
in spite aging or
of aging washing or
or washing ‘sunlight. For
or ‘sunlight. first
the first
For the
time, aa synthetic
time, synthetic dye had been
dye had discovered. The
been discovered. discovery W815
The discovery was
made in 1856; Perkin was only eighteen at the time.
at the Within
time. Within
a generation there were literally hundreds of synthetic dyes,
surpassing
surpassing the the old
old vegetable
vegetable and and mineral
mineral dyesdyes in
in brilliance,
brilliance, \
variety,
variety, andand cheapness.
cheapness. Within
Within tenten years
years thethe first
first small
small fac-'
fac-’
tories
tories Which
which laterlater grew
grew into
into IG
IG Farben
Farben hadhad been
been started
started in In
Germany.
Germany. Perkin Perkin himself
himself started
started aa dye
dye works
works but
but the
the in-in-
dustry
dustry diddid not
not take
take hold
hold inin England.
England. ItIt flourished
flourished in in German?-
German)’-
In
In aa true'sense,
truesense, the the dye
dye grew
grew upup at
at the
the cross-roads
cross-roads of of the
the
great
great textile
textile and and steel
steel industi'ies.
industries. Textiles
Textiles hadhad expanded
expanded
hugely as the first direct result of the Industrial Revolution.
With
With expansion
expansion of of textile
textile production
production camecame equal
equal growth
growth 0f Of
the demand for
the demand for dyes.
dyes. AtAt the
the same
same time, the growing iron iren J

industry
industry made made heavy
heavy demands
demands on on coal.
coal. Coal,
Coal, inin aa nearly.
nearly
pure
pure carbon
carbon form form with
with the
the by-products
by-products driven
driven off,
off, was
was needed
needed
to
to reduce
reduce ironiron from
from its
its ores
ores in
in the
the blast
blast furnace.
furnace. Coal
Coal tar tar
was a left-over. It was, in fact, an unpleasant left-over, evil
smelling and looking and hard to get rid of. of, The first efforts
of
of chemists
chemists werewere simply
simply toto find
find ways
ways ofof disposing
disposing ofof coal
coal tar.
tar.

'""'?'""'“'I
_ _...- .:_.A.:.‘_..__—ua.—.—_‘—Eyw—u

THE BIRTH OF
o|= [G
IG ' —A 23
_=. -_\1,._ =.u-1_‘ They
They found
found that
that it
it had
had to be, in
to be, in effect,
effect, boiled
boiled off.
off. They
They also
also
:
learned that different parts of coal tar boiled off at different ‘-
temperatures.
temperatures. And
And when
when the
the varieties
varieties of
of coal
coal tar
tar by-products
by-products
..

were
were isolated
isolated itit turned
turned out out that
that they
they would
would yieldyield anan almost
almost
3
,infinite
1'
infinite variety of further substances. It was Perkin’s dis-
covery,
covery, based
based onon the
the teaching
teaching ofof Liebig
Liebig and
and Hofmann,
Hofmann, which
I
which
J enabled
enabled coal
coal tar
tar research
research andand the
the by-products
by-products of of iron—making
iron-making
I to be turned
to be turned to
to the
the supplying
supplying of dyes for
of dyes for textiles.
textiles.
England made
made textiles
textiles and
and brought
brought inin dyestuffs
dyestuffs fromfrom its
its
I
1
I
I
England
n
r
empire all
empire all over
over the
the world:
world: indigo
indigo boiled
boiled from
from‘ thethe leaves
leaves of
of
the indigo
indigo plant
plant ofof the
the Far
Far East,
East, alizarin
alizarin red
red from
from the
the madder
madder
|
I
1 the
root, scarlet
scarlet dyes
dyes from
from cochineal
cochineal and tin solutions.
solutions. With
t
root, and tin With
English ships
English ships filling
filling allall the
the world’s trade routes,
world’s trade toutes, there
there was
was
no great need to make synthetic dyes. I
Germany had
had coal
coal and
and no
no empire.
empire. And
And so
so German
German scien-
1
Germany scien-
I
tists
tists eXploited
exploited the
the opening
opening made
made by
by Perkin.
Perkin. In
In 1869,
1869, Graehe
Graebe
and
and Liebermann
Liebermann found
found aa way
way to make an
to make an artificial
artificial alizarin
alizarin
from the coal tar product anthracene; Perkin received a
I
patent for
patent for the
the same
same dye
dye one
one day
day later than the
later than the Germans.
Germans. In In
F
1878,
1878, Bayer made aa synthetic
Bayer made synthetic form
form of the king
of the king of
of dyes,
dyes, in-
in-
digo. Even
digo. Even aa dye
dye of
of the
the old
old Mediterranean
Mediterranean world,
world, preserved
preserved
in the
in the lwrappings
,wrappings of
of Egyptian
Egyptian mummies—Tyrian
mummies—Tyrian purple purple
which had
which had once
once been
been squeezed
squeezed laboriously
laboriously from
from the
the juice
juice
of mollusks---was
of molluskSmwas duplicated
duplicated in
in the
the German
German laboratories.
laboratories. And
And '
the German synthetic dyes turned out to be better and cheaper
than
than the
the products
products of
of nature.
nature. ''
Fifty-
Fifty years after Perkin’s revolutionary discovery of
mauve,
mauve, in
in July,
July, '1906,
1906, Carl
Carl Duisberg
Duisberg spoke
spoke at
at aa dinner
dinner in
in
honor of Perkin. Duisberg was the leader of the IG, the great
German
German dye
dye cartel.
cartel. He
He péid
paid tribute
tribute to
to .Germany’s
.Germany’s English
English
benefactor
benefactor and
and gave
gave some
some ofof the
the reasons
reasons for
for Germany’s
Germany’s chem-
chem-
. ical
ical superiority
superiority over
over England.
England. England
England had
had aa wealth
wealth ofof other
other
industries,
industries, he
he said;
said; Germany'had
Germanyhad specialized.
specialized. Germans,
Germans, he
I
he
asserted,
asserted, had
had aa special
special talent
talent for
for chemistry.
chemistry. But
But Duisberg
Duisberg
failed
failed to
to mention
mention much
much of
of his
his story.
story. He
He did
did not
not tell
tell of
of the
the way
way
I

I
.
I

I
I
I
 24
24 IG FARBEN
IO FARBEN

in which
in which German chemistry had
German chemistry borrowed the
had borrowed the work done
work done
in other
in and protected
nations and
other nations with aa special
own with
its own
protected its patent
special patent
system set up
system set in 1877.
up in And above
1877. And all he
above all not tell
did not
he did tell of the
of the
way in
way which Germany,
in which without colonies
nation without
Germany, aa nation and there-
colonies and there-
fore without
fore sources of
assured sources
without assured materials,, had
raw materials
of raw turned to
had turned to
chemistry as
chemistry means of
as aa means raw materials
making raw
of making For Germany,
materials.. For Germany,
synthetics
synthetics were
were the
the wealth
wealth of
of the
the Indies.
Indies.
all stages
At all
At its history,
of its
stages of Farben has
IG Farben
history, 1G the
paralleledd the
has parallele
developme
development of the
nt of whole German
the whole nation with
German nation with striking close-
striking close-
ness. very beginning
Its very
ness. Its beginnings, the super-car
before the
long before
s, long super-cartel had
tel had
even been
even of, occurred
thought of,
been thought as Germany
just as
occurred just Germany itself was.
itself was
developin into aa unified
developingg into unified nation. 1863 the
In 1863
nation. In the Hoechst chem-
Hoechst chem-
ical
ical works started with
were started
works were total staff
with aa total of five
staff of five workers. And
workers. And
in 1865
' in works at
the works
1865 the Ludwigshafen were
at Ludwigshafen started with
were started total
with aa total
of thirty employees.
of thirty employees. These plants became
tiny plants
These tiny the center
became the of
center of
the entire
the empire of
entire empire Farben.
IG Farben.
of IG
It be remembered
will be
It will remembered that was also
it was
that it in the
also in that
1860’s that
the 1860’s
Bismarck took the
Bismarck took major step
the major culminated in
which culminated
step which in 1870 With
1870 with
the
the formation one German
of one
formation of In 1866,
State. In
German State. just as
1866, just in-
the in-
as the
beginning to grow, Bis-
fant German chemical industry was beginning Bis—
marck successfully led
marck successfully led Prussia through the
Prussia through war with
the war Haps-
With Haps-
burg Austria
burg German unification
making German
Austria making unification under
under Prussian rule
Prussian rule
inevitable and paving
inevitable and way for
the way
paving the leadership in
German leadership
for German Eur-
in Eur-
ope. Thus in the space of the same few years there was a
beginning of
beginning both the
of both economic and
the economic the political
and the powers
political powers
which to make
were to
which were the leading
Germany. the
make Germany. force of
leading force world
of world
aggression in
aggression the first
in the half of
first half the twentieth
of the century.
twentieth century.
Before there was
Bismarck there
Before Bismarck no' Germany.
was no‘ Yet by
Germany. Yet 1900
by 1900
Germany climbed to
had climbed
Germany had with Great
parity with
to parity Britain in
Great Britain the
in the
world power politics.
of power
world of was ready
Germany was
politics. Germany make aa bid
to make
ready to bid
for colonial empire.
for colonial Under
empire. Under leadership, the
Prussian leadership,
Prussian German
the German
Army was the
Army was in
strongest in
the strongest the steel-making
German steel-making
world. German
the world.
capacity overtaken that
had overtaken
capacity had of Great
that of Britain and
Great Britain Germany
and Germany
was ready to
was ready race with
enter aa race
to enter England for
with [England supremacy
naval supremacy
for naval
as well.
as well. "' -

E E I.--._.__.r,.
 THE BIRTH
THE IO
BIRTH OF IG 25

Also by 1900,
Also by 1900, and
and in
in the same period of thirty or thirty-
five
five years,
years, the
the German chemical industry had grown from
German chemical
1 nothing
nothing to
to unchall enged world dominan
unchallenged ce. The works
dominance. works at
at Lud-
Lud-
1
1 wigshaf en, known as the Badisch
wigshafen, Badischee Anilin und Soda Fabrik,
by
by 1875
1875 had
had 885
885 workers
workers and a capitali zation of sixteen and
capitalization
aa half
|
|
half million
million marks.
marks. By By 1900 Ludwigs hafen employe
Ludwigshafen employed d 6,700
6,700
workers
workers;; by by 1914
1914 the the staff had grown to 11,000, and the
!
works
works covered
covered fivefive hundred
hundred acres
acres and
and a mile and a half of
river
river front
front where
where the the Neckar meets the Rhine.
Rhine.
The
The Hoechst
Hoechster er Farbwer
Farbwerke ke kept
kept pace. By-1880
By -1880 it had grown
to
to aa point
point where
where it it employe
employed d nearly
nearly 1,900 Workers.
workers. By 1912
it
it employe
employed d 7,700
7,700 workers
workers,, includin
includingg 380 trained chemists
and
and engineer s.
engineers.
Needles
Needlesss to
to say,
say, the
the expansi
expansionon of
of the
the German
German chemica
chemicall in-
in-
dustry
dustry waswas aa highly
highly profitab
l

profitablele process. The Ludwigs hafen

Ludwigshafen
organiza
I

tion in
organization in both
both 1900
1900 and
and 1910
1910 declared dividend
dividendss of
about
about twenty-
twenty-fivefive per
per cent
cent while
while Hoechst
Hoechst in 1910 declared a
F dividen
dividendd of twenty-s
twenty-seveneven per cent. .
The
The key
key to
to the
the great
great expansi
expansionon of the German chemica
chemicall
industry
industry is is seen
seen inin the
the numbers
numbers of technici ans‘empl
technicians oyed. At
employed.
the
the turn
turn ofof the
the century,
century, the six biggest German chemica chemical l
{works employed more than
works employed more than six hundred and fifty trained
chemists
chemists andarid engineers.
engineers. At At the same time, in the entire British
coal tar
coal tar dye
dye industry
industry no
no more
more than
than thirty
thirty or
or forty
forty chemists
chemists
were employed.
were employed.
The scientific
The scientific chemical
chemical training
training inaugurated by Liebig and
Hofmann had
Hofmann had become
become an
an essential
essential part of the whole chemical
industry. The
industry. The menmen trained in the best universities and re-
search institutes
search institutes automatically
automatically turned to the chemical works
for jobs.
for jobs. The
The practical
practical work
work done by the factories became
became an
an
extension of the work done in the laboratory. And
extension of the work done in the laboratory. And the best
men and
men and the
the most
most advanced
advanced work of the industry were turned
back to
back to universities
universities to enrich further the process of research.
Research meant industrial progress. But research also led
Research
to strife
to strife within
within the
the German
German chemical
chemical industry.
industry. The
The products
products

I’/’
 I
I

{.

J‘ 26 . . A |e FARBEN
IG FARBEN

research were
of research
of valuable trade
were valuable well worth
secrets, well
trade secrets, pirating.
worth pirating.
Protection from foreign
Protection from competitors was
foreign competitors by the
given by
was given setting
the setting
up of the
up of patent system
German patent
the German 1877. In
in 1877.
system in the German
fact, the
In fact, German
producers were
producers “to use
able 'to
were able system to
patent system
their patent
use their to squeeze
squeeze
secrets out
secrets foreigners Who
of foreigners
out of enough to
rash enough
were rash
who were apply for
to apply for
patents in
patents But their
Berlin. But
in Berlin. internal strife
own internal
their own was aa more
strife was more
serious business.
serious business. i
In an
In effort to
an effort throat-cutting, aa “Society
eliminate throat-cutting,
to eliminate for the
“Society for the
Protection of
‘ ,Protection Interests of
the Interests
of the Industry of
Chemical Industry
the Chemical
of the Ger-
of Ger-
many” was
many” was created
created in 1884. The
in 1884. The Society wrote aa report
Society wrote to
report t0
‘ the
the Imperial
Imperial Government,
Government, setting
setting forth
forth in
in detail
detail the
the kinds
kinds Of
of
industrial espionage then
industrial espionage then common. were sent
Workers were
Common. Workers into
sent into
plants under
plants instructions from
under instructions to pick'
competitors to
from competitors pickup secrets. .
up secrets.
There
There was
was widespread
widespread bribery
bribery and
and corruption
corruption in
in the
the sale
sale of
of
industrial
industrial secrets.
secrets. EvenEven professional
professional men,
men, engineers
engineers and
and
chemists,
chemists, sold
sold their
their insiders’
insiders’ knowledge.
knowledge. TheThe Society
Society con-
con-
cluded
cluded that
that “L
“'. .. .. the
the only
only solution
solution lies
lies in
in statutory
statutory regula-
regula-
tion,
tion, and
and in
in particular,
particular, through
through the
the extension
extension ofof provisions
provisions
for
for punishment.”
punishment.” 'I
Some
Some anti-espionage
anti-espionage regulations
regulations were in fact
were in fact passed though
passed though
the industry
the industry soon
soon enough
enough took
took steps
steps to
to set
set its
its own
own house
house in
in
order. And
order. And the
the experience
experience gained
gained inin prying
prying out
out other
other people’5
people’s
secrets proved
secrets proved useful
useful inin two
two world
world wars.
wars.
The answer
The answer to
to internal
internal competition,
competition, and
and the
the way
way to
to greater
greater
concentration of control, was of course the building of cartels.
The
The great
great apostle
apostle of
of cartels
cartels in.
in the
the chemical
chemical field
field was
was Dr.
Dr. Carl
Carl
Duisberg.
Duisberg. i
Duisberg
Duisberg was
was aa short,
short, square-built
square-built German,
German, full
full of
of energy
energy
‘and
and plans for organization,
plans for organization, givengiven to
to long and pompous
long and pompous
speeches. He was the German combination of business oper-
ator and trained research man; his list of honorary degrees
filled a substantial paragraph. As head of one of the biggest
chemical
chemical cencerns,
concerns, the
the Elberfelder
Elberfelder works
works at
at Leverkusen,
Leverkusen, he
he
took
took the
the lead
lead in
in setting
setting up
up the
the cartel.
cartel. .. - ‘'
In part,[cartelization
part,lcartelization in chemicals fellowed
followed the usual pat-
 THE BIRTH
THE BIRTH OF
OF IG
IO _ 27
27
tern: to
tern: to maintain
r'naintain prices
prices under
under the complete control
the complete control of
of aa small
small
top group;
top group; to
to eliminate
eliminate competition
competition and
and gain
gain the
the security of
security of
blocked-ofT markets;
blocked-off markets; toto concentrate
concentrate control
control and
and make
make some
some
gains
gains in
in efficiency
efficiency through
through larger
larger scale
scale production.
production. But
But Duis-
Duis-
berg
berg was
was aiming
aiming higher.
higher. German
German steel
steel had
had caught
caught up
up with
with
English
English steel
steel production,
production, aa notable
notable achievement.
achievement. German
German
chemistry
chemistry had
had done
done much
much more;
more; it it had
had outstripped
ou.tstripped the
the world.
t
I world.
Duisberg
Duisberg wanted
wanted nothing
nothing less
less than the consolidation
than the consolidation ofof aa
world empire
empire inin chemicals.
chemicals.
r
I world
I
I
In the
In the years
years around
around 1900
1900 Duisberg
Duisberg made
made many
many speeches
speeches
F. and wrote many reports for
many reports the Imperial
for the Government, strongly
Imperial Government, strongly
.
I
I.
urging cartelization.
urging cartelization. In
In one
one statement,
statement, in
in 1902,
1902, he
he said
said that
that
if the
the proper
proper cartel
cartel were
were organized:
organized:
.I
if
“. .. .. the
“. now existing
the now of the
domination of
existing domination German chemical
the German chemical
industry, especially
industry, especially the
the dye
dye industry,
industry, over
over the
the rest
rest of
of thethe
world would
world would then,
then, in
in my
my opinion,
epinion, be
be assured.”
assured.” x\
The first
The first major
majer step
step was
was taken
taken in
in 1904-.
1904. Six
Six major
major com-
com-
panies had
panies had emerged
emerged to
to dominate
dominate the
the whole
whole field
field of
of chemicals
chemicals
in Germany.
in Germany. These
These were
were now
now organized
organized into
into two
two major
major rings
rings
or cartels.
or cartels. Oneconsisted
Oneconsisted of of the
the great
great Ludwigshafen
Ludwigshafen plant,
plant,
Badische Anilin
Badische Anilin und
und Soda
Soda Fabrik;
Fabrik; Duisberg"s
Duisherg’s ownown concern,
concern,
the Bayer
the Bayer Company
Company of of Leverkusen,
Leverkusen, and and the
the AGFA
AGFA Company
Company
of Berlin.
of Berlin. In
In the
the United
United States
States today
today some
some aspirin
aspirin tablets
tablets ‘
and photographic
and photographic supplies
supplies still
still bear
hear the
the names
names of of Bayer
Bayer
and Agfa.
and Agfa. II 1
The second
The second big
big ring
ring centered
centered in in the
the Hoechst
Hoechst works,
works, on
on the
the
outskirts of
outskirts of Frankfurt-on-the-Main,
Frankfurt-on-the-Main, and and included
included the
the firm
firm ofof
Leopold Cassella
Leopold Cassella '81
'81 Company,
Company, with with Kalle
Kalle. &
81. Company
Company of of
Biebrich swinging
Biebrich swinging into
into the
the same
same system.
system.
I
I . InIn both
both cartels,
cartels, the
the main’
main' terms
terms of of agreement
agreement were
were similar.
similar.
s
A quota
A quota system
system was
was set
set up.
up. Profits
Profits were
were pooled
pooled and
and divided
divided
according to
according to an
an agreed
agreed formula.
formula.
It was
It was at
at this
this time
time that
that the
the term
term “IG”
“IG” came
came into
into common
common
II use to
use to describe
describe the
the German
German dye
dye cartel.
cartel. As
As has
has been
been stated,
stated,
IG stood
steed for
for Interessen
Interessen Gemeinschaft
Gemeinschaft which
which means
means “Com-
“Com-
i
.
I IG
 28
23 IO FARBEN
IG

munity of
munity of Interests”--—one
Interests”—--one way of describing
way of describing a
a cartel.
cartel. There
There
were,
were, certainly,
certainly, other
other major
major cartels
cartels in
in Germany
Germany at
at the
the time.
time.
But
But the
the dye
dye trust
trust had
had achieved
achieved world
world rdomination
domination in its field.
in its field.
It was
It was the
the most
most advanced
advanced specimen
specimen ofof cartel
cartel organization.
organization. It
It
could claim
could claim for
for itself
itself the
the simple
simple designation
designation ofof “IG,”
“IG,” mean-
mean-
ing “THE
ing “THE Cartel.”
Cartel.” Even
Even after
after the
the separate
separate firms
firms making
making upup
the dye
the dye and
and chemical
chemical cartel
cartel were
were organized
organized into
into aa single
single
company in
company in December,
December, 1925,
1925, the
the term
term “IG”
“IG” was
was retained
retained in
in
the new
the new monopoly:
monopoly: IG IG Farbenindustrie,
Farhenindustrie, Inc.
Inc.
Dyestuffs had
Dyestuffs had built
built the
the IG.
IG. The
The dye
dye trade
trade was
was then,
then, and
and
/'
remains, the
remains, the main
main line
line of
of production
production and
and richest
richest source
source of
of
profit. But
profit. But IG
IG was
was rapidly
rapidly widening
widening its
its scope.
scope. The
The hundreds
hundreds
of research
of research chemists
chemists financed
financed byby IG
10 were
were ceaselessly
ceaselessly engaged
engaged
in manipulations
in manipulations of of countless
countless derivatives
derivatives ofof coal
coal tar.
tar. Other
Other
sources of
sources of organic
organic compounds
compounds werewere tried.
tried. It
It was
was aa tireless
tireless
process of
process of burrowing
burrowing along
along the
the trail
trail of
of chemical
chemical combina-
combina-
tions. Everything
tions. Everything waswas tried,
tried, everything
everything recorded,
recorded, nothing
nothing
forgotten.
forgotten. Q
IG took
IG took the
the lead
leadin1n the
the development
development of of photographic
photographic ma- ma-
terials. The
terials. The IG
IG scientists
scientists developed
developed aa rich
rich new
new line
line of
of drugs
drugs
and pharmaceuticals.
and pharmaceuticals. IG IG went
went into
into the
the production
production of of heavy
heavy
industrial chemicals.
industrial chemicals. InIn the
the effort
effort to
to find
find new
new synthetics
synthetics as as
substitutes for
substitutes for rubber,
rubber, oil,
oil, and
and Chilean
Chilean nitrates,
nitrates, IG IG started
started
extensive experiments
extensive experiments in in the
the handling
handling of of chemicals
chemicals under under
high pressures
high pressures and
and temperatures.
temperatures. EvenEven then,
then, ten
ten years
years before
before
the outbreak
the outbreak of of World
World WarWar I, I, the
the plants
plants of
of IG10 were
were busily
busily
engaged with
engaged with what
what would
would become
become major
major production
production problems
prohlems ‘
of the
of the great
great war.
war. ’ '
The work
The workin 1n pharmaceuticals
pharmaceuticals sponsored
sponsored by by IGIG was
was surely
surely
of much
of much benefit
benefit to
to the
the health
health of of mankind.
mankind. -Yet
Yet this
this is
is the
the very
very
field which
field which makes
makes most
most clear
clear the
the way
way in
in which
which thethe operations
operations
of the
of the cartel
cartel work
work againstthe
against the interests
interests of
of people—in
people—in this this case
case
sick people--all
sick people—uall over
over the
the world.
world. ’ _
As in
As in all fast developing fields, trade secrets are of the
greatest importance in the chemical industry. The care with
\

/ I
 THE BIRTH
THE BIRTH OF
OF IG
[G 29
29
which
which IG IG guarded its discoveries
guarded its discoveries is
is duplicated
duplicated inin all
all coun-
coun-
i
tries. For
tries. For example,
example, Williams
Williams Haynes,
Haynes, in in describing
describing early
early
1
American
American research
research in practical forms
in practical forms ofof rubber,
rubber, wrote
wrote about
about
aa pair
pair ofof American
American investigators:
investigators:
“All
“All these proceedings were
these proceedings were deeply
deeply secret.
secret. No
No other
other chem-
chem-
ist
ist had
had been
been allowed within smelling
allowed within smelling distance
distance of
of the
the labora-
labora-
tory. .. .. Like
tory. Like aa couple
couple of
of schoolgirls
schoolgirls talking
talking hog
hog Latin,
Latin, Marks
Marks
and
and Oenslager
Oenslager gabbled
gabbled glibly
glibly in
in chemical
chemical formulas,
formulas, coining
coining
fancy
fancy names
names for
for their
their neW-found
new-found accelerators.
accelerators. .. .. They
They pur-
pur-
chased
chased laboratdry
laboratory reagents
reagents inin distant
distant cities.
cities. .. .. When
When they
they
came
came to to buy
buy regular
regular supplies
supplies of
of chemical
chemical rawraw materials,
materials, they
they
went
went through
through allall the
the furtive
furtive maneouvers
maneouvers of of aa leading
leading citizen
citizen
in
in aa dry
dry State
State ordering
ordering aa case
case of Scotch. They
of Scotch. They spared
spared nono pains
pains
to
to conceal
conceal the
the source
source and
and disguise
disguise thethe contents
contents of of shipments
shipments
of
of raw
raw materials.”
materials.”
I
I
Secrecy may
Secrecy may bebe part the normal
of the
part of conduct of
normal conduct of business.
business.
i
I But
But medicine
medicine is is supposed
supposed toto rise
rise above
above the
the normal
normal conduct
conduct
II
I
of
of business.
business. Germany
Germany was
was the
the center
center of
of the
the advance
advance of
of bac-
bac-
i teriology
teriology andand the
the discovery
discovery of of cures
cures for
for disease,
disease, inin the
the late
late
nineteenth andand early
early twentieth
twentieth centuries.
centuries. And
And aa great
great part
part of of
I

nineteenth
the work
the work done
done by by the
the most
most illustrious
illustrious German
German scientists was
scientists was
hidden
hidden in in the
the laboratories
laboratories of of IGIG and
and used
used by
by IGIG first
first as as aa
source
source ofof rich
rich profit
profit and
and secondly
secondly as as aa weapon
weapon in in war.
war.
Take
Take the
the case
case of of Paul
Paul Ehrlich.
Ehrlich. Ehrlich
Ehrlich was
was the
the perfect
perfect
example
example of of the
the laboratory
laboratory man,
man, not not concerned
concerned with
with business,
business,
endlessly on
endlessly on the
the trail
trail of
of the
the cure
cure ofof diseases.
diseases. HeHe was
was the the
discoverer
discoverer of of salvarsan,
salvarsan, the 606th compound
the 606th compound after
after aa series
series of of
six hundred
six hundred and and fivefive failures.
failures. Salvarsan,
Salvarsan, ofof course,
course, was
was the the
cure
cure for
for syphilis-u-what
syphilis—-—-—what PaulPaul de de Kruif
Kruif called
called “the
“the magic
magic
bullet,”
bullet,” first
first specific
specific drug
drug which
which knocked
knocked outout aa germ
germ without
without
injury to
injury to the
the human
human body.
body. '
But Ehrlich
But Ehrlich worked
worked in in aa laboratory
laboratory near
near Frankfurt,
Frankfurt, pro- pro-
vided
vided for
for him
him by by IG. The IG
IG. The IG patiently
patiently waited
waited and
and continued
continued
to support
to support him
him through
through the
the long
long series
series of unsuccessful experi-
of unsuccessful experi-
ments.
ments. Because
Because when when salvarsan
salvarsan was finally found,
was finally found, IG IG hadhad aa
I
I
I
I
1-.__---—**-—* -

30
so aI '' 10 FARBEN
IG FARBEN
monopoly on
complete monopoly
complete production, the
its production,
on its on the
price on
the price nearly-'
the nearly-
drug was
magic drug
magic But even
high. But
was high. important, when
more important,
even more World
when World
War II began,
War supplies of
all supplies
began, all were cut
salvarsan were
of salvarsan from Great
off from
cut off Great
Britain and
Britain the United
and the Treatment of
States. Treatment
United States. syphilis was
of syphilis was
made
made more Othercrucial drugs
difficult. Othercrucial
more difficult. also cut
were also
drugs were off.
cut off.
Anesthetics were aa German
Anesthetics were monopoly too.
German monopoly too. Surgery
Surgery in the '
in the
United
United States
States and
and Britain
Britain was
was seriously
seriously hampered.
hampered.
The
The efittiqg
cutting off
off of
of deliveries
deliveries fromfrom thethe German
German drug drug mo-mo-
nopoly was
nopoly just an
not just
was not by-product of
accidental by-product
an accidental the blockade.
of the blockade.
It had
It had been
been counted
counted onon by
by the
the leaders
leaders of of IG
IO as
as aa weapon
weapon in in
war. Here
war. Here was
was the
the true
true beginning
beginning of of bacteriological
bacteriological warfare.
warfare.
After World
After World WarWar I, I, IG
IG made
made another
another major
major attempt
attempt to to
1use
use aa healing drug for
healing drug for political ends. Large
political ends. Large parts
parts of Africa
of Africa
were
were almost
almost uninhabitable
uninhabitable because
because of of the
the dread
dread disease—
disease—-
sleeping
sleeping sickness—horne
sickness—-borne by by the
the tsetse
tsetse fly.
fly. IGIG developed
developed
what
what appeared
appeared=to to be
be aa cure
cure for
-for sleeping
sleeping sickness;
sickness; it it was
was
called
called Bayer
Bayer 205205 or
or Germanin.
Germanin. ArmedArmed withwith Bayer
Bayer 205,
205, they
they
approached
approached the
the British,
British, through
through medical
medical channels.
channels. They
They made
made
aa fantastic
fantastic proposal.
proposal. Give
Give us
us back
back African
African colonies,
colonies, they
they
said,
said, and
and we
we will
will give
give you
you Bayer
Bayer 205.
205. The
The proposal
proposal fell
fell
through
through because:
because: a)
a) the
the British
British would
would not
not have
have it;
it; b)
b) the
the great
great
French
French chemist
chemist Fourneau
Fourneau waswas able
able to
to duplicate
duplicate the
the German
German
synthesis;
synthesis; and
and c)c) the
the drug.
drug waswas not
not aa complete
complete success
success any-
any-
way.
way. 1~ ' ,
Then
Then there
there 15
is the
the case
case ofof the
the sulfa
sulfa drugs.
drugs. Sulfanilamide
Sulfanilamide
and
and its
its related
related dmgs
drugs rank
rank with
with the
the greatest
greatest life-savers
life-savers ever
ever
discovered. Thousands upon thousands of lives are now saved
each
each yearby
yearby the
the use
use of
of sulfa
sulfa drugs.
drugs. Yet
Yet it
it is
is highly
highly probable
probable
that the use of sulfanilamide was delayed many years be-
cause it was heId—and
held—and concealed-v—in'the
concealed-.-inthe laboratories of IG.
In
In 1908
1908 aa student
student in
in Vienna
Vienna named
named Paul
Paul Gelmo
Gelmo wrote
wrote his
his
thesis
thesis on
on aa new
new coal
coal tar
tar derivative
derivative called
called para-aminobenzine
para-aminobenzine
sulfonomide; this is what we call sulfanilamide. At that time,
the
the men
men of
of the
the IG
IG Bayer
Bayer laboratories;
laboratories, under
under Dr.Dr. Heinrich
Heinrich I
4

Hoerlein, were doggedly and systematically trying out every I

I

I; ‘-5 ‘Q
I I I

I
I THE BIRTH OF IG
BIRTH oI= 31
3‘
lnew
lnew compound
compound both
both as
as dyes
dyes and
and as
as drugs or germ--killers.
drugs-or germ-killers.
' Anything might be
Anything might be useful;
useful; therefore
therefore they
they tried
tried everything.
everything.
It
It is
is reasonably
reasonably certain that they
certain that they tried
tried out
out Paul
Paul Gelmos
Gelmo’s
chemical.
chemical. It It is
is all
all the
the more certain inasmuch
more certain inasmuch as as aa year
year later,
later,
in 1909,
in 1909, Dr.
Dr. Hoerlein
Hoerlein obtained
obtained aa patent
patent on
on aa brick-red
brick-red dye,
dye,
first of
first of aa series
series ofof new
new sulfonomidc
sulfonomidc dyes.
dyes. Bear
Bear in in mind
mind that
that
the Bayer
the Bayer menmen customarily
customarily tried
tried out
out new
new compounds
compounds both both
as dyes
as dyes and
and asas drugs.
drugs. The
The trail
trail moved
moved even
even closer
closer toto public
public
knowledge of
knowledge of the
the use
use of
of sulfa
sulfa drugs
drugs when
when inin 1913
1913 aa German
German
named Eisenberg
named Eisenberg reported
reported that
that chrysoidine,
chrysoidine, aa brown
brown dye dye
closely related
closely related to to sulfanilamide,
sulfanilamide, destroyed
destroyed certain
certain bacteria.
bacteria.
But at
But at this
this point.a
point.a sudden
sudden andand inexplicable
inexplicable silence
silence settled
settled
over the
over the German
German laboratories.
laboratories.
In 1919
In 1919 two
two Rockefeller
Rockefeller Institute
Institute scientists
scientists in
in the
the United
United
States, Drs.
States, Drs. Heidelberger
Heidelberger andand Jacobs,
Jacobs, made
made some
some independent
independent
progress on
progress on the
the trail
trail of
of the
the sulfa
sulfa drugs,
drugs, but
but nothing
nothing was
was
heard from
heard from Germany.
Germany. Not
Not until
until 1932
1932 was
was the
the next
next step
step taken.
taken.
In that
In that year
year two
two IG
IG men,
men, Drs.
Drs. Mietzsch
Mietzsch and
and Klarer,
Klarer, took
took out
out
aa patent
patent for
for IG
IG on
on an
an orange-red
orange-red dye
dye which
which was
was aa derivative
derivative
of sulfanilamide.
of sulfanilamide. It.was
ILwas called
called aa dye,
dye, it
it looked
looked like
like just
just aa
dye, but,
dye, but, significantly,
significantly, inin America
America itit was
was assigned
assigned toto IG’s
IG’s
drug outlet,
drug outlet, the
the Winthrop
Winthrop Chemical
Chemical Company.
Company. IG 1G called
called the
the
new drug-dye
new drug-dye Streptozon
Streptozon and
and later
later Prontosil,
Prontosil, and
and in
in 1933
1933 aa
Dr. Foerster
Dr. Foerster of
of Duesseldorf
Duesseldorf reported
reported that
that with
with it
it he
he had
had
cured a'child
cured a'child of
of blood
blood poisoning.
poisoning.
Now the
Now the pace
pace of
of development
development quickened.
quickened. A
A top
top IG
1G scientist,
scientist,
Dr. Gerhard
Dr. Gerhard Domagk,
D'omagk, was
was put
put in
in charge
charge of
of Prontosil
Prontosil re-
re-
search. In
search. In February,
February, 1935,
1935, he
he published
published aa paper
paper on
on the
the cure
cure
of disease
of disease with
with chemicals.
chemicals. . '
Great interest
I Great interest was
Was stimulated
stimulatedin1n the
the new
new dyes
dyes which
which could
could
be used
be used as
as drugs.
drugs. The
The French
French bacteriologist
bacteriologist Levadidi
Levadidi asked
asked
for aa sample
for sample ofof Prontosil
Prontosil for
for analysis.
analysis. His
His request
request was
was re-
re-
fused; IG
fused; IG was
'was still
still making
making aa bid
bid for
for aa monopoly
monopoly on on the
the most
most -
powerful disease
powerful disease killers
killers ever
eVer found.
found. Levadidi
Levadidi went with his
went with his
problem
problem toto Fourneau,
Fourneau, the
the same
same man
man who
who had dnplicated Bayer
had duplicated Bayer
 *

32
32 IG
IO FARBEN
FARBEN

205. Again
205. Again Fourneau
Foutfneau succeeded.
succeeded. He He discovered
discovered that
that it
it was
was
not
not Prontosil,
Prontosil, thethe newly
newly patented
patented drug,
drug, which did the
which did the work,
work,
but
but actually
actually its
its main
main constituent.
constituent. This
This main
main constituent
constituent waswas
nothing
nothing other
other than
than sulfanilamide, described by
sulfanilamide, described by the
the Viennese
Viennese
student Gelmo as far back as 1908 and therefore publifi public
property by
property by this
this time.
time.
1G had
IG had been
been holding
holding hack
back from
from thethe public
public of
of the
the whole
whole
world aa great
world great life-saver—hccause
life-saver—because it it wanted
wanted aa product
product which
which
it could
it could patent
patent andand hold
hold exclusively.
exclusively. NowNow the
the game
game was was up-
up.
By 1936
By 1936 the
the sulfa
sulfa drugs
drugs were
were world
world property
property in
in spite
spite of
of I116
the
best efforts
best eiforts of
of IG.1G. But
But it
it is
is difficult,
difficult, and
and painful,
painful, toto try to
try l0
estimate the
estimate the number
number of of lives
lives which
which might
might have
have been
been saved
saved
if sulfanilamide
if sulfanilamide had had not
not been
been buried
buried inin the
the laboratories
laboratories of of
aa vast
vast monopoly
monopoly whichwhich had
had been trying to pick its its own
own most
ITIOSI
profitable
profitable timetime forfor granting
granting new medicines to the public- public.

With World War

With World War I IG came of age.
It middle of the
It was in the middle war, in 1916, that the last
step realize Duisberg’s
step was taken to realize Duisberg’s dream
dream of of one
one big
big cartel
cartel
for
for all
all of German chemistry.
of German chemistry. Soon after the two rings had
been
been forme
formed d in 1904, links were established
established between
between them-
them.
Sharp competition was
Sharp competition was avoided.
avoided. For
For example,
example, synthetic
synthetic in-
digo
digo had just gone into large scale production
had just production and was was anan
especi ally profitable
especially profitable dye.dye. The
The two
two cartels
cartels formed
formed a market-
market-
ing
ing agree ment in
agreement in indigo.
indigo. Under
Under pressure
pressure ofof war
war production,
production,
the
the last obstacles were removed
last obstacles were removed and the six big chemical
chemical
Conce rns were
concerns organized into aa single
were organized IG. Shortly
single IG. Shortly afterwards,
afterwards,
two
two small
smaller companies, Griesheim-Elektron
er companies, Griesheim-Elektron and Farbwerk
Farbwerk
Muehl heim, were
Muchlheim, were brought
brought in, making
making the circle complete. The
complete.
last
last remai ning step,
remaining step, toto merge
merge the companies
companies of of the
the cartel
cartel
into
into one
one single corporation, would
single corporation, would not be taken until 1925.
More important, it
More important, it was
was World
World War I which demonstrated
demonstrated
IG’S
IG’s treme ndous power
tremendous power as a war-maker
war-maker and and itsits great
great share
share
in the direct
direction
ion of Germany. Chemistry
Germany. Chemistry as a whole came
came ofof l
age
age durin
duringg the
the war.
war. As Woodrow
Woodrow Wilson
Wilson said, in in 1919:
1919:

.¢—

.......__
1 .l____--.. *~ ’
I
THE BIRTH
THE BIRTH OF
OF IG
[G ...1 ' 33
33
“The
“The close
close relation
relation between the manufacture
between the manufacture of dyestuffs
of dyestuffs
on the
on the one
one hand
hand and and ofof explosives
explosives on on thethe other,
other, moreover,
moreover,
has given
has given thethe industry
industry an an exceptional
exceptienal significance
significance .. .. .. Ger- Ger-
man chemical
man chemical industry,
industry, withwith which
which we we willwill be
be brought
brought into into
competition, was
competition, was and and may
may well
well be be again
again aa thoroughly
thofoughly knit knit
monopoly,
monopoly, capable capable of of exercising
exercising aa competition
competition of of aa peculiarly
peculiarly
insidious and
insidious and dangerous
dangerous kind.”
kind.”
In
In aa somewhat
somewhat smallerway,
smaller way, all all the
the things
things which
which mademade.IG IG
Farben
Farben the the strongest
strongest propprop ofof the the Nazi
Nazi StateState could
could be be seen
seen
in
in operation
operation during
during WorldWorld WarWar I. I. From
From the the beginning,
beginning, the the
IG
IG scientists
scientists were
were Wellwell aware
aware of of thethe significance
significance of of their
their re-re-
search
search for for war
war purposes.
purposes. As As early
early as as 1884;
1884, Victor
Victor MeyerMeyer
described
described the the skin-blistering
skin-blistering effects
effects of of mustard
mustard gas.
gas. In In 1887,
1887,
i Professor
Professor Baeyer Baeyer gave gave lectures
lectures to to the
the students
students ofof the
the Univer-
Univer-
sity
sity of of Munich
Munich in in which
which he he referred
referred to to the
the military
military value
value of
I
II of
lachrymators—tear.
lachrymators——tear. gas. gas. I
By the Hague Convention before World War 1,. I,, gas war-
fare
fare was was supposedly
supposedly outlawed.
outlawed. The The IG IG prepared
prepared for for aa gasgas
war
war anyway.
anyway.
The
The first
first gasgas attack
attack ofof the
the war.was
war.was delivered
delivered in in April,
April,
1915,
1915, at at Ypres.
Ypres. The The tactical
tactical surprise
surprise achieved
achieved waswas complete.
complete.
No
No otherother single
single blowblow came
came closer
closer to to breaking
breaking through
through the the
stalemate
stalemate of of trench
trench warfare.
warfare. It It isis even
even possible
possible that
that if if gas
gas
had
had beenbeen used
used less
less tentatively
tentatively by by the
the German
German High High Command
Command
aa quick
quick victory
victory could
could have
have been
been won. won. At At the
the least,
least, the the Ger-
Ger-
mans
mans could could havehave reached
reached thethe channel
channel ports. ports. According
According to to ‘-
Major
Major VictorVictor Lefebure,
Lefebure, aa chemical
chemical liaison liaison officer
officer in in thethe
British Army
British Army during
during World
World War War I, I, the
the German
German generals
generals had had
to be
to be prodded
prodded into into gas
gas warfare
warfare by by thethe IG:IG:
“The first
“The first hammer
hammer blow blow inin the the enemy
enemy chemical
chemical campaign
campaign
was aa two-party
was two-party conspiracy,
censpiracy, led led by by world-famous
world-famous scientists
scientists
and
and thethe poWerfuI
powerful IG IG with
with thethe German
German arfny arfny unconvinced-
unconvinced
but
but expectant,
expectant, littlelittle more
more than
than aa willingwilling dupe.”
dupe.”
IG’s
IG’s part
part inin the
the development
development ”of of chemical warfare was
chemical warfare was so so
great that
great that the
the German
German Army Army was was never
never forced
forced to to setset up
up aa

I
I
I
 I

34
34 - [G
IG FARBEN
FARBEN
special chemical warfare
special chemical as had
service, as
warfare service, to be
had to done in
be done the
all the
in all
Allied
Allied armies. took care
IG took
armies. IG the whole
of the
care of gruesome business.
whole gruesome business.
The gases
The themselves were
gases themselves at the
produced at
were produced Hoechst, Agfa,
the Hoechst, Agfa,
and Leverkusen
and plants of
Leverkusen plants The preliminary
IG. The
of IG. research was
preliminary research was
done in
done most respectable
the most
in the surroundings, as
respectable surroundings, as for example in
for example in
the Kaiser
the Wilhelm Institute
Kaiser Wilhelm under the
Institute under the personal guidance of
personal guidance of
the Nobel
the Prize-winning chemist
Nobel Prize-winning Haber, close
chemist Haber, associate of
close associate of
the leadership of
top leadership
the top the 1G.
of the the proper
For the
IG. For training of
proper training of armyarmy
personnel
personnel ata gas gas school
school was was setset up
up atat Leverkusen.
Leverkusen.
merely one
was merely
Gas was
Gas weapon. The
specific weapon.
one specific work of
The work of 1G IG cut
I

cut
across the
across whole field
the whole field of production. In
war production.
of war In hishis memoirs
memoirs
Ludendorff mentions
General Ludendorff
General mentions askingasking the the key leaders of
key leaders of
I
industry,
industry, the the men
men mostmost reSponsible
responsible for for production,
production, to to “join
“join
his
his train”
train” in in 1916.
1916. The The two‘
two‘ whom
whom he he invited
invited were
were Krupp
Krupp von von
u
'Bohlen
Bohlen und und Halbach,
Halbach, the the steel
steel magnate,
magnate, and and Carl
Carl Duisberg.‘
Duisberg.
The
The whole
whole field field of of explosives
explosives became
became IG IG business.
business. With- With-
the IG
out the
out IG the German Army
the German could hardly
Army could fired aa round.
have fired
hardly have round.
I Even
Even more
more important,
important, and and again
again aa direct
direct foreshadowing
foreshadowing of of
IG’s
IG’s role
role in in World
World War War II, II, the miracle-workerss of
the miracle-worker of the
the IG IG
laboratories
laboratories were were 'called
‘called on on to to find
find substitutes
substitutes for for scarce
scarce \
I raw
raw materials.
materials. ‘j
IG’s
IG’s twotwo major
major assignments
assignments were were to to find
find synthetics
synthetics which which ‘
would
would taketake the the place
place of of rubber
rubber and and Chilean
Chilean nitrates.
nitrates. All All
European nations, of course, must import rubber. With
German
German ports ports tightly
tightly shut
shut byby the
the British
British blockade,
blockade, the the rubber
rubber
shortage
shortage in in Germany
Germany became became severe.
severe. The
The submarine
submarine Deutsch-
Deutsch-
land
larzd ran
ran the the blockade
blockade to to Ameriéa
America beforebefore thethe United
United StatesStates
entered
entered the the war;
war; it it took-home
tookhome aa cargo cargo consisting
consisting in in great
great
part
part of of rubber.
rubber. In In spite
spite ofof all
all measures,
measures, however,
however, German German
- trucks
trucks at at the
the end
end ofof World
World WarIWar~I werewere running
running without
without tires. tires.
Duisherg
Duisberg himselfhimself wrotewrote in in 1918:
1918:
“Of all the imported raw materials essential for war, we
lacked
lacked rubber
rubber the the most
most (hiring
dtiring thethe war.”
war.” He He described
described the the
extreme
extreme difficulties
difficulties involved
involved in in finding
finding aa good
good synthetic
synthetic rubber
rubber
and
and then
then summarized
summarized the the partial
partial success
success achieved:
achieved: “. “. .. .. We
We

......w.._7."........‘.
 I

THE BIRTH
THE BIRTH I' or
OF IG
IG 35
as
are now
are now inin the
the position
position of of producing
producing 2000 tons annually,
2000 tons annually,
one-eighth
one-eighth of of our
our peacetime
peacetime requirements.
requirements. .. .. The future will
The future will
show
show whether
whether we we Will be able
will be able .. .. .. to
to compete
compete withwith cheap
cheap
natural rubber.”
natural rubber.” D-
What the
What ,the future
future did
did show
show was
was that
that Duisberg’s
Duisberg’s IG, IG, inin an-
an-
other, larger-scale
other, larger-scale and and far
far more
more mechanized
mechanized war war inin which
which
'rubber
rubber had become an
had become absolute essential,
an absolute essential, waswas able
able toto keep
keep
the
the Wehrmacht entirely rubber-shod
Wehrmacht entirely rubber-shod for for the
the whole
whole six years
six years
of
of the
the war.
war.
Synthetic
Synthetic rubber
rubber was
was only
only aa partial
partial success
success inin World
World War War
I.
I. Nitrogen fixation, however,
Nitrogen fixation, however, waswas anan overwhelming
overwhelming success.
success.
Without it
Without it Germany
Germany mightmight have
have collapsed
collapsed not not in
in four
four years
years
but perhaps
but perhaps in in one.
one. Without
Without nitrates
nitrates there
there were
were nono explosives.
explosives.
By far
By far the
the greatest
greatest source
source ofof nitrates
nitrates forfor the
the world
world waswas thethe
natural deposits.in
natural depositsin Chile.Chile. A A short
short cutcut was
was found
found by by Fritz
Fritz
Haber, who
Haber, who devised
devised aa method
method forfor literally
literally snatching
snatching nitro-
nitro-
gen from
gen from thethe air
air around
around us.us. The
The Haber
Haber method
method was was put
put into
into
large-scale operation by the IG.
Again Carl
Again Carl Duisberg
Duisberg reports
reports the
the success
success of of the
the IG.
IG. Experi-
Experi-
- ments to make explosives from the Haber process ammoniac,
he said,
he said, “.
“. .. .. were
were developed
developed at at the
the insistence
insistence ofof the explo-
the explo-
sives manufacturer Duttenhofer, who died in 1903, andfwho
perceived as
perceived as early
early as
as the
the turniof
turn'of the
the century
century thethe danger
danger in in
aa coming
coming warwar that
that Germany
Germany could
could be
be cut
cut off
off from
from the
the Chilean
Chilean
nitrate supply,
nitrate supply, and
and thus
thus from the most
from the most important
important material
material
for.
for. the
the manufacture
manufacture of of munitions.
munitions. The
The Badische
Badische ammoniac
ammoniac
factory
factory in
in Oppau
Oppau was
was ready
ready for
for production'
production‘ in in 1914.
1914. .. .”
.”
Thus,
Thus, even
even before
before 1914,
1914, IGIG was
was already
already being
being assigned
assigned the
the
role
role of
of the
the organization
organization whose
whose business
business itit was
was toto see
see to
to it
it that
that
Germany
Germany was was ready
ready to
to fight
fight world
world wars.
wars.
Also
Also atat this
this early date, IG
early date, IG was
was developing
developing its its own
own special
special
kind of war without guns—economic
guns——economic warfare.
Although
Although it
it had
had never
never been
been difficult
difficult to
to see,
see, World
World War
War II
made
made painfully
painfully clear
clear that
that aa strong
strong chemical
chemical industry
industry was
was aa
Weapon
Weapon ofof war.
war. Yet
Yet both
both England
England and and the
the United
United States
States en-
en-
 36
36 [G FARBEN
IG FARBEN
tered World
tered World War while chemical
War II while was still
monopoly was
chemical monopoly in
still in
German hands.
hands. The weakness of
The weakness the British
of the and American
British and American
.chemical
chemical industries
industries was
was in large part
in large part the
the work
work ofof IG.
IG. This
This
was highly profitable
was highly for IG,
work for
profitable work it was
but it
IG, but political
also political
was also
work.
work.
As far
As back as
far back the 1880’s
as the aggressiveness of
the aggressiveness
1880’s the German
the German
of the
chemical industry
chemical industry was throwing its
was throwing weight into
its weight inter-
the inter-
into the
national political
national political balance. German dye
The German
balance. The dye makers had run
makers had run
British producers
British into the
producers into ground by
the ground double~barreled use
by aa double-barreled of
use of
patents. English
patents. patents filed
English patents Germany were
in Germany
filed in were simply pirated
simply pirated
by the
by Germans in
the Germans in collusion with their
collusion with own Patent
their own Office.
Patent Office.
On the
On other hand,
the other German patents
hand, German were not
patents were honored
only honored
hot only
in England,
in England, butbut the producers, by
German producers,
the German refusing to
by refusing issue
to issue
licenses to the
licenses to forced them
British, forced
the British, them to depend on
to depend importation
on importation
of the
of German products.
the German short-range and
In short-range
products. In purely economic
and purely economic
terms, little
terms, little harm done to
was done
harm was industry—except to
British industry——except
to British to
the hopeful
the hopeful makers Eyes. The
of dyes.
makers of textile industry
The textile the
was the
industry was
great consumer
great consumer of dyestuffs, and
of dyestuffs, textiles completely
and textiles over-
completely over-
shadowed the
shadowed the chemical, industry in
chemical industry importance; the
in importance; textile
the textile
manufacturers were
manufacturers interested simply
were interested simply in cheap
reasonably cheap
in 3a reasonably
supply from any
dyes from
of dyes
supply of sources.
any sources.
importarit. In
But the political implications were more important.
Chamberlain-bfather of Neville Chamberlain,
1883 Joseph Chamberlain-—father
policy—pointed
himself the champion of an aggressive trade p0licy——pointed
'chemical industry was
[of the German ‘chemical
out that the policy ,of
». _.... . u: .a..__.t.
actually part of an economic attack which, if carried further,
could
could ruin
ruin the
the basic
basic industries
industries of
of aa nation.
nation. He
He declared
declared that—
that—— . \

“.
“. .. . under the present law it would have been possible, 4;__. . ¢._. t

for
for instance,
instance, for
for the
the German
German inventor
inventor ofof the
the hot
hot blast
blast furnace,
furnace, ‘I

if
if he
he had
had chosen
chosen to
to refuse
refuse aa license
license in
in England,
England, to
to have
have de-
de- I:

stroyed almost the whole iron industry of this country and 5

to
to carry
carry the
the business
business bodily
bodily over
over to
to Germany.
Germany. Although
Although that!
1
that’ -‘I

did
did not
not happen
happen inin the
the case
case of
of the
the hot
hot blast
blast industry, it had I
actually
actually happened
happened in in the
the manufacture
manufacture of of artificial
artificial colors
colors
connected
connected with
with coal
coal products.
products. .. .”
.”
‘MAMA . .M... _.-4 4;...

A15) ..
A5’) ._ I, I -t_. _. _d. _x
 [G
THE BIRTH OF IG 37
The budding American
The budding American chemical
chemical industry
industry was
was also
also blighted
blighted
by the'Germans
by the‘Germans in in the
the years
years preceding
preceding World
World War War I.I. One
One
weapon used
weapon used was
was price
price cutting.
cutting. Over
Over aa period
period of of ten
ten years,
years,
from 1903
from 1903 toto 1913,
1913, thethe German
German producers
producers soldsold salicylic
salicylic
acid, for
acid, for example,
example, for
for twenty-five
twenty-five per
per cent
cent less
less in
in the
the United
United
States than
States than they
they did
did at
at home
home inin Germany.
Germany. The
The same
same was
was true
true
of bromine,
of bromine, oxalic
oxalic acid,
acid, aniline,
aniline, and
and other
other products.
products. A A similar
similar
device used
device used was
was “full-line
“full-line forcing.”
forcing.” That
That is,
is, to
to obtain
obtain aa par-
par-
ticularly desirable
ticularly desirable product
product made
made by
by German
German firms,
firms, American
American
dealers had
dealers had to
to buy
buy the
the full
full line
line of
of their
their products.
products. American
American
producers were
producers were thus
thus frozen
frozen out.
out.
When World
When Worltl War
War II began,
began, itit became
became apparent
apparent that
that the
the
foreign agencies
foreign agencies ofof IG
1G could
could be
be used
used as
as the
the makings
makings of of aa spy
spy
service. Following
service. Following American
American entry
entry into
into the
the war,
war, the
the Alien
Alien
Property Custodian
Property Custodian seized
seized the
the German
German firms
firms and
and discovered
discovered
that they
that they had
had been
been sending
sending back
back toto Berlin
Berlin detailed
detailed reports
reports
on practically
on practically every
every aspect
aspect of
of American
American business
business concerns.
concerns.
They had
They had also
also used
used their’
their’American foothold'to spread
American footholdto spread Ger-
Ger-
man propaganda.
man propaganda. In In both
both respects
respects the
the IG
IG was
was starting
starting onon aa
course which
course which came
came to
to its
its zenith
zenith twenty
twenty years
years later.
later. _
At the
At the close
close ofof World
World WarWar I,I, IG
1G had
had not
not reached
reached itsits full
full
strength and
strength and power,
power, but
but it
it was
was already
already aa major
major source
source of of
aggression. The
aggression. The British
British chemical
chemical liaison
liaison officer,
officer, Victor
Victor Lefe-
Lefe-
bure, in his book, The Riddle of the Rhine, wrote: ~ -
“Here we
“Here we have
have an
an organization,
organization, the
the IG,
IG, whose
whose sinister
sinister pre-
pre-
war ramifications
war ramifications dominated
dominated the the world
world by
by their
their hold
hold onon the
the
supply of
supply of organic
organic chemicals
chemicals vital
vital for
for peace
peace and and war.
war. This
This
organization functioned,
organization functioned, in in aa sense,
sense, as
as the
the life
life blood
blood of of
German offensive
German offensive warfare.
warfare. German
German sources
sources tell
tell us
us very
very little
little
of the
of the war
war activities
activities and
and future
future significance
significance of of the
the IG.
IG. AA veil
veil
of secrecy
of secrecy seems
seems toto be
be cast
cast over
over the
the whole
whole matter,
matter, but
but behind
behind
this veil
this veil must
must exist
exist an
an acute
acute realization
realization of
of the
the value
value ofof thethe
IG as
IG as aa trump
trump card
card for
for the
the future.”
future.”
The facts
The facts could
could plainly
plainly enough
enough bebe seen.
seen. But
But there
there were
were
few to
few to see
see them.
them.
 3
3
Nineteen Twenty-five
Nineteen Twenty-five

. After
After November,
November, 1918,
1918, the
the war was lost,
war was lost, the
the troops
troops went
went
home—and in
home—-and in the
the factories
factories and
and Workshops
workshops and
and laboratories
laboratories
of Germany
of Germany another
another war
war was
was started.
started.
The war
The war had
had been
been lost,
lost, but
but IG
IG and
and the
the steel
steel mills
mills of
of the
the
Ruhr and
Ruhr and all_the
all'the rest
rest of
of German
German industry
industry remained.
remained. UnderUnder
the economic
the economic leadership
leadership of of Walther
Walther Rathenau
Rathenau muchmuch hadhad been
been
learned during
learned during World
World WarWar I.I. It
It took
took six
six years,
years, through
through the the
\period
period ofof the
the Stinnes
Stinnes bubble
bubble and
and the
the inflation,
inflation, to to test
test and
and
prove that
prove that knowledge.
knowledge. And And then
then Germany,
Germany, with with its
its cartels
cartels
and monopolies
and monopolies in in the
the lead,
lead, was
was ready
ready toto start
start again
again with
with
another bid
another bid for
for world
world power.
power. ' -
German industrialists
German industrialists had
had been
been trained
trainedin In aa hard
hard school.
school.
They had
They had started
started late.
late. They
They had
had had
had to
to push
push and
and scramble
scramble
for every foothold in world markets. And their resources were
meager. They
meager. They could
could not
not build
build'in
1n peace
peace and
and quiet,
quiet, protected
protected
by broad
by' broad oceans with an undeveloped continent to draw on,
as was the case in America.
casein - ‘
As
As long
long as
as the
the expanding
expanding force
force of
of business drives ahead
business drives ahead
faster than markets can open up, the Germans will be eco-
. 38.
38

cm
 \

NINETEEN TWENTY-FIVE :I 39
nomio
nomic aggressors
aggressors because
because they,
they. haye
have most
most to
to gain
gain from change.
from change.
And economic
And economic aggression
aggression will
will break
break out
out periodically
periodically into
into
war.
war.
What German businessmen do, businessmen of all nations
' do
do as
as well.
well. But
But the
the Germans
Germans do _do it harder. This
it harder. This is
is true
true of
of cartel
cartel
building, industrial
building, espionage, and
industrial espionage, sharp trading,
and sharp trading, the
the influ-
influ-
ence
ence ofof Big
Big Business
Business in
in government
government and and the
the conscious
conscious useuse of
of
war
war toto gain
gain economic
economic ends.
ends. The
The picture
picture of
of TC
IG Farben
Farben andand the
the
rest
rest ofof German
German industry
industry isis not
not just
just aa picture of Germany.
It is
It is aa picture-of
picture-of Big
Big Business
Business asas aa whole,
whole, but
but Big
Big Business
Business
operating under
operating under extreme
extreme tension
tension where
where the
the ordinary
ordinary lines
lines of
of
trade do
trade do not
not offer
offer enough
enough hope
hope of
of profit
profit and
and growth.
growth.
I‘ The
The military
military and
and industrial
industrial leaders
leaders of
of Germany
Germany came
came out
out
of one
of one world
world war
war entirely
entirely prepared
prepared toto start‘
start thinking
thinking about
about
another. They
another. They had
had reason
reason to
to believe
believe that
that they
they had
had made
made aa
good showing
good showing on
on the
the first
first try.
try. They
.They thought
thought they
they knew
knew where
where
they had
they had gone
gone wrong,
wrong, and
and they
they were
were ready
ready to to correct
correct their
their
mistakes.
mistakes. - '
The military men concentrated on the problems of the prop-
er techniques
er techniques toto force
force _a_a quick
quick decision,
decision, toto avoid
avoid twotwo front
front
fighting, to develop break-throughs and encirclement, and they
eventually came
eventually came out
out withthe
with'the blueprint
blueprint forfor Blitzkrieg.
Blitzkrieg. ForFor
the businessmen
the businessmen two two problems
problems werewere more
more important
important thanthan
anything else.
anything else. First
First ofof all
all there
there was
was the
the matter
matter of of self-
self- .
sufficiency. Germany
sufficiency. Germany had had cracked
cracked upup for
for lack
lack of
of critical
critical raw
raw
materials. It
materials. It became
became above
above allall the
the job
job of
of IG
IG Farben
Farhen to to make
make
Germany self-sufficient;
Germany self-sufficient; it it was
was the
the old
old question
question of
of chemistry
chemistry '
instead of
instead of colonies.
colonies. Secondly,
Secondly, there
there had
had toto be
be still
still greater
greater
consolidation and tighter control over the whole economy.
Germany had
Germany had led
led the
the world
world inin cartel
cartel building
building before
before World
World
War I. In the course of the war, it had achieved even more
concentration. The
concentration. The lessons
lessons learned
learned here
here were
were carried
carried forward;
forward;
they led
they in only
led in only fifteen years to fascism. .
The war-time
The war-time co-ordinator
co-ordinator of of the
the German
German economy
economy had had
been Walther
been Walther Rathenau.
Rathenau. Rathenau
Rathenau waswas one
one of
of the
the more
more re-
re-
‘

\
 40 IG FARBEN
IO FARBEN

figures of
markahle figures
markable Germany during
of Germany World War
during World War I. I. The son
The son
founder of
the founder
of the
of the giant
of the A.E.C. (the
concern A.E.G.
electric concern
giant electric Ger-
(the Ger-
General Electric
man General
man Company), he
Electric Company), became the
himself became
he himself the
chairman of
chairman of the electric trust.
the electric second generation
As aa second
trust. As indus-
generation indus-
Rathenau had
trialist, Rathenau
trialist, some of
had some of the knocked off,
edges knocked
rough edges
the rough off,
more given
was more
was speculation on
philosophic speculation
to philosophic
given to future of
the future
on the of
than to
business than
business pushing from
to pushing scratch for
from scratch place in
for aa place sun.
the sun.
in the
Rathenau was
When Rathenau
When put in
first put
was first charge of
in charge of the German war
the German war
economy, he
economy, he ran head on
ran head on into opposition from
into opposition from the established
the established
bureaucracy. He
German bureaucracy.
German cubby-holed in
was cubby-holed
He was one small
in one office
small office
in the
in Office. By
War Office.
the War By the end of
the end war his
the war
of the organization
his organization
blocks of
whole blocks
covered whole
covered buildings.
of buildings.
tackled one
Rathenau tackled
Rathenau industry at
one industry time. He
at aa time. He started with
started with
and steel,
iron and
iron moved to
steel, moved metals as
to metals whole, then
'as aa whole, then to chemicals,
to chemicals,
and then
and and rubber.
leather and
to leather
then to rubber. For industry aa complete
each industry
For each complete
created. In
was created.
cartel was
cartel case of
the case
In the steel this
of steel relatively
was relatively
this was
the major
easy; the
easy; producers were
major producers were already cartels and
in cartels
already in the
and the
outsiders could
outsiders could be in. In
forced in.
be forced chemicals it
In chemicals was even
it was easier.
even easier.
As we
As have seen
we have before, the
seen before, chemical industry
the chemical industry was able
well able
was well
to of its
care of
take care
to take consolidation and
own consolidation
its own and in 1916 the
in 1916 com-
the com-
IG was
plete IG
plete formed. In
was formed. Rathenau was
fact, Rathenau
In fact, to draw
able to
was able draw
some of
some assistants from
leading assistants
his leading
of his from the One of
IG.’ One
the IG. chief
his chief
of his
in charge
aides in
aides organizational matters
of organizational
charge of Hermann
was Hermann
matters was
Schmitz, one
Schmitz, of the
one of coming men
the coming men of the IG.
of the Ultimately Schmitz
IC. Ultimately Schmitz
succeeded Carl
succeeded Duisberg as
Carl Duisberg president of
as president Farben and
IG Farben
of IG was
and was
still number one
the number
still the man in
one man in IG the end
at the
IG at of World
end of II.
War II.
World War
Where an
Where industry had
an industry had not eartelized and
been cartelized
not been individual
the individual
and the
producers were
producers inclined to
still inclined
were still their own
go their
to go Rathenau
ways, Rathenau
own ways,
organize. Supplies
forced them to organize. materials were
Supplies of raw materials
production quotas
controlled, prices were fixed, and production
rigidly controlled,
.
1,____.__‘_.

established.
established.
To get
To maximum output,
the maximum
get the Rathenau started
output, Rathenau designating
started designating
particular plants
. particular for special
plants for special jobs which had
jobs which be done.
to be
had to This
done. This
breaking down of secrecy,
inspection of books, the breaking
led to inspection secrecy, and
mm-

handling of whole sections

the handling sections of industry regardless
industry as a unit regardless

=""7"-'1
 ‘I

NINETEEN TWENTY-FIVE
NINETEEN TWENTY-FIVE ‘ 41
41
of plant
of plant lines,
lines, thereby
thereby" paving
paving the
the way
way forfor even
even further
further car-car-
telization after
telization after the
the war.
war.
Rathenau himself
Rathenau himself was was convinced
convinced that that Germany
Germany would would
never again
never again move
move away
away from
from the
the war
war system
system he he had
had helped
helped
to shape.
to shape. AndAnd while
while he he had
had some
some notions
notions about
about inheritance
inheritance
laws and
laws and speculators
speculators whichwhich his
his associates
associates thought
thought peculiar,
peculiar,
he was
he businessman. In
“sound” businessman.
was aa “sound” In spite
spite of the tight
of the centrali-
tight centrali-
zation of the German war
the German war economy, business was
economy, business still in
was still the
in the
hands of
hands businessmen. Rathenau’s
of businessmen. Rathenau’s chief assistants were
chief assistants were
industrial leaders
industrial Hermann Schmitz
like Hermann
leaders like Schmitz of the dye
0f the trust
dye trust
rather than
rather servants or
civil servants
than civil army officers.
or army However, the
officers. However, old-
the old-
fashioned kind
fashioned kind of competition was
of competition was out. Rathenau wrote
out. Rathenau wrote
shortly after
shortly after World
World War War I:
I:
“We are
, “We confronted by
are confronted by significant upheavals in
significant upheavals in economic
economic
structure and
structure thought. The
and thought. The war, since 'in
which since
war, which its nature
in its nature was was
political, was
political, was an event of
an event of world revolutionary character,
world revolutionary character,
[which] shattered
[which] theeconomic and
shattered the-economic order of
social order
and social Eur-
of Eur-
ope. . . From the ruins will arise
ruins will Communist State
neither aa Communist
arise neither State
nor aa system
nor play to
free play
allowing free
system allowing the economic
to the forces. In
economic forces. In
enterprise the
enterprise individual Will
the individual be given
not be
will not greater latitude;
given greater latitude;
on the
on other hand,
the other activity will
individualistic activity
hand, individualistic be consciously
will be consciously
accorded aa part
accorded in an
part in working for
structure working
economic structure
an economic for Society
Society
as
as aa Whole.
whole. .. .”
.”
What Rathenau
What is talking
Rathenau is under aa light
about, under
talking about, mist of
light mist of
verbiage, is
verbiage, completely cartelized
is aa completely State. Given
cartelized State. further de-
Given further de-
velopment with
velopment strong dose
with aa strong police brutality
of police
dose of and creation
brutality and creation
of phony “race
of aa phony it is
science,” it
“race science,” Nazi State.
is aa Nazi State. ' I
Shrewd business
Shrewd leaders in
business leaders later years
in later praised Rathenau
years praised Rathenau
for his Eoresight.
for his himself did
he himself
But he
foresight. But not live
did not observe the
to observe
live to the
outcome of
outcome predictions. He
his predictions.
of his courageous, or
was courageous,
He was or rash,
rash,
enough to
enough responsible posts
take responsible
to take the new
in the
posts in Weimar Republic.
new Weimar Republic.
was first
He was Minister for
first Minister Reconstruction and
for Reconstruction then Foreign
and then Foreign
Minister. As
Minister. he became
such he
As such for the
target for
became aa target terrorist gangs
the terrorist gangs
of free-booters,
of fore-runners of
free-hooters, fore-runners Hitler’s Storm
of Hitler’s Troops, who
Storm Troops, who
roamed Germany
roamed War I,
World War
after World
Germany after and he
I, and was assassinated.
he was assassinated.
 %

42 "' 1I - IG FARBEN
-lG
Further
Further consolidation
consolidation of German industry
of German industry was on the
was on the
way. Out
way. Out of
of the
the dislocation
dislocation of
of aa world
world war,
war, large
large ideas
ideas were
were
emerging. Perhaps
emerging. Perhaps the
the largest
largest ideas,
ideas, and
and the
the ones
ones which
which
came
came nearest
nearest to to immediate
immediate fulfillment,
fulfillment, werewere those
those dreamed
dreamed
up
up by
by aa swashbucklngr industrial pirate
swashbuckling industrial named Hugo
pirate named Stinnes.
Hugo Stinnes.
The later growth
The later growth of of IO
IG Farhen
Farben waswas strongly
strongly marked
marked by by the
the
course
course which
which Stinnes
Stinnes set.
set.
Stinnes
Stinnes in in his
his lifetime
lifetime diddid well
well enough
enough in in Germany.
Germany. But But
he
he would
would probably
probably havehave enjoyed
enjoyed himself
himself more
more in in the
the America
America
of
of the
the late
late nineteenth
nineteenth century.
century. He He was
was the
the ideal
ideal manman toto spec-
spec-
ulate
ulate in
in the
the building
building of of railroads
railroads toto span
span anan entire
entire continent.
continent.
' He
He would
would have have appreciated
appreciated Jay Jay Gould’s
Gould’s attempt
attempt to get aa
to get
corner on
corner on the
the whole
whole gold
gold market.
market. Stinnes
Stinnes himself
himself aimed
aimed at at
nothing
nothing less less than
than getting
getting aa corner
corner onon the
the whole
whole of of Germany.
Germany.
I1 Hugo
Hugo Stinnes
Stinnes was
was possessed
possessed of of tremendous
tremendous energy
energy andand ap-ap-
parently unlimited
parently unlimited ambition.
ambition. His His family
family had had been
been prom-
prom-
inent in
inent in the
the coal
coal industry
industry of of the
the Ruhr
Ruhr for
for several
several generations.
generations.
Stinnes started
Stinnes started on on the
the road
road to to expansion
expansion in in the
the 1890’s
1890’s by by
buying
buying aa groupgroup of of coal
coal mines.
mines. Next
Next hehe formed
formed the the German-
German-
Luxembourg
Luxembourg Mining
Mining 'and
‘and Smelting
Smelting Company,
Company, Starting
starting with
with
aa dozen
dozen coal
coal and
and iron
iron mines,
mines, aa few
few smelters
smelters and
and furnaces,
furnaces,
and
and aa capital
capital of
of one
one million
million marstWithin
marks..Within ten
ten years
years the
the new
new
Stinnes
Stinnes company
company had
had run
run its
its capital
capital up
up to
to seventy--five million
seventy-five million
marks
marks and
and controlled
controlled a
a chain
chain of
of mines
mines and
and steel
steel works
works
throughout
throughout the
the Rhineland
Rhineland and
and Westphalia.
Westphalia. '
Stinnes’
Stinnes’ second
second big
big undertaking,
undertaking, and
and again
again it
it was
was started
started
before
before 1900
1900 and
and before
before Stinnes
Stinnes himself
himself was
was thirty
thirty years
years old,
old,
was
was the
the‘ Rhenish-Westphalian
Rhenish-Westphalian Electric
Electric Works.
Works. This
This concern
concern
furnished
furnished gas,gas, electricity,
electricity, and
and water
water for
fer twenty-five
twenty-five Ruhr
Ruhr
communities.
communities. Stinnes
Stinnes bought
bought up
up municipal
municipal officials
officials with
with gifts
gifts
of stock and
of stock and directorships
directorships and soon controlled the bulk of
the
the street
street car and narrow gauge railroads in the Rtlhl‘. Ruhr. At
the
the same
same time
time he
he expanded
expanded his
his family’3
family’s fleet of Rhine river
barges into the greatest on the Rhine, the Elbe, and the Oder Oder.
During
During the
the war
war years
years Stinnes
Stinnes emerged as an
emerged as’ an international
international
.1... flunmwwa /‘ld n

/ cur-u.¢,»v
,
NINETEEN TWENTY-FIVE I' - 43
figure.
figure. HeHe became
became one one of
of the
the leaders
leaders inin Rathenau’s
Rathenau’s Raw Raw Ma-
Ma-
terial Bureau
terial Bureau in in Berlin
Berlin andand aa close
close personal
personal adviser
adviser toto Lu-
Lu-
dendoril.
dendorlf. A A generation
generation in in advance
advance of of his
his times,
times, Stinnes
Stinnes setset
the
the pattern
pattern for
for Hitler’5
Hitler’s handling
handling of the economies
of the economies of of con-
con-
quered
quered nations.
nations. He He directed
directed thethe taking
taking over
over ofof mining
mining andand
steel
steel making
making in in occupied
occupied portions
portions of of France
France and and‘ Belgium;
Belgium;
he
he directed
directed removal
removal of of machinery,
machinery, and and hehe was
was responsible
responsible
for
for sending
sending thousands
thousands of of workers
workers from
from the
the occupied
occupied territory
territory
to
to work
work in
in German
German industry.
industry. Stinnes
Stinnes never
never lost
lost his
his taste
taste for
for
annexation.
annexation. ToTo thethe last,
last, he
he looked
looked uponupon thethe coal
coal and
and iron
iron
industries
industries of
of Belgium
Belgium and and France
France as as his
his own
own territory
territory and
and
made at
made three attempts
least three
at least war to
the war
after the
attempts after to organize com-
organize_com-
panies which
panies would have
which would up the
swallowed up
have swallowed formerly occupied
the formerly occupied
properties. He
properties. would have
He would thoroughly appreciated
have thoroughly the skill
appreciated the skill
with which
with Farben picked
IG Farhen
which IG foreign loot
up foreign
picked up during World
loot during World
War II.
War II.
With the
With end of
the end World War
of World War I, Stinnes’ acquisitions
I, Stinnes acquisitions in- in-
creased to
creased where they
point where
to aa point hardly be
could hardly
they could be counted.
counted. ItIt
'was estimated that
was estimated that his included more
finally included
empire finally
his empire more than
than
fifteen hundred
fifteen firms, with
different firms,
hundred different with the number of
the number of workers
workers
who were
who under his
were under ultimate control
his ultimate approaching aa million.
control approaching million.
Nothihg was
Nothing was too afield, too
far afield,
too far big or
too big or too small, for
too Small, for Stinnes’
Stinnes’
appetite. He
appetite. swallowed up
He swallowed hotels and
up hotels restaurants, news-
and restaurants, news-
papers, lumber
papers, mills and
lumber mills steamship lines
forests, steamship
and forests, and ship-
lines and ship-
yards. His
yards. His interests
interests spread
spread to to Austria,
Austria, Sweden,
Sweden, Denmark,
Denmark,
Italy, Spain,
Italy, Spain, Brazil,
Brazil, and
and finally
finally the the Dutch
Dutch EastEast Indies.
Indies.
In fall of
the fall
In the Stinnes was
1921 Stinnes
of 1921 able to
was able together what
put together
to put what
was even
was even for
for him
him the
the trust
trust toto end
end allall trusts.
trusts. It It was
was called
called
the Siemens-Rheinelbe-Schuchert
the Siemens-Rheinelbe—Schuchert Union. Union. He He hadhad already
already
engineered aa merger
engineered merger ofof major
major coalcoal and
and iron
iron concerns
concerns to to make
make
the Rheinelbe
the Rheinelbe Union.
Union. Siemens-Schuchert
Siemens-Schuchert representedrepresented the the only
only_
considerable rival of the German General Electric Company,
the A.E.G.,
the A.E.G., in in the
the electric
electric field.
field. Siemens-Schuchert
Siemens-Schuchert was was aa great
great
horizontal trust;
horizontal trust; that
that is,
is, it
it included
included many many firmsfirms in in the
the same
same
field. But
field. But it
it was
was weak
weak inin that
that it
it did
did not
not control
control itsits own
own supplies
supplies
I-1,-_._____-..__ .
~_

44
44 IG FARBEN
[G FARBEN

fuel and
of fuel
of materials. Stinnes
raw materials.
and raw about the
brought about
Stinnes brought merger
the merger
of Siemens-S
of Siemens-Schuchert Rheinelbe. He
and Rheinelbe.
chuchert and He then controlled aa
then controlled
which was
trust which
trust horizontal and
both horizontal
was both vertical, on
and vertical, on aa scale far
scale far
anything ever
beyond anything
beyond before seen
ever before Germany, an
in Germany,
seen in absolutely
an absolutely
self-suflicient empire—a worthy
self-suflicient empire—a forerunner of
worthy forerunner IG.
of IG.
Stinnes was
Stinnes was more than an
more than awe-inSpiring'spectaele for
an awe-inspiringspectacle other
for other
industrial operators.
German industrial
German methods had
His methods
operators. His lasting in-
had aa lasting in-
fluence. And
fluence. because he
And because operated in
he operated haste and
great haste
in great there-
and there-
fore with
fore concealment, his
little concealment,
with little methods are
his methods easy to
are easy to see.
see.
It is
It no secret
is no Business is
Big Business
that Big
secret that deep in
is deep politics the
in politics the
world over.
world over. Stinnes the need
saw the
Stinnes saw control to
political control
for political
need for pro-
to pro-
tect his
tect his economic and jumped
empire and
economic empire politics with
into politics
jumped into both
with both
feet. He
feet. ran for,
He ran was elected
and was
for, and to, the
elected to, Reichstag. Much
the Reichstag. Much
more important, he
more important, systematic bid
madea systematic
he madea for control
bid for control of public
of public
opinion. He
opinion. He started buying up
started buying newspapers so
up newspapers so fast it is
that it
fast that is
even possible
even that at
possible that time he
one time
at one controlled most
he controlled most of Ger-
the Ger-
of the
man press.
man To fortify
press. To fortify the of his
position of
the position papers he
his papers he bought
bought
paper-pulp works,
into lumber mills, paper-pulp works, and houses.
printing houses.
and printing
Setting aa course
Setting followed by
course followed Farben and
IG Farben
by IG all of
and all German
of German
Big Stinnes threw
Business, Stinnes
Big Business, the support
threw the of his
support of his papers behind
papers behind
monarehist and
monarchist ultra-nationalist groups.
and ultra-nationalist groups. In the Berlin
In the mu-
Berlin mu-
nicipal elections of
nicipal elections of 1921, example, the
for example,
1921, for Stinnes press
the Stinnes was
press was
credited with having
credited with caused the
having caused Democrats to
and Democrats
Socialists and
the Socialists to
lose 100,000 votes
lose 100,000 to the
votes to Right Wing
the Right parties.
Wing parties.
In his effect
In his on German
effect on foreign policy
German foreign Stinnes also
policy Stinnes paved
also paved
the for aa whole
way for
the way generation of
whole generation of German business—inelud-
German business—includ-
ing above
ing IG Farbcn.
all IG
above all the end
Toward the
Farben. Toward of World
end of War I,
World War I,
Stinnes is credited with having been one of the high ranking
advisers who held out longest against seeking. peace in any
form. To
form. To the he hoped
end he
the end permanent annexation
for permanent
hoped for annexation of the
of the
Belgian coal and
Belgian coal industries. After
iron industries.
and iron the war
After the he had
war he agents
had agents
in all the Central European countries and owned newspapers newspapers
in Prague, Budapest, and Vienna; the object, of course, was
aggressive support
aggressive support of German influence
of German and German
influence and trade.
German trade.
Stinnes in 1924.
died in
Stinnes died Within aa year
1924‘. Within year his was being
empire was
his empire being

lf
,-
"0-’ "1 _
NINETEEN TWENTY-FIV
NINETEEN TWENTY-FIVEE 45
45

parceled out
parceled out by receivership set
by aa receivership by Hjalmar
up by
set up Schacht
Hjalmar Schacht
head of
as head
as Reichsbank. The
the Reichsbank.
of the turned out
empire turned
Stinnes empire
The Stinnes out
to have
to been the
have been bubble.
Stinnes bubble.
the Stinnes
very general
In very
In terms, it
general terms, may be
it may said (without
be said explaining
(without explaining
anything) that
anything) that Stinnes’ broke up
holdings broke
Stinnes’ holdings after his
up after death
his death
because they
because they were unwieldy and
too unwieldy
were too dispersed for
too dispersed
and too his
for his
sons to
sons handle. Or
to handle. could be
it could
Or it that the
said that
be said weakness
fatal weakness
the fatal
lack of
was lack
was capital, so
working capital,
of working the collapse
that the
so that followed
collapse followed
refusal of
refusal of credit sons by
Stinnes’ sons
to Stinnes’
credit to the big
by the German banks
big German hanks
late in
late 1924. Actually,
in 1924. neither the
Actually, neither the rise the fall
nor the
rise nor Hugo
of Hugo
fall of
makes sense
Stinnes makes
Stinnes except in
sense except in relation German infla-
the German
to the
relation to infla-
tion. It
tion. was the
It was inflation which
the inflation possible the
made possible
which made growth of
the growth of
from merely
Stinnes from
Stinnes another big-time
merely another juggler of
big-time juggler industrial
of industrial
into aa colossus.
fortunes into
fortunes Equally, it
colossus. Equally, it was inflation as
the inflation
was the much
as much
example of
the example
as the
as of Stinnes possible the
which-made possible
Stinnes which-made final
the final
consolidations of
consolidations 0f IG Farben and
IG Farben other German
the other
and the monop-
German monop-
olies in
olies preparation for
in preparation the all-out
for the against the
assault against
all-out assault rest
the rest
of world.
the world.
of the
The inflation in
The inflation after the
Germany after
in Germany war was
first war
the first one
was one of
of
the strange
the phenomena of
economic phenomena
strange economic times. It
our times.
of our caused
It caused as
as
much misery for
much misery German people
the German
for the the war
as the
people as itself.
war itself. It
It
provided economists_with
provided for dozens
field for
economistsiwith aa field of
dozens of books of
books ex-
of ex-
planation. And
planation. dealt aa fatal
it dealt
And it small
to small
blow to
fatal blow business and
business and
the German
the classes, leaving
middle classes,
German middle great
the great
leaving the trusts with aa
trusts with
field. Hitler,
clear field.
clear with his
Hitler, with to aa dislocated
appeal to
his appeal middle
dislocated middle
class—his invention
' class—his of aa crazy
invention of mixture of
crazy mixture scape-goats,
of scape-goats,
attacks on
demagogic attacks
demagogic big capitalism,
on big bitter fighting
and bitter
capitalism, and with
fighting with
the working
the class parties
working class the streets
on the
parties on as well
streets as as in
well as beer
the beer
in the
halls—was probably more
halls——was'probably product of
more aa product the inflation
of the than,
inflation than,
directly, of
directly, World War
of World itself.
War II itself.
formal sense
In aa formal
In inflation started
the inflation
sense the the very
with the
started with begin-
very begin-
of the
ning of
. ning On July
war. On
the war. 1914, the
31, 1914-,
July 31, suspended
Reichshank suspended
the Reichsbank
conversion of
conversion of notes gold. Before
to gold.
notes to was over,
August was
Before August the
over, the
volume of
volume of notes circulation had
in circulation
notes in jumped two
had jumped two billion marks.
billion marks.
the inflation
Before the
Before over, nine
was over,
inflation was later, there
years later,
nine years were
there were
 1

46
46 [G
IG FARBEN
FARBEN
ninety-three
ninety-three trillion
trillion paper
paper marks
marks in
in circulation.
circulation. This is the
This is the
kind of
kind of figure
figure which
which the‘
the. mind
mind cannot
cannot properly
properly grasp,
grasp, like
like
calculations
calculations connected
connected with
with atomic
atomic power.
power. It
It may
may reveal
reveal more
more
to
to say
say that
that by
by the
the beginning
beginning ofof 1923,
1923, the
the U.
U. S.
S. dollar
dollar was
was
quoted
quoted at
at sixty
sixty thousand
thousand German
German marks.
marks. Before
Before the
the inflation,
inflation,
aa worker
worker might
might have
have spent
spent aa year
year earning
earning from
from fifteen
fifteen hun-
hun-
dred
dred to
to two
two thousand
thousand marks:
marks: this
this was
was now
now worth
worth perhaps
perhaps
three
three cents
cents in
in American
American money,
money, not
not even
even enough
enough for
for aa pack-
pack-
I age
age of
of chewing
chewing gum.
gum. A
A man
man with
with an
an income
income of
of twenty
twenty thou-
thou-
sand
sand marks
marks had
had been
been accounted
accounted prosperous:
prosperous: this
this whole
whole year’s
year’s
income
income was
was now
now worth
worth thirty
thirty or
or thirty-five
thirty-five cents,
cents, or
or just
just about
about
enough
enough for
for two
two packs
packs of
of cigarettes.
cigarettes.
People
People literally
literally did
did not
not know
know if if aa week’s
week’s work
work would
would buybuy
food
food for
for one
one meal.
meal. Housewives
Housewives wentwent to to market
market carrying
carrying cur-cur-
reney
rency in
in baskets.
baskets. Fixed
Fixed incomes
incomes of of the
the middle
middle classes
classes were
were
wiped
wiped out.
out. Money
Money had
had become
become aa loathsome,
loathsome, cancerous
cancerous thing,
thing,
in
in growing
growing heaps
heaps with
with less
less and
and less
less value.
value. More
More than
than twenty
twenty
years later,
years later, when
when American
American troops
troops went went through Germany
through Germany
in' the
in" the closing
closing days
days of
of World
World War
War II, II, they
they found
found stacks
stacks of of
the
the old
old inflation
inflation currency
currency still
still preserved
preserved as as mementos
mementos of of aa
bitter
bitter period.
period. Some
Some Americans
Americans looked
looked at at million
million mark
mark .notes
.notes
and
and thought.
thought they
they had
had found
found the
the secret
secret currency
currency reserves
reserves of of
the
the Nazi
Nazi State.
State. _.
The inflation
inflation meant the ruin of the middle classes and the
impoverishment of all wage earners, but it also meant the
impoverishment
wiping
wiping out of all internal debt. For men like the leaders of
IG or
IG or the ‘Ruhr steel magnates, the inflation brought two
tremendous gains. They could produce goods, meet current
tremendous
costs of production in worthless currency, and sell
costs .sell cheaply
abroad; German
abroad; German foreign trade was
foreign trade was thereby
thereby quickly re-
established. And they could pay off Off all debts and mget
meet all
taxes (based
taxes (based on
on the
the old
old price level) virtually for nothing.
nothing.
German industry
German industry emerged from the inflation greatly
g1eatly strength-.
strength-
ened. Industrys gains
ened. Industry’s gains were quite tangible; naturally they
they
did not
did not spring
spring out
out of the air. They were realized in part at
 NINETEEN TWENTY-FIVE
NINETEEN TWENTY-FIVE 47
47
the expense
the expense of of the
the standard
standard of of living
living of
of workers
workers whosewhose wages
wages
could not
could not keep
keep pace
pace with
with prices.
prices. Industrialists
Industrialists profited
profited to to an
an
even greater
even greater extent
extent through
through the the wiping
wiping outout of
of insurance
insurance pol-pol-
icies, mortgage
icies, mortgage bonds,
bonds, and and fixed
fixed incomes
incomes generally.
generally.
The inflation
The started in
inflation started complex of
in aa complex circumstances. In
of circumstances. In
part it
part it was
was the
the result
result ofof financing
financing the the war
war by by borrowing.
borrowing. Only Only
six per cent
six per of the
cent of cost of
the cost the war
of the met by
was met
war was taxation, and
by taxation, and
unfunded debt
the unfunded
the debt reached thirty-nine billion
reached thirty-nine marks. But
billion marks. But
the amount of
the amount debt was
of debt was not out of
not out proportion to'
of proportion debt in
the debt
to‘ the in
other countries.
other Schacht and
countries. Schacht and the other financial
the other leaders threw
financial leaders threw
the whole
the blame onto
whole blame reparations and
onto reparations and an unfavorable balance
an unfavorable balance
of payments. Yet
of payments. Yet in end it
the end
in the was seen
it was German repara-
that German
seen that repara-
payments were
tions payments
tions mainly in
were mainly than in
rather than
kind, rather
in kind, in money,
money,
and their
and effect was
main effect
their main build up
to build
was to foreign trade.
German foreign
up German trade.
The real
The causes of
real causes of the were clear
inflation were
the inflation enough in
clear enough in the
the
statements of
statements leaders and
industrial leaders
of industrial and in minds of
the minds
in the most of
of most of
the people. Sir
German people.
the German Dawson, aa member
Philip Dawson,
Sir Philip member of of the
the
British Parliament
British Parliament and and an
an oflicial
official observer
observer in in Germany,
Germany, wrotewrote
in 1925:
in 1925: '' ''
“After constantly renewed
“After constantly conversations with
renewed conversations the leading
with the leading
financial, industrial,
financial, industrial, andand agricultural
agricultural magnates
magnates in in every
every great
great
center, it
German center,
German impossible to
is impossible
it is doubt that
to doubt they had
that they had one one
and all
and made aa calculated,
all made to ruin
effort to
co-ordinated effort
calculated, co-ordinated ruin thethe
credit of
credit country in
their country
of their to secure
order to
in order discharge from
secure discharge from their
their
war obligations.
war obligations.
“Indeed, Stinnes—for
“Indeed, one—-—wa_s openly
Stinnes—for one—-—was by the
held by
openly held mass
the mass
of the
of people to
German people
the German played in
have played
to have matter especially
this matter
in this especially
for his
for his own hand, and
own hand, and to responsible for
been responsible
have been
to have the fall
for the fall
of the
of the mark
mark andand resultant
resultant position
position of
of Germany.”
Germany.”
Most German
Most businessmen would
German businessmen this, at
denied this,
have denied
would have at least
least
publicly. But
publicly. Stinnes was
But Stinnes man in
was aa man too great
in too hurry to
great aa hurry to give
give
time and
time care to
and care 1922, he
November, 1922,
carnouflage.tIn November,
to camouflageJIn he delivered
delivered
speech entitled
aa speech “How to
entitled “How before the
Germany” before
Save Germany”
to Save the German
German
Economic
Economic Council.
Council. Among
Among many many other
other things
things he
he said:
said:
“If you
“If ‘charge me,
gentlemen icharge'
you gentlemen men who
the men
and the
me, and think as
who think as

‘ I
 48
48 IG FARBEN
IG FARBEN

II do,
do withwith opposing
opposing stabilization
stabilization of of the
the mark
mark at at any
any price,
price,
you
you ’areare absolutely
a b so lutel y right.
right . But
But at
at the
the same
same time '
time II tell
tell you
you that
that
the
the hopes
hopes and and the
the interests
interests ofof all
all of
of us
us are
are identical.
identical. We We are
are
merely
merely differently
differently situated
situated in1n respect
respect to to our
our ability
ability toto defend
0 0 0 d
defen
ourselves against
ourselves against ourour present
present evils.
evils. .. .”
.”
Stinnes
St'nnes
1 and “the
and “the men
men who thought as
who thought as he
he did”
did” had had engaged
engaged
in direct
in direct speculation
speculation in in the
the mark.
mark. They
They purchased
purchased foreignforeign
currency with
currency with loans
loans made
made from
from thethe Reiohsbank,
Reichsbank,
' ere
drove thet lie
mark
mark stillstill further
further down,
down, and
and paid
paid off
off the
the loans
loans forfor aa fraction
fraction
of
o f the
tl 1e original
ori g inal value.
value . The
The more
more conservative
conservative business
business groups
groups
did
did their
their share
share forfor the
the inflation
inflation byby running
running off off their
their own
own cur-
cur-
rency, called Notgeld,
Notgcld, in huge amounts with no hacking. backing.
By
By the
the fall
fall of
of 1923
1923 the
the objectives
objectives ofof the
the inflation
inflation had
had been
been
accomplished.
ae com p lished . In
In November
November aa new new currency,
currency, called
called the
the Ren-
Ren-
tcnmar/c,
tcnmar/c, waslissued
wasiissued and
and tightly
tigh t l y controlled
contro ll e d by
b y the
the Reichsbank
Reichsbank
under Schacht. The Rentcnmar/c, in effect by
1 . b
under Schacht. Rentenmar/c, supported 1n y a
mortgage
mortgage on on all
all German
German land,
l an d , was
was held
h e ld at
at aa stable
stable rate
rate of
of
exchange
exchange with
with foreign
foreign currencies.
currencies. The The inflation
inflation was
was over.
over.

inflation and the Stinnes bubble, a

Out of the chaos of inflation
stronger German industrial machine emerged, ready ready to
to do
do
battle with the world. Stinnes was dead, but his works were
battle
far from
far from forgotten.
forgotten. Rather,
Rather, they were put on 3a sounder
seunder and
more manageable basis. Out of the pieces of the Stinnes
super—trust, Siemens-Rheinelbe-Schuchert, aa new
super-trust, Siemens-Rheinelbe-Schuchert, new steel trust
was
was formed.
formed. This
This was
was the
the huge Vereinigte Stahlwerke, dom-
huge Vereinigte
inating all of
inating all of the
the German
German steel the European
steel production and the European
steel cartel as
steel cartel as well.
well. In
In the chemicalfield, the IG was ready
to
to demonstrate
demonstrate in its own quiet and much more respectable
way
way that Stinnes was really only a small-time operator.
operator.
As
As aa result
result of
of World production was begun
World War I, dye preduetien begun
in other
in other countries, to become a permanent source of
permanent source of competi-
competi-
tion for the
tion for the IG. In all other respects, the IG finished the
IG finished the
war stronger
war stronger than
than before.
before.
Krupp and
Krupp and the
the other steel makers of the Ruhr had become
 TWENTY-FIVE
NINETEEN TWENTY-FIVE
NINETEEN .‘ 49
49
identi fied with
identified production. At
war production.
with war for the
least for
At least the
record, the
the record,
men now‘co
steel men
steel nowicould only make
uld only harmless articles
such harmless
make such as
articles as
plowsh ares and
plowshares and stainless steel dentures.
stainless steel was no
There was
dentures. There such
no such
limitat
limitation on produc
ion on by the
tion by
production the IG. Only aa few
IG. Only cranks and
few cranks and
chemic
chemicalal special talked about
ists talked
specialists about the dangers of
the dangers produc-
war produc-
of war
tion
tion by
by the
the chemic
chemical industry.
al industry.
IG emerge
IG emerged d untouc
untouched from the
hed from occupation period
the occupation follow—
period follow-
ing War I.
World War
ing World even manag
They even
I. They managed to evade
ed to in-
serious in-
evade serious
spectio n. Lieute
spection. nant McCon
Lieutenant nel of
McConncl the ,U.
of the ,U. S. Navy tried
S. Navy get
to get
tried to
aa look IG’s synthet
at IG’s
look at ic ammcin
synthetic ammoniaia plant
plant at Oppau. He
at Oppau. re-
He re-
ported:
ported: ''
the Germa
“. .. .. the
“. ns displa
Germans yed aa politel
displayed but sullen
polite but attitude.
sullen attitude.
They seemed
They to afford
willing to
seemed willing the opport
afford the unity of
opportunity cursory
of aa cursory
inspect
inspection, but strongl
ion, but detailedd examin
to aa detaile
objectedd to
stronglyy objecte ation.
examination.
On_ the third
On_ the day of
third day the visit
of the the writer
visit the was inform
writer was informed his
that his
ed that
presen
presence had becom
ce had become serious objecti
of serious
source of
e aa source objection and that
on and that
his examin
if his
if examination were prolon
ation were prolonged formal compla
ged aa formal int would
complaint would
be submit
be ted to
submitted Peace Confer
the Peace
to the ence.”
Conference.”
The Germa
The ns themse
Germans themselves been quite
had been
lves had about the
realisticc about
quite realisti the
chemic al indust
chemical industryry when they occupi
when they ed parts
occupied France during
of France
parts of during
World War I.
World War town of
The town
I. The of Chauln
Chaulny was occupi
y was occupied by Germa
ed by German n
troops. stood aa famous
Here stood
troops. Here old chemic
famous old chemicalal plant where Gay-
plant where Gay-
Lussac worked with
had worked
Lussac had with sulphu
sulphuric acid, where
ric acid, Courtois dis-
where Courtoi s dis-
iodine, and
coveredd iodine,
covere where plate
and where was first
glass was
plate glass made. The
first made. The
Germa
Germansns remove
removed useful equipm
all useful
d all equipment and machin
ent and ery. Then,
machinery. Then,
before final retreat
their final
before their they destro
retreat,, they yed the
destroyed entire works,
the entire works,
boiler
boiler by
by boiler,
boiler, brick
brick by by brick.
brick.
Along technic
Along al lines,
technical had advanc
IG had
the IG
lines, the advanced greatly during
ed greatly during
the war.
the had develo
They had
war. They developed line of
new line
ped aa new carbidee chemist
of carbid ry.
chemistry.
made invalu
had made
They had
They able progre
invaluable ss toward
progress finding aa satis-
toward finding satis-
factory synthet
factory synthetic rubber.. They
ic rubber had aa wealth
now had
They now of experi-
wealth of experi-
ence the handli
with the
ence with handling high pressur
of high
ng of pressures, made possi-
which made
es, which possi-
ble the Synthes
blc the is of
synthesis oil from
of oil coal, aa discov
from coal, discovery in aa few
which in
ery which few
was to
years was
years shift the
to shift of econom
balancee of
entire balanc
the entire economic power of
ic power of
the the perfec
And the
world. And
the world. perfected Haber process
ted Haber fixationn of
for fixatio
process for of
 /

50
50 ,» IG FARBEN
IG FARBEN
nitrogen
nitrogen left
left the IG the
the IG the cock
cock of
of the walk for
the walk for the
the production
production ooff
artificial fertilizers———-or
artificial fertilizers-—-or explosives.
explosives. r,
IG’s
IG’s relations
relations with
with the
the Get‘man
German government
government were
were of
of the
the
best.
best. For
For aa few
few tense
tense years,
years, German
German industrialists
industrialists stood
stood in
in
terror of
terror of aa sweeping
sweeping revolution
revolution atat home.
home. But
But the
the leaders
leaders of
of
the IG
the IG quickly
quickly found
found that
that they
they were
were fully
fully appreciated
appreciated by by' the
the
officials of
officials of the
the Social
Social Democratic
Democratic Weimar
Weimar Republic.
Republic. AtAt least
least
one of
one of the
the German
German delegates
delegates toto the
the Versailles
Versailles peace
peace con-
con-
ference was
ference was anan IG
IC director.
director.
A series
A series of of special
special concessions
concessions was
was made
made byby the
the govern-
govern-
ment to the IG. A loan was advanced for work with nitrogen
fixation. The
fixation. The dye
dye plants
plants were
were allowed
allowed to
to pay
pay no
no taxes
taxes for
for aa
period of
period of ten
ten years;
years; thus
thus the
the IG
IG was
was given
given full
full governmental
governmental
support _in
support jn its
its dri_ve
drive toto recover
recover lost
lost markets
markets for
for dyestuffs.
dyestuffs. The
The
IG received
IG received preferential
preferential treatment
treatment inin obtaining
obtaining coal,
coal, basic
basic
raw material
raw material which
which was
was needed
needed desperately
desperately all
all over
over Europe-
Europe.
And finally,
And finally, the the government
government sponsored
sponsored organization of of anan
over-all nitrogen syndicate, under IG leadership, the Stick-
over-all nitrogen
stofl Syndikat.
stoff Syndikat. _‘
Now the
Now the IG
18 had
had only
only to
to put
put its
its own
own house
house. in
in order
order by
by taking
taking
the last
the last steps
steps along
along the Stinnes road to complete consolida-
tion. For
tion. For there
there were
were still
still points of friction remaining among
the leading
the leading members
members of of the
the IG.
IG. Even
Even Duisberg,
Duisberg, the man who
talked co-operation
talked co-operation every
every time
time he
he opened
opened his mouth in public,
public,
had his troubles. Duisberg’s
had Duisherg’s own Leverkusen
Levcrkusen works was a
modern and
modern and technically
technically advanced plant, but in some respects
the Ludwigshafen
the Ludwigshafen works were in the lead. In charge’ charge, at
at Lud-
Lud-
wigshafen was
wigshafen was Professor
Professor Carl Bosch, an outstanding scientist
as well
as well as
as aa business
business leader. He had had done
done highly
highly important
important
engineering work
engineering work with the Haber process and, as aa result,
as result,
Ludwigshafen had a monopoly within the IG on nitrogen fixa-
Ludwigshafen fixa»
tion. Duisberg
tion. Duisberg wanted
wanted to cut cut into
into the
the lucrative
lucrative nitrogen
nitrogen field.
field.
He was held back
He was held back by the rules of his own IG; no individual
IG; no individual
company could
company could increase its capitalization (which would have
have
been required
been required forfor any
any major
major new line of production) with-
’ .

I L____
NINETEEN TWENTY-FIVE 51

out permission
out permission of of the
the whole IG. Bosch
whole IG. Bosch ofof Ludwigshafen
Ludwigshafen was was
not giving
not giving permission
permission for
for anyone
anyone else
else to
to move in on
move in on nitrogen
nitrogen
fixation. Bosch
fixation. Bosch did
did finally
finally turn
turn the
the nitrogen
nitrogen process
process over
over to
to
the whole
the whole IG,
IG, but
but only
only after
after he
he found
found hehe had
had toto go
go to
to the
the
other
other members
members forfor support
support in
in financing
financing hishis large-scale
large-scale experi-
experi-
ments
ments in
in conversion
conversion ofof coal
coal into gasoline.
into gasoline.
Was found by this time that all of the big
Then, too, it was
plants in
plants in the
the IG
IG were
were making
making aa complete
complete line
line of
of dyestuffs.
dyestuffs.
There were
There were obvious
obvious and
and wasteful
wasteful duplications
duplications inin this,
this, yet
yet as
as
long as
long as there
there was
was any
any chance
chance that
that the
the IG
IG might
might break
break up,
up,
no individual concern was willing to loosen 'loosen its hold on the the
rich dye
rich dye field.
field. Q‘ I
Above all,
Above all, there
there was
was the
the wastefulness
wastefulness of
of maintaining
maintaining half
half
aa dozen
dozen separate
separate sales
sales organizations
organizations atat aa time
time when
when IG’s
IG’s
clear duty
clear duty to
to itself
itself and
and its
its Fatherland
Fatherland was
was to to penetrate
penetrate all
all
foreign markets.
foreign markets. During
During the
the happy
happfr days
days of
of the
the inflation
inflation this
this
had not
had not been
been ofof ,any
any importance.
importance. AsAs an
an IGIG official,
official, Paul
Paul
Haefliger,
Haefliger, admitted
admitted to to interrogators
interrogators in
in the
the Summer
Summer of of 1945,
1945,
the
the cost
cost price
price of
of products
products sold
sold during
during thethe inflation
inflation mattered
mattered
very
very little:
little:
“.
“. .. .. because
because the
the production
production price
price waswas being
being paid
paid in
in com
con-
tinuously
tinuously inflating
inflating currency,
currency, whereas,
whereas, for for instance,
instance, the
the im-
im-
portant
portant dyestuff
dyestuff export’yielded
exportyielded for for the
the most
most part
part stable
stable money
money
in
in good
good foreign
foreign currency
currency which
which when
when transferred
transferred to to Germany
Germany
represented
represented mark mark accounts
accounts quite
quite Ont
out ofof proportion
proportion to to pro-
pr'o-
duction
duction costs,costs, so
so that
that on
on paper
paper bigbig profits
profits could
could be be shown
shown
even
even withwith aa much
much smaller
smaller dyestuff
dyestuff expert
expert volume
volume than
than pre-
pre-
war.
War. '.'. .”
.”
But
But after
after the
the stabilization
stabilization ofof the
the mark
mark in in 1923
1923 putput an
an end
end
to
to the
the profitable
profitable tralfic
traflic in
in foreign
foreign currencies,
currencies, Haefliger
Haefliger said
said
the
the IG
IG people—
people—-
“.
“. .. .. could
could no
no longer
longer afford
afford the
the luxury
luxury ofof having
having each
each of
of
them
them aa world-wide
world-wide sales
sales organization
organization which,
which, in in spite
spite of
of all
all
regulations
regulations and and collectual
collectual (sic)
(sic) agreements
agreements at at home,
home, were
were
in fact competing with each other in getting orders.”
’__.,:---—-—~-_ _

5;
52 t to
[G FARBEN
FARBEN

Everything pointed
Everything the need
,to the
pointed ,to for integration
need for integration ofof the IG
the IG
r into single concern.
into aa single completed late
were completed
Negotiations were
concern. Negotiations in
late in
1925: by agreement
1925: by members of
all members
of all
agreement of of the IG, all
the IG, the other
of the
all of other
concerns were
concerns absorbed into
were absorbed Ludwigshafen firm,
the Ludwigshafen
into the firm, Badische
Badische
und Soda
Anilin und
Anilin Fabrik, and
Soda Fabrik, and the changed to
was changed
name was
the name the .
to the
IG
IG Farbenindustrie
Farbenindustrie A.G.
A.G. The
The process
process of consolidation,, begun
of consolidation begun
in 1904
in formation of
the formation
with the
1904 with the two
of the and carried
rings and
two rings carried
further in 1916
further in the creation
with the
1916 with the single
of the
creation of was now
IG, was
single IG, now
complete.
complete. IG
IG Farben
Farben was
was ready
ready for
for world
world conquest.
conquest.

1925 was
1925 was aa year of paradox
year of paradox inin Germany.
Germany. It It was
was aa year
year
in Which
in there seemed
which there seemed toto be
he aa return
return to
to peacetime
peacetime normalcy
normalcy
following the
following the nightmare
nightmare ofof post-war inflation. Yet
post-war inflation. Yet it
it was
was also
also
aa year
year in
in the
the course
course of
of which
which first
first decisive
decisive steps were taken
steps were taken
to build
to build aa new
new German
German war
war machine.
machine.
The Social
The Social Democrats
Democrats remained
remained the the strongest
strongest political
political
group in
group in the
the Weimar
Weimar Republic,
Republic, but
but the
the Junker
Junker ofof Junkers,
Junkers,
Field Marshal
Field Marshal Paul
Paul von
von I-Iindenburg,
Hindenburg, was was elected
elected toto the
the
Presidency of
Presidency of the
the Republic.
Republic.
Defense Minister
Defense Minister Otto
Otto Gessler
Cessler observed
observed that
that if
if the
the German
German
General
General Staff
Staff were
were organized
organized as
as aa corporation
corporation itit would
would be
be
legal.
legal.
Out
Out of
of the
the pieces of the
pieces of the Stinnes
Stinnes empire,
empire, Vereinigte
Vereinigte Stahl-
Stahl-
werke
werke was
was organized.
organized.
.The
[The Rheinmetall-Borsig
Rheinmetall-Borsig Company
Company started
started operations
operations in in its
its
first gun
first gun factory.
factory. '
And IG
And IG Farbenindustrie
Farbenindustrie was
was organized
organized as
as aa single
single mono-
mono-
poly.
poly.
In aa New
In New Year’s
Year’s Day
Day address,
address, one
one Ruhr
Ruhr magnate
magnate declared:
declared:
“Germany has
“Germany has now
now shown
shown to
to herself
herself and
and to
to the
the rest
rest of
of the
the
world that
world that she
she still
still knows
knows her
her way
way back
back to
to greatness
greatness and
and for-
for-
ward to
ward to the
the fulfillment
fulfillment of
of her
her age-old
age-old mission,
mission, in
in spite
spite of
of
paeifistio clamor
pacifistic clamor and
and half-hearted
half-hearted and
and un-German
un-German reluct-
reluct-
ance from
ance from which
which serious
serious drawbacks
drawbacks originated
originated once
once more
more
a few years ago.”

_/

/l '_,

,7 L :----—-p-.__.,....___
 4
4
The Saviour
The Saviour

“A new
“A new type
type of
of state
state socialism
so'cialism isis appearing,
appearing, totally
totally dif-
dif-
ferent from
ferent from that
that which
which anyany of
of us
us have
have dreamed
dreamed oror thought
thought of.of.
Private economic
Private economic initiative
initiative and
and the
the private
private capitalist
capitalist economy
economy
will not
will not be be crippled,
crippled, butbut will
will be
be regimented
regimented from
from thethe ‘points
'points
of view
of view of of state.socialism
statesocialism in in that
that capital
capital will
will be
be concentrated
concentrated
in the
in the national
national economy
economy and and will
will bebe directed
directed outwards
outwards withwith
uniform impetus. .. ..
uniform impetus. _.
“.
“. .. .. This
This change
change in in capitalism demands with
capitalism demands with natural
natural per-
per-
emptoriness
emptoriness aa reconstruction
reconstruction of of aa former
former counterpoise,
counterpoise, inter-
inter-
national
national socialism.
socialism. ItIt breaks
breaks this
this up
up into
into national
national socialism
socialism
whose
Whose election
election promise
promise will
will be:
be: work
work rather
rather than
than phrases.”
phrases.”
The
The prophecy
prophecy quoted
quoted above
above was
was written
written in
in 1916
1916 byby aa Ger-
Ger-
man
man chemist
chemist named
named Werner
Werner Daitz,
Daitz, employed
employed as as aa plant
plant man-
man-
ager
ager by
by the
the IG.
IG. Daitz’s
Daitz’s writings
writings were
were distributed
distributed widely
widely by
by '
the
the publicity
publicity department
department of
of IG
IG Farben
Farben after
after Hitler
Hitler was
was in
in
power,
power, perhaps
perhaps as
as progf
proof of
of orthodoxy
orthodoxy and
and asas an
an indication
indication
that
that German
German chemistry
chemistry had
had been
been Nazi
Nazi all
all the
the time.
time.
Of
Of course,
course, the
the IG
IG did
did not
not invent
invent national
national socialism.
socialism. Neither
Neither
did
did Adolph
Adolph Hitler.
Hitler. The
The creed
creed 0f
of naziism
naziism was
was developed
developed as
as aa
53
53
' --

54 e » , IG FARBEN
IO FARBEN

weapon in
weapon in the of aa bitter
course of
the course struggle in
internal struggle
bitter internal Germany.
in Germany.
struggle was
The struggle
The won by
was won by Hitler powerful support
with powerful
Hitler with from
support from
German Big
German Business, including
Big Business, including IG Without the
Farben. Without
IG Farben. sup-
the sup-
port of
port IG and
of IG rest of
the rest
and the monopolies and
German monopolies
the German
of the cartels,
and cartels,
could not
Hitler could
Hitler won his
have won
not have fight. And
political fight.
his political the German
And the German
industrialists could
industrialists could see that without
see that Hitler their
without Hitler empires
their empires
crumble.
would crumble.
would
1933‘and the
Between 1933'and
Between of World
beginning of
the beginning World War II, it
War II, was
it was
to convince
hard to
hard people of
many people
convince many crimes of
the crimes
of the Hitler
the Hitler
of the
After the
regime. After
regime. started, there
war started,
the war sudden shift.
was aa sudden
there was It
shift. It
now possible
was now
was talk in
to talk
possible to most respectable
the most
in the quarters oi
respectable quarters of
the Nazis’
the barbarism. A
Nazis’ barbarism. theory took
new theory
A new root. It
firm root.
took firm all
was all
It was
the German
in the
in The Nazis
blood.‘ The
German blood.‘ out because
won out
Nazis won Ger-
most Ger-
because most
mans were
mans barbaric at
were barbaric heart. Their
at heart. chromosomes went
very chromosomes
Their very went
goose-stepping through
goose-stepping their blood
through their vessels.
blood vessels.
this last
Actually, this
Actually, represented aa final
theory represented
last theory victory for
final victory for
ideas of
Hitler’s ideas
Hitler’s By now
race. By
of race. now it dangerously clear
is dangerously
it is that
clear that
fascism can be a menace anywhere; conversely, some of
conversely, some the
of the
opposition to
powerful opposition
most powerful
most fascism developed
to fascism developed in Germany
in Germany
itself. In
itself. fact, the
In fact, brutality of
extreme brutality
the extreme Nazis arose
the Nazis
of the at least
arose at least
in part
in part from the fact
from the fact that the opposition
that the opposition was so strong.
was so strong.
A heavy
A heavy price been paid
has been
price has for the
paid for the historical lessons of
historical lessons of
the past
the past fifteen they should
years; they
fifteen years; be all
should be all the thoroughly
more thoroughly
the more
learned on
learned that account.
on that One of
account. One lessons of
clearest lessons
the clearest
of the the
of the
past is
recent past
recent fact that
the fact
is the heroes nor
neither heroes
that neither are
villains are
nor villains
made by
made blood alone.
by blood alone. .l. Bach was
S. Bach
J. S. German, but
was aa German, there
but there
Germans who
also Germans
are also
are are tone
who are tone deaf. Himmler was
deaf. Himmler German,
was aa German,
were some
there were
but there Germans who
some Germans who died as bravely
died as bravely as men
as men
can, fighting
can, fighting forfor human
human freedom.
freedom.
The first
The first year
year following
following the end of
the end of World
World War
War IIII in
in Europe
Europe
saw Sweeping
saw sweeping changes
changes inin the
the governments
governments ofof at
at least
least aa dozen
dozen
nations covering
nations covering aa total
total population
population of of more
more than
than two
two hundred
hundred
million people.
million people. The
The ending
ending of of World
World War
War II also
also saw
saw great
great
social ferment
social ferment andand upheaval.
upheaval. TheThe center
center of
of the
the turmoil
turmoil waswas
the defeated country, Germany. .
THE SAVIOUR
ms SAVIOUR |. 55
ss
For the
For the owners
owners of of German
German heavy
heavy industry,
industry, the the years
years fol-
fol-
lowing World
lowing World War War II were
were filled
filled with
with fear
fear andand danger.-Spe-
danger. Spe-
cifically and
cifically and bluntly,
bluntly, they
they feared
feared what
what the
the workers
workers in in their
their
plants would
plants would do; do; they
they feared
feared aa communist
communist revolution.
revolution.’
The straws
The were blowing
straws were blowing inin the
the wind
wind even
even before
before the the war
war
ended.
ended. The The Imperial
Imperial German
German armies
armies had knocked out
had knocked out their
their
Eastern enemies.
Eastern enemies. TheThe Treaty
Treaty ofof Brest-Litovsk
Brest-Litovsk was was forced
forced on on
the new
the new Soviet
Soviet government
government of of Russia.
Russia. The
The terms
terms werewere at at least
least
as harsh
as harsh as as any
any laid
laid down
down hardly
hardly aa year
year later
later at at Versailles.
Versailles.
Besides paying
Besides paying hugelreparations,
hugesreparations, Russia
Russia lost
lost thirty-two
thirty-two per per
cent of
cent of its
its agricultural
agricultural land,
land, thirty-four
thirty-four per per cent
cent of of its its
population. The
population. The treaty
treaty took
took from
from Russia
Russia fifty-four
fifty-four per per cent
cent of of
its industry
its industry andand eighty-nine
eighty-nine per
per cent
cent of
of its
its coal
coal mines.
mines. There
There
was complete
was complete German
German control
control ofof Poland,
Poland, Lithuania,
Lithuania, Latvia,Latvia,
and Estonia,
and Estonia, and
and there
there were
were puppet
puppet governments
governments in in Finland,
Finland,
the Ukraine,
the Ukraine, andand Georgia.
Georgia. \\
,, TheThe Brest-Litovsk
Brest-Litovsk Treaty
Treaty nurtured
nurtured deep
deep andand lasting
lasting hatred
hatred
in Russia.
in Russia. It
It blackened
blackened German
German imperialism
imperialism throughout
throughout the
the
world. But,
world. But, surprisingly,
surprisingly, there
there was
was aa strong
strong reaction
reaction against
against
it in
it in the
the German
German homeland
homeland itself.
itself. It
It may
may fairly
fairly be
be said
said to
to
have weakened
have weakened German
German will
will to
to continue
continue the the war.
war. The
The treaty
treaty
Reiehstag. Strikes were called in pro-
was denounced in the Reichstag.
test against
test against it.
it. Hitler
Hitler himself
himself recorded
recorded that,that, years
years later,
later, while
while
making inflammatory
making inflammatory speeches
speeches against
against the the Versailles
Versailles Treaty,
Treaty,
he would
he would hear
hear cries
cries from
from the
the crowd
crowd ofof::
“What about
“What about Brest-Litovsk?”
Brest-Litovsk?” _
In the
In the days
days immediately
immediately following
following the
the armistice
armistice of
of N0-
N0-
vemher, 1918,
vember, 1918, workers
workers in
in factories
factories and
and mills
mills all
all over
over Ger-
Ger-
many simply
many simply declared
declared themselves
themselves in in charge
charge and
and fired
fired the
the
ownership. This
ownership. This happened
happened inin plants
plants of
of the
the IG
IG in
in the
the Rhine-
Rhine-
land;
land; the
the plant
plant managers
managers only
only returned
returned toto their
their posts
posts after
after
British
British troops
troops entered
entered the area and
thearea and gave
gave them
them protection.‘
protectionf
The same protection was given, and in a fully conscious
,way,
,way, by
by the French Army.
the French Army. TheThe French
French General
General Hirschatwf
Hirschauer
announced as soon as he"
he‘ crossed the Rhine: '
"2.-.,___*_+~

56
56 IG FARBEN
IG FARBEN

“This is
“This is clear: Soviets or
more Soviets
no more
clear: no foolishness of
or foolishness sort!”
that sort!”
of that
stories have
Many stories
Many written of
been written
have been free-hooting gangs
the free-booting
of the gangs
officers of
young oflicers
of young
of of the Kaiser’s Army
the Kaiser’s Army which terrorized
which terrorized
following the
Germany following
Germany war. Heinrich
the war. Hauser who
Heinrich Hauser who fought in
fought in
one of
one of the the Moerker
gangs, the
the gangs, Corps, has
Volunteer Corps,
Moerker Volunteer the
told the
has told
story of
story of aa pitched in the
battle in
pitched battle town of
the town of I-Ialle. Hauser and
Halle. Hauser and
fellows were
his fellows
his besieged in
were besieged opposition were
Their opposition
prison. Their
in aa prison. were
workers who
armed workers
armed who had taken over
had taken huge Leuna
the huge
over the works
Leuna works
of the
of the IG.IG.
above the
“. .. .. above
“. hospital the
prison hospital
the prison the warden’s daughter
warden’s daughter
played the
played piano; she
the piano; kept tirelessly
she kept the same
running the
tirelessly running scale
same scale
as if
as drown out
to drown
if to out the screams of
the screams the starving.
of the starving. .. ..
“. .. .. we
“. burned the
we burned straw of
rotten straw
the rotten beds in
our beds
of our yard,
the yard,
in the
found it
and found
and full of
it full vermin and
of vermin and eartridges.'The cartridges
eartridges.'The cartridges
exploded in
exploded in the and the
fire, and
the fire, splattered in
bullets splattered
the bullets direc-
all direc-
in all
outside the
“. .. .. outside
“. was the
walls was
the walls city with
dark city
the dark thousands
the thousands
with the
we flung
while we
tions, while
tions, ourselves flat,
flung ourselves laughing.
flat, laughing.
workmen of
of workmen
of of the Leuna Plant
the Leuna besieging us,
were besieging
who were
Plant who but
us, but
the prison
inside the
inside soldiers; that
were soldiers;
prison were that cold winter night
cold winter they
night they
lay flat
lay stomachs in
their stomachs
on their
flat on the yard,
in the taking cover
yard, taking new
behind new
cover behind
waiting for
graves, waiting
graves, prisoners to
the prisoners
for the to break out. II was
break out. with
not with
was not
but II heard
them, but
them, shots, and
the shots,
heard the the dead
saw the
and II saw with
men with
dead men
shaven heads
their shaven
their uniforms. Half
striped uniforms.
and striped
heads and Half anan hour later
hour later
went to
we went
we to a cabaret across
a cabaret across the from the
street from
the street There
prison. There
the prison.
oysters and
were oysters
were champagne and
and champagne peroxide soubrette
and aa peroxide soubrette
sang, ‘You
who sang,
who made me
‘You made what II am
me what todaym—I hope
am today—--I you’re
hope you’re
satisfied!’
satisfied!’ ” ”

The
The first
first wave
wave ofof revolution
revolution in in Germany
Germany was was put
put down.
down.
By
By 1923
1923 all
all armed conflict had
armed conflict had ceased.
ceased. But
But the focus of
the focus of con-
con-
flict
flict had
had merely
merely shifted
shifted to
to aa struggle
struggle in
in the
the elections
elections for par-
for par-
liamentary control.
liamentary control. All
All the
the elements
elements of of the
the fight
fight remained.
remained.
More than
More than any
any other
other country
country inin the
the world,
world, Germany
Germany repre-
repre-
sented aa cross
sented cross section
section of
of all
all the
the classes
classes known
known to
to enter
enter into
into
conflict.
current social conflict.

7 I _
 THE SAVIOUR
THE SAVIOUR 57
57
On
On the extreme Right,
the extreme Right, there
there still
still remained
remained firmly rooted
firmly rooted
vestiges of
vestiges of feudalism.
feudalism. This
This was
was particularly
particularly the
the case
ease in
in north-
north-
eastern Germany,
eastern Germany, main
main center
center of
of the
the Junker
Junker estates.
estates. The The
Junkers had
Junkers had received
received aa reprieve
reprieve when
when the
the debts
debts onon their
their
estates were
estates were liquidated
liquidated during
during the
the inflation.
inflation. As
As for
for the
the Prus-
Prus-
sian officer
sian olficer corps,
corps, true
true sons
sons of
of the
the Junker
Junker families,
families, theythey re-
re-
tained their
tained their place
place of
of honor
honor through
through all
all changes
changes in
in the
the German
German
government.
government. ..
In western
In western Germany,
Germany, in in the
the smoky
smoky factory
factory towns
towns of of the
the
Rhineland and
Rhineland and the
the Ruhr,
Ruhr, the
the industrial
industrial leaders
leaders were
were as
as firmly
firmly
entrenched as
entrenched as ever.
ever. History
History was
was full
full of
of ' their
their struggle
struggle with
with
the Junkers.
the Junkers. InIn moments
moments ofof greatest
greatest danger
danger fromfrom the
the Left,
Left,
however, they
however, they made
made common
common cause
cause with
with their
their old
old enemies.
enemies.
Where there
Where were faetories
there were were also
there were
factories there organized labor
also organized labor
and Left
and Left Wing
Wing political
political parties.
parties. Throughout
Throughout the the whole
whole period
period
from World
from World War
War II until
until Hitler
Hitler became
became chancellor
chancellor in
in 1933,
1933,
the Social
the Social Democrats
Democrats remained
remained the
the largest
largest party
party of
of the
the Left.
Left.
The Weimar
The Weimar Constitution
Constitution was
was the
the creation
creation of
of the
the Social
Social
Democracy. In
Democracy. In the
the 1919
1919 elections
elections the
the Social
Social Democrats
Democrats re-
re-
ceived more
ceived more than
than eleven
eleven million
million votes.
votes. The
The next
next largest
largest bloc
bloc
of votes,
of votes, cast
cast for
for the
the Catholic
Catholic Center,
Center, totaled
totaled only
only five
five million.
million.
By 1924,
By 1924, the
the political
political situation
situation began
began toto show
show marked
marked
Changes. In
changes. In that
that year’s
year’s elections
elections for
for the
the Reichstag
Reiehstag the
the Social
Social
Democratic vote
Democratic vote fell-to
fell‘to only
only aa little
little more
more than
than six
six million.
million.
Nearly four
Nearly four million_
million, (3.7
(3.7 million)
million) Left
Left Wing
Wing voters
voters had
had
chosen to
chosen to support
support the
the Communist
Communist Party.
Party. A
A Right
Right Wing
Wing party,
party,
the German
the German Nationalists,
Nationalists, had
had made
made the
the biggest
biggest gains
gains of
of all,
all,
from 2.7
from 2.7 million
million in
in 1919-to
1919t0 5.8
5.8 million
million in
in 1924-.
1924. The
The first
first
years after
years after World
World WarWar II had
had been
been anxious
anxious ones
ones for
for both
both
German aristocrats
German aristocrats and
and business
business leaders.
leaders. The
The party
party in
in power,
power,
' the
the Social
Social Democrats,
Democrats, had
had proclaimed
proclaimed aa program
program of of nation-
nation-
alization
alization of
of industry.
industry. But
But in
in aa few years it
few years it was
was clear
clear that
that
the danger
the danger from
from the
the Social
Social Democrats
Democrats was
was slight.
slight. No
No indus-
indus-
tries had
tries had been
been taken
taken over.
over. In
In the
the worst
worst crises
crises leaders
leaders of
of the
the
extreme Left
extreme Left Wing
Wing had
had been
been killed
killed by
by the
the police
police of
of the
the Social
Social
 -

58
58 IG FARBEN
IG FARBEN
Democratic state.
Democratic quick revival
the quick
With the
state. With revival of business by
of business the
by the
1920’s, the
middle 1920’s,
middle industrialists could
the industrialists make aa political
could make come-
political come-
throughtheir chosen
back throughtheir
back parties, like
chosen parties, the German
like the Nation-
German Nation-
and the
alists and
alists People’s Party.
German People’s
the German could at
They could
Party. They least
at least
counter-balance the
counter-balance Left Wing
the Left in the
vote in
Wing vote while
Reiehstag, while
the Reichstag,
Presidency of
the Presidency
the was won
Germany was
of Germany retained by
and retained
won and Field
by Field
von Hindenburg,
Marshal von
Marshal Hindenhurg, the picked candidate
the picked candidate ofof an alliance
an alliance
Junkers and
of Junkers industrialists.
and industrialists.
I

of '
By 1930
By 1930 still Violent shifts
more violent
still more taken place.
had taken
shifts had Ger-
place. Ger-
many had
many suffered its
had suffered share of
its share evil effects
the evil
of the effects of world
the world
of the
than aa third
More than
crisis. More
economic crisis.
economic third of the working
of the popula-
working popula-
jobless. The
was jobless.
tion was
tion parties most
The parties with Big
identified with
clearly identified
most clearly Big
BuSiness, like
Business, the'German Nationalists,
like the~German went into
Nationalists, went disastrous
into aa disastrous
Their vote
decline. Their
decline. cut by
was cut
vote was by more than half.
more than Social
Beth Social
half. Both
Democrats and
Democrats Communists made
and Communists made gains. thinking of
The thinking
gains. The the.
of the
Wing had
Left Wing
Left embedded in
deeply embedded
become deeply
had become German life.
in German It
life. It
itself in
showed itself
showed in novels,
theater, in
the theater,
in the novels, in arts. A
the arts.
all the
in all power-
A power-
and bitter
ful and
ful satire on
bitter satire society, The
capitalist society,
on capitalist Three-Penny
The Three-Penny
ran for
Opera, ran
Opera, for three years in
three years When the
Berlin. When
in Berlin. burned
Nazis burned
the Nazis
books and
books purged all
and purged arts they
the arts
all the not just
were not
they were just kicking Jews
kicking Jcws
out of
out jobs and
of jobs Germany to
turning Germany
and turning contemplation of
the contemplation
to the of
postcards. They
picture postcards.
picture were fighting
They were major political
fighting aa major battle.
political battle.
It was
It said that
was said Lenin in
that Lenin earlier years
in earlier thought more
years thought of the
more of the
of aa Socialist
chances of
chances victory in
Socialist victory than in
Germany than
in Germany Russia.
in Russia.
To an
To Observer in
an observer Germany around
in Germany it might
1930 it
around 1930 might well have
well have
seemed that
seemed socialist revolution
that aa socialist was in
revolution was sight.
in sight.
But aa new
But new force in German
force in German politics revealed in
was revealed
politics was the
in the
elections. For
1930 elections.
1930 the first
For the first time, Hitler and
Adolph Hitler
time, Adolph his Nazi
and his Nazi
made aa strong
Party made
Party strong showing. Nearly six
showing. Nearly one half
and one
six and million
half million
votes were cast for Hitler’s candidates; one hundred’ hundred' and
seven brown-shirted
seven brown-shirted Nazis
Nazis took
took their
their places
places in
in the
the Reichstag
Reichstag
on the
on the extreme
extreme Right.
Right. Within three years Hitler
Hitler was installed
was installed
in power, active Social Democrats and
in power, active Social Democrats and Communists
Communists werewere
hunted fugitives, and the war machine was rolling at full
hunted
speed.
gpfied.

. / {I

-if l . ___ __.__

 ,_ \

THE SAVIOUR
THE SAVIOUR _ 59
59
' In the
In the thirty-one
thirty-one years
years between
between 19141914 and
and 1945
1945 the ancient
the ancient
practices of
practices of murder
murder were raised to
were raised to the
the level
level of
of mass produc-
mass produc-
tion.
tion. The
The number
number of of dead
dead in in the
tl1e two
two most devastating wars
most devastating wars
of
of history probably reached
history probably reached one one hundred
hundred million.
million. Whole
Whole
cities and
cities and sections
sections ofof countries
countries withwith the
the accumulated
accumulated culture
culture
of centuries
of centuries were
were totally
totally destroyed.
destroyed. Yet,Yet, in
in the
the entire period,
entire period,
the most
the most horrible
horrible story
story ofof all
all was
was that
that of Adolph Hitler
of Adolph Hitler and
and
his Nazis—-the
his Nazis—-the National-Socialist
National-Socialist GermanGerman Workers’
Workers’ Party.
Party.
The story
The story ofof Hitler
Hitler has
has already
already beenbeen told
told many
many times.
times.
More volumes
More volumes will
will have
have to to be
be written
written before
before itit will
will be
be possi-
possi-
ble to
ble understand fully
to understand fully howhow in midst of
the midst
in the the twentieth
of the twentieth
century Hitler was
century Hitler able to
was able restore all
to restore the worst
all the aspects of
worst aspects of the
the
barbarism of
harbarism ages, how
the ages,
of the barbarism was
Nazi harbarism
this Nazi
how this was able
able
grip an
to grip
to entire civilized
an entire people, and
civilized people, how the
and how great and
the great and
honorable
honorable of of the
the world
world found
found it it possible
possible toto meet
meet and
and deal
deal
with
with Hitler
Hitler on
on equal
equal terms
terms of
of normal
normal intercourse.
intercourse.
A few
A details of
the details
of the
few of Hitler’s incredible
of Hitler’s may be
rise may
incredible rise be
repeated here.
repeated young man
As aa young
here. As War I,
World War
before World
man before he lived
I, he lived
in
in the
the municipal
municipal flop
flop houses
houses of
of Vienna;
Vienna; inin America
America he he would
would
have been
have known as
been known as aa skid-row Go down
bum. Go
skid-row bum. Main Street
to Main
down to Street
in Los
in or Howard
Angeles, or
Los Angeles, in San
Street in
Howard Street or the
Francisco, or
San Francisco, the
flop houses
flop West Madison
of West
houses of Chicago and
in Chicago
Madison in will see
you will
and you see
his counterpart.
his was bitter
He was
counterpart. He frustrated, ill
and frustrated,
bitter and ease with
at ease
ill at with
other
other men,
men, with
with vague
vague pretensions
pretensions as
as an
an artist
artist and
and aa meager
meager
talent;
talent; he
he earned
earned aa few
few pennies
pennies making
making picture
picture postcards
postcards and
and
acquired
acquired aa vast
vast capacity
capacity for
for hatred.
hatred.
During
During the
the war
war he
he was
was aa soldier.
soldier. In
In the
the American
American Army
Army
he
he would
would have
have been
been called
called “eager.”
“eager.” To
To judge
judge from
from aa few
few
letters
letters which
which have
have been
been preserved,
preserved, he he seemed
seemed to to like
like the
the
bloody
bloody business.
business. ‘'
In
In the
the chaos
chaos ofof post-war
post-war Germany
Germany Hitler
Hitler found
found his
his starting
starting
point.
point. Unerringly,
Unerringly, his
his instincts
instincts led
led him
him intointo the
the service
service of
of the
the
German
German ultra-nationalists
ultra-nationalists and
and reactionaries.
reactionaries. He He went
went to
to work,
work,
probably
probably forfor the
the first
first time
time inin his
his life:
life: he he became
became aa stool-
stool-
pigeon
pigeon for
for the
the German'Army.
German'Army. It It was
was his his job
job to
to spy
spy onon what
what
..._.._..__.._...__.___._..___
.,__.__..%_ v . .
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60
69 p 1C; FARBEN
-IG

organized German reaction

organized German reaction recognizedas
recognizedas its
its worst enemy—
worst enemy—-
the
the radical
radical labor
labor movement.
movement. He He was
was aa very
very obscure
obscure spyspy and
and
so
so the political parties
the political parties he was sent
he was sent to
to work
work inin were
were also
also
obscure. The
obscure. The party
party which
Which he he took
took over
over and
and which
Which became
became
eventually the
eventually the all-powerful
all-powerful Nazi
Nazi Party
Party had
had at
at the
the time
time only
only
seven members.
seven members.
Fmm the
From the beginning
beginning Hitler’s
Hitler’s party
party had
had powerful
powerful support.
support.
General von
General von Ludendorff
Ludendorff lent
lent his
his prestige
prestige to
to Hitler’s
Hitler’s attempted
attempted
Putsch in
Putsch in Munich
Munich in in 1923.
1923. After
After the
the failure
failure of
of the
the Putsch,
Putsch,
Hitler was
Hitler was jailed
jailed for
for aa short
short time.
time. In
In the
the prison
prison of
of Landsberg
Landsherg
he was
he was shown
shown special
special consideration
consideration by by Bavarian
Bavarian ollicials.
officials. And
And
financial support
financial support was
was given
given byby several
several steel
steel magnates
magnates of of
the Ruhr,
the Ruhr, notably
notably Kirdorlf
Kirdorif andand Thyssen.
Thyssen.
For his
For his behind-the-scenes
behind-the-scenes supporters
supporters Hitler
Hitler presented
presented aa
counter-threat to
counter-threat to the
the Socialists
Socialists and
and Communists.
Communists. His
His brown-
brown-
shirted Storm
shirted Storm Troopers
Troopers started
started aa long
long series
series of
of street
street brawls,
brawls,
particularly with
particularly with the
the Communists.
Communists. A‘
T0 the
To the voters,
voters, the
the Nazis
Nazis presented
presented aa different
difTerent and
and more
more
complicated appeal.
complicated appeal. For
For those
those who
Who were
were the
the shocked
shocked and
and in-
in-
secure survivors
secure survivors of
of war,
war, Hitler
Hitler presented
presented pageantry
pageantry and
and uni-
uni-
forms, the
forms, the ritual
ritual and
and discipline
discipline of
of aa semi-military
semi-military organiza-
organiza-
tion. This
tion. This was
was anan expensive
expensive form
form of
of political
political agitation
agitation and
and
because of it Hitler was always dependent on heavy financial
contributions. To,a bewildered and embittered middle class
which came
which came out
out of
of the
the inflation
inflation threatened with the loss of
even their respectability,
even their respectability, Hitler
Hitler offered
offered an
an ancient
ancient target
target for
hatred—the Jew. For strongly nationalistic Germans, Hitler
hatred-—the
oflered foreign
offered foreign excuses
excuses for
for all
all of
of Germany’s
Germany’s troubles: the
evil sprang
evil sprang from
from the
the Versailles Treaty and the loss of col-
onies. Finally, to
onies. Finally, to complete
complete a fully-rounded demagogic appeal,
Hitler
Hitler introduced into his program anfelement of attack on
Big
Big Business; this last was aa concession
concession to
to the
the deep-rooted
deep~rooted
notions of
notions of socialism in Germany.
socialism in Germany. Hitler’s Big Business sup-
sup-
porters did
porters did not
not seem
seem alarmed by
alarmed by this attack. The events after
1933 proved
1933 proved them
them right.
right.

""7T""L_..._.
 THE SAVIOUR
THE SAVIOUR 61
61
After the
After the depression
depression closed
closed in
in on
on Germany
Germany in in 1929,
1929, Hit-
Hit-
ler’s
ler’s program
program proved
proved to to he
be aa shrewdly
shrewdly concocted
concocted mixture.
mixture.
He
He gained
gained strength
strength in
in each
each election.
election. The
The Nazis reached aa high
Nazis reached high
1 point in
point in July,
July, 1932:
1932: they
they received
received 13.7
13.7 million votes. The
million votes. The
l Social Democrats,
Social next highest,
Democrats, next highest, received
received only
only eight
eight million.
million.
In the
In the Reichstag
Reichstag the
the Nazis
Nazis had
had won
won thredhundred
thrde'.hundred and
and twenty
twenty
seats (out
seats (out of
of six
six hundred
hundred and and seventy).
seventy). Only
Only one
one hundred
hundred
and thirty-three
and thirty-three went
went to
to the
the Social
Social Democrats,
Democrats, eight-nine
eight-nine to
to
the Communists.
the Communists. .
The Nazis
The Nazis were
were on
on the
the very
very edge
edge of
of complete
complete power.
power. And
And
then aa reaction
then reaction set
set in.
in.
1
i
The crazy
The crazy hodge-podge
greatest appeal
greatest
hodge-podge of
appeal toto the
the most
of the
the Nazi
Nazi program
most unstable
program had
unstable groups
groups in
had made
made its
in German
German so-
its
so-
ciety. The
ciety. mind of
twisted mind
The twisted Hitler, with
Adolph Hitler,
of Adolph its fantastic
with its fantastic
notions of
notions of blood-mysteries
blood-mysteries andand fate,
fate, made
made its
its deepest
deepest im-im-
pression on
pression on the
the most
most twisted
twisted and
and insecure
insecure of
of his
his listeners.
listeners.
Among such
Among such people,
people, interest—and
interest—and votes-—could
votes—could be
be lost
lost as
as
quickly as
quickly they were
as they won. Furthermore,
were won. although aa common
Furthermore, although common
front
front of
of anti-Nazis
anti-Nazis was
was not
not made,
made, those
those who
who perceived
perceived what
what
Hitler
Hitler might
might mean
mean grew
grew alarmed.
alarmed. AtAt aa distance,
distance, the
the cor-
cor-
porate,
porate, all-powerful
all-powerful state
state of
of Italian
Italian Fascism
Fascism might
might have
have
sounded
sounded interesting;
interesting; worship
worship of
of militarism
militarism and
and the
the open
open
preaching
preaching ofof revenge,
revenge, rearmament,
rearmament, and
and war
war appealed
appealed to
to many
many
Germans.
Germans. But
But as
as the
the Nazis
Nazis grew
grew stronger
stronger they
they also
also came
came
under
under close
close general
general inspection.
inspection. The
The Brownshirts
Brownshirts were
were seen
seen
for
for what
what they
they were:
were: gross,
gross, sadistic
sadistic thugs
thugs organized
organized into
into
political
political gangs.
gangs.
The
The Nazi
Nazi Party
Party went
went into
into aa decline
decline more
more rapid
rapid than
than its
its rise.
rise.
Another
Another general
general election
election was
was held
held in
in November,
November, 1932.
1932. The
The
Nazi
Nazi vote
vote dropped
dropped from
from nearly
nearly fourteen
fourteen million
million to
to eleven
eleven
million.
million. From
From three
three hundred
hundred and and twenty
twenty Reichstag
Reichstag seats
seats they
they
declined
declined to
to one
one hundred
hundred andand ninety-six.
ninety-six. The
The Social
Social Democrats
Democrats
and
and the
the Communists
Communists together
together held
held two
two hundred
hundred and
and twenty-
twenty-
one seats. '
With
With loss
loss of
of popular
popular support,
support, contributions
contributions of
of money
money fell
fell
 62 IG
[G FARBEN
-off even
tofI' sharply. Nazi
more sharply.
even more Party morale
Nazi Party sagged. Hitler
morale sagged. had
Hitler had
come aa long
come long way
way from
from the Vienna municipal
the Vienna municipal flop
flop house,
house, but
but
he seemed
he seemed to
to be
be at
at the
the end
end of
of the
the road
read now.
now. It
It looked
looked asas if
if
the Nazis
the Nazis were
were through.
through.
Goebbels, the
Goebbels, the Nazi
Nazi propagandist
propagandist andand Hitler’s
Hitler’s second
second lieu-
lieu-
tenant, wrote
tenant, wrote aa surprisingly
surprisingly frank
frank description
description of
of the
the situation
situation
in the
in the Nazi
Nazi Party
Party inin the
the period
period immediately
immediately after
after the
the No-
No-
vember elections.
vember elections. The
The following
following quotations
quotations are
are excerpts
excerpts from
from
his diary
his diary for
for December,
December, 1932,
1932, which
which hehe allowed
allowed to
to be
be pub-
pub-
lished
lished in
in 1935:
1935:
“Deep
“Deep depression”
depression’ throughout
throughout the
the organization.
organization. One
One feels
feels
so
so worn
worn out;
out; one
one longs
longs fo1
for nothing
nothing but
but aa few
few weeks”
weeks’ escape
escape
from
from the
the Whole
whole business”
business. . .”
.” .
“Phone
“Phone call
call from
from Dr. Ley: the
Dr. Ley: the situation in the
situation in the party
party isis
getting worse from
getting worse from hour-to
hour to hour.”
hour.”
“The year
“The year 1932
1932 has
has brought
brought us eternal ill
us eternal ill luck.
luck. .. .. The
The
past was
past was sadsad and
and the
the future
future looks
looks dark
dark and
and gloomy;
gloomy; allall
chance and
chance and hopes
hopes have
have quite disappeared.”
quite disappeared.” -
“F01*
“For hours, the leader
hours, the leader paces
paces upup and
and down
down the
the room
room inin the
the
hotel.
hotel. It
It is
is obvious
obvious that
that he
he is
is thinking
thinking very hard. .. .. Suddenly
very hard. Suddenly
he
he stops
stops and
and says:
says: ‘If
‘If the party once
the party once falls
falls to
to pieces,
pieces, II shall
shall
shoot
shoot myself without more
myself without more ado.’
ado.’ A
A dreadful
dreadful threat
threat and
and most
most
depressing.”
depressing.” ,
Depression was the
Depression was the keynote.
keynote. In
In truth
truth there
there was
was more
more than
than
enough to depress
enough to depress Hitler
Hitler and
and his
his supporters.
supporters. Worst of all, the
most dreaded enemies, the Communists, continued to grow
steadily stronger. They
steadily stronger. They had
had never gained as spectacularly as
the Nazis but
the Nazis but they
they had
had shown continuous growth since
1924. By
1924. By the
the end
end of
of 1932
1932 they
they had
had drawn
drawn nearly even with
the Social
the Social Democrats
Democrats as the political leaders of the German
labor movement:
labor movement: they
they received
received six
six million votes as against :1a
little more
little more than
than seven
seven million for the Social Democrats. The
combined Social
combined Social Democrat
Democrat and Communist
Communist vote of thirteen
million was
million was considerably
considerably above the Nazis. »1
And yet—-—within
And yetuwithin aa few
few months
months Hitler was presented with
5
a I

THE SAVIOUR
THE SAVIOUR 63
63
the Chancellorship. Democracy
the Chancellorship. Democracy died quickly and violently in
Germany.
Germany. At the 'crucial
‘crucial moment Hitler
Hitler received
received backing
backing
more
more powerful
powerful than
than he
he had
had ever
ever dared
dared hope
hope for.
for. The
The in-
in-
dustrial
dustrial and
and financial leaders of
financial leaders of Germany,
Germany, with IG Farhen
Farben
in
in the
the lead,
lead, closed
closed ranks
ranks and
and gave
gave Hitler their full support.

It is
It no secret
is no secret that
that Big
Big Business
Business in
in all
all countries
countries has
has fought
fought
organized labor both economically and politically. There was
nothing mysterious in’
nothing mysterious in' the
the fact
fact that
that German businessmen
fought
fought labor.
labor. Hugo
Hugo Stinnes
Stinnes inin the
the midst
midst of of his
his most
most ambitious
ambitious
consolidations
consolidations found
found time
time to to harangue
harangue GermanGerman labor
labor to
to
abandon
abandon itsits eight-hour
eight-hour day
day and
and sweat
sweat outout aa daily
daily ten
ten hours.
hours.
Hjalmar
Hjalmar Schacht
Schacht was
was aa conservative
conservative sort sort of
of businessman
businessman
during
during the
the 1920’s.
1920’s. He
He was
was the
the head
head of of the
the Beichsbank,
Reichsbank, thethe
central
central bank
bank ofof Germany;
Germany; he he was
was khown
l(l'l0WI1 as
as the
the man
man who
who
had
had stabilized the mark
stabilized the mark and
and ended
ended inflation.
inflation. In
In those
those days
days it
it
would
would have
have been
been hard
hard to
to imagine
imagine that
that Schacht
Schacht would
would some
some .
day
day have
have toto stand
stand trial
trial before
before an
an international
international tribunal,
tribunal,
charged
charged with war crimes. i
Schacht,
Schacht, too,
too, argued
argued against
against the
the eight-hour
eight-hour day.day. In
In aa book
book
called
called The
The End
End of of Reparations,
Reparations, published
published in in 1931
1931 asas an
an ap-
ap-
peal
peal to
to Englishmen
Englishmen and and Americans,
Americans, hehe virtually
virtually asked\
asked for
for
support from businessmen of the rest of the world in fighting
German
German socialism.
socialism. He He fought
fought against
against social
social insurance
insurance be- be-
cause,
cause, he said, it weakened the moral fiber; his arguments
could
could have
have been
been taken
taken from
from Republican
Republican oratory
oratory in in the
the United
United
Sates
Sates during
during the
the first
first years
years of
of the
the Roosevelt
Roosevelt administration.
administration.
Business
Business leaders
leaders were
were equally
equally clear
clear in
in support
support of of aa rabid
rabid
German nationalism. The leading organ for German expan-
sion
sion abroad
abroad was
was Der
Der Alldcutsche
Alldcutsche Vcrband,
Verband, the the Pan-German
Pan-German
Association. Its official
Association. Its official aim
aim was
was “to revive German national
consciousness, to support ‘Germanism abroad’ and to further
effectively an energetic
effectively an energetic representation
representation ofof German interests in
Europe and overseas, particularly an elhcient eilicient colonial pol-
icy.”
icy.” Big
Big Business
Business was was aa main
main prop
prop ofof the
the Pan-German
Pan-German
 64 ' IG FARBEN

Association; the official

Association; the official history
history of
of the Association published
the Association published
in 1920
in 1920 was
was sponsored
sponsored by by the
the Federation
Federation ofof German
German In-In-
dustry.
dustry. Schacht
Schacht summed
summed up up for his colleagues
for his colleagues when
when hehe said:
said:
“For
“For German
German industry
industry thethe colonies,
colonies, like
like foreign
foreign plants,
plants,
represented hopes
represented hopes for
for the
the future,
future, aa possible
possible escape
escape from
from the
the
ever more
ever more difficult
difficult conditions
conditions ofof investment
investment and
and production
production
at home.”
at home.” i
The most
The most aggressive
aggressive parts
parts of
of the
the Nazi
Nazi program
program were were sup-
sup-
ported by
ported by the
the business
business community.
community. AgainAgain Schacht
Schacht may may fairly
fairly
be taken
be taken as as aa spokesman.
spokesman. TheThe Versailles
Versailles Treaty
Treaty he he dismissed
dismissed
curtly, saying:
curtly, saying:
“What is
“What is called
called the
the peace
peace treaty
treaty ofof Versailles
Versailles is is no
no treaty
treaty
and it
and it has
has not
not brought
brought peace.”
peace.” And,
And, more
more menacingly,
menacingly,
“. . .. Germany
Germany today
today maystand
may‘stand helpless
helpless before
before thisthis treaty;
treaty;
its protests
its protests against
against it
it will
will keep
keep the
the world
world breathless
breathless until
until
justice and
justice and morality
morality once
once again
again determine
determine the the course
course of of
human evolution.”
human evolution.” -.
Even the
Even the Hitler
Hitler idea
idea ofof aa master-race
master-race' was
was included
included in in
Schacht’s kind
Scl1acht’s kind of
of “justice
“justice and
and morality”
morality” which
which would
would “again
“again
determine the course of human evolution.” Concerning the
town of Memel he wrote, in his book for Anglo-American
consumption in
consumption in 1931:
1931.
“The overwhelmingly
“The overwhelmingly German
German territory
territory of
of Memel
Memel was
was
allowed, against
allowed, against its
its will,
will, to
to fall
fall completely
completely under Lithuanian
domination. Consider
domination. Consider what
what it means when parts of the highly
civilized and
civilized and cultivated
cultivated German
German people
people fall
fall under
under domination
of aa little branch of the human race, which, however much
of
one may
one may respect
respect it,
it, clearly
clearly stands
stands far
far behind
behindin
:11 culture
culture and
and
civilization. ” (My
civilization.” (My italics. -—R8.)
italics.-—R.S.) K
Yet, similar as his program was to theirs, Hitler could not
immediately win‘
immediately win' the full support of all of German business.
business.
A virulent
A virulent Jew-haiter
Jew-haiter like General Ludendorfl'
Ludendorff wanted to use
Hitler as
Hitler as aa means
means to establish himself, Ludendorff, as a mili-
tary dictator.
tary dictator.1ndustrialists Kirdorfl' and Thyssen
Industrialists like Kirdorif Thyssen hadpalso
had also
picked Hitler
picked Hitler as their man. But for important parts of Ger-

Ill L__
THE SAVIOUR 65
man business there were serious doubts about Hitler, at least
in
in the
the earlier
earlier years.
years. It
It was
was not
not easy
easy to
to forget
forget that
that Hitler
Hitler had
had
lived
lived in
in flop
flop houses
houses and
and had
had been
been aa petty
petty spy
spy for
for the
the Army.
Army.
The Nazi Storm Troopers were rowdies whose beer hall antics
were distasteful
were distasteful to to men
men of
of substance.
substance. -,
As in
As in so
so many
many other
other respects,
respects, IGIG Farben
Farben set set the
the pattern
pattern
in the
in the field
field ofof politics.
politics. As
As early
early as
as 1925,
1925, Carl
Carl Duisberg
Duisberg de-de-
claimed
claimed in in aa speech
speech toto the
the central
central organization
organization of of German
German
industry, the
industry, the Reichsverband
Reichsverband der der Deutschen
Deutschen Industrie:
Industrie:
“Be united,
“Be united, united,
united, united!
united! This
This should
should be
be the the uninter-
uninter-
rupted call
rupted call to
to the
the parties
parties in
in the
the .. .. .. Reichstag.
Reichstag. .. .. WeWe hope
hope
that our
that our words
words of of today
today will
will work,
work, and and will
will findfind the
the strong
strong
man
man who who will
will finally
finally bring
bring everyone
everypne underunder one one umbrella
umbrella
.. .. .. for
for he
he [the
[the strong
strong man]
man] is is always
always necessary
necessary for for us
us Ger-
Ger-
mans, as we have seen in the case of Bismarck.”
In
In another
another speech
speech Duisberg
Duisberg threw
threw inin another
another two
two cents’
cents’
worth
worth for
for dictatorship
dictatorship saying:
saying:
“If
“If Germany
Germany is is again
again to
to be
be great,
great, all
all classes
classes of
of our
our people
people
must
must come
come to
to the
the realization
realization that
that leaders
leaders are
are necessary
necessary who
who
can act
can act without
without concern
concern for
for the
the eaprices
caprices ofof the
the masses
masses .. .. .. it
it
he found
is to be hoped that there will be foundin1n Germany the neces-
sary number
sary number ofof such
such personalities
personalities who
who will
will be
he the
the leaders
leaders of of
that nation.
that nation. Only
Only then
then will
will she
she rise
1ise from
from deepest
deepest misery
misery to to
her former greatness.” '
Duisberg also made it clear that IG would throw its weight
into the
into the fight
fight against
against such
such signs
signs of
of decadence
decadence as
as higher
higher wages
wages
or shorter
or shorter hours
hours or
or social
social insurance.
insurance. In
In another
another of
of his
his 1925
1925
speeches he
speeches he said:
said:
“. .. .. there
“. there is
is no
no doubt
doubt that
that the
the German
German economy
economy cancan only
only
exist and
exist and fulfill
fulfill its
its duties,
duties, if
if the
the burdens
burdens of
of salaries,
salaries, wages,
wages,
taxes, freights,
taxes, freights, and—not
and—not least—-impositions
least—impositions forfor social
social se-
se-
curity, which
curity, which it
it must
must carry
carry are
are limited.
limited. .. ..
“. . .. German
“. German trade
trade unions
unions .. .. .. must
must from
from now
now on
on hold as
hold as
their primary
their primary duty
duty giving
giving consideration
consideration together
together with
with employ-
employ-
ers to
ers to increasing
increasing production
production .. .. .. then
then thegwage
thevwage and
and salary
salary
 66
66 IS FARBEN
IG
question not be]
[will not
question [will be] of exclusive importance
of exclusive importance as as it un-
it un-
still is
fortunately still
fortunately is today. .”
today. .. .”
But not rush
did not
IG did
But IG to support
rush to the Nazis,
support the Nazis, even in
though in
even though
the long
the long run out that
turned out
it turned
run it that all of the
all of proposed
objectives proposed
the objectives
by Duisberg
by Duisherg were under Hitler.
realized under
were realized The IG
Hitler. The did not
IG did go
not go
in support
all-out in
all-out any single
of any
support of or political
party or
single party leader.
political leader.
In aa canny
In canny way, IG supported
way, IG parties; whichever
several parties;
supported several won,
whichever won,
IG would
IG have friends
would have friends at court.
at court.
to the
directly to
Reporting directly
Reporting men of
top men
two top
the two of the Drs. Bosch
1G, Drs.
the IG, Bosch
and Duisberg,
and Duisberg, was small and
was aa small secret Political
and secret’ Committee.
Political Committee.
Each of
Each of four men on
four men this committee
on this committee was responsible for
was responsible for aa.
link from
link from IG one political
to one
IG to political party: Drs. Kalle
party: Drs. Kalle and Hass-
and Hass-
respectively, in
worked, respectively,
laoher worked,
lacher the German
in the German People’s Party
People’s Party
and the German National Party; those two were generally
two were generally
the most
the political parties
popular political
most popular in business
parties in business circles. Drs.
circles. Drs.
Hummel and
Hummel Lammers were
and Lammers responsible for
were responsible for two con-
other con-
two other
groups: the
servative groups:
servative German Democratic
the German Party and
Democratic Party the
and the
Center.
Catholic Center.
Catholic ''
Thus IG
Thus assured itself
IG assured itself of representation along
of representation broad
along aa broad
front on the Right Wing of German politics. According to
testimony on
testimony on IG given by
operations given
IG operations Baron von
by Baron Schnitzler,
von Schnitzler,
the idea
the idea “. that IG
“. .. .. that owing to
IG owing to its great public
its great importance
public importance
have certain
should have
should links with
certain links With the different leading
the different politicalt
leading political
originated with
parties originated
parties with the late Dr.
the late Duisberg.” Von
Dr. Duisberg.” Schnitzler
Von Schnitzler
testified that
further testified
further made judicious
IC made
that IG judicious use of hard
use of cash in
hard cash in
' trying to influence elections; he estimated that each election
for the
for Reichstag cost
the Reichstag IG in
cost IG neighborhood of
the neighborhood
in the 400,000
of 4-00,000
marks.
marks. _.
. By 1930
By clear that
was clear
it was
1930 it that the Nazis, in
the Nazis, spite of
in spite unsavory
of unsavory
appearances, would bear hear watching. During 1931 and 1932,
IG made
IG made several secret contributions to the Nazi war chest.
Some of
Some of the
the younger
younger men
men in
in the
the IG
IG leadership
leadership were
were assigned
assigned
to maintain connections with the Nazis. One of these men was
Sehmitz—the same
Max Ilgner, a nephew of Hermann Schmitz——the Schmitz
same Schmitz
who was
who was Rathenau’s
Rathenau’s associate
associate during World War I and who

7 L.__..
THE SAVIOUR
THE SAVIOUR I f 67
67
was
was the
the president of IG
president of IG during.World
during.World War War ll.
II. Ilgner
Ilgner was
was
young, able,
young, able, boundlessly
boundlessly energetic
energetic and
and ambitious.
ambitious. It It was
was he
he
who
who established
established IG’s
IG’s international spy ring.
international spy ring. He
He early
early made
made
contact with the
contact with the Nazi
Nazi leadership.
leadership. During
During interrogation
interrogation by by
American
American investigators
investigators in
in 1945,
1945, Ilgner
Ilgner complained
complained thatthat the
the
Nazi
Nazi Funk
Funk (a
(a war
war criminal
criminal tried
tried at
at Nuremberg)
Nuremberg) had
had obtained
obtained
money
money from
from his
his department
department in in 1931
1931 on
on false
false pretenses;
pretenses; other
other
Nazis were
Nazis were shaking
shaking down
down other.departments
otherdepartments of of IG
IO at
at exactly
exactly
the same
the same time
time and
and for
for the
the same
same purposes.
purposes.
Even closer
Even closer ties
ties were
were maintained
maintained byhy anan IG
IG inan
inan named
named
Gattineau. Gattineau
Gattineau. Gattineau hadhad been
been the
the personal
personal secretary
secretary first
first
of Duisberg,
of Duisberg, then
then of
of Bosch.
Bosch. He
He was
was also
also in
in charge
charge of
of IG’s
IG’S
press relations;
press relations; in
in this
this capacity
capacity he
he met
met Hitler
Hitler and
and Goebbels.
Goebbels.
Through Gattineau’s
Through Gattineau’s maneuvers,
maneuvers, Hermann
Hermann Schmitz
Schmitz was
was made
made
an honorary
an honorary member
member of
of the
the Reichstag
Reichstag after
after Hitler
Hitler took
took over.
over.
But all
But all these
these relations
relations with
with the
the Nazis
Nazis were
were maintained
maintained
merely as
merely as aa way
way of
of hedging
hedging IG’s
IG’s political
political bets.
bets. IG’s
IG’s first
first
choice was
choice was the
the more
more respectable
respectable type
type of
of reactionary,
reactionary, like
like
Bruening. It'was
Bruening. It was under
under [the
the conservative
conservative governments
governments from
from
1930 to-1932
1930 to- 1932 that
that IG
1G felt
felt most
most comfortably
comfortably at
at home.
home.
The top
The top men
men of of IG
IG avoided
avoided taking
taking oflicial
official government
government jobsjobs
themselves. For
themselves. For example,
example, Schmitz
Schmitz himself
himself several
several times
times re-
re-
fusetl’to accept
fusedto accept Bruening’s
Bruening’s offer
offer to
to create
create forfor him
him thethe new
new
office of
office of “Commissar
“Commissar of of German
German Industry.”
Industry.” This This was
was inin line
line
with aa policy
with policy laid
laid down
down byby Duisberg:
Duisberg: to to stay
stay clear
clear ofof open
open
government ties,
government ties, but
but to
to exert
exert pressure
pressure in in secret
secret conferences.
conferences.
A liberal
A liberal German
German commentator,
commentator, Helmut
Helmut Wickel,
Wickel, wrote
wrote inin
1932 that:
1932 that: _
“Quite according
“Quite according to to Duisberg’s
Duisberg’s wishes
wishes things
things today
today [1931-
[1931-
32] are
32] are no
no longer
longer decided
decidedin1n the
the Reichstag,
Reichstag, but butin 1n irresponsi-
irresponsi-
ble councils
ble councils ofof industrialists,
industrialists, ofof whom
whom Schmitz
Schmitz is is the
the most
most
important and
important‘ and influential.”
influential.” ,
Nevertheless IG
Nevertheless 10 did
did send
send its
its second-flight
se’cond-flight leaders
leaders into
into the
the
government. A
government. A member
member of of the
the Board
Board of of Directors,
Directors, Professor
Professor
Warmhold, became
Warmbold, became Minister
Minister of of Economics
Economics under under Bruening.
Bruening.

I
 68
68 IG FARBEN
IG FARBEN '
Previously
Previously Professor
Professor Moldenhauer
Moldenhauer had had been
been inin the govern-
the govern-
ment. But
mcnt. But Schmitz
Schmitz himself
himself acted
acted as as aa close
close adviser
adviser to to the
the
Chancellor; for
Chancellor; example, he
for example, he accompanied
accompanied BrueningBruening to to
London
London in in 1931
1931 to to take
take part
part inin international
international discussions.
discussions.
There
There waswas only
only one
one defect
defect in
in the
the system
system ofof political
political control
control
through Bruening
through Bruening and and thethe old-line
old-line conservative
conservative parties:
parties: Ger-
Ger-
many was
many was still
still aa democracy
democracy and and it it took
took votes
votes to stay in
to stay in office.
office.
The old-line
The old-line parties
parties of of the
the Right
Right Wing Wing were
were losing
losing votes
votes
rapidly. Hitler
rapidly. Hitler waswas vulgar,
vulgar, uncouth,
uncouth, thoroughly
thoroughly unpleasant,
unpleasant,
long-winded, and
long-winded, and perhaps
perhaps aa little
little unbalanced.
unbalanced. But But among
among all all
the ultra-nationalists
the ultra-nationalists and and reactionaries
reactionaries he he was
was thethe one
one best
best
able to
able to win
win votes.
votes.
When even
When even Hitler’s
Hitler’s organization
organization started
started to
to lose
lose ground
ground in in
the fall
the fall of
of 1932,
1932, the the upper
upper circles
circles of of German
German Big Big Business
Business
were confronted
were confronted by by' aa most
most serious
serious crisis.
crisis.
An astonishingly
An astonishingly frankfrank picture
picture of of what
what Germany’s
Germany’s business
business
leaders were
leaders were thinking
thinking aboutabout in in the
the critical
critical days
days of of 1932
1932 is is
given in
given in aa series
series ofof letters
letters which
which circulated
circulated privately
privately as as aa sort
sort
of advisory
of advisory service
service underunder thethe title
title “Letters
“Letters to to Leaders”
Leaders”
(Fuehrcr Briefe)
(Fuehrer Briefc) . Ever since 1918,'Big
1918,1Big Business had lived in
the shadow
the shadow of of socialism
socialism and and the
the nationalization
nationalization of of industry.
industry.
Business had
Business had quickly
quickly takentaken the
the measure
measure of of the
the Social
Social Demo-
Demo-
crats; for
crats; for fourteen
fourteen yearsyears the
the Social
Social Democrats
Democrats had had remained
remained
the dominant party in Germany without effecting the slightest
change in the position of Big Business. The Right Wing
parties in
parties in the‘
the' Reichstag
Reichstag could could ward
ward off off any
any threats.
threats. But
But nownow
Germany was
Germany was gripped
gripped by by aa deep
deep economic
economic depression.
depression. The The
Right Wing
Right Wing parties
parties likelike the
the German
German National
National and and German
German
People’s parties
People’s parties faded
faded badly.
badly. The
The Social
Social Democrats
Democrats were
were
being replaced
being replaced byby the
the Communists.
Communists. AndAnd there
there was
was every
every
new
reason to believe that the Communists meant business. If now
Hitler’s Nazis were allowed to disintegrate, the game was up
for the German monopolies and cartels. The situation was
summarized in
summarized in one
one of
of the
the “Letters
“Letters to
to Leaders”
Leaders” (for
(for Septem-
Septem-
ber, 1932) as follows:
ber, 1932) as follows:

2‘ f .
THE SAVIOUR
THE SAVIOUR ' 69
69
“The process of
“The process the transition
of the transition which
which wewe are
are undergoing
undergoing at
at
present,
present, because
because the
the economic
economic crisis
crisis destroys
destroys these
these achieve-
achieve-
ments
ments [i.e.,
[i.e., the
the gains
gains made
made by
by the
the Social
Social Democrats],
Democrats], passes
passes
through
through the
the stage
stage of
of acute
acute danger
danger that,
that, with
with the
the disappearance
disappearance
of
of these
these achievements,
achievements, the
the mechanism
mechanism of of disrupting
disrupting the
the work-
work-
ing
ing class
class which:is
whichtis based
based upon
upon these
these achievements
achievements will
will cease
cease
to
to operate,
operate, with
with the
the result
result that
that the
the working
working class
class will
will begin
begin
to
to turn
turn in
in the
the direction
direction of
of communism
communism and and the
the bourgeois
bourgeois rule
rule
will
will be
be faced
faced with
with the
the necessity
necessity of
of setting
setting up
up aa military
military dic-
dic-
tatorship.
tatorship. This
This stage
stage would
would mark
mark the
the beginning
beginning of of the
the phase
phase
of
of the
the incurable
incurable sickness
sickness ofof bourgeois
bourgeois rule.
rule. As
As the
the old
old sluice
sluice
mechanism
mechanism [i.e.,
[i.e., drawing
drawing off
off of
of working
working class
class resentment
resentment byby
minor
minor concessions]
concessions] can can no
no longer
longer bebe sufficiently
sufficiently restored,
restored,
the
the only
only possible
possible means
means ofof saving
saving bourgeois
bourgeois rule
rule from
from this
this
abyss
abyss is
is to
to effect
effect the
the splitting
splitting of the working
of the working class
class and
and its
its
”tying
tying to
to the
the state
state apparatus
apparatus byby other
other and
and more
more direct means.
direct means.
Herein
Herein lie
lie the
the positive
positive possibilities
possibilities andand the
the tasks
tasks of
of National
National
Socialism.”
Socialism.” ' ‘_
Hitler
Hitler was
was the
the only
only choice.
choice. He
He was
was given
given the
the complete
complete back-
back-
ing
ing of
of German
German industry
industry and
and finance.
finance. With
With that
that backing
backing he he
quickly
quickly established
established a a blood-thirsty
blood-thirsty fascist
fascist state.
state.
The
The men
men of
of IG,
IG, of
of course,
course, took
took aa leading
leading part
part in
in the
the critical
critical
negotiations
negotiations which
which resulted
resulted in
in making
making Hitler
Hitler Chancellor
Chancellor of of
Germany.
Germany. During
During Hitler’s
I-Iitler’s twelve
twelve years
years in
in power
power there
there were
were
rumored
rumored accounts
accounts of
of the
the final
final meetings.
meetings. Finally,
Finally, in
in the
the sum-
sum-
mer
mer of
of 1945,
1945, Baron
Baron Georg
Georg von
von Schnitzler
Schnitzler wrote
wrote for
for his
his
American
American interrogators
interrogators the
the story
story of
of the
the historic
historic evening
evening in
in
the
the course
course of
of which
which Hitler
Hitler received
received the
the decisive
decisive support
support of
of
the
the German
German business
business leaders.
leaders. Von
Von Schnitzler
Schnitzler was
was one
one of
of the
the
half-dozen
half-dozen most most important
important men
men inin the
the IG,
IG, chief
chief ofof the
the IG
IG
sales
sales department
department and and generally
generally aa front-man
front-man forfor state
state oc-
oc-
casions.
casions. It It was
was early
early in
in 1933,
1933, he
he wrote,
wrote, that:
that:
“.
“. .. .. four
four members
members of of the
the Vorstand
Vorstand [managing
[managing directors]
directors]
of
of I.
I. G.
G. Farben
Farben including
including Dr.
Dr. Bosch,
Bosch, the
the head
head ofof the
the Vorstand,
Vorstand,
and
and myself
myself werewere asked
asked by
by the
the office
office of
of the
the President
President of of the
the
70
70 i , lG
to FARBEN
Reichstag
Reichstag to to attend
attend aa meeting
meeting in in his
his house.
house. .. .. .. II went
went to
to the
the
meeting which
meeting Which was
was attended
attended byby about
about 20
20 persons
persons who who II believe
believe
were mostly
were mostly leading
leading industrialists
industrialists from
from thethe Ruhr.”
Ruhr.”
Among the
Among the men
men whom
whom VonVon Schnitzler
Schnitzler listed
listed as
as being
being present
present
were Schacht,
were Schacht, Krupp
Krupp von von Bohlen,
Bohlen, andand Albert
Albert Vogler,
Vogler, the
the
leader of
leader of the"
the' big
big steel
steel trust,
trust, Vereinigte
Vereinigte Stahlwerke.
Stahlwerke. Accord-
Accord-
ing to
ing to Von
Von Schnitzler:
Schnitzler:
“.‘ .. .. Dr.
Dr. Schacht
Schacht acted
acted as
as aa kind
kind ofof host.
host. While
While II hadhad ex-
ex-
pected the
pected the appearance
appearance of of Goering,
Coering, Hitler
Hitler entered
entered the the room,
room,
shook hands
shook hands with
with everybody
everybody and and took
took aa seat
seat at
at [the
[the head]
head] ofof
the table.
the table. InIn aa long
long speech
speech he
he talked
talked mainly
mainly about
about the the danger
danger
of Communism
of Communism over over which
which hehe pretended
pretended that
that he
he hadhad just
just won
won
aa decisive
decisive victory.
victory.
“.. .. .. Krupp
Krupp von von Bohlen
Bohlen thanked
thanked Hitler
Hitler for
for his his speech.
speech.
After Hitler
After Hitler had
had left
left the
the room,
room, Dr.
Dr. Schacht
Schacht proposed
proposed to to the
the
meeting the
meeting the raising
raising of
of an
an election
election fund
fund of
of .. .. .. RM
RM 3,000,-
3,000,-
000 . . .””
000
The money
The money was
was given.
given. Von
Von Schnitzler
Schnitzler talked
talked about
about the the
matter with
matter with Bosch.
Bosch. He
He says
says that
that “.
“. .. .. Dr;
Dr; B05311
Bosch did
did _. _. .. not
not
make any
make any remark
remark toto my
my report,
report, but
but shrugged
shrugged his
his shoulders.”
shoulders.”
As befitted
As befitted its
its great
great size,
size, IG
10 Farben
Farben contributed
contributed ten
ten per
per
cent of
cent of the
the whole
whole fund.
fund. ''
Now Hitler
Now Hitler could
could move
move with
with utmost
utmost vigor.
vigor. The
‘The Nazi
Nazi Party
Party
treasury was
treasury was full;
full; the
the Brownshirt
Brownshirt thugs
thugs were
were onon the
the loose.
loose.
On the 27th of February, 1933, the Nazis themselves set fire
to the
to the Reichstag.
Reichstag. This
This was
was proclaimed
proclaimed as
as the
the work
work of
of the
the
“Reds.” With
“Reds.” With Nazi
Nazi Storm
Storm Troopers
Troopers sworn
sworn in
in as
as special
special police,
police,
tens of
tens of thousands
thousands of of anti-fascists
anti-fascists of
of all
all stripes
stripes were
were beaten,
beaten,
arrested, and
arrested, and even
even murdered.
murdered. .
The way
The way was
was cleared
cleared for
for the
the March,
March, 1933,
1933, elections.
elections. Hitler
Hitler
had plenty
had plenty of
of money.
money. He He had
had backing
backing in
in the
the most
most respectable
respectable
business circles and therefore in most government quarters. '
The opposition
The opposition was
was atat least
least partly
partly terrorized.
terrorized. When
When thethe March
March
elections were
elections were over
over the
the Nazis
Nazis had
had gained
gained six
six million
million votes.
votes.
In the
In the space
space of
of aa few
few months the remaining
months the remaining minority parties
 1 .
J

THE SAVIOUR 71
in
in the
the Reichstag
Reichstag were
were banned
banned and
and the trade unions
the trade unions were
were
broken.
broken.
The Nazi
The Nazi victory
victory was
was complete.
complete. German
German industry
industry could
could set
set ,
to work
to work in
in earnest
earnest on
on war
War preparations.
preparations.

\
 5
5
Arms
Arms by
by Night
Night

In 1918 Germany
In 1918 was exhausted
Germany was defeated. In
and defeated.
exhausted and 1923
In 1923
was in
Germany was
Germany, as the
chaos as
in chaos of inflation.
result of
the result 1931
By 1931
inflation. By
had so
Germany had
Germany recovered that
fat recovered
so far for the
writer for
that aa writer American
the American
Industrial Conference
National Industrial
National Board was
Conference Board to say:
able to
was able “The
say: “The
of German
products of
products industries are
German industries throughout the
sold throughout
are sold world;
the world;
industrialequipment has
the industrial_equipment
the has been thoroughly organized;
been thoroughly the
organized; the
hast safely
currency has
currency placed on
been placed
safely been gold basis;
the gold
on the foreign
the foreign
basis; the
increased at
has increased
trade has
trade an unparalleled
at an unparalleled rate.”
rate.”
recovery was
German recovery
German astonishing. It
indeed astonishing.
was indeed It made Ger-
made Ger-
/
once more
many once
many menace to
full-scale menace
more aa full-scale peace of
the peace
to the the
of the
And, to
world. And,
world. the danger,
increase the
to increase deal of
great deal
danger, aa great the
of the
had been
recovery had
recovery based directly
been based the re-establishment
on the
directly on of
re-establishment of
industries and
war industries
war the rebuilding
and the of aa military‘maehine.
rebuilding of It
military‘machine. It
can fairly
can be said
fairly be the entire
that the
said that from the
period from
entire period of
end of
the end
War II to
World War
World entry of
the entry
to the Hitler as
of Hitler as Chancellor was
Chancellor was
dominated by
dominated the German
by the to rearm
effort to
German effort the face
in the
rearm in the
of the
face of
Versailles Treaty.
Versailles Treaty. \
It is
It possible—uin fact
is possible——-in it is
fact it probable——that the
is probable——that of the
bulk of
the bulk the
people did
German people
German know that
not know
did not rearming and
were rearming
they were
that they and
72
72 ‘

J ;.'-_:_‘~
‘ti 4

/I
/ rt
l
 \

ARMS BY
ARMS NIGHT'
BY NIGHT -' 73
7'3
preparing for war. But some Germans did know exactly what
they were
they were doing.
doing. And
And those
those Germans,
Germans, unfortunately
unfortunately for
for the
the
many tens
many tens of
of millions
millions of
of people
people who
who had
had to
to die
die in
in World
World War
War
l when. the decisions were made.
II, were the ones who counted when
Carl Duisberg,
Carl Duisberg, thethe head
head of
of IG
IO Farben,
Farben, was
was one
one of
of those
those

1
l
who knew
who knew best
pressures
He knew
He knew the
best what
pressures within
what was

the danger
danger of
was going
within Germany
of war
going on.
Germany which
war which
which lay
on. He
He was
which forced
was well
forced it
lay ahead,
well aware
it toward
aware of
of the
toward expansion.
and he
ahead, and he and
and IG
IG
the
expansion.

Farhen
Farben were
were in
in the
the lead
lead in the preparation
in the for anything
preparation for anything that
that
might come.
might come. The
The situation
situation had
had to
to be
be handled with great
handled with great care
care
and
and secrecy. As Duisberg
secrecy. As Duisberg himself
himself said
said to
to aa group
group ofof news-
news-
' papermen:
papermen: “.“. .. .. before
before the
the war
war we
we frequently
frequently trumpeted
trumpeted ourour
l might and
might
thus
and our
thus evoked
our importance
evoked the
importance far
the envy
envy of
of the
far too
too loud
the whole
loud in
whole world.
in the
world. Now
the world,
Now that
world, and
and
that aa large
large
part of
part of that
that which
which we
we have
have created
created has
has been
been taken
taken from
from us,
us,
directly
directly or
or indirectly,
indirectly, we
we must
must now
now in
in our
our poverty
poverty be
be par-
par-
ticularly
ticularly careful
careful to
to say
say as
as little
little as
as possible.”
possible.”
But
But careful
careful as
as Duisberg
Duisberg Was,
was, he
he could
could not
not entirely
entirely strip
strip
his
his public
public statements
statements of
of the
the overtones
overtones of
of thunder
thunder of
of aa war
war
which
which was
was in
in the
the making.
making. In
In one
one of
of his
his speeches
speeches before
before the
the
central
central council
council of
of German
German industry
industry he
he let
let slip
slip the
the following
following
statement of warlike faith: -
“Gentlemen!
“Gentlemen! You You may
may believe
believe me
me when
when II say say that
that nobody
nobody
willingly
willingly admits
admits the
the weakness
weakness ofof his
his country.
country. Yet Yet neverthe-
neverthe-
less
less II consider
consider myself
myself duty-bound
duty-bound to to tell
tell everyone
everyone at at all
all
times,
times, at
at home
home and
and abroad:
abroad: Let
Let us
us admit
admit it, it, war
war is
is impossible
impossible
for
for Germany.
Germany. We Vlfe are
are disarmed.
disarmed. .. .. But
But back
back to to deeds.
deeds. Gentle-
Gentle-
men!
men! Germany
Germany was was made
made great
great and
and mighty
mighty by by her
her deeds
deeds inin
peace. The whole world knew her, and the whole world must must\
come to know her again. We must reconstruct. . .Let . Let usus
work!”
work!” '
Dr. Duisherg
Duisberg and his colleagues did go to-work, and with
‘ great
great success.
success. In
In only
only aa few
few years
years they
they nono longer
longer had
had toto admit
admit
that war
that war was
was impossible
impossible forfor Germany.
Germany.
Under the
Under the terms
terms ofof the
the Versailles
Versailles Treaty
Treaty Germany
Germany was was
~
r—ir
r-—T7 .._——.-—.v,7
___-_-.- -~.—

74
74 ., ' ..1 ,, ’ ‘‘ IG FARBEN
IG FARBEN
army of
standing army
allowed aa standing
allowed of 100,000 men. To
100,000 men. To supply this
supply this
army only
small army
small handful of
only aa handful factories were
German factories
of German allowed
were allowed
produce military
to produce
to For the
equipment. For
military equipment. few years
first few
the first after
years after
signing of
the signing
the treaty it
the treaty
of the necessary for
was necessary
it was war-minded
for war-minded
and militarists
Junkers and
Junkers work in
to work
militarists to secrecy to
complete secrecy
in complete begin
to begin
process of
the process
the rearmainent.
of rearmament. _. -«
The first
The step in
first step way for
the way
paving the
in paving new army
for aa new was to
army was to
good name of
the goodname
save tlie
save the army
of the which had
army which had just been de-
just been de-
feated. If
feated. new army
If aa new to be
was to
army was builtin
he built darkness of
the darkness
1n the night,
of night,
glory of
the glory
the must be
arms must
German arms
of German preserved. The
be preserved. offieer
The officer
must still
caste must
caste respected. To
be respected.
still be preserve hope,
To preserve hope, the aura of
the aura of
must never
invincibility must
invincibility And thus
lost. And
be lost.
never be grew up
thus grew legend
the legend
up the
that the
that German Army
the German Army had really been
not really
had not beaten in
been beaten field.
the field.
in the
before the
Even before
Even was over
war was
the war Junker generals
the Junker
over the pre-
had pre-
generals had
pared the
pared ground for
the ground “stab in
the “stab
for the hack” alibi
the back”
in the Which be-
alibi which be-
theme song
came aa theme
came for German
song for war-makers. In
German war-makers. In realistic terms,
realistic terms,
German High
the German
the Command knew
High Command knew that war was
the war
that the lost
Was lost
the failure
after the
after the great
of the
failure of offensives of
Spring offensives
great Spring In
1918. In
of 1918.
1918, Ludendorff
August, 1918,
August, declared. in
Ludendorft declared. the Crown
in the Council
Crown Council
the war
that the
that not be
could not
war could Shortly afterwards,
.won. Shortly
be .won. Crown
afterwards, Crown
Prince Rupprecht,
Prince commanded one
who commanded
Rupprecht, who one ofof the army
three army
the three
wrote that
groups, wrote
groups, Germany must
that Germany peace to
make peace
quickly make
must quickly to
avoid aa complete
avoid disaster. In
complete disaster. Ludendorfl' and
September, Ludendorff
In September, and
Hindenburg went directly to
Hindenburg the Kaiser;
to the demanded that
they demanded
Kaiser; they that
request for
aa request for an armistice go
an armistice go to Americans. And
the Americans.
to the And in the
in the
111 A)~J,1l~"——ll‘—-Um4 anm . .
first days of
first days Hindenburg repeated
October Hindenburg
of October repeated the request of
the request the
of the ‘@'§fl

Army for
Army for an armistice in
an armistice to the
a'letter to
in a-letter Reich Chancellor.
the Reich Chancellor.
But having
But convinced the
having convinced authorities that
civilian authorities
the civilian war
the war
that the
was lost
was and aa quick
lost and must be
end must
quick end the generals
sought, the
be sought, pulled
generals pulled ~.-_a. _,,. ,
E

back and played aa coy

and played Late in
game. Late
coy game. Lude'ndorif was
October Ludendorff
in October was
i
back
making statements about
strong statements
making strong necessity of
the necessity
about the fighting to
of fighting to aa i
~:
bitter end
bitter end andand the dishonor of
the dishonor an army
of an breaking off
army breaking before
off before E

completely beaten.
completely The civilians
beaten. The acting on
Were acting
civilians were declared
the declared
on the
judgment of
judgment of the generals, but
the generals, but the conduct of
the conduct ne-
armistice ne-
of armistice 3

gotiations was
gotiations was left entirelyin
left entirely 1n civilian hands. In
civilian hands. In the set-
final set-
the final
t

-31
ii ./ .
 \ .
ARMS
ARMS BY NIGHT
BY NIGHT ,, ' 75'
75
tlement
tlement of
of armistice
armistice terms
terms only
only one
one high-ranking
high-ranking soldier,
_ ,__‘_
I
soldier,
General
General von
von Winterfeldt,
Winterfeldt, went
went along
along as
as aa liaison
liaison officer.
oflicer. In
In
his
his memoirs
memoirs written
written after
after the
the war,
war, Prince
Prince Max
Max of of Baden
Baden waswas
able
able to
to say:
say: . _
“Our
“Our prevailing
prevailing feeling
feeling was
was one
one of
of relief
relief that
that at
atleast
least the
the
Army
Army would
would not
not have
have toto wait
wait on
on F00
Foch.” .
The
The army
army ofof 100,000
100,000 could
could not
not provide
provide places
places for
for all
all the
the
young
young officers,
oflicers, sons
sons of
of Junker
Junker families,
families, who
who wanted
wanted nothing
nothing
more
more than
than aa chance
chance toto prove
prove that
that they
they had
had been
been stabbed
stabbed in in
the
the ‘back
‘back and
and that
that their
their army
army was
was after
after all
all invincible.
invincible. But
But
many
many of of them
them did
did find
find places,
places, and
and kept
kept alive
alive the
the function
function of of
their
their class,
class, in
in the
the Free
Free Corps
Corps which
which were
were organized
organized to to put
put
down the revolutionary
down the German industrial
revolutionary German workers. Heinrich
industrial workers. Heinrich
Hauser, who
Hauser, been aa Junker
had been
who had himself, tells
cadet himself,
Junker cadet how his
tells how his
Free
Free Corps
Corps was
was organized:
organized: -
“We Were
“We group of
were aa group and middle-
young and
of young middle-aged ofiicers. .. ..
aged oificers.
Our
Our gatherings
gatherings took took place
place secretly
secretly and
and 1nin civilian
civilian dress,
dress, for
for
the c_ity was
the_city was under
under the the rule
rule ofof the
the Workers’
Workers’ and and Soldiers’
Soldiers’
Conncil.
Council.
“.
“. One One man,
man, aa U-boat
U-boat commander,
commander, had, had, like
like many
many others,
others,
refrained
refrained fromfrom surrendering
surrendering his his boat
boat toto England.
England. It It was
was sunk
sunk »
in
in shallow
shallow water
water somewhere
somewhere in in the Baltic. It
the»Baltic. It was
was quite
quite intact
intact
and
and fully
fully equipped;
equipped; aa man man would
would have
have only
only to to go
go down
down inin aa
diving
diving suit
suit to
to bring
bring itit to
to the
the surface.
surface. The
The U—boat
U-boat commander
commander
proposed
proposed (and (and wewe lads
lads were
were quite
quite ready
ready to to follow
follow him)
him) that
that
‘we
we continue
continue the the war
war with
with England
England on on our
our ownown account.
account. .. ..”,’
But
But there
there waswas work
work closer
closer atat hand.
hand. Between
Between December,
December, .
1918,
1918, andand April,
April, 1919,
1919, Hauser
Hauser reports,
reports, his his company
company tooktook
part
part in
in the
the capture
capture of of at
at least
least six
six cities
cities from
from the the revolutionary
revolutionary
Spartacists.
Spartacists. In In the‘process
the_ process they they regained
regained the the life
life of
of mercen-
mercen-
aries.
aries. Hauser
Hauser wrote
wrote that
that inin the
the captured
captured castle
castle of of Brunswick——-
Brunswick-—
“.
“. . .. II slept
slept in'
in the
the Princess
Princess of of Brunswick’s
Brunswick’s yellow yellow marble
marble
bathtub,
bathtub, and and all
all my
my menmen worewore heavy
heavy silksilk shirts
shirts embroidered
embroidered
with
with the
the Brunswick
Brunswick arms; arms; theythey were
were mademade of of the
the castle
castle
curtains.
curtains.
\
76
76 lG_ FARBEN
IO. FARBEN
“When we
“When we took Merseburg, we
took Merseburg, quartered in
were quartered
we were coflin
in aa collin
factory.
factory. Each
Each soldier
soldier set
set up
up aa coffin
coffin for
for aa bed,
bed, and
and aa child’s
child’s
coIHn
collin beside
beside it
it for
for his
his knapsack.
knapsack. .. .”
.”
Later
Later the
the Free
Free Corps
Corps were_somewhat
were_somewhat centralized
centralized into
into aa
“Black
“Black Militia”
Militia” which
which was
was still
still aa loosely-joined
loosely-joined skeleton
skeleton
organization
organization atat the
the time
time when
when Hitler
Hitler announced
announced thethe return
return toto
general
general conscription.
conscription. OutOut of
of the
the Free
Free Corps
Corps and
and Black
Black Militia
Militia
came
came the
the leaders
leaders of
of the
the mass
mass army
army of
of the
the Nazis.
Nazis. Free
Free Corps
Corps
officers
oflicers soldiered
soldiered all
all over
over the
the world,
world, leaving
leaving their
their imprint
imprint onon
most
most ofof the
the armies
armies ofof South
South America
America andand fully
fully preserving
preserving
the
the German
German military
military tradition.
tradition. And
And toto Show
show that
that Germany
Germany
was
was nono place
place for
for pacifists
pacifists and
and defeatists,
defeatists, the
the young
young killers
killers
of
of the
the free-booting
free-booting organizations
organizations assassinated
assassinated men
men like
like Erz-
Erz-
berger
bergcr and
and Rathenau.
Rathenau. The
The latter
latter were
were identified
identified as
as eivilian
civilian
leaders
leaders who
who gave
gave Up
up the
the war.
war.
In
In aa few
few years,
years, semi-military
semi-military organizations
organizations became
became more
more
open.
open. The
The veterans’
veterans’ organization,
organization, the
the Stahlhelm,
Stahlhelm, maintained
maintained
military
military discipline.
discipline. The
The Nazi
Nazi Storm
Storm Troopers
Troopers had
had uniforms
uniforms
and
and weapons
weapons and
and extensive
extensive practice
practice in
in street
street fighting
fighting against
against
Jews
Jews and
and “Reds.”
“Reds.”
The
The regular
regular army
army of
of 100,000,
100,000, the
the Reichswehr,
Reichswehr, proved
proved con-
con-
veniently
veniently flexible.
flexible. 1f the draft
If /the draft called
called for
for one
one man
man byby the
the
common
common name
name ofof Heinrich
Heinrich Mueller,
Mueller, ten
ten others
others by
by the
the same
same
name
name might
might be
he called
called up
up and
and trained
trained as
as well.
well. By
By maintaining
maintaining
rotation
rotation of
of the
the 100,000
100,000 it it was
was possible
possible to
to train
train key
key non- -coms
non-coms
and
and oIlieers
oilicers for
for the
the full-scale
full-scale army
army under
under Hitler.
Hitler. II
The German pacifist Carl Mertens estimated that as early
as 1930 Germany had 374,000 trained soldiers under arms
at one time. There were 99,000 in the regular Reichswehr;
110,000 military police, border guards, and railroad guards;
150,000
150,000 in in the
the paramilitary
paramilitary outfits
outfits like
like the
the Stahlhelm
Stahlhelm and
and
the Nazi Storm Troops; and at least 15,000 civilians attached
to
to the Reichswehr in
thelieichswehr in jobs
jobs which
which in
in other
other countries
countries were
were done
done
by
by soldiers.
soldiers. I
Most important of of all, the nerve center of the German

i l
r ARMS BY NIGHT
ARMS BY NIGHT '' .. 77
77
Army
Army was
was preserVed
preserved intact. In several
intact. In forms the
several forms the General
General
Staff,
Staff, ultimate
ultimate citadel
citadel of
of Junkerdom,
Junkerdom, was
was kept
kept alive.
alive. Officially,
Officially,
the
the General
General Staff
Staff had
had been
been abolished
abolished .by
_by the
the terms
terms of
of Ver-
Ver-
sailles.
sailles. But
But the
the Weimar
Weimar Republic
Republic waswas permitted
permitted aa Ministry
Ministry
of
of Defense.
Defense. And And within
within the
the Ministry
Ministry ofof Defense
Defense there
there was
was
organized
organized aa “General
“General Troops
Troops Office.”
Office.” There
There was
was never
never aa
clear
clear description
description of of the
the oflicial duties of
official duties of this
this office,
office, but
but aa
senior officer
senior officer of the General
of the Staff, General
General Staff, General vonvon Seeckt,
Seeekt, was
was
called in
called ‘in to
to be its first
be its first chief.
chief. For
For several
several years
years the
the members
members
of the
of were primarily
office were
the office from the
recruited from
primarily recruited old General
the Old General
Staff.
Staff.
Under the
Under Republic there
the Republic was also
there was considerable enlarge-
also considerable enlarge-
ment
ment ofof the
the Potsdam
Potsdam Reich
Reich Archives
Archives “to
“to simplify
simplify the
the study
study
of
of the
the World
World War
War (1).”
(I) .” The
The Potsdam
Potsdam Archives
Archives staff
staff alsoeon-
also.con-
sisted
sisted largely
largely of of General
General Staff
Staff officers.
officers. It
It later
later developed
developed that
that
these
these officers
officers were
were already
already busily
busily planning
planning campaigns
campaigns for for aa
second
second world
world war.
war.
In
In spite
spite ofof governmental
governmental aid,
aid, the
the reviving
reviving General
General Staff
Staff
still
still needed
needed money.
money. A A private
private business
business organization,
organization, called
called
“The German
“The Military Policy
German Military and Military
Policy and Science Com-
Military Science Com-
pany,” was
pany,” was formed
formed byby General
General von
von Schleicher.
Sehleicher. TheThe concern
concern
was free
was free to to obtain
obtain large
large contributions
contributions from from nationalist-
nationalist-
minded industrial
minded industrial leaders.
leaders. One
One ofof the
the German
German cabinet
cabinet min-
min-
isters, Otto
isters, Otto Gessler,
Gessler, had
had pointed
pointed out:
out: “There
“There is is no
no clause
clause inin
'the Peace
'the Peace Treaty
Treaty which
which forbids
forbids us
us toto reconstitute
reconstitute the General
the General
Staff in
Staff in the
the form
form of
of acorporation
a_corporation with
with limited
limited liability.”
liability.”
After World
After World War
War II,
II, the
the General
General Staff
Staff was
was again
again abolished.
abolished.
It may
It may bebe aa little
little frightening
frightening to
to observe
observe that
that throughout
throughout
Germany today
Germany today the
the army
army veteran
veteran is
is still
still given
given aa place
place of
of
honor and
honor and that
that in
in the
the British
British Zone
Zone the
the Wehrmacht
Wehrmacht organiza-
organiza-
tion is
tion is being
being broken
broken up
up only
only slowly
slowly and
and under
under pressure.
pressure. '

With the
With the building
building of
of secret
secret armies
armies went
went the
the secret
secret produc-
produc-
tion of
tion of armaments.
armaments. AtAt the
the Nuremberg
Nuremberg trials
trials of
of the
the Nazi
Nazi war
war
criminals, evidence
criminals, evidence was
was produced
produced which
which demonstrated
demonstrated that
that
— w——~—-~ — ~

78
78 I. I' "“ IG
to FARBENx
FARBEN\
German production of
German production of weapons
weapons hadhad begun
begun almost
almost before
before the
the
ink
ink was
was dry
dry onon the
the Versailles
Versailles Treaty.
Treaty. The The Krupp
Krupp Steel
Steel Works
Works
were
were supposedly
supposedly restricted
restricted toto production
production of of such
such harmless
harmless
items
items asas typewriters
typewriters and and plows.
plows. AsAs early
early asas 1920,
1920, the
the German
German
government
government gave gave to to Krupp
Krupp aa loan
loan amounting
amounting to to forty-eight
forty-eight
million
million dollars
dollars which
which waswas used
used for
for “maintenance
“maintenance of of armament
armament
technique
technique in in the!
the Reich’s
Reich’s service.”
service.” The The forty-eight
forty-eight million
million
dpllars
dollars was
was transmitted
transmitted withwith great
great care
care andand secrecy
secrecy byby way
way
of
of banks
banks in in Berlin
Berlin andand Amsterdam.
Amsterdam.
Another
Another of of the
the Nuremberg
Nuremberg defendants,
defendants, Grand Grand Admiral
Admiral
Eric
Eric Raeder,
Raeder, admitted
admitted thatthat Germany
Germany had had started
started to
to build
build
submarines‘shortly
submarinesshortly after after World
World WarWar I. I. By
~By the
the terms
terms ofof the
the
Anglo-German
Anglo-German Naval Naval Treaty
Treaty ofof 1935,
1935, Germany
Germany was was again
again
allowed
allowed to to produce
produce U-boats.
U-boats. Significantly
Significantly the the first
first U-boat
U-boat was
was
publicly
publicly commissioned
commissioned just just eleven
eleven days
days after
after the
the signing
signing ofof
the
the treaty.
treaty. ItIt had
had evidently
evidently been
been built
built with
with aa burst
burst of
of speed
speed
which
which would
would put put to
to shame
shame allall other
other shipyards
shipyards in in the
the world.
world.
Actually,
Actually, as as Raeder
Raeder testified,
testified, submarines
submarines were were being
being built
built
for
for the
the German
German Navy Navy at at least
least as
as far
far back
back as as 1924,
1924, through
through
aa shadow
shadow firmIn
firm in Holland.
Holland. ’i ‘
In
In the
the early
early years
years after
after World
World War
War II much
much ofof the
the German
German
military
military reconstruction
reconstruction was was carried
carried onon through
through agents
agents in
in
foreign
foreign countries.
countries. InIn the
the field
field of
of aviation,
aviation, Dornier
Dornier set
set up
up aa
firm
firm in in Switzerland.
Switzerland. Heinkel
Heinkel set
set up
up aa shadow
shadow concern
concern inin
Sweden.
Sweden. In In spite
spite of
of the
the already
already great
great fear
fear and
and hatred
hatred of
of
Sovietrflussia,
Soviet-Russia, the the Junkers
Junkers Company
Company established
established aa Russian
Russian
agency,
agency, although
although this
this step
step was
was bitterly
bitterly criticized
criticized in
in the
the Reich-
Reich-
stag
stag 0non the
the grounds
grounds that
that no
no planes
planes were
were 'coming
coming back
back toto Ger-
Ger-
many
many and and thethe Russians
Russians were
were merely
merely profiting
profiting from
from German
German
designs.
designs. InIn addition
addition to
to the
the submarines
submarines which
which Admiral
Admiral Raeder
Raeder
admitted were built for Germany in Holland, at least one
submarine
submarine was
was built
built in
in Spain.
Spain.
But war production went on even within Germany itself.
In 1943
In 1943 Dr. Karl Waninger made a speech
speechin
1n Germany about
the work
the Work his
his firm,
firm, Rheinmetall- -Borsig, had done for rearma-
Rheinmetall-Borsig,

I -r*‘i""-‘Q;, .
 ARMS BY
ARMS BY NIGHT
NIGHT _. ,, 79
79
ment. described how
Waninger described
ment. Waninger Rheinmetall-Borsig opened
how Rheinmetall-Borsig opened
4.

oHice in
an office
an “disguised as
Berlin, “disguised
in Berlin, office” but
transfer office”
as aa transfer actually
but actually
_..

used to
used to direct production of
the production
direct the The office
artillery. The
of artillery. de-
was de-
office was
.

nounced to t0 the Inter-Allied' Military

the Inter-Allied‘ Commission
Control Commission
Military Control
-—-—-——».-‘_-..

nounced
but never discovered. In In 1922 moved to
it moved
1922 it to Duesseldorf where,
Duesseldorf where,
-— -——c-_
Waninger said,
. Waninger it continued‘‘
said, it continued “under eyes of
very eyes
the very
under the the
of the
Frenchboccupation
French authorities. ” An
occupation authorities.” An artillery
artillery range
range was
was estab-
estab-
iF.
lishedin
lished in aa deserted part of
deserted part of the
the Lueneburger
Lueneburger moor moor and
and finally:
finally:
“. . ..aa new
“. small gun
and small
new and set up
was set
factory was
gun factory up and started work
and started work
iri 1925,,
in 1925,, despite all sorts
despite all of difficulties.
sorts of The first
difficulties. The artillery
first artillery
order actually
order actually carried
carried outout by
by Rheinmetall
Rheinmetall after
after 1918
1918 was
was
destined for the
destined for Koenigsberg, Karlsruhe,
cruisers Koenigsberg,
the cruisers Koeln,
Karlsruhe, Koeln,
Leipzig and
Leipzig Nuernberg. We
and Nuernberg. We fulfilled task to
this task
fulfilled this to the complete
the complete
satisfaction of
satisfaction German Navy,
the German
of the Navy, at same time
the same
at the creating
time creating
precedent in
aa precedent in the building of
the building turrets in
triple turrets
of triple Germany. .. .”
in Germany. .”
In spite
In spite ofof all all difficulties,
difficulties, the the ingenious
ingenious manufacturers
manufacturers
found ways
found ways of of producing
producing all all the
the weapons
weapons which which thethe General
General
needed for
Staff needed
Staff maneuvers in
for maneuvers in developing
developing the Blitzkrieg
the Blitzkrieg
theory of
theory warfare. As
of warfare. As has said, airplanes
been said,
has been airplanes were pro-
were pro-
duced in
duced foreign countries.
in foreign trained in
were trained
Pilots were
countries. Pilots gliders.
in gliders.
Guns of
Guns calibers were
all calibers
of all secretly in
made secretly
were made Germany. Tanks
in Germany. Tanks
forbidden, but
were forbidden,
were but aa few armored cars
few armored cars were allowed and
were allowed and
these were
these were converted
converted into into experimental
experimental tanks.tanks.
Finally, the
' Finally, the whole
whole of of German
German war war production
production was was co-co-
ordinated; long
ordinated, long before
before Hitler,
Hitler, byby the
the Ministry
Ministry of of Defense.
Defense.
The Ministry.
The Ministry‘ co-operated
co-operated with with thethe Association
Association of of German
German
Industry in
Industry in drawing
drawing up up an
an industrial
industrial mobilization
mobilization plan plan which
which
gave each
gave each producer
producer an an idea
idea ofof how
how much
much he he would
would be be ordered
ordered
to make
to make after
after industrial
industrial mobilization
mobilization day. day. Also
Also before
before Hitler,
Hitler,
the government
the government gave gave direct
direct subsidies
subsidies to to encourage
encourage produc-
produc-
tion in
tion in industries
industries essential
essential toto war:
war: steel,
steel, light
light metals,
metals, aviation
aviation
engines.
engines. ‘
. OfOf course
course rearmament-could
rearmament-could not not be
be kept
kept completely
completely secret.
secret.
Rumors kept
Rumors kept coming
coming out out of
of Germany.
Germany. In In 1925
1925 aa man
man namednamed
Walter Bullerj
Walter Bullerj ahn ahn was
was tried
tried in
in secret
secret andand sentenced
sentenced to to twenty-
twenty.-
_,,___

so
80 M IG FARBEN
IG FARBEN
five years
five years in
in jail.
jail. It
It developed
developed later
later that
that he
he had
had been
been accused
accused
of revealing
of revealing the
the progress
progress ofof rearmament.
rearmamcnt. In In Hamburg,
Hamburg, in in
1928, there
1928, was aa mysterious
there was explosion which
mysterious explosion killed eleven
which killed eleven
people; the
people; the belief
belief gained
gained strength
strength that
that the
the explosion
explosion had
had oc-oc-
poison gas
curred in a poison works. And
gas works. Carl von
And Carl Ossietzky, the
von Ossietzky, the
pacifist
pacifist editor,
editor, was
was convicted
convicted of
of treason
treason for
for having
having revealed
revealed
war
war secrets
secrets in
in his
his journal.
journal. The
The war
war secrets
secrets related
related to
to secret
secret
rearming.
rearming. ‘A
Eventually,
Eventually, much
much more
more than
than rumors
rumors came
came out
out of.
of. Germany.
Germany.
The
The secret
secret of
of German
German rearmament
rearmament became
became the
the kind
kind of
of open
open
secret
secret which
which isis preserved
preserved only
only by
by common
common agreement.
agreement. ByBy
1929,
1929, thirteen
thirteen countries,
countries, including
including France,
France, China,
China, Japan,
Japan,
Spain,
Spain, and
and Belgium,
Belgium, reported
reported to
to the
the League
League of
of Nations that
Nationsthat
Germany
Germany waswas their
their chief
chief foreign
foreign source
source of
of arms
arms and
and mu—
mu-
nitions.
nitions. Cleverness
Cleverness and
and tremendous
tremendous determination
determination went
went into
into
German
German rearmament,
rearmament, butbut the
the job
job could
could not
not have
have been
been accom-
accom-
plished
plished by
by Germans
Germans alone.
alone. There
There had
had to
to be
be at
at least
least tolerance,
tolerance,
and
and sometimes
sometimes support,
support, in in the
the world
world outside.
outside. 'i
From
From evidence
evidence produced
produced in in the
the hearings
hearings of
of the
the U.
U. S.
S. Senate
Senate
Committee
Committee (under
(under Senator
Senator Nye) Nye) which
which investigated
investigated the the
munitions
munitions industry,
industry, it
it is
is clear
clear that
that ranking
ranking American
American officials
officials
were
were only
only able
able to
to ignore
ignore German
German rearmament
rearmament byby turning
turning their
their
heads.
heads. The The committee
committee reported
reported that
that in
in aa meeting
meeting which
which in-
in-
cluded
cluded the the then
then Secretary
Secretary ofof Commerce
Commerce Herbert
Herbert Hoover
Hoover and
and
U.
U. S.S. delegates
delegates to to the
the Geneva
Geneva Arms
Arms Trade
Trade Conference
Conference of of
1925—
1925—-
'“. . .. Mr.
Mr. Dulles
Dulles [of
[of the
the State
State Department]
Department] stated
stated that
that not-
not-
withstanding
withstanding the
the fact
fact that
that it
it was
was known
known that
that Germany
Germany was
was
exporting arms and munitions, it was not possible from a
diplomatic standpoint to mention Germany or any of the
Central
Central Powers
Powers inin this
this connection
connection since
since they
they were
were supposed
supposed .
to
to abide
abide by
by the
the treaties
treaties which
which put
put an
an end
end to
to the
the World
World War.”
War.”
In
In the
the same
same hearings
hearings there
there is
is aa quotation
quotation from
from aa report
report
by
by Colonel
Colonel Simons,
Simons, of
of the
the Du
Du Pont
Pont Company,
Company, ofof conversations
conversations
which he had at the State Department in 1925:

;;_’- t
5 '1
5 /"
ARMS BY NIGHT 31
81
“It was
“It was called
called to Mr. Dulles’
to Mr. Dulles’ attention
attention that
that in the event
in the event
of
of American
American firms
firms refusing
refusing to
to build
build aa mill
mill [for
[for gun
gun powder]
powder]
that
that the
the Turks
Turks would
would probably
probably secure
secure German
German aidaid in this
in this
matter.
matter. Mr.
Mr. Dulles
Dulles said he was
said he was well
well aware
aware of
of this
this and
and that
that
he
he was
was also
also aware
aware that powder and
that powder and other
other munitions
munitions were
were
continually
continually shipped
shipped out
out of
of Germany
Germany with the connivance
with the connivance 0f
of
the
the Allies,
~Allies, since
since the
the resulting
resulting sales
sales of
of munitions
munitions swelled
swelled the
the
reparations
reparations fund.”
fund.”
'i Other
Other material
material from the files
from the of the
files of the Du
Du Pont
Pont Company
Company
showed
showed that
that as
as early
early as
as 1924 the Germans
1924 the Germans were
were already
already the
the
chief
chief competitors of the
competitors of the Du
Du Pont smokeless power
Pont smokeless power division in
division in
Europe, running ahead
Europe, running ahead of
of the
the Italian
Italian and
and French
French producers.
producers.
Evidently the
Evidently the Germans
Germans had had been
been welcomed
welcomed back back to to the
the ring
ring
of arms
of arms producers.
producers. TheThe contagiousness
contagiousness of of arms production
arms production
is well
is well known.
known. If If German
German rearmament
rearmament caused caused jitters
jitters in
in some
some
of the
of the other
other European
European nations,
nations, this
this was
was of of little
little concern
concern to to
the arms
the arms producers
producers of of those
those nations:
nations: it it was
was good
good business.
business.
The U.
The U. S.
S. Senate
Senate Committee’s
Committee’s report
report on on the
the munitions
munitions in-in-
dustry cited
dustry cited Colonel
Colonel Taylor
Taylor of of Du
Du Pont
Pont as as. saying
saying thatthat “.
“. .. ..
aa German-English
German-English groupgroup were
were attempting
attempting to to control
control thethe mil-
mil-
itary supplies
itary supplies inin Europe with aa view
Europe with view to to large
large profits
profits through
through
the future
the future rearmament
rearmament of of the
the European
European nations nations which
which waswas
destined to
destined to take
take place.”
place.”
When German
When German war war production
production finally
finally hit hit its
its full
full slride
stride
under Hitler,
under Hitler, thethe effect
effect onon arms
arms makers
makers everywhere
everywhere was was
tonic. The
tonic. The Skoda
Skoda works
works inin Czechoslovakia,
Czechoslovakia, for for example,-
example, waswas
flooded with
flooded with orders
orders and
and had
had toto hire
hire thousands
thousands of of additional
additional
workers. The
workers. The vice-president
vice-president of of the
the Colt
Colt Company
Company in in the
the United
United
States commented
States commented concerning—
concerning— “. “. .. .. what
what is is happening
happening at at
the Skoda
the Skoda works.
works. Man,
Man, itit makes
makes my my mouth
mouth water,
water, and and here
here
we are,
we are, over
over here,
here, prepared
prepared to to produce
produce material
material par par excel-
excel-
lence and
lence and getting
getting nothing.”
nothing.”
But even
But even the
the international
international co-operation
co-operation among
among arms
arms pro-
pro-
ducers was
ducers was of
of little
little help
help to
to Germany
Germany compared
compared toto the
the general
general
aid from
aid from foreign
foreign investors.
investors. Once
Once the
the inflation
inflation had
had been
been
_,_._---v1---

82
82 [G FARBEN
IG FARBEN
stopped and
stopped and the
the mark stabilized foreign
mark stabilized foreign loans
loans literally
literally poured
poured
into
into Germany.
Germany. Between
Between 1924
1924 and and 1930
1930 Germany’s foreign
Germany’s_foreign
debt
debt increased
increased by by more
more than
than thirty
thirty billion
billion marks.
marks. TheThe loans
loans
were
were forfor the
the most
most part
part private
private transactions.
transactions. In In total
total they
they atat
least
least offset
offset what
what Germany
Germany was was paying
paying outout in
in reparations.
reparations.
With
With the
the aid
aid of
of foreign
foreign capital
capital German
German industry
industry waswas ex-
ex- . '
tensively
tensively overhauled
overhauled and
and modernized.
modernized. The The whole
whole economy
economy
was put
was put into
into good
good shape
shape for
for all-out
all-out production
production for for war
war under
under
the
the Nazis.
Nazis. Some
Some ofof the
the loans
loans weflt
went directly
directly to to firms
firms which
which
figured
figured mostmost immediately
immediately in in rearmament.
rearmament.
Krupp
Krupp waswas the
the very
very symbol
symbol of of German
German armsarms makers.
makers. TheThe
Krupp
Krupp family
family fortune
fortune was
was saved
saved in in December,
December, 1924, 1924, byby aa
loan
loan of ten million
often million dollars
dollars from
from Hallgarten
Hallgarten and and Company
Company
and
and Goldman
Goldman Sachs
Sachs and
and Company
Company of of New
New York.
York. With
With the
the
backing
backing of of good
good American
American dollars
dollars the
the Krupp
Krupp works
works were
were ra-
ra-
tionalized
tionalized andand made
made ready
ready to_
to_ produce
produce for for another
another war.
war.
Vereinigte
Vereinigte Stahlwerke
Stahlwerke was was perhaps
perhaps lessless important
important than than
Krupp
Krupp as as aa symbol,
symbol, but
but more
more important
important asas aa producer
producer ofof
' steel.
steel. Over
Over one
one hundred
hundred million
million dollars
dollars in
in long
long term
term loans.
loans
went
went toto Vereinigte
Vereinigte Stahlwerke.
Stahlwerke. According
According toto 11-1945
a -1945 report
report
by
by the
the U.
U. S.
S. Foreign
Foreign Economic
Economic Administration,
Administration, “It “It is
is doubt-
doubt-
ful
ful that
that the
the trust
trust could
could have
have carried
carried out
out its program of
its program of
expansion
expansion andand modernization
modernization without
without the
the support
support of the
of the
'American investor.’
American investor.” '
The
The Germany
Germany which
which was
was turned
turned ever
over to
to Adolph
Adolph Hitler
Hitler had
had
already come a long Wayway on the road from Versailles. And
it
it had
had been
been given
given aa sturdy
sturdy shove
shove ahead
ahead by
by its
its enemies
enemies of
of the
the
past
past and
and future.
future. -

tanks.‘As far
IG Farben did not produce guns, plans, or tanks.*As
as
as is
is known, the IG
known, the IG did
did not
not raise
raise private
private armies
armies in
in the
the days
days
of the Black Militia. Even so, IG was probably the greatest
single
single factor
factor in
in Germany’s
Germany’s preparation
preparation for
for war.‘
war.‘
\
It
It was
was with
with genuine
genuine admiration
admiration that Gustav Stresemann,
that Gustav Stresemann,
Chancellor of the
Chancellor of the Weimar
Weimar Republic,
Republic, said
said in
in 1927:
1927:
 I

' i

ARMS BY
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83
“What have II as
“What have as aa trump
trump in
in my hands aside
my hands aside from
from IG
IG and
and
the coal
the coal people?”
people?” .
Let other
Let other companies
companies make artillery and
make artillery and bombers.
bombers. These
These
were the
were the straightforward,
straightforward, relatively
relatively simple
simple operations.
operations. IG
IG
Farben tackled
Farben tackled the
the really
really difficult
difficult problems
problems of
of rearmament.
rearmament.
And
And solved
solved them.
them. And
And became
became ever
ever more
more rich
rich and
and powerful
powerful
in
in solving
solving them.
them. .
10
IG did,
did, of
of course,
course, have
have direct
direct connections
connections with
with the
the obvious
obvious
kinds of
kinds production. In
war production.
of war IG Farben
1926 IG
In 1926 series of
made aa series
Farben made of
agreements by
agreements it obtained
which it
by which over the
control over
obtained control of the
bulk of
the bulk the
Germanexplosives industry. Two
Germanexplosives industry. munitions-making con-
big munitions-making
Two big eon-
cerns, the Dynamit-Nobel
cerns, the Corporation and
Dynamit-Nobel Corporation the Rheinische-
and the Rheinisehe-
Westfaelische Sprengstoff Corporation;
Westfaelische Sprengstoff became IG
Corporation,‘ became IG subsidi-
subsidi-
aries. Through
aries. qhe Dynamit
Through ahe known as
Corporation, known
Dynamit Corporation, the DAG,
as the DAG,
IG became
IG ved in
invo ved
became invo international politics
the international
in the of munitions
politics of munitions
making. By
making. 1925 the
By 1925 DAG had
the DAG already fought
had already small price-
fought aa small price-
with Du
war with
war Pont and
Du Font Hercules Powder
the Hercules
and the companies of
Powder companies of the
the
United States,
' United slice of
for aa slice
States, for powder, business
the powder.
of the of Mexico.
business of Mexico.
‘At that time
At that DAG was
the DAG
time the kept from
was kept the back
from the of the
door of
back door the
United States
United only by
States only by the of American
threat of
the threat competition in
American competition in
'other
other foreign
foreign markets.
markets. ‘
IG had
Furthermore, IG firm ties
had firm all of
with all
ties with German heavy
of German heavy
industry, ties
industry, became more
which became
ties which with the
binding with
more binding years. IG
the years. IG
owned its
owned its own mines and
coal mines
own coal became one
and became one of big powers
the big
of the powers
of the
‘ _ of Even the
Ruhr. Even
the Ruhr. wholly owned
organization, wholly
Krupp organization,
the Krupp owned byby
family,,included on
Krupp familyLincluded
the Krupp
the on its board of
its board of directOrs Hermann ,
directors Hermann
Schmitz who
Schmitz who was the top
was the man in
top man IG at
in IG time of
the time
at the of World War
World War
II. Altogether,
II. chairman of
was chairman
Schmitz was
Altogether, Schmitz board of
the board
of the of direc-
direc-
tors of at
tors of firms. He
seven firms.
least Seven
at least member of
was aa member
He was the board
of the board
of at
of ten others,
least ten
at least including the
others, including the major steel combine,
major steel combine,
Stahlwerke. IG
Vereinigte Stahlwerke.
Vereinigte IG acquired per cent
twelve per
acquired twelve of the
cent of the
' stock
stock of Vereinigte Stahlwerke,
of Vereinigte becoming the
thereby becoming
Stahlwerke, thereby the largest
largest
stockholder
stockholder in in the
the steel
steel trust
trust after
after the
the German
German government.
government.
But
But 10
IG Farben’s
Farben’s most
most important
important achieVement
achievement was was in
in finding
finding
substitutes
subsfitutes forfor critical
critical raw
raw materials.
materials. TheThe conquest
conquest of of the
the
 84
84 LA IG FARBEN
IG FARBEN
nitrate shortage
nitrate shortage was
was IG’s
IG’s great
great contribution
contribution to
to the
the prolonging
prolonging
of
of World
World War
War I.I. The
The Haber
Haber process for snatching
process for snatching nitrogen,
nitrogen,
basic ingredient
basic ingredient ofof explosives,
explosives, from
from the
the air,
air, was
was ready
ready for
for
produotion in
production in 1913.
1913. After the war,
After the war, IG
IG broadened
broadened its
its grip
grip
on
on the
the synthetic
synthetic nitrate
nitrate field,
field, both
both for
for military
military purposes
purposes and
and
for
for the
the production
production of of artificial
artificial fertilizers.
fertilizers. By
By 1928,
1928, Germany-
Germany
dominated
dominated all all nitrate
nitrate production,
production, whether
whether synthetic
synthetic or or natural.
natural.
In
In that
that year
year 1.71.7 million
million tonstons of of nitrates
nitrates were
were produced
produced
throughout
throughout the the world:
world: of of the
the total,
total, 920,000
920,000 tons
tons were
were syn-
syn-
thetic
thetic and
and 677,000
677,000 tons tons ofof the
the synthetic
synthetic were
were made
made in in Ger-
Ger-
many.
many. ThusThus Germany
Germany accounted
accounted for for threequarters
three-quarters of of the
the
world’s
world’s synthetic
synthetic nitrate
nitrate production,
production, nearly
nearly half
half of of the
the pro-
pro-
duction
duction of of all
all kinds
kinds of of nitrates.
nitrates. TheThe old
old dependence
dependence on on the
the
natural deposits of Chile was gone forever. _
German
German nitrate
nitrate production
production meantmeant IG IG preduetion.
production. In In 1919
1919
all
all nitrate
nitrate producers
producers 1n in Germany
Germany had had been united into
beeniunited into aa single
single
syndicate
syndicate under
under government
government sponsorship.
sponsorship. IG IG was
was the the biggest
biggest
factor
factor inin the
the syndicate,
syndicate, but but ideas'of
ideas'of government
government ownership
ownership
and
and control
control were
were still
still very
very strong
strong in in the
the first
first years
years after
after World
World
War
War I. I. The
The German
German government
government retained
retained the
the right
right to to name
name
and
and recall
recall the
the executives
executives of of the
the syndicate.
syndicate. ByBy 1924,
1924, the the gov-
gov-
ernment
ernment quietly
quietly backed
backed out
out of
of the
the picture
picture and
and left
left the
the field
field of
of
nitrates
nitrates in
in the
the hands
hands ofof 1G:
IG: aa change
change waswas made
made inin voting
voting pro-
J
pro-
cedures
cedures of
of the
the governing
governing council
council of
of the
the syndicate
syndicate so so that
that IG,
IG,
which
which had
had had
had only
only five
five out
out of
of seventeen
seventeen votes,
votes, now
now acquired
acquired
twenty
twenty out of thirty-three
out of thirty-three votes
votes with a clear majority.
Professor Fritz
Professor iFritz Haber
Haber hadhad been
been the
the great
great scientist
scientist for
for
the IG
the 1G who
who showed
showed how
how toto take
take frce
free nitrogen
nitrogen and
and free
free hydro-
hydro-
- gen and unite them to make ammonia, which, in turn, could be
made into
made into explosives
explosives or
or fertilizer.
fertilizer. Nitrogen,
Nitrogen, aa quite
quite inert
inert
element itself,
element itself, was
was only
only useful
useful inin combinations.
combinations. And,
And, until
until
Haber’s discovery,
I'Iaber’s discovery, the
the combinations
combinations of of nitrogen
nitrogen had
had to
to be
be
taken as they were found in nature. Now Haber was loaded
with honors
with honors and
and took
took on
on the
the role
role of
of an
an elder
elder statesman.
statesman. This
This
significance to his visit to Japan in 1924.
gave added significance
 ARMS BY
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85
In the
In the course
course of
of his
his stay Haber made
stay Haber made an
an address
address to
to aa group
group
of Japanese
of Japanese industrialists.
industrialists. The
The speech
speech was
was some
some years
years ahead
ahead
of itself:
of itself: in
in effect
effect it
it was
was an
an invitation
invitation to
to the
the formation
formation of
of what
what
became the
became the fascist
fascist Axis.
Axis. Haber
Haber said,
said, in
in part:
part:
“. .. .. How
“. How did
did you
you solve
solve your
your problems
problems in in the
the military
military
sphere? By
sphere? By building
building aa wall
wall around
around yourselves
yourselves (and
(and not
not learn-
learn-
ing from
ing from others)?
others)? .. .. .. You
You did
did the
the opposite.
opposite. You You used
used all
all
your
your strength
strength to
to work
work with
with those
those who
who were
were aheadahead of
of you.
you. Do
Do
not
not your
your military
military successes
successes make
make you
you thirst
thirst to to repeat
repeat the
the same
same
performances
performances in in the
the technical
technical fields?
fields? .. .. .. Herein
Herein lies
lies the
the co-
co-
operation
operation between
between ‘us,
‘us, which
which II have
have already
already characterized
characterized as
as
the
the only
only practicablelpath.
practicable-path. It
It means
means that
that we
we will
will become
become part-
part-
ners
ners in
in your
your projects,
projects, and
and lend
lend you
you men
men and
and experience,
experience, till
till
they
they have
have been
been developed
developed from
from among
among your
your own
own people.”
people.”
If
If there
there was
was any
any doubt
doubt about
about the
the meaning
meaning ofof this
this speech,
speech,
it
it was
was dispelled
dispelled by
by another
another which
which Haber
Haber delivered
delivered after
after his
his
return
return toto Germany.
Germany. InIn this
this he
he outlined
outlined the
the inevitable
inevitable conflict
conflict
to
to come
come between
between Japan
Japan and
and the
the United
United States.
States.
The
The problem
‘problem ofof nitrate
nitrate supplies
supplies was
was well
well in
in hand.
hand. Next
Next
came
came the
the problem
problem of
of oil.
oil. Synthetic
Synthetic oil
oil was
was the
the special
special dream
dream
of
of Dr.
Dr. Carl
Carl Bosch,
Bosch, who
who with
with Duisberg
Duisberg had
had founded
founded the
the IG.
IG.
Bosch
Bosch was
was much
much more
more than
than aa manipulator
manipulator ofof corporations.
corporations. He
He
was
was also
also a
a technical
technical man
man ofof the
the highest
highest rank.
rank. In
In 1931
1931 hehe
shared
shared the
the Nobel
Nobel prize
prize in
in chemistry
chemistry with
with his
his colleague,
colleague, Dr.
Dr. ‘
Bergius.
Bergius. Herein
Herein lay
lay one
one of
of the
the greatest
greatest strengths
strengths of
of 10
IG Farben
Farben.
To
To an
an extent
extent rarely
rarely if
if ever
ever seen
seen inin the
the business
business concerns
concerns of
of
other
other countries,
countries, the
the leading
leading men
men of of IO
IG combined
combined both
both tech-
tech-
nical
nical and
and administrative
administrative abilities.
abilities. This
This assured
assured complete
complete un-
un-
derstanding
derstanding of
of technical
technical problems
problems at at all
all levels
levels of
of the
the organi-
organi-
zation
zation and
and aa powerful,
powerful, continuous
continuous drive
drive toward
toward expansion
expansion into
into
new
new fields.
fields. -
Dyestufts
Dyestuffs had
had been
been the
the foundation
foundation ofof the
the IG.
IG. DyestuiTs
Dyestuffs
' remained
remained perhaps
perhaps the
the steadiest
steadiest source
source of
of profits.
profits. Yet
Yet the
the direc-
direc-
tors
tors of
of IO
IG did
did not
not hesitate
hesitate to
to pour
pour capital
capital and
and research
research talent
talent
into
into the
the search
search for
for synthetic
synthetic oil
oil and
and rubber—meven
rubber—-—even though
though
-

86
as 'I /t IG
to FARBEN
FARBEN
these could not
these could not promise
promise quick
quick returns
returns but
but rather
rather fitted
fitted into
into
the big
the big picture
picture of
of German
German rearmament
rearmament and
and eventual
eventual conquest.
conquest.
Using their
Using their war-gained
war-gained experience
experience with
with high
high pressures
pressures in
in
handling nitrogen
handling nitrogen fixation,
fixation, Bosch
Bosch and
and the
the IG
IG chemists
chemists solved
solved
the problem
the problem of
of making
making synthetic
synthetic oils.
oils. Fora
For. a starting
starting point
point they
they
used cheap
used cheap and
and abundant
abundant German
German coal.
coal. They
They developed
developed aa
process called
process ealled hydrogenation
hydrogenation whereby
whereby aa drayhorse
drayhorse was
was con-
con-
verted into
verted into aa greyhound:
greyhound: coal,
coal, fit
fit only
only to
to be
be burned
burned in
in fur-
fur-
naces, Was
naces, was converted
converted into
into lubricating
lubricating oils
oils and
and gasoline
gasoline which
which
could be
could be used
used in
in automobiles,
automobiles, or or tanks,
tanks, or
or airplanes.
airplanes.
The hydrogenation
The hydrogenation of of coal
coal into
into gasoline
gasoline caused
caused aa revolu-
revolu-
tion, both
tion, both technologically
technologically and
and in
in the
the political
political balance
balance of
of power
power
which had
which had been
been based
based on
on control
control ofof oil
oil resources.
resources. As
As will
will be
be
seen in
seen in aa later
later chapter,
chapter, it
it was
was the
the entering
entering wedge
Wedge byby which
which IGIG
forced its
forced its way
way into
into an
an alliance
alliance with
with the
the huge
huge Standard
Standard Oil
Oil
Company of
Company of New
New Jersey
Jersey and
and thereby
thereby exerted
exerted aa strange.
strange. influ-
influ-
- ence
ence over
over the
the American
American war
war effort.
effort. Let
Let it
it suffice
suffice to
to say
say here
here
that the
that the hydrogenation
hydrogenation of
of coal
coal was
was the
the answer
anéwer to
to one
one of
of the
the
main questions
main questions facing
facing the
the German
German General
General Staff.
Staff. Now
Now they
they
could plan an oil-devouring war of rapid movement with
tanks and aircraft, without having an assured supply of nat-
ural petroleum.
ural petroleum.
The German
The German government
government showed
showed aa keen
keen appreciation
appreciation of
of
IG’S work
IG’s work inin synthetic
synthetic oils.
oils. The
The budding
budding industry
industry was
was pro-
pro-
tected behind
tected behind tariffs.
tariffs. By
By 1931
1931 IGIG had
had reached
reached aa potential
potential
capacity of
capacity of 300,000
300,000 tonstons of
of synthetic
synthetic oil
oil per
per year
year in
in its
its main
main
plant at
plant at Leuna.
Leuna. In In the
the same
same year
year the
the Bruening
Bruening administration
administration
granted IG
granted IG aa further
further increase
increase inin the
the tariff
tariff of
of gasoline,
gasoline, soso that
that
in_effect the
in_effect the government
government subsidy
subsidy for
for 300,000
300,000 tons
tons amounted
amounted
to about
to about twenty-four
twenty-four million
million marks.
marks.
Meanwhile the
Meanwhile the work
work in in synthetic
synthetic rubber
rubber was
was also
also being
being
pushed. In November, 1927, Arthur von Weinberg, an IG
Farben executive
Farben executive in in Frankfurt,
Frankfurt, announced
announced that:
that: “Synthetic
“Synthetic
rubber experiments conducted on a small scale have definitely
flemonstrated the reliability of the scientific formula ''.. . .
demonstrated

.¢ ‘.1
 ARMS BY
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NIGHT 87
87

[but there
[but there were
were production
production problems] and it
problems] and it may,
may, therefore,
therefore,
be aa year
be year or
or two
two before
before the
the artificial
artificial product
product is
is put
put on
on the
the
' market.”
market.”
When Von Weinberg
When Von Weinberg spoke,
spoke, the
the 'lG
'IG had
had already
already been
been work-
work-
ing
ing on synthetic rubber
on synthetic rubber for
for more 'than twenty
more ‘than twenty years.
years. Large
Large
sums had been
sums had been spent
spent on
on the
the rubber
rubber research
research and
and much
much more
more
was still
was still to
to be
be spent.
spent. In
In 1927
1927 IG
IG had
had spent
spent only
only 100,000
100,000
marks on
marks on work
work with
with rubber.
rubber. In
In 1928
1928 the
the amount
amount increased
increased
diastically to 2,700,000 marks, and in 1929 it went up to
drastically
3,300,000 marks.
3,300,000 marks. After
After Hitler
Hitler came
came into
into power
power and
and rubber
rubber
became aa truly
became truly critical
critical war
war item
item the
the amount
amount spent
spent for
for re-
re-
search jumped
search jumped to to around
around eight
eight million
million marks
marks per
per year.
year.
The technical
The technical problems
problems in making synthetic
in making synthetic rubber
rubber were
were
unusually
unusually difficult.
difficult. IG’s
IG’s work
work in
in the
the field
field began
began inin 1906
1906 when
when
' Carl
Carl Duisberg
Duisherg ordered
ordered Dr.Dr. F.
F. Hofmann,
Hofmann, aa chemist
chemist at at the
the
Leverkusen works,
Leverkusen works, to to proceed
proceed with
with rubber
rubber synthesis.
synthesis. For
For years
years
the results
the results were
were meager.
meager. Yet
Yet the
the prize
prize was
was great.
great. InIn purely
purely
business terms,
business terms, thethe high
high prices
prices ‘exacted
exacted by
by the
the monopolists
monopolists
who controlled
who controlled the
the natural
natural rubber
rubber of
of the
the Far
Far East
East offered
offered £1a
Wide opening
wide opening for
for any
any acceptable
acceptable substitute
substitute which
which wouldwould be be
reasonably'cheap. Rubber
reasonably'cheap. Rubber qualities
qualities of of stretch
stretch andand bounce
bounce ‘
made it basic to motor transportation.
made
In
In World
World WarWar II Germany
Germany suffered
suffered badly
badly for for lack
lack of of rub-
rub-
ber.
ber. After-the
After-the war,
war, when
when Allied
Allied occupation
occupation troopstroops rolled
rolled in in
with
with cars
cars and
and trucks
trucks onon rubber
rubber tires,
tires, German
German vehiclesvehicles were'
were
- slowly
slole creaking
creaking along
along on
on steel
steel rims. In the plans for a second
world
world war,
war, the
the need
need for
for rubber
rubber bulked
bulked even even larger
larger thanthan in1n
World
World WarWar I.I. ‘ ' ' ‘‘
The
The first
first step
step onon the
the trail
trail to
"to artificial
artificial rubber
rubber was was taken
taken by by
the English chemist Sir William Tilden. Tilden discovered
that
that the
the basic
basic ingredients
ingredients of of rubber
rubber were
were carbon
carbon and and hydro-
hydro-
gen,
gen, joined
joined in
in the
the ratio
ratio of
of five
five atoms
atoms of of carbon
carbon to to eight
eight atoms
atoms
of
of hydrogen.
hydrogen. He He also
also discovered
discovered aa way way to to make
make aa synthetic
synthetic .
substance
substance in which there were the same five units of carbon
to eight
to eight units
units ofof hydrogen;
hydrogen; he he called
called the
the substance
substance isoprenB-
isoprene.
1

»
s___._'4---.

88
88 I iF IG FARBEN
IG FARBEN

although the
Unfortunately, although
Unfortunately, ingredients were
the ingredients the same,
were the the
same, the
mixture was
mixture was very There was
different. There
very different. was nono apparent resem—
apparent resem-
isoprene and
between isoprene
blance between
blance and rubber, because in
rubber, because in rubber the
rubber the
arranged in
were arranged
atoms were
atoms very complex
in aa very The big
manner. The
complex manner. trick
big trick
to get
was to
was atoms of
the atoms
get the isoprene to
of isoprene to arrange themselves in
arrange themselves in aa
complicated way
more complicated
more way by process called
by aa process polymerization.
called polymerization.
turned out
It turned
It out to be aa difficult
to be trick.
ditficult trick.
The IG
The IG scientists followed the
scientists followed lead of
the lead the Russian
of the Kenda-
Russian Kenda-
used as
and used
kofl and
koff starting point
as aa starting isoprene but
not isoprene
point not something
but something
it called
like it
like butadiene. They
called butadiene. They reasoned the real
that the
reasoned that problem
real problem
to get
was to
was something with
get something with the qualities of
the qualities of rubber, neces-
not neces-
rubber, not
chemical and
the chemical
sarily the
sarily and physical duplicate of
physical duplicate of rubber itself.
rubber itself.
Ultimately this
Ultimately this is what they
is what succeeded in
they succeeded doing.
in doing.
World War
During World
During War I, 1G had
I, IG limited success
only limited
had only with
success with
produced about
They produced
rubber. They
rubber. about 2500 of something
tons of
2500 tons they
something they
methyl rubber
called methyl
called which was
rubber which for accumulator
used for
was used boxes
accumulator boxes
U-boats. Dr.
in U-boats.
in also had
Duisberg also
Dr. Duisberg least one
at least
had at automobile
pet automobile
one pet
made of
tire made
tire which he
rubber which
synthetic rubber
of synthetic took around
he took him
with him
around with
conventions as
chemical conventions
to chemical
to as aa portent things to
of things
portent of come.
to come.
War I,
World War
After World
After IG took
I, IG forward by
step forward
big step
took aa big devel-
by devel-
_method for
oping aa _method
oping making the
for making starting ingredient,
the starting buta-
ingredient, buta-
cheaply out
diene, cheaply
diene, coke and
of coke
out of Then they
limestone. Then
and limestone. found
they found
ways to
ways to mix butadiene with
mix butadiene substances, like
other substances,
with other styrene,
like styrene,
came out
and came
and with the
finally with
out finally huna-N and
famous buna-N
the famous rub-
buna-S rub-
and buna-S
with which
bers with
bers World War
fought World
they fought
which they II. These
War II. the
were the
These were
huna rubbers
same buna
same which American
rubbers which had to
chemists had
American chemists figure
to figure
how to
out how
out when the
produce when
to produce States was
United States
the United short
caught short
was caught
at the
at beginning of
the beginning war.
the war.
of the
Nitrates, oil,
Nitrates, and rubber:
oil, and all three
in all
rubber: in the IG
cases the
three cases suc-
had suc-
IG had
ceeded in
ceeded in making independent. When
Germany independent.
making Germany When armored ve-
armored ve-
rolled on
hicles rolled
hicles buna-S tires
on buna-S tires or powered by
treads, powered
or treads, synthetic
by synthetic
gasoline, the German
gasoline, General Staff
German General knew that
Stall knew rearmament
that rearmament
was in
was in its stages. Now
last stages.
'its last Now the war could
the war whenever
start whenever
could start
Hitler gave
Hitler gave the signal.
the signal.

i£--
 G 6
6
The Quiet
The Quiet War
War

Before Hitler,
Before Hitler, Germany
Germany was
was busily
busily rearming.
rearming. After
After Hitler
Hitler
came to
came to power
power inin 1933,
1933, Germany
Germany went
went to
to war.
war. It
It took
took six
six
tense years
tense years before
before the
the first
first shots
shots were
were fired.
fired. But
But the
the war
war had
had
actually started
actually started long
long before
before that.
that. It
It was
was quiet war: war
quiet war: war by
by
propaganda; war
propaganda; war ofof spies; war for
spies; war political advantage;
for political advantage; and
and
above all,
above all, war
war ofof economic
economic aggression.
aggression.
The key
The key toto the
the whole
whole period
period ofof economic
economic warfare
warfare was
was
given by
given by Carl
Carl Duisberg
Duisberg inin aa statement
statement of of IG
IG foreign
foreign policy
policy
which he
which he made
madeIn March, 1931:
in March, 1931: ,
“For the
“For the ultimate
ultimate solution
solution of
of the
the European
European problem,
prohlem, the
the
queStion of
question of economic
economic relations
relations with
with France
France must
must still
still be
be set-
set-
bloc-from
tled, and a closed economic bloc -from Bordeaux to Odessa,
as the
as the backbone
backbone of
of Europe,
Europe, must
must be
be created.”
created.”
A great
A great deal
deal of
of the.economic
theeconomic warfare
warfare of
of the
the Germans
Germans fol-
fol-
lowed the
lowed the patterns
patterns of
of normal
normal business.
business. That
That is,
is, much
much of
of what
what
the Germans
the Germans diddid could
could be
be termed
termed merely
merely “cartel-building.”
“cartel-building.”
In this
In this respect
respect IG
IG Farben
Farben was
was out
out and
and away the leading
away the leading Ger-
Ger-
man concern
man concern and
and probably
probably the
the leader
leader in
in the
the entire
entire World.
world.
During
During the
the period
period between
between the
the two
two world
world wars,
wars, IG was tire-
IG was tire-
' 89
89
--——--- --~— - -

90
90 '' IG FARBEN
IG FARBEN
lessly
lessly spreading
spreading aa network of cartel
network of cartel relations
relations which
which eventu-
eventu-
ally
ally covered
covered every
every part
part of
of the
the world.
world. In
In almost
almost every
every case
case IG
IG
was
was the
the dominating
dominating element
element in
in the
the cartels
cartels it
it 'entered.
'entered.
Cartels
Cartels proved
proved to
to be
be an
an effective
effective weapon
weapon for for German
German busi-
busi- ‘
nessmen
nessmen operating
operating in in the
the interest
interest of of the
the Fatherland.
Fatherland. Through Through
the
the system
system of of cartels
cartels which
which IG, IG, forfor example,
example, was was ableable to to
build
build up,up, aa main
main center
center inin Germany
Germany could could virtually
virtually dictatedictate
the
the amount
amount of of chemical
chemical production1n
production in almost almost any any country
country on on
the
the continent
continent of of Europe.
Europe. And And chemicals,
chemicals, of of course,
course, are are asas
important
important for for war
war as as for
for any
any normal
normal peacetime
peacetime industryindustry such such
as
as textiles
textiles or or agriculture.
agriculture. WhileWhile relying
relying on on their
their ownown scien-
scien-
tists
tists to
to maintain
maintain technical
technical leadership,
leadership, IG IG could
could nevertheless
nevertheless
keep
keep constant
constant watch
watch on on all
all new
new discoveries
discoveries in in the
the other
other coun-
coun-
tries
tries through
through patent
patent pooling
pooling agreements.
agreements. _ _ ''
With
With aa few few more
more steps,
steps, economic
economic pressure,
pressure, still still perhaps
perhaps
in
in the
the category
category of of sharp
sharp trading,
trading, passedpassed over over the the borderline
borderline
into
into clear-cut
clear-cut aggression.
aggression. The The widely
widely spread
spread sales sales organiza-
organiza-
tion
tion of of IC
IG was was used
used to to plant
plant Nazi Nazi agents
agents instrong
in.strong posts posts
throughout
throughout the the world.
world. The The international
international network network of of thethe IGIG
I was
was used
used toto siphon
siphon all all kinds
kinds of of information
information from from otherother coun-
coun-
tries
tries back
back to to the
the intelligence
intelligence centerscenters of of the
the NaziNazi Party
Party and and
the
the Wehrmacht.
Wehrmacht. The The spy spy ofof fiction
fiction is is aa lurid
lurid figurefigure who who
emerges
emerges in in disguise
disguise fromfrom the
the underworld.
underworld. In In striking
striking contrast,
contrast,
‘Germany’s
Germany’s most most effective
effective intelligence
intelligence agents agents were were solid,
solid, re- rc-
spectable
spectable businessmen,
businessmen, selling selling excellent
excellent goodsgoods and and advanced
advanced
industrial
industrial techniques.
techniques.
When
When World
World War War II ended,
ended, IG IG had
had apparently
apparently been been driven
driven
out
out ofof foreign
foreign markets.
markets. Both Both its its patents
patents and and its its foreign
foreign agen- agen-
cieS
cies were
were taken
taken overover by by the
the Allies.
Allies. The The budding
budding structure
structure of of
cartels
cartels seemed
seemed to to be
be broken.
broken. But But IG IG Farhen
Farben retained
retained its its Ger-
Ger-
man
man plants
plants and and above
above all all its
its technical
technical prowess.
prowess. IG IG waswas as as
fearsome
fearsome aa competitor
competitor as as ever,
ever, and and the the dye
dye and and chemical
chemical
roducers were
producers were as as hungry
hungry as as ever
ever forfor a a share
share in in IGIG patents.
patents.
Within
Within ten ten years,
years, IG IG had
had regained
regained its its place
place in in foreign
foreign trade trade
and
and Within
within twenty
twenty years,
years, at
at the
the outbreak
outbreak Of
Of World
World War
War II,
II,

,-__---aȢ.,,, '
‘\
 ‘N.

J V

" THE
THE QUIET
QUIET WAR
WAR '- -- 91
91
1‘

1G was
IG was at
at the
the center
center of
of the
the whole
whole international
international cartel
cartel structure.
structure.
The
The first
first steps, and they
steps, and they were
were takeri within only
taken within only aa few
few
years, were
years, were loose
loose alliances
alliances with
with Swiss
Swiss and
and French
French dye
dye makers.
makers.
The three
The three main Swiss concerns——Ciba,
main Swiss concerns—Ciba, Sandoz,
Sandoz, and
and Geigy—-
Geigy—
formed aa cartel
formed cartel of
of their
their own
own in
in 1920,
1920, and
and soon
soon afterwards
afterwards
reached aa working
reached working agreement
agreement with
with 1G.
IG. The
The bulk
hulk of
of the
the French
French
dye
dye business
business was
was in
in the
the hands
hands ofof two
two concerns:
concerns: Etablisse-
Etablisse-
ment
ment Kuhlmann
Kuhlmann (with(with its
its aIHliate,’St.
aIfiliate,*St. Clair
Clair dudu Rhone)
Rhone) and
and
‘ the
the Societe
Societe des
des Matieres
Matieres Colorantes
Colorantes dede St.
St. Denis.
-Denis.
By
By 1926
1926 the
the French
French and
and Swiss
Swiss firms
firms were
were co-operating
co-operating with
with
IG
IG under
under an
an oral
oral agreement.
agreement. There
There was
was aa provisional'written
provisionalwritten
agreement
agreement between
between the
the Germans
Germans andand French
French inin 1927.
1927. And
And inin
1929
1929 relationships
relationships were
were crystallized
crystallized into
into the
the Continental
Continental Dye
Dye
Cartel.
Cartel. There
There were
were six
six parties
parties to
to this
this cartel;
cartel; three
three Swiss,
Swiss, two
two
Franch,
French, and
and IG.
IG. Tegether
Together the
the six
six firms
firms accounted for eighty
accounted for eighty
per cent
per cent of
of the
the value
value ofof dyestuffs produced in
dyestuffs produced in the‘world
theworld in in
1927.
1927. The
The strength
strength ofof 1G
IG was
was as
as the strength of
the strength of more
more than
than ten,
ten,
whether
whether or
or not
not its
its heart was pure:
heart was pure: byby terms
terms ‘of the cartel
‘of the cartel IC-
IG
was given
was given seventy-five
seventy-five perper cent
cent of
of the
the export
export quota.
quota. The
The whole
whole
world, exclusive
world, exclusive ofof the
the United
United States,
States, was
was broken
broken into
into exclu-
exclu-
sive market
sive market areas.
areas. Joint
Joint sales
sales oflices
offices were
were operated
operated by by the
the
cartel.
cartel. ‘Now
‘Now 10
IG could
could compete
compete with
with outside producers in
outside producers the
in the l‘

limited world
limited world market
market With
with the
the strength
strength of
of the
the entire
entire European
European
dye
dye trade
trade behind
behind it.
it. E
The next step was to force the English chemical industry
a
W

into line.
into line. Following
Following the
the lead
lead of
of IG
IG the
the major
major chemical
chemical firms
firms
of Great
of Great Britain
Britain in
in 1926“had
1926'had organized
organized into
into aa single
single concern,
concern, J.
I

the Imperial Chemical Industries, Ltd. In size and strength, fl

ICI was
was second
second only
only toto IG
IG in_
in_ Europfe.
Europe. From
Fmm the start there
I

ICI the start there i

.
I

were
were some
some cartel
cartel links
links between ICI and
and 1G. ICI included
included the
the
l.

between ICI IG. ICI

British Nobel
British Nobel interests
interests which
which had
had already
already come
come to
to terms
terms with
with 1
DAG and Koeln-Rottweill, Germany’s (and IG’s) contribu-
DAG‘ 4
!
tion to
tion to the
the international
international munitions
munitions ring.
ring. By
By 1932,
1932, the
the heads
heads of
of
the
the British ICI were ready to admit that they could not hope
to fight
to fight the
the Continental
Continental bloc
bloc under
under IG
IG and
and they
they joined
joined the
the 1

1
l,"
/1"
L4 ' I‘ ‘L

l
‘I
‘J
,___-

92
92 ' ' [G FARBEN
[G FARBEN
cartel. There
cartel. There were
were still
still some
some areas,
areas, like Czechoslovakia, Ru-
like Czechoslovakia, Ru-
mania, and
mania, and the
the Middle
Middle East
East in
in which
which fierce
fierce rivalry
rivalry between
between
British
British and
and German
German chemical
chemical interests
interests continued, but for
continued, but for the
the
most part
most part the
the English
English had
had accepted
accepted the leadership of
the leadership of IG.
10.
The crowning
The crowning achievement
achievement of of IG’s
IC’s cartel
cartel building
building was
was the
the
series of
series of agreements
agreements reached
reached with
with American
American corporations.
corporations. Dn
On
the basis
the basis of
of IG’s
IG’s process
process for
for turning
turning coal
coal into
into gasoline
gasoline aa
broad alliance
broad alliance was
was made
made with
with Standard
Standard Oil
Oil of
of New
New Jersey.
Jersey.
Strong
Strong links
links were
were established
established with
with the Ford Company.
the Ford Company. Not
Not
quite
quite so
so successful
successful were
were the negotiations with
the negotiations with the
the leading
leading
American
American chemical
chemical concern,
concern, Du
Du Pont.
Pont. Bargaining
Bargaining went
went onon for
for
years
years between
between 10
IG and
and Du
Du Pont
Pont without
without their
their reaching
reaching anan over-
over-
all
all agreement.
agreement. Butlhecause
But because both
both IG
IG and
and Du
Du Pont
Pont had
had compre-
compre-
hensive
hensive agreements
agreements with
with the
the British
British ICI,
ICI, the
the two
two giants
giants ofof
the
the world
world of
of chemistry
chemistry avoided
avoided aa showdown
showdown fight;
fight; the
the terms
terms
of
of their
their agreements
agreements with
with ICI
ICI at
at least
least had
had to
to be
be consistent.
consistent.
The
The great
great wealth
wealth and
and resources
resources of
of America
America made
made itit the
the
final
final goal
goal of
of any
any plan
plan ofof economic aggression. How
economic aggression. How farfar 1G
IG
had
had penetrated
penetrated into
into North and South
North and South America
America and
and how
how it
it had
had
crippled
crippled the
the American
American war
war effort
effort after
after Pearl
Pearl Harbor
Harbor will
will be
be
told
told in
in later
later chapters.
chapters.
Some
Some ofof the
the foreign
foreign companies
companies which
which entered
entered into
into IG-
IG-
dominated
dominated cartels
cartels were
were strong
strong enough
enough to
to deal
deal With
with the
the Ger-
Ger-
mans
mans more
more or
or less
less as
as equals.
equals. Many
Many others
others were
were simply
simply bought
bought
out
out by
by IG.
IG. With
With thethe branches
branches which
which IG
IG had
had abroad,
abroad, this
this
gave
gave 1G
IG aa system
system of of foreign
foreign holdings
holdings and
and assets
assets which
which cov-
cov-
ered
cred ninety-three
ninety-three countries
countries on
on all
all the
the continents
continents 0f
of the
the earth.
earth.
To,
To. list
list IG’s
IG’s foreign
foreign holdings
holdings would
would only
only be
be tedious
tedious and
and he-
be-
wildering: there were about five hundred of them. Many
were major concerns in their own right. For example, Norsk-
‘ Hydro,
Hydro, which
which moved
moved into
into the
the empire
empire of
of German
German chemicals
chemicals in
\
in
the
the middle
middle of
of the
the 1920’s,
1920’s, was
was aa leader
leader of
of Norwegian
Norwegian indus-
indus-
try and a large-scale producer of nitrates. For a starter, IG
acquired
acquired twenty-six per cent of the stock of Norsk-Hydro;
Norsk-I-Iydro;
French
French interests
interests retained
retained financial
financial control,
control, but
but this,
this, too,
too,
\

O
_""—-u-I-1""
Q

WAR
THE QUIET WAR ‘‘ ‘ ' 93
93
passed to'the German
passed to'the Germanss after the debacle
after the in 1940.
debacle in cartel
A cartel
1940. A
agreement assigne
agreement the Norweg
to the
assignedd to Norwegians place in
their place
ians their Ger-
the Ger-
in the
man system
man and product
marketing and
of marketing
system of production. Finally, IG
ion. Finally, acted
IG acted
as the
as all of
for all
sales'agency. for
the sales'agency. of the products of
the products Norsk-Hydro.
of Norsk-Hydro.
World War
During World
During War II Norsk-Hydro was
II Norsk-Hydro was aa frequently dis-
frequently dis-
cussed bomb
cussed It was
target. It
bomb target. was reportedly of heavy
center of
reportedly aa center water
heavy water
experiments-—the same
experiments-—the experiments which
same experiments gave Allied
which gave intel-
Allied intel-
some anxious
ligence some
ligence trying to
hours trying
anxious hours how far
judge how
to judge Nazis
the Nazis
far the
delved into
had delved
had secrets of
the secrets
into the fission. Today,
atomic fission.
of atomic lib-
in lib-
Today, in
Norsk-Hydro is
Norway, Norsk-Hydro
erated Norway,
erated in full
is in again. It
production again.
full production is
It is
one
one of the most
of the parts of
promising parts
most promising old IG
the old
of the network.
Farben network.
IG Farben
According to
According evidence in
to evidence record of
the record
in the U. S.
the U.
of the Kil-
Senate’s Kil-
S. Senate’s
Committee, an
gore Committee,
gore agent of
American agent
an American IG named
the IG
of the Carl
named Carl
came to
Peters came to Germa
Germany after World
ny after World WarWar IIII in S. .
U. S.
in aa U.
government job,
government job, He be sent
to be
had to
He had sent home because he
home because using
was using
he was
his official position
his official up broke
pick up
to pick
position to broken threads of
n threads relation-
old relation-
of old
ships. It is
ships. It that he
significant that
is significant particularly interested
was particularly
he was re—
in re-
interested in v

Norsk-Hydro.
t

cstablishing contacts with

establishing contacts with Norsk-Hydro. I
-t

had an
1943 had
in 1943 in
interest in
an interest
t

Accordingto its
Accordingto own hooks
its own 10 in
books IG s
I

two forty-eight foreign

hundred forty-eight
two hundred companies. Yet
foreign companies. Yet careful in-
careful in- 1
t

after the
vestigation after
vestigation was over
war was
the war that the
revealed that
over revealed num-
true num-
the true
was practically
ber was
ber double that.
practically double difference is
The difference
that. The explained
is explained
word: camoufl
in one word: camouflage-—-a difficult art
age-w—a difficult in which
art in Hermann
which Hermann
master.
be aa master.
to be
4

Schmitz was
Schmitz considered by
was considered colleagues to
his colleagues
by his
To all appear
To all ances aa camou
appearances camouflaged had no
firm had
flaged firm essential
no essential
connec
connection IG. Owners
with IG.
tion with Ownership hip genera
generally supposed to
was supposed
lly was rest
to rest
‘ in hands of
the hands
in the citizenss of
of citizen the partic
of the particular countryy in
ular countr the
which the
in which
compa
company was located
ny was Close inspec
located.. Close tion would
inspection would reveal op«
that op-
reveal that
eratio
erations were actual
ns were ly contro
actually controlled by agents
lled by of IG
agents of Farhen,
IG Farben,
but in the
but in of the
eyes of
the eyes the firm
law the
the law was indepe
firm was ndent.
independent.
prime examp
A prime
A example Farben camou
of Farben
le of camouflage the United
in the
flage in United
is the
States is
States General Aniline
the General Film Corporation.
and Film
Aniline and General
Corporation. General
and Film,
Aniline and
Aniline the United
when the
Film, when entered World
States entered
United States War
World War
II, called
. 11, itself an
called itself independentt corporation
an independen with no
corporation with relation
no relation
to IG Farben.
to IG it had
Yet it
Farben. Yet created originally
been created
had been by IG
originally by Far-
IG Far-
 . __

94
94 ' IG FARBEN
IG FARBEN
ben,
ben, under
under the the name
name of of American
American 10. IG. The
The stock
stock ofof the
the cor-
cor-
poration
poration was was held,
held, not
not by
by IG Farben, but
IG Farben, but foresightedly
foresightedly by by
another corporate
another corporate dummydummy set set up
up byby Farben——IG
Farben—IG Chemic Chemie of of
Switzerland. It
Switzerland. It is
is to
to be
be observed
observed that
that when
when all all this
this happened,
happened, '
in the
in the late
late 1920’s,
1920’s, IG IG Farben
Farben was,not
was,not so so bashful
bashful about
about tag-tag-
ging its
ging its foreign agentslwith the
foreign agents_with the mystic symbol “1G.”
mystic symbol “IG.” But after
But after
the war
the started, Hermann
war started, Hermann Schmitz
Schmitz went
went through
through all all the
the legal
legal
motions
motions of of severing
severing thethe ties
ties between
between IG Farben and
IG Farben and IG
IG Chemie
Chemic
of Switzerland.
of Switzerland. He hoped naturally
He hoped naturally that
that this
this would
would remove
remove
such valuable
such valuable properties
properties as as General
General Aniline
Aniline and and Film
Film fromfrom
the category of German, and, therefore, enemy companies
into the
into the safe
safe haven
haven of of the
the neutrals“
neutrals“ Incidentally,
Incidentally, if if anyone
anyone
wondered during
wondered during the the war
war why
why Germany
Germany did did not
not take
take over
over
Switzerland, this is an important part of the answer. Since
IG Chemic
IG Chemie now now called
called itself
itself an
an independent
independent and and neutral
neutral Swiss
Swiss
company, and
company, and since
since IGIG Chemic
Chemie still
still held
held much
much of of the
the stock
stock
of General Aniline and Film, the latter also called itself a
neutral companylfree
neutral companylfree of of German
German control.
control. As As aa German
German or- or-
ganization
ganization it it would
would be be seized
seized byby the
the U.
U. S.S. government.
government. If If it
it
passed muster
passed muster as as aa neutral,
neutral, it would be'free
it would beifree to to continue
continue in in
business as
business as usual.
usual. More
More than
than aa year
year after
after the
the end
end of
of the
the war,
war,
the status
the status ofof General
General Aniline
Aniline andand Film
Film had
had notnot been
been deter-
deter-
mined. Hermann
mined. Hermann SchmitzSchmitz hadhad w_oven,his
wovenhis legal legal web
web of of con-
con-
cealment with
cealment with consummate
consummate skill.skill.
IG Chemic
IG Chemie was was perhaps
perhaps the the most
most important
important link link in in IGIG
Farben’s chain
Farben’s chain of of camouflaged
camouflaged holdings.
holdings. It It was
was ‘established
‘established
J in Switzerland in 1928 with the full name of “Internationale
Gesellschaft fur
Gesellschaft fur Chemische
Chemische Unternehmungen.”
Unternehmungen.” IG
IG Chemie
Chemic
was
was created
created by
by 16
IG Farben.
Farben. Hermann
Hermann Schmitz
Schmitz was
was president
president
of
of both
both organizations.
organizations. IG
IG Farben
Farben guaranteed
guaranteed the
the dividends
dividends
which
which would
would have
have to
to be
be paid
paid by
by lG
IG Chemie.
Chemic. It
It was
was provided
provided
that IG Farben could at any time take over IG Chemie
Chemic at
itS
its book value.
And
And then
then with
with one
one bold
bold stroke
stroke Schmitz
Schmitz declared IG
IC Chemic
Chemie
independent. IG Farben
Farbcn would no longer guarantee dividends

"7r"'i'.'1/'1?
, THE
THE QUIET
QUIET WAR
WAR 95.
95
or
or be able to
be able take over
to take over at
at will.
will. Schmitz
Schmitz was
was nono longer
longer presi-
presi-
dent of
dent of the
the Swiss
Swiss concern.
concern. ‘
Actually, of
Actually, of course,
course, the
the old
old ties
ties were
were still
still there.
there. The
The bank
bank
which handled'IG
which handled'IC Chemie’s
Chemie’s financial
financial matters,
matters, H.
H. Sturznegger
Sturznegger
and Company,
and one of
was one
Company, was Farbcn’s foreign
IG Farbcn’s
of 10 IG Far-
assets. IG
foreign assets. Far-
ben
ben retained
retained its
its friends
friends (and
(and agents)
agents) in
in the
the management
management of
of IG
IG
Chemie.
Chemic. But
But the
the legal
legal formalities
formalities were
were rigidly
rigidly observed
observed and
and
the
the remaining
remaining ties
ties deeply
deeply concealed.
concealed. Schmitz’s
Schmitz’s personal
personal secre-
secre-
tary,
tary, a
a nervous,
nervous, middle-aged
middle-aged woman,
woman, was
was interrogated
interrogated at
at
length on
length on this point by
this point In aa series
oflicials. In
American officials.
by American of
series of
interviews punctuated
interviews punctuated by
by frequent
frequent breakdowns
breakdowns andand hysterics,
hysterics,
the secretary
the doggedly. maintained
secretary doggedly she knew
that she
maintained that nothing at
knew nothing at
all about
all about Schmitz’s
Schmitz’s dealings
dealings with
with IG
IG Chemic
Chemie after
after the
the sep-
sep-
aration. In
aration. In the
the end,
end, after
after every
every possible
possible technique
technique of
of ques-
ques-
tioning had been
tioning had exhausted, the
been exhausted, interrogators were'almost
the interrogators werealmost
convinced:
convinced: Hermann
Hermann Schmitz
Schmitz was
was so
so secretive
secretive that
that his
his own
own 1
.44

personal
personal secretary
secretary did
did not
not always
always know
know what
what he was doing.
he was doing. \

Geheimrat Schmitz did

Geheimrat Schmitz did not
not practice
practice the
the arts
arts of
of corporate
corporate '1

camouflage
-camouflage just
just for the pleasure
orthe pleasure of
of proving
proving his
his own
own virtuosity.
virtuosity.
There
There was
was the
the obvious
obvious reason
reason that
that Germany
Germany was
was heading
heading
straight
straight for
for aa war,.and
war,.and foreign
foreign holdings
holdings»1 would
would have
have to
to be
be
concealed to
concealed prevent seizure
to prevent possible enemies.
by possible
seizure by And there
enemies. And there
were
were other
other advantages,
advantages, such
such asas tax
tax evasion,
evasion, as
as well.
well. An
An inter-
inter-
office
office memorandum
memorandum foundfound inin the
the files
files of
of IG
IG Farben
Farben inin Frank-
Frank- 3
furt
furt gives
gives aa frank
frank account
account of
of the
the reasons for using
reasons for using camouflage.
camouflage. l
I
According toithe
According to the document,
ddcument, IGIG started
started the
the process
process of
of camou-
camou- \

flage of foreign
flage of foreign agencies
agencies as
as soon
soon asas World
World War
War II ended.
ended. The
The
main
main features
features of
of concealment
concealment were:
were: “.
“. .. .. to establish such
to establish such
companies as
companies as firms
firms of
of the
the law
law of
of the
the country
country concerhed
concerhed and
and
to
to distribute the shares
distribute the shares of
of these'firms
these'firms in
in such
such aa Way
way that
that the
the
participation
participation of
of IC
IG in
in these
these firms
firms was
was not
not shown.”
shown.”
The
The advantages
advantages were
were many:
many:
“The
“The ‘Tarnung’
‘Tarnung’ [camouflage]
[camouflage] in in the
the past
past has
has not
not only
only been
been
of
of great
great advantage
advantage in
in the
the commercial
commercial andand tax
tax situation
situation which
which
figured
figured inin many
many millions,
millions, but
but also
also in
in the
the consequence
consequence of of this
this
\

1
I
___i.-._—

96
96 44 IG
IG FARBEN
FARBEN
war
war the
the system
system of
of ‘Tarnung’
‘Tarnung’ gave
gave us
us the
the chance
chance in
in aa large
large
scale
scale to
to secure
secure our
our organization,
organization, the
the investments,
investments, and
and the
the
advance
advance ofof our
our outstanding
outstanding claims.”
claims.”
Besides
Besides avoiding
avoiding heavy
heavy taxes
taxes frequently
frequently levied
levied against
against
foreign
foreign concerns, camouflaged IG
the camouflaged
concerns, the IG agencies were protected
agencies were protected
against
against boycott. There were
boycott. There difficulties with
no difficulties
were no currency reg-
with currency reg-
ulations.
ulations. Details of IS
Details of were concealed.
operations were
IG operations And after
concealed. And after
the Allied blockade
.the Allied was thrown
blockade was Germany, IG’s
around Germany,
thrown around orders
lG’s orders
were
were filled
filled by
by its
its cloaked
cloaked agencies.
agencies.
Some
Some of brasher Nazi
the brasher
of the opposed the
agents opposed
Nazi agents IG system
the IG system
of
of camouflage. wanted the
They wanted
camouflage. They of Hitler’s
glories of
the glories Reich pro-
Hitler’s Reich pro-
claimed
claimed in possible way
every possible
in every the IG
As the
way. As memorandum says
IG memorandum says
(in
in translation
translation by
by one
one of
of the
the IG
IG officials):
officials
(-
“In
In case
case of
G‘
of gaining
I
gaining this
‘
this war,
'
war, the
the mightful
'
mightful situation
I 0
situation of
) : .
of the
0
the -

Reich
Reich will make it
will make necessary to
it necessary re examine the
to re-examine system of
the system of
‘Tarnung’.
Tarnung Politically it will
seen, it
Politically seen, wished that
be wished
often he
will often that the
the
German character of
German character of our companies is
selling companies
foreign selling
our foreign is openly
openly
shown.
shown In respect already
this respect
In this this war
before this
already before strong wishes
war strong wishes
of
of the
the AD.
A O [Nazi
. . [Nazi foreign
' foreign agency]
' agency became
] became loud
loud . , . .” .
Whether
Whetlier the
the war
war was
was won
won oror not,
not, IG
IG had
had nono intention
intention of of
dropping
dropping camouflage
camouflage in in all
all countries.
countries. The
The U.
U S.S anti-dumping
anti dumping
act
act of was an
1921 was
of 1921 which the
obstacle which
an obstacle intended to
Germans intended
the Germans to
continue
eentinue to by-pass.
to by As the
pass. As memorandum says:
the memorandum “The U.
says “The U S.S A.
A.
Antidumping
Antidumping Act will remain
Act will continuing of
Therefore, continuing
remain. Therefore, of the
the
‘Tarnung’
‘Tarnung in and Canada,
Australia and
in Australia to have
just to
Canada, just free and
two free
have two and
independent
Independent importers
importers inin these
these countries
countries [to to whom
whom German
German
goods would be
goods would at cut
sent at
be sent prices to
out prices conceal the
to conceal fact that
the fact that
dumping
dumping was
was being
being practiced
practiced inin the
the United
United States]
States] .. .. .”
.”
There
There is
is nothing
nothing new
new inin the
the use
use of
of intelligence
intelligence services—
services———
including
including spies and informers—-—-by
spies and private business.
informers——-by private There is
business. There is
the
the famous
famous story
story of
of Baron
Baron Rothschild
Rothschild receiving
receiving news
news of
of the
the
Battle
Battle of
of Waterloo
Waterloo ahead
ahead of
of cabinet
cabinet officials,
officials, and
and making
making
a3 killing
killing with
with the
the information.
information. Hugo
Hugo Stinnes
Stinnes operated
operated aa per-
per-
5011111
sonal information
information service
service with
with agents
agents all
all over
over Europe;
Europe; some
some
of
of them
them would
would have
have been
been most
most at
at home
home inin aa novel
novel by
by Eric
Eric

/'\
.:.--d
I
5.}:_
\,=_
\i
\i
 1

THE
THE QUIET WAR
QUIET WAR ‘‘ 97
97
Ambler.
Ambler. But
But the
the spy
spy work
work of
of IG
IG Farben
Farben was
was done
done on
on an
an un-
un-
precedented
precedented scale.
scale. So
So complete
complete ‘was
‘was the
the coverage
coverage of
of every
every
important aspect
important aspect of conditions in
of conditions in foreign
foreign countries
countries that
that Far-
Far-
ben became
ben became one
one of
of the
the main
main props
props of
of both
both Wehrmacht
Wehrmacht andand
Nazi Party
Nazi Party intelligence.
intelligence.
The head
The head of
of the
the IG
IG spy
spy ring
ring was
was Max
Max Ilgner.
Ilgner. Ilgner
Ilgner was
was aa
dynamic and
dynamic and ambitious
ambitious young
young man,
man, the
the nephew
nephew ofof Geheimrat
Ceheimrat
Schmitz and
Schmitz and aa member
member of of the
the Vorstarid
Vorstand or
or board
board of
of managing
managing
directors. Officially
directors. Officially he
he was
was known
known simply
simply as
as the
the Director
Director of
of
Finance for
Finance for IG.
IG. But
But his
his office,
office, called
called Berlin
Berlin NW
NW 7, 7, had
had func-
func-
tions far
tions far removed
removed from
from finance.
finance.
Like his
Like uncle Schmitz,
his uncle appreciated the
Ilgner appreciated
Schmitz, Ilgner value of
the value of
secrecy.
secrecy. He
He ran
ran his
his office
office with
with aa ‘strong'hand
stronghand and
and none
none of
of his
his
chief assistants
chief had aa complete
assistants had of the
picture of
complete picture whole opera-
the whole opera-
tion.
tion. Ilgner
Ilgner had
had early
early joined
joined the
the Nazi
Nazi Party
Party and
and maintained
maintained
relations
relations with
with such
such party
party leaders
leaders as-Goebbels.
as~Goebbels. When
When one one of
of
the 10
the men, Gattineau,
IG men, involved with
became involved
Gattineau, became Ernst Roehm
with Ernst Roehm
at the time
at the the 1934
of the
time of purge and
blood purge
1934 blood jailed, Ilgner’s
was jailed,
and was Ilgner’s
influence
influence in
in party
party circles
circles was
was powerful
powerful enough
enough toto have
have him
him
released.
released. But
But it
it was
was evident
evident in
in the
the course
course of
of his
his interroga-
interroga-
tions that
tions took most
Ilgner took
that Ilgner in recalling
pleasure in
most pleasure the days
recalling the days
before
before Hitler over when
took o'ver
Hitler took with Germany’5
met with
he met
when he Germany’s elite in
elite in
the
the Herrn Klub, the
Herr_ii_,I,(lub, the inner
inner circle
circle of
of Junkers
Junkers and
and financiers
financiers 5' P

whichincluded
whiiehimincluded VonVon Papen
Papen and
and General
General von
von Schleicher.
t
Sclileicher.
The
The largest
largest section
section of
of NW
NW 7, 7, and
and the
the one
one which
which had
had the
the
main intelligence function,
mainiintelligence function, bore
bore the
the innocent
innocent title
title of
of Statis-
Statis-
ticalbepartment.
tical’Department. The The functions
functions of
of the
the Statistical
Statistical Department
Department I

were
were desoribed
described by
by aa Farben
arbenoflicial
official as
as follows:
follows: I

'' “Such
“Such tasks
tasks and
and work
work were
were toto prepare
prepare .. .. .. all
all records,
records,
I
I

files, reports,
files, reports, maps,
maps, and
and figures,
figures, that
that were
were appointed
appointed [sic] [sic] by
by
the officers
the oihcers of
0f the
the OKW
OKW [army
[army supreme
supreme command]
command] ;; to to com-
com-
plete them
pletc them out
out of
of other
other archives
archives at
at the
the disposalfif
disposal,of the the OKW
OKW
by
by news
news and
and reports
reports entering
entering IG
IG Berlin
Berlin NW
NW 7;7; .. .. .. to
to prepare
prepare
reports
reports and
and maps
maps about
about industries
industries and
and agricultural
agricultural produc-
produc-
tion
tion abroad,
abroad, considering
considering especially
especially the
the ‘engpasse’
‘engpasse’ (bottle-
(bottle-
9

u,

I‘!
_I
_,?_,---—i—

J
1
9s
98 f \‘ IG
IG FARBEN
FARBEN
necks) in capacities
necks) in capacities and
and raw
raw materials.
materials. To
To make
make inquiries
inquiries
about
about production
production .. .. .. (and)
(and) to
to prepare
prepare reports about the
economical situation of foreign countries . . .”
All
All of
of the
the functions
functions described
described here
here are
are well within thethe
normal
normal runrun of
of intelligence
intelligence operations. What is remarkable is
'the
the fact
fact that
that the
the Supreme
Supreme Command
Command of the Army, which
boasted
boasted ofof having
having the
the most
most highly
highly developed
developed staff
staff in
in the world,
should
should call
call on
on aa private
private business
business concern
concern toto do
do this
this work
work for
for
it.
it. Even
Even more
more remarkable
remarkable is is Ilgner’s
Ilgner’s ownown admission
admission that
relations
relations with
with the
the OKW
OKW began
began as far back as 1928.
As
As always,
always, IGIG operations
operations were
were cloaked
cloaked in in the utmost
utmost re-
re-
spectability.
spectability. Ilgner’s
Ilgner’s director
director of
of statistics
statistics was
was aa Dr.
Dr. Keith-
Reitl1-
inger
inger who
who had been considered one of the outstanding statisti-
cians
cians of
of Germany.
Germany. Reithinger
Reithinger had
had traveled
traveled in
in many
many countries
countries
including
including the
the United
United States,
States, England,
England, Russia,
Russia, and
and France
France
(the
(the most
most important
important potential
potential enemies
enemies of
of Germany)
Germany) and
and in.
in
each country met with leading statistioians
statisticians and economists on
aa basis
basis of
of scientific
scientific interest and arranged the exchange ‘of of
statistical
statistical data.
data. '
IG’5
IG’s intelligence
intelligence work
work was
was well
well appreciated
appreciated by the Army.
by_the
The
The following
following letter
letter was
was sent
sent to
to the
the chief
chief salesman
salesman of
of IG,
IG,
Georg
Georg von
von Schnitzler,
Schnitzler, by by Colonel
Colonel Piekenbrock
Piekenbrock who
who was
was aa
counter-espio nage officer
counter-espionage oflicer for
for the
the OKW:
OKW:
“I
“I would
would like
like to
to inform
inform youyou that I am shortly leaving Berlin
and my present office
oflice to take over a command at the front.
II feel
feel particularly
particularly urged
urged to thank you for the valuable co-
operation
operation which
which you
you have
have extended
extended to
to my
my office.
ollice. II shall
shall always
retain pleasant memories of the personal and official ollieial collab~
collab-
oration
oration with
with you.
you.
_ “I
“I should
should like to take this opportunity of of asking
asking you
you to
to
give
give the
the same
same support
support to
to my
my successor,
successor, Lieutenant
Lieutenant Colonel
Colonel
Hansen. ‘ A 1I'
“With many thanks and Heil Hitler . . .”
The
The Army
Army thought
thought so
so highly
highly ‘of NW 7’é
7% general intelligence
work
work and
and of
of its
its more
more specific
specific jobs like
a
lik_e the making of bomb

-7, ,
 THE QUIET
THE QUIET WAR
WAR ‘ .
I:
3
99
99

surveys for
surveys for the
the Luftwaffe
Luftwaffe that
that one
one of
of Ilgner’s
Ilgner’s serious
serious prob-
prob-
lems was
lems was to
to prevent
prevent the
the OKW
OKW from
from bodily
bodily taking
taking over
over whole
whole
sections of'NW
sections of'NW 7. 7. The
The problem~was
problemswas solved
solved by
by putting
putting some
some
of the
of the younger
younger men
men in
in uniform
uniform and
and letting
letting them
them stay
stay on
on their
their ,
old jobs
old jobs in
in the
the IG
IC Farben
Farben intelligence
intelligence service.
service.
The Berlin
The Berlin NW
NW 7
7 office
office was
was the
the center
center of
of the
the IG_intel1igence,
IGintelligence,
but the
but the business
business end
end of
of -the
the operation
operation was
was in
in foreign-countries,
foreign-countries,
including the
including the United
United States.
States. Surprisingly
Surprisingly little
little news
news of
of Nazi
Nazi.
spies or
spies or of
of action
action against
against them
them reached
reached the
the American
American public
public
'either during World
either during World War
War IIII or
or in
in the
the preceding
preceding years
years of
of
growing tension.
growing tension'. This
This was
was in
in striking
striking contrast
contrast to
to World
World War
War
II in
in the
the course
course ofof which
which ranking
ranking diplomatic
diplomatic figures,
figures, such
such as
as
Franz von
Franz von Papen,
Papen, were
were implicated
implicated inin espionage.
espionage.
The F.
The F. B.
B. I.
I. did
did make
make headlines
headlines with
with aa few
few investigations
investigations
shortly before
shortly before the
the outbreak
outbreak of
of World
World War‘
War‘II. But the
II. But the results
results
were not
were not overwhelmingly
overwhelmingly impressive.
impressive. AA pair
pair of
of Nazi
Nazi agents,
agents,
Dr. Ignatz
Dr. Ignatz Griebl
Griebl and
and Werner
Werner Gudenberg,
Gudenberg, evaded
evaded arrest
arrest and
and
escaped from
escaped from the
the country
country on
on German
German passenger
passenger liners.
liners. A
A hand-
hand
'ful of others,
ful of others, quite
quite evidently
evidently small
small fry,
fry, were
were arrested:
arrested: they
they
included aa hairdresser,
included hairdresser, Johanna
Johanna Hofmann;
Hofmann; aa former
former soldier,
soldier,
Cuenther Rumrich;
Cuenther Rumrich; Otto
Otto Voss,
Voss, an
an aviation
aviation mechanic;
mechanic; Erich
Erich
Glaser, a soldier in the air corps. After the war had started, a
head-on assault
head-on assault of
of Nazi
Nazi spies
spies and
and saboteurs
saboteurs was
was stopped
stopped when
when
I
the agents who were landed by submarine were picked up on l
l
ti

the eastern
the eastern seaboard.
seaboard.
But still there was no public evidence of a general and
effective system
effective system of
of Nazi
Nazi espionage.
espionage. As
As one
one writer
writer (Richard
(Richard
Wilmer Rowan,
Wilmer RoWan, inin Secret
Secret Agents
Agents Against
Against America)
America) noted
noted
sardonicallyin
sardonically in 1939:
1939: .- _ -'-
investigation—without one ex-
“During the great Nazi spy investigation-—ivithout
spy~—the legal representatives of the
ample of a great Nazi spy-—the
United States
United States government
government worked
worked out
out aa method
method by
by means
means of
of
which they
which they were
were certain
certain to
to leave
leave this
this case
case just
just about
about where
where
they found
they found it.
it'. Whenever
Whenever aa German
German suspect
suspect appeared
appeared cheer-
cheer-
fully before
fully before Federal
Federal officials
officials in
in New
New York
York and
and said
said he
he would
would
1

i
I
44
:_-'.--—--—?— '_-""
1
t

1'l O0
00 IG FARBEN

be
be glad
glad to
to tell
tell all
all he
he knew,
knew, he
he ceased
ceased to
to be
be aa suspect,
suspect, even
even
though
though he told them
he told them all he knew.
all he knew. It
It proved
proved to
to be
be an unheat-
an unbeat-
ahle
able ruse in making
ruse in making for
for the
the exits
exits which
which led
led straight home to
straight home
Germany.”
Germany.” "
The fact
The fact that
that there
there was was little
little published
published evidence did not, of
course, mean
course, mean thatthat there
there was was nono Nazi
Nazi espionage
espionage in the United
States. It
States. It did
did not
not even
even meanmean thatthat nono counter-steps
counter-steps had had been
been
taken by
taken the F.
by the F. B.B. I.
I. oror U.U. S.S. Military
Military Intelligence. It is an
axiom of
axiom of counter-intelligence
counter-intelligence that an enemy agent agent under
under ob-ob-
servation can lead to further information, whereas once he is
arrested
arrested all
all lines
lines areare broken.
broken. But But it it is
is certain
certain that
that the
the small
small
amount
amount of of revealed
revealed information
information was was misleading
misleading in one re-
spect:
spect: The Nazis did
The Nazis did not not have
have to to depend
depend on on beauty parlor
operators and
operators and army
army deserters
deserters as as their
their only
only agents.
agents.
Following the
Following the collapse
collapse of of the German Imperial armies in in
November,
November, 1918,1918, Germany’s
Germany’s militarymilitary leaders
leaders reviewed
reviewed every
every
phase
phase of
of their
their operations.
operations. They They examined, they criticized, they
planned
planned anew.
anew. OutOut of of defeat
defeat came
came newnew ideas. Ludendorff and
.Von
Von Seeckt
Seeckt preached
preached the doctrine of
the doctrine sudden and
of sudden and total
total war.
The
The head
head of of intelligence
intelligence for for the
the German
German General
General Staff,
Staff, Colonel
Colonel
Walther
Walther Nicolai,
Nicolai, took took the the over-all
over-all approach
approach of of Ludendorff
Ludendorff
and developed
and developed from from it it what
what CurtCurt Riess
Riess has
has termed
termed the concept
the concept
of “total
of “total espionage.”
espionage.”
According to
According to the
the German
German militarymilitary theorytheory developed be- be-
tween the two world wars, every resource of the nation, from
the entire
the entire economy
economy out out through
through everyevery political
political organ,
organ, would
would
be
be organized
organized in in complete
complete supportsupport of of aa mechanized
mechanized and and sharply
sharply
trained
trained army
army which
which wouldwould strikestrike suddenly
suddenly and and With
with over-
over-
whelming
whelming force.
force. This
This became
became the the Well-known
well-known patternpattern of the
of the
Blitz. And
Blitz. And hack
back ofof this system of lightning war stood a revc: revo-.
lutionary
lutionary approach
approach to to espionage.
espionage. In In thethe ideas
ideas of of Colonel
Colonel
Nicolai,
Nicolai, Mata
Mata Hari Hari andand the the soldier-spy
soldier-spy operating
operating in in aa half-
half-
dozen different uniforms were as dated as attrition by trench
warfare.
warfare. The The lurid
lurid specialist
specialist out out of of aa half-world
half-world was was nono
longer
longer enough.
enough. Every
Every foreign
foreign linklink ofof the
the entire
entire nation
nation should
should

/ /

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THE QUIET WAR

THE QUIET WAR 101
101
be used
be used to
to pick
pick up
up information
information and
and funnel
funnel it
it back
back to
to the
the
intelligence
intelligence center.
center.
For
For this
this new
new type
type of
of espionage
espionage what
what could
could he
be more
more per-
per-
fectly suited
fectly suited than
than business
business concerns
concerns trading
trading in
in all
all parts
parts of
of ‘
the world
the world and
and dealing
dealing with
with important
important technical
technical information
information
as aa matter
as matter of of daily
daily routine?
routine? For
For espionage
espionage inin Russia,
Russia,
Colonel Nicolai
Colonel Nicolai used
used firms
firms like
like Borsig
Borsig and
and Frolich—Klupfel—~
Frolich—Klupfel-
Dehlmann. In
Dehlmann. In dozens
dozens ofof other
other countries
countries throughout
throughout the
the world
world
the network
the network of of IG
IO Farben
Farben was
was ready
ready at
at hand.
hand. ''
The United
The United States
States was
was soso important
important in
in German
German plans
plans thatthat l
IG found
IG found it
it necessary
necessary toto set
set up
up aa special
special organization—called
organization—called
Chemnyco, Inc.,
Chemnyco, of New
Inc., of siphon out
York-—to siphon
New York—to technical data
out technical data
of- military
of- military importance.
importance.
Chemnyco was
Chemnyco was aa small
small and
and compact
compact firm.
firm. It
It used
used only
only
l
about thirty
about thirty employees.
employees. ItsIts officials
officials for
for the
the most
most part
part were
were
American citizens.
American citizens. Its
Its stock
stock was
was held
held in
in the
the names
names of
of Ameri-
Ameri-
can citizens.
can citizens. Some
Some of of the
the most
most important
important names
names in
in the
the top
top
rungs of
rungs of IGIO Farben
Farben were
were associated
associated with
with Chemnyco
Chemnyco atat one
one
time or
time or another.
another. There
There were
were Walter
Walter Duisberg,
Duisberg, son
son of
of the
the
eminent Carl
eminent Carl Duisberg;
Duisberg; Dietrich
Dietrich A.A. Schmitz,
Schmitz, brother
brother of
of Her-
Her-
mann Schmitz;
mann Schmitz; and
and Rudolph
Rudolph Ilgner,
Ilgner, brother
brother ofof Max
Max Ilgner.
Ilgner.
IG’s leaders
IG’s sent men
had sent
leaders had whom they
men whom they could to represent
trust to
could trust represent
them in
them in America.
America. When
When thethe men
men who
who operated
operated Chemnyco
Chemnyco
were not
were by blood
related by
not related ‘the principal
to ‘the
blood to leaders of
principal leaders IChin
of IGi"in
they were
Germany, they
Germany, at least
were at German-Americans with
reliable German-Americans
least reliable with
unmistakable sympathies.
unmistakable sympathies. For
For example,
example, thethe last
last president
president of
of
Chemnyco was
Chemnyco was anan industrial
industrial chemist
chemist named
named Karl
Karl Hocl1s-
Hochs-
Wender. Hochswender
wender. Hochswender hadhad been
been trained
trained at
at the
the best
best German
German
universities and
universities and within
within the
the IG1G in
in Germany.
Germany. HeHe was
was sent
sent to
to
the United
the United States
States early
early in
in the
the 1930’s
1930’s to
to take
take part
part in
in discus-
discus-
sions with
sions With Standard
Standard Oil;
Oil; he
he remained
remained and
and became
became aa citizen.
citizen.
Hochswender fared
Hochswender fared well
well in
in the
the United
United States.
States. He
He lived
lived
the life
the life of
of aa well-to-do
well-to-de New
New York
York suburbanite.
suhurbanite. He
He was
was aa
member of
member of good
good clubs
clubs as
as well
well as
as of
of the
the Deutscher
Deutscher Verein.
Verein.
He made
He made contributions
contributions to
to the
the Deutsches
Deutsches Haas
Haas of
of Columbia
Columbia

,4
 —
r

. z .

102
102 ,‘ '' .- IG FARBEN
IG FARBEN
University, the
University, the American
American Committee
Committee for for the
the German
German ReliefRelief
Fund, German-American
Fund, Cerman-American Charities, Charities, Inc.,
Inc., and
and the
the German-
German-
American School
American School Association.
Association.
Hochswender was
Hochswender was counted
counted on on in in the
the campaign
campaign to to build
build
sympathy for
sympathy for the
the Nazi
Nazi state.
state. In
In October,
October, 1938,
1938, he
he received
received
aa letter
letter from
from Fredericleeuser,
Frederick_Heuser, the the director
director ofof the
the Deutsches
Deutsches
Haus
Haus of of Columbia
Columbia University,
University, which which stated:
stated:
“.
“. .. .. When
When oneone considers
considers thatthat the
the University
University is is being
being
flooded
flooded withwith anti-German
anti-German books books fromfrom all
all sources,
sources, itit is-very
is-very
important
important that that the
the German
German side side should
should also
also find
find considera-
considera-
tion
tion .. .. .. You
You must
must helphelp usus if
if we
we areare to
to keep
keep upup this
this work
work
on
on behalf
behalf ofof aa better
better understanding
understanding of of the
the Greater
Greater Germany.”
Germany.”
And
And in in May,
May, 1939,
1939, he he received
received aa similar
similar letter
letter from
from
Heuser: ' ._' /
u

“As
“As II am am going
going to to Europe
Europe the the end
end ofof this
this week,
week, partly
partly
on Dcutches Hans
on Deutches Haas business
business .. .. .. might
might II askask you
you whether You you
would not make at this time the. same contribution as ‘last
year?
year?
“I do
“I do not
not wish
wish to
to appear
appear importunate,
importunate, but
but as
as you
you may
may well
well
imagine I am sincerely concerned about our work which was
rarely so
rarely so important
important as as just
just now.”
now.” V,
Officially, Chemnyco
Officially, Chemnyco was was known
known as as aa “technical
“technical service”
service”
agency. Its
agency. Its sole
sole client
client waswas IGIG Farben.
Farben. Just Just how how such
such an an
agency could
agency could ferret
ferret out
out industrial-military
industrial-military intelligence
intelligence is is
clearly indicated
¢1early indicated in in an
an inter-office
inter-office memo
memo of of the
the IG, IG, discov-
discov-
ered in
ered in Germany,
Germany, which which outlined
outlined the
the duties
duties of of Chemnyco:
Chemnyco:
“To make
“T0 make on on request
request of of the
the IG
10 visits,
visits, ‘examinations,
”examinations, in- in-
vestigations and
vcstigations and estimates
estimates of of technical,
technical, financial,
financial, industrial,
industrial,
or economic
or economic naturenature of of each
each planned
planned or or existing
existing industry
industry .. .. .. ‘
and to
and to give
give if
if wanted
wanted aa thorough
thorough report
report .. .. ::
“. .. .. To
“. To examine
examine on on request
request of of the
the IG,IG, American
American patents,
patents,
processes, or
processes, or inventions
inventions fromfrom thethe scientific,
scientific, technical,
technical, com- com-
Iflercial, and
mercial, and practical
practical point
point ofof view
view _.. .. ..
__ “.
“. .. .. If
If the
the interests
interests ofof IG
IG make
make itit necessary,
necessary, to to take
take over
over
the mentioned
the mentioned tasks tasks for
for Canada.”
Canada.” H'
r

»
 _"\-I

THE QUIET
THE QUIET WAR
WAR 103
103
Much of
Much of the
the information
information dug
dug up by Cillemnyco
up by Chemnyco can
can never
never
be
be known.
known. When
When U.U. S.
S. government
government agents
agents came to seize
came to seize the
the
files of
files of Chemnyco,
Chemnyco, shortly
shortly after
after Pearl
Pearl Harbor,
Harbor, they
they found
found
Rudolph Ilgner
Rudolph Ilgner in
in the
the process
process ofof destroying
destroying what
what he
he evi-
evi-
dently considered
dently considered his
his most
most important
important papers._
papers._ Even
Even so,
so,
enough of
enough of them
them were
were left
left to
to be
be of
of interest
interest to
to several
several U.
U. S.
S.
Military Intelligence
Military Intelligence officers.
officers. There
There were
were detailed
detailed reports
reports on
on
more than
more than fifty
fifty countries,
countries, apparatus
apparatus for
for secret
secret communication,
communication,
aerial photos
aerial photos of
of the
the New
New York
York area,
area, and
and aa variety
variety of
of indus-
indus-
trial blueprints‘.
trial blueprints‘. There
There was
was information
information concerning
concerning railroads
railroads
and highways.
and highways. Chemnyco’s
Chemnyco’s collection
collection of
of maps
maps was
was particu-
particu-
larly complete:
larly complete: there
there were
were maps
maps of
of coal
coal mines
mines andelectric
andrelectric
transmission lines;
transmission lines; diagrams
diagrams of
of industrial
industrial installations;
installations; maps
maps
of oil
of oil basins,
basins, refineries,
refineries, pipe
pipe lines,
lines, and
and oil
oil tanker
tanker routes;
routes;
there were
there were topographical
topographical maps
maps ofof U.
U. S.
S. shore
shore lines
lines and
and har-
har-
bors; and one map bore the title, “West India Islands and the
Approaches to the Panama Canal.”
As stated
As stated earlier,
earlier, IG’s
IGy’s central
central office
office in
in Berlin
Berlin for
for collecting
collecting
foreign intelligence
foreign intelligence was
was the
the statistical
statistical section
section (known
(known as as
“VOWI”) of
“VOWI”) of NW
NW 7,7, under
under the
the direction
direction of
of the
the itinerant
itinerant sta-
sta—
tistician Reithinger.
tistician Reithinger. Rudolph
Rudolph Ilgner
Ilgner' channeled
channeled hishis infor-
infor-
mation directly
mation directly back
back toto VOWI
VOWI andand Reithinger~——and
Reithinger———and thethe
Wehrmacht. Wlien
Wehrmacht. When thethe war
war began,
began, communications
communicetions became
became
more difficult
more diflicult but
but information
information continued
continued to
to go
go through.
through. OnOn
October 11,
October 11, 1939,
1939, Rudolph
Rudolph Ilgner
Ilgner wrote
wrote to
to his
his secretary:_
secretary:
“According to
“According to advice
advice received
received from
from VOWI
VOWI thethe last
last letter
letter
they seem
they seem to
to have
have received
received was
was dated
dated August
August 18th.
18th. Will
Will you
you
please advise Mrs. Conner to use two envelopes in the future
of which
of which one
one is
is to
to be
be addressed
addressed to
to Mr.
Mr. Reithinger,
Reithinger, Berlin
Berlin
_ NW
NW 7,
7, Unter
Unter den
den Linden
Linden 82,
82, Germany,
Germany, and
and this
this envelope
envelope to
to
he placed into another one to the following company:
be
“AR. C.A.
“A.R. CA. Aziende Riunite Colorante -
“Affini S.A.,
“Affini S.A., Milano
Milano 5/6
5/6
“Via Luigi
“Via Luigi Galvani
Galvani 12,
12, Casella
Casella Postale
Postale 3593.
3593. .. .”
.”
After America’s
After America’s entry
entry into
into the
the war,
war, Chemnyco
Chemnyco was
was taken
taken
r

»
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t
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y-———~

104
104 IG FARBEN
IG FARBEN
over
over byby the
the U.
U. 5.S. government
government and and byby April,
April, 194-2,
1942, it had been
it had been
liquidated. But
liquidated. But thethe men
men who who had had operated
operated Chemnyco
Chemnyco re- re-
mained. None
mained. None of of them
them waswas molested throughout the
molested throughout the war.
war.
Rudolph Ilgner,
Rudolph Ilgner, forfor example, temporarily retired
example, temporarily retired fromfrom
business and
business and operated
operated his his farm, Rudlyne, near
farm, Rudlyne, near Canaan,
Canaan, Con- Con-
necticut. Ilgner
necticut. Ilgner was was born
born in in Cologne.
Cologne. He He fought
fought in in World
World
War l,
War I, received
received Iron Iron Crosses
Crosses of 0f the
the first
first and
and second
second class.
class.
Later he
Later he was
was in in the
the Free
Free Corps
Corps fighting
fighting in in the
the lower
lower Rhine-
Rhine-
land. He
land. He served
served his his business
business apprenticeship,
apprenticeship, with with aa Berlin
Berlin
bank and
bank and oneone of of the
the IG
IG firms.
firms. ThenThen in in 1923
1923 he ,he was
was sent
sent toto
New York,
New York, and and by by 1930
1930 had had become
become an an American
American citizen.
citizen.
His entire
His entire business
business career
career was was spent
spent in in chemical
chemical firmsfirms affili-
affili-
ated with
ated with IG 1G Farben.
Farben. He He became
became the the head
head of of the
the -“statistical
“statistical
unit” of
unit” of American
American IG IC (it
(it may
may be be noted
noted that
that Reithinger’s
Reithinger’s sec- sec-
tion of
tion of Berlin
Berlin NW NW 77 was was also
also called
called “the“the statistical
statistical depart-
depart-
ment”) and
ment”) and in in 1937
1937 he he transferred
transferred over over toto Chemnyco
Chemnyco as as vice-
vice-
president with
president with his his whole
whole unit.
unit.
Ilgner was
Ilgner was aa successful
successful and and accepted
accepted member
member of of the
the busi-
busi-
ness community.
ness community. The The warwar interrupted
interrupted his his services
services forfor IG IG
but as
but as peace
peace slowly
slowly took
took shape
shape there
there was
was nothing
nothing to to prevent
prevent
his return
his return to to American
American business
business life.life.
When American
When American forcesforces took
took upup the
the occupation
occupation of of Germany,
Germany,
IC Farben’s
IG Farben’s role role asas aa war-maker
war-maker was was already
already clearly
clearly under-
under-
stood. To
stood. To eliminate
eliminate IG IG and
and its its influence
influence was was anan established
established
part of
part of American
American policy.
policy. Everything
Everything discovered
discovered in in the
the course
course
of investigation
of investigation in in Germany
Germany reinforced
reinforced this this policy
policy and and
demonstrated that
demonstrated that IGIG and
and itsits ranking
ranking personnel
personnel would
would havehave
to be
to be brought
brought as as war
war criminals
criminals before
before aat Nuremberg
Nuremberg tribunal.
tribunal.
And yct——lG
And yct-—IG leadersleaders in in the
the United
United States,
States, including
including men men
implicated in
implicated in direct
direct military
military intelligence
intelligence operations
operations against
against
their adopted
their adopted country,
country, satsat out
out the
the war
war in in apparent
apparent security--
security———
safe, comfortable,-and
safe, comfortable,-and still still eminently
eminently respectable.
respectable.

In
In most
most countries
countries where
where 10
IG did not set
did not set up
up special
special intelli-
intelli-
gence
gence agencies like Chemnyco,
agencies like Chemnyco, NW
NW 77 was
was represented
represented byby
., '
n---_
m-.'-.,_
=_ \-
—_,._.
 THE QUIET
THE QUIET WAR
WAR 105
I05
special agents
special agents called
called I/erbindungsmaenrzer.
Verbindungsmaenner. These These men
men were
were w
generally well-establishedsalesrepresentatives
generally well-established’saleserepresentatives of of IG
IO whose
whose
spy
spy work
work could
could bebe carried
carried on on under
under thethe cloak
cloak ofof everyday
everyday
business. To
business. To assure
assure their
their interest
interest in in the
the job
job they were paid
they were paid -
extra sums
extra sums of of money
money directly
directly from Berlin.
from Berlin.
Part of
Part of the
the work
work ofof the
the special
special agents
agents was
was business
business routine;
routine;
for example,
for example, they
they made
made surveys
surveys of of conditions
conditions before
before the
the IG
IG
would undertake
would undertake construction
construction of of new
new foreign
foreign plants.
plants. In
In part
part
also they
also they were
were responsible
responsible for for keeping
keeping IG IG informed
informed on on poli-
poli-
tical developments.
tical developments. And And part
part ofof their
their work
work waswas straight
straight mili-
mili-
tary espionage.
tary espionage. Reports
Reports from
from Latin
Latin America
America included
included details
details
on port
on port facilities,
facilities, ship
ship and
and convoy
convoy movements,
movements, shipments
shipments of of
war materials,
war materials, construction
construction of of key
key bridges
bridges and and highways,
highways,
and development
and development of of air
air and
and naval
naval bases.
bases.
It was
It was inevitable
inevitable that
that IG
IG Farben’s
Farben’s efficient
efficient system
system ofof inter-
inter-
national agents
national agents would
would be be used
used by by the
the Nazi
Nazi Party
Party for
for its
its
political work
political work abroad.
abroad. The The Nazi
Nazi foreign
foreign agency
agency waswas called
called
the Aaslartds-Organization
the Auslands-Organization or or “AO.”
“A0.” ToTo start
start with
with there
there was
was
friction between
friction between the the well-established
well-established Farben
Farben agents
agents and
and the
the
newcomers of
newcomers of the
the AO.
A0. But
But matters
matters were
were soon
soon enough
enough taken
taken in
in
hand by
hand by the
the energetic
energetic Max
Max Ilgner.
Ilgner. He
He was
was able
able to
to report
report onon
returning to
returning to Germany
Germany fromfrom Latin
Latin America
America in in 1936
1936 that:
that:
“. .. .. cooperation
“. cooperation with
with the
the German
German authorities
authorities during
during the
the
last years
last years .. .. .. has
has improved
improved and
and been
been intensified,
intensified, and
and also
also
in particular
in particular the the cooperation
cooperation with
with the
the foreign
foreign organization
organization of of
the Nazi
the Nazi Party
Party is
is continually
continually developing
developing in
in aa more
more and
and more
more
positive direction.”
positive direction.”
The reason
The reason for
for the
the more successful
more successful cooperation
cooperation with
with the.
the
Nazi Party
Nazi Party waswas made
made clear in
clear in another
another report
report by
by Ilgner
Ilgner the
the
next year,
next year, in in 1937:
1937:
“. .. .. in
“. in no
no case
case will
will men be
men he sent
sent to
to our
our foreign
foreign companies
companies
who do
who do not
not belong
belong toto the
the German
German Labor
Labor Front
Front and
and who
who do
do
not possess
not possess aa positive
positive attitude
attitude toward
toward the
the New
New Order.
Order. The
The
men who
men who are
are to
to be
be sent
sent should
should make
make it
it their
their special
special duty
duty to
to
represent National
represent National Socialistic
Socialistio Germanhood
Germanhood .. .. .. upon
upon enter-
enter-
 _. __ __ ____.__..._._._ _____ _ _ __.._._v_____.__. .__ _ W _. _ _ __, __,_.___ _
We

06
11 O6 IG FARBEN
IO FARBEN

companies they
our companies
ing our
ing are to
they are contact with
make contact
to make (local
the (local
with the
branch of
branch of the Party) .. .. .. and
the Party) participate in
regularly participate
and regularly their
in their
meetings. .. .. The
meetings. The sales should see
department should
sales department see to it that
to it an
that an
appropriate amount
appropriate amount of national socialistic
of national literature is
socialistic literature given
is given
to them.”
The services
The which IG
services which performed for
IG performed for the Nazis abroad
the Nazis were
abroad were
many. On
many. On the theory that
the theory once aa German
that once German always German,
always aa German,
concerns in
business concerns
business foreign lands
in foreign expected to
were expected
lands were help
to help
culture by
German culture
preserve German
preserve building up
by building German in-
purely German
up purely in-
stitutions. IG
stitutions. IG contributed liberally to
contributed liberally help build
to help German
build German
schools, German
schools, 'churches, German
German churches, hospitals, and
German hospitals, German
and German
throughout the
clubs throughout
social clubs
social world. IG
the world. made heavy
also made
IG also contri-
heavy contri-
butions to
butions to finance Party cells
Nazi Party
finance Nazi found in
Records found
abroad. Records
cells abroad. in
main files
the main
the files in Frankfurt indicated
in Frankfurt between 194-0
that between
indicated that 1940 andand
194.2 aa sum
and 1942
and sum of ten million
nearly ten
of nearly marks was
million marks sent to
was sent Nazi
to Nazi
foreign agents
foreign through IG’s
agents through Bayer agencies
IG’s Bayer alone.
agencies alone.
When it
When came to
it came fostering Nazi
to fostering propaganda Farben
Nazi propaganda Farben used its
used its
own influence
own directly without
influence directly bothering about
without bothering intermediaries.
about intermediaries.
If aa foreign
If newspaper was
foreign newspaper unfriendly to
was unfriendly Nazi State
the Nazi
to the State IGIC
withheld its
withheld advertising. IG
its advertising. one of
forced one
IG' forced of its American
its American
Products, to
Sterling Products,
satellites, Sterling
satellites, follow the
to follow policy. In
same policy.
the same In
1938 aa letter
1938 went from
letter went IG to
from IG to Sterling demanding that
Sterling demanding that in the
in the
advertising contracts
future advertising
future contracts should contain—
should contain-—
“. .. .. aa legal
“. legal clause whereby the
clause whereby contract is
the contract immediately
is immediately
canceled if
canceled overnight the
if overnight of the
attitude of
the attitude paper toward
the paper Ger-
toward Ger-
should be
many should
many changed.” To
he changed.” added weight
give added
To give Weight to this
to this
admonition, the
admonition, letter was
the letter to aa Sterling
sent to
was sent Sterling official who was
official who was
of German
of origin so
German origin so that he “.
that he know the
would know
“. .. .. would in
Party in
the Party
Germany was watching him and could watch his step.”
One of
~, One of IG Farben’s most
IG Farben’s propaganda. stunts
ambitious propaganda
most ambitious in
stunts in
the service
the service of Reich was
the Reich
of the hiring of
the hiring
was the of Mr. Ivy Lee.
Mr. Ivy Ivy
Lee. Ivy
Lee, it
Lee, remembered, was
be remembered,
Will be
it will was anan American pioneer in
American pioneer the
in the
art of
art high-pressure public
of high-pressure relations. He
public relations. himself
devoted himself
had devoted
He had
to the
to the difficult task of
dillicult task changing the
of changing accepted picture
the accepted of John
picture of John
Rockefeller from
D. Rockefeller
I), of aa tight-fisted
that of
from that tight-fisted industrial buc~
industrial buc-

Q
 , 1

THE QUIET WAR I ‘07

107
(according.. to
caneer (according
cancer to Ida Tarbell and
Ida Tarbell Lincoln Steffens)
and Lincoln Steffens) to to.
that of
that of an upright 01d
an upright old philanthropi
philanthropist doing good
st doing works with
good works with
(according to
dimes (according
shiny dimes
shiny Lee). In
Ivy Lee).
to Ivy course of
the course
In the Con-
of aa Con-
investigationn in
gressional investigatio
gressional 1934 (by
in 1934. (by the Dickstein Commit-
the Dickstein Commit-
tee),’it
tee),'it developed
developed that that LeeLee hadhad been been diligently
diligently spreading
spreading
pro-Hitler
pro-Hitler propaganda
propaganda. . ‘i
'Lee
'Lee defended
defended himself himself by by sqying
saying that that hehe had
had notnot been
been hired
hired
by the
by State, but
Nazi State,
the Nazi but by by IG Farben. In
IG Farben. truth, IG
In truth, IG had acted
had acted f

as
as the
the intermediar
intermediary y forfor Germany.
Germany. Possibly Possibly Lee Lee had
had been
been
thought of
thought of as result of.
as aa result close working
the close
of. the relations between
working relations
I
between
IG
IG and
and Standard
Standard Oil Oil of of New
New Jersey:
Jersey: what what was
was good
good enoug11
enough
for the
for Rockefellerss was
the Rockefeller was good enough for
good enough for 10 Farben. In
IG Farben. In
any
any case,
case, Max
Max Ilgner
Ilgner hired hired Lee,
Lee, brought
brought him him toto Germany,
Germany, and and
introduced
introduced him him in in the
the highest
highest government
governmental al circles
circles toto make
nlalifi
his work
his easier. As
work easier. As Lee testified: “.
himself testified:
Lee himself Dr. Ilgner
“. .. .. Dr. Ilgner
introduced
introduced me me to to various
various Ministers.
Ministers. He He went
went with
with me
me to to see
I
see I
Goebbels.
Goebbels. .. .; .; Von
Von Papen,
Papen, the the Vice-Chance
Vice-Chancellor; llor; VonNeurath
Von Neurath, ,
the Foreign
the Minister; Schmidt,
Foreign Minister; Schmidt, the the Minister
Minister of Eco-
of Eco-
nomics. . .” -» Ill

There is
There is no record of
no record much good
how much
of how good Ivy Lee did
Ivy Lee did for the
for the If
‘_|

Germans. But
Germans. But at least, he,
at least, and IG
he, and IG Farben, tried. He
Farben, tried. testified
He testified
having met
to having
to Hitler and
met Hitler having given
and having relations ad-
public relations
given public ad-
vice to
vice various high
to various officials. He
high officials. admitted having
He admitted received,
having received,
and used,
and piles of
used, piles of Nazi literature including
Nazi literature anti-Semitic
including anti-Semitic
propaganda. As As he he said himself, perhaps
said himself, perhaps with note of
With aa note of
|
propaganda.
depression: “We
depression: “We have received books
have received books and pamphlets and
and pamphlets and
newspaper clippings
newspaper clippings and documents, world
and documents, end.”
without end.”
world without I _.:_»._-: _.: _ ._ .:_.:__._,_ .4_-:._ .+.a,:
1.,
Pressure through
Pressure through cartels, camouflage of
cartels, camouflage holdings, use
of holdings, use ofof ||

spies, support
spies, support of of Nazi spreading of
agents, spreading
Nazi agents, propaganda for
of propaganda for alt

Germany—u—in all
Nazi Germany——-—in
Nazi all these ways IG
these ways Farben had
IG Farben done its
had done its -|i

bit Hitler’s quiet

for Hitler’s
bit for quiet war. perhaps the
But perhaps
war. But connection
closest connection
the closest
to the war
to the effort was
war effort was through specially created
through aa specially Liaison
Army Liaison
created Army
Office, called
Office, Vermittlungsstelle W.
called Vermittlungsstelle W. Dr. Schnitzlcr gave
von Schnitzler
Dr. von gave (‘I

the background
the fer the
background for organization of
the organization the new
of the office:
liaison office:
new liaison ‘.‘l
t.
r

1934 the
“In 1934 Wehrmacht became
the Wehrmacht and with
important and
became important in-
With in-
‘It
“In ‘.

It
. ‘r
if
4"’
 108
'|Q3 IG FARBEN
IG FARBEN

creased tempo after

creased tempo 1936 the
after 1936 became the
Wehrmacht became
the Wehrmacht promi- .
the promi-
factor in
nent factor
nent whole picture.
the whole
in the 1934 aa strong
Since 1934
picture. Since move-
strong move-
investments in
for investments
ment for
ment plants for
our plants
in our commodities of
for commodities decisive
of decisive
importance became
military importance
military more and
became more and more pronounced .. .. ..
more pronounced
1936, the
Since 1936,
Since movement took
the movement took an entirely military
an entirely char-
military char-
acter and
actor and military stood in
reasons stood
military reasons foreground. Hand
the foreground.
in the Hand'
in hand
in hand with the relations
this, the
with this, between IG
relations between and the
10 and Wehr-
the Wehr-
more and
became more
macht became
macht and more intimate and
more intimate continuous
and aa continuous
between IG
union between
union officials on
IG officials one side
the one
on the side and \Vehrmacht
the \Vehrmacht
and the
representatives on
representatives on the other side
the other was the
side was consequence of
the consequence it.”
of it.”
According to
According an IG
to an report of
IG report December, 1935,
of December, func-
the func-
1935, the
Vcrmittlungsstcllc IV—
of Vermittlungsstcllc
tion of
tion W—
“. .. .. is
“. building up
the building
is the up of organization for
tight organization
of aa tight arma-
for arma-
ment in
ment the IG
in the could be
which could
IG which inserted without
be inserted difficulty in
without difficulty in
the existing
the organization. .. .. In
existing organization. of war,
case of
In case war, IG will be
IG will treated
be treated
by the
by the authorities concerned with
authorities concerned armament questions
with armament questions as one
as one
big plant which . . . will regulate itself without without any organi-
any organi-
outside. lI.. .. To
from outside.
influence from
zational influence
zational the field
To the of work
field of work of the
of the
Vermiltlungsstclle IV
Vcrmittlungsstclle belongs .. .. .. the
W belongs continimus collabo-
the continuous collabo-
regard to
with regard
ration with
ration armament and
to armament (be-
questions (be-
technical questions
and technical
authorities of
the authorities
tween) the
tween) the Reich
of the Reich and and the of the
plants of
the plants 1G.”
the IG.”
of this
All of
All this has familiar ring.
somewhat familiar
has aa somewhat On the
ring. On surface
the surface
the arrangement does
the arrangement does not very different
seem very
not seem used
that used
from that
different from
by American
by manufacturers and
American manufacturers and thethe U. S. government
U. S. government during
during
the war.
the war. But are essential
there are
But there differences. IG
essential differences. went to
IG went work
to work
for aa Nazi
for Nazi State which clearly
State which embarking on
was embarking
olearly was aggression
on aggression
aimed at
aimed domination. And
world domination.
at world And there there is significant
also aa significant
is also
difference in
difference time. Close
in time. CO-Operation between
Close co-operation American
between American
government and
government business really
and business dated from
really dated December 7,
from December 7,
1941. In
194-1. Germany it
In Germany began in
it began And this
1934.. And
in 1934-. reasonable
was reasonable
this was
too: for
enough, too:
enough, Germans, the
the Germans,
for the began when
war began
the war Hitler
when Hitler
Chancellor in 1933.
became Chancellor
How seriously
How seriously thethe Army
Army Liaison
Liaison Office
Office was
was taken
taken is indi-
by the
cated by
cated the man as its
picked as
man picked Professor Carl
head. Professor
its head. Krauch
Carl Krauch
was one
was one of
of the outstanding leaders
the outstanding leaders of the IG, a combination
combination of
 THE QUIET
THE QUIET WAR
WAR '' 109
109
scientist and
scientist and administrator
administrator in in the
the old tradition of
old tradition of Bosch
Bosch andand
Duisberg.
Duisberg. Many Many of of the
the technical
technical men men in in IG
IG felt
felt that
that he,
he,
rather
rather than
than Geheimrat
Geheimrat Hermann
Hermann Schmitz,
Schmitz, should
should have
have suc-
suc-
ceeded
ceeded Bosch
Bosch as as president
president of of IO.
IG. Krauch
Krauch proved
proved so so valuable
valuable
that
that he
he was
was put put in
in charge
charge of of all
all construction
construction forfor the
the chemical
chemical
industry
industry under
under Goering’s
Goering’s Four Four Year
Year Plan
Plan and
and remained
remained in in
aa similar
similar post
post throughout
throughout the the war.
war.
As
As aa result
result of of the
the work
work started
started by by the
the Army
Army Liaison
Liaison Ollice,
Ollice,
IG rounded
IG rounded out out its
its full
full program
program of of war
war production.
production. AllAll re- re-
search was
search was handled
handled jointly
jointly with
with Wehrmacht
Wehrmacht otlicers
othcers (al-
(al-
though IG
though IG never
never forgot
forgot to to protect
protect itsits patent
patent rights
rights along
along thethe
way) .. The
way) The War
War Oflice
Office andand IGIG had
had direct
direct dealings
dealings without
without anyany
intervening layers
intervening layers ofof bureaucracy.
bureaucracy. And, And, finally,
finally, IGIC received
received
training in
training in how
how to to carry
carry outout its
its operations
Operations uninterrupted
uninterrupted in in
time of
time of war.
war. Starting
Starting in in 1934-,
1934, the the Liaison
Liaison Oflice
Office arranged
arranged
what were
what were called
called “war
“war games.”
games.” IG IG engineers
engineers andand Wehrmacht
Wehrmacht
officers
officers jointly
jointly setset problems
problems for for each
each plant, showing what
plant, showing what
to do
to do inin case
case Marshal
Marshal Goering’s
Goering’s Luftwaffe
Luftwaffe should
should notnot be be
completely
completely successful
successful and and there
there should
should he be Allied
Allied airair raids.
raids.
Through
Through the the war
war games
games theythey learned
learned where
where toto place
place air
air raid
raid ‘vJ

shelters,
shelters, what
what parts
parts ofof the
the plants
plants could
could and
and should
should he be camow
camou-

,. .. __-_-..1<
flaged,
flaged, what
what werewere the
the most
most vulnerable
vulnerable unitsunits and
and how
how toto pre-
pre-
pare
pare toto replace
replace them.
them. These
These preparations
preparations paid paid off
off handsomely:
handsomely:
through
through all all the
the aerial
aerial bombardment
bombardment IG IG suffered
suffered only
only aa thir-

. __ Tfi‘t
tl1ir- ;.,_.-_.-_ s-1.

teen
teen per cent loss
less in capacity.
per cent in capacity. ~
i
t1
I
t

IG
IG Farben
Farben might
might have
have been
been luke-warm
luke-warm toward
toward Hitler
Hitler in
in . I

the
the early
early days,
days, but
but when
when the
the chips
chips were
were down,’IG
down,’IG led
led the
the
way
way forfor all
all of
of German
German industry
industry in
in giving
giving the
the closest
closest sup-
sup-
port
port to
to the
the Nazi
Nazi State.
State. It
It was
was good
good business
business to
to support
support Hitler
Hitler
fwup
_———up to
to the
the end
end of
of the
the war.
war. The
The wild-eyed
wild-eyed Nazis on the
Nazis on the fringe
fringe
of the Party, the ones who had believed Hitler in his early
.speeches
speeches when
when he
he said
said he
he would
would clip
clip the
the big
big monopolies,
monopolies,
could safely be
could safely be forgotten.'The
forgotten.'The bad manners of
bad manners of the
the Storm
Storm
'Troopers
Tro.0pers counted
counted for
for nothing while the
nothing while profits rolled
the profits rolled in.
in.
1

I
I
 _ __--. ----- . . -—---w. --- v, vv-v- -. _ .---.- -- ------1. . _ -----—:- -——

‘I'l ‘IO
IO 16 FARBEN
IG FARBEN
The truth
The truth was
was that
that Hitler
Hitler understood
understood betterbetter than
than his
his pre-
pre-
decessors in
decessors in the
the German
German government
government what what IG IG was
was doing
doing toto
make
make Germany self-sullicient in
Germany self-sullicient in time
time of war. He
of war. He gave
gave thethe
chemical trust
chemical trust even
even better
better support
support thanthan it it had
had received
received from
from
its own
its own first
first choice
choice forfor Chancellor,
Chancellor, Bruening.
Bruening.
For example,
For example, there there was
was the the case
case of
of synthetic
synthetic oil oil and
and gaso-
gaso-
line. Here
line. Here was was aa crowning
crowning achievement
achievement of of the
the IG.
IG. Bruening
Bruening
supported the
supported the IGIG synthetics
synthetics with with aa tariff.
tariff. ButBut even
even that
that was
was
not enough.
not enough. The The cost
cost ofof the
the experiments
experiments had had run
run into
into millions.
millions.
Natural. gasoline
Natural gasoline was was cheap
cheap and and the
the synthetic
synthetic was was bringing
bringing
poor returns.
poor returns. In In 1932
1932 the the directors
directors of of IGIG had
had to to consider
consider
abandoning the
abandoning the whole
whole project.
project. At At this
this point
point two
two of of the
the best-
best-
known Nazis
known Nazis in in the
the lGIC leadership,
leadership, Drs. Drs. Buetefisch
Buetefisch and and Gat-
Cat-
tineau, were sent on a mission to Hitler. He received them
well, assured
well, assured themthem thatthat synthetic
synthetic gasoline
gasoline fittedfitted into
into his
his pro-
pro-
gram; after
gram; after he he became
became Chancellor
Chancellor he he saw
saw to to it
it that
that the
the tariff
tariff
on gasoline
on gasoline was was still
still further
further raised.
raised.
'By two
‘By two of of his
his accomplishments
accomplishments Hitler Hitler endeared
endeared himself
himself
not only
not only to to the
the men
men of of Farben
Farben but but toto all
all major
major employers.
employers.
There were
There were no no strikes
strikes in in Hitler’s
Hitler’s Germany;
Germany; within within aa year
year
after Hitler
after Hitler tooktook over
over there
there was Was nono organized
organized labor labor move-
move-
ment—only aa heroic
ment——only heroic but but dwindling
dwindling underground
underground which which hadhad
ceased to
ceased to be
he aa factor
factor by by the
the time
time the
the war
war started.
started. Also,
Also, there
there
were no
were no longer
longer any any problems
problems of of wages
wages and and working
working condi-
condi-
tions. Real
tions. Real earnings
earnings stayed
stayed at at aa low
low level
level after
after 1933.
1933. TheThe
sixty-hour week became common, even before the war started;
here finally
here finally waswas thethe answer
answer to to the
the cry
cry ofof Stinnes
Stinnes and and Schacht
Schacht
and Duisberg
and Duisberg in in the
the 1920’s
1920’s for for more
more workwork and and less
less social
social
security. One result of the longer work Work week was a jump, jump in
the industrial accident rate, from thirty-four per thousand
workers in-1932 to sixty in 1938. What employers would
not gladly
not gladly have
have split
split their
their profits
profits for a chance to operate with-
out worry
out worry overover strikes
strikes andand wagewage negotiations?
negotiations? Hitler gave it
free. They had only to produce for a war which would
to them frec.
be profitable
be profitable in in itself.
itself. ‘‘

I I

'1' " W "$1: .\

 THE QUIET
THE QUIET WAR
WAR ' '' ia 11 1I
11
In the
In the period
period of
of economic warfare under
economic warfare under Hitler IG Farben
Hitler IG Farben
reached
reached its
its full
full scope
scope of
of production.
production. Starting
Starting with dyes, the
with dyes, the
IG
IG had
had moved
moved intointo heavy
heavy or or industrial
industrial chemicals,
chemicals, into
into nitrate
nitrate
, fixation,
fixation, into
into synthetic
synthetic 'oil‘oil and
and rubber,
rubber, photographic
photographic materials,
materials,
drugs,
drugs, and
and explosives.
explosives. In In the
the process
process IG IG had
had become
become aa big big
producer
producer of of coal
coal and
and other
other basic
basic materials.
materials. NowNow in in the
the last
last
phases
phases of of preparation
preparation for for World
World War War II,II, 10
IG found
found stillstill
further
further fields.
fields. As As was
was natural,
natural, 10 IG took
took the
the lead
lead inin making
making
plastics.
plastics. It
It entered
entered the the field
field of of light
light metals,
metals, tripling
tripling its
its mag-
mag-
nesium
nesium production
production in in six
six years,
years, from
from 1935
1935 toto 1941. J
1941. I

Back
Back inin the
the 1920’s
1920’s Professor
Professor BoschBosch had had had
had to
to worry
worry about
about
the
the source
source ofof capital
capital to to support
support his his new
new developments.
developments. Those
t
Those I

days
days were
were gone.
gone. In In the
the first
first ten
ten years
years of of Hitler’s
Hitler’s reign,
reign, from
from
1933 toto 194-3,
194.3, IGIG was
was ableable toto invest more than
than four
four billion
billion
I
1933 invest more
marks in
marks in new
new plants
plants or or expansion
expansion of of old
old ones.
ones. A A great
great deal
deal of of ‘ I

the
the capital
capital was
was putput up
up by by the Nazi government.
the Nazi government.
All
All dreams
dreams were
were coming
coming true. true. Carl
Carl Duisberg
Duisberg hadhad talked
talked forfor I
I

years about co-operation between industry and agriculture, 1-:

and
and greater
greater production
production on on farms.
farms. NowNow Hitler
Hitler brought
brought forward
forward E
I

his
his program
program for for making
making GermanyGermany as as nearly
nearly self-sufficient
self-sufficient in in I
lg
food
food production
production as as possible.
possible. More More intensive
intensive farm
farm production
I1

production '|

meant more fertilizer; more fertilizer meant more nitrates

snatched
snatched from
from thethe air
air by
by the
the IG
IG Leuna
Leuna works
works and
and more
more profits
profits
for
for IG,
IG, as
as foreseen
foreseen by by Duisberg.
Duisberg. I
;>
‘.

To
To aa statistical
statistical eye, the prosaic
eye, the prosaic balance sheet of
balance sheet of 10 Farben
IG Farben it

for the years from 1932 to 1943 194-3 reads like a victory procla- ‘
mation.
mation. IG IG was
was always
always aa money-maker.
money-maker. Even
Even inin the
the worst
worst
years
years of
of the
the depression
depression it it showed
showed profits.
profits. But
But after
after 1932
1932 IGIG
hit a bonanza. Each year sales and profits profits took
took another
another big
big
jump. The
jump. The gross
gross profit
profit for
for 1943
1943 was more than sixteen times
as
as great as it
great as it had
had been
been in
in 1932. IG Farben was a giant corpo-
ration
ration when
when it was first
it was first organized
organized in the middle of the 1920’s,
yet the gross profits of eight hundred and twenty-two million
marks
marks in 1943 were
in 194-3 were greater
greater than
than the
the total
total capitalization
capitalization of
of .
IG in
IG in 1925.
1925. A_
 -w —— as v-__~_

'l'l '|2
12 [G
[G FARBEN
FARBEN
And
And the
the best
best was
was still to come.
still to come. Until
Until the
the shooting
shooting war
war began,
began,
was somewhat
business was
business bound by
somewhat bound by the practices of
normal practices
the normal buy-
of buy-
ing
ing and
and selling.
selling. But
But after
after the
the Wehrmacht
Welirmaclit started
started its
its triumphal
triumphal
march,
march, the
the whole
whole continent
continent ofof Europe
Europe laylay open
open for
for outright
outright
plunder.
plunder. AtAt the
the high
high water
water mark
mark ofof Nazi
Nazi conquest,
conquest, Dr.Dr. Duis-
Duis-
berg’s
berg’s dream
dream of of aa closed
closed economic
economic bloc
bloc from
from Bordeaux
Bordeaux to to
Odessa
Odessa became
became aa fact.
fact.
I

--.1,
z.-,’,’~-*"_,_'-' , , .
1' ‘A
 7
7
Bloody Harvest
Bloody Harvest

There were
There celebrations in
were celebrations in Germany
Germany when
When the
the Munich
Munich Pact
Pact
was signed
was signed on on the
the last
last day
day of
of September,
September, 1938.
1938. Without
Without firing
firing
aa shot,
shot, Hitler
Hitler hadhad won
won from
from Messrs.
Messrs. Chamberlain
Chamberlain and and Dala-
Dala-
dier the
dier the strategic
strategic gateway
gateway to to all
all of
of Central
Central andand Eastern
Eastern
Europe—thc border
Europe-—the border areas
areas ofof Czechoslovakia.
Czechoslovakia. The The next
next day
day
' troops
troops under
under Colonel
Colonel General
General vonvon Leeb
Leeb crossed
crossed the
the Bohemian
Bohemian
Forest to
Forest to seize
seize the
the prize.
prize.
Among the
Among the telegrams
telegrams of of congratulations
congratulations which
which poured
poured into
into
the Chancellery
the Chancellery in in Berlin
Berlin was
was one
one from
from the
the President
President ofof IG
IO
Farben. It
Farben. It read:
read:
“To the
“To the Fuehrer
Fuehrer and and Reichschancellor
Reichschancellor Adolph
Adolph Hitler,
Hitler,
Berlin: Profoundly
Berlin: Profoundly impressed
impressed by by the
the return
return ofof Sudeten-
Sudeten-
Germany to
Germany to the
the Reich
Reich which
which you,
you, my
my Fuehrer,
Fuehrer, have
have achieved,
achieved,
the IG
the IG Farbenindustrie
Farhenindustrie A.G. A.G. puts
puts an
an amount
amount ofof half
half aa million
million
Reichsmarks at
Reichsmarks at your
your disposal
disposal for
for use
use in
in the
the Sudeten-German
Sudeten-German
territory. (signed)
territory. (signed) Hermann
Hermann Schmitz.”
Schmitz.”
Schmitz was
Schmitz was notnot playing
playing courtier
courticr when
when hehe said he was
said he im-
was im-
pressed.
pressed. A A week
week before the Pact
before the Pact ofof Munich
Munich waswas signed
signed hehe had
had
concluded
concluded aa deal deal with the Nazi
with the Nazi government whereby IG
government whereby IG
. I 113
H3
\‘
'i__,_ -~ 1- --—---T
fi w i--—r--——'—--—-—---—~Y""-'-— ~~v
".wr‘. tWWWvVfi—fi—v

114
H4 . IG FARBEN ‘
[6
would
would take
take control
control of
of the most important
the most important dye works in
dye works in Czecho-
Czecho-
slovakia. The
slovakia. The 500,000
500,000 RM
RM was
was not
not aa purchase
purchase price,
price, hardly
hardly
even aa bribe.
even bribe. AA week
week after
after the
the troops
troops moved
moved in, an IG
in, an IG man
man
was
was in
in charge
charge of
of the
the Czech
Czech dye
dye works.
works.
For
For German
German Big
Big Business
Business Vforld
V/orld War
War IIII was
was aa chance
chance for
for
plunder
plunder on
on aa scale
scale without
without precedent in history.
precedent in On this
history. On this point
point
the teamwork
the teamwork with
with the
the Army
Army could
could not
not have
have been
been better.
better. As
As
aa spokesman
spokesman for
for the
the German General Staff
German General Staff wrote:
wrote:
“The enemymust
“The enemy‘must no longer be able to produce;'he
produce;’he must no
longer plague our
longer plague our lives With renewed
lives with renewed competition;
competition; he must
no longer retain a productive industry capable of waging a
new
new and
and perhaps
perhaps more
more successful
successful war.
war. He
He must
must therefore
therefore be
be
crushed—and
crushed——and his
his productive
productive forces.
forces taken over.” I
On aa summer
On summer day
day in
in 194-5,
1945, with
with the
the War
war over
over and
and the
the Ger-
Ger-
mans left
mans left to
to contemplate
contemplate their bomb-ruined cities and plan
another
another revival,
revival, an
an American officer was buttonholedlon
American officer butlonholed'on the
streets of
streets of Frankfurt
Frankfurt by
by aa director
director of
of IG
IO Farben.
Farhen. The Farben
man was
man was in
in an optimistic mood;
an optimistic mood; many
many of his fellow-directors
had been
had been jailed
jailed for
for questioning;
questioning; he
he had
had been
been overlooked
overlooked and
he thought
he thought he
he saw
saw aa future for himself. The American was
one of
one of the
the team under Colonel
team under Colonel Bernard
Bernard Bernstein
Bernstein investi-
investi-
gating IG
gating IC Farben. The German
German asked
asked him:
him:
“Why do
“Why do you
you keep
keep us shut down? We didn’t do things like
like
that.” And
that.” And he
he grinned.
grinned. “If we had captured this country, the
faotories would be
factories would be going
going faster
faster than
than ever——producing
ever—producing for
for us.”
us."
The Wehrmacht successively
The Wehrmacht successively overwhelmed Austria, Czecho-
slovakia, Franoe, and
slovakia, Poland, Norway, Holland, Belgium, France, and all
all
the
the rest of Central
rest of Central Europe.
Europe. The history of its march was was
written
written in newspaper headlines. The march of the German
in newspaper
industrialists did not get into the newspapers, but
industrialists did but it
it covered
covered
as
as much ground. IG Farben,
much ground. IG Farben, for one outstanding example,
picked up valuable
picked up valuable properties in every country
in every country the
the Nazis eon-
Nazis con-
quered. On this
quercd. On this point
point the
the record Colonel Bern-
record established by Colonel Bern-
stein’s
stein’s investigators
investigators was
was so
so clear Ilgncr,IWho
clear that even Max Ilgncr,'who
never
never admitted
admitted anything he did
did not
not have
have to,
to, said:
said:

I
7 ,, \
 I

I/

BLOODY HARVEST
stooov HARVEST .. j‘ 115
115
“The general
“The general policy
policy of
of the
the Nazi
Nazi government
government in
in respect
respect to
to
the
the conquered-
conquered countries
countries was
was to take as
to take as much
much out
out of
of those
those
countries as
countries as possible.
possible. .. .. IG
IG played
played an
an important
important role
role in
in
adapting the
adapting the industries
industries of
of those
those countries
countries toto the
the purposes
purposes of of
the Nazi
the Nazi war
war machine.
machine. .. .. IG
IG acquired
acquired newnew companies,
companies, aug- aug-
mented its
mented its participation
participation inin other
other companies
companies and and made
made aa tre-
tre-
mendous amount
mendous amount of of new
new capital
capital investments
investments in in the
the conquered
conquered I
I
I
countries.’
countries.”
Another of
Another of the
the Farben
Farben directors,
directors, Dr.Dr. Kuepper,
Kuepper, made made an an
even more pointed
even\more pointed admission:
admission:
“To my
“To knowledge, IC
my knowledge, IG Farben,
Farben, its its directors
directors and
and officers,
officers,
fully
fully approved
approved the the Nazi
Nazi aggression
aggression against
against Poland,
Poland, Czecho-
Czecho-
slovakia,
slovakia, andand France.
France. IGIG profited
profited considerably
considerably from from these
these
4
conquests.”
conquests.” -
In
In general,
general, the record of
the record IO furnishes
of IG examples of
furnishes examples of every
every
major
major crime
crime committed
committed by by the
the Nazis
Nazis 1nin the course of
the course of World
World
War II.
War II. Where
Where thethe individual
individual fascist
fascist soldier
soldier sent
sent home
home every-
every-
thing he
thing he could
could lay
lay hands
hands on on from
from sausages
sausages to t0 shoes,
shoes, IG
IG
grabbed whole
grabbed whole factories.
factories. IG
IG played
played aa part
part in
in sending
sending millions
millions
of slave
of slave workers
workers from
from the
the conquered
conquered countries
countries to'w0rk
to'work in
in
Germany. IG
Germany. IG had
had aa secret,
secret, but
but sufficiently
sufficiently horrible,
horrible, share
share in
in
the operation
the operation of
of the
the ghastly
ghastly murder
murder mills
mills like
like Auschwitz
Auschwitz and
and
Maidanek.
I
Maidanek.
The one
The one Hitlerian
Hitlerian crinie
crirrie which
Which most
most respectacle
respectacle Germans
Germans
decried in
decried in talking
talking toto Americans
Americans was was the
the campaign
campaign of of extermi-
extermi- I

nation against
nation against Jews.
Jews. Perhaps
Perhaps this
this one
one was
was admitted
admitted because
because
it had
it had been
been so
so openlyproclaimed
openly ploclaimed for for so
so many
many years.
years. Invari-
Invari-
ably, Farben
ably, Farben directors
directors whoWho were
were trying
trying to
to give
give themselves
themselves
clean records
clean records inin the
the eyes
eyes ofof the
the Americans
Americans would
would dig dig out
out
of the
of the past
past the
the ease
case of
of' some
some pet
pet .Iew
Jew whom
whom they
they had
had helped
helped toto
escape from
escape from the
the country
country or or stay
stay in
in business
business aa little
little longer.
longer.
Yet in
Yet in spite
spite of
of all
all that,
that, as
as will
will be
be seen
seen inin the
the record
record ofof I

plunder in
plunder in each
each country,
country, IG IG Farben
Farben frequently.
frequently. profited
profited by by the
the
seizure‘bf “non-Aryan”
seizure"'of “non-Aryan” property.
property.

ii
 It I6
16 IG _FARBEN
IG FARBEN
Austria—
Austria——
The taking over
The taking over of Austria had
of Austria been on
had been on the
the program
program of
of
German
German nationalists for many
nationalists for many years
years before
before Hitler. In case
it has
it has been
been forgotten,
forgotten, Hitler’s
Hitler’s stated
stated reason
reason for
for moving
moving into
into
Austria in
Austria in March, 1938, was that the Austrian Nazi Party
was being abused. Whatever the reason, the Nazis were in
Vienna
Vienna to stay. An
to stay. An American
American weekly,
weekly, The New Republic,
indignantly
indignantly proclaimed
proclaimed itit “Hitler’s
“Hitler’s Worst Mistakel”; the
idea was that
idea was that this
this time
time Hitler
Hitler had
had so
so outraged
outraged the feelings of.
of
the
the world
world that
that he could not
he could not get
get away with it. Unfortunately
some years were
some years were toto pass
pass before
before I-Iitler’s
Hitler’s bloodsoaked empire
was
was taken
taken away
away from
from him,
him, and then it was by force of Allied
and then
arms,
arms, aa mile
mile at
at aa time,
time, rather than by the power of pure
indignation.
indignation.
For
For IG
IG Farben the prize
Farben the prize in
in Austria
Austria was
was aa leading
leading chemical
chemical
concern,
concern, the
the Pulverfabrik
Pulvcrfabrik Skoda Werke Wetzler. IGIG had
had been
been
after the Skoda
after the Skoda Werke
Werke Wetzler for some years, but had been
unable to buy out the control of the Austrian concern. The
unable
presence of the Wehrmacht an
presence on Austrian soil ended
ended the
the argu-
argu-
ment.
The procedure
The procedure used
used in
in taking
taking over Skoda
Skoda Werke
Werke Wetzler
Wetzler
was an example of what became
was an example of what became standard practice all over
all over
Europe. The
Europe. The actual
actual control
control of the
of the firm lay with one of the
of the
big Viennese
big Viennese banks, Creditanstalt. Creditanstalt was
was controlled
controlled
by the
by the Rothschild
Rothschild interests. After the Ansehluss the Rothschilds
in turn
in turn were
were controlled
controlled by the higher
higher law
law of Nazidom
of Nazidom which
which
decreed that there was no
decreed that there was no room in Europe for anyone tainted
for anyone tainted
with Jewish
with Jewish blood.
blood. The
The Creditanstalt was taken over by
by the
the
Deutsche Bank
Dcutsehe Bank of Berlin.
Deutsche Bank was one of what were known as
The Dcutsehe as the
the Big
Big
Six German
Six German hanks.
banks. It
It had the
the advantage
advantage of
of being
being big,
big, Ger-
Ger-
man, and safely Aryan. Along
man, with the rest of
of the
the Big
Big Six,
Six,
it did
it did atremendous
atremendous business as a respectable fence in stolen
stolen
property.
Max Ilgner had been entrusted with the negotiations for
Max for

""7""!/-:r\
 HARVEST
BLOODY HARVEST
BLOODY 17
1'l 17
control
control of the Austrian
of the chemical industry.
Austrian chemical the bad
After the
industry. After blood
bad blood
the Rothsehilds
of the
of been cleansed
had been
Rothschilds had the Dcutsehe
by the
cleansed by Bank,
Deutsche Bank,
reported to
he reported
he headquarters that
1G headquarters
to IG management of
“The management
that “The the
of the
and the
Creditanstalt and
Creditanstalt Skoda Werke
the Skoda Wetzler .. .. .. has
Werke Wetzler changed
has changed
.. .. .. We are facing
We are situation.”
new situation.”
facing aa new
finally IG
Now finally
Now able to
was able
IG was authorization from
receive authorization
to receive the
from the
government to
Nazi government
Nazi acquire the
to acquire of Skoda
stock of
the stock Werke
Skoda Werke
The IG
Wetzler. The
Wetzler. negotiators quickly
IG negotiators broadened their
quickly broadened Austrian
their Austrian
They picked
foothold. They
foothold. up several
picked up chemical works,
other chemical
several other liqui-
works, liqui-
few, and
dated aa few,
dated all of
merged all
and merged into aa newly
them into
of them invented
newly invented
concern, Donau-Chemic
concern, A.G. Through
Denau-Chemie A.G. 10
Donau-Chemie, IG
Through Donau-Chemic,
had the
Farben had
Farben Austrian chemical
entire Austrian
the entire in its
industry in
chemical industry hands.
its hands.
Donau-Chemie was
That Donau-Chemic
That built of
structure built
was aa structure of stolen goods
stolen goods
clear. Dr.
was clear.
was Schnitzler described
von Schnitzler
Dr. von transaction as
the transaction
described the as
follows:
IG acquired
“. .. .. IG
“. the Skoda
acquired the Works from
Wetzler Works
Skoda Wetzler the
from the
Bank which
Deutsche Bank
Dcutsehe had acquired
Which had acquired the Skoda Wetzler
the Skoda Works
Wetzler Works
participating with
by participating
by the Nazi
with the Government in
Nazi Government theft. .. .”
in aa theft. .”
was IG’s
It was
It to repay
turn to
IG’s turn Nazis, by
the Nazis,
repay the Austrian
turning Austrian
by turning
chemistry to
chemistry service in
to service war. They
Hitler’s war.
in Hitler’s not only
They not this,
did this,
only did
but they
but greatlyexpanded Austrian
they greatlyexpanded capacity for
Austrian capacity such
making such
for making
essentials as
war essentials
war lubricating oil,
as lubricating high octane
oil, high mag-
gasoline, mag-
octane gasoline,
and chlorine.
nesium, and
nesium, expansion program
The expansion
chlorine. The for ex-
called for
program called ex-
penditure of
Penditure nearly two
of nearly hundred million
two hundred of Whifill
marks, of
million marks, which
about half
about half was up by
put up
was put the Nazi
by the government.
Nazi government.

Cze choslovakia—
Czechoslovakia——
was only
There was
There one major
only one concern in
chemical concern
major chemical Czecho-
in Czecho-
This was
slovakia. This
slovakia. Aussiger Verein
was Aussiger of Prague,
Verein of Prague, fourth largest .
fourth largest
concern in Europe.
chemical concern
chemical company that IG
Europe. It was on this company
set its
set sights when
its sights Hitler began
when Hitler his agitation
began his agitation about the home-
about the home-
Germans in
sick Germans Sudetenland in
Czech Sudetenland
the Czech
in the summer of
the summer
in the of
19388..
directors of IG Farben
Evidently the directors
Evidently accurate
made an accurate
Farben made
estimate of
estimate the intentions
of the of the
intentions of Western Powers.
the Western Months
Powers. M09315
 ,_-.,_____._
1

I18
I 18 , _ IG
[G FARBEN
before the
before the signing
signing of the Munich
of the Pact had
Munich Pact had sent
sent Hitler
Hitler east-
east-
ward with
ward with Chamberlain°s
Chamberlain’s blessing,
blessing, IG
IG called
called aa meeting
meeting with
with
its
its representatives
representatives in in Czech
Czech agencies. In July
agencies. In July aa complete
complete
analysis of
analysis of the
the Aussiger
Aussiger Verein
Verein was
was made,
made, so
so that
that IG
IG would
would
_r be prepared
be prepared to to step
step in
in at
at aa moment’s
moment’s notice
notice when
when thethe Czech
Czech
border was
border was pried
pried open
open with
with British
British and
and French
French approval.
approval.
A week
A week before
before the
the march
march into
into the
the Sudetenland,
Sudetenland, IG IG had
had
successfully completed
successfully completed its
its deal
deal with the Nazi
with the Nazi authorities.’
authorities, Drs.
Drs.
Wurster
Wurster andand Kugler,
Kugler, both
both IG
IG directors,
directors, were
were appointed
appointed com-
com-
missars
missars for
for the
the Aussiger
Aussiger Verein
Verein plants.
plants. And
And within
within aa week
week
after
after the
the annexation,
annexation, Wurster
Wurster and
and Kugler
Kugler were
were placed
placed in
in their
their
new
new jobs
jobs inin the
the Czech
Czech chemical
chemical plants.
plants. IG
IG no
no longer
longer had
had to
to
worry
worry about
about the
the Czech
Czech dye
dye and
and chemical
chemical industries
industries falling
falling
into
into other
other hands;
hands; still
still less
less did
did they
they have
have toto worry
worry aboutabout
Czech
Czech industries
industries staying
staying in in Czech
Czech hands.
hands.
IG
IG took
took aa long
long view
view of
of its
its plunder
plunder operations.
operations. ItIt was
was rarely
rarely
willing
willing toto seize
seize aa company
company gangster
gangster fashion
fashion and
and rest
rest content
content
with mere physical control. IG was a conservative organi-
zation.
zation. Questions
Questions of of title
‘title and
and legal
legal claim
claim might
might be be revived
revived
some
some day,
day, after
after the
the war
war was was over.
over. Therefore,
Therefore, IG IG moved
moved inin
behind
behind the the Wehrmacht
Wehrmacht in in conquered
conquered countries
countries not
not just
ju.St to
to
seize
seize but
but to to buy
buy properties,
properties, on on its
its own
own terms.
terms. -
Drs.
Drs. Wurster
Wurster and
and Kugler
Kugler were
were in
in charge
charge of
of the
the Czech
Czech
company,
company, but
but the
the stock
stock was
was still
still in
in the
the hands
hands of
of Czechs
Czechs and
and
a Belgian group. IG began negotiations aimed at outright
purchase.
purchase. The
The Czech
Czech owners
owners proved
proved stubborn;
stubborn; they
they liked
liked
their
their shares,
shares, or
or perhaps
perhaps they
they saw
saw no
no reason
reason toto stand
stand still
still
while
while they
they were
were being
being robbed
robbed and
and so
so give
give aa legal
legal color
color to
to
the operation. In any case, more pressure was required.
Once
Once again
again IG
IG worked
worked aa squeeze
squeeze play,
play, this
this time
time through
through
another of the
another of the German
German BigBig Six banks, the Dresdner. The
Dresdner Bank brought
Dresdner Bank brought pressure
pressure to bear on the Czech Zivno-
stenka Bank with the threat of having that bank itself per-
stenka Bank
manently taken over
manently taken over by
by the German government. Since the
Zivnestenka
Zivnestenka held a large block of shares of the Aussiger

/.
 BLOODY HARVEST
B_LOODY HARVEST 11 ‘I19
9

Verein, it was
Verein, it was able
able to
to convince
convince the managers of the chemical
to do
concern to
concern business with
do business IG.
with IG.
Concerning the
Concerning the remainder
remainder of of the
the negotiations,
negotiations, Dr. von
commented:
Schnitzler commented:
Schnitzler -~~
“Seldom has
“Seldom has aa great
great international
international economic agreement con-
taining so
taining so many
many clauses
clauses and
and covering
covering so many domains been
concluded so
concluded so speedily
speedily as as this.
this. In
In one
one day the agreement in
principle was
was reached
reached and
I

principle and the

the lump
lump sum was fixed. . . (Within
another month)
another month) the the agreement
agreement and and all
all its bylaws were signed.”
In Czechoslovakia,
In Czechoslovakia, as as in
in Austria,
Austria, IG Farben thoroughly
exploited its
exploited its breakthrough.
breakthrough. Coal
Coal mines
mines and
and other
other dye
dye works
works
were taken
were over making
taken over making it possible to
it possible to organize
organize the entire
the entire
Czech
Czech dyestuffs
dyestuffs industry into an
industry into an IG
IG subsidiary.
subsidiary.

Polandfi
Poland-—— __
In Poland
In Poland there
there were
were three
three dye companies which IG
coveted: Boruta, Wola, and Winnica. Immediately after the
four-week campaign which knocked out the Polish armies IG
took steps
took steps to
to acquire
acquire control
control ofof all
all three.
three. »
It can
It can be
be seen
seen that
thatin1n all
all cases
cases IG Farben was
IG Farben was particularly
particularly
anxious to
anxious to take
take over
over every
every possible
possible dyestuff
dyestulf competitor.
competitor. Dye-
Dye-
stuffs were
stuffs were thethe oldest
oldest andand most
most basic
basic ofof IG’s
lG’s lines
lines of
of pro-
pro-
duction. Year
duction. Year after
after year
year they
they continued
continued to to yield
yield rich
rich profits.
profits.
Emergency war
Emergency war production
production mightmight prove
prove ‘uneconomic
‘uneconomic and and
slacken off
slacken off but
but IG
10 expected
expected its its dye
dye trade
trade to_go
to go on
on forever.
forever
With regard
With regard to to the
the Polish
Polish companies
companies there was another
consideration. The
consideration. The attack
attack on on Poland
Poland had had finally
finally brought
brought
England and
England and France
France intointo the
the war.
war. It
It was
was to to be
be nearly
nearly aa year
year
before there
before there waswas heavy
heavy action
action onon the
the Western
Western front,
front, but,
but,
when it
when it came,
came, IG’s
IG’s old,
old, established
established plants
plants inin western
western Germany
Germany
would be
would be vulnerable.
vulnerable. The The great
great Ludwigshafen
Ludwigshafen plant, plant, for
for
example, was
example, was aa scant
scant thirty
thirty miles from the French frontier.
Not even
Not even thethe Nazis
Nazis expected
expected the the campaignagainst
campaign‘against France France to
to
end as
end as quickly
quickly as as it1
it: did.
did. The
The plants
plants inin Poland
Poland would
would bebe a
good hedge
good hedge against
against any
any risk
risk in
in the
the west.
west.
 120
120 [G FARBEN
IG FARBEN
Negotiations for
Negotiations for the Polish companies
the Polish companies began
began one
one week
week
after the
after the start
start of
of the
the invasion.
invasion. Just
Just two
two days
days after
after the
the fall
fall of
of
Warsaw, the
Warsaw, the Nazi
Nazi Ministry
Ministry ofof Economics
Economics placed
placed two
two IG
IG men
men
in
in charge
charge of
of operations
operations at
at all
all three
three Polish
Polish dye
dye plants.
plants.
Following
Following usual
usual procedure
procedure IGIG now
now moved
moved to
to buy
buy the
the prop-
prop-
erties.
erties. Boruta
Boruta waswas the
the biggest
biggest of
of the
the three
three and
and IG
IG bid
bid first
first
for
for it.
it. But
But this
this time
time there
there was
was aa hitch.
hitch. ‘i
Plunder
Plunder had had become
become aa highly
highly developed
developed system
system in in the
the
Nazi
Nazi State.
State. The
The pay-ofi'
pay-off had
had to
to follow
follow many
many and
and devious
devious
channels.
channels. A A government
government agency
agency known
known as as the
the HTO
HTO acted
acted as as
trustee
trustee for
for the
the stolen
stolen property
property in
in the
the cast;
east; it
it refused
refused to
to sell
sell
the
the Boruta
Boruta works
works to
to IG.
IG. This
This time
time IG
IG was
was dealing
dealing with
with SS
SS
men
men rather
rather than
than bankers.
bankers.
Finally,
Finally, however,
however, inin the
the Summer
Summer of of 1940,
1940, the
the HTO
HTO in-in-
formed
formed IGIG that
that sale
sale of
of Boruta
Boruta would
would beconsidered.
be_considered. It
It took
took
another
another year
year and
and aa half
half of
of negotiations
negotiations before
before the
the sale
sale was
was
completed.
completed. There
There is
is no
no record
record of
of how
how much
much was
was paid
paid to
to whom
whom
to
to grease
grease the
the way,
way, but
but Dr.
Dr. von
von Schnitzler
Schnitzler included
included the
the follow-
follow-
ing instructions in one of his letters:
“Enclosed are
“Enclosed are copies
copies of
of my
my exchange
exchange of
of letters
letters with Dr._
with Dr.
Eichenauer. . . As you know, Dr. Eichenauer
J. C. Eichenaucr. Eichcnauer was highly
instrumental
instrumental inin (getting)
(getting) SS Gruppenfuehrer Greifelt
SS Gruppenfuehrer Greifelt (to
(to
agree)
agree) to
to the
the acquisition
acquisition of ‘Boruta’ for
of ‘Boruta’ for the
the IG,
IG, and
and II there-
there-
fore
fore request
request that
that aa very
very cordial
cordial invitation
invitation be
be sent
sent to
to Dr.
Dr.
Eichenauer.”
Eichenaucr.”
The
The second
second dye
dye plant,
plant, Winnica,
Winnica, presented
presented aa different
different and
and
easier
easier problem.
problem. Supposedly,
Supposedly, Winnica
Winnica was
was owned
owned byby IG’s
IG’s
French
French partner
partner in
inf cartels,
cartels, Kuhlmann.
Kuhlmann. Actually,
Actually, IG already
IG already
owned
owned fifty per cent
fifty per of Winnica
cent of Winniea with
with Kuhlmann
Kuhlmann acting
acting as
as its
its
undercover
undercover agent.
agent. After
After the conquest of
the conquest of Poland,
Poland, IG
IG simply
simply
dropped the cloakand
dropped the cloakand took
took over
over its share of the ownership
in
in its own name.
its own name. When
When France
France joined
joined the
the long
long list
list of
of the de-
_ feated,
feated, and
and Kuhlmann
Kuhlmann became
became aa subsidiary
subsidiary rather
rather than
than aa
partner, IG had
partner, IG had entire
entire ownership
ownership of
of Winnica
Winnica without the in-
convenience
convenience of
of bartering
bartering with
with SS
SS men.
men. .

/' I
 stooov
BLOODY HARVEST 121
The Wola
The Wola company proved easiest
company proved easiest of all to knock over. Von
. Schnitzler
Schnitzler simply
simply pointed
pointed outout toto the
the Ministry
Ministry of Economics
that
that the
the ownership
ownership of of Wola
Wola was non-Aryan. The plant was
shut
shut down,
down, its,
its, equipment
equipment and and materials sold. IG bought some
of
of the
the equipment
equipment for for itself.
itself. The proceeds of the sale dis— dis-
appeared
appeared intointo the
the complicated
complicated channels of Nazi plunder. The
family
family Which
which owned
owned thethe Wola
Wola Company
Company received
received nothing.
nothing. Dr.
von
von Schnitzler
Schnitzler did did not
not testify
testify asas to
to whether
whether he he had
had helped
members
members of of the
the family
family toto escape
escape from the country.
- Only
Only one
one dyedye concern
concern in in Poland
Poland stayed out of IG Farben’s
hands.
hands. It It was
was aa subsidiary
subsidiary of of the
the Swiss
Swiss dye cartel called Pah-
Pab-
janice.
janice. The
The Swiss
Swiss werewere asked
asked if if they
they wanted
wanted toto sell
sell it
it but
but re-
plied
plied that
that they
they did did not.
not. Pabjanice
Pabjanice remained independent
through
through the the war.
war. It It is
is not
not likely
likely that
that Germany
Germany feared
feared the
the
Swiss
Swiss Army.
Army. It It seems
seems probable,
probable, therefore, that the Germans
J respected Swiss property rights in return for other services
rendered
rendered by by thethe Swiss,
Swiss, services
services like
like the
the protection
protection of the
hidden
hidden link between IG Farben and IG Chemie
Chemic and the rich
IG
IG holdings
holdings in
in America.
America.

Frence—
Frarzce—-—
To the
To astonishment of every general staff in the world, in-
the astonishment
cluding
cluding the German, the
the German, the betrayed
betrayed French Army collapsed
after six
after six weeks
weeks ofof attack
attack by the Wehrmacht. Paris,
Paris, the
the won-
won-
derful city of
derful city of light,
light, was
was darkened. The French people pre-
pared
pared for
for their four years
their four years of
of Hitler’s New Order, four
four years
years
of
of hunger,
hunger, degradation,
degradation, and
and painful
painful resistance.
The
The catastrophe
catastrophe of of France
France was
was aa great
great windfall
Windfall for
for IG
IG
Farben.
Farben. There
There was
was only
only one really big chemical concern in
France,
France, the
the Kuhlmann
Kuhlmann Company, but it it was
was second
second only
only toto
IG
IG itself
itself on
on the continent of
the continent of Europe.
Europe. Etablissements Kuhl-
mann was an old partner of the IG in cartels. As Von Schnitz-
As Von Schnitz-
ler
ler remarked, “The
remarked, “The relations between the German and French
chemical
chemical industries
industries have always been somewhat closer
closer than
than
the
the relations
relations between
between the
the other
other producing
producing companies in the
9-----~—--— - - —-——-—
I
I

122
I22 - IG
IG FARBEN
FARBEN
dyestuffs
dyestuffs domain.” the old
Now the
domain.” Now partner,
old partner, fallen on
fallen times,
hard times,
on hard
would be
would taken in
be taken as aa servant.
in as servant.
The plan of
original plan
The original IG was
of IG simply
was simply to see to
to see it that
to it the
that the
French plants were
French plants put to
were put work for
to work the
for the Nazi war
Nazi But
effort. But
war effort.
it was
it was soon that this
evident that
soon evident unnecessary. The
was unnecessary.
this was leaders of
The leaders of
French chemical
the French
the headed by
industry, headed
chemical industry, by Joseph Frossard,
Joseph Frossard,
expressed their
quickly expressed
quickly eagerness to
their eagerness help in
to help in any way. IG
any way. IG
raised its
accordingly raised
accordingly sights. Von
its sights. Schnitzler again
Von Schnitzler again waswas inin
charge of
charge negotiations. As
the negotiations.
of the As he described his
he described his own tactics:
own tactics:
“I thought
“I thought it advisable to
it advisable them [the
let them
to let French] simmer
[the French] simmer in in
own juice
their own
their to wait
and to
juice and wait till they asked
till they for .. .. .. negotiations
asked for negotiations
through the
through the official channel of
official channel the armistice
of the commission.”
armistice commission.”
was disturbed
Frossard was
Frossard by the
disturbed by the rebuff to his
rebuff to his offer to collabo-
oHer to collabo-
An IG
rate. An
rate. wrote the
agent wrote
IG agent description of
following description
the following meet-
of aa meet-
Frossard in
With Frossard
ing with
ing Paris:
in Paris:
intrbduction, during
this introduction,
After this
“. .. .. After during which Frossard
M. Frossard
which M.
F

“.
in his
tears in
had tears
had he started
eyes, he
his eyes, started to talk about
to talk about himself. is
He is
himself. He
at present
at sixty-lwo years
present sixty-two and if
old, and
years old, IG does
the IG
if the does not want
not want
to negotiate
to negotiate with he would
him he
with him would be prepared to
be prepared inimedi-
resign immedi-
to resign
The same
ately. The
ately. to M.
refers to
same refers M. Duchemin. One sees
Duchemin. .. .. One absolutely
sees absolutely
Kuhlmann’s'that Germany
at Kuhlmann’s'that
clearly at
clearly will win
Germany will and
war and
the war
win the
organization of
the organization
that the
that economy will
European economy
the European
of the be made
will be made
the leadership
under the
under leadership of Germany. Frossard
of Germany. to put
offers to
Frossard offers his
put his
industry into
whole industry
whole services of
the services
into the Germany to
of Germany strengthen
to strengthen
chemical potential
the chemical
the continuance of
the continuance
for the
potential for the war
of the against
war against
England. Kuhlmann
England. Kuhlmann wouldwould be be prepared to produce all pr.6- prc- ‘
liminary and
liminary and auxiliary products for
auxiliary products for the IG which
the IG which wouldwould bebe
from the
desired from
desired German side.
the German wants aa confidential
He wants
side. He confidential col- col-
laboration. .. .”
laboration. .” '’
It should
It should be Frossard was
that Frossard
noted that
be noted not the
was not exceptional
the exceptional
collaborationist in
collaborationist industry, While
in industry, dozen or
While aa dozen French-
more French-
or more
men of
men the resistance
of the might be
resistance might trying to
killed trying
be killed one
save one
to save
flier the
Allied flier
Allied leading French
the leading industrialists were
French industrialists willingly
were willingly
the terms
accepting the
accepting terms of Germans. Dr.
the Germans.
of the Schnitzler, from
von Schnitzler,
Dr. von from
own experience,
his own
his that:
testified that:
experience, testified

It
0‘ .- ' - -. . .
’ 2' 1" J I,‘-1
. , " I’ 1"‘
. ' ' » fig 1
. - ,1
I - - J
 1 - z

BLO‘ODY HARVEST
stooov HARVEST -, 123
123
“. .. .. based
“. based uponupon the the ‘slogan’
‘slogan’ of of collaboration,
collaboration, an an inter-
inter-
course
course between
between the the German
German and and French
French industries
industries had had de-
de-
veloped,
veloped, which which practically
practically included
included the the whole
whole Ftench French in- in-
dustry”
dustry. . . p
“. . .I
. I may
may cite
cite the
the name
name of of M.
M. Marcel
Marcel Boussac,
Boussac, the the greatest
greatest
indtistrialist
industrialist 1n in the
the textile
textile field.
field. His
His works
works were
were occupied
occupied to to
aa large
large extent
extent forfor direct
direct oror indirect
indirect orders
orders ofof the
the Wehrmacht,
Wehrmacht,
and
and he he himself
himself was was frequently
frequently with with German
German representatives
representatives
at luncheon and
at luncheon parties. The
dinner parties.
and dinner applies, as
same applies,
The same as II
far as
as far
can judge it,
can judge iron and
the iron
to the
it, to industry, and
steel industry,
and steel and thethe work
work
done by
done by Schneider- Creusot for
Schneider-Creusot Wehrmacht is
the Wehrmacht
for the is publicly
publicly
knownf”
known.” ‘ . ~
Finally IG
Finally allowed the
IG allowed negotiations with
the negotiations with the French chemi-
the French chemi-
industry to
cal industry
cal begin. The
to begin. held, with
were held,
meetings were
The meetings with allall the
the
formality of
formality convention, in
diplomatic convention,
of diplomatic in the German resort
the German resort
town
town of
of Wiesbaden.
Wiesbaden.
The French
The repeated their
French repeated They were
position. They
their position. more than
were more than
willing to help
willing to Nazis, but
the Nazis,
help the hoped they
they hoped
but they be allowed
might be
they might allowed
retain ownership
to retain
to of their
ownership of industry. They
own industry.
their own proposed aa
They proposed
broadening of
broadening cartel pact
the cartel
of the had existed
which had
pact which before the
existed before the
war. The
war. most stuhhorn
The most the French
of the
stubborn 0f industrialists, Duche-
French industrialists, Duche-
was impertinent
min, was
min, enough to
impertinent enough Von Schnitzler
remind Von
to remind of aa
Schnitzler of
speech the
speech had made
latter had
the latter 1937, highly
in 1937,
made in the cartel.
praising the
highly praising cartel.
Von
Von Schnitzler “After all
replied: “After
Schnitzler replied: all that has happened,
that has the’
happened, the
French standpoint regarding
Freneh standpoint validity of
the validity
regarding the the cartel
of the must
cartel must
be
be considered
considered an
an imputation
imputation and
and insult.”
insult.”
In
In the
the end,
end, with
with Frossard
Frossard leading
leading the
the way,
way, the
the French
French ca-
ca-
pitulated.
pitulated. The
The entire
entire French
French chemical
chemical industry,
industry, including,
including,
besides
besides Kuhlmann,
Kuhlmann, the
the St.-Denis
St.-Denis and
and St.-Clair-du-Rh oone com-
St.-Clair-du-Rhoone com-
-IA panies,
panies, was
was organized
organized into
into one
one new
new concern
concern called
called Francolor
Francolor
S.A.
S.A. And
And IG
IG was
was given
given fifty--one
fifty-one per
per cent
cent of
of the
the stock
stock of
of Fran-
Fran-
color.
color. There
There were
were eight
eight members
members on on aa Council
Council ofof Administra-
Administra-
tion
tion for
for Francolor,
Francolor, four
four from
from‘ IG
IG and
and four
four representing
representing the
the
1"rench.
French. As
As aa reward
reward to
to Frossard
Frossard for
for his
his co-operation
co-operation he
he was
was
allowed
allowed toto be
be president
president ofof the
the Council.
Council. TheThe French
French com-
com-
 I24
I24 16 FARBEN
IG

panics gave up everything to the IG subsidiary: their plants,

their
their land,
land, their
their foreign
foreign holdings,
holdings, their
their patents,
patents, and
and processes.
processes.
IG
IG saw
saw to
to it
it that
that all
all Jews
Jews were
were removed
removed from
from positions
positions in
in the
the
Freneh
French companies.
companies. French
French chemicals
chemicals were
were completely
completely re-
re-
moved
moved as
as aa threat
threat to
to IC
IG in
in foreign
foreign markets.
markets.
According
According toto the
the statements
statements of
of IG
IG officials,
officials, the
the least
least valu-
valu-
able parts of the French property to them were the patents
and
and manufacturing
manufacturing processes.
processes. IG
IG had
had maintained
maintained aa safe
safe lead
lead
over
over French
French chemistry
chemistry in
in technical
technical progress.
progress. And
And this
this tech-
tech-
nical
nical advantage
advantage remained
remained an
an active
active danger
danger even
even after
after the
the war
war
was over
was over and
and France
France liberated.
liberated. It
It was
was quite
quite possible
possible that
that the
the
French chemical
French chemical industry,
industry, in
in the
the hands
hands of
of men
men like
like Frossard,
Frossard,
would want
would want toto re-enter
re-enter cartels
cartels to
to get
get the
the benefits
benefits ofof German
German
methods. On
methods. On this
this point
point Von
Von Schnitzler had no doubts. He
stated for
stated for the American investigators:
“I am
“I am certain
certain that
that the
the French
French industry
industry would
would bebe only
only too
too
glad to
glad to resume
resume cartel
cartel relations
relations with
with IG.”
IG.” And
And he
he added
added with
with
perhaps aa note
perhaps note ofof hopefulness,
hopefulness, “.“. .. .. If
If this
this supposition
supposition of
of
mine is
mine is right,
right, II am
am ready
ready to
to elaborate
elaborate more
more fully
fully the
the propo-
propo-
sitions which
sitions which are
are adapted
adapted to the present situation.”

Plunder
Plunder was
was IGIG Farben’s
Farben’s main
main contribution
contribution to
to the
the Nazis’
Nazis’
roster
roster of
of special
special war
war crimes.
crimes. But
But IC
IG also
also had
had aa hand
hand in
in some
some
of
of the simpler and even dirtier crimes.
When the
When the Wellrmacht
Wehrmacht collapsed
collapsed and
and the
the Allied
Allied armies
armies
raced to
raced to the
the meeting
meeting onon the
the Elbe,
Elbe, it
it was
was revealed
revealed to
to the
the world
world
that there
that there were
were as
as many
many as as five
five million
million foreign
foreign slave
slave workers
workers
in Germany.
in Germany. They
They had
had been
been seized
seized in
in their
their homelands,
homelands, sentsent
to Germany,
to Germany, andand held
held at
at forced
forced labor. Many told stories of
labor. Many
being picked up
being picked up in
in trucks
trucks on the streets ofof their
their home
home towns.
towns.
They had no time to pack clothes. They could
They had no time to pack clothes. They could not tell their
families. They
families. They simply
simply disappeared.
disappeared.
IG played
IG its part in recruiting slave labor. For
played its For example,
example,
one of
one of the
the conditions of collaboration
conditions of with the
collaboration with the French
French chemi-
cal industry
cal industry was
was that
that several
several hundred
hundred skilled French workers

~41.-1_:\Q
'4'
BLOODY HARVEST
atooov HARVEST A 125
125

be shipped
he shipped to
to Germany
Germany for for use
use in
in the
the plants
plants there.
there. AA few
few
came willingly;
came wanted to
these wanted
willingly; these in Germany
stay in
to stay after the
Germany after the
war was over.
war was vast majority
The vast
over. The wanted to
majority wanted to go home as
go home as soon
soon
as possible,
as enough indication
fair enough
possible, fair they had
that they
indication that been forced
had been forced
to come. In
to come. some of
In some of the IG plants,
the IG bulk of
the bulk
plants, the the unskilled
of the unskilled
work was done
work was slave labor,
by slave
done by brought in
people brought
labor, people the
from the
in from
farms
farms ofof Central
Central Europe.
Europe. _ . \

And then there

And then matter of
the matter
was the
there was poison gas.
of poison the war
As the
gas. As war
developed, poison
developed, was the
gas was
poison gas form of
one form
the one chemical warfare
of chemical warfare
which was
which used. But
not used.
was not sides were
both sides
But both foriits use.
prepared forits
were prepared use.
On German side,
the German
On the Farben produced
IG Farben
side, IG ninety-five per
fully ninety-five
produced fully per 1
I

cent
cent of
of the
the poison
poison gases.
gases.
It developed
It the course
in the
developed in investigation after
of investigation
course of war that
the war
after the that
content with
been content
not been the types
with the gas Which
of gas
types of had proved
which had
1
IG had not
IG had proved
effective in
effective World War
in World War I. I. Experiments were conducted
Experiments were conducted
with
with new
new and
and better
better types.
types. I

These
These experiments
experiments led
led to
to the
the discovery
discovery of
of at
at least
least one
one gas,
gas,
called Tabun,
called more deadly
Tabun, more any known
than any
deadly than before. According
known before. According
to IG officials
to IG mask of
gas mask
no gas
officials no known design
of known give pro-
would give
design would pro-
tection against
tection Tabun. It
against Tabun. had to
It had be handled
to be entirely in
handled entirely in glass
glass
containers. Tabun
containers. apparently was
Tahun apparently produced in
was produced plant in
in aa plant in
eastern
eastern Cerinany
Germany at at Dyhernfurth.
Dyhernfurth. The The IG
IG men
men whowho were
were 4.__. _:_._.,.

questioned
questioned on
on this
this point
point reported
reported with
with some
some satisfaction
satisfaction that
that 1

the
the plant had been
plant had destroyed before
completely destroyed
been completely the Russians
before the Russians -

came
came in. .I
r
in.
The
The lethal
lethal qualities
qualities of
of Tabun
Tahun were
were first
first tried
tried on
on monkeys.
monkeys.
The
The gas
gas was.
was aa success.
success. But
But for
for the
the well-trained
well-trained scientists
scientists of
of
the
the IG
IG laboratories
laboratories aa test
test on
on animals
animals was
was hardly.
hardly. conclusive.
conclusive.
Under
Under the
the supervision
supervision of of aa Professor
Professor Cross,
Gross, thethe gas
gas was
was tried
tried
again,
again, this
this time
time on
on prisoners
prisoners from
from the
the mass-murder
mass-murder camp
camp at at
Auschwitz.
Auschwitz. ‘i
Much
Much of
of the
the evidence
evidence on
on Tabun
Tabun was
was uncovered
uncovered by
by aa British
British
officer,
oliicer, Major
Major Edmund
Edmund Tilley.
Tilley. In
In the
the course
course of
of his
his investi-
investi-
gation
gation hehe questioned
questioned Dr.
Dr. Fritz
Fritz ter
ter Meer.
Meer. Ter
Ter Meer
Meer was
was one
one
of
of the
the half-dozen
half-dozen most
most important
important men
men in
in the
the 10:
IG: he
he was
was con-
con-
\
/

l
 126
126 ' IG FARBEN

sidered an outstanding
sidered an outstanding scientist;
scientist; he
he had
had been
been in
in charge
charge of
of
the
the reorganization
reorganization of
of the
the entire
entire Italian
Italian chemical
chemical industry; he
industry; he
was
was aa member
member of
of the
the central
central committee
committee of
of the
the IG
IG managing
managing
board
board of
of directors.
directors. The
The following
following is
is quoted
quoted from
from Major
Major
Tilley’s
Tilley’s report
report of
of Ter
Ter Meer’s
Meer’s testimqny:
testimony:
“Ter
“Ter Meer
Meer was
was asked
asked if
if he
he felt
felt that
that experiments
experiments on
on human
human
beings
beings were
were justifiable.
justifiable. He
He argued
argued that
that .. .. .. no
no harm
harm had
had
been
been done
done to
to these
these KZ
KZ [concentration
[concentration camp]
camp] inmates as they
would
would have
have been
been killed
killed anyway.
anyway. .. .”
.”
Unfortunately
Unfortunately for
for Dr.
Dr, ter Meer and Professor Gross and all
the
the Nazis
Nazis big
big and
and small
small who
who had
had aa part
part in
in the
the mass
mass produc-
produc-
tion of murder at Auschwitz, they could not kill enough
peeple.
people.

.1?‘-it -
 88 .
Questions and
Questions and Answers
Answers

Before World
Before World War
War II,
II, to
to have
have gotten
gotten an
an interview with
interview with
one of
one of the
the higher
higher ranking
ranking IG IG Farben
Farben executives
executives would
would
have
have been
been aa minor
minor achievement
achievement of of reporting.
reporting. The
The files
files of
of
IG
IG covered
covered acres
acres of
of floor
floor space,
space, but
but they
they were
were kept
kept tightly
tightly
locked
locked from
from the
the prying
prying eyes
eyes of
of outsiders.
outsiders.
At
At the
the war’s
war’s end,
end, the
the trick
trick of
of interviewing
interviewing was
was mainly
mainly one
one
of
of laying
laying hands
hands on
on the
the Farben
Farben leaders.
leaders. In
In going
going through
through the
the
.- files
files the
the problem
problem was
was to
to find
find the
the important
important documents
documents in
in the
the
chaos
chaos into
into which
which they
they had
had been
been thrown.
thrown.
What
What was
was true
true of
of TC
IG was
was true
true of
of Germany
Germany asas aa whole.
whole. The
The
country
country lay
lay open
open for
for inspection.
inspection. The right of
The right of entry
entry had been
had been
won
won at
at terrible
terrible cost,
cost, but
but at
at least
least it
it was
was finally
finally possible
possible toto look
look
around,
around, pick
pick up
up pieces,
pieces, examine
examine them,
them, and
and determine
determine whatwhat
had made
had made them
them run.
run. The
The chance
chance waswas unique
unique in
in history.
history.
Much more
Much more than
than aa historian’s interest was
historian’s interest was at stake. Ger-
at stake. Ger- .
many had been the outstanding example of the aggressive
war-maker'of
war-makerof the the twentieth
twentieth century. What was
century. What was thethe nature
nature
of the
of fascist beast
the fascist beast which
which charged
charged headlong
headlong to its own
to its own de‘
de-
struction
struction in
in war?
war? The
The answer
answer to that question
to that question might help with
might help with
127
127
i IJ

\
 -

11 28
28 16 FARBEN
IG FARBEN

another matter
another matter rightly
rightly judged
judged to to be
be of
of some
some importance:
importance: how how
prevent further
prevent further war
war in
in aa world
world armed
armed with
with atomic
atomic weapons?
weapons?
This is
This is not
not to
to imply
imply that
that nothing
nothing could
could be
be told
told about
about the
the
Nazis at
Nazis at the
the full-tide
full-tide of
of their
their arrogance
arrogance andand power.
p‘ower. ButBut what
what
could be
could he told,
told, sometimes
sometimes could
could not
not be
he proved.
proved. What
What waswas
proved sometimes
proved sometimes did did not
not convince.
convince. There
There are
are still
still the
the eternal
eternal
problems of
problems of investigation:
investigation: aa multitude
multitude of of facts,
facts, sometimes
sometimes
confusing and
confusing and conflicting;
conflicting; and,
and, an
an almost
almost equal
equal multitude
multitude of of
observers with
observers with axes
axes to
to grind
grind and
and theories
theories strong
strong enough
enough toto
warp every
warp every fact
fact in
in the
the World
World Almanac.
Almanac. But But the
the answers
answers toto
aa few
few basic
basic questions
questions should
should now
now bebe clear
clear enough.
enough.

Who
Who Ran
Ran GermanywHitlcr
Germany———Hitlcr or Big Business
or Big Business or or the
the Army?
Army?
After aa few
After few years
years of the Hitler
of the Hitler regime
regime it it was
was impossible
impossible to to
deny that the
deny that the starting
starting point,
point, in
in 1933,
1933, had been an
had been an alliance
alliance
of the
of the Nazi
Nazi Party,
Party, organized
organized Big
Big Business,
Business, thethe German
German Gen-Gen-
eral Staff,
eral Staff, and
and important
important sections
sections of of the
the government
government bureauc-
bureauc-
racy.
racy. All
All ofof the
the main
main parties
parties to
to the
the alliance
alliance said
said so.so. Robert
Robert
Brady,
Brady, American
American economist,
economist, described
described the the German
German fascist
fascist
state
state as
as “.“. . .. aa dictatorship
dictatorship of of monopoly
monopoly capitalism.
capitalism. Its Its
‘fascism’
‘fascism’ isis that
that ofof business
business enterprise
enterprise organized
organized on on aa monop-
monop-
oly
oly basis,
basis, andand inin full
full commaand
commaand of of all
all the
the military,
military, police,
police,
legal
legal and
and propaganda
propaganda power power ofof the
the state.”
state.”
But
But aa later
later argument
argument ran: ran: toto behe sure,
sure, BigBig Business
Business in in
Germany made
Germany made the decisions which
the decisions which put put Hitler
Hitler in in office.
office. It
It
was aa mistake,
was mistake, stupid
stupid perhaps but honest.
perhaps but honest. Once
Once Hitler
Hitler gotgot in
in
he turned
he turned on on his
his benefactors.
benefactors. He He shoved
shoved them
them aside.
aside. And
And thethe
Nazis
Nazis muscled
muscled in, in, gangster fashion, and
gangster fashion, and took
took over
over much
much of of
business.
business. The The twotwo cases
cases used
used over
over andand over
over to to prove
prove this
this
thesis
thesis are
are those
those of of the
the steel
steel magnate
magnate Thyssen
Thyssen and and the the sprawl-
sprawl-
ing
ing state
state combine,
combine, the the Hermann
Hermann Goering
Goering Werke.
Werke.
Thyssen
Thyssen of of course
course was was one
one ofof Hitler’s
Hitler’s earliest
earliest benefactors.
benefactors.
And
And hehe was
was indeed
indeed thrown
thrown out
out of Germany. There
of Germany. There is nothing
is nothing
in the
in the least
least remarkable
remarkable about this. If
about this. If thereis
therelis anything
anything re-re-
markable, it
markable, it is
is the
the fact
fact that
that there
there were
were not
not many
many more
more eases
cases

., I; ,
- I
 QUESTIONS AND
QUESTIONS AND ANSWERS
ANSWERS 11 29
29
like
like Thyssen’s.
Thyssen’s. What
What business
business community
community in
in the
the world is so
world is so
stable that
stable that it
it has
has no
no “turnover”?
“turnover”? In
In building
building up fortunes
up fortunes
there is
there is constant
constant ebb
ebb and
and flow.
flow. When
When Richard
Richard Whitney
Whitney was
was
sent to jail,
sent to jail, it did not
it did not follow
follow that American banking
that American banking and in-
and in-
vestment had passed into the hands of the courts.
The
The main
main fact
fact in
in the
the Thyssen
Thyssen case
case is
is this:
this: Thyssen
Thyssen was
was aa
maker
maker of of steel,
steel, but
but when
when he
he was
was driven
driven from
from Germany
Germany there
there
was
was nono change
change inin the
the ownership
ownership and
and conttjol
control ofof the
the German
German
steel
steel industry.
industry. The
The Krupps
Krupps remained
remained as as entrenched
entrenched as
as they
they
had
had been
been since
since the
the nineteenth
nineteenth century.
century. The
The great
great trust,
trust,
Vereinigte
Vereinigte Stahlwerker—with
Stahlwerke:-—with which
which Thyssen
Thyssen himself
himself had
had been
been
affiliated—was
affiliated——was in
in essentially
essentially the
the same
same hands
hands in
in 1945
194-5 as
as in
in
1932.
1932. Canny
Canny businessmen
businessmen like
like Flick
Flick simply
simply moved
moved over
over and
and
occupied
occupied aa little
little more
more space
space at
at the
the directors’
directors’ table.
table.
'' As
As for
for the
the Hermann
Hermann Goering
Goering Werke,
Werke, itit was
was aa serious
serious
business
business competitor.
competitor. Dr.
Dr. von
von Schnitzler
Schnitzler of
of the
the IG
IG commented
commented
bitterly
bitterly that
that in
in the
the loot
loot of
of Czechoslovakia
Czechoslovakia the
the pickings
pickings were
were
slim
slim because
because “Goering
“Goering took
took everything
everything over
over for
for himself
himself so
so
that
that there
there was
was no
no opportunity
opportunity of
of the
the IG
IG technicians
technicians to
to develop
develop
anything
anything in
in Czechoslovakia.”
Czechoslovakia.” In
In this
this connection
connection Von
Von Schnitzler
Schnitzler
forgot
forgot to
to .mention
mention that
that IG
IG merely
merely abshrhed
absorbed the
the whole
whole Czech
Czech
chemical
chemical industry.
industry. But
But the
the Goering
Goering Werke
Werke was
was something
something
to
to worry
worry about.
about. After
After the
the seizure
seizure of
of Belgium,
Belgium, IG
IG engaged
engaged in
in
long
long and
and inconclusive
inconclusive conflict
conflict with-
with Goering
Goering for
for complete
complete
control
control of
of the
the important
important Belgian
Belgian Solvay
Solvay Chemical
Chemical Company.
Company.
Arid
And once
once again
again the
the remarkable
remarkable thing was that
thing was that there
there were
were
not
not more cases of
more cases of this
this sort.
sort. The
The sudden
sudden emergence
emergence of of new
new
fortunes
fortunes may
may be
be interesting
interesting but it has
but it has certainly happened
certainly‘ happened
before. In
before. In the
the United States
United States during
during both
both world
world wars,‘
wars,‘ many
many
large fortunes
large fortunes emerged from
emerged from nowhere.
nowhere. Some
Some already
already estab-
estab-
lishedfortunes became very much bigger——as,
lished-fortunes bigger—as, the Kaiser
and Victor
and Victer Emanuel
Emanuel interests.
interests. In
In the
the Goering
Goering case,
case, political
political
influence paved
influence paved the
the way
way for
for business
business success.
success. And
And this
this is
is
not unknown
not unknown in
in the
the United
United States
States either.
either. Mr.
Mr. George
George E.
E. Allen,
Allen,
frequently mentioned
frequently mentioned in
in the
the press
press as
as an
an entertainer
entertainer of
of Presi-
Presi-
iii.» - ~~———— _ ..___ __._._._-, .. ._ -_.-__-.____-,._.-._,.__.,v_,____.___. . _- _..._ __ _ -,,- ._

'l130
30 IG
IG FARBEN
FARBEN
dents,
dents, ran
ran up
up an
an impressive string of
impressive string corporate directorships.
of corporate directorships.
As
As an Goering could
entertainer, Goering
an entertainer, only be
could only compared with
be compared the
with the
Emperor Nero,
Emperor Nero, but
but the
the difference
difference isis not
not essential.
essential.
The same
The same things
things can
can be
be said
said about
about the
the generals.
generals. There
There were
were
some political
some political casualties:
casualties: Von
Von Blomberg
Blomberg and and aa few
few others.
others.
But what nation
But what into and
went into
nation went out of
came out
and came World War
of world War II
II
with
with the all-star line
same all-star
the same up of
line up generals? 0f
of generals? the ranking
Of the ranking
officers
oflicers in the German
in the Army in
German Army the last
in the stages of
last stages war, only
the war,
of the only
Rommel
Rommel and perhaps aa few,
and perhaps Milch, from
like Milch,
few, like the Luftwaffe,
from the Luftwaffe,
were
were not pure--bred Junkers
not pure-bred Junkers. OnceOnce again, the remarkable
again, the remarkable
the upper
on the circles of
upper circles
I

thing
thing is how little
15 how the Nazis
effect the
little ellect had on
Nazis had of
the
the officer
officer corps.
corps. , -
For
For one
one Thyssen
Thyssen there
there were
were dozens
dozens of of the
the most
most important
important
magnates who
magnates retained all
who retained privileges and
their privileges
all their prestige and
and prestige and
prospered. Similarly,
prospered. for every
Similarly, for Von Blomberg,
every Von there were
Blomberg, there were
Von
Von Becks, Von Leebs,
Books, Von Rundstedts, and
Von Rundstedts,
Leebs, Von Von Mannsteins
and Von Mannsteins 4»

who
who preserved
preserved the
the full
full tradition
tradition ofof their
their war-making
war-making class.
class.
As
As far
far as
as profits
profits and
and plunder
plunder are
are concerned,
concerned, IG
IG Farben
Farben is is
a3, demonstration
demonstration of
of how
how well
well German
German BigBig Business
Business fared
fared
under Hitler. As
under Hitler. as special
far as
As far Germany in
go, Germany
privileges g0,
special privileges in '
1945
1945 waswas full
full ofof cases
cases which
which showed
showed thatthat the
the old
old privileges
privileges
were
were flourishing
flourishing without
without check.
check. There
There werewere still
still company
company
towns
towns run‘
run at
at the
the pleasure
pleasure of of aa big
big industrialist,
industrialist, like
like the
the shoe
shoe
manufacturer
manufacturer Richard
Richard Freudenberg
Freudenberg in in Weinheim.
Weinheim. A A Farben
Farben
director
director walking
walking through
through thethe streets
streets of of Frankfurt,
Frankfurt, or or aa
Vereinigte
Vereinigte Stahlwerke
Stahlwerke official
official inin Duesseldorf,
Duesseldorf, was was greeted
greeted
by
by aa succession
succession ofof obsequious
obsequious bows,bows, hat-raisings,
hat-raisings, andand heel-
heel-
clicks.
clicks. -
Frankfurt-on-the-Main
Frankfurt-on-the-Main was was headquarters
headquarters town,town, for for IG IG
Farben.
Farben. Frankfurt
Frankfurt waswas too
too big
big to
to fall
fall in
in the
the ordinary
ordinary category
category
of
of aa company
company town,
town, but
but it
it was
was dominated
dominated by by IG
IG more
more thor-
thor-
oughly
oughly than,
than, say,
say, Pittsburgh
Pittsburgh ever
ever was
was by by the
the Mellons
Mellons or or any
any
combination
combination of of steel
steel makers.
makers. TheThe Frarzlcfurter
Franlcfurter Zeitung,
Zeitung, prob-
prob-
ably
ably Germany’s
Germany’s mostmost internationally
internationally famous
famous newspaper,
newspaper, was was
both
both owned
owned byby Jews
Jews and
and anti-Nazi
anti-Nazi in in policy.
policy. The
The paper
paper waswas
. 4

1
 I

QUESTIONS AND
QUESTIONS ANSWERS
AND ANSWERS 131
131
suppressed,
suppressed, naturally, by the
naturally, by Nazis.
the Nazis. Its editor,
Its Heinrich
editor, Heinrich
Simon, escaped to
Simon, escaped to the United States
the United and was
States and was killed under
killed under
mysterious circumstances on
mysterious circumstances street in
on aa street Washington. The
in Washington. The
Frankfurte
Frankfurter r Zeitung
Zeitung was was started again, not
started again, not by by the
the local
local
Sprenger, but
Gauleiter Sprenger,
Gauleiter by IG
but by IG Farben, operating character-
Farben, operating character-
istically through aa cloaked
istically through headed by
syndicate headed
cloaked syndicate by aa Professor
Professor
Brunner.
Brunner. -
Before Hitler,
Before Schmitz of
President Schmitz
Hitler, President the IG
of the IG had been per-
had been per-
adviser to
sonal adviser
sonal to the Chancellor of
the Chancellor of Germany, Bruening. After
Germany, Bruening. After
Hitler, Schmitz
Hitler, became an
Schmitz became honorary Reichstag
an honorary member and
Reichstag member and
an almost
an high-rankingg IG
equally high-rankin
almost equally IG official, Professor Carl
official, Professor Carl
Krauch, Goering’s trusted'advi
became Goering’s
Krauch, became trustedadviser ser inin the carrying out
the carrying out
of the
of Year Blan-and,
Four Year
the Four on the
later, on
Plan-and, later, industrial problems
the industrial problems
of
of the
the war.
war. ‘_
From all
From evidence the
the evidence
all the state came
fascist state
the fascist into being
came into being
as an alliance
as an Big Business,
of Big
alliance of Army, and
the Army,
Business, the Nazi Party.
the Nazi
and the Party.
The alliance was
The alliance in full
preserved in
was preserved to the
force to
full force If there
end. If
the end. there
was adapting, it
any adapting,
was any was on
it was part of
the part
on the Party Which
the Party
of the which
moved closer
moved business by
to business
closer to its own
purging its
by purging and anti-
radical and
own radical anti-
monopolist
monopolist members.
members. f
\

Would
Would Survivors
Survivors of the 1944
of the 1944 Plot Against Hitler
Plot Against Hitler
Curb [G Farben?
Curb IG Farben?
A favorite
A pastime of
favorite pastime Germany after
in Germany
investigators in
of investigators the
after the
war was
war was the
over was
was over for anti-Nazi
hunt for
the hunt Germans. There
anti-Nazi Germans. were
There were
few, Outstanding
aa few, among them
Outstanding among the few
were the
them were survivors of
few survivors of
the concentration
the camps, blessed
concentration camps, with great
blessed with strength, limit-
great strength, limit-
less
less will,
will, and
and luck.
luck. These
These few,
few, it
it might
might be
be added,
added, suffered
suffered
profound disappointments
brofound during the
disappointments during first year
the first of their
year of their
liberation.
liberation.
most overt
The most against Hitler
move against
overt move been the
had been
Hitler had plot of
the plot of
July
July 20,
20, 1944,
1944-, led
led by
by aa coalition
coalition under
under Dr.
Dr. Goerdeler.
Goerdeler. The
The
Goerdeler
Goerdeler plot
plot therefore
therefore was
was the
the subject
subject of
of analysis
analysis by
by many
many
branches
branches of
of Allied
Allied intelligence.
intelligence. The
The plot
plot had
had come
come reason-
reason-
ably
ably close to success.
close to therefore had
It therefore
success. It important support.
had important support.
"' ‘ ‘ ‘

132
132 II [G FARBEN
IG FARBEN

Presumably some
Presumably some of of the supporters were
the supporters still around.
were still around. Were
Were
they the
they the people
people around
around whom
whom aa new,
new, free,
free, peaceful
peaceful Germany
Germany
could
could be be built?
built?
‘f The
The answer,
answer, flatly,
flatly, is:
is: NO.
NO. TheThe reasons
reasons areare worth
worth giving
giving
because
because the the suviving
suviving supporters
supporters of of the
the Goerdeler
Goerdeler plot plot have
have
an
an excellent
excellent chance
chance of of taking
taking aa place
place among
among the the next
next rulers
rulers
of
of Germany.
Germany. If If this
this occurs,
occurs, IG
IG Farben
Farben in in one
one form
form or or another
another
‘ Will
will probably
probably emerge
emerge again.
again.
Goerdeler’s backers were, indeed, influential. influential. They in-
cluded
cluded members
members of of families
families inin the
the upper
upper circles
circles ofof both
both busi-
busi-
ness
ness and and the
the Army.
Army. TheyThey were,
were, inin short,
short, the
the same kind of
same kind of
people as
people those who
as those Who managed
managed IG Farhen. A
IG Farben. A German
German womanwoman
belonging to
belonging to aa family
family which
which controlled
controlled oneone ofof Germany’s
Germany’s two two
biggest electrical
biggest electrical concerns
concerns waswas employed
employed as as the
the manager
manager of of
aa mansion
mansion setset aside
aside as
as aa billet
billet for
for anan American
American general
general officer
officer
in Berlin.
in Berlin. She
She commented
commented sadlysadly on0n the
the loss
loss of
of blue
blue blood
blood inin
the failure
the failure of
of the
the Goerdeler
Coerdeler plot:
plot:
.. “The
“The ones
ones we
we didn’t
didn’t lose
lose on
on the
the Eastern
Eastern Front
Front we
we lost
lost on
on
the 2Otl1.of
the 20thof July.”
July.”
The people
The people behind
behind the
the July
July 20th
20th plot
plot werewere so so influential
influential
that they
that they would
would have
have stood
stood aa fair
fair chance
chance of of turning
turning Hitler
Hitler
out of
out of office
oflicc at
at any
any time
time after
after 1933.
1933. It It is
is therefore
therefore particularly
particularly
significant that
significant that they
they waited
waited till
till the
the middle
middle of of 194-4,
1944, when
when their
their
chances actually
chances actually were
were poor
poor because
because the the Nazis
Nazis hadhad been
been soso
long entrenched
long entrenched and and many
many of of their
their potential
potential supporters
supporters had had
been frightened
been frightened offof? in
in the
the belief
belief that
that it
it isis bad
bad toto make
make violent
violent
Changes in
changes in the
the midst
midst of
of aa war;
war; _,
They waited
They waited asas long
long as
as they
they did
did because
because up up till
till July,
July, 1944,
1944,
they had
they had been
been satisfied
satisfied with
with Hitler.
Hitler. There
There was was no no sign
sign of
of the
the
plot when the first first attacks were made on Austria, Czecho-
slovakia, and
slovakia, and Poland.
Poland. There
There was
was even
even less
less sign
sign ofof dissatisfac-
dissatisfac-
tion when
tion When thethe Wehrmacht
Wehrmacht had had overrun
overrun all all of of Western
Western Europe.
Europe.
But by
But by the
the middle
middle ofof 194-4-
1944 the
the Nazis
Nazis were
were being
being driven
driven out
out of
of
Russia. And
Russia. And inin June,
June, 1944,
1944, the Anglo-American armies made
good their
good their landing
landing inin Normandy.
Normandy. It It was
was clearclear finally
finally that
that Ger-
Ger-
 r

QUESTIONS AND
QUESTIONS AND ANSWERS
ANSWERS 133
I33
many was
many beaten. Even
was beaten. it was
more, it
Even more, that there
clear that
was clear be
would be
there would
no
no negotiated
negotiated peace
peace with
with the
the Western
Western Allies
Allies which
which would
would en-
en-
able
able Germany
Germanfy to to continue
continue the
the war
war inin the
the East
East with
with new
new support.
support.
And
And so,so, one
one month
month later,
later, the
the Gocrdeler
Goerdeler plotplot was
was tried.
tried. Hitler
Hitler
was
was toto be
be killed,
killed, not
not because
because he he was
was wrong,
wrong, butbut because
because hehe
had
had failed.
failed.
The
The high
high government
government olficials,
OfllCl£tlS, business
business leaders,
leaders, andand Army
Army
officers
officers who
who supported
supported Goerdeler
Goerdeler were were asas ultra-nationalist ic
ultra-n_ationalistic
as
as the
the Nazis.
Nazis. War
War was
was as
as much
much aa natural
natural part
part of
of their
their think-
think-
ing
ing as
as of
of Hitler’s.
Hitler’s. They
They were
were simply
simply aa more
more purely
purely aristocratic
aristocratic
elite, rather
elite, beerhall elite.
than aa beerhall
rather than they are
And they
elite. And the more
all the
are all more
dangerous. “Denazification
dangerous. “Denazification” and “demilitarizatio
” and “demilitarization” were set
n” were set
as
as the
the major
major goals
goals of
of Allied
Allied occupation
occupation in in Germany.
Germany. The The
goals
goals will
will never
never bebe reached
reached as as long
long asas only
only the
the old
old street
street
fighters of
fighters Nazi Party
the Nazi
of the removed. Most
are removed.
Party are dangerous of
Most dangerous of all
all
were
were the
the upper
upper crust
crust of
of business,
business, thethe government
government bureaucracy,
bureaucracy,
and the
and who could
Army who
the Army they were
claim they
could claim against Hitler—
were against Hitler--
after
after June,
June, 194-4.
1944.

D0 Cartels
D0 Cartels Stabilize
Stabilize International
International Relations?
Relations?
The record
The record of of IG
IO Farben
Farben is is so
so clear-cut
clear-cut an an answer
answer to to this
this
question
question that it is
that it while discussing
worth while
only worth
is only because the
discussing because bld
the old
argument has
cartel argument
cartel been revived
has been again in
revived again in spite of everything
spite of everything
that
that has
has happened.
happened.
A
A cartel
cartel stabilizes
stabilizes nothing.
nothing. It It merely
merely records
records aa relationship
relationship
between
between great producers which
great producers exists at
which exists particular time.
at aa particular time.
may be
cartel may
The cartel
The written as
be written contract for
as aa contract for one years i
hundred years
one hundred
but,
but, as
as changes
changes occur
occur in in the
the relationship
relationship of of the
the signers,
signers, itit will
will
fly
fly apart,
apart, sometimes
sometimes with with explosive
explosive violence.
violence. The The force
force which
which
destroys
destroys cartels
cartels isis the
the faster
faster development
development of of one
one oror another
another
of
of the
the parties.
parties. And
And because
because the the weaker
weaker parties
parties in
in cartels
cartels areare
kept in
kept while the
place while
in place continue to
stronger continue
the stronger to grow, the cartel
grow, the cartel
becomes perfect breeding
becomes aa perfect place, first
breeding place, first of economic war
of economic war andand
finally of
finally of aa shooting
shooting war.war. ~‘
The most
The irony in
perfect irony
most perfect history of
the history
in the was the
cartels was
of cartels the

\
""
...,..fi f W V_*U W ... _. ._v..._7_._.. ._ .. . j.

134
I34 u. IG
IG FARBEN
FARBEN
signing
signing ofof the
the permanent peace treaty
permanent peace treaty between
between British
British and
and
German business
German business at
at Duesseldorf
Duesseldorf onon the very day
the very day that
that Hitler
Hitler
was repudiating
was repudiating the
the Munich
Munich Pact
Pact by by marching
marching into
into Prague,
Prague,
thereby outraging
thereby outraging even
even Neville
Neville Chamberlain.
Chamberlain. The The whole
whole
history of
history of IG
IO Farben
Farben demonstrates
demonstrates that
that cartels
cartels do
do not
not even
even
stabilize themselves,
stabilize themselves, much
much less
less international
international relations
relations be-
be-
tween governments. _.
Probably the
Probably the clearest
clearest case
case was
was that
that of
of France.
France. There
There IG’s
IG’s
cartel links
cartel links had
had been
been particularly
particularly binding.
binding. They
They had
had also
also
been particularly
been particularly effective.
effective. French
French chemical output had
chemical output had been
been
materially reduced
materially reduced at at aa time
time when
when IG
IG was
was blandly
blandly expanding.
expanding.
And When
And when IG was far
IG was far enough ahead, and
enough ahead, and shared
shared in
in the
the Victory
victory
of the
of the German
German nation,
nation, the
the cartel
cartel was
was not
not even
even modified.
modified. It It
exploded into
exploded into thin
thin air
air and
and the
the French
French chemical industry was
chemical industry was
taken
taken over
over bodily.
bodily.
Political
Political alliance
alliance was
was no safeguard, either.
no safeguard, either. Records
Records of the
of the
IG
IG indicate
indicate that the leadership
that the leadership was was thinking
thinking seriously
seriously about
about
the day
the day when
when it
it would
would have
have to
to take
take over
over the
the chemical
chemical works
works ofof
the Fascist
the Fascist ally,
ally, Italy.
Italy. Cartels
Cartels accomplish
accomplish many
many things,
things, in-
in-
cluding the
cluding the raising
raising ofof prices
prices and
and burying
burying of
of inventions,
inventions, but
but.
they do
they do not
not add
add to
to the
the peace
peace of
of the
the world.
world.
flfust aa Cartel
lléfust Cartel Be
Be Inefficient?
Inefficient?
One of
One of the
the hopes
hopes of
of some anti-monopolists is
some anti-monopolists that the
is that the big
big
'monopolies will defeat
monopolies will defeat themselves.
themselves. The
The monopolies
monopolies become
become
too
too big,
big, so
so the
the argument runs. They
argument runs. They become
become 'unwieldy
unwieldy andand
inefficient.
inefficient. They
They speed up their
speed up their own
own decline
decline by
by repressive
repressive
practices. The smaller independent producer, if he _is willing
to take
to take chances
chances with
with new
new methods,
methods, can
can leap
leap ahead.
ahead.
There is
There is nothing
nothing bad
bad about
about this hope. It
this hope. It suggests
suggests that
that there
‘can The main
can be an easy escape from the grasp of cartels. -The
thing wrong with
thing wrong with it
it is
is that
that it
it does
does not
not square
square with
with the
the facts.
facts.
It
It is
is true that IG
true that IG Farben
Farben sometimes held back new products
or
or methods.
methods. The
The sulfa
sulfa drugs
drugs are
are aa case
case in point. But by and
in point.
large,
large, IC’s
IG’s main
main stock-in-trade
stock-in-trade was
was aggressive
aggressive pursuit
pursuit of
of new
new

* J-‘.1
 QUESTIONS AND
QUESTIONS AND ANSWERS
ANSWERS ~~ 135
I35
technical developments.
technical developments. There
There were
were American
American cartel
cartel partners
partners
of the
of the IG
10 who
who were
were willing
willing to
to rest
rest on
on what
what looked
looked like
like assured
assured
markets
markets and
and therefore
therefore held
held back
back new
new developments.
developments. IG IG rarely
rarely
was
was willing.
willing. NoNo matter
matter how
how bigbig IG
IG Farben
Farben became,
became, its its ef-
ef-
ficiency
ficiency remained
remained genuinely
genuinely impressive.
impressive. IG IG was
was willing
willing to to
risk
risk huge
huge investments
investments in in new
new processes.
processes. And
And these
these risks
risks did
did
not
not constitute
constitute waste.
waste. IG’s
IG’s birds generally came
birds generally came home
home to to roost.
roost.
By
By the
the account
account ofof some
some Germans
Germans who who ought
ought to to know,
know, thethe
Nazi
Nazi war
War effort
effort was
was not
not the
the miracle
miracle of of efficiency
efficiency which
which thethe
Outside
outside world
world sometimes
sometimes waswas led
led to
to believe.
believe. Hitler’s
Hitler’s architect
architect
and minister of war production, Speer, told Americans that
there
there were
were many
many flaws
flaws in
in Nazi
Nazi production.
production. War War produc-
produc-
tion
tion for
for World
World WarWar II may
may have
have been
been more
more efficient.
efficient. .Hitler
Hitler
was
was hampered
hampered in in some
some ways
ways by by his
his own
own propaganda.
propaganda. The The
German
German women
women hadhad been
been told,
told, for
for example,
example, that
that their
their place
place
was
was next
next to
to the
the cow:
cow: they
they could
could divide
divide their
their time
time between
between
kitchen and bedroom and raise more warriors./As warriors, As a result,
even at
even at peak
peak of
of production,
production, there
there were
were relatively
relatively fewer
fewer wo-wo-
men
men inin industry
industry inin Germany
Germany than
than inin England
England or or even
even inin the
the
United
United States.
States. What
What saved
saved thetNazi
the~Nazi economy
economy waswas thethe ready
ready
co-operation
co-operation of of collaborationist
collaborationist industrial
industrial leaders
leaders through-
through-
out
out Western
Western Europe.
Europe.
But
But IG,
IG, at
at least,xnever
least,-never lost
lost ground
ground technically.
technically. ToTo the
the very
very
end
end it
it maintained
maintained its its successful
successful combination
combination of of scientists
scientists and
and
businessmen
businessmen in in its
its leadership.
leadership. ToTo judge
judge from
from thethe record
record of of
IO,
IG, big
big monopolies
monopolies cannot be expected
cannot be expected toto fall
fall of
of their own
their own
weight.
weight. Where
Where monopolies
monopolies act act against
against public
public interest,
interest,'thethe
solution of the
solution of the problem
problem is
is political.
political. Certainly
Certainly there
there is
is no
no
automatic safeguard in purely economic forces.

[5 Germany
Is Germany Through
Through asas aa War
War Menace?
Menace? _
In the
In the American
American zone of occupation in Germany only one
town of
town of any
any size
size escaped
escaped serious
serious damage. The one exception
was the
was the beautiful
beautiful old
old university
university town
town of
of Heidelberg.
Heidelberg. Munich,
Munich,
Frankfurt, Stuttgart,
Frankfurt, Stuttgart, Nuremberg-—all
Nuremberg—all ' are smashed and
—i --. ---~-- __ _._ ..___ .__,__ _ _ _

W
136
I 36 IG FARBEN
IG FARBEN

4. ._ ...___...
broken
broken cities. The town
cities. The town of Wuerzburg was
of Wuerzburg almost,obliterated .-
was almost,obliterated
in one twenty-minu
in one twenty-minute te air' raid at
air raid the end
at the of the
end of when aa
war, when
the war,
refused to
commander refused
Nazi commander
Nazi to surrender Berlin is
town. Berlin
the town.
surrender the is aa
place, sprawled
huge place,
huge over as
out over
sprawled out space as
much space
as much You
Chicago. You
as Chicago.
walk all
can walk
can through Berlin
day through
all day and never
streets and
Berlin streets block
pass aa block
never pass
which most
in which
in the buildings
of the
most of not damaged.
were not
buildings were Berlin
In Berlin
damaged. In
damage was
the damage
the close up,
done close
was done artillery, mortars,
with artillery,
up, with and
mortars, and
in street
grenades, in
grenades, fighting on
street fighting on the colossal scale.
most colossal
the most For
scale. For
of the
most of
most the other cities destruction
other cities from the
came from
destruction came air.
the air.
first'glance it
At firstglance
At as if
looks as
it looks were ruined
Germany were
if Germany beyond
ruined beyond
hope of
hope repair. It
of repair. hard to
is hard
It is of another
conceive of
to conceive menace
war menace
another war
out of
rising out
rising wreckage.
such wreckage.
of such
yet, bythe
And yet,
And careful estimates
by'the careful of IG
estimates of IO Farben engineers,
Farben engineers,
IG at
IG the end
at the the war
of the
end of had suffered
war had loss of
suffered aa loss thirteen
only thirteen
of only
cent of
per cent
per productive capacity.
its productive
of its estimates for
The estimates
capacity. The the
for the
of German
rest of
rest are not
industry are
German industry from this
far from
not far percentage. A
this percentage. A
mass of
great mass
great about the
evidence about
of evidence of industry
status of
the status gath-
was gath-
industry was
ered by
ered the U.
by the Strategic Bombing
S. Strategic
U. S. The air
Survey. The
Bombing Survey. had
forces had
air forces
an important
an part in
important part the survey:
making the
in making there were
if there
survey: if bias
any bias
were any
would be
it would
it the direction
in the
be in proving that
of proving
direction of bombing won
that bombing won
war. And
the war.
the the Strategic
And the Bombing Survey
Strategic Bombing demonstrated
Survey demonstrated
conclusively that
conclusively the bulk
that the of German
bulk of capacity to
German capacity was
produce was
to produce
In spite
intact. In
intact. of all
spite of German industrial
damage, German
all damage, capacity
industrial capacity
at the
greater at
was greater
was of the
end of
the end the war at the
than at
war than the beginning. The
beginning. The
single bar
greatest single
greatest to production
bar to production was breakdown of
the' breakdown
was the all
of all
transportation; and
transportation; this had
and this largely been
had largely by
about by
brought about
been brought
Germans when
the Germans
the they blew
when they their own
up their
blew up bridges.
own bridges.
\close inspection
On ‘close
On it turned
inspection it turned out it was
that it
out that was very much
very much
easier to
easier most of
destroy most
to destroy the houses
of the in aa city
houses in than to
city than hit aa
to hit
factory—ueven’by
particular fact0ry——-even
particular by daylight and even
daylight and assuming one
even assuming one
knew where
really knew
really factory was.
the factory
where the It turned
was. It turned out that aa factory
out that faetory
buildingcould
building /could absorb punishment, until
tremendous punishment,
absorb tremendous it looked
until it looked
like aa complete
like complete wreck, without serious
wreck, without damage to
serious damage the ma-
to the ma-
on the
chinery on
chinery And it
inside. And
the inside. out that
tamed out
it turned Germans,
the Germans,
that the
their practice
through their
through war games
with war
practice with back in
starting back
games starting 1934,
in 1934,
\
 QUESTIONS AND ANSWERS ‘ 137
were excellently
were excellently prepared
prepared to to make
make good
good any
any damage
damage (10116-
done.
They turned
They turned their
their tremendous
tremendous over-supply
over-supply of of machine
machine tools
tools
CHEW and plants which had seemed to be destroyed
500d effect,
to good
were-back in
were-back in operation
operation sometimes
sometimes in in aa matter
matter ofof weeks.
weeks.
-' In
In this
this war
war Germany
Germany waswas beaten
beaten onon the
the battlefield,
battlefield, not
not by
by
economic pressure.
economic pressure. InIn the
the last
last days
days ofof the
the fighting
fighting Germany
Germany
was still
was still able
able to
to produce.
produce. And And itit will
will be
be able
able to
to produce
produce
weapons full-blast
weapons full-blast again
again long
long before
before thethe people
people inin German
German
cities have
cities have moved
moved out
out ofof cellars-—unless
cellars——unless muchmuch more
more equip-
equip-
ment is taken as reparations than has been taken so far.
As forithe
As for'the majority
majority ofof the
the German
German people,
people, there
there is
is no
no evi-
evi-
dence that
dence that they
they would
would not
not today
today blindly
blindly follow
follow another
another call
call
to arms.
to arms. The
The Nazi
Nazi Party
Party as as such
such would
would undoubtedly
undoubtedly be be re-
re- ,.
jected by
jected by the
the Germans.
Germans. It It led
led the
the way
way inin aa losing
losing .war.
twar. Yet
Yet- I

the bulk
the bulk of
of Germans
Germans whowho telltell foreigners
foreigners eagerly
eagcily that
that they
they I

were never Nazis, will indicate in the next sentence that they i

are intensely
are intensely nationalistic.
nationalistic. At
At least
least in
in western
western Germany,
Germany,
Russia is still virulent; hatred of the French is
hatred of /Russia
only aa little
only little less
less so.
so. Every
Every American
American in in Germany
Germany has has seen
seen the
the _.i‘._

happy reaction among Germans at any sign of tension between I

the Western
the Western Allies and Russia. _. I
. -_. “—- .-(_

Of course
Of course Germany
Germany no no longer
longer has
has the
the most
most powerful
powerful army
army 1

in the
in the world.
world. ButBut Germany
Germany cancan still
still fight.
fight. Its
Its industry
industry is
is still
still 4 ;.

potentially strong.
potentially strong. And
And above
above all,
all, Germany
Germany remaifis
remaifi's the
the cross-
cross- 1-.‘_U\:._4L-_A

roads where
roads where most
most of
of the
the main
main issues
issues ofof international
international relations
relations
are joined
joined andand must
must be settled.
i

are -‘ ‘ I
I
I
I

Could’the German Drive

Could ’the German Drive to War Have Been Stopped?
Stepped?
Clearly, after Hitler
Clearly, after Hitler was
was installed as Chancellor of Ger- _--‘A-.l
t

many
many the
the world had runout
world had run‘out of alternatives. Hitler talke'd
talke’d
War,
war, he acted war, he meant war. This was clear enough
before
before 1933;
1933; it
it Was
was unmistakable
unmistakable afterwards.
afterwards. So
So the
the question
question '.)_4-_.-._ -=

changes to one of domestic German politics: could a fascist

,I

regime
regime have
have been
been prevented?
prevented? Looking backward into history
A¢_.

it
it is
is easy
easy to
to say
say that
that everything
everything was inevitable, just because
._. 5:..-” .r. n .-

I
I
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r
I “ . 1
‘A
r_F .

I138
38 A’ A' ' IG FARBEN
[G FARBEN
it did happen:
it did actual events
the actual
happen: the written into
are written
events are the
headlines, the
into headlines,
alternatives fade
alternatives Yet Hitler’s
away. Yet
fade away. did not
backers did
flitler’s backers take his
not take his
victory for
victory They could
granted. They
for granted. easily shake
not easily
could not the fact
off the
shake oi? fact
that the
that Socialists and
the Socialists Communists together
and Communists drew thirteen
together drew thirteen
million ,Votes.
million Nazis themselves,
The Nazis
votes. The the best
in the
themselves, in position to
best position to
measure
measure the
the slaughter
slaughter of
of opponents
opponents inin the
the concentration
concentration
camps, did
camps, relax and
not relax
did not their membership
open their
and open books until
membership books until
1937. Then,
1937. secure, they
feeling secure,
Then, feeling in several
took in
they took million eager
several million eager
opportunists, to
opportunists, reach aa total
to reach membership of
total membership seven million.
of Seven million.
For
For Hitler’s
Hitler’s backers
backers inin Big
Big Business,
Business, the
the issues
issues were
were always
always
clear. At
clear. particular time
any particular
At any was possible
it was
time it dicker with
to dicker
possible to with
businessmen of
businessmen other nations,
of other strike aa bargain,
nations, strike and record
bargain, and record
division of
aa division markets in
of markets in aa cartel. this only
But this
cartel. But concealed the
only concealed the
true
true dynamics
dynamics of of the
the situation.
situation. The
The German
German economy
economy was was
the fastest
the expanding in
fastest expanding in Western What was
Europe. What
Western Europe. an ac-
was an ac-
split of:
ceptable split
ceptable markets in
of_ markets in one would be
year would
one year unsatisfactoryy
be unsatisfactor
aa few
few years
years later.
later. This
This was
was why
why the
the frantic
frantic attempts
attempts at
at ap-
ap-
peasement—t
peasement-—the throwing to
he throwing of successive
Hitler of
to Hitler chunks of
successive chunks of
smaller
smaller nations—wer
nations——were e bound
bound toto fail.
fail. Sooner
Sooner or
or later
later Hitler
Hitler
would bite
would the solid
into the
bite into meat of
solid meat of Great and France.
Britain and
Great Britain France.
The
The case
case of
of IG
IG Farben
Farben illustrates
illustrates how
how clearly
clearly the
the German
German
industrialists
industrialists saw
saw what
what lay
lay at
at the
the end
end of
of the
the road.
road. Some
Some of
of
IG’S
IG’s heaviest
heaviest investments
investments during
during the
the 1920’s
1920’s were
were in
in synthetic
synthetic
nitrates,
nitrates, synthetic
synthetic gasoline,
gasoline, and
and synthetic
synthetic rubber.
rubber. These
These were
were
investments
investments which
which could
could onlylpay
only-pay if
if Germany
Germany was
was cut
cut off
Off
from
from the
the much
much cheaper
cheaper SUpplies
supplies of
of natural
natural gasoline
gasoline and
and
rubber.
rubber. And
And when
when that
that happened
happened the
the world
world would
would be
be at
at war
war
or
or close
close to
to it.
it. Thus
Thus Germany’s
Germany’s greatest
greatest corporation
corporation was
was will—
will-
ing
ing to
to gamble
gamble its
its future
future onon the
the coming
coming of
of war.
war. The
The managers
managers
of
of IG
IG understood
understood that,
that, short
short of
of revolution,
revolution, there
there would
would be
be no
no
curbing
curbing the
the aggressive,
aggressive, outward
outward drive
drive of
of German
German business.
business.
I

Did the
Did the Nazis
Nazis Aim
Aim at
at Conquest
Conquest of
of the
the Whole
Whole World?
World?
After the
After the fall
fall of
of France
France the
the Nazi
Nazi government
government requested
requested the
the
IG to
IG to submit
submit its
its plan
plan for
for running
running the
the chemical
chemical industries
industries of
of

/' T
 »

QUESTIONS AND
QUESTIONS ANSWERS
AND ANSWERS 139
I39

all
all conquered territories. The
conquered territories. idea evidently
The idea was not
evidently was new
not aa new
one to
one to IG Farben. Within
IG Farben. IG came
time 10
short time
Within aa short came back With aa
back with
“New Order”
“New running to
plan, running
Order” plan.- hundreds of
to hundreds pages in
of pages in fullest
fullest
The New
detail. The
detail. Plan of
Order Plan
New Order IG Farben
of IG gives aa clear
Farben gives clear
picture of
picture how much
just how
of just Germans thought
the Germans
much the they could
thought they could
handle.
handle. .
With respect
With the conquered
to the
respect to plan was
the plan
countries the
conquered countries was com-
com-
plete. Every
plete. phase of
Every phase business in
of business countries as
such countries
in such as F rance,
France,
Belgium, and
Belgium, would be
Holland would
and Holland for the
run for
be run interests of
best interests
the best of
France, for
Germany; France,
Germany; for example, would not
example, would not be allowed to
he allowed to
produce more
'produce more pharmaceuti cals: German
pharmaceuticals: production was
German production was
ample and
ample needed no
and needed no competition The Dutch
competition.. The photographicc
Dutch photographi
production would
production stopped. In
be stopped.
would be section the
one section
In one IG writers
the IG writers
sort of
express aa sort
express grudging admiration
of grudging for the
admiration for completenesss
the completenes
of the Dutch
of the quinine monOpoly-m
Dutch quinine monopoly—--before proceeding to
before proceeding to
sketch the
sketch way in
the way in which quinine monopoly
the quinine
which the would be
monopoly would be
swallowed
swallowed _upup in
in Germany.
Germany.
At
At the
the time
time the
the government
government ordered
ordered the
the plans
plans to
to be
be drawn
drawn i

up, in
up, Summer of
the Summer
in the the English
1940, the
of 19410, had been
armies had
‘English armies been f

pushed
pushed outout of
of continental
continental Europe
Europe atat Dunkirk.
Dunkirk. Evidently
Evidently the
f
the t

Germans
Germans expected
expected aa negotiated
negotiated peace
peace with
with England.
England. Based
Based
on
on the
the notion
notion ofof such
such aa surrender,
surrender, the
the plan
plan called
called for
for an
an
offered
offered to
to British
British industry
industry of
of the
the option
option of
of continuing
continuing as
as aa
German satellite,
German with the
satellite, with taking aa thirty
Germans taking
the Germans per cent
thirty per cent
share
share of of English
English concerns,
concerns, and and English
English markets
markets sharply
sharply t

limited.
limited. 1 I
I

Plans
Plans forfor Eastern
Eastern Europe,
Europe, and and particularly
particularly thethe Soviet
Soviet
Union,
Union, were
were curiously
curiously vague.
vague. In In part
part this
this may
may have
have been
been
caused
caused by by the
the fact fact that
that 10’s
IG’s information
information service
service in
in Russia
Russia
was
was notnot as
as good
good as as in
in other
other countries;
countries; aa group
group ofof IG
IG agents
agents
had
had been
been expelled_from”Russia1n
exp§_l_l__e__dn_f11;omwl'{wu,§s,ia in 1932.
1932. After
After the
the war
war some
some
of
of ' the
the Farbenofficialsrevealed
Féifliien official? revealed the the anxiety
anxiety they
they had
had felt
felt
about
about aa fight
fight with with the
the Russians.
Russians. Evidently
Evidently notnot sharing
sharing thethe
opinion
opinion of of the
the American
American Chief Chief of of Staff,
Staff, that
that the
the Red
Red armies
armies
would
would last
last only
only aa few
few weeks,
weeks, they
they already
already feared
feared that
that the
the
I
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I
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i7
’.

140
I40 16 FARBEN
IG

Wehrmacht
Wehrmacht might
might be
be destroyed in Russia.
destroyed in Russia.
But there
But there was
was nothing
nothing backward
backward about
about their
their plans
plans for
for the
the
American continents.
American continents. They
They figured
figured on
on exactly
exactly the
the same
same kind
kind
of economic warfare which had preceded the shooting war
in Europe.
in Europe. Latin
Latin America
America was
was the
the first
first target;
target; and
and the
the United
United
States was
States was the
the main
main enemy.
enemy. As
As Dr.
Dr. von’
von‘ Schnitzler
Schnitzler wrote,
wrote,
' “.
“. .. .. outside
outside of
of Europe
Europe the
the United
United States
States was
was the
the only
only strong
strong
'country with which
country with which Germany
Germany had to reckon.
had to reckori. Therefore
Therefore we
we
wrote in the ‘New Order’ that we intended to keep Germany
as strong
as strong as
as possible
possible militaristically
militaristically in
in relation
relation to
to the
the United
United
States. We
States. We could
could accomplish
accomplish this
'this only
only by
by limiting
limiting the
the pro-
pro-
duction of
duction of armaments
armaments in
in Latin
Latin America.
America. WeWe did
did not
not want
want in
in
the event
the event of
of an
an eventual
eventual conflict
conflict with
with the
the United
United States
States to
'to
permit Latin America to supply the U.S.A. with war ma-
terials.”
terials.”
it‘would be
As a part of the fight in Latin America it'would h‘e neces-
sary to
sary to keep
keep American
American business
business from
from retaliating
retaliating in
in Europe.
Europe.
For example, the IG plan stated in connection with France
that: “.
that: “. .. .. it
it is
is necessary
necessary toto remove
remove the
the Americans
Americans from from [the]
[the]
French production scene with every means at our disposal.”
And the
And the Farben
Farben men men further
further said
said that
that “.
“. .. .. we
we ought
ought not
not be
be
too much
too much concerned
concerned as as to
to the
the means
means wewe are
are to to be
he allowed
allowed to
to
use.”
use.”
None of this planning was derived from Hitler’s book,
Mein Kampf.
Mein Kampf. It It was
was the
the hardheaded,
hardheaded, detailed schedule of
businessmen. Yet it was in the same spirit Spirit as Hitler’s most
power-drunk oratory.
power-drunk oratory. The
The Nazi State proposed to dominate
just as
just as much
much of of the
the world as it could effectively reach. And
‘as
as will be seen in the next two chapters, German business did did'
a very successful preliminary job of infiltrating the Americas.
I1

r
 9
9
Big Fight—-In
Big Fight—In Waltz
Waltz Time
Time

In IG Farben’s
In IG Farben’s blueprint
blueprint‘ for
for further
further aggression,
aggression, the
the Neu-
Neu-
ordnung
ordnung plan, United States
the United
plan, the always in
was always
States was the center
in the center
of
of the
the target.
target. The
The successive economic attacks
successive economic attacks on
on European
European
nations
nations were aimed at
were aimed at creating
creating aa position
position from
from which it would
which it would 1

be possible
be to fight
possible to on equal
fight on terms with
equal terms American pro-
the American
with the pro- f
I
n

ducers.
ducers. And
And meanwhile,
meanwhile, the
the fight
fight against
against the
the Americans
Americans was
v
was
already
already under
under way.
way. I

10
IG was
was the
the most
most powerful
powerful German
German corporation. On the
corporation. On the I

American side,
American Side, it
it would
would be
be hard
hard to
to name
name aa more
more powerful
powerful
organization than
organization than Standard
Standard Oil
Oil of
of New
New Jersey.
Jersey. The
The two
two col-
col- I

lided in.the
lided in.the middle
middle of
of the
the 1920’s.
1920’s. Out
Out of
of the
the conflict
conflict came
came
what looked
what looked like
like agreement
agreement and
and stability.
stability. Out
Out of
of the
the agree-
agree-
ment came
ment came some
some major
major defeats
defeats for
for the
the United
United States
States when
when
the openly
the openly declared
declared war
war began.
began. The
The battle
battle between
between IGIG and
and
Standard was
Standard was never
never really
really settled
settled in
in spite
spite of
of all
all the
the appear-
appear—
ances of
ances of friendship.
friendship. If
If there
there was
was peace
peace at
at all,
all, it
it was
was because
because 1

Standard was
Standard was willing
willing to
to make
make concessions.
concessions. And
And Standard
Standard was
was
willing to
willing to make
make concessions
concessions because
because they
they could
could bebe made
made I
t

mainly at
mainly at the
the expense
expense of
of the
the American
American people.
people.
.. I41
141
lj .

-i
I

4
t
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J
 142
I42 IG FARBEN
IG FARBEN

IG started
IG started its
its attack
attack with
with aa move
move against
against Standard’s
Standard’s domi-
domi—
nant position
nant position in
in oil.
oil. The
The attack
attack ended
ended with
with aa rubber
rubber shortage
shortage
in 194-2
in 1942 which
which almost
almost cost
cost U.
U. S.
S. the
the war.
war.
Actually the
Actually the championship
championship bout bout between
between industrial
industrial heavy-
heavy-
weights started
weights started in
in the
the laboratories
laboratories of of German
German scientists.
scientists.
It has
It has been
been said
said that
that civilization
civilization began
began with
with the
the discovery
discovery
of the
of the uses
uses of
of fire
fire and
and the
the wheel.
wheel. The
The use
use of
of fire
fire down
down through
through
the ages
the ages has
has led
led to
to aa never-ending
never-ending search
search for
for fuel.
fuck This
This search
search
has covered
has covered the
the globe.
globe. ItIt has
has led,
led, by
by boring,
boring, far
far into
into the
the earth’s
earth’s
crust. It
crust. It has
has led
led to
to the
the stripping
stripping of of forests,
forests, the
the exhaustion
exhaustion of of
mines, and
mines, and the
the draining
draining of of oil
oil wells.
wells. In
In all
all cases,
cases, until
until the
the
super-revolutionary demonstration
super-revolutionary demonstration of of controlled
controlled atomic
atomic
power, the
power, the fuel
fuel has
has always
always been
been some
some form
form of(if hydro-carbon,
hydro-earhon,
the combination
the combination of of hydrogen
hydrogen and and carbon
carbon occurring
occurring in in almost
almost
infinite variety.
infinite variety. In
In one
one way
way oror another
another almost
almost allall fuel
fuel isis the
the
result of
result of the
the sun’s
sun’s action
action on
on plant
plant life,
life, the
the process
process known
known as
as
photosynthesis, through
photosynthesis, through which
which hydro-carbons
hydro-carbons are are built
built up.
up.
The earliest
The earliest common
common source
source of
of hydro-carbon
hydro-earbon was
was un-
un~
doubtedly lumber,
doubtedly lumber, still
still aa useful
useful fuel.
fuel. Very
Very old
old and
and carbon-
carbon- _
ized wood,
ized wood, in
in the
the form
form ofof coal,
coal, was
was found
found to
to be
be aa much
much more
rhore
efficient fuel.
efficient fuel. The
The industrial
industrial revolution
revolution was
was based
based largely
largely on
on
the discovery
the discovery of
of efficient
efficient ways
ways of
of converting
converting the
the energy
energy stored
stored
up in
up in coal steam power.
into steam
coal into the steam
As the
power. As itself was
engine itself
steam engine was
improved the
improved the need
need developed
developed forfor even
even more
more efficient
efficient fuel.
fuel.
It was
It was found
found inin the
the form
form ofof oil,
oil, petroleum.
petroleum.
Oil in
Oil in the
the form
form ofof asphalt
asphalt was
was used
used asas aa building
building material
material
by the
by the Sumerians
Sumerians six six thousand
thousand years
years ago.
ago. Herodotus
Herodotus described
described
oil pits
oil pits near
near Babylon.
Babylon. Pliny
Pliny wrote
wrote about
about the
the use
use of
of petroleum
petroleum
in lamps
in lamps in in Sicily.
Sicily. Petroleum
Petroleum waswas probably
probably the the base
base of
of the
the
terrifying “Greek
terrifying “Creek Fire”
Fire” which
which was
was "used
'used in
in the
the defense
defense ofof
Constantinople all
Constantinople all through
through the
the Middle
Middle Ages.
Ages. TheThe ancient
ancient
Chinese knew
Chinese knew of of the
the use
use of
of oil
oil for
for heat
heat and
and lighting
lighting and
and the
the
American Indian
American Indian used
used petroleum
petroleum as as a,cure
acute forfor rheumatism
rheumatism
and sold
and sold it
it to
to the
the whites
whites as
as “Seneca
“Seneca Oil.”
Oil.” But
But all
all these
these uses
uses
of petroleum
of petroleum were were on
on aa small
small scale.
scale.

u.
 I

BIG FIGHT —-——.IN

BIG --IN WALTZ TIME
WALTZ TIME I' 143
I43
The
The big boom began
big boom began in in Pennsylvania
Pennsylvania in in 1859.
1859. Since
Since then
then
men
men have
have hunted
hunted oiloil in
in all
all the
the. corners
corners of
of the
the earth.
earth. Produc-
Produc-
tion
tion which
which waswas measured
measured in in hundreds
hundreds of
of barrels
barrels jumped
jumped to to
thousands,
thousands, toto millions,
millions, and
and finally
finally toto billions
billions of
of barrels
barrels each
each
year.
year. In
In 1944
194-4» the
the United
United States
States alone
alone produced
produced 1,678
1,678 million
million
barrels
barrels of
of petroleum.
petroleum. Ii
Oil
Oil made
made possible
possible the
the automobile
automobile and
and the
the airplane.
airplane. Oil
Oil
revolutionized
revolutionized navies
navies and and ground
ground Warfare.
warfare. Oil Oil became
became the the
basis
basis of
of power
power in in the
the modern
modern world.
world. At At the
the Locarno
Locarno Confer-
Confer-
ence,
ence, aa few
few years
years after
after thethe conclusion
conclusion of of World
World War War I, I, it
it was
was
reported
reported that
that oilmen
oilmen were were thicker
thicker than than politicians
politicians in in the
the cor-
cor-
ridors
ridors of
of the
the hotels.
hotels. Small
Small wonder,
wonder, then, then, that
that Standard
Standard Oil Oil
of New Jersey
of New was one
Jersey was one of the great
of the seats of
great seats power, able
world power,
of world able
bend or
to bend
to governments in
break governments
or break countries all
in countries over the
all over the world.
world. I
Two
Two South
South American
American countries
countries fought
fought aa war war in in the
the Gran
t
Gran
Chaco
Chaco with
with aa big
big oil
oil company
company behindbehind each each contestant.
contestant.
Germany
Germany went went intointo World
World War War II poor poor in in oil
oil resources;
resources;
this
this was
was one
one of
of the
the reasons
reasons forfor German
German defeat.
defeat. Germany
Germany came came
out
out of
of the
the war
war starved
starved for for oil
oil and
and determined
determined never never againagain I
to
to be
be caught
caught without
without an an oil
oil supply.
supply. At At this
this point,
point, the
the trail
trail of
of
I
fuel-politics
fuel-politics led
led to
to the
the laboratories
laboratories of of Dr.
Dr. Bergius.
Bergius.
Coal
Coal hadhad been
been Germany’s
Germany’s most most important
important raw raw material.
material.
German
German research
research men men therefore
therefore had had experimented
experimented widely widely
with
with aa bewildering
bewildering array array of of ceal
coal products.
products. For For fifty
fifty years
years
they
they had
had reveled
reveled in in the
the brilliant
brilliant discovery
discovery that that materials
materials did did I
not
not have
have to to he
be used
used by by manman as as they
they were
were found
found in in their
their I
I

natural
natural state,
state, but
but that
that through
through applied
applied chemistry
chemistry the the natural
natural
materials
materials could
could be be changed
changed into into thousands
thousands of of forms
forms to to suit
suit
man’s
man’s needs.
needs.
In
In 1910
1910 Bergius
Bergius had,
had, begun
begun to
to work
work on
on the
the idea
idea of
of making
making
light
light oils
oils out
out of
of heavy
heavy oils.
oils. The
The heavy
heavy oils
oils contain
contain more
more
carbon,
carbon, less
less hydrogen,
hydrogen, than
than the
the light
light ones.
ones. Bergius
Bergius found
found
he
he could
could make
make oils
oils lighter
lighter by
by forcing
forcing hydrogen
hydrogen into
into them.
them.
World War II led
World War led Bergius
Bergius and
and his
his research
research colleagues
colleagues to
to take'
take
I
II

another
another big
big step.
step. They had coal;
They had coal; they
they did
did not have oil.
not have oil. Why
Why
I
1
iI _____.__‘u 4_

‘
-_.4_
 IIII7--

144
I44 ‘‘ IG FARBEN
IG FARBEN

not regard coal

not regard coal merely
merely as
as an
an extremely
extremely heavy
heavy oil,
oil, and convert
and convert
it into
it into aa light
light oil,
oil, say
say gasoline, by forcing
gasoline, by forcing hydrogen
hydrogen into
into it?
it?
The
The problem
problem waswas no
no easy
easy one,
one, but
but one
one stage
stage atat aa time, Bergius
time, Bergius
and
and the
the research
research men
men ofof the
the IG
IC solved
solved it.
it. By
By the middle of
the middle of
the 1920’s
the 1920’s they
they had
had found
found out
out how
how to
to make
make hugehuge quantities
quantities
of
of hydrogen
hydrogen and and to
to force
force it,
it, under
under high pressure, at
high pressure, at great
great
temperature, and
temperature, and in
in the
the presence
presence ofof suitable
suitable catalysts,
catalysts, into
into
coal products.
coal products. They
They could
could get
get gasoline
gasoline outout of
of aa coal
coal mine.
mine.
Politically more
Politically more important,
important, they
they could
could operate
operate aa mechanized
mechanized
army of
army of tanks
tanks and
and bombers
bombers andand fighter
fighter planes
planes without
Without anyany
' source
source of of natural
natural petroleum.
petroleum.
IG Farben
IG Farben had
had never
never been
been inin the
the oil
oil business
business before.
before. Now
Now
IG negotiators
IG negotiators went
went toto America
America to to shop
shop forfor aa dealdeal with
with
Standard Oil.
Standard Oil. Standard
Standard was
was inclined
inclined to
to be
be aloof-——-but
aloofwbut not not for
for
long.
long.
Frank Howard,
Frank Howard, one one of
of the
the officials
officials of
of Standard
Standard Oil,
Oil, went
went
.to visit the
to visit the IG
IG people
people atat the
the great
great Ludwigshafen
Ludwigshafen plantplant inin
March, 1926.
March, 1926. ItIt takes
takes little
little imagination
imagination to to visualize
visualize the
the barely
barely
contained glee
contained glee with
With whichihe
which'he was was shown
shown around.
around. The
The repre-
repre-
sentative of
sentative of the
the world’s
world’s greatest
greatest power
power in in natural
natural oil
oil was
was
shown the
shown the process
process whereby
whereby ordinary
ordinary coal
coal could
could be
be converted
converted
into the
into the aristocrat
aristocrat ofof fuels,
fuels, gasoline.
gasoline. The
The shock
shock was
was literally
literally
heard around
heard around the the world.
world. Howard
Howard wrote
wrote to to the
the president
president ofof
Standard Oil,
Standard Oil, Walter
Walter Teagle:
Teagle:
“Based upon
“Based upon my my observations
observations andand discussion
discussion today,
today, II think
think
. that
that this
this matter
matter is
is the
the most
most important
important which
which has
has ever
ever faced
faced the
the
company since
company since the
the dissolution
dissolution [of
[of the
the original
original Standard
Standard Oil
Oil
Company].
Company].
“The Badische
“The Badische cancan make
make high
high grade
grade motor
motor oil
oil fuel
fuel from
from
lignite and
lignite and other
other low
low quality
quality coals
coals in
in amounts
amounts upup to
to half
half the
the
weight of
weight of the
the coal.
coal. This
This means
means absolutely
absolutely the
the independence
independence
of Europe
of Europe on
on the
the matter
matter of
of gasoline
gasoline supply.
supply. Straight
Straight price
price
competition is
competition is all
all that
that is
is left.
left. .. ..
“They can
“They can make
make upup to
to 100%
100% by by weight
weight from
from any
any liquid
liquid
hydrocarbon, tar, fuel oil, or crude oil. This means that re-

“/
' . ..-'4‘-I
! I
BIG FIGHT---IN
BIG FlGHT—-—-|N WALTZ TIME
WALTZ TIME 145
145
fining
fining ofof oil
oil will
will have‘
have1 as
as aa competitive
competitive industry
industry in in America
America
and elsewhere,
and elsewhere, catalytic
catalytic conversion
conversion of of the
the crude-into
crudeinto motor motor
fuel}.. .
fuel.’ ’
“I shall
“I shall not
not attempt
attempt toto cover
cover any any details,
details, but
but I‘I think
think this
this
will be
will be evidence
evidence ofof my
my state
state ofof mind.”
mind. ” - .
The show
The show which
which the
the IG
IG men
men at at Ludwigshafen
Ludwigshafen had had put
put onon
for Frank
for Frank Howard
Howard shook
shook the
the great
great empire
empire of of Standard\Oil.
Standard Oil.
First, there
First, there waswas the
theimmediate
‘immediate threatthreat toto Standard
Standard in in the
the
European market
European market forfor oil.
oil. As
A's Howard’s
Howard’s letter
letter stated,
stated, com-
com-
petition now
petition now could
could be
be only
only on
on the
the basis
basis of
of price.
price. But any price
But any price
advantage which
advantage which might
might be be held
held by by gasoline
gasoline from
from natural
natural
sources
sources could, and would,
eould,~and would, bebe wiped
wiped outout by
by tariffs.
tariffs. Standard
Standard
could
could be
be thrown
thrown outout of
of Germany
Germany immediately;
immediately; its its whole
whole popo-
sition
sition in
in Europe
Europe waswas weak.
weak. The The stakes
stakes were
were considerable.
considerable.
Standard
Standard Oil
Oil of
of New
New Jersey
Jersey had
had been
been active
active in
in European
European '
markets
markets since
since 1880,
1880, when
when it
it had
had organized
organized aa French
French company.
company.
By
By 1891,
1891, Standard
Standard had
had also
also invaded
invaded the
the market
market inin England,
England,
Denmark,
Denmark, Germany,
Germany, and
and Italy.
Italy. In
In Germany
Germany Standard
Standard oper-
oper-
ated
ated mainly
mainly through
through the
the Deutsch-Amerikanische
Deutsch-Amerikanischc Petroleum
Petroleum
A.G.
A.G. This
This company,
company, operating
operating in
in aa score of German
score of cities,
German cities,
had assets
had assets of
of twenty-four
twenty-four million
million dollars
dollars and
and was
was ninety-five
ninety-five
per'cent owned
percent owned byby Standard.
Standard. With
With other
other holdings
holdings (as,
(as, through
through
Vacuum Oil)
Vacuum Oil) Standard
Standard took
took care
care of
of about
about half
half of
of the
the German
German
market.
market. ' '
But the
But the ’European
”European markets
markets were
were only
only aa small
small part
part of
of
Standard Oil’s
Standard Oil’s new
new worries.
worries. Gasoline
Gasoline from
from coal
coal by
by the
the Bergius
Bergius
hydrogenation method
hydrogenation method waswas still
still expensive.
expensive. But
But who
who could
could
tell how
tell how long
long the
the price
price advantage
advantage ofof the
the natural
natural oil
oil producers
producers
would last?
would last? Time
Time after
after time
time experience
experience had had shown
shown prices
prices
dropping of-I“
dropping off as
as methods
methods were
were improved
improved following
following some
some major
major
innovation. It
innovation. It would
would have
have been
been business
business madness
madness to to assume
assume
that gasoline
that gasoline from
from natural
natural petroleum
petroleum would
would always
always undersell
undersell \
gasoline from coal.
And finally,
And finally, there
there was
was the
the unpleasant
unpleasant fact
fact that
that there
there is
is aa
great deal
great deal of
of coal
coal in
in known
known deposits
deposits on
on the
the earth
earth and
and not
not
\
I
 I46
146 IG FARBEN

nearly as
nearly as much
much petroleum.
petroletim. Exhaustion
Exhaustion of
of wells
wells is
is aa ghost
ghost
which
which must
must stalk
stalk the
the halls
halls of
of any
any oil
oil company. For aa gener-
company. For gener-
ation
ation there
there has
has been
been thethe strong
strong possibility
possibility of an end to oil
supplies.
supplies. Discovery
Discovery of of new
new fields'keeps
fields'keeps pushing the danger
back
back but
but itit remains
remains on on the
the horizon.
horizon. Coal supply also is
limited;
limited; it
it will
will all
all be
be gone
gone in a small fraction of the time it
took
took to
to make
make itit in
in the
the depths
depths of the earth. But at least there is
so
so much
much ofof it
it that
that inin spite
spite of waste and greed and rapacious
use,
use, it
it Will
will probably
probably outlast
outlast petroleum
petroleum by
by many
many generations.
By
By technical
technical advances
advances lG
1G was
was able
able to
to threaten
threaten aa body
body blow
blow
to
to the
the great
great Standard Oil Corporation —wand to all oil pro-
Corporation—-and
ducers.
ducers. Because
Because of
of the
the threat,
threat, Standard
Standard was
was now
now willing
willing to
to
make
make comprehensiv
comprehensivee agreements
agreements with
with 10.
IG.
The
The essence
essence of
of the
the agreements
agreements which followed was ex-
pressed
pressed by
by aa Standard
Standard Oil man as follows:
“The
“The IG
IG are
are going
going to
to stay
stay out
out of
of the
the oil
oil business
business proposition
proposition
and
and we
we are
are going
going to
to stay
stay out
out of
of the
the chemical business in so
far
far as
as that
that has no bearing on the oil business.”
As
As far
far as
as Standard’s
Standard’s oil
oil business
husiness was concerned, the new
alliance
alliance was
was aa success.
success. The
The hydrogenatio
hydrogenationn process
process for
for making
making
gasoline
gasoline out
out of
of coal
coal would
would haunt
haunt the
the oilmen
oilmen for
for the
the rest
rest of
of
their
their days,
days, but
but at
at least
least Standard
Standard had
had been given a chance to.to
ride
ride the
the storm.
storm. Within
Within the United States, Standard had con-
trol
trol of
of the
the hydrogenatio
hydrogenationn process;
process; it could temper c0mpeti«
competi-
tion
tion by holding down development. Abroad, Standard allowed
, the
the Royal
Royal Dutch
Dutch Shell
Shell Company
Company to be cut in on the deal
through
through the
the I.H.P.—Inter national Hydro-Patenl
l.H.P.—lnternational s
Hydro-Patents Company.
How
How Standard
Standard saw
saw the
the use
use of
of the I.H.P.
I.H.P. was
was made
made clear
clear in
in aa
statement
statement of
of policy
policy in
in 1935:
1935:
“.
“. . . I.H.P. should not attempt to foment interest where
none
none exists,
exists, [but]
[hut] I.H.P. should be put in the
the position
position of
of an
an
independent
independent patent
patent holding
holding and licensing company, and al-
lowed
lowed toto attempt
attempt toto sell its process wherever there is serious
interest
interest in-hydrogena tion. . . We cannot, by restricting
in-hydrogenation. restricting the
the
activities
activities of
of I.H.P.,
I.H.P., other than as stated above, expect to do

f
 \

BIG FlGHT—IN WALTZ

BIG FIGHT-IN TIME
WALTZ TIME 147
147
more than retard
more than development of
the development
slightly the
retard slightly coal, tar,
of coal, etc.
tar, etc.
hydrogenation, and
by hydrogenation,
by policy of
and aa policy of repression in all
will in
repression will likeli-
all likeli-
hood lose
hood to us
lose to which is
advantage which
the advantage
us the inherent in
is inherent present
our present
in our
On the
position. On
position. hand, the
other hand,
the other outlined above
policy outlined
the policy not
will not
above will
tend to
tend stir up
to stir interest in
up interest hydrogenation if
in hydrogenation it does
if it already
not already
does not
If coal,
exist. If
exist. hydrogenation be
etc. hydrogenation
tar, etc.
coal, tar, from an
feasible from
be feasible an
standpoint, or
economic standpoint,
economic it is
if it
or if promoted for
be promoted
to be
is to nationalistic
for nationalistic
reasons or
reasons because of
or because some peculiar
of some conditions, it
local conditions,
peculiar local is
it is
better for
better us, as
for us, companies, to
oil companies,
as oil have an
to have interest in
an interest de-
the de-
in the
obtain therefrom
velopment, obtain
velopment, such benefits
therefrom such we can,
as we
benefits as and
can, and
the distribution
assure the
assure of the
distribution of in question
products in
the products through
question through
existing marketing
our existing
our facilities.”
marketing facilities.” ''
As one
As part of
one part bargain IG
the bargain
of the had insisted
IG had that it
insisted that allowed
he allowed
it be
development of
control’of development
retain controliof
to retain
to hydrogenation in
of hydrogenation Ger-
in Ger-
The Standard
many. The
many. Oil policy
Standard Oil quoted above
statement quoted
policy statement shows
above shows
clearly the
how clearly
bow German position
the German understood. The
was understood.
position was “pecu-
The “pecu-
local conditions”
liar local
liar to meant
referred to
conditions” referred meant nothing more or
nothing more less
or less
the determination
than the
than the Germans
of the
determination of get ready
to get
Germans to war
for war
ready for
the understanding
and the
and one of
that one
understanding that jobs in
10’s jobs
of IG’s preparation
the preparation
in the
would be
would synthesis of
he synthesis even if
gasoline, even
of gasoline, meant loss
it meant
if it money.
of money.
loss of
of course,
But, of
But, was aa part
this was
course, this part of the bargain
of the IG
which IG
bargain which
have had
could have
could without the
had without top-drawer business
the top-drawer diplomacy
business diplomacy
went on
which went
which between the
on between giant concerns,
two giant
the two particularly
concerns, particularly
in the
in the years 1927 and
between 1927
years between Even before
1929. Even
and 1929. Hitler,
before Hitler,
unquestionably after
and unquestionably
and IC could
1933, IG
after 1933, could have its
conducted its
have conducted
hydrogenation with
with hydrogenation
work with
work full protection
With full of tariffs
protection of and
tariffs and
subsidies.
subsidies.
biggest part
The biggest
The of the
part of the payoff IG Farben
for IG
payoff for support
was support
Farben was
Standard Oil
by Standard
by of IG’s
Oil of IG’s chemical all over
position all
chemical position world,
the world,
over the
the United
including the
including A token
States. A
United States. token of the support
of the the
was the
support was
that when
fact that
fact IG organized
when IG organized its 1G Corporation
American IG
its American in
Corporation in
Walter Teagle
1929, Walter
1929, of Standard
Teagle of Standard Oil of New
Oil of New Jersey accepted
Jersey accepted
on the
position on
aa position of American
board of
the board American IG. When the
IG. When of ,
details of
the details
formation of
the formation
the IG were
American IG
of American were made public and
made public it was
and it was
that such
seen that
seen American public
such American as Walter
figures as
public figures Teagle,
Walter Teagle,
 _-

]48
148 . IO
IG FARBEN ’
Edsel Ford, and Paul Warhurg
Warburg were on the board, Teagle
was interviewed.
was interviewed. The
The press
press carried
carried his
his explanation
explanation that
that his
his
presence on
presence the board
on the board resulted merely from
resulted merely from his
his pleasant
pleasant
personal relationship
personal relationship with
with the
the leaders
leaders of
of IG
IG Farben;
Farben; atat the
the
same time
same he announced
time he announced that further arrangements
that further arrangements were
were being
being
made with
made with IG
IG which
which would
would provide
provide for still greater exchange
of manufacturing
of manufacturing processes.
processes. ,
IG’s chemical
IG’s chemical products,
products, particularly
particularly synthetic
synthetic rubber,
rubber, re-
re-
ceived
ceived much
much more
more than
than aa token
token protection,
protection, even
even against
against Amer-
Amer-
ican
ican companies,
companies, with
with results
results which
which were
were nearly
nearly disastrous
disastrous
for
for the
the United
United States.
States.
Two
Two new
new companies
companies were
were organized
organized to
to carry
carry out
out the
the IG-
IG-
Standard
Standard Oil
Oil bargain
bargain in in the
the United
United States.
States. The
The Standard-IG
Standard-IG
Company,
Company, eighty
eighty per
per cent
cent owned
owned byby Standard, held the
Standard, held the jointly-
ointly- .
owned oil
owned oil patents
patents of
of the
the two
two companies.
companies. Another
Another company,
company,
Jasco, was organized to take care of patents for products
in
in the
the chemical
chemical field.
field. Jaseo
Jasco was
was owned
owned fifty-fifty
fifty-fifty by
by Standard
Standard
and
and IG,
IG, though
though IG
IG retained
retained control
control over patents it originated,
including all
including all the
the patents
patents for
for buna
buna rubber.
rubber. This
This meant
meant that
that
Standard could
Standard could deal
deal with
with American
American rubber
rubber companies
companies con-
con-
cerning rubber
cerning rubber patents, but only with the permission of IG
Farben. A
Farben. A limited
limited amount
amount ofof research
research by
by American
American firms,
firms,
so long as the controls were held by the Germans through their
allies in
allies in Standard
Standard Oil,
Oil, suited
suited IG
IG perfectly.
perfectly. There
There was
was always
always
the danger
the danger that
that otherwise
otherwise American
American firms would get
firms would get too far
ahead
ahead with
with synthetic
synthetic rubber
rubber on
on their
their own. This was indicated
by the
by the testimony
testimony of
of one
one of the leaders of IG,
IO, Baron George
Von Schnitzler:
von Schnitzler:
“(Question by
“(Question by interrogator):
interrogator): And
And it was in the interests
of IG
of IG to
to have
have Americaii
American firms
firms experimenting with the produc-
experimenting with produc~
tiofl of
tign of synthetic
synthetic rubber
rubber under
under license from the IG?
“(Von Schnitzler)
“(Von Schnitzler) : That is right. I think
think in
in 1933
1933 .. .. .. when
whenh
we were
we were to
to discuss
discuss more
more or
or less
less different questions along this
line . . . we were shown for the first time a large round cake
line cake
0f neoprene
of neoprene whichwas
whichwas ready to be marketed and from the dis-

Jiww
 ' I
I
'_ " :l

BIG FIGHT-—
BIG FIGHTm—IN WALTZ TIME
IN WALTZ TIME 149
I49

Du Pont
strong Du
cussions we saw how strong was getting
Pont was in that
getting in field.’,’
that field.’_’

It was one
It was one thing
thing to
to make deals with
make deals with IG
IG Farben
Farben inin the
the happy
happy
days
days between
between the
the wars
wars when
when it
it was
was possible
possible to
to talk
talk about
about the
the
solution
solution of
of the
the world’s
world’s trouble
trouble through
through cartel
cartel building.
building. The
The
president
president ofof Standard“
Standard‘ Oil could say
Oil could say that
that he
he became
became aa mem-
mem-
ber
ber of
of the
the board
board ofof the
the American
American IG IG because
because ofof his
his pleasant
pleasant
personal
personal relations
relations with
with 10
IG people.
people. In
In 1936
1936 hebe could
could tell
tell the
the
press
press about
about his
his efibrts
efforts to
to build
build trade
trade with
with Nazi
Nazi Germany,
Germany,
even
even though
though the
the Germans
Germans were
were pinched
pinched for
for foreign
foreign exchange,
exchange,
by
by all
all sorts
sorts of
of ingenious
ingenious barter
barter arrangements,
arrangements, including
including the
the
shipment
shipment to U. S.
the U.
to the enough harmonicas
of enough
S. of provide two
to provide
harmonicas to two
for
for every
every boy
boy in
in the
the country.
country. ButBut it
it was
was something
something veryvery differ-
differ-
ent
ent to
to try.
try to
to hold
hold on
on to
to the
the structure
structure of
of aa cartel
cartel when
when inin 'due
'due
course
course the
the war
war which
which had
had been
been shaped
shaped byby such
such cartels
cartels finally
finally
broke loose.
broke loose. ~t
At
At least
least Standard
Standard Oil Oil tried
tried to to keep
keep its
its cartel
cartel with
with IGIG
Farben
Farben alive,
alive, war
war oror no
no war.
war. As As aa Standard
Standard official
official said:
said:
“Upon
“Upon completion
completion of of that
that agreement
agreement [concerning
[concerning catalytic
catalytic
cracking
cracking of of oil]
oil] the
the war
war intervened
intervened because
because our
our grouping
grouping of'of
interested
interested parties
parties included
included Americans,
Americans, British,
British, Dutch
Dutch andand
Germans,
Germans, and
and the
the war
war introduced
introduced quite
quite aa number
number of
of compli-
compli-
cations.
cations. How
How wewe are
are going
going to
to make
make these
these belligerent
belligerent parties
parties
lie
lie down
down in
in the
the same
same bed
bed isn’t
isn’t quite
quite eiear
clear yet.
yet. We
We are
are now
now
addressing
addressing ourselves
ourselves to
to thatphase
that_pl1ase of
of the
the problem
problem and
and II hope
hope
we
we Will
will find
find some
some solution.
solution. Technology
Technology has
has to
to carry
carry on—war
on-—War
or
or no
no war—so
war——so we
we must
must find
find some
some solution
solution to
to these
these last
last prob-
prob-
lems.”
lems.” ‘ ‘‘
In
In October
October of
of 1939,
1939, aa month
month after
after the
the warthad
war.had begun,
begun,
Frank
Frank Howard
Howard ofof Standard
Standard Oil
Oil was
was in
in Europe
Europe trying
trying to
to find
find
aa way
way to
to keep
keep the
the Standard-IG
Standard-IG .cartel
-cartel alive
alive in
in spite
spite of
of the
the
war.
war. At
At aa conference
conference with
with IG
IG people
people in
in Holland
Holland 'an
‘an agree-
agree-
ment
ment was
was reached.
reached. Howard
Howard himself
himself described
described the
the job
job done
done in
in
the,
the following
following terms:
terms: ‘I
“.
“. .. .. we
we did
did our
our best
best to
to work
work out
out complete
complete plans
plans for
for aa
I

I
 150
I50 _ lG
IG FARBEN
modus
modus vivendi which would
vivendi which would operate
operate through
through the
the term
term of
of the
the
war,
war, whether
whether or
or not
not the
the U.5.
U.S. came
came in.
in. All
All of
of the
the arrangements
arrangements
could not
could not be
be completed,
completed, but
but it
it is
is hoped
hoped that
that enough
enough has
has been
been
done
done to
to permit
permit closing
closing the
the most
most important
important uncompleted points
uncompleted points
by cable.”
by cable.”
The basis
The basis of
of the
the agreement
agreement was
was the
the splitting
splitting of
of control
control of
of
the patents
the patents formerly
formerly held.jointly
held.jointly by
by Standard
Standard andand IG.
IG. Some
Some
two thousand
two thousand patents
patents were
were turned
turned over
over to
to Standard,
Standard, most
most of
of
them oil
them oil patents
patents inin which
which Standard
Standard already
already held
held eighty
eighty per
per
cent interest.
cent interest. The
The rubber
rubber patents
patents and
and others
others of
of the
the same
same sort
sort
were turned
were turned over
over to
to IG,
IG, except
except that
that Standard
Standard retained
retained the
the
rubber
rubber patents
patents for
for the
the United
United States,
States, France,
France, and
and the
the British
British
Empire.
Empire. The closeness of
The closeness of the tie remaining
the tie remaining was
was indicated
indicated
by the
by the fact
fact that
that even
even for
for the
the patents
patents which
which were
were turned
turned over
over
to
to Standard,
Standard, twenty
twenty per
per cent
cent of all revenues
of all revenues would
would be
be credited
credited
to IG.
to IC. As
As Howard
Howard said
said before
before aa committee
committee of
of the
the U. S. Senate:
U. S. Senate:
“The IG could claim after the war, if the contracts were still
running, an accounting and say, ‘You made so and so much
money out
money out of
of these
these patents
patents inin these
these three
three countries.
countries. Under
Under
the original
the original contract
contract which
which youyou traded
traded us
us out
out of
of in
in 1939,
1939,
we
we would
would be
be entitled
entitled to
to aa greater
greater sum
sum than
than we
we got.
got. That
That trade
trade
you made with us in 1939 wasn’t fair and you have to pay
us
us so
so and
and so
so much
much money.’
money.’ ””
While the negotiations in 1939 were under way in Holland,
Standard
Standard Oil
Oil was
was also
also keeping
keeping itself
itself protected
protected by
by giving
giving the
the
State
State Department
Department an
an account
account of
of what
what was
was supposed
supposed to
to be
be its
its
relationship with IG.
relationship with IG. Investigation
Inveistigation by
by the Truman Committee
the Truman Committee
later
later showed that in
showed that in the
the chart
chart which Standard Oil gave the
State
State Department
Department to to show
show its
its tie-in
tie-in with
with IG,
IG, Jasco
Jasco was
was left
left
out,
out, and that, of
and that, of course,
course, was
was the company which held the
synthetic rubber patents,
synthetic rubber patents, under
under IG control. In other respects,
also,
also, Standard
Standard Oil
Oil used a free hand in its dealings with the
State
State Department.
Department. InIn 1941,
1941, in
in spite
spite of
of aa request
request by Secretary
of
of State
State Cordell
Cordell Hull
Hull to
to break
break business
business ties
ties with the fascist
countries
countries in
in South
South America,
America, Standard
Standard decided to supply the
\

-7-1;-"TR
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I
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.

BIG FlGHT—IN
FIGHT—-IN WALTZ TIME 151
'I5'I
Fascist Italian
Fascist Italian airline,
airline, Ala
Ala Littoria,
Littoria, for
for six
six months
months from
from the
the
stocks of
stocks of the
the Standard
Standard Oil Oil Company
Company of of Brazil.
Brazil. Similarly,
Similarly,
Standard continued
Standard continued forfor several
several months
months toto supply
supply gasoline
gasoline toto
the Nazi
the Nazi German
German Condor
Condor airlines
airlines in
in South
South America,
America, although,
although,
' according
according to to the
the report
report ofof the
the Truman
Truman Committee,
Committee, “an “an over-
over-
whelming
whelming majority
majority ofof the
the companies
companies asked,by
asked,by thethe State
State De-
De-
partment
partment to to refrain
refrain from
from doing
doing business
business with
with German
German com-com-
panies
panies inin Seuth
South America
America hadhad compliedimmediately
complied immediately and and had
had
taken
taken whatever
whatever losses
losses accrued
accrued from
from it.’
it.” '
Apparently
Apparently the
the habit
habit of
of keeping
keeping business
business ties
ties with
with Nazis
Nazis
was
was aa hard
hard one
one to
to break.
break. This
This was
was nowhere
nowhere better shown than
better shown than
in
in the
the case
case of
of rubber.
rubber.

America’s
America’s war
war effort was very
effort was very nearly
nearly paralyzed by shortages
paralyzed by shortages
' of
of essential
essential raw
raw materials.
materials. The
The most
most dangerous
dangerous shortage
shortage of
of
all
all was
was that
that of
of _rubber.
rubber. ‘,
. Rubber
Rubber is,
is, of
of course,
course, basic
basic to
to an economy which
an economy which runs on
runs on
wheels,
wheels, powered
powered by
by gasoline
gasoline engines.
engines. Rubber
Rubber happens
happens also
also
to
to be
be the
the most
most important
important of
of 'the
the few
few key
key raw
raw materials
materials which
which
the United States does not possess within its own boundaries.
By far the greatest part of our rubber came from the Far
East,
East, mainly
mainly from
from Malaya
Malaya and
and the
the Dutch
Dutch East
East Indies.
Indies. As
As was
was
learned
learned personally
personally by
by all
all Americans
Americans whowho depended
depended onon auto-
auto-
motive
motive transportation,
transportation, the
the quick
quick victories
victories by
by the
the Japanese
Japanese
after
after Pearl
Pearl Harbor
Harbor cut
cut the
the United
United States
States completely
completely off
off from
from
its
its rubber
rubber supplies.
supplies.
Because
Because ofof a
a cartel
cartel ofof the
the natural
natural rubber producers, the
United
United States
States found
found itself
itself facing
facing an all-out war without an
adequate
adequate rubber
rubber stockpile.
stock-pile. And
And because
because ofof the
the operation
operation of
of
the
the IGStandard
IG-Standard Oil cartel, no
Oilicartel, no effective program
programforfor making
synthetic
synthetic rubber
rubber was
was under
under way. It took desperate last minute
steps to
steps to break
break the
the bottleneck;
bottleneck; even
even so
so the
the United
United States
States was
was
pinched for
pinched for rubber
rubber throughout
throughout thethe war.
war.
The monopoly
The monopoly of
of the
the natural
natural rubber
rubber producers
producers in the
in the Far
Far
East was
East was one
one of
of the
the tightest in
tightest and best guarded in the world.
the world.
 \
I
I

J
1

152
I52 ' IG FARBEN '
IG FARBEN
Ironically, it started
Ironically, it bit of
with aa bit
started with enterprise, almost
free enterprise,
of free to
almost to
fioint of
the point
the aimed at
piracy, aimed
of piracy, rubber monopoly
the rubber
at the held ~
then held
monopely then
producers in
by' producers
by Brazil.
in Brazil.
the hot
.In the
-In all around
belt all
hot belt world’s Equator
the world’s
around the are
there are
thator there
plants whose
plants can be
sap can
whose sap made into
be made By one
rubber. By
into rubber. the
of the
one of
freaks of
freaks 0f the of technology,
history of
the history rubbery qualities
the rubbery
technology, the of
qualities of
plants for
these plants
these centuries were
many centuries
for many only to
known only
were known Stone
to Stone
people living
Age people
Age in the
living in the valley of the
valley of the Amazon These
River. These
Amazon River.
Age people
Stone Age
Stone to collect
learned to
people learned sap of
the sap
collect the rubber
the rubber
of the
and coagulate
plant and
plant it quickly
coagulate it quickly over They did
fires. They
over fires. make
not make
did not
any great
any use of
great use rubber, but
the rubber,
of the balls made
rubber balls
but rubber them
by them
made by
to Europe
back to
brought back
were brought
were by early
Enrope by explorers.
early explorers.
the tremendous
With the
With expansion of
tremendous expansion textile production
of textile at
production at
beginning of
the beginning
the the nineteenth
of the century aa premium
nineteenth century premium was placed
was placed
finding ways
on finding
on of making
ways of making fabrics In the
waterproof. In
fabrics waterproof. 1820’s
the 1820’s
named Maclntosh
Scotsman named
aa Scotsman showed that
MaeIntosh showed rubber could
that rubber be
could be
I

, used
I waterproofing. When,
for waterproofing.
used for When, in‘ discovered
Goodyear discovered
1839, Goodyear
in' 1839,
to treat
way to
the way
the treat rubber with heat
rubber with to make
sulphur to
and sulphur
heat and make it hold
it hold
its form
its in all
form in of weather,
kinds of
all kinds weather, the in rubber
boom in
the boom rubber was ready
was ready
to start.
to start. ‘ _.1’ -' II
first rubber
The first
,, The had come
balls had
rubber balls the Amazon
from the
come from Valley.
Amazon Valley.
producers of
The producers
The held fast
Brazil held
of Brazil to their
fast to their apparently natural
apparently natural
monopoly. But
monopoly. But when the Brazilians
when the their monopoly
ran their
Brazilians ran price
monopoly price
up, the
up, incentive to
the incentive rubber in
grow rubber
to grow other parts
'in other of the
parts of belt
hot belt
the hot
became great.
became 1875, an
In 1875,
great. In named Henry
Englishman named
an Englishman Wick-
Henry Wick- I

using all
ham, using
ham, arts of
the arts
all the managed to
smuggler, managed
of aa smuggler, 70,000
hide 70,000
to hide
of the
seeds of
seeds rubberplant under
the rubberpplant cover of
under cover orchids
and orchids
ferns and
of ferns
Her Majesty
for Her
for Queen Victoria’s
Majesty Queen Gardens at
Royal Gardens
Victoria’s Royal Kew
at Kew
slip them
and slip
and past the
them past port oflicials.
Brazilian port
the Brazilian Wickham’s
officials. Wickham’s
of seeds
shipment of
shipment seeds became the foundation
became the of the
foundation of the great rubber
great rubber
of Ceylon
plantations of and Malaya.
Ceylon and Within aa few
Malaya. Within decades
few decades
\
plantations
production of
Brazilian production
Brazilian rubber was
of rubber eclipsed. In
was eclipsed. In 1910 the
1910 the
Amazon Valley
Amazon accounted for
still accounted
Valley still than aa third
more than
for more third of the
of the It

1-
world’s production
world’s out-produced the
and out-produced
production and the Far more
{by more
East -by
Far East '5

to one.
three to
than three
than one. But the turning
But the point was
turning point close at
was close The
hand, The
at hand.
/
I t

=\
""‘-.
‘-

/_'..

\
I" “tfi3,24
v
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I | .
/'

BIG FIGHT—IN
BIG FlGHT—iN WALTZ
WALTZ TIME
,
TIME 1
.
|
-- I53
153
automobile boom
automobile boom led
led to
to tremendous
tremendous demand
demand for
for rubber
rubber tires.
tires.
And
And the
the increase
increase in
in production
production took
took place
place on
on the
the Far
Far Eastern
Eastern
plantations.
plantations. ByBy 1920
1920 the
the Far
Far East
East had
had grabbed
grabbed eighty—nine
eighty-nine
per
per cent
cent of
of the world’s output
the‘world’s output and
and the
the Amazon
Amazon Valleyhad
_Valley ,had
I
I
' slipped below ten per cent. By 1930 more than ninety-seven
it
per
per cent of all
cent of all rubber
rubberin1n the.world
the.world was
was grown
grown in
in the
the Far
Far East.
East.
1
I
i A A new
new monopoly
monopoly had been established
had been established by
by ruthless
ruthless com
com-
petition
petition with
with the
the old one. And
old'one. And this
this new
new rubber
rubber monopoly
monopoly was was
better
better able
able to
to defend
defend itself
itself against
against furtherInvasions.
further invasions. In
In 1922
I
1922
the
the British
British set
set up
up aa rubber
rubber control
control program
program known
known asas the
the .
Stevenson
Stevenson Plan.
Plan. Export
Export ofof rubber
rubber was
was licensed,
licensed, production
production
was
was indirectly
indirectly controlled,
controlled, and
and prices
prices were
were boosted—largely
booste_d—largely .
at
at the
the expense
expense of
of the
the greatest
greatest buffer
buyer ofof rubber,
rubber, which
which was,
was,
of
of course,
course, the
the United
United States.
States. _
' There was only one flaw1n
flaw in the Stevenson PIan
Plan but that one
was fatal. The Dutch producers of Indonesia had not been
i

dealt
dealt into
into the
the game.
game. They
They increased
increased their
their production
production and
and
destroyed
destroyed the
the artificial
artificial shortage
shortage of
of rubber.
rubber. By
By 1928
1928 the
the Ste-
Ste-
\
venson
venson Plan
Plan had
had been
been wrecked.
wrecked. ByBy 1932,
1932, the
the price
price ofof rubber
rubber
had
had been
been forced
forced down
down to
to the
the all-time
all-time low
low ofof less
less than
than three.
three.
cents
cents aa pound
pound (as
(as compared
compared with
with aa high
high of better than
of better than three
three
dollars
dollars aa pound
pound in
in 1910).
1910). ItIt was
was time
time toto organize
organize aa really
really
effective
effective international
international cartebIn
cartel._In June
June ofof 1934
1934 the
the international
international
Rubber Regulation Committee was formed, with govern-
>mental approval, including
mental approval, including this
this time
time the,
the, British
British and
and the
the.
Dutch as
Dutch as well
well as
as all
all other
other rubber
rubber producers.
producers. Production
Production
was now
was now under
under air-tight
air-tight control;
control; even
even the
the movement
movement of of aa twig
twig
of a rubber plant could be stopped. . _
In the
i In the face
face ofof the
the international
international rubber
rubber cartel
cartel the
the U.
U. S.
S.
efforts to stock-pile rubber failed. In 1938 rubber was being
produced, by
produced, by design,
design, atat less
less than
than half
half of
of capacity.
capacity. When
When thethe _
war started,
war started, inin 1939,
1939, production,
production, was
was still
still below
below sixty
sixty
- per
per cent
cent of
of capacity.
capacity. Even
Even after
after Dunkirk,'in the last
Dunkirk,'in the last half
half of
of
1940, U.
1940, U. S.
S. buyers
buyers could
could not get a relaxation of of the
the produc-
produc-. ’
tion quotas. The British and Dutch producers figured that if .
tion quotas. The British and Dutch producers figured
 54
I1 54 IG FARBEN
[G FARBEN

chance the
any chance
by any
by full emergency
the full materialize, aa big
to materialize,
failed to
emergency failed big
stock-pile of
stock-pile of rubber
rubber in the United
in the might enable
States might
United States the
enable the
American
Americans s to prices. In
control prices.
to control half of
first half
the first
In the of 1941, with
1941, with
America
American use of
n use rubber approach
of rubber approaching ing aa million tons per
million tons year,
per year,
the stock-pil
the only be
could only
stock-pilee could increasedd by
be increase 70,000 tons.
by 70,000 tons. And
And
after Japanese took
the Japanese
after the took Singapor
Singapore in Decembe
e in December was too
it was
r it too
late
late to
to worry
worry anyany more
more about
about stock-piling.
stock-piling. -
Where the
Where cartel of
the cartel of natural producerss left
rubber producer
natural rubber off the
left off the
Standard Oil-10
Standard picked up.
cartel picked
Oil-IG cartel rubber was
Synthetic 1ubber
up. Synthetic was now
now
the hope of
only hope
the only the United
of the Without it
States. Without
United States. would be
there would
it there be
no air
no force, no
air force, no armored divisions,, and
armored divisions and the highways of
the highways of
America would
America stand complete
soon stand
would soon completely deserted. But
ly deserted. the chief
But the chief
holder of
holder patents in
rubber patents
synthetic rubber
of synthetic the U.
in the S. wasStand
U. S. was Standard ard
Oil of New
Oil of Standard had
and Standard
Jersey, and
New Jersey, debt to
had aa debt pay to
to pay to 1G
IG
Farben for
Farben having been
for having in on
cut in
been cut the hydrogen
on the ation patents
hydrogenation patents
back1n
back in 1927.
1927.
As has been
As has out, in
pointed out,
been pointed early 1930’s
the early
in the was willing
IG was
1930’s IG willing
let America
to let
to Americann companie
companies limited experime
do limited
s do experimental work with
ntal work with
synthetic rubber.
synthetic even then
But even
rubber. But licensing terms
the licensing
then the were so
terms were so
restrictedd that
restricte U. S.
the U.
that the makers were
rubber makers
S. rubber willing to
not willing
were not to
go it. A
into it.
go into few yeals
A few later, IG
years later, had the
IG had for making
process for
the process making
buna rubber far
buna rubber along so
enough along
far enough they did
that they
so that need ex-
not need
did not ex-
periment
perimentalal work done in the
work done1n the United From that
States. From
United States. point __
that point
on, no
' on, vital informat
no vital ion was
information sent to
was sent cartel partner,
IG’s cartel
to 10’s partner,
Standard Oil,
Standard even when
Oil, even requestedd it.
Standard requeste
when Standard Standard Oil
it. Standard Oil
had the
had patents, of
the patents, course, but
of course, these, without
but these, the so-called
without the so-called
“know-ho
“know-how,”w,” were
were ofof little
little value.
value.
Dr. Loehr of
Oskar Loehr
Dr. OSkar IG F
of 10 Farben testified to
arben testified to America
American n inter-
inter-
rogators
rogators that
that Standard
Standard started
started requestin
requestingg details
details 1n
in 1938.
1938. He
He
was
was asked:
asked: -
“When
“When was
was the
the first,t1me
first, time you
you turned
turned over
over the
the Buna
Buna process
process
to the America
to the Americann company ?”
company?” '' ~~
To
To which
which Dr.
Dr. Loehr
Loehr answered
answered:: “As“As far
far as
as II can
can remembe r,
remember,
we
we never
never did.
did. By
By process
process II mean
mean detailed
detailed informat ion as
information as to
to
its
its manufact ure.”
manufacture.” -

. '~54é'st 1
l ‘.
‘ \
»

FlGHT—IN WALTZ
BIG FlGHT—lN TIME
WALTZ TIME 7V I- 155
I‘ 155
Standard
Standard forfor its part developed
its part type of
another type
developed another synthetic
of synthetic
rubber,‘- butyl, which
rubber,“ butyl, was superior
which was some purposes.
for some
superior for Full
purposes. Full
details concerning butyl
details concerning sent to
were sent
butyl were Germans in
the Germans
to the spite
in spite
of fact that
the fact
of the that the traffic was
the traffic all one
was all way. As
one way. Frank
Mr. Frank
As Mr.
Howard of Standard
Howard of explained the
Standard explained in aa letter
difliculty in
the difficulty of
letter of
April, 1938:
April, 1938: . ,
“. .. .. we
“. especially careful
be especially
must be
we must careful not to make
not to move
any move
make any
whatever
whatever on on aa purely personal or
informal, personal
purely informal, or friendly basis,
friendly basis,
without
without the our friends.
of our
consent of
the consent friends. We know some
We know the
of the
some of
difficulties they
difficulties have, both
they have, from business
both from business complication and
complication and
from aa national
from in Germany,
standpoint in
national standpoint Germany, but do not
we do
but we know
not know
the whole situation
the whole —and since
situation—and the agreement
under the
since under agreement they have
they have
full over-the exploitati
control overthe
full control exploitation this process
of this
on of process the only
the only
thing we can
thing we is to
do is
can do continue to
to continue press for
to press for authority act,
to act,
authority to
in the
but in
but preserve the
loyally preserve
meantime loyally
the meantime restrictionss they
the restriction have
they have
put
put on
on us.’
us.” I -
True to
True obligationss to
their obligation
to their Nazis, Standard
the Nazis,
to the Standard sent the
sent the
butyl informatio
butyl information. But they
n. But feel any
not feel
did not
they did any obligation to
obligation to
U. S.
the U.
the 1939, after
Navy; in 1939,
S. Navy;1n outbreak of
the outbreak
after the repre-
war, aa repre-
of war,
sentative 0f
sentative the Navy’5
of the Bureau of
Navy’s Bureau of Constructi
Construction on and Repair
and Repair
visited Standard’ss laboratori
visited Standard’ laboratories and was
es and steered away
was steered from
away from
anything which
“anything clues as
give clues
might give
which might the manufactu
to the
as to manufacture of
re of
butyl.
butyl. .
Standard did
Standard not have
did not buna rubber
full buna
the full
have the information.
rubber information.
what informati
But what
But information on it did have
it did it only
have it gave to
only gave the U.
to the S.
U. S.
rubber after much
makers after
rubber makers pressure by
much pressure the governmen
by the government t when
when
war was
war already under
was already under way. for butyl
As for
way. As rubber, Standard
butyl rubber, Standard
did give full
not give
did not rights to
full rights to manufactu
manufacturere under
under' its patents
its patents
until March,19
until March, 1942; 42;accor ding to
according the report
to the report of Truman
the Truman
of the
Committee,, this
Committee did not
this did prior to
until “just prior
happen until‘‘just
not happen public
to public
before the
hearings before
hearings committee and
the committee subsequentt to
and subsequen to private
private
hearings by
hearings committee on
the committee
by the the subject.”
on the subject.” I
Altogether,, it
Altogether took investigat
it took investigations two Congressi
by two
ions by ‘Congressionalonal com-'
com-
mittees, aa special
mittees, study by
special study by Bernard Baruch at
Bernard Baruch at the request of
the request of
President Roosevelt, and
President Roosevelt, the appointme
and the appointmentnt of “rubber czar”
of aa “rubber czar”

I
_ ‘__________,,__..--*--v - .- .- ____-.-+-_+.-—_.-_-_--_---1__--V_-_,~—---—-—-—-—r--- - -
J

. \I

156
I56 l‘ ‘ , IG FARBEN
IG FARBEN
before
before the
the U
U S.
S. was
was able
able to
to break
break through the hottle-neck
through the bottle-neck
imposed
imposed by
by IG
IG with the help
with the help of
of Standard
Standard Oil.
Oil.“I
' At
At the conclusion of
theiconclusion of the
the interrogation
interrogation of
of Dr.
Dr. Loehr
Loehr in
in
Frankfurt,
Frankfurt, one
one of the American
of the American questioners
questioners asked:
asked:
“So,
“So, IG
IG was
was able
able to
to suppress
suppress completely
completely the
the synthetic
synthetic
rubber
rubber production
production in in the
the United
United States,
States, was
was able to use
able to use anan
'American
American company,
company, Standard
Standard Oil,
Oil, to
to protect
protect IG’s
IG’s patents
patents in in
the
the case of war
case of war between
between thethe United
United States
States and
and Germany
Germany and and
.. .. .. undermined
undermined the the military
military potential
potential of
of the United States
the United States
. . .13
. Is that
that right?”
right?” _
.Dr.
Dr. Loehr answered, not without dignity:
dignity: '
'1’! “These are the conclusions which seem to disclose that IG
“These are the conclusions which seem to disclose that IG
impaired
mpaired the the military
military strength
strength of
of the
the United
United States.
States. Yes.”
Yes.”
{i»~.-—::“' Naturally
1-H

Naturally enough,
enough, when
when public
public pressure started to
pressure started to grow,
grow,
Standard Oil
Standard Oil attempted
attempted toto defend
defend itself
itself by
by detailing
detailing the the valu-
valu-
able
able information
information itit had
had leceived
received from
from IG. EquallytDnaturally,
IG. Equally naturally,
though we
though we could
could not
not know
know it
it at
at the
the time,
time, when
when this
this information
information
reached
reached Germany
Germany itit caused
caused some
some commotion
commotion in 10 Farben.
in IG Farben.
Was
Was it possible that
it possible that IG, and the
IG, and the Nazi
Nazi State,
State, had
had got
got the
the worst
worst
of aa bargain
of bargain with
with the
the American
American oil oil company?
company? 1~..
The
The jumping-off
jumping-off point
point was
was an an article
article in
in the
the Petroleum
Petroleum
Times
Times forfor December
December 25,25, 1943,
1943, written
written byby R.
R. T.T. Haslam
I-Iaslam of
of
Standard
Standard Oil
Oil of
of [New
New Jersey.
Jersey. Haslam
Haslam stated
stated that
that “secrets
“secrets
brought
brought toto America
America from
from Germany
Germany fifteen
fifteen years
years ago
ago by
by
American
American scientists
scientists have been turned
have been into mighty
turned into mighty weapons
Weapons
against Germany.”
against Germany.” .
The
The answer
answer was prepaled with
was prepared with great
great thoroughness
thoroughness in
in aa
‘ report
report running
running toto nearly
nearly three
three thousand
thousand wdrds,
words, by
by aa commit-
commit-
tee of
tee of IG
IQ scientists
scientists toto A.
A. von
von Knieriem,
Knieriem, chief
chief lawyer
lawyer for
for IG
10
Farben and
Farben and aa member
member of of the
the board.
board. One
One by
by one,
one, all
all of
of
Haslam’s claims
Haslam’s claims of of benefits
benefits received
received were
were brutally
brutally de-
de-
molished.
molished. I1 '
The Farben
The Farben scientists
scientists tooktook four
four products
products which
which Haslam
Haslam
claimed Standard had learned about from IG. For each in
I detailed'facts proving that the processes were
turn, they _detailed'facts

“-\
Q
‘nu, ,4"-1.!
 I 4 I
f
t
I1

BIG' FIGHT-
BIG’ FIGHT— IN
IN WALTZ
WALTZ TIME
TIME n‘ 157
157
well known
well known to to start
start with
with and
and that
that in
in any
any case
case no
no vital
vital in-
in-
formation
formation had had been
been transmitted.
transmitted. In In connection
connection with
with iso-
iso-
octane
octane (used for high
(usedfor high test
test gasoline)
gasoline) they said:
they said: _
I
‘.‘. .. .. it
0.
it must
must bebe noted
noted that
that particularly
particularly1n the case
in the case of
of the
the It
production of
production of aviation
aviation gasoline
gasoline on
on an
an iso-octane
iso--octane basis,
basis, hardly
hardly 3.‘ IT
anything was was given
given to
to the Americans while
while wewe gained
gained aa lot”,
1 I

anything the Americans lot. ’ \

v.-

In connection
In connection withwith toluol
toluol (coal
(coal tar
tar derivative
derivative with
with many
many
uses, including
uses, the making
including the explosives) the
of explosives)
making of report con-
the report con-
cluded: , .
“Therefore, when
“Therefore, when Mr.
Mr. Haslam,
Haslam,in in connection
connection with
with Toluol,
Toluol,
talks of
talks which has
“miracle” which
of aa “miracle” to the
fallen to
has fallen the Americans through 1‘
Americans through
the hydrogenatio
the his statement
process, his
hydrogenationn process, statement is correct; for
not correct;
is not for
Toluol, as
Toluol, as can seen from
be seen
can be above, can
the above,
from the can be produced with-
be produced with-.
hydrogenation'and is
out hydrogenationand
out any case
in any
is in case not produced by
not produced hydro-
by hydro-
genation in
genation America.”
in America.” ¢r
In the case
In the of oppanol
case of (for top
Oppanol (for lubricants)::
quality lubricants)
top quality
“ItIS here too
evident here that the
too that Americans were
the Americans were not properly
not properly
-

‘
“It is evident -
r

..- -1
1

informed about
informed about the development here,
the development which is
here, which explained
is explained

'n‘_——' n..'_ -—
by the
by fact that
the fact them in
left them
we left
that we ignorance of
,in ignorance of the that,
fact that,
the fact
using coal base,‘ we
as aa base,
coal as produce the
ourselves produce
we. ourselves materials
raw materials
the raw
—_an.-1 .-_ ,-
using -:.s'—xt_.'-*_—- -"

for production.”
Oppanol production.”
for Oppanol .
Finally,in
Finally, with buna
connection with
1n connection rubber, the
buna rubber, the report repeats
report repeats
the already established
the already fact that
established fact no technical
that no information
technical information
, was transmitted beyond
was transmitted beyond thethe patents
patents themselves.
themselves. _ _
Still
Still not
not satisfied
satisfied that
that they
they had
had thoroughly
thoroughly demonstrated
demonstrated
IG’s
IG’s contribution
contribution to
to the
the Hitler
Hitler Reich,
Reich, the
the IG
IG scientists
scientists went
went On
on
to list some
to list some ofof the gains which
the gains which they had made
they had made through
through
Standard
Standard Oil’s
Oil’s co-operation.
co-operation. They
They spoke
spoke of
of lead
lead tetraethyl,
tetraethyl,
Mm
Mn ‘1’”!

(also
(also for
for aviation
aviation gasoline)
gasoline) without
without which
which ‘.‘the
“the present
present method
method
of
of Warfare'would
warfare ' would be be unthinkable.”
unthinkable.” They
They mentioned
mentioned that
that I ‘I-n-:4-. ,_-4 ,-_.

“.
“. .. .. the
the diflicnlt
difficult work
work of of development
development (one
(one need only recall
recall
SIv-r.>-4—--F

need only
the
the poisonous
poisonous property
property of lead tetraethyl,
of lead tetraethyl, which
which caused
caused many
many
deaths in
deaths in the
the U.S.A.)
U.S.A.) was was spared
spared us,
us, since
since we
we could take up
could take up
w-..»

the manufacture
manufacture of ofiA this
this product
product together
together with
with all
all the
the experi-
experi-
- ... _...—-

the
ence thatthat the
the Americans
Americans had had gathered
gathered over
over long
long years.”
years.”
__.._ -

ence --.-'

_, .
v *5». 1—.

_.,-_-.-v_ .
___________._—-
I

158
158 ,, [G FARBEN
IG FARBEN
The
The report
report mentions other knowledge
mentions other knowledge of
of oil
oil products gained
products gained
from Standard
from Standard and
and then
then concludes
concludes with
with an
an account
account of
of one
one
of the
of the Germans’
Germans’ most
most spectacular
spectacular victories.
victories. IG
IG was
was able
able to
to
build up
build up aa gasoline
gasoline stock-pile
stock—pile for
for the
the Nazi
Nazi government
government far
far
beyond any
beyond any possible
possible needs
needs ofof its
its own,
own, with
with the
the aid
aid of
of
Standard:
Standard: '' '
“The German
“The German government
government asked
asked IG
IG if
if it
it were
were not
not possible,
possible,
on the
on the basis
basis of
of its
its friendly
friendly relations
relations with
with Standard
Standard Oil,
Oil, to
to
buy [$20
buy [$20 million
million worth
worth of
of aviation
aviation gasoline
gasoline and
and oil]
oil] as
as IG-—-
IG—
[i.e., under
[i.e., under its
its own
own name]
name] actually
actually however,
however, as
as trustee
trustee of
of
the German
the German government.
government.
fIt 64“The
i fact that
The fact that we
we actually
actually succeeded
succeeded.. . ..was made possible
was made possible
i only through the
the aid
aid of
of the
the Standard
Standard Oil
Oil Co.”
Co. ”
1

only through
1I

It might
It might be
be argued
argued that
that the
the IG
IG men
men wrote
wrote this
this report
report to
to keep
keep
the Nazis
the Nazis happy.
happy. But
But the
the facts
facts in
in it
it were
were confirmed
confirmed byby IG
IG
H oflicials
oflicials when
when there
there were
were no
no longer
longer Nazis
Nazis to
to please
please but
but only
only
3‘Z'1 American
American investigators.
,. ,._ -,.¢-. 1- ----‘

investigators.
tI
- , .. It
It is
is characteristic
characteristic of American government
of American government bureaucracy
bureaucracy
. 3 a; that
hat 110
no indictment
indictment can
,¢-,1
can ever be made
ever be made bluntly
0-F bluntly or
or forthrightly
forthrightly
—if the
the organization
organization indicted
indicted is
is big
big enough
enough and
and respectable
respectable
|

’i\,I
\- -—if
enough.
,\
enough.
The deal
The deal between
between Standard
Standard Oil Oil and
and IGIG Farben
Farben has has been
been
cove1edin
covered in several
several government
government reports,
reports, largely
largely based
based onon ex-ex-
cellent investigation
cellent investigation byby the
the U.U. S.
S. Treasury
Treasury andand the
the Depart-
Depart-
ment of
-ment of Justice.
Justice. But
But through
through the the language
language of of the
the reports
reports
emerges aa pathetic
emerges pathetic picture
picture ofof aa lumbering
lumbering colossus
colossus ofof aa com-
com-
a pany,
pany, vaguely
vaguely mixing
mixing into
into high
high international
international affairs,
affairs, blunder-
blundef-
ingly giving
ingly giving aid
aid and
and comfort
comfort to to fascists,
fascists; without
without knowing
knowing ex- ex-
actly what
actly what it
it was
was doing.
doing. -
Thus the
Thus the Assistant
Assistant Attorney
Attorney General,
General, Wendell
Wendell Berge,
Berge,in 1n aa
book which
book whichis 15 otherwise
otherwise aa strong
strong and
and courageous
courageous indictment
indictment
of cartels, remarks: ' '
'' “The
“The ambiguous
ambiguous [1] position
position in which Standard found it-
self arises
self arises from
from the
the fact
fact that
that Standard never considered
Standard never considered that
4-.
on
-

ix

/I M “*-.5 _/-.,__;
 » .

BIG FlGHT—IN WALTZ

BIG FIGHT—-IN TIME
WALTZ TIME es 159
I59
it
it was making foreign
was making foreign policy, or took
policy, or took into account the
into account the political
political
implications of
implications of its
its acts.
acts. We
We neither
neither expect
expect nor
nor require
require this
this
of our
of our businessmen.
businessmen. After
After all,
all, they
they are
are not
not supposed
supposed to
to have
have
such responsibility.”
such’ responsibility.”
'' Berge’s
Berge’s predecessor,
predecessor, Thurman
Thurman Arnold,
Arnold, wrote
wrote that:
that: “The
“The
cartels of
cartels of the
the democracy
democracy were
were easy
easy dupes.”
dupes.” "'
report of
The report
The the Truman
of the after building
Committee, after
Truman Committee, up aa
building up
powerful
powerful attack
attack against
against Standard
Standard Oil’s
Oil’s part
part in
in the
the rubber
rubber
shortage,
shortage, says:
says:
”’ “At
“At the
the outset
outset it
it should
should be
be stated
stated that
that there
there is
is no
no question
question
of
of moral
moral turpitude
turpitude or
or of
of subjective
subjective unpatriotie
unpatriotic motive
motive on
on the
the
part
part of
of Standard,
Standard, or or of
of any
any of
of its
its officials.
officials. .. .. y.
“. .. .. it
“. would be
it would be unfair view the
to view
unfair to actions ex-
individual actions
the individual ex-
cept as
cept of aa general
part of
as part of big
picture of
general picture playing the
business playing
big business the
game
game according
according to
to the
the rules
rules as
as the Standard construed-
the Standard construed
them. . .” '
Small fry
Small and saboteurs
spies and
fry spies were not
saboteurs were treated so
not treated tenderly.
so tenderly.
It would
It would appear, at least
appear, at least to writer, that
this writer,
to this successful
that successful
executives may
business executives
business be as
may be as government
clever as
as clever inVesti-
government investi-
If aa research
gators; If
gators. for the
man for
research man Treasury or
the Treasury or the Department
the Department
Justice can
of Justice
of understand that
can understand was aa connection
there was
that there between
connection between
Standard-IG deal
the Standard-IG
the sabotaging of
the sabotaging
and the
deal and the U.
of the S. war
U. S. war
against Nazi
effort against
effort Germany, officials
Nazi Germany, Standard Oil
of Standard
officials of might
Oil might
able to
be able
also be
also see the
to see Otherwise we
connection. Otherwise
the connection. would be
we would he
to conclude
forced to
forced that great
conclude that have been
corporations have
great corporations built
been built
by guess
by and luck
guess and without an
luck without an ounce brain in
of brain
ounce of of
carload of
in aa carload
directors. If
directors. the oflicials
If the of Standard
officials of Standard did know what
did know they
what they
doing, we
were doing,
were only conclude
can only
we can they did
that they
conclude that care.
not care.
did not
In
In any
any case,
case, whether
whether or
or not
not Standard
Standard Oil
Oil was
was sleep-walking
sleep-walking _
when
when it it all
all happened,
happened, there
there is
is no
no evidence
evidence of
of aa decision
decision to
to do
do
things any
things any differently
differently in
in the
the future.
future. At At the
the annual
annual meeting
meeting
rw... .M-nfl"
_.__.. -w-

of Standard
of Standard Oil Oil in
in June,
June, 1943,
1943, aa stockholder moved that:
stockholder moved that: -In-I¢"

“. .. .. the
“. the Standard
Standard Oil Co. .. _..- .. shall
Oil Co. shall not
not resume
resume cartel
cartel re-
re- r-¢-A
,_.__¢-, t-I

lations with
lations with IG
IG Farbenindustrie
Farhenindustrie after
after the
the war.”
war.”
The chairman
The chairman argued
argued against
against the
the proposal
proposal on
on the
the grounds
grounds
jm _ _ -—-

160
I60 n, p‘ IG FARBEN
that “We
that “We do
do not
not know
know what
what business
business conditions
conditions will
will be
be in
in the
the
post-war world. We do not know how the very intricate and
post-war world. We do not know how the very intricate and
complicated problems
complicated problems of of international
international trade
trade are
are going
going toto be
be
solved.” It
solved.” It might
might eveneven be,
be, the
the chairman
chairman continued,
continued, that
that the
the
governmentwould want
governmentwould want them
them toto get
get into cartels.
into cartels.
Accordingly
Accordingly the chairman was
_tl1e chairman was asked
asked if if he
he would
would agree
agree if if
the
the Ihotion
motion were
were amended
amended to to provide:
provide:
“that
“that we
we will
will not
not enter
enter into
into cartel arrangements after
cartel arrangements after the
the
war with
war with IG
IG Farben
Farben unless
unless compelled
compelled to to do
do so
so by
by the United
the United
States Government.”
States Government.”
f And the
And the chairman
chairman stillstill answered:
answered: ‘
l “No,
“No, sir:
sir: II will
will not.”
not.”
i
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Against the
Against the New
New World
World , J
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Outside of
Outside the biggest
Europe, the
of Europe, biggest concentration of IG
concentration of Farben
IG Farben
America.
J

was in
subsidiaries was
camouflaged subsidiaries Latin America.
in Latin

a
and camouflaged
agencies and
agencies
Here, as
' Here, IG saw
as IG was the
it, was
saw it, market, and
future market,
the future accord-
here, accord-
and here,
ing to the
ingto Order Plan,
New Order
the New would have
IG would
Plan, IG to do
have to with '
battle with
do battle t

the United
the States. Accordingly
United States. Accordingly, IG set
, 10 set up its outposts
up its each
in each
outposts in
Central‘
throughout Central
‘ .

of the ten
of the American countries
South American
ten South and throughout
countries and
America.
America. _ . ' »»
- Altogether were at
there were
Altogether there least one hundred
at leastone hundredand and seventeen
seventeen
'10 branches 1n
IG branches in Latin which can
America which
Latin America can be be named.
named. ‘AndAnd there
there
were dozens of
were dozens names are
whose names
others whose
of others held 1n
being held
are being U. 5.
in U. S.
government files
government pending legal
files pending actions. In
legal actions. In general, these were
general, these were
outlets. There
sales outlets.
sales only aa few
were only
There were manufacturing plants
few manufacturing plants \
because for
because the most
forithe part IG
most part did not
IG did care to
not care future
breed future
to breed
Production was
rivals. Production
rivals. business of
the business
was the Germans. Let
of Germans. others
Let others
specifically, the
More specifically,
buy. More
buy. the IG. Order'Plan for
New Order'Plan
10 New world
for world
stated frankly
conquest stated
conquest should be
there should
that there
frankly that as little
be as military
little military
production as
production possible in
as possible in Latin because it
'America because
Latin America might
it might
some day
some day be used to
he used to help United States.
the United
help the chemical
Any chemical
States. Any
production might be useful in war. It is true that in 1938,
161
I61
I .
-w-:nr— _,,-
, .

I62 --
162 _. IG FARBEN
IG FARBEN

arranged for
IG arranged
IG for construction of aa powder
construction of plant in
powder plant Argentina
in Argentina
by subsidiary Koeln‘Rottwe
its subsidiary
by its il—but if
Koeln-Rottweil——but that had
if that had not been
not been
done, the
done, would have
contract would
the contract to English
gone to
have gone North Ameri—
or North
English or Ameri-
can
can firms.
firms. -
For
For the
the entire
entire period
period between
between the
the world
world wars,wars, IG
IG operated
operated
- in conspiratorial manner
in aa conspiratorial manner in America. Most
Latin America.
in Latin Most ofof its
its
K outlets were camouflaged
outlets were the general
along the
camouflaged along lines described
general lines described
’ in an
in chapter; that
earlier chapter;
an earlier gave the
they gave
is, they
that is, appearance of
the appearance of
independent firms
being independent
being owned by
firms owned citizens of
by citizens the country
of the country
in which
in they were
which they were located. was good
This was
located. This business: it
good business: it was
was
way out
aa way paying taxes
of paying
out of aimed at
taxes aimed at foreign And it
concerns. And
foreign concerns. it
was sound
was warfare. IG
economic warfare.
sound economic forgot the
never forgot
IG never the way‘its
waytits
assets had
foreign assets
foreign been taken
had been by the
over by
taken over during World
Allies during
the Allies World
War
War I, I, and
and another
another war
war was
was always
always clearly
clearly in in sight.
sight. , .
used its
IG used
IG foothold in
its foothold America to
Latin America
in Latin money. But
make money.
to make But
there were
there purposes as
other purposes
were other The whole
well. The
as well. of the
pattern of
whole pattern the
economic war
economic the 1930’s
of the
war of demonstrated in
was demonstrated
1930’s was the Americas.
in the Americas.
The IG
The were centers
branches were
IG branches propaganda, in
Nazi propaganda,
of Nazi
centers of in the
the
hemisphere as
Western hemisphere
Western well as
as well else in
everywhere else
as everywhere the world.
in the world.
I from the
Under instructions from Nazi propaganda
the Nazi center, the
propaganda center, the
Ausschuss, IG
Auf/claerung Ausschuss,
Auflclaerung IG was in spreading
active in
was active the Nazi
spreading the Nazi
word ’through
word the press,
‘through the and libraries
schools, and
press, schools, of Latin'
libraries of Latin
America. As
America. As aa business organization its
business organization best propaganda
its best propaganda
weapon and
weapon best club
its best
and its heads of
the heads
over the
club over publishers was
of publishers was
advertising. Accordingly,
advertising. in February,
Accordingly, in 1938, the
February, 1938, IG drug
the IG drug
department aimed
department the following
aimed the directive at
secret directive
following secret the Latin
at the Latin
American
American press:
press: , --
“Advertising in
“Advertising journals hostile
in journals to Germany.
hostile to shall on
Germany . . .. shall on
all terms
all be avoided.
terms be Commercial and
avoided. Commercial advertising censider-
and advertising consider-
ations have
ations be put
to be
have to background as
the background
in the
put in compared with
as compared with
the
the more
more important
important political
political point
point of
of view.”
view.”
Between
Between February,
February, 1938,
1938, and
and March,
March, 1939,
1939, the
the Aufklae-
Aufklae-
rungs
rungs Ausschuss
Ausschuss had
had managed
managed toto farm
farm out
out to
to the
the newspapers
newspapers
of
of Argentina
Argentina the
the impressive
impressive total
total of
of three
three hundred
hundred and
and eighty-
eighty-
one
one articles
articles on
on the
the general
general theme,
theme, “Struggle
“Struggle against
against the
the
I,
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' 1

AGAINST THE
AGAINST NEW WORLD
THE NEW WORLD .. 163
I63
United States
United States in America.” A
Latin America.”
in Latin A file of these
file of was
articles was
these articles
sent IG with
to 10
sent to request for
the request
with the comments, improvements
for comments, improvements,, and
and
further distribution. IG
further distribution. answered, suggesting
IG answered, further news-
suggesting further news-
papers which
papers use the
could use
which could and assigned
material, and
the material, its chief
assigned its chief
agent‘ in
agent Argentina, Heinrich
in Argentina, Homann, to
Heinrich Homann, to help in spreading
help in spreading
the
the word.
word. I
' Propaganda costs
Propaganda money. IG
costs money. perfectly willing
was perfectly
IG was to sup-
willing to sup-
port Nazi agents
port Nazi cash. According
with cash.
agents With the report
to the
According to one of
of one
report of of
the IG
the Farben men
IG Farben men the agencies of
American agencies
Latin American
the Latin IG were
of IG were
ordered to
ordered to set secret bank
up secret
set up in the
accounts in
bank accounts names of
the names of aa few
few
highly placed
highly individuals. The
placed individuals. known in
were known
accounts were
The accounts in the
the
IG reports
IG simply as
reports simply as “8” accounts and
cash accounts
“S” cash be used
could be
and could used
for any sort
for any confidential payments—u—br
of confidential
sort of ibes, in
payments——-bribes, in clearer
clearer
languagehwi thout danger
language-——with0ut danger toto 1G.
IG.
Sometimes the
Sometimes request for
the request came directly
cash came
for cash from aa branch
directly from branch
of the
of government. In
German government.
the German September, 1939,
In September, wire came
1939, aa wire came
to Frankfurt
to from an
Frankfurt from agency in
IG agency
an IG Mexico, saying:
in Mexico, saying:
“In case
“In war Legation
of war
case of firms. [in]
asks firms.
Legation asks Mexico to
[in] Mexico to let
let
them have
them moneys on
have moneys on aa loan Amounts shall
basis. Amounts
loan basis. be refunded
shall be refunded
by Government. Please
German Government.
by German Please authorize monthly payments
authorize monthly payments
P
P 10,000
10,000 on on behalf
‘behalf of
of all
all IG
IG agencies.”
agencies.” .
When the
When was found1n
wire was
the’ wire Frankfurt files
the Frankfurt
found in the by Ameri-
files by Ameri-
investigators, it
can investigators,
can it bore handwritten note:
the handwritten
bore the “Board agree-
note: “Board agree-
able—Dr.
able—Dr. Overhoff
Overhoff informed.”
informed.”
As mentioned
As economic war,
earlier, economic
_mentioned earlier, waged by
as waged
war, as the IG,
by the IG,
passed from
passed propaganda and
from propaganda agitation to
political agitation
Nazi political
and Nazi to out-
out-
espionage. In
right espionage.
right In Latin America, Max
Latin America, Ilgner’s special
Max Ilgner’5 special
agents, the
agents, the Verbindungs
Verbindungsmaenner, spies. Ilgner,.
as spies.
acted as
maenner, acted llgner,.un-un-
interrogation,, named
der interrogation
der several of
named several of his Latin American
his Latin American
agents:
agents: H. H. M.
M. Fischer,
Fischer, aa dyestuffs representative,, who
dyestuffs representative who waswas
president of the German Club
the German Club of Mexico City;
of Mexico von Humboldt,
City; von Humboldt,
another agent in
another agent in Mexico;
Mexico;.de Margerie of
de Margerie of the drug or-
Bayer drug
the Bayer or-
ganization, aa Nazi
ganization, Venezuela; and
leader in Venezuela;
Nazi leader1n and Kaelhle, also aa
Kaelble, also
Bayer man,
Bayer president of
man, president chamber of
German chamber
the German
of the of commerce
commerce
Rio de
in Rio
in Janeiro.- In
de Janeiro.— own wbrds,
Ilgner’s own
In Ilgner’s were examples
these were
words, these examples
,,,,.,,.,._.___-r .-i
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._ _1 ' I

164
164 F _J ' I1 IG FARBEN
IG FARBEN
|

of IG
of IO men
men who
who “.
“. .. .. kept
kept leading
leading posts
posts as
as members
members of
of the
the
‘Auslandsorganization
‘Auslandsorganization der
der NSDAP’
NSDAP’ [Nazi
[Nazi foreign
foreign agency].”
agency].” ‘
When
When World
World War
War II
II drew
drew closer IG Farben
closer IG Farben found
found it
it neces-
neces-
sary
sary to
to improve
improve its
its camouflage
camouflage and
and tighten
tighten up
up its
its whole
whole foreign
foreign
organizati011.As
organization. .As was
was stated
stated in
»in aa report
report written
written to
to the
the Ger-
Ger-
man
man Ministry
Ministry of of Economics
Economics in in 1940.
1940. ,
“. .. .. about
“. about 1937,
1937, as as the
the danger
danger of of aa new
new conflict
conflict was
was apap-
/ pearing
pearing more more and more, we,
and more, we, endeavored
endeavored to to improve
improve the the
measures of
measures of camouflage
camouflage made made by by us,
us, especially
especially inin the
the en-
en-
dangered
dangered countries
countries .. .. .. Even
Even the delay of
the delay of the’confiscation
theconfiscation for for -
some months
some months means
ineans for
for us us .. .. .. an
an extraordinary
extraordinary advantage;
advantage:
<
According to
According to our
our experiences
experiences hitherto, hitherto, our
our measures
measures for_for_
camouflage
camouflage havehave proved
proved to to be
be very
very good
good during
during the
the war,
war, and
and
have even
have even surpassed
surpassed our
our expectation
expectation in in numerous cases.”
numerous cases.”
I
IG took
IG took aa long
long view
view -of
'of the
the struggle for control
struggle for control of
of Latin
Latin

4-...9-
Americanmarkets.
American-markets. The
The United
United States
States was
was the
the main
main rival,
rival, but
but
in
in thinking
thinking ahead
ahead to.
to. the
the period
period after
after the
the war
war itit was
was also
also

;
worried
worried about
about its
its Japanese
Japanese allies.
allies. As
As ‘an
‘an IG
IG report
report toto the
the
Ministry
Ministry of
of Economics
Economics stated:
stated: “In
“In view
view of
of the
the serious struggle
serious struggle
with
with the
the producers
producers ofof chemicals
chemicals of other economic
of other economic empires,‘
empires,
especially
especially America
America and Japan, for
and Japan, for the
the dividing
dividing up of world
up of world
markets, a struggle which is most certainly to be expected, a
, mere
mere financial
financial compensation
compensation after
after the
the war
war for
for possible
possible losses
losses
will
will not
not suffice
suffice to
to cover
cover the
the damages,
damages, whichwhich must
must necessarily
necessarily
occur,
occur, if
if the
the above-mentioned
above-mentioned sales
sales organizations
organizations and
and the'1n-
the in-
dustrial
dustrial strong
strong points
points would
would fall,
fall, if
if only
only temporarily
temporarily into
into
strange
strange hands.
hands. .. ..” ._
9,
R‘ I
The
The Farben official
official most responsible for Latin American
trade, Julius Overhofi',
Overhoff, felt that there was ‘a a fair chance of
prodding the
prodding the Latin
Latin American
American governments
governments into
into resisting
resisting pres-
pres-
I
sure from
sure from the
the United
United States,
States, but
but only
only if
if camouflage
camouflage were
were im-'
im-’ \

proved. As Overhoff wrote

wrote to
I
1
proved. As Overhoff to the
the IG
IG Commercial Committee
Commercial Committee
' in
~
in September,
September, 194-1:
1941: -
I “The Latin-American Governments
“The Latin-American Governments give in not without
hesitation
hesitation to
to the
the pressure
pressure brought
brought to
to hear
bear by the United
by the United States.
States.
4
\
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' - AGAINST,
AGAINST THE
THE NEW
NEW 'WORLD
'WORLD .. ,, 165
I65
'If we want
If we want to
to help
help them
them in
in their
their resistance
resistance against
against aa closing!
closing
. or
or aa seizure
seizure of
of our
our strongholds,
strongholds, we
we can
can achieve
achieve this
this only
only by
by
proving that
proving that the
the firms
firms in in question
question are are 100%
100% national,
national, if if eyer
ever
their structure
their structure should
should be be examined.
examined. Any Any mistake
mistake thatthat wewe will
will
make as
make as to
to the
the outer
outer appearance
appearance of of such
such firms
firms will will be'ex-
be'ex-
- ploited
ploited toto the
the fullest
fullest extent:by
extentby propaganda
propaganda and and will
will eventually
eventually
furnish aa means
furnish means of of tightening
tightening the the rope
rope around
around our our necks.”
necks.”
By way
By Way of of rounding
rounding,r outout its
its system
system of of‘‘strong points,” IG
“strong points,” IG
acquired control
acquired control of of several
several additional
additional manufacturing
manufacturing estab- estab-
lishments such
lishments such as as the
the Fluminense
Flummense1n Brazil, Inquico
in Brazil, Inquico1n Colom-
in Colom-
bia, and
bia, and aa concern
concern in in Chile.
Chile. A A main
main purpose
purpose in in taking
taking overover
these firms
these firms was was toto head
head offoff North
North American
American competition.
competition. As As
an IG'report
an IG report said: said: “We“Wemay point out
may point out that
that some
some of of these
these
enterprises, as,
enterprises, as, for
for example,
example, the the ‘Fluminense’
Fluminense in in Brazil,
Brazil, were
were
acquired after
acquired after strong
strong competition
competition with with the
the important
important Ameri-Ameri-
can chemical
can chemical industry
industry (Du (Du PontPont de de Nemours).
Nemours). Apparently
Apparently
the North
the North American
American industry
industry has has also
also recognized
recognized the the impor-
impor-
tance of
tance of these
these strong
strong points.”
points.”
To \improve
To \improve its its camouflage
camouflage IG IG took
took two
two main
main steps.
steps. For-
For-
merly, there
merly, there hadhad been
been direct‘
direct‘contracts between IG
contracts between IG andand itsitS'
front-men in
front-men in the
the foreign
foreign countries.
countries. These
These contracts
contracts were were re- re-
placed with
placed with more
more hidden
hidden agreements
agreements which which could
could not not bebe re-
re-
vealed by
vealed by inspection.
inspection. Secondly,
Secondly, front-men
front-men who who had'outlived
had'outlived
their usefulness
their usefulness were were replaced.
replaced. One One of of the
the main
main camoufleurs
camoufleurs
for IG was Dietrich A. Schmitz, brother of the IG president
for IG was Dietrich A. Schmitz, brother of the IG president
Hermann Schmitz.
Hermann sehmitz. Dietrich
Dietrich Schmitz
Schmitz was was anan American citizen.
American-citizen.
He was also IG’s IG’S main trustee for shares of camouflaged com-
panies, throughout
panies, throughout the the Americas.
Americas. But But in spite of
in spite of his
his American
American
citizenship his
citizenship his relationship
relationship to to Hermann
Hermann Schmitz
Schmitz was was aa little
little
too close
too close toto pass.
pass. ItIt might
might suggest
suggest thatthat some
some connection
connection existed
existed
between Brothers
between Brothers Dietrich
Dietrich and and Hermann.
Hermann. Accordingly,
Accordingly, Die- Die-
trich Schmitz’s
trich Schmitz’s sharesshares werewere transferred
transferred to to other
other hands.
hands.
The major problem now was to continue shipping supplies
to the
to the Latin
Latin American
American agencies.
agencies. No No matter
matter how
how effective
effective the the
"camouflage
camouflage had had been,
been, ifif the
the IC
IG could
could notnot get
get its goods through
its goods through
i .
\

I /
 use
166 _ _ 16 FARBEN
IG FARBEN
the blockade
the blockade set
set up
up by
by the
the British,
British, IG1G outlets
outlets would
would either
either
starve or--—worst
starve or-u—worst of
of all——use
all—use the the goods
goodsof British and
of British and Ameri-
Ameri-
can
can competitors.
competitors. . _ . ‘
Systematically,
Systematically, IG
IG Farben
Farben set set out
out to
to break
break the
the blockade.
blockade.
It succeeded
It succeeded so
so well
well that
that its
its sales
sales in
in Latin
Latin America
America actually
actually
increasedfrom
increased -from 1938 through 1941!
1938 through 1941! InIn 1938
1938 IG
1G sold
sold 29.3
29.3
million marks
million marks worth
worth of
of dyes
dyes and
and chemicals
chemicals toto Latin
Latin America.
America.
For 1941,
For 1941, after
after there
there had
had been
been two
two years
years in
in which
which to
to perfect
perfect
the blockade,
the blockade, the
the total
total sales
sales had
had risen
risen to
to nearly
nearly forty
forty million
million
marks.
marks. "'
IG used
IG used every
every known
known method
method of of smuggling
smuggling and and invented
invented aa
few new
few new methods.
methods. In part, German
In part, German government
government blockade
blockade
runners_
runners_ were
were used.
used. Before
Before Italy
Italy entered
entered the
the war,
war, dyestuffs
dyestuffs
were
were shipped
shipped from Italy to
from Italy to South
South America
America by by parcel
parcel post.
post.
Some
Some 1G IG goods
goods were
were shipped
shipped in in neutral
neutral vessels
vessels from
from Dutch
Dutch
and
and Italian
Italian ports.
ports. To
To the
the very
very end
end of
of the
the war
war IGIG products
products
went
went out
out of
of Spain
Spain under
under cover
cover ofof Spanish
Spanish labels.
labels.
But IG’s best resource was its friends in the United States.
According
According to the New
to the New Order
Order Plan,
Plan, the
the United
United States was the
States was the
main
main rival
rival and
and the
the Latin
Latin American
American market
market was the center
was the of
center of
the rivalry.
the rivalry. ItIt was
was doubly
doubly satisfactory,
satisfactory, then,
then, toto maintain
maintain Ger-
Ger-
man sales outposts in Latin America, at the expense of the
United
United States,
States, through
through the
the aid
aid of
of allies
allies in
in North
North America.
America.
Goods
Goods were
were shipped
shipped forfor IG’s Latin American
IG’s Latin American customers
customers
by American firms
by American firms which pretended to
which pretended to be
be independent
independent and and
therefore not
therefore not subject
subject to blockade‘like General
to blockade—-—like General Aniline
Aniline and
and
Film. Here
Film. Here is
is aa description
description of
of the
the system in the
system in the words
words of
of an
an
1G
IG memorandum:
memorandum: ,J
“The most important
“The most source of
important source of delivery
delivery in
in the
the very near
very near
future will
future will undoubtedly
undoubtedly be
be the
the United
United States
States ofof America.
America. As
As
the matter
the matter stands,
stands, Fezandie
Fezandie &81 Sperrle
Sperrle [U.
[U. S.
S. exporters]
exporters] may
may
appear
appear as
as suitable
suitable suppliers which receive
suppliers which receive the goods from
the goods from
GAW
GAW (General
(General Aniline
Aniline Works)
Works) andand CDC
GDC (General
(General Dyestuffs
Dyestuffs
Corp.)
Corp.) and
and also
also in
in accord
accord With
with Messrs.
Messrs. Halbach
Halbach and
and Mill
Mill shall
shall
' buy
buy from
from the
the dealers
dealers and
and remaining
remaining producers.
producers. By
By Fezandie
Fezandie
t

-A "it
AGAINST THE NEW WORLD 167
&,Sperrle
&,Sperrle the whole shipments
the whole shipments are sent to
are sent to Latin
Latin America
Ameriea
under neutral denomination,
under neutral denomination, i.e.,
i.e., also
also not
not under
under IG
IG registered
registered
trade-marks, such
trade-marks, such asas Indanthren.
Indanthren. .. .. etc.
etc. The
The agencies
agencies sell sell all
all
the foreign
the foreign goods
goods under
under their
their own
own denomination.
denomination. By By this
this way
way
an endangering
an endangering of of our
our trade-marks
trade-marks is is not
not to
to be
be feared.”
feared.”
It will
It will be
be noted
noted that
that the
the memorandum
memorandum mentionsmentions Mr. Mr. Hal-
Hal-
hach of
bach of the
the General
General Dyestuffs
Dyestuffs Corporation
Corporation which
which was was part
part of of
General Aniline
General Aniline and
and Film
Film andand previously
previously partpart of of American
American
IG. In
IG. In another
another IGIG report
report aa fewfew months
months later,
later, Mr. Mr. Halbach
Halbach
is praised
is praised for for his
his good
good services:
services: ' I‘
“. . .. II may
may especially
especially express
express here
here the
the friendly
friendly attitude
attitude
and fair
and fair cooperation
cooperation noticeable
noticeable with
with Mr.Mr. Halbach
Halbach and and Mr.Mr.
Neisser (both
Neisser (both of
of General
General Dyestuffs
Dyestuffs Corporation)
Corporation) who who trytry to
to
help as
help as much
much asas they
they can.
can. .. .”
.”
This praise
"This praise deserves
deserves mention.
mention. A A few
few years
years later,
later, when
when
General Aniline
General Aniline and
and Film
Film was
was taken
taken over
over by
by the
the U. U. S.
S. Alien
Alien
Property Custodian
Property Custodian andand placed
placed under
under newnew management,
management, the the
same Mr.
same Mr. Halbach
Halbach waswas retained
retained as as aa consultant:
consultant: he he waswas
deemed indispensable.
deemed indispensable. The
The compliments
compliments to to Mr.
Mr. Halbach
Halhach ap- ap-
pear only
pear only fair.
fair. It
It is
is no
no mean
mean feat
feat to
to please
please both
both sides
sides in
in aa
deadly fight.
deadly fight. If
If the
the parallel
parallel is
is not
not too
too painful,
painful, it
it may
may also
also
be noted
be noted that
that one
one of
of the
the main
main arguments
arguments against
against denazification
denazification
in the
in the U.
U. S.
S. Zone
Zone ofof Occupation
Occupation in in Germany
Germany was was that
that thethe
key
key Nazis
Nazis were indispensable. Without
were indispensable. Without them,
them, things
things would
would =‘- 3
collapse.
collapse.
A
A central
central figure
figure inin the
the maintaining
maintaining ofof IG’s Latin American
IG’s Latin American
trade outlets
trade outlets was
was aa citizen
citizen of Argentina, Alfriehclbohwlljlpull.
of Argentina, Almotho}1.Moll Moll
had been
had been aa co-manager
co-manager of of one
one of
of the
the prirIcipaluIGm
pririhipaluICm agencies
agencies
in South
in South America,
America, Anilinas
Anilinas Alemanas
Alemanas of of Buenos
Buenos Aires.
Aires. In In
1940 he
19410 he was
was called
called to
to Europe,
Europe, and
and inin conferences
conferences in in Italy
Italy
and Switzerland
and Switzerland he he was
was briefed
briefed onon the
the work
work he he was
was toto dodo as
as
an undercover
an undercover purchasing
purchasing agent
agent in
in New
New York.
York. _
For several
For several months
months there
there was
was no specific information
no specific information from from
Moll. The
Moll. The IGIG men
men inin Frankfurt
Frankfurt andand Berlin
Berlin began
began to to worry.
worry. .
Through
Through an an IG
IG man
man who
who waswas an American. citizen,
an American. citizen, Richard
Richard
 168
168 [G FARBEN
[G FARBEN

Metz, they asked

Metz, they Moll turn
that Moll
asked that report. The
in aa report.
turn in request
The request
stated:
stated: ._
would be
It would
“. . .. It very suitable
be very this report
if this
suitable if sent off
was sent
report was off
Mexico or
from Mexico
from made out
even made
or even Mexico for
in Mexico
out in for reforwardi
reforwardingng
in neutral form
in neutral Peru or
via Peru
form via would be
It would
Brazil. It
or Brazil. advisable for
be advisable for
Mr. Moll to
Mr. Moll make use
to make of aa short
use of leave to
short leave travel by
to travel to
auto to
by auto
Mexico. . .”
Moll took his
Moll took holiday in
his holiday Mexico, as
in Mexico, and in
requested, and
as requested, in
December, 1940,
December, sent from
1940, sent reports. IG
two reports.
there two
from there headquarters
IG headquarters
should
should have
have been
been reassured.
reassured. All All was
was well.
well.
“I believe
“I you,” Moll
assure you,”
can assure
believe II can wrote, “that
Moll wrote, was pos-
it was
“that it pos-
sible means of
by means
sible by patient and
of patient work to
persistent work
and persistent at a
arrive at
to arrive a
normal and
normal lasting relationshi
and lasting between New
relationshipp between New York and all
York and all
important
important centers
centers in
in Latin
Latin AmeriCa.
America. .. .. .
“. . .Chile and Colombia
. Chile and received practically
Colombia received their whole
practically their whole
volume, but
sales volume,
' sales Brazil and
Mexico, Brazil
but Mexico, lost aa part
Argentina lost
and Argentina of
part of
their sales. . .”
his second
In his
In report Moll
second report tooktoccasion to
Moll tookioccasion to praise another
praise another
American firm
American firm for helpfulness. “.
its helpfulness.
for its We have
“. .. .. We observed
have observed
with great satisfaction
with great that the
satisfaction that sales of
the sales the Advance
of the [Advance
Advance [Advance
Solvents &
Solvents & Chemical Corporation of
Chemical Corporation of New York] to
New York] to our Latin-
our Latin-
houses constantly
American houses
American increase, which
constantly increase, proves that
which proves our
that our
connections, are
connections more secure.”
are more secure.”
\After the
‘After middle of
the middle of 1941 Mollfs difficulties
1941 Moll_’s increased.
difficulties increased.
There was
There was now Proclaimed List
now aa Proclaimed List of firms with
of firms with which trade
which trade
was not
was to be
not to on. Any
carried on.
be carried Any firm with a.
firm with connection
known connection
a known
with IG
with was, of
IG was, course, on
of course, list. Still
the list.
on the carried on.
Moll carried
Still Moll As
on. As
stated in
stated the report
in the report onon IGIG Farben submitted by
Farben submitted Colonel Ber-
by Colonel Ber-
Bernstein to
nard Bernstein
nard the Senate
to the Senate Kilgore Committee:
Kilgore Committee:
method of
“His method
“His [now] was
operation [now]
of operation was to orders in
place orders
to place the
in the
States for
United States
United firms not
for firms on the
not on Proclaimed List,
the Proclaimed includ-
List, includ-
ing with
ing with those which were
goods which
orders goods
those orders were upon arrival in
upon arrival in
Aires to
Buenos Aires
Buenos transferred to
be transferred
to be Anilinas Alemanas.”
to Anilinas Alemanas.”
Moll had formally
Moll _h_ad formally severed
severed hishis connections
connections with with hishis old
old
firm
firm Anilinas
Anilinas Alemanas.
Alemanas. But But his
his ex-partners
ex-partners had had no no worries
worries

I.
E". _“N ‘way;
1.if
?h\ t,_. _:,__\_ _¥§_, !~';‘_’/
 AGAINST THE NEW WORLD _, q 169
I69
about his loyalty.
about his loyalty. His former co-partner, Flinsch, wrote to
IG
IG in
in October, 1941, that
October, 1941, that “.
“. .. .. After
After Mr. Moll had left my
firm in last
firm in last June,
June, in
in pursuance
pursuance ofof this
this exchange
exchange of cables,
and
and accordingly
accordingly severed all his
severed all his connections
connections with
with it,
it, insofar
insofar
as was necessary Withwith regard to outside appearances, the old
close
close and
and friendly
friendly contact
contact with
with Moll
Moll .. .. .. continued.
continued. .. --..
“.
“. .. .. my
my firm
firm was
was always
always informed
informed in in advance
advance of
of all all ac-
ac-
tivities
tivities and
and plans
plans of
of Moll
Moll with
with respect
respect to
to the
the establishment
establishment
of business relations with the United States . . . everything
was
was discussed
discussed and
and executed
executed by
by joint
joint determination .”
determination.”
Even
Even after
after the
the United
United States
States entered
entered the
the war
war and
and IG
IG lost
lost
its
its American
American sources,
sources, some
some IG
IG goods
goods continued
continued to
to reach
reach Latin
Latin
America by way of Spain. The traffic
traffic was not entirely cut off
until
until the
the Anglo-Ameri can armies
Anglo-American armies broke
broke out
out of
of the
the Normandy
Normandy
beachhead in the Summer of 1944 and cut out the line to Spain.
Julius
Julius Overhoff
Overhoff ofof the
the IG
IG found
found an
an agent
agent named
named Uebele
Uebele who
who
was
was able
able to
to handle
handle the
the trade
trade through
through Spain.
Spain. Dyes
Dyes were
were shipped
shipped
through
through France
France toto Cerbere
Cerbere on
on the
the Spanish
Spanish border.
border. There
There
Uebele
Uebele took
took over,
over, hid
hid the
the goods
goods under
under Spanish
Spanish labels,
labels, and
and
shipped them under a British navicert to Buenos Aires.
In
In the
the first
first years
years of
of the
the war
war the
the blockade
blockade hurt
hurt IG
IG Farben
Farben
hardly at all. IG’s trade with its South American outposts
was
was only
only completely
completely stopped
stopped byby the
the defeat
defeat of
of the
the German
German
armies in Europe. In the same way, there is no guarantee that
those outposts
those outposts will
will be
be broken
broken upup until
until IG
10 Farben
Farben isis smashed
smashed
at its
at its center,'in
center,iin Germany.
Germany. A A year
year after
after the
the end
end of
of the
the war
war it
it
was still.
was still. not
not certain
certain that
that this
this would
would happen.
happen.
\
t

In Latin America
In Latin America IG
IG was
was fighting
fighting against
against the
the United
United States
for market
for market control. But the IG offensive did not stop there.
The battle
The battle was
was carried
carried into
into the United States itself. The
The story
story
of rubber shortage, and
of rubber shortage, and the part played iil
in it by the cartel
. relations
relations between
between IG
IG and
and Standard
Standard Oil
Oil of
of New
New Jersey,
Jersey, is
is
only one outstanding example
only one outstanding example of the series of shortages and
bottle-necks which
bottle-necks which were
were produced in the-United States. Even
.r'-'

170
170 [G FARBEN
IG FARBEN
IG’s use
IG’s use of
of espionage and propaganda
espionage and propaganda were
were relatively
relatively minor
minor
compared
compared with
with the
the subtle
subtle crippling
crippling of
of production
production achieved
achieved
through
through cartel
cartel manipulation.
manipulation. ,
It
It is
is’ fortunately
fortunately true
true that
that the
the bottle-necks
bottle-necks were
were broken.
broken.
Before
Before the
the end
end of
of World
World War
War II
II the
the United
United States
States was
was pro-
pro-
ducing
ducing aa staggering
staggering weight
weight of
of munitions.
munitions. American
American war
war pro-
pro-
duction
duction approached
approached that
that for the rest
for the of the
rest of the world
world combined.
combined.
But this
But this did
did not
not just
just happen
happen by
by aa sort
sort of
of muddling
muddling through.
through.
American arms
American arms production
production began
began in
in earnest
earnest after
after the
the fall
fall
of France,
of France, in
in June,
June, 1940.
1940. For
For nearly
nearly two
two years
years after
after that,
that,
well into
well into 1942,
1942, paralyzing
paralyzing shortages
shortages occurred.
occurred. And
And itit was
was
during this
during this period
period that
that America’s
America’s two
two principal
principal allies,
allies, Eng-
Eng-
land and
land were taking
Russia, were
and Russia, worst blows.
their worst
taking their There were
blows. There were
not yet any
not yet numbers of
great numbers
any great American troops
of American in action,
troops in but
action, but
the need
the lend-lease materiel
for lend-lease
need for the Allies
to the
materiel to was enormous.
Allies was enormous.
In the
In the face
face of
of the
the need
need there
there were
were shortages
shortages of
of aluminum,
aluminum,
magnesium, optical goods,
magnesium, optical tungsten carbide,
goods, tungsten medical supplies,
carbide, medical supplies,
and
and many
many other
other items.
items.
'A
’A large of the
share of
large share for breaking
credit for
the credit the supply
through the
breaking through supply
jam goes
jam the Antitrust
to the
goes to the Department
of the
Division of
Antitrust Division Department ofof
division ‘which
Justice. It was this division dug out
'which dug the web
out the of cartels
web of cartels
which was holding
which was back American
holding back production. Antitrust
American production. Antitrust
suits were
suits and basic
brought and
were brought were laid
facts were
basic facts before Congres-
laid before Congres-
sional investigating
sional committees. The
investigating committees. The restraining grip of
restraining grip of
cartels
cartels was loose—in large
pried loose—in
was pried by the
part by
large part quite simple
the quite simple
procedure of
procedure of laying
laying facts
facts before
before the
the public.
public.
Masses of
Masses evidence about
of evidence brought out
operations brought
cartel operations
about cartel by
out by
the Department of
the Department are now
Justice are
of Justice in the
now in records of
the records U. S.
the U.
of the S.
Senate investigating
Senate committees, such
investigating committees, as the
such as Bone Committee,
the Bone Committee,
the
the Truman
Truman Committee,
Committee, and
and the
the Kilgore
Kilgore Committee. The
Committee. The
story
story has
has been
been told
told in books by
in books by Joseph
Joseph Borkin.
Borkin_ and
and Charles
Charles
Welsh
Welsh (Germany’s Master Plan),
(Germany’s Master Wendell Berge,
Plan), Wendell Corwin
Berge, Corwin
Edwards, and
Edwards, and others.
others. Here
Here are
are some
some of
of the
the facts.
facts.
Aluminum is
Aluminum is one
one of
of the
the newer
newer metals
metals which
which are
are making
making
the steel
the steel age
age aa thing
thing of
of the
the past.
past. Aluminum
Aluminum has has many
many ad-
ad-
I'"~
V‘

' Ti

at " Y.
\
r‘

AGAINST THE
AGAINST THE NEW
NEW WORLD
WORLD 17]
171
vantages over
vantages over most
most of of the
the iron
iron and
and steel
steel alloys. It is
alloys. It is lighter,
lighter,
corrodes less
corrodes less quickly,
quickly, andand isis an
an excellent
excellent conductor
conductor of elec-
of elec-
tricity.
tricity. Its ore is
Its ore found all
is found all over
over the
the world.
world. Aluminum
Aluminum is vital
is vital
for
for war
war and
and has
has aa multitude
multitude of of uses
uses in
in peace
peace time.
time. There
There isis
no
no visible
visible limit
limit on
on how
how much
much aluminum
aluminum could
could have
have been used
been used
in
in the
the United
United States,
States, except
except that
that one
one huge
huge monopoly
monopoly has has
stood
stood in way of
the way
in the production. As
free production.
of free is well
As is Ameri-
known, Ameri-
well known,
production of
can production
can before World
aluminum before
of aluminum World WarWar II II was en- I
was en-
tirely
tirely controlled
controlled by by the
the Aluminum
Aluminum Company
Company of of America—
America—
Alcoa. _
The United
The produce about
can produce
States can
United States about four times as
four times much
as much
steel as
steel Germany. American
as Germany. industrial capacity
American industrial capacity generally is
generally is
far greater
, far Germany’s. Yet
than Germany’s.
greater than beginning of
the beginning
Yet the of 1942 saw
1942 saw
strange sight:
aa strange Germany, not
sight: Germany, United States,
the United
not the had become
States, had become
the greatest
the producer of
greatest producer the war-essential
of the war-essential metal, aluminum.
metal, aluminum.
This was
This one of
not one
was not instances where
the instances
of the Germans held
the Germans
where the held
back information
back fromthe United
information from'the in the
States—--as in
United States—flas case of
the case of
the buna
the methods, or
rubber methods;
buna rubber the Germans
where the
or where imposed their
Germans imposed their
will on
Will American businessmen
on American businessmen—as —as for example in
for example IG sales
in IG sales
to America. No
South America.
to South one had
No one to tell
had to what to
Alcoa what
tell Alcoa do. For
to do. For
decades it
decades operating on
been operating
had been
it had policy of
on aa policy output and
low output
of low and
high prices. It
high prices. held to
stoutly held
It stoutly policy during
that policy
to that the time
all the
during all time
Germany was
that Germany
that preparing for
was preparing war and
for war increasing its
and increasing its
aluminum
aluminum production
production under
under forced
forced draft.
draft. _
_
A world
A cartel in
world cartel was organized
aluminum was
in aluminum between 1928
organized between 1928
and 1931.
and did not
Alcoa did
1931. Alcoa the cartel.
join the
not join Alcoa organized
But Alcoa
cartel. But organized
junior partner
aa junior known as
Canada, known
in Canada,
partner in Alted, and
as Alted, Alted did
and Alted did
join the
join By what
cartel. By
the cartel. have been
might have
what might strange chance
been aa strange chance
‘ but probably was
but probably the policies
not, the
was not, seemed to
Alcoa seemed
of Alcoa
policies of to geargear inin
neatly
neatly With
with those
those of
of the
the cartel.
cartel. As
As Borkin
Borkin and
and Welsh
Welsh put put it
it
in
in their
their book
book Germany’s
German)/’s Master
Master Plan:
Plan: “The
“The cartel
cartel .. '.'. .. could
could
never have
never unless by
functioned unless
have functioned design or
by design accident Alcoa
or accident Alcoa
did
did not
not disturb
disturb their
their markets.”
markets.”
All
All the
the members
members of of the
the cartel
cartel were committed to
were committed to aa policy
policy
output—with one
small output—-with
of small
of exception, the
one exception, the Germans. Germany
Germans. Germany
 172
172 I ,x IG
[G FARBEN
FARBEN
Was represented
was represented in in the
the cartel
cartel by
by the
the Vereinigte
Vereinigte Aluminum
Aluminum
Werke and,
Werke and, as
as usual,
usual, anan IG
10 subsidiary,
subsidiary, Aluminum
Aluminum Werke.
Werke.
The German
The German firms
firms took
took full
full advantage
advantage ofof the
the restrictive
restrictive poli-
poli-
cies of
cies of the
the others.
others. They
They bluntly told their
bluntly told their partners,
partners, in
in 1934,
1934,
that they
that they were
were going
going to to increase
increase their
their production
production beyond
beyond the
the
quota assigned
quota assigned toto them.
them. And
And they
they were
were finally
finally given
given permis-
permis-
sion to
sion to do
do so——on
so—on their
their promise
promise to
to use
use the
the extra
extra production
production atat
home and
home and not
not disturb
disturb the
the world
world market.
market.
By 11937
By 1937 the
the Germans
Germans had had drawn
drawn nearly
nearly even
even with
with the
the
United States
United States in
in aluminum
aluminum production.
production. InIn 1938
1938 they
they pulled
pulled
ahead, 175,000
ahead, 175,000 tons
tons to
to 130,000,
130,000, with
with the
the other
other countries
countries al-
al-
together out
together out of
of the
the running.
running. ByBy 1941
1941 Germany
Germany probably
probably
was producing
was producing more
more aluminum
aluminum than
than all
all the
the United
United Nations
Nations
' combined.
combined. TheThe whole
whole American
American aircraft
aircraft program
program was
was jeopar-
jeopar-
‘ dized
dized by
by lack
lack of
of aluminum.
aluminum. The
The cartel
cartel had
had done
done its
its work
work well
well
L

in restricting
in restricting production
production in
in all
all countries
countries except
except Germany.
Germany.
Magnesium was
Magnesium was another
another metal
metal which
which the
the Germans
Germans realized
realized
was a key to war preparations. Magnesium is even lighter
than aluminum.
than aluminum. It It can
can bebe used
used inin flares
flares and
and firefire bombs
bombs and
and
it can
it can also
also serve
serve as
as aa substitute
substitute for
for aluminum
aluminum when when properly
properly
alloyed. In
alloyed. In fact
fact it
it is
is such
such aa good
good substitute
substitute for for aluminum
aluminum
that Alcoa
that Alcoa recognized
recognized it it as
as aa serious
serious threat
threat toto its
its aluminum
aluminum
monopoly. 'What
monopoly. 'What isis the
the good
good ofof controlling
controlling the
the total
total supply
supply of
of
one metal
one metal ifif another
another metal
metal can
can be
be used
used instead?
instead?
The main
The main German
German producer
producer of of magnesium
magnesium was was IGIG Farben.
Farben.
With its
With its wonderful
wonderful skillskill in
in handling
handling cartels,
cartels, IGIG soso played
played
upon Alcoa’s
upon Alcoa’s fear
fear of
of magnesium
magnesium competition
competition in in the
the United
United
States that
States that for
for years
years thethe Germans
Germans were were literally
literally able
able to
to
dictate how
dictate how much
much magnesium
magnesium was was toto be
be made
made in in America
America
and how
and how much
much waswas toto be
be shipped
shipped to to Great
Great Britain.
Britain.
To start
To start with,
with, inin the
the l920’s,
1920’s, there,
there, were
were twotwo American
American
magnesium producers,
magnesium producers, the the Dow
Dow Chemical
Chemical Company
Company and and aa
subsidiary of
subsidiary of Alcoa,
Aldoa, the
the American
American Magnesium
Magnesium Company,
Company,
Alcoa competed because it had to in order to achieve its ob-
jective: The
jective: The production
production of
of as
as little
little magnesium
magnesium as
as possible,
possible,
:~':"'\\-. _
‘ef-
V.

I‘ I

i“*-
I55. 3._./‘ 7
'2-1577
AGAINST
AGAINST THE NEW WORLD
THE NEW WORLD 173
173
and in
and agreedto buy
Alcoa agreedto
1927 Alcoa
in 1927 buy all of its
all of from
magnesium from
its magnesium
Dow.
Dow.
10 came
IG into the
came into in 1931
pieture in
the picture it signed
when it
1931 when agree-
an agree-
signed an
known as
ment, known
ment, with Alcoa.
“Alig,” with
as “Alig,” and IG
Alcoa and
Alcoa. Alcoa formed
IG formed
corporation for
joint corporation
aa joint the holding
for the patents, the
of patents,
holding of Magnesium
the Magnesium
Development Company.
Development These patents
Company. These important. Ac-
were important.
patents were Ac-
cording to
cording usual IG
the usual
to the system they
1G system be used
could be
they could threat
as aa threat
used as
outsiders into
bring outsiders
to bring
to into line with the
line with cartel.
the cartel.
pfoduction of
German production
German magnesium was
of magnesium up as
built up
being built
was being as
"rapidly
rapidly as possible. As
as possible. part of
As part of the Nazi plan
same Nazi
the same plan of war,
of war,
was to
there was
there to be as little
be as production in
little production America as
in America possible.
as possible.
Accordingly, IG
Accordingly, 10 inserted clause in
inserted aa clause agreement to
Alig agreement
the Alig
in the to
effect that
the effect
the American production
that American should not
production should not exceed four
exceed four
thousand tons
thousand year.
tons aa year.
The next
The was to
step was
next step force the
to force Company into
Dow Company
the Dow with
line with
into line
agreement. Alcoa
Alig agreement.
the Alig
the Alcoa applied pressure. With
the pressure.
applied the the
With the
patent holding
patent company, Magnesium
holding company, Development Company,
Magnesium Development Company,
base of
as aa base
as operations, Alcoa
of operations, threatened the
Alcoa threatened the Dow Company
Dow Company
endless litigation
with endless
with patent rights.
over patent
litigation over had to
Dow had
rights. Dow in.
give in.
to give
Now IG
. Now 1C had reached its
had reached objective. American
its objective. production
American production
magnesium would
of magnesium
of would be held below
be held thousand tons
four thousand
below four per
tons per
year. Dow
year. Company had
Dow Company had to agree to
to agree sharply its
limit sharply
to limit in
sales in
its sales
Europe; aa mere
Europe; mere one hundred and
one hundred and fifty per year
tons per
fifty tons be
could be
year could
to the
sold to
sold Company. The
Maxium Company.
British Maxium
the British results were
The results ob-
were ob-
vious: as
vious: late as
as late 1940, the
as 1940, States only
United States
the United produced about
only produced about
5,700 tons
5,700 tons of magnesium while
of magnesium Germany was
while Germany pfoducing
was producing
tons. It
19,000 tons.
19,000 It was from IG
gift from
another gift
was another Hitler, and
to Hitler,
1G to an-
and an-
tie-up in
other tie-up
other American war
in American war production which had
production which had to un-
be un-
to be
tangled in
tangled in desperate haste.
desperate haste. ..
American troops
first American
The first
The troops to fight in
to fight the Pacific
in the Islands
Pacific Islands
terribly from
suffered terribly
suffered malaria without
from malaria adequate drugs
without adequate drugs toto
This was
it. This
treat it.
treat was another for IG
victory for
another victory Farben.
IG Farben.
many years
For many
For quinine had
years quinine had been standard drug
the standard
been the used
drug used
give relief
to give
to malaria. Quinine
from malaria.
relief from from Java.
came from
Quinine came Pro-
Java. Pro-
duction was
duction was entirely controlled by
entirely controlled monopoly so
Dutch‘ monopoly
by aa Dutch‘ so
v--—-i" '

174
I74 IG FARBEN

tightly organized
tightly organized that
that even
even the
the Germans
Germans admired
admired it.
it. IG’s
IG’s
New Order Plan
New Order Plan set
set forth
forth ways
ways of
of taking
taking over
over the
the Dutch
Dutch
monopoly
monopoly without disturbing its
without disturbing its operations.
operations. Meanwhile,
Meanwhile, IG IG
I, set about
set defeating the
about defeating monopoly in
the monopoly in its own fashion.
its own fashion. It
It found
found
aa synthetic
synthetic drug,
drug, atabrine,
atabrine, which
Which also
also relieved
relieved malarial
malarial
attacks.
attacks.
When the
When the Japanese
Japanese captured
captured Java,
Java, they
they took
took with
With it
it virtu-
virtu-
ally all
ally all of
of the
the capacity
capacity for
for quinine
quinine production
production inin the
the 'world.
world.
The
The cinchona
cinchona tree,
tree, from
from whose
whose harkbark quinine
quinine is is made, also
made, also
grows in
grows South America.
in South America. InIn fact,
fact, the
the Dutch
Dutch took took the
the cinehona
cinchona
from
from South
South America
America to to Java.
Java. ButBut the
the quinine
quinine industry
industry of
of
South
South America
America was was only
only meagerly
meagerly developed.
developed.
Cut
Cut off
off fromquinine;
fromquinine, American
American soldiers
soldiers had had toto fall
fall back
back
on
on atabrine.
atabrine. And
And here
here they
they ran
ran up
up against
against another
another IG IG Farben
Farben
road-block.
road-block. IG IG had
had licensed
licensed only
only one
one American
American company
company to to
make
make atabrine.
atabrine. This
This was
was the
the Winthrop
Winthrop ChfcrrplcalCompany,
? linked
linked with
with IGIG 1n
in other
other ways,
ways, ted.Winthrep
Chcg,1ic_§_l,,,Q9gpQany,
Chemical would
tss:"Wtat1i'i~‘£>';§‘ “Chemical would
not
not expand
expand production.
production. In
In the
the words
words of
of the
the Assistant
Assistant Attorney
Attorney
General,
General, Wendell
Wendell Berge,
Berge, “It
“It required
required the
the concerted
concerted effort
effort
of
of manufacturers
manufacturers andand government
government to to institute
institute expanded
expanded pro—
pro-
duction
duction in
in order
order to
to make
make upup for
for the
the deficiencies
deficiencies of
of quinine.”
quinine.”
By
By the
the beginning
beginning of
of 1941
1941 England was enduring
England was enduring the
the blitz
blitz
and
and American
American public
public opinion
opinion was
was running
running strongly
strongly in
in favor
favor
of
of giving
giving aid
aid to
to the
the British.
British. But
But when
when the
the British
British Purchasing
Purchasing
_Mission
Mission tried
tried to
to buy
buy tetrazene-primed
tetrazene-primed ammunition
ammunition inin the
the
United
United States,
States, the
the sale
sale was
was prevented——by
prevented—-—by aa cartel
cartel agreement
agreement
between the
between the Remington
Remington Arms
Arms Company
Company (subsidiary
(subsidiary of
of Du
Du
Pont) and
Pont) and aa subsidiary
subsidiary ofof IGIG Farben,
Farben, Rheinische
Rheinische West-
West-
faelische Sprengstoff.
faelische Sprengstoff.
A Remington
A Remington ArmsArms Company
Company patent
patent attorney
attorney wrote:
wrote:
“The further
“The further sale
sale of
of Tetrazene
Tetrazene Primed
Primed Ammunition
Ammunition toto the
the
British Purchasing
British Purchasing Commission
Commission or or to
to the
the Government
Government ofof the
the
Union of
Union of South
South Africa
Africa or
or to
to the
the Government
Government of of Canada
Canada is is
most undesirable
most undesirable by by reason
reason ofof our
our Tetrazene
Tetrazene contract
contract with
With
R.
R. W.
W. S. [the IG
S. [the IG subsidiary].
subsidiary].

.7. be
£\

1' £37,. \
\ -4
AGAINST THE
AGAINST THE NEW
NEW WORLD
WORLD 175
I75
understand that
We understand
“. .. .. We
“. that the Division have
Process Division
the Process recom-
have recom-
mended the
mended use of
the use Tetrazene priming
of Tetrazene priming in in certain ammunition
certain ammunition
to be
to sold to
be sold to the Purchasing Commission.
British Purchasing
the British Commission. It appears
It appears
obvious that
obvious that this should not
this should not be And it
done.” And
be done.” not done.
was not
it was done.
course IG
Of course
Of Farben was
IG Farben the only
not the
was not German cartel
only German cartel
builder. There
builder. There werewere other German concerns
other German which carried
concerns which carried
on the
on economic attack
the economic against the
attack against United States.
the United States.
example, 'the
For example,
For ‘the Krupps made an
Krupps made agreement with
an agreement with thethe
American General
American General Electric concerning tungsten
Company concerning
Electric Company tungsten
carbide. Tungsten
carbide. carbide is
Tungsten carbide is second only to
second only diamonds in
to diamonds in hard-
hard-
ness. It
ness. It is essential for
is essential for machine which in
tools which
machine tools are es-
turn are
in turn es-
sential for
sential for allall other fabrication. The
machine fabrication.
other machine The Krupp—G.E.
Krupp-G.E.
agreement followed
agreement followed the the now pattern. In
familiar pattern.
now familiar In Germany
Germany
carbide was
tungsten carbide
tungsten produced in
was produced and sold
quantity and
in quantity for prices
sold for prices
ranging from
ranging $37.00 to
from $37.00 $90.00 per
to $90.00 pound. In
per pound. the United
In the United
States tungsten
States carbide was
tungsten carbide made in
was made small quantities
in small and sold
quantities and sold
at prices
at ranging from
prices ranging from about dollars to
hundred dollars
two hundred
about two to four
four
hundred dollars
hundred pound. By
dollars aa pound. there was
1938 there
By 1938 perhaps twenty
was perhaps twenty
times as much
times as carbide in
tungsten carbide
much tungsten in Germany
use in
in use in the
as in
Germany as the
States. The
United States.
United Germans had
The Germans had an oversupply of
an oversupply of machine
machine
which helped
tools which
tools helped them greatly in
them greatly in repairing bomb damage
repairing bomb damage
to their
to while in
factories, while
their factories, United States
the United
in the shortage of
States shortage of ma-
ma-
tools was
chine tools
chine one of
was one bottle-necks. The
critical bottle-necks.
the critical
of the The bottle-
bottle-
neck was
neck broken by
finally broken
was finally but as
action, but
antitrust action,
by antitrust one Ameri-
as one Ameri-
can manufacture
can manufacturer “Now when
said: “Now
r said: emergency has
the emergency
when the has come,
come,
industry has
industry has not learned how
not learned how to use tungsten
to use carbide and
tungsten carbide and
has not
has machines, the
the machines,
not the men, or
skilled men,
the skilled technique which
the technique
or the which
it would have
it would have had if the
had if material had
the material had been available at
been available at the
the
same
same low
low prices
prices at
at which
which it it was
was available
available to to German
German indus-
indus-
tries.”
tries.” ‘,
And
And then
then there
there was
was thethe case
case ofof optical
optical instruments.
instruments. In In the
the
United
United States,
States, optical
optical instruments —which include
instruments-—-which include range-
range-
finders,
finders, periscopes,
periscopes, gun gun andand bombsights,
bombsights, torpedo
torpedo directors,
directors,
as
as well
well as
as telescopes
telescopes and
and binocularsfl
binoculars-——are are made
made by by the
the Bausch
Bausch
and Lomb
and Company. The
Lomb Company. producer was
German producer
main German
The main was Carl
Carl

I
yP-'—--——-—v
,_ ---_--- --- —.— v

I76 IG FARBEN

Zeiss
Zeiss of
of Jena.
Jena. Zeiss
Zeiss and
and Bausch
Bausch and and Lomb
Lomb reached
reached aa cartel
cartel
agreement
agreement asas far
far back
back as
as 1921.
1921. At At that
that time,
time, according
according to
to the
the
U.
U. S.
S. Department
Department of of Justice, Bausch and
Justice, Bausch and Lomb
Lomb helped
helped the
the
German
German firmfirm toto evade
evade the
the terms
terms ofof the
the Versailles
Versailles Treaty
Treaty and
and
re-establish
re-establish itself
itself in
in production
production of of military
military optical
optical instru-
instru-
ments.
ments. AsAs usual
usual with
with cartels,
cartels, U.U. S.
S. production
production ofof optical
optical in-
\
in-
struments
struments waswas restricted
-restricted to
to the
the point
point where
where another
another major
major
bottle-neck
bottle-neck was
was created
created by
by thethe time
time World
World WarWar IIII began.
began.
The'cartel
Thecartel also
also called
called for
for exchange
exchange of of information.
information. Accord-
Accord-
ingly,
ingly, U.
U. S.
S. War
War andand Navy
Navy Department
Department {secrets
secrets were
were being
being
‘ sent
sent to Germany as
to Germany as late as 1939.
late as 1939. The
The German
German partners,
partners, how-
how-
ever, had
ever, had started
started resorting
resorting to
to vague
vague general
general descriptions
descriptions of
of
methods
methods in11933
in.1933 after
after Hitler
Hitler became
became Chancellor.
Chancellor. By
By an
an in;
in-
teresting
teresting chance,
chance, Zeiss
Zeiss became
became more
more interested
interested than
than ever
ever in
in
U.
U. S.
S. military
military equipment—after
equipment—-after Hitler
Hitler took
took over.
over. The
The follow-
follow-
ing
ing is
is from
from aa letter
letter to
to Bausch
Bausch and
and Lomb
Lomb written
written in
in April,
April,
1933:
1933:
“Your
“Your last
last monthly
monthly report
report has
has given
given cause
cause toto the
the con-
con-
sideration
sideration that
that we
we surely
surely would
would bebe better
better in
in aa position
position to
to
assist
assist you
you if
if you
you would
would report
report to
to us
us what
what kinds
kinds of
of instruments
instruments
are
are under
under trial
trial and
and inin use
use byby your
your military
military service.
service. There
There
must
must he
be aa great
great many
many questions
questions regarding
regarding instruments
instruments for for air«
air-
planes,
planes, tanks,
tanks, and
and ships
ships which
which demand
demand special
special optical
optical in-
in-
struments.
struments. __
“We
“We would
would askask that
that you
you intensively
intensively find
find out
out at
at the
the proper
proper
places
places and
and that
that you
you communicate
communicate to to us
us the
the different
different prob-
prob-
,, ‘
I lems.
lems. .. ..”
Bausch
Bausch andLomb
and Lomb continued
continued to to send
send reports.
reports. They
They merely
merely
asked,
asked, since
since there
there were
were now
now secrecy
secrecy clauses”
clauses” in
in all
all their
their U.
U. S.
S.
government
government contracts,
contracts, that
that special
special precautions
precautions bebe taken.
taken. InIn aa
letter to
letter Germany written
to Germany written in
in December,
December, 1933, it was
1933, it pointed
was pointed
out that:
out that:
“. .. .. the
“. the regulations
regulations are
are so
so stringent
stringent that
that particular
particular care
care
must
must bebe exercised
exercised to
to keep
keep these
these reports
reports in
in strictest confidence
strictest confidence
and
and they
they should
should be
be kept
kept in
in aa separate
separate file
file under
under lock
lock and
and key.”
key.”
I
 J‘

AGAINST THE NEW WORLD I77

177
Aluminum and
Aluminum and atabrine, machine tools and periscopes: for
of them
all of
all them the pattern was
the pattern same. Cartels
the same.
was the Vcrit'ical
produced critical
Cartels produced
shortages in
shortages in the United States when rearmament began. IG
' Farben
Farben and
and the
the other
other German
German firms
firms had
had done their work well.
\

I I

-
,---—-if

11
II
Ending -— U.S.A.
Ending ?? -— U.S. A.

From
From its birth IG
its birth had been
Farben had
IG Farben at war
been at with the
war with of
rest of
the rest
world, with
the world,
the United States
the United
with the main target.
as aa main
States as After
target. After
Pearl Harbor the
Pearl Harbor the United States hit
United States back.
hit back.
get at
To get
To Wehrmacht it
the Wehrmacht
at the necessary to
was necessary
it was huge
raise huge
to raise
ocean.
»

armie
armies,s, train equip them,
and equip
train and move them
and move
them, and across an
them across an ocean.
It necessary to
was necessary
It was landing on
force aa landing
to force Normandy coast
the Normandy
on the coast
perhapss the
in perhap
. in the most intricately-fashioned military
most intricately-fashioned operation.
military operation
of
of all time. Before
all time. American could
single American
Before aa single foot in
set foot
could set IG
an 1G
in an
plant
plant in Germany more
in Germany more than American soldiers
115,000 American
than 115,000 had
soldiers had
to die
to die inin battles the way
all the
battles all through the
France, through
across France,
way across Sieg-
the Sieg-
fried Line, and
fried Line, Germany.
into Germany.
and into
There were
There were also assets in
IG assets
also IG United States,
the United
in the these
and these
States, and
not seem
did not
did seem to present as
to present problem to
difficult aa problem
as difficult and
seize and
to seize
take over.
take At least
over. At were no
there were
least there mines or
land mines
no land pillboxes
or pillhoxes
or bunke
or bunkers on the
rs on road to
the road the various
to the works of
various works Ani-
General Ani-
of General
and Film.
line and
line Film. These were subject
These were immediate seizure,
to immediate
subject to as aa
seizure, as
war measu
war measure, by the
re, by U. S.
the U. Alien Prope
S. Alien rty Custo
Property dian. Whate
Custodian. ver
Whatever
might happe
might happenn to the rest
to the of the
rest of IG Farbe
the IG Farben n empir e,
empire, it looked
it looked
like sure end
like aa sure to 10
end to in the
IG in Unitedd States
the Unite lookedd
It looke
States.. It. that way.
that way.
' 178
178

\,.
1 1‘...
 I

ENDING?—-—U.S.A.
ENDING?--—U.S.A. I79
I79
Nearly five years
Nearly five years after
after Pearl
Pearl Harbor
Harbor it
it is
is still
still not
not certain
certain
that it
that it will
will work
work out
out that way.
that way.

Americans faced
Americans faced manymany newnew problems
problems in World War
in World War II, II,
but the
but the handling
handling of of enemy assets in
enemy assets in this
this country
country was
was notnot oneone
of
of them.
them. Here
Here therethere was
was ample
ample precedent
precedent fromfrom World
World War War I.-I.
In
In particular,
particular, there there was
was full
full knowledge
knowledge of of what
what had
had been been
done
done with
with IG’s
IG’s American
American holdings—and
holdings—and how how IGIG had
had gotten
gotten
them
them back.
back. This This is)is} a
a story
story worth.
worth reviewing
reviewing for for the
the light
light itit
throws
throws on on current
current problems.
problems.
The
The backbone
backbone of of the
the German
German economic
economic attack
attack had
had been been
the
the fruits
fruits ofof itsits advanced
advanced industrial
industrial technique:
technique: patents.
patents. The The
. Alien
Alien Property
Property Custodian
Custodian moved
moved straight
straight toto the
the center
center of of the
the
enemy’s
enemy’s strength
strength by by seizing
seizing the
the patents,
patents, more
more than
than twelve
twelve
thousand
thousand of of them.
them. Of Of these
these about
about five
five thousand
thousand were
were in in the
the
field
field ofof chemistry.
chemistry. Some Some of of the
the patents
patents were
were retained
retained by by the
the
Army
Army and and Navy;
Navy; the the rest
rest were
were sold
sold toto American
American business.
business.
Before
Before World
World War War II there
there had
had been
been virtually
virtually nono American
American
production
production of of dyes.
dyes. Now,
Now, onon the
the basis
basis ofof the
the German
German patents,
patents,
an
an American
American dyestufTdyestuff industry
industry was
was created.
created. A A sp_eeial
special corpo-
corpo-
ration,
ration, the
the Chemical
Chemical Foundation,
Foundation, was was organized
organized forthis pur-
£<>t-“t1ii§""§5=1£-
pose.
pose. u
The
The Chemical
Chemical Foundation
Foundation acquired
acquired the the German
German patents
patents
from
from thethe APC
APC (Alien (Alien Property
Property Custodian)
Custodian) and and parceled
parceled
them
them out
out toto American
American firms. firms. As
As the
the name
name implies,
implies, the
the Foun-
Foun-
dation’s
dation’s primary
primary interest
interest was
was inin the
the field
field of of chemistry.
chemistry. The The
actual
actual founder
founder and
and the
the guiding
guiding spirit
spirit of
of the
the Chemical
Chemical Foun-
Foun-
dation
dation was
was Francis
Francis Garvan..
Garvan.. Garvan
Garvan had
had been
been aa New
New York
York
attorney,
attorney, active
active in
in local
local politics.
politics. He
He was
was first
first the
the assistant
assistant
to
to the
the Alien
Alien Property
Property Custodian
Custodian and
and then
then became
became thethe Custo-
Custo-
dian
dian himself.
himself. Garvan
Garvan was
was an
an eloquent
eloquent man
man and
and aa hard
hard fighter.
fighter.
For
For the
the rest
rest of
of his
his life
life he
he pleaded
pleaded for
for aa strong
strong American
American
chemical
chemical industry
industry and
and opposed
opposed the
the IG.
IG. As
As the
the years
years passed
passed
he
he found
found more
more and
and more
more toto contend
contend against
against as
as IG
IG made
made its
its
come-back,
come-back, not
not only
only in
in Germany
Germany butbut in
in America
America as as well.
well.
 '

I80
180 IG
[G FARBEN
In addition
In addition to
to the seizure of the German chemical patents
the IG properties in the United States were also taken over.
At
At that
that time
time the
the 10
IG was
was still
still not
not a single corporation
corporation,, and its
main
main outlet
outlet abroad
abroad was
was the
the famous
famous Bayer
Bayer organizatio
organizationn of
of
‘Leverkusen.
Leverkusen. In1919
__19l9the
the APC
APC sold
sold Bayér’s
Bayer’s Ameriean
American agency
agency
. at
- at auction.
auction. Thebuyerwas
The
-.
the Sterling Prednets Company of
Sterling.Products”Company' of I
IWestVirginia.
W§_si;i‘Vifginia. It
I
It should
should be noted that aa condition
be notedthat condition of
of the sale
the sale
4 was
was that
that there he no
thereibe no return
return to
to German influence.
German influence.
The Bayer agency in the United States had handled both
pharmaceuticals and.dyes.
pharmaceuticals anddyes. Sterling
Sterling was
'was interested
interested only
only in
in the
the
drug business.
drug business. It
It sold
sold the
the dye
dye interest
interest to
to the
the Grasselli
Grasselli Chemi-
Chemi-
cal Company.
cal Company. And
And theWIG,
the IG, through
through Bayer,
Bayer, immediately
ImmediatelyIsIeIt
set
ahout recapturlng ~P.ti1ariI1s..+‘
share 111 both. '1 had '
' ¢.\...

=1.b<>1.1.t...¥.9.<=.§' -1.abstai nbath.-. 'Sterling

'.:~;.r-n-Q
1:-. ,<.-.-~1 JnSt a yearuaffter
. 4 ' [Just year after the APC’s
APC’5 auction, in 1920, 192.0’ Sterling had
already reached its first cartel agreemenfwith the IG.’ The
fact
fact was
was that
that the
the Germans were Still
Géiiiai-.iis"'Wéi¥*é fearsome competitors
'sti11"£é'.£&§6niei coimpielitors
in
in the field of
the field of chemistry. Even though
chemistry. Even though five
five thousand
thousand chemical
chemical
patents
patents had
had been seized, there
been seized, there were
were new
new ones
ones coming.
coming. Behind
Behind
the
the bare,
bare, and
and sometimes
sometimes misleading,
misleading, wording
wording ofof the
the patents
patents
were
were the
the actual
actual industrial methods. Most
industrial methods. important of
Most important of all,
all,
there
there was
was still
still the
the IG
IG organization
organization in
in South
South America.
America. In 1946
In 1946
as well
as well an
an IG
IG organization
organization remained
remained inin Latin
Latin America.
America.
By the
By terms of
the terms the 1920
of the 1920 agreement,
agreement, Sterling,
Sterling, in effect,
in effect,
turned over
turned over all
all of
of Latin
Latin America
America toto Bayer“
Baerr for
for"the
the saleof
sale of
aspirin. In
aspirin. In return,
return, Bayeriglave
Bayer gave Sterlinga
Sterling a ItwentyI--five per
twenty,-five per cent
cent
share of
share profits of
the profits
of the was just
the trade. This was
of th'e“trade.'This in aa long
one in
just one long
I
series
series of
of incidents
incidents demonstrating
demonstrating IG’s
IG’s willingness
willingness to to take
take aa
short-run
short-run loss
loss in
in profits
profits for
for the
the sake
sake of
of establishing
establishing aa con-
con-
trolling position.
trolling position.
In1923 _th§_Ste_rling-Bayer_
In_1223 the_S__t_e_rling-Bayer II(I_C_.)___agreement
I_G)__nagreement was was broadened
broadened
to
to cover almost alldrugsThe
covermalmost main thing “Sterling
all\id1'7ii"gi§.MThe '}iitti‘n"i1iih"g" Sterling got
got out
out
"'ofthe arrangement was a" promise
""i§f'the"'arrangemenimwtis promise by by the
the IGIG to stay out
to stay out of
of
the drug
the drug business'
business in1n the
the United
United States.
States. But But this
this promise
promise be-
be-
came meaningless when
631118 meaningless when the'IG
the IG was
was Simultaneously given,aa .
simultaneously, given
fiIIftIIyI
fifty IpeIrIeent
per cent shate
share 1nthe profits ofSterlmgsI subsidiary,
the p¥6tit§"6f"‘s'ta~1ing’s snhsidiary, tIIhIIeI
the ,
""~..
"S-..
>»-.
1'3
_,:

II '_'.-.,'-ugh
 ENDING?———U.5.A.
ENDING?—-—-U.S.A. I181
81
.Winthrop
.Win th rop Chemical' Company.
Cll6l'IllC3l Company . In
Tk”1EFJ“Amerib“£fi‘territory when
“Fast?ifiaiam¢"£~iEti'fi"'f€£‘£i‘£5iy
19261G__moved
In _1_926_I_G still further
moved still
when it
further ‘1;
it apquired
acqulredfifty fifty per“— cent
per cent ti.
Lof the ownership of Winthrop.
-.9t11h<= Qrasrshir sf was P -
-- --‘..., .s,__ ,.,...
ro .
Sterling itself
Sterling itself remained
remained clear clear of
of German
German ownership,
ownership, but but
it proved
it proved to to be
be aa goodgood friend
friend of of 1G
IG Farhen
Farben. In In December,
December,
1939,
1939, Sterling
Sterling was was one one of of the
the companies
companies which which agreed agreed to to
help
help IG IG beatbeat the the British
British blockade.
blockade. Sterling
Sterling shipped
shipped drugs drugs to to
Latin
Latin America
America which which were were sold‘there
sold-there by by 1GIG agents
agents underunder IG IG
labels.
labels. ,
In
In the
the case
ease of of the
the Grasselli
Grasselli Chemical
Chemical Company,
Company, which which had had
bought
bought out out the the Bayer
Bayer dye dye interests,
interests, IG IG was
was ableable to to score
score an an
even more
even more complete
complete success. success.1111924 Bayer Bayer and and G_r_a_ss_ell_i
Grasselli“ .t

formed_a__j_0_int_company.
fo_r_med to.handlel dyes1nthe United States“
§__joint_company..to.handle__dyes,in...the..United.States,
theGrasselli DyestuffsCompanyLBayer had
Mth6..Grasselli-Dyestuffs.-Company..,Bayer had. aa fifty
fifty per per cent
cent
.§l1_%¥..¢?..in_the._ne_w__company, but
.§h.,3;£<?..in_.the_new,_eompany, but to make sure
to make sure tnere would '
there would
he
be nono competition
competition in in Latin
Latin America,
America, Grasselli
Grasselli Dyestuffs
Dyestuffs was was '
_li1n__i1e_dto
Ii__q1i[§§_Lq_Unitedsales1111111;United States States and and Canada.
Canada.
There followed a sé}i@§'5'f‘tgrsetfi¢nt"s,'tash adding a little
Therefollowed a series ofagreements, each adding a little
more
more to to 1GIG control
control of of its
itsoldold American
American dye dye business.
business. By By
terms of a deal ‘deal made
made 1n in July, 1925, Grasselli Chemical was
left
left with
with only only aa thirty-five
thirty-five per per cent
cent share1n
share in Grasselli
Grasselli Dye- Dye-
stuffs;
stuffs; the the restrest went
went to to Bayer
Bayer and and its
its partners
partners in in thethe IG.
IG. As As
compensation,
compensation, Grasselli Grasselli Chemical Chemical received
received aa share share of of IG IG
profits—still
profits-—still another another example example of of aa temporary
temporary sacrifice sacrifice of of
hard
hard cash
cash by by the
the IG
IG 111 in order
order to to win
win aa strong
strong point
point abroad.
abroad.
By
By thethe latter
latter part
part of of 1928
1928 Grasselli
Grasselli had had disappeared
disappeared alto- alto-
gether.
gether. Grasselli
Grasselli Chemical
Chemical was was bought
bought by by DuDu FontPont and and 19' IG
was
was left
left-in 1n comple1e
complete control control of of Grasselli
Grasselli Dyestgtfs.
_Dyest_uf_fs. Through
Through ‘
.6111thewholeprocess
6fii’,“ths“t¢hb1s‘prtieesg of taking back its
6f"aik'ifig its old interests, the
ioldiinterests, the IG IG
had
bad been
been helpedhelped greatly
greatly by by the
the fact
fact that
that much
much of theoriginaL,
o,f,,,tHh_e’_o_§igi_r1fla_l ...--

..pers9n11el_hiqmbeen
perso_n;i”e’_l_“l‘i_a__dWb_ee_n E19191“
leHf:t__gp__ the
the job
job whenthe
w_h_e_n___the APCtook
APC took ever. over.
For
For example,
example, the the ihanager‘ofthe
‘manager of the Crasselli Grasselli dye dye department
department
was
was aa man man named named Ralph Ralph Hutz. “Hutz. Hutz
Hutz was was an an old
old. Bayer
Bayer man man
who
who hadhad been been interned
interned during during World.
World War War I. I.
Now IG
Now 1G waswas ready
ready for for aa full
full dress
dress. re-entry
re-entry ontoonto the the Ameri-
Ameri-
eamwr "

1I 82
82 IG FARBEN
IG FARBEN

I5I.‘ can
can s¢@n@-
I r
I . In 19.2.9
scene. Ia... the_Amer
1929 the- Amerisnn IG Company.
ica11 IG. formed
was f0I.'IfiPf.i:....
Company Was.
gItI included the
It included the General Aniline Works
General Aniline (which was 9.2911“...
Works (whichpeww____,
4 for the
1 IInIar11e for old Grassell
the old Grasselli‘ Dyestfiifs Company); AgfaAnse
i DyesituffsMCompany) o,
a_-Ap_s__eo,
makers
makers ofphotographicmaterials; a half share
of photowraphle materials; a_half the Win-
of the
share of
throp Chemical
throp Company; and
Chemical Company; and aa half also in
share also
half share the
in "the
MagnesmmDevelopment Company,
Ma“gnesiuiiiIDev.elopm'ent which turned
Company, which out to
turned out be
to be
contribution to
IG’s contribution
IG’s low magnesium
to low in the
output in
magnesium output United
the United
States.
States.
Farben of
IG Farben
IG Germany had
of Germany impressive American
had impressive backing
American backing
launching its
in launching
in organization in
new organization
its new United States.
the United
in the Mem-
States. Mem-
of the
bers of
bers board of
the board of directors such leaders
included such
directors included of
leaders of
business as
American business
American Walter Teagle,
as Walter president of
Teagle, president Standard
of Standard
Jersey, Edsel
Oil of New Jersey, Ford, and
Edsel Ford, Paul Warburg.
and Paul Standard,
Warburg. Standard,
course, was
of course,
of already deeply
was already in cartel
involved in
deeply involved relations
cartel relations
the IG.
with the
with was returning
Ford was
IG. Ford IG had
favor: IG
returning aa favor: lead-
been aa lead-
had been
investor in
ing investor
ing the Ford
in the Company of
Ford Company Germany.
of Germany.
At the
At start, there
the start, no hiding
was no
there was fact that
the fact
hiding the IG
American IG
that American
was simply
was branch of
simply aa branch Farben. But
IG Farben.
of IG men of
the men
But the never
IG never
of IG
the war
forgot the
forgot was coming
which was
war which the need,
and the
coming and for'
therefore, for
need, therefore,
The controlling shares
camouflage. The_controll_ing
, camouflage. American IG
of American
shares of IG were not
we1Ie not
i: 5 held
i InyIII}
Chemjical
pany,IG Chemle . w
h-1-1 11y-1c2..r.<-artist:-;-1f. but hiya;-sotarpo--alt‘"resin;-;1;@ta;?e"
Farben1 ltselfIIJLIItIby the supposedlySw1sscom
' M ”W ' ._“I
Iii
i
\. ,_ -I ,,
the beginhing
With‘ the
With beginning of
1__-». _ _
World War
of World II, in
War II, American
1939, American
in 1939,
and Film. A ?&m
;._4.v,1‘._.- \

IG its name
changed its
IG changed to General
name to Aniline a‘n‘d"Film.
General Aniline A"'3?é"s"£~‘
”later Hermann Sehmitz of IOFarbe
"'"1at'ér"iHsrta'ann"Schmitzbf nwent through
lG""Farben"went ‘the full
through the full
legal ritual
legal declaring IG
of declaring
ritual of free of
Chemic free
IG Chemie German control.
of German control.
General Aniline
General Film, therefore,
and Film,
Aniline and also try
could also
therefore, could to claim
try to claim
that it
that be Swiss
might be
it might certainly not
but certainly
Swiss but Yet General
German. Yet
not German. General
Aniline and
Aniline was the
Film was
and F11m lineal descendan
the lineal descendantt of old Bayer
the 01d
of the Bayer
agencies in
ag‘éncies United States
the United
in the the period
from the
States from before World
period before World
War I.
War And in
I. And World War
in World II, through
War II, the end
through the 1941, it
of 1941,
end of it
fought the
fought fight for
good fight
the good Farben by
IG Farben
for IG the British
breaking the
by breaking British
blockade
blockade andand preserving
preserving IG’s
IG’s Latin
Latin American
American markets.
markets.
IG
IG Farben
Farben waswas thoroughl
thoroughly y re-establi shed in
re-established in the
the United
United
States.
States. Still,
Still, the
the work
work of
of the
the World
World WarWar II Alien
Alien Property
Property
 ENDING?—U.S.A.
ENDING'?—-U.S.A. 183
I83
Custodian
Custodian was not.
not entirely
entirely in
i_n vain.
vain. As a result of the APC’s
seizure of
seizure of the
the German
German patents
patents an
an American
American dyestuffs
dyestuffs industry
industry
was established,
was established, independent
independent of of the
the IG.
IG. Several
Several major
major U.U. S.S.
corporations—like
corporations-—like Du Du Pont, Allied Chemical
Pont, Allied Chemical and Dye, and
and Dye, and ..
. American
American Cyanamide—became
Cyanamide——became important dye producers.
important dye producers.
It might
It might bebe supposed
supposed thatthat with
with these
these companies,
companies, atat least,
least,
there could
there could be
be no
no IG
1G connections.
connections. But
But this
this naive
naive notion
notion dis-
dis-
counts the
counts the strength
strength of
of the
the cartel
cartel germ.
germ. From
From 1939
1939 to
to 1942
1942
Allied Chemical
Allied Chemical and
and DyeDye was
was three
three times
times indicted
indicted byby the
the i V vI

Departmentof Justice under

Dé15a"tttiae£1t“"df“Justice under the Sherman Antitrust"Act
the Sherman‘ AntitrustAct ferfor_ fI
domi- I
ca1tels, domi-'
I-'
itsshare1n the interpational
its._.sha.rs...is.$I1¢ and .n.initrate
dye and
ivt.a-tsmional dye. tr==.1v-=...¢arts1S-
nated
nated by IG Farben. Du
by1CFarbeii. DiiiPo'nt wasWthe'American corporation
Pont wastheAmerican corporation “I
which
which came closest to
came closest to IG in scope
Farben in
IG Farben scope and power in
and power in the
the
field of
field of chemicals.
chemicals. Du Du Pont
Pont had
had been
been particularly
particularly active active in
in
movement to
the movement
the to protect American chemical
“infant American
the “infant
protect the chemical in- in-
dustry” after
dustry” after World
World War War I. I. ItIt had
had underwritten
underwritten $125,000
$125,000
of the
of the capital
capital ofof thethe Chemical
Chemical Foundation.
Foundation. And And yetyet in
in 1919
1919
Du Pont
Du Pont had had already
already sent sent representatives
representatives to to Switzerland
Switzerland to to
shop for
shop for an
an agreement
agreement with with the
the IGIG men
men concerning
concerning world-wide
world-wide
exploitation of
exploitation of the
the Haber-Bosch
Haher-Bosch ammoniac
ammoniac process.
process.
When these
When facts were
these facts touched on
were touched on at hearing of
at aa hearing the
of the
U. S.
U. Senate Committee
S. Senate investigating the
Committee investigating the munitions industry
munitions industry
1934, aa committee
in 1934,
in accused aa Du
investigator accused
committee investigator Du Pont witness:
Pont witness:
'u
At the
“.. .. .. At moment when
the moment when youyou were showing the
were showing Country \‘
the Country
here
here thatthat it important to
very important
was very
it was to take over the
take over the control the
of the
control of
monopoly, to
chemical monopoly,
chemical take it
to take it away Germany and
from Germany
away from get
and get
well-developed chemical
aa well-developed industry in
chemical industry in this country, you
this country, were
you were
dealing with
dealing Germans over
the Germans
with the over there. .”
there. .. .”
As aa matter
As matter of‘of‘ fact, Germans were
the Germans
fact, the enraged over
were enraged over the loss
the loss
of their
of patents; their
their patents; anger increased
their anger increased when Congress put
when Congress put aa
high tariff
high tariff on dyestuffs. They
on dyestuffs. figured that
They figured that DuDu Pont had aa
had had
Pont had
part in
part operations. Even
both operations.
in both the Du
so, the
Even so, Pofit agents
Du Pont Europe
in Europe
agents in
were able
were able to smooth over
to smooth difficulties. One
the difficulties.
over the One of them wrote
of them wrote
home that:
home that: “We parted as
“We parted as good friends .. .. .. and
good friends they are
and they now
are now
convinced that
convinced have played
we have
that .. .. .. we fair vis
played fair them.”
vis them.”
vis aa vis
I

»
 184
I 84 IG FARBEN .
[G FARBEN \

IG
IG and
and Du Pont never
Du Pont never did
did reach
reach aa complete
complete agreement
agreement ofof
the
the kind each of
kind each arrived at
them arrived
of them the British
with the
at with (Im-
ICI (Im-
British ICI
perial Chemical
perial But Du
Industries). But
Chemical Industries). was in
Pont was
Du Pont cartels with
in cartels with
subsidiaries of
subsidiaries IO, as,
of IG, example, in
for example,
as, for munitions field
the munitions
in the with
field with
Dynamit-Nobel and
Dynamit-Nobel Koeln-Rottweil. And
and Koeln-Rottweil. And the activities of
the activities of .
Du Pont
Du and IG
Pont and geared together
were geared
IG were by the
together by the fact both
that both
fact that
closely with
worked closely
worked ICI: the
with ICI: the two of master
sets of
two sets agreements
master agreements
could not
could not be
bein
1n conflict.
conflict. ‘‘ -- _
Altogether, the
Altogether, movement toward
the movement international cartels
toward international cartels
too strong
proved too
proved for the
strong for the APC’s' effort to
APC’s effort to drive German
drive German
chemistry out
chemistry Arnerica after
of America
out of World War
after World War I. I. When
When thethe
war started,
second war
second was in
there was
started, there case aa rich
any case
in any background
rich background
of
of mistakes
mistakes to
to avoid.
avoid. .

, At the time
At the War II
World War
of World
time of II "there were at
'there were seven
least ‘seven
at least
,
/' companies
companies which be called
could be
which could assets of
called assets Farben in
IG Farben
of IG the
in the
United States.
United States. Several these—like the
of these—like
Several of the Magnesium Develop-
Magnesium Develop-
ment Corporatio
ment the American
n, the
Corporation, Magnesium Corporation,
American Magnesium and
Corporation, and
Jasco, Inc.mrepr
Jasco, esented cartel
Inc.--—represented between IG
links between
cartel links and such
IG and such
American corporatio
American ns as
corporations Alcoa and
as Alcoa Standard Oil“
and Standard These
Oil..These
cartel were broken,
links were
cartel links least temporaril
=at least
broken, at temporarily, the war.
by the
y, by war.
That the cartels
That the between IG
cartels between IG and U. S.
big U.
and big may be
firms may
S.’firms be
resumed again
resumed clear. The
is clear.
again is here is
question here
The question general one.
is aa general one.
The fate
The of aa particular
fate of holding company,
patent holding
particular patent like Mag-
company, like Mag-
nesium Developme
nesium Developmentnt Corporati
Corporation J asco, is
or Jasco,
on or secondary com-
is secondary com-
pared with
pared larger policy
the larger
with the questions: 1)
policy questions: 1) will be an-
there be
will there an-
other IG
other with which
Farben with
IG Farben can be
cartels can
which cartels and 2)
formed? and
be formed? 2)
will there
will be aa clear—cut
there be official American
and official
clear-cut and policy toward
American policy toward
cartel
cartel building?
building? .
After
After all
all that
that has
has been
been learned
learned about
about thetwo
the two world
world wars
wars
it would be
it would hard to
behard anyone who
find anyone
to find publicly declare
would publicly
who would declare
himself
himself in
in favor
favor of
of preserving
preserving IG
IG Farben
Farben or
or rebuilding
rebuilding the
the
old
old cartel
cartel structure.
structure. Yet neither of
Y;et___1_i_eit_h_er_ of the
the twoquestions
"'"""'“Mwwhm
two quest_i_o_ns_ stated
vwam """ WhW,——um-
stated .._,_~r
M-n-->-<-.

above hacl been

beenansweredmorethan a.yearafter the end encl
”flu"

above,had- _..._.;_t_n_swered,_'mo,r_e___tha1i“Iaiyearw after the

,,,__,,__,___,,_,_,_,.,,_,..__.___.,___
mww: .am mum:«nn-mu

I’6fthew war.”Aswill
'~'()'f"tli"é warii-As“ will be be shown
shown111 the next
in the next chapter
chapter the the first firstyear” feZir”'
. t. .r $1,-Y.\."I',I
.n'l'r‘a'n-I -qr.-\
.,-.4,-5- 5,;
. ,"~\_
1 .5 .

¥-\-

J.
-_.':?_Risk ‘*-,,-‘'‘*.1
\“iii"-..
>“\
'I
“7
 f
I

END|NG?—-U.S.A.
ENDING?—U. S.A. I .- 1185
ss
«of Alliedopeupation of
‘-$?.f.,§IiiE£I_.0_Q9,u_p§:tion
WWW“...— of Germany
Germany did.not see the destruction
did no_t_v_s§_e__the destruction
of IG
of 1G Farben.
Farben Thereremains
.1... ....-..w..
-Qmw
a grave danger
Tliieireiiiremiaiiismai‘grave danger thatIGwill'
that ”"IG”"'will
emerge again.No
"¢15饧€"s"gaifit Nor of aa
statement of
r has there been a specific statement
U. S. trade
U. S. to take
policy to
trade policy take the of private
place of
the place private cartel building.
cartel building. I

There has
There been aa great
has been great deal talk about
of talk
deal of “freedom” as
about “freedom” as aa 4

thing and
general thing
general freedom of
about freedom
and about among nations.
trade among
of trade To
nations. To
discussion at
the discussion
leave the
leave level of
this level
at this generality is
noble generality
of noble to
is to
that we
imply that
imply emerged' from
just emerged
have. just
we have_ War
Crimean War
the Crimean
from the
than World
rather than
rather Responsible leaders
II. Responsible
War II.
World War of the
leaders of Ameri-
the Ameri-
government have
can government
can have stated thatxwe are
stated thatrwe repressive
against repressive
are against
praetices. And
cartel practices.
cartel And that is all.
that is all. The law which
only law
The only comes
which comes
applying to
near applying
near the situation
to the is the
situation is the Sherman written
Act, written
Sherman Act,
half a century ago to control domestic trusts. There is abso-
guarantee that
no guarantee
lutely no
lutely people as
the people
that the will have
whole will
as aa whole any
have any
control
control over
over the
the key
key decisions
decisions inin international
international economic
economic re-re- ‘
lations which
lations which make
make for war or
for war or peace.
peace. In
In the
the absence
absence ofof such
such .
control, the
control, the decisions
decisions will
will again
again bebe made
made by by small
small private
private '
groups of businessmen, organized in cartels, whose only re- ,-
1%-.- ,.
sponsibility
sponsibility is
is to
to show profits to
show profits to their
their boards
boards ofof directors.
directors.
From
From the
the record
record there is every
there is every reason
reason to
to believe
believe that
that the
the big
big
corporations
corporations which
which were
were in
in cartels
cartels before
before the
the war
war are
are ready
ready \ E
and
and willing
willing to
to get
get back
back into
into them.
them. The
The directors
directors of
of Standard-
Standard 1

Oil
‘Oil of
of New
New Jersey
Jersey 1n
in 1943 refused to
1943 refused to consider
consider aa proposal
proposal toto I
I

stay
stay out
out ofof cartels
cartels with
with IGI.G- Farben.
Farben. Other
Other companies
companies have
have
demonstrated
demonstrated the the same
same attitude.
attitude. As
As Corwin
Corwin Edwards
Edwards declared
declared
before
before the
the Kilgore
Kilgore Committee:
Committee: “The“The Du Pont Co.
Du Pont Co.apparent1y
apparently
has an
has an understanding
understanding that
that many,
many, ifif not
not all,
all, of
of its
its cartel
cartel agree-
agree- I

ments will
ments will be
be resumed
resumed after
after the
the war.
war. .\.
.\. The
The termination
termination ofof the
the
exchange of
exchange of technical
technical information
information between
between Du Du Pont
Pont and
and IG
IG
Farben in
Farben in April,
April, 1941,
1941, was
was' intended
intended toto endure
endure ‘until
‘until the
the
present
present emergency
emergency has
has passed’
passed’ with
with ‘all
‘all other
other obligations
obligations in'
in
the contracts to
the contracts remain as
to remain as at
at present.’
present.’ ”” '
However,
However, there was one
there was one big
big piece
piece of
of IG
IG property
property which
which
could be
could be disposed
disposed of
of 'in
'in the
the United
United States,
States, as
as aa purely
purely war
war
measure, without
measure, without regard
regard toto general
general cartel
cartel .policy.
.policy. This
This was
was
O

\
 -fij

../
,> ,

I1 86
86 IG
IG FARBEN
FARBEN
General
General Aniline
Aniline and
and Film, with its
Film, with its related
related company
company General
General
Dyestuffs. The
Dyestuffs. The sole
sole defense
defense of
of G.A.
G.A. 8:81 F.
F. was
was camouflage
camouflage ofof
the same
the same kind
kind which
which IG
IG used
used so
so successfully
successfully all
all over
over the
the
world.
world. ,
I_1_1 1i¢br1!ary.,
February, 194.-‘
1942, the .U-.
Z..I11<= _U. S.T1_:_ea_su_ry took -_<>v<=r
5-. Tr¢s$t1.ry._to0ls over .n1@st,,_9.f..-
most ofm
the shares
the shares of
of G.A.&F.
CA 81F. and
and removed
removed the
the directors
direetors of the
of [the_
company. Two
company. Two months
months later,
later, on
on April
April 24,
24, control
control was
was passed
passed
I '_ to the
to the Alien
Alien Property
Property Custodian.
Custodian. More
More than
than four
four years
years later
later
5 » the APC
the APC still
still retained
retained control—and
control—and the the future
future ofof G.A.
C.A. 8:
81 F.
F:
- had not
had not been
been settled.
settled. ' --
The Treasury,
The Treasury, when
when it
it first
first removed
removed the
the old
old officers
officers ofof Gen-
Gen-
eral Aniline
eral Aniline and
and Film,
Film, appointed
appointed Robert
Robert E.E. McConnell
McConnell as as
president and
president and JJ.. S.
S. Bates,
Bates, W.
W. F.F. Zimmerli,
Zimmerli, and
and A.
A. E.
E. Marshall
Marshall
as vice-presidents.
as vice-presidents. NoneNone of
of the
the Treasury
Treasury slate
slate of
of officers
officers was
was
retained by the
retained by Alien Property
the Alien Custodian. Let it be noted1n
Property Custodian. noted in ‘1“, nm-r-It

passingmthat1npolicy“wranglesin WashingtontheTreasury
Passing .I.Il§1.L.i.£1_P‘?_II‘E)i...YY£?‘"3le5--in W‘?/ashinstoni. _tl1é'..Iié'§-_iiii"i'
ow...— ....a-.A ‘-'-"“-1u~..kn.n H...“
,....-M u

D“éf;£hment _a_rgt_ied throughout the war for strong measures

against
against Nazi
Nazi Germany
Germany and and for
for break--up of
break-up Germanassets iii
of German'f'ass'éts' iii
States.
the United States. I 'I
The question
The qgest1o11 of
of future
future ownership
ownership of
of General
General Aniline
Aniline and
and
has never been
Film hasnneyier
Film been settled. operating control
But operating
settled. But has passed
control has passed r

grouP of
toa group
tg_a of "Ha-;ri' Whoare tied
niéri 'whb”"are aconstellation of
with ahconstellation'
in with
tied in of
corporate interests
corporate whichis
interests which rapidly1n
rising rapidly
18 rising in American busi-
American busi-
ness under
ness leadership of
the leadership
under the an inter_na_tio_nal
of an figaneier,Victor
1nternat10nal financier, __Y_ic_to_§_
Emanuel.
Emanuel. Emanuel himself
-----
himself sits board of
the board
011 the
sits on directors of
of directors of
G.A. 8: F. There is a liberal sprinkling of his associates among
the other
the other directors
directors and
and officers.
officers. ,
It
It 13
is not
not at
at all
all remarkable
remarkable that
that Victor
Victor Emanuel
Emanuel has
has gained
gained
influence
influence 1nin the
the handling
handling of
of IG’S
IG’s American
American interests.
interests. It
It is
is
at
at least
least suggestive
suggestive that
that the
the first
first Alien
Alien Property
Property Custodian
Custodian was
was
Leo
Leo Crowley,
Crowley, head
head of
of Standard
Standard Gas
Gas and
and Electric.
Electric. Standard
Standard
Gas
Gas and
and Electric
Electric is
is controlled
controlled by
by the
the Emanuel
Emanuel interests.
interests.
Crowley’s
Crowlcy’s successor,
successor, and
and the
the present
present Alien
Alien Property
Property Cus-
Cus-
todian,
todian, is
is James
James Markham.
Markham. Markham
Markham was
was also
also aa Standard
Standard
/ Gas and Electric director. Another man who evidently has

/ '.
,-
 I

ENDING?—U.S.A.
ENDING?—-U.S.A. ‘‘ I187
87
had much
had much toto say
say about
about General
General Aniline
Aniline and
and Film
Film is
is George
George
E. Allen,
E. Allen, aa some-time
some-time adviser
adviser to
to the
the President
President of
of the
the United
United
States and
States and the
the former
former head
head of
of the
the Reconstruction
Reconstruction Finance
Finance
I Corporation. Allen
Corporation. Allen was
was given
given directorships
direetorships in
in several
several other
other
corporations in
corporations in the
the Emanuel
Emanuel group
group such
such as
as Consolidated-
Consolidated-
Vultee, Aviation
Vultee, Aviation Corporation,
Corporation, and
and Republic
Republic Steel.
Steel.
I
The main
The main danger
danger in
in the
the handling of IG’s
handling of IG’s American
American assets
assets
of course,
is, of
is, return to
course, aa return influence and
German influence
to German connections.
and connections.
I
I
It is worth
It is noting that
wnrth noting Victor Emanuel
that Victor spent much
Emanuel spent in
time in
much time I
England, between 1927
England, between mid 1934In
1927 .EiHd'19s4';‘ In London he was IIasIsof __
London l1e_'was__,_a_sso-_
I ciated the Schroder
with the
ciated with interests; it
banking interests;
Schroder banking iricombma
was in
it was combina- I

i
tion with
tion movedin
Emahuel moved
thesehroders that Emanuel
With 1hE“S&h‘£6dér§"that' in on Standard
on Standard I
I
I
Gas and Electric.
Gas and 13 well
Asis
Electric. As the Schr.oders
known, the
well known, London
of London
Schroders of 1

related‘to
are related
are Schroders of
the Schroders
‘to the Germany. Baron
of Germany. Bruno
Baron Bruno
is credited
Schroder is
Schroder with having
credited with Hitler to
introduced Hitler
having introduced the
to the
principal industrialists
principal industrialists of the Ruhr.
of the Baron Kurt
Ruhr. Baron Schroder
Kurt Schroder
held high rank
held aa high SS and
the SS
in the
rank in was known
and was “the SS
as “the
known as banker.”
SS banker.”
London banking
The London
The house, J.
banking house, Schroder and
Henry Schroder
J. Henry Company,
and Company,
described by
was described
was magazine in
Time magazine
by Time 1939, as
July, 1939,
in July, “eco-
an “eco-
as an
nomic booster
nomic 0f the
booster of Axis.”
Rome-Berlin Axis.”
the Rome-Berlin -~4.=_.-A
.|

that after
remembered that World War
after World Alien
the Alien
War II the
'|

It will
It be remembered
will be
Property Custodian
Property the Bayer
seized the
Custodian seized only to
properties, only
Bayer properties, see
to see I
them revert German control
to German
revert to an astonishingly
in an
control in time.
short time.
astonishingly short
I
them I
I..7

One
One of main flawsin
the m__ainr_f_I_aws
of the the work
1n the work of of the wasthefailure.1.
APC wg_s,_th_e_,failurg
the APC ----...‘ I

to remeve the
to remove old_persqnnel fret};_keypositions. In
the oi_dnp,e_r_sp_nnel,fro1p__key_,positions. In 1942
the Treasurystarted with
the a
meleen
with Ifélééin slate
slate by foIIrcingI out
by forcing allof
out all of I I
the
the officers and directors
officersiiiaiid Iof ,,Ge}ié£51"A‘fii1i¥1é"”51i"d"Fi1&iI""l§§§¢
diriectmorswof GeneralAniline“ andFilm?"By I
I
1945 the Alien"Property Custodian
1945?thI3"Alien““Pi_'operty Custodian had had allowed
allowed several
several ofof r
I

theformer officials
theiifdrmer officials a;“i~éttia1.
to retiirri. "Among
Among them
them weWre'Fi
were F A.A. Gib-
Gib-
bons, R.
bons, R. H.
H. Bax'ter,Hain=d
Baxter, and C. E. King.
King. .
The head
The head of
of General
General Dyestuffs
Dyestuffs before
before the
the war
war was
was E.
E. K.
K.
IIalbach. Halbach
Halbach. Halbach was
was one
one of
of the
the men
men singled
singled out
out for
for praise
praise
in IG Farben
in IG Farhen reports for his
reports for his share
share in
in preserving
preserving IG’sIG’s Latin
Latin ~
American
American business.
business. Concerning
Cpncerning Halhach
Halbach the
the Alie11I
Alien Property
Property
_.._.,,,,_ _.- mm..." .14. .1

Custodlan5
Cust0dian’s annual
annual Ireport for1945states:
J

r@p5‘a-~£m~-1945‘"aste§E"'“'“""“*"""‘ ‘M’ 1
|

iI

I
I
,_- -- .._---——-- -
I
I

188
I88 ' I‘ IG FARBEN
“Mr.
“Mr. E.
E. K.
K. Halbach,
Halbach, who
who was
was President
President and
and General
General Man—
Man-
ager
ager of
of the
the Corporation
Corporation before
before vesting,
vesting, is
is employed
employed by
by the
the
present
present management
management as as aa full-time
full-time consultant. Upon settle-
consultant. Upon settle-
Inent of
ment of the
the litigation
litigation involving
involving shares
shares formerly
formerly held
held byby Mr.
Mr.
Halbach, he
Halbach, he submitted
submitted his
his resignation
resignation forfor consideration
consideration by by
the
the Board
Board ofof Directors
Directors [who
[who had
had been
been appointed
appointed by
by the
the APC]
APC] ..
The
The Board
Board has
has not
not accepted
accepted his
his resignation
resignation since,
since, according
according
to
to aa statement
statement byby the
the President,
President, thethe members believe that
members believe that ‘his
‘his
separation from
separation from the
the company
company as as aa consultant
consultant at
at this
this time
time
would adversely
would adversely affect
affect the
the war
war effort.’
effort.’ ”” lI ..
General Aniline
General Aniline and
and Film
Film remains
remains aa handsome
handsome prize.
prize. Con-
Con-
sidered purely
sidcred purely as
as aa manufacturing_organization,
manufacturingorganization, its its value
value in-
in—
I
creased during
creased during the
the war.
war. Under
Under APC
APC direction
direction it
it waswas turned
turned
to war
to war production
production and
and received
received several
several Army-Navy
Army-Navy “E”
“E”
awards. Its
awards. Its research
research activities
activities were
were greatly
greatly expanded.
expanded. InIn
1941 aa mere
1941 mere $13,000
$13,000 was
was spent
spent on
on basic
basic research.
research. During
During
1944,1aboratory
1944, work cost
laboratory work cost $1,582,000.
$1,582,000 In In June,
June, 1945,
1945, the
the
company held
company held nearly
nearly four
four thousand
thousand U. U. S.
S. patents.
patents. Until
somethingis
something 15 done
done with
with General
General Aniline
Aniline and
and Film,
Film, these
these. rd-
re-
main IG
IG paten'ts,"held-
patents;held1n trust by
by the
the APC.
APC.
.Wwflfl.
main in trust """“""'"'
Naturally, there
Naturally, there would
would be be no
no difficulty
diificulty in
in finding
finding buyers
buyers
for G.
for G. A.
A. 81
& F.
F. In
In fact,
fact, there
there have
have been
been several
several bids.
bidsi already.
already.
By the
By the mere
mere fact
fact of
of present
present control
control the
the Emanuel
Emanuel group
group would
would
seem to
seem to have
have an
an inside
inside track,
track, but
but American
American chemical
chemical inter-
inter-
ests have
ests have also
also entered
entered the
the competition.
competition. The
The stumbling-block
stumbling-block
inthe way
in~the way of
of aa sale
sale has
has been
been IG
18 Chemic
Chemie of of Switzerland.
Switzerland.
eIGChefnie has_been
SIGM has been called __IfI__e_i‘_rn___.§_t_np_MS__(_:hmitz’s
Hermann Schmitz’srnastlerpiecemasterpiece
of ,ca_mouflagei.
of camouflageHecreateditfoi‘thespec1fic purpose bf
I Hé"‘5'£-Efied it for the spe¢ifiié"i51i¥13“b§“é of ‘Hold-
hold-
ing IG-Farben’s
ing IG Farben’s foreign
foreign properties
properties safe
safe from
from seizure
seizure when
when
the war
the war came.
came. TheThe plan
plan unfolded
unfolded smoothly
smoothly afterafter the
the war
war
started
started in
in 1939.
1939. American
American 1G IG changed
changed itsits name
name to to General
General
Aniline
Aniline and
and Film,
Film, and
and 1G
IG Chemie
Chemic went
went through
through all
all the mo-
the mo-
Farben IG Chemic
tions of severing its connections with IG Farben. Chemie
even improved on the script by giving itself a new name in
January, 1945.
January, 1945. l
/
-
v “R
*2.‘--.

mt‘? '
 I

ENDING?—U.s.A.
ENDING?—U.S.A. ‘‘ y I- 189
189
Whatever the
Whatever names may
the names may be, be, IG IG Chemielstill claims own- ‘
Chemie still clairnsown-j
ership of
ership of the controllingsharesof General Ani_line
the controlling Amlmeandw -.and -m _| ,
Tilm.AndtheAmerican
I'l7'__iIiiI'."i'IAii'd“tlieMArriErican Alien Alien Property
Property Custodian
Custodian has has held
held 1
up the
up sale of
the sale G. A.
of G. A. & & F.F. and
and thethe 10 patents for
IG patents fear that
for fear suit ‘1 '
that suit
mightbe brought
mightbe brought by_IG by IG Chemie.
Chemic. The theoryIS
The theory that 10
is that Chemic '
IG Chernie
could claim that
could claim that it Swiss company,
was aa Swiss
it was company, and therefore neu-
and therefore neu-
and that
tral, and
tral, that its property was
its property was notnot subject
subject to seizure and
to seizure and sale.
sale.
Meanwhile, Hermann
Meanwhile, Hermann Schmitz,Schmitz, the the president
president of IG Farben
of IO Farben
planned ,the
who planned
who .the whole concealment device,
whole concealment device, has' been resting
has’ been resting
in an
in American army
an American army prisonprison in Germany known
in Germany known under under the the
code name
code name 'of “Dustbin.” It
of “Dustbin.” It is possible that
is possible that the the boredom
boredom
prison life
of prison
of life has worked on
has worked on Schmitz’s
Schmitz’s memory.memory. Early Early in in
August, 1946,
August, 1946, he made aa public
he made public offeroffer to travel to
to travel Switzerland,
to Switzerland,
to see his
to see friends in
his friends in 1G Chemic there,
IG Chemie there, and and to arrange through
to arrange through
raising of
them raising
them funds to
of funds pay for
to pay for foodfood relief shipments into
relief shipments into
Germany. Evidently
Germany. Evidently SchmitzSchmitz has remembered that
has remembered that he really
he really
did have
did connections with
have connections with 1G IG Chemie
Chemic after all.
after all.
spite of
In spite
In Hermann Schmitz’s
of Hermann Schmitz’s lapse lapse intointo recalling
recalling thatthat he he
tell IG
could tell
could IG Chemie
Chemic what what to do, the
to do, sale of
the sale General Aniline
of General Aniline
and remains blocked.Accord1ng'to
Film remains
and Film oneproposal the-~--
blocked. Aceoriiifig"i6“B‘i{€1§%15;3’6ss1;-- thew.
Custodian will
Property Custodian
Alien Property
Alien have to
will have Congress to
ask Congress
to ask pass aa
to pass
permitting him
bill permitting
bill him to to sell property which
s_ell property which he seized even
has seized
he has even
'though
‘though it it is
is claimed
claimed by by neutral
neutral concerns.
concerns.
Still another attack
Still another attack on on G.G. A.A. 81 81 F. was an
F. was antitrust action
an antitrust action
undertaken by
undertaken Department of
the Department
by the Justice. Shortly
of Justice. before the
Shortly before the
war, G.
war, G. A. A. 81 F. was
81 F. indicted on'
was indicted on three counts as
three counts as aa monopoly.
monopoly.
The
The casecase was was allowed
allowed to to lapse
lapse during
during the the war.
war. Finally
Finally in in
March, 1946, 1946, G. G. A.A. & 8: F. decided not
F. decided not to contest the
to contest suit and
the suit and
was
was fined
fined $15,000.
$15,000. As As aa footnote
footnote it it may
may be be added
added that
that thethe
net
net worth
worth of of G. G. A. A. & & F.F. increased
increased from from aboutabout fortyforty million,
million
dollars
dollars in in 1942
1942 to to nearly
nearly fifty-eight
fifty-eight million million dollars
dollars in in 1945.
1945.
A
A $15,000
$15,000 fine fine was was about
about as as troublesome
troublesome to to the
the company
company
as
as aa traffic
traffic ticket
ticket to to aa private
private citizen.
citizen.
General
General Dyestuffs
Dyestuffs was was alsoalso indicted
indicted for for violation
violation of of the
the
Antitrust
Antitrust Act. Act. Among
Among the the co-defendants
co-defendants were were Du Du Pont,
Pont, Allied
Allied
 19o
I90 , IG FARBEN
IG FARBEN
Chemical and Dye,
Chemical and the Swiss
and the
Dye, and Cartel. In
Dye Cartel.
Swiss Dye there
all, there
In all,
were
were fourteen
fourteen defendants;
defendants; their
their fines,
fines, when
when the case was
the case was set-
set-
tled
tled in
in April,
April, 1946,
1946, totaled
totaled $110,000.
$110,000. Considering
Considering thatthat it
it
took
took atat least
least four
four years
years to
to conclude
conclude the
the cases,
cases, the
the fines
fines may
may
be
be considered
considered very
very modest
modest licensing
licensing fees
fees for
for the
the privilege
privilege of
of
engaging
engaging in in cartels.
cartels.
While
While the
the warlwas
warwas going
going on
on the
the Department
Department of
of Justice
Justice
was
was able
able to
to force
force breaks
breaks inin cartels
cartels which
which were
were crippling
crippling the
the
American
American warwar effort.
effort. It
It could
could dodo this
this because
because public
public atten-
atten-
tion
tion was
was alert
alert to
to enemy
enemy action.
action. The
The greatest
greatest amount
amount of
of pres-
pres-
sure was
sure generated by
was generated laying facts'before
by laying Congressional in-
factsbefore Congressional in-
vestigating committees,
vestigating than by
rather than
committees, rather mere act
the mere
by the of taking
act of taking
cases to
antitrust cases
antitrust court. With
to court. war over,
the war
With the antitrust men
the antitrust
over, the men
in the
in Department of
the Department of Justice want vigorous
who want
Justice who action must
vigorous action must
back on
fall back
fall the courts
on the The results
again. The
courts again. only.be con-
can only.be
results can con-
sidered
sidered trivial.
trivial.
When
When the
the United
United States
States went
went to
to war
war after
after Pearl
Pearl Harbor
I-Iarbor it
it
looked as
looked IG Farben
though IG
as though lose its
would lose
Farben would American foot—
its American foot-
hold forever.
hold it turned
But it
forever. But that Hermann
out that
turned out Schmitz had
Hermann Schmitz had
Them
-,_

woven his
Ionven invisible net
his invisible of concealment
net of exceedingly well
concealment exceedingly well."‘Th'em
‘main’ aséet
main IG 1n
of IG
asset 0f United States,
the United
in the General Aniline
States, General Aniline and
and
still remains
Film, still
Film, threat to
possible threat
remains aa possible future peace.
to future peace. The
The
...,..r»1» I

patternofW
attern4df"Wor1tl'W'ar'I
2...— 1-4a....‘_
repeats itselIfI
orld War Irepeats with terrlfymg
itself 'with terrifying pIreII-
pi-“El”
cision. __
-_...m»1‘ a-_..... ..___...,_.1..

c1s1on.,_.. . ' i "" '

““‘Theheart
'"""‘ The heart of remains in
IO remains
of IG If IG
Germany. If
in Germany. is reaIIy
FarbenIS
IG Farben really
1n its
destroyed din
destroye it will
homeland, it
its holmeland, if IG
not matter if
will not_matter Chemie
IG Chemic
General Aniline
and General
and T11m call
and Film
Aniline and Swiss or
themselves Swiss
call themselves Dutch
or Dutch
Mongolian. The
or Mongolian.
or show-down is
final show-down
The final is in occupation of
the occupation
in the of
Germany. And
Germany. soIIfar, IIIIIG FIarIbIen
there, so____far,__I_G
And ihere, arbenis lSfighting success-
fighting aa success-
ful for survi
battle for
ful battle val.
survival. i ' " ' ' ‘

-cg"!
, . ‘I: .‘C;

fr’ L‘ :
..
. .__,_,
_-c. ~_. ,-_ _ -“... 'c‘~~,"
‘ I '1.’ I
 II

12
I2
I
I
I
I
I
I

‘Ending?—Germany
_EncIing?—Germany

In the Spring
In the Spring of
of 1945 the Allied
1945 the Allied war
War against
against fascism
fascism
reached its
reached its highwater
highwater mark.
mark.
_‘ It
It was
was the
the spring
spring of
of liberation
liberation for
for the
the countries
countries of
of Europe.
Europe.
Even in
Even in the
the ruined
ruinedvcities and burned
cities and burned villages
villages the
the air
air was
was
sweeter: life
sweeter: life could
could start
start again.
again.
-- It
It was
was the
the spring
spring in
in which
which the
the American,
American, British,
British, and
and Rus-
Rus-
sian
sian armies
armies broke
broke into
into the inner'fortress of
the innerfortress of Nazi
Nazi Germany
Germany
and cut
and cut the
the Wehrmacht
Wehrmacht to pieces. Late
to pieces. in April
Late in April came
came aa day
day .
for which
for which men-had
men-had waited
waited all
all the
the years
Years of
of the
the war.
war. Infantry-
Infantry-
men of
men of the
the U.
U. S.
S. 69th
69th_Division and the
Division and the Soviet
Soviet 173rd
173rd Guards
Guards
Regiment worked
Regiment worked their
their way
way carefully
carefully to
to the
the Elbe
Elbe River,
River, found
found
shook hands.
each other and shook‘
Above all,
Above all, it
it was the spring
was the spring inin which
which the
the future of Ger-
future of Ger-4 II

many was
many was settled.
settled. It
It had
had taken
taken aa whole
whole war
war to
to figure
figure it
it out,
out,
but
but we
we had
had decided
decided on
on what
what we we were
were fighting
fighting for.
for. To
To reach
reach
agreement
agreement had
had been
been as
as difficult
CIIIIICLIII as
as any
any campaign
campaign ofof the
the war.
'\!
war.
Only
Only five
five 'years
years before,
before, the
the Allies
Allies had
had been
been virtual
virtual enemies.
enemies.
In
In 1933,
1933, it
it was
was mainly
mainly parties
parties of
of the
the Left
Left which
which marked
marked I

Hitler
Hitler as
as an
an enemy.
enemy. InIn the
the United
United States,
States, people
people who
who opposed
I
opposed
I191
91

I
Www-gw
Inew-wm--— -—
_._..4._-44.....-- -—-—
1...-——-

I192
92 I. 1 IO FAR
IG FARBEN
BEN

the Nazis
the Nazis in
in those
those years
years were
were later
later labeled
labeled “premature
“premature anti-
anti-
fascists.” Remembering
fascists.” Remembering the the manufactured
manufactured atrocity
atrocity .. stories
stories
of World
of World War
War I,I, people
people had
had discounted
discounted the
the stories
stories of
of fascist
fascist
repression' as
repression as propaganda.
propaganda. Now
Now itit was
was found
found that
that Belsen
Belsen and
and
Dachau and
Dachau and Buchenwald
Buchenwald could
could be
be smelled
smelled before
before they
they were
were
seen. The
seen. The truth
truth was
was worse
worse than
than any
any stories.
stories. After
After twelve
twelve
years the
years the whole
whole world
world saw
saw Nazism
Nazism for
for what
what it
it really
really was
was and
and
there was
there was aa determination
determination to
to end
end it
it forever.
forever.
In February,
In February, 1945,
1945, Roosevelt,
Roosevelt, Stalin,
Stalin, and
and Churchill
Churchill met
met
at Yalta.
at Yalta. Their
Their joint
joint declaration
declaration of
of February
February 11th
11th stated:
stated:
“Itis
“It 15 our
our inflexible
inflexible purpose
purpose toto destroy German militarism
destroy German militarism
and nazism
and nazism andand to
to insure
insure that
that Germany
Germany will
will never
never again
again be
be
able to
able to disturb
disturb the
the peace
peace of
of the
the world.
world. We
We are
are determined
determined to to
disarm and
disarm and disband
disband all
all German
German armed
armed forces
forces .. .. .. eliminate
eliminate
or control
or control all
all German
German industry
industry that
that could
could be
be used
used for
for military
military
preduction; bring
production; bring all
all war
war criminals
criminals to
to just
just and
and swift
swift pun-
pun-
ishment. .. .”
ishment. .”
Five months
Five months later
later the
the Big
Big Three
Three met
met again.
again. The
The war
war with
with
Germany was
Germany was over
over and
and two
two of
of the
the three
three most
most important
important lead-
lead;
ers were
ers were newcomers,
newcomers, but but there
there was
was nono change
change in 'in declared
declared
policy. In
policy. In the
the Potsdam
Potsdam Declaration
Declaration of of July
July 17th,
17th, Stalin,
Stalin, Tru-
Tru-
man, and
man, and Attlee
Attlee stated:
stated: “
“The purpose
“The purpose ofof this
this agreement
agreement is is to
to carry
carry out
out the
the Crimea
Crimea
Declaration on
Declaration on Germany.
Germany. German German militarism
militarism and and Nazism
Nazism
will be
will be extirpated
extirpated andand the
the Allies
Allies will
will take
take inin agreement
agreement to- to-
gether, now
gether, now and
and in
in the
the future,
future, the'other
the'other measures
measures necessary
necessary
to assure
to assure that
that Germany
Germany nevernever again
again will
will threaten
threaten her her neigh-
neigh-
bars or
bors or the
the peace
peace ofof the
the world.”
world. ” - .
The policies
The policies ofof the
the Crimea
Crimea and and Potsdam
Potsdam meetings
meetings were
were
not forced
not forced on on the
the United
United States.
States. Quite
Quite thethe contrary:
contrary: if if
anything, American policy was more severe and more deter-
mined to
mined to wipe‘
wipe' out
out German
German fascism.
fascism. Top Top American
American plans
plans
containedtin a directive
for the occupation of Germany were containedIin
from the
from the Joint
Joint Chiefs
Chiefs ofof Staff
Staff toto the
the U. U. S.
S. commander
commander in in
Europe, General Eisenhower. This directive, known as
Europe, as JCS
JCS

/" -
/
it
\
an
 I I
. I

1 ' . .
END|NG?—GERMANY
_ ENDING?—GERMANY I .. 193
193

1067,.
1067, had
had been
been approved
approved inin the White House
the White House on May 11,
on May 11,
1945,,after
1945,_after aa long
long internal
internal wrangle
wrangle in
in Washington.
Washington. ItIt rep-
rep-
resented
resented aa triumph
triumph forfor the
the vigorous
vigorous and unfaltering‘anti-
and unfaltering_anti-
fascist
fascist position
position Of
of the
the Secretary,
Secretary, of
of the
the Treasury,
Treasury, Henry
Henry Mor-
Mor-
genthau.
gcnthau.
JCS 10527 went
JCS IQQ7 went into full detail
into full to the
as to
detail as which should
steps which
the steps should
be taken to
be taken cut out
to cut out the heart of
the heart the Nazi
of the machine. Con-
war machine.
Nazi war Con-
cerning
cerning industry
industry it it stated
stated that:
that:
' ““ .. .. .. the
the Control
Control Council
Council should
should
. prohibit and
“a. prohibit and prevent production of
prevent production iron “and steel,
of ironi'and steel,
chemicals, non-ferrous
chemicals, metals, machine
non-ferrous metals, tools, radio
machine tools, and elec-
radio and elec-
trical
trical equipment,» automotive vehicles,
equipment,» automotive machinery .. .. ..
heavy machinery
vehicles, heavy
except
except for for the purposes [of
the purposes starvation or
preventing starvation
[of preventing or such
such
disease and
disease unrest as'
and unrest endanger the
would endanger
as would occupying troops]
the occupying troops]
prohibit and
“b. prohibit
“b. and prevent of plant
rehabilitation of
prevent rehabilitation and eqilip-
plant and equip-
ment
ment in in such
such industries
industries [except
[except for
for the
the needs
needs ofof the
the occupy-
occupy-
ing
ing forces]
forces] .. .. .” .”
Thus, the
Thus, conquering Allied
the conquering powers went
Allied powers into Gei‘many
went into Germany
fully prepared
fully with aa policy
prepared with running Germany
for running
policy for after the
Germany after the
war. policy was
The policy
war. The and reaffirmed
affirmed and
was affirmed all three
by all
reaffirmed by three .I

of major powers
the major
of the supported by
and supported
powers and opinion throughout
by opinion throughout I

the world.
the With Germany
world. With completely defeated
Germany completely there seemed
defeated there seemed
to be no
to be bar to'
possible bar
no possible putting the
to' putting policy of
the policy Crimea and
the Crimea
of the and
Potsdam meetings
Potsdam meetings into
into action.
action. It
II
m_xetwoqejear after the
And.,xst--@ns_,rssrsft@r ended. the
war ended,
the war agreed policy
tI1Q_*}8F€2EI__P9Ii9X.
"w cu... .. “m_-

for occu
for occupnggfiegglziny had gone up in §=.fi€6I<E
iii" GermahyuhiadgdnelufijiTin
-0-In-.-_. " .--un~nu|~ P,1 "" ...>. g
smoke.“- I I I
..-...-.-..___ --...,._. __ . Pk -..--vs---4--I '\i<I\I -.-o-<--I.-. .5-_o~- ‘ '4 “"““ ”_ _ .
,-— 1

everything else, agreement on a pohcy forfor occuping

an--0-»-1

Above everythingmElee'féngééiiriEHt'BH‘afiblicy
WKbBVe
0

occuping
Germany had
Germany product of
been aa product
had been unity of
the unity
of the Big Three.
the Big
of the Three.
Germany had been
Germany had common enemy,
the common
been the Germany conquered
enemy, Germany conquered ;_—._-L—-_'.-_

remained the
remained point at
center point
the center the interests
which the
at which the Big
of the
interests of Big
Three met—wand
Three clashed. The
met-—-—-and clashed. breakdown of
The breakdown common policy
of aa common
I’

policy II
I

for the
for occupation of
the occupation Germany was
of Germany was aa by-product, and the
by-product, and the
clearest sign,
clearest of the
sign, of disintegration of
perilous disintegration
the perilous relations among
of relations among
the United
the and Great
States and
United States and the
Britain and
Great Britain Soviet Union.
the Soviet Union.
After aa year
After of occupation
year of breakdown of
the breakdown
occupation the of relations was
relations was
I
I

I
I
r,-w--—-—

194
I94 IS FARBEN
IG FARBEN
so bad
so bad that
that it
it was
was impossible
impossible to
to get
get aa complete
complete over-all
over-all pic-
pic-
ture
ture of
of what was happening
what was happening throughout
throughout Germany.
Germany. But
But the
the
inside view
inside view of
of what
what had
had happened
happened in in the
the U.
U. S.
S. Zone
Zone of
of Occu-
Occu-
pation was
pation was bad
bad enough,
enough, all
all by
by itself.
itself. What
What was
was known
known ofof the
the
British Zone
British Zone made
made the
the picture
picture worse.
worse. '
- InIn spite
spite of
of strong
strong statements
statements of
of policy
policy and
and aa wealth
wealth of
of dubi-
dubi-
ous statistics,
ous the fact
statistics, the fact remained
remained that
that the
the Nazis
Nazis had not been
had not been
swept out
swept out of
of Germa'n life in
Germa'n life in the
the U.
U. S.
S. Zone.
Zone.
For
For years
years before
before the
the war
war ended industrial disarmament
ended industrial disarmament
had been
had been preached
preached as
as an
an absolute
absolute necessity,
necessity, and
and it
it was
was in-
in- '
_ cluded
eluded as one of the most powerful measures in JCS 1067.
Yet
Yet there
there was
was almost
almost no
no dismantling
dismantling for
for reparations
reparations or
or plain
plain Ti
destructionand IS Farben
arben‘itself key
key industrial
industrial war
war criminal,
criminal,
showed signs
showed signs of regrowth
of regrowth. _
In the
In the British
British Zone
Zone it
it was
was chargedtllat
eharged that large
large organized
organized
formations of
formations of the
the Wehrmacht
Wehrmacht were
were being
being -preserved."
preserved This
This”
charge was
charge was hardly
hardly denied
denied and
and certainly
oertainly not
not disproved.
disproved._' rm
At first,"
'At first, when
When it
it was
was apparent
appalent that
that all
all was
was not
not well
wellinIn the
the
management of
management of Germany,
Germany, there
there was
was aa tendency
tendency toto put
put the
the
blame on
blame on the
the French.
French. General
General MeNarney,
McNarney, as as successor
successor to
to
General
General Eisenhower,
Eisenhower, issued
issued statements
statements during
during the
the Fall
Fall of
of
1945
1945 to
to the
the effect
effect that
that the
the trouble
trouble was
was caused
caused byby lack
lack of
of aa
central
central government
government in in Germany,
Germany, and and that
that the
the French
French were
were
ipreventing
preventing formation
formation of of aa central
central government
government until
until the
the ques-
ques-
tion
tion of
of the
the Ruhr
Ruhr and
and the
the Rhineland
Rhineland waswas settled.
settled.
>
Now many
Now many things
things in
in truth
truth were
were going
going wrong
wrong inin Germany,
Germany,
but
but lack
lack of
of aa central
central government
government waswas one
one of
of the
the least
least of
of them.
them.
Much
Much more
more important
important were the facts
were the facts that
that there had been
there had been
no
no thorough
thorough denazification;
denazification; that reparations had
that reparations had not
not even
even
started to
started to move;
move; that
that aa fight
fight between
between British
British and Russians
and Russians
had prevented
had prevented settlement
settlement of
of the
the really
really major
major question——how
question~—how
much industry
much industry would
would the
the Germans
Germans be be permitted
permitted toto have?
have?
Had the
Had the key
key policy
policy questions
questions been
been settled,
settled, it
it would have been
would have been
a3 relatively
relatively simple
simple administrative
administrative problem
problem to to proceed to run
Germany eliiciently,
Germany efficiently, and
and prevent
prevent chaos
chaos and
and starvation.
starvation. The
The
~:'-:*\
‘" iv
,1 ,

4 H
f.

I.
Q ‘:1’?
 ENDING?—GERMANY
ENDING?-—GERMANY _‘ '195
| 95
present state
present state ofof affairs
affairs does
does not
not even
even help
help the
the German
German peoplepeople
as
as aa whole;
whole; only only the
the Nazis
Nazis stand
stand to gain.
to gain.
In every problem
In every problem the the root
root of
of the
the trouble
trouble waswas thethe same.
same. F01-
Fol-
low
low the
the threads
threads of of debate
debate in in the
the Allied
Allied Control
Control Council
Council farfar
enough
enough and and in in every
every case you come
case you come to to the
the same
same falling
falling apart
apart
of the
of the big
big powers.
powers. The The typical
typical line-up
line-up showed
showed the the Russians
Russians
and British
and British at at opposite
opposite polespoles with
with thethe Americans
Americans and and French
French J
J
|
somewhere in
somewhere in between.
between. More More and and more,
more, as as the
the months
months wentwent
I by,
by, the
the American
American position
position moved
moved closercloser to to the
the British.
British,
To judge
To judge absolute
absolute rightright and
and wrong
wrong in in these
these cases
cases isis im-
im-
possible. But
possible. But thethe directions
directions in in which
which the the nations
nations movemove cancan
be clearly
be clearly enough
enqugh seen seen through
through aa veilveil of of back-and-forth
back-and-forth ma- ma-
neuvering. The
neuvering. The Russians
Russians have have moved
moved generally
generally in in the
the direction
direction
of aa peace
of peace treaty
treaty which
which would
would end end inin aa thorough
thorough wipingwiping outout
of "the
'the German
German war-making
war-making potential.
potential. The The British,
British, from
from thethe
\
of I

very beginning
beginning of of thethe occupation
occupation period,
period, havehave fought.con-
foughtcon-
I
very
sistently for
sistently for aa program
program much much easier
easier on on the
the Germans.
Germans. The" A

representatives
representatives of theIUnited
of the“ United IStates havIe_I1_nIove_d
States_h_a_v_e_ both ways
_m_o_ved_H_both__ways
at once; but
at once; but for every step
for every step "'i'ii"the“' direction there
Russian direction
in the Rhssiafi there i
have Ihee11
have threein
beenthree 1n the
the Britishdirection.
British direction. _ ‘ t
For the
Fail‘ the British there was
British there was never
never any any real
real internal
internal conflict.
conflict.
They were
They were signatories
signatories to to the
the Crimea
Crimea and and Potsdam
Potsdam Declara-
Declara-
tions but
tions but itit is
is possible
possible theythey signed
signed without
without fully
fully subscribing
subscribing
to the
to meaning. For
the meaning. For the States the
United States
the United case is
the case is difl‘erent.
different.
Anierican policy,
American policy, as as written
written in in JCSJCS 1067,
1067, would
would have have up-
up-
rooted the
rooted of fascism
basis of
the basis was, incidentally,
and was,
fascism and similar to
incidentally, similar to
the Russian
the position. A year
Russian position. of occquatio11ofGe
year of 'occupatio’n_ ofMGerma_ny made II
rmany made
Ian1II1Itter
man shambles out
utter shambles out of JCS 1067.
of ]CS'1067.’ D ' l

The position
The position of IG Farben
of IG Farben during
during thethe occupation
occdpation offers
offers
aa case study for
case study the rest
for the of German
rest of German industry.
industry. AsAs far
far as
as the
the
American
American Zone Zone was
was concerned,
concerned, IG
IG was
was recognized
recognized from
from the the
start
start asas aa Number
Number One One war-maker.
war-maker. InIn fact,
fact, as
as aa tribute
tribute to
I
to
its great
its great services
services to
to the
the Nazi
Nazi State,
State, lG_,_w_a_s___honored
IG_was honored IIby{1W
by_“__£_1 _ nu» “1—wa-

speeial U.
special U. S.
S. Military
Military Gevernment law, aimed at makmg it
Government law, it
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___ ...-- .41
:___=_L_-*—__,;_.._»--——~"—~* —~'\ -— 7‘

1196
96 ~1 . [G FARBEN
IG FARBEN
harmless.
hfl1"IY1l6SS- On
On July
July 5,
5, 1945,
194-5, the
the U.
U. S.
S. Military
Military Government
Government
. issued
issued its
its General Order No2, directedrspecifircallyi
Gsn'eni1t0rdertNs'.“2, directed specifically at1C
‘a“t“lG
Farben. The
Farben. The order
order contained
contained aa three-way
three--way attack
attack on
on thethe IG:1G:
the whole
the whole of
of IG’s
IG’s property
property was was to
to be
be available
available for
for shipment
shipment
out
out of
of Germany
Germany as as reparations
reparations to the United
to the Nations; if
United Nations; if not
not
moved
moved out, any parts
out, any parts of of IO
IG used
used inin war
war production
pioduction werewere to to
be
be destroyed;
destroyed; ownership
ownership and and control
control of
of the 1G empire
the IG empire was was to to
be broken
be broken up.
up. I p - - -
General
General Order
Order No.
No. 2 2was
was bolstered
bolstered by by aa Special
Special Order
Order
issued on
issued on the
the same
same day.
day. The
The Special Order appointed
Special Order appointed an an IGIG
Farben
Farben Control
Control Officer
Officer andand flatly
flatly instructed
instructed himhim to
to ““ .. .. .. pre-
pre-
vent
vent thethe production
production byby and
and rehabilitation
rehabilitation of
of [1G]
[IG] plants
plants
. . .. except
except as
as may
may be
be specifically
specifically determined
determined to
to be
be in
in accord-
accord-
ance
ance with
with the
the objectives
objectives of
of the
the United
United Nations.”
Nations.”
The
The outlook
outlook for
for IG
IG Farben
Farben was
was very
very black.
black. There
There had
had never
never
been any question
been any the minds
in the
question in the leaders
of the
minds of IG about
of 1G
leaders of about
their
their fate the hands
at the
fate at the Russians:
of the
hands of had carefully
they had
Russians: they carefully
‘- destroyed
destroyed important
important war
war plants
plants in
in the
the path
path of
of the
the Red
Red Armies
Armies
and
and all of the
all of Who could
leaders who
the leaders away in
get away
could get in the days
last days
the last
hurried
hurried to meet the
to meet the advancing
advancing U.
U. S.
S. and
and British
British forces.
forces. And
And
now, for
now, for their pains, they
their pains, were jailed
they were jailed and orders were
and orders issued
were issued
which
which seemed
seemed to to make
make further
further operations
operations impossible.
impossible. ‘
Investigation
Investigation of of 10
IG Farben
Farben was was conducted
conducted by by the
the Finance
Finance
\
Division of
Division U. S.
the U.
of the element of
S. element of the Control Council
Allied Control
the Allied Council
for
for Germany,
Germany, under
under Colonel
Colonel Bernard Bernstein, leading
Bernard_Bernstein, leading rep-
rep-
resentative in
resentative Geirmlaiiyw of
in Germany 'tti£=='“'gi1¢5'iIpt which
of thegi'o11p whichlhad written the
had written the
basic policy
basic document, JCS
policy document, JCS 1067. 1067. No No matter how diflicult
matter how dillicult
it might be to probe into the scattered
into the records of
scattered records IG Farben,
of 1G Farben,
\
at
at least
least’ there
there was
was nono chance
chance of of aa white-wash.
white-wash.
But
But support
support forfor IG wasinthem_aking,along
IG_v_v“s_1_s,_in_tl3,e___r_n__al<ing, along seVeral11.1135-
severalglines.
Theatf'a'fikagdifié‘t'”1G
The was based
mt:-161% against IG‘ was on JCS1067. How-
based B“riW']CSbr“l"OBT7i.-lliioivtfiv
ever,
ever, even
even before
before thethe war
war ended
ended there
there was
was strong
strong pressure,
I
pressure,
notably.fr__o_r_r_1the British, directed
wvmwu
directed against
against thepositiéinwhich
the""p“ositi6n""iiilii'ch
JCS 1067
JCS 1067 represented.
represented. For example,
For example, in
in the
the early
early months
months p
of
of 1945
1945 aa conflict
conflict developed
developed between
between British
British and
and American
American

.
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"'_-"'--Z‘P*,,'-QIQ’

ENDING?—GERMANY
ENDING-?——GERMANY '|'l 97
97
officials over
oliicials control of
over control of inflation in'posbwar Germany.
inflation inpost-war Germany. TheThe
British argued
British argued for
for aa program giving top
program giving top priority
priority to
to con-
con-
trolling
trolling German
German inflation.
inflation. TheThe American
American side countered by
side countered by
pointing
pointing out that: 1)
out that: 1) while no one
__while no one wanted
wanted unnecessary
unnecessary chaos
chaos
in Germany,'
in Cermany,'effective inflation control
effective inflation was beyond
control was beyond the
the power
power
"'5;

of the
of the Allies
Allies because
because 2)2) the
the British
British program
program would force
would force
main emphasis
main emphasis on
on reviving
reviving the German economy
the German economy whereas
whereas 3)
3)
it
1t was the main
was the task of
main task of the
the Allies
Allies to
to eliminate
eliminate German war-
German war-
makers and their industrial base.
Soon enough, also,
§.9‘2.£L§“°“gl‘* ‘1‘1S°- oppositionto
°PP°Siti9.ELE9: JJCS
CS 1067developedwith-
1057.§.9!?.19P.s.<.1_.‘.t{i£h'
I

in the t0"p*j,"a;3_1;;_§:s;;4js;@;@a,,_1gg@_s;;n£51"a can politiczil

anmw-m—um m mum _..‘H-—-ma
a-r

in the top circles of*AmencanlegéershipMChief political

“V".
w— "Wu

adviser
adviser to General Eisenhower
to General Eisenhower and
and £'B"'"Hi§
tbhis Deputy
Deputy Military
Military
Governor,
Governor, General Lucius Clay,
General Lucius Robert Murphy
was Robert
Clay, was 'Murphy of the
of the
State Department. In
State Department. In North Murphy had
Africa Murphy
North Africa had been known
been known
I
as
as __a_supporter of the
a supporter of Darlan. In
Admiral Darlan.
Vichyite Admiral
the Vichyite Germany
In Germany
he
lieilplayed cagey game.
more cagey
played aa more actual lead
The actual
game. The in the
lead 1n attack
the attack
on the
on 1067 policy
JCS 1067
the JCS taken by
was taken
policy was Economics Division
the Economics
by the Division
of the
of American Control
the American Council group.
Control Council The commanding
group. The commanding
otiicer of
officer the Economics
of the Division was
Economics Division Brigadier General
was Biigadier General
William
William Draper, formerly with
Draper, formerly the Wall
with the Wall Street firm of
Street firm Dillon,
of Dillon,
Reed81company.
"um

Rle'€dI8z"Cor__npany. iJ
"An American
An probing into
investigator probing
American investigator into the affairs of
the affairs the
of the
great German
great steel trust,
G“e“firia*n'"steel Stahlwerke, came
Vereinigte Stahlwerke,
trust, Vereinigte came upon
upon
EthléttEF'ifo wamVereinigte Stahlwerke
T:t"létt'é'r"it“r'i"”amVereinigte dated in
executive dated
Stahlwerke executive in the
the
“1'930’Ei‘ziii fldwsigned by
Fl'93U’§l3:aiid':_sig11ed by William Draper of
William Draper of Dillon, Reed. It
Dillon, Reed. It
was"a'qu1te normal,
w?§"fi"tifiité normal, friendly, business letter.
friendly, business Certainly there
letter. Certainly there
was nothing
Was in the
illegal in
nothing illegal of such
writing of
the writing in aa normal,
letter in
such aa letter normal,
peace-time year.
peaoe-time But certainly
year. But it was
also it
certainly also expecting aa great
was expecting great
deal to
deal that men
suppose that
to suppose entire careers
whose entire
men whose been spent
had been
careers had spent
in friendly
in dealings with
friendly dealings German businessmen
with German could suddenly
businessmen could suddenly
turn
turn about
about and
and destroy
destroy their
their former
former associates.
associates. The
The Eco-
Eco-
nomics
nomics Division
Division was
was stafi‘ed
staffed by
by such
such American
American businessmen,
businessmen,
in
in army
army uniform.
uniform. As_As one
one of
of them
them remarked
remarked frankly,
frankly, “How
“How
canmyou expect
canyou us to
expeetus the Germans
punish the
to punish Germans’ for we would
things we
for things would
have
have done
done 1n thei1 -places?”
in their places?” . ..

I
 I 98
198 IG FARBEN
IG FARBEN

From the
From the beginning
beginning Colonel
Colonel Bernstein
Bernstein and his group
and his group were
were
in ‘continuous
in 'c'oiiti'riubus conflict
conflict with
with Murphy
Murphy and
and Draper
Draper andand their
their
staffs. In
staffs. In September,
September, af_ter__only
after only four months of
four ‘iriontlis of the
the occupa-
occupa-
tion
tion of
of Germany,
Germany, Bernstein
Bernstein was
was removed
removed as
as Finance
Finance Director.
Director.
The
The Economics
Economics Division,
Division, under
under General
General Draper,
Draper, was
was win-
win- I
Hing
ning out.
out. -
Barely
Barely aa month
month after
after the
the signing
signing of of the
the Potsdam
Potsdam Agree-
f

Agree-
ment
ment in July Draper
in July German Standard
appointed aa German
Draper appointed of Living
Standard of Living
Board which
Board proceeded to
which proceeded to stand Agreement on
Potsdam Agreement
the Potsdam
stand the on its
its
head and rip
head and heart. At
its heart
out its
rip out At the head of
the head new Standard
the new
of the Standard
of
of Living
Living Board
Board was
was Calvin
Calvin B.B Hoover
Hoover of of Duke
Duke University.
University
The
The basic
basic approach
approach of of the
the Potsdam'
Potsdam’ Agreement
Agreement and
and pre-
pre
ceding policy
ceding policy had been: how
had been much of
how much of the German economy
the German economy
must be
must removed or
be removed destroyed to
or destroyed Germany as
finish Germany
to finish as aa war
war
threat‘? General
threat? Draper sent
General Draper Hoover and
Df. Hoover
sent Dr the Standard
and the Standard
of Living
of Living Board off in
Board off direction how
new direction:
in aa new much industry
how much industry
must the
must Germans have
the Germans themselves an
provide themselves
to provide
have to an adequate
adequate
standard
standard of And to
living? And
of living‘? sure that
make sure
to make standard would
the standard
that the would
be high
be high enough
- the Board
enough, the twisted not
Board twisted 7 the spirit
only the
not only but the.
spirit but
- _ the . . J . .. J M

spemfic words of
specific words of the Agreement The
Potsdam Agreement.
the Potsdam The Agreement
Agreement
had stated
had Allied controls
that Allied
stated that would be
controls would imposed to
be imposed to assure
assure
production would “
which would .maintain Germany average
in Germany
maintain in
. I ‘Q’ - . .
production which average
living
living standards exceeding the
not exceeding
standards not 0 the
average of
the average standards of
the standards 0
living European countries
of European Board interpreted
Hoover’3s Board
countries. ” Hoover
0 I ' ,9 Q '
living of interpreted
this
this to that the
mean that
to mean were called
Allies were
the Allies to guarantee
upon to
called upon guarantee
for the Germans
for the standards no
Germans standards than prevailed
lower than
no lower in Europe.
prevailed in Europe.
The
The immediate
immediate effect
effect was
was toto Jraise
raise German
German production
production
standards,
standards, to amount of
the amount
cut the
to cut equipment which
of equipment could be
which could be
taken
taken as reparations, and
as reparations, and to the German
leave the
to leave war potential
German war potential
much
much more
more nearly
nearly intact.
intact The
The basic
basic industry,
industry, steel,
steel, was
was
typical
typ1C£ll of
of the
the rest.
rest Early__
Early U. S. estimates
U MS estimates (as
as for
for example
example
by
by the
the Foreign
Foreign Economic
Economic Admlmstratlon)
Administration of of the
the amount
amount of of
steel
steel capacity
capacity which
which would
would have
have to
to be
be left
left in
in Germany
Germany had
0 u ) ,
had
tallied
tallied closely
closely with Russian estimates—five
estimates-—-five million tons
peryear or less. Thereport
The report Of
of the
the HoOver
Hoover Board
Board permitted"“ ‘"‘ i
-v,-.--i_~.»»a~
per yearjorgless ~.ru- "3-." p...
permitted
. HM
/
/
/
 \

ENDING?—GERMANY
ENDlNG?——C-I-ERMANY 199
‘I99
aboutleight million tons
about_eight million tons annual capacity or
annual capacity or more.
inore. ‘
The effects
The effects of
of all
all this
this on
on IG
IG Farben
Farben were
were quickly
quickly seen.
seen.
Shortly after
Shortly after the
the Hoover
Hoover report
report was
was made
made stock
stock markets
markets were
were
permitted
permitted toto reopen
reopen in,
in three
three German
German cities:
cities: Hamburg
Hamburg inin
the
the British
British Zone
Zone and
and Frankfurt
Frankfurt and‘Munich
and\Munich in
in the
the U.
U. S.
S. Zone.
Zone.
IG
IG Farben
Farben had
had been
been done
done away
away with
with by
by Military
Military Government
Government
order,
order, but
but now
now IG
IG stock
stock reappeared
reappeared onon the
the exchange.
exchange. TheThe
dead
dead corporation
corporation showed
showed surprising
surprising vigor:
vigor: trade
trade in
in IC
IG
stock
stock was
was brisk
brisk and
and the
the price
price rose.
rose.
Something
Something was
was clearly
clearly wrong.
wrong. Simultaneously,
Simultaneously, two
two inves-
inves-
tigations
tigations of
of current
current IG
IG Farben
Farben operations
operations were
were made.
made. Reports
Reports
were
were submitted
submitted in
in the
the middle
middle of
of December,
December, 1945,
194-5, and
and it
it
turned
turned out
out that
that the
the Germans
Germans who
who were
were bidding
bidding for
for the
the stock
stock
of
of IGIG knew
knew what
what theythey were
were doing._
doing..
This
This waswas seven
seven months
months after
after the
the Germans
Germans had had surrended,
surrended,
five months
five after aa special
months after control authority
Farben control
IG Farben
special IG authority under under
'Edwin S.
Colonel Edwin
Colonel Pillsbury had
S. Pillsbury been set
had been up-to take
set up-to take special
special
care that
care that IG
IG Farben
Farben should
should not
not be
be rebuilt.
rebuilt.
Pillsbury had
Pillsbury had beenbeen specifically
specifically ordered
ordered by by General-Eisen-
General-Eisen-
howcr to
howcr production in
prevent production
to prevent plants “except
IG plants
the IG
in the “except as as may
may
be specifically
be determined to
specifically determined to be accordance with
in accordance
be in with the the 0b- ob-
jectives of
jectives of the
the United
United Nations.”
Nations.” '‘
The discovered that
investigators discovered
The investigators that productionhad started
pI‘0(lt‘l__(_3l_l_‘0'Il_ _l1__<'-Id _,$1?!¥'t.!3.d.
'all'im'pi'irtiiiit IG
in allimportant
in plants1nthe
IG‘plants in'the'U. S. Zone.
U. S. Apparently, it
’Z<3Hél Apparently, it was
was
thought that
ithoiight“ 'a'nd"it11 production
any andall
that any 1n IG plants
pirodiictionHin“IG plants was was in in line
line
with Nations objectives.
United Nations
With United objectives. the best
In the
In tradition of
best tradition of
American engineering,
American engineering, the
the U.
U. S.
S. Control
Control Officers
Officers were
were seeing
seeing to
to
it that
it wheels would
the wheels
that the again—in factories
turn again—in
would turn which had
factories which had
been the
been the center
center of
of the
the Nazi
Nazi war
war effort.
effort.
German plant
German officials testified
plant officials their production
that their
testified that was still
production was still
low
low only
only because
because of
of shortage of fuel
shortage of fuel and
and raw
raw materials.
materials. As
As
far
far as
as the
the Control
Control Officers
Ollicers Were
were concerned,
concerned, thethe Germans
Germans said,
said,
everything
everything was
was fine.
fine. The The Germans’
Germans’ requests
requests for
for production
production
' authorizationswere
authorizationswere always
always approved;
approved; sometimes
sometimes they
they were
wero
e'jf‘efimaés’téd;
eye*n"b"66§té’d; r
-' \
vn... uwn
in... ¢..--- quWW
-ii-.~..-._,.,,,,,, "Iva
,,,.... . n,
v., -

J
_,_-__f_- .1.’ r.

200
200 '' IG FARBEN
IG FARBEN
Just how Colonel
Just how Pillsburyr proposed
Colonel Pillsbury proposed to to determine
determine whether
whether
production was
production was inin line
line “with
“with the
the objectives
objectives ofof the
the United
United Na-
Na-
tions” could
tions” could not
not be
be seen.
seen. There
There were
were no
no central
central recordswliich
recordswhich
permitted adequate
permitted adequate control
control of of production
production plans.
plans. There
There was
was
no evidence
no evidence that
that any
any plan
plan prepared
prepared by by German
German management
management
had ever
had ever been
been rejected
rejected by by Pillsbury’s
Pillsbury’s office.
office.
For some
For some ofof the
the old
old IGIG plants,
plants, like
like the
the works
works at at Hoechst
Hoechst
near Frankfurt,
near Frankfurt, thethe argument
argument was was made
made that
that the
the German
German
people were
people were completely
completely dependent
dependent on on them-—-—for
themwfor pharmaceu-
pharmaceu-
ticals, for
ticals, example. But
for example. But the war-time plants
purely war--time
the purely of IG
plants of IG
were also
were also starting
starting all
all over
over again.
again. Hidden
Hidden in in the
the forests
forests ofof
eastern Bavaria
eastern Bavaria waswas thethe Gendorf plant. Gendorf
Gendorf plant. Gendorf Was one
was one
group of
of aa group
' of chemical works
dozen chemical
of aa dozen built by
works built by the German
the German
State, solely for
State, solely production, and
war production,
for war operated by
and operated by IG Far‘ben.
IG Farben.
Gendorf would never
Gendorf would been built
have been
never have except for
built except for one main
one main
item of
item of productioni mustard gas.
productioni mustard now it
And now
gas. And developed that
it developed that
Gendorf,
Gendorf, too,
too, was
was producing
producing again
again and
and big
big plans
plans were
were being
being
made for its
ml-.i'<1s"£<s'i-' future. It
its future. an excellently
was an
It was equipped, modern
excellently equipped, modern
plant,
plant, well
well camouflage
camouflaged d and
and never
never injured
injured during
during the
the war.
war.
In
In the
the process
process of
of making
making mustard
mustard gas,
gas, large
large quantities
quantities of
of
ethylene di-glycol
ethylene were produced.E
di-glycol were produced. Ethylene di-glycol happens
thy1ene diglycol happens
to
to be
be the
the same
same thing
thing as
as Prestone,
Prestone, sold
sold in
in America
America asas an
an anti-
anti-
freeze. So
freeze. now Gendorf.
So now producing large
was producing
Gendorf_ was quantities of
large quantities of
anti-freeze, with only
anti-freeze, with last unit
one last
only one the plant
of the
unit of to make
needed to
plant needed make
mustard gas
mustard standing idle.
gas standing idle.
According to
According the Potsdam
to the Agreement the
Potsdam Agreement whole schedule
the whole schedule
of
of reparations
reparations was was to
to be
be settled
settled by
by February
February 2, 2, 19416,
194-6, and
and ad-
ad-
vance
vance deliveries
deliveries were
were toto start
start well
well before
before the
the February
February dead-
dead-
line. By" themiddleof December, 1945, not one item of IO
},y__,_the__middleK_of__HDeceinbe_r, IG
equlpmenthad been shlpped shipped out "of the
outnrof ‘the’ US
U.MS." Zone as réfiat‘a'l“:
“W
in: “Mn: aw.
‘ ‘1

tions..There
There had”not evenbeenanypreliminar
had no't'evé‘n"been any" preliminary y dismantlin
dismantling!“g”
- “" M—‘nuwm

5-c.-=aw.‘
_- wt:
‘W5|
,.
"\w,.\.|,“__-
to
Y0 get
get ready
ready for
for the
the reparations
reparations shipments.
shipments. Instead,
Instead, investi-
investi-
i-"wax-_~.¢.__*
gators
gators stood
stood byby and
and watched
watched while
while equipment
equipment was was moved
moved
from
from aa government--huilt
government-built plant
plant atat Bobingen
Bobingen to to the
the nearby
nearby
. IG
IG Bobingen
Bobingen silk
silk works.
works. -
/
/
/ .

0 J

1- -1?-if
 ENDING?—GERMANY
ENDING-?—-GERMANY . 201
201
There were
There were units
units in
in all
all of
of the
the IG
IG plants
plants which
which hadhad no
no use
use -
at
at all for war
except for
all except there were
production; there
War production; than adozen“.
more than
were more a dozen
plants which,
plants as aa whole,
which, as were built
whole, were only_for thewar. Yet.”
builltlldnlyfori‘tlieuwarff Yet‘ _
£65361thesgw'e1e except fer
destroyedexcept
ii'5"£ié"6'£"i1i'é§é‘ttsisffassiisysa afew units
'foi~"' éfiéw in two”
units in two
1212113?“
Iiiiifs*.W Thedestroyedfinits111ade
Th'“e'Y-destroyed'f'iinit‘§‘“inade interesting
interesting newSreel
lnewsreel shots
shots
fi—thcir
l%fThcir destruction
destruction had
had little
little effect
effect on
on the
the fifty-five
fifty-five manu-
manu-
facturing installations
facturing which IG
installations which owned or
Farben owned
IG Farben operated in
or operated in
the U.
the U. S.
S. Zone.
Zone. i
In _all
In all respects
respects the
the picture
picture was
was one
one of
of regrowth
regrowth of
0f IG
IG
Farben. Although
' Farben. many of
Although many of the of IGb
leaders of
the leaders IG had re-
been re-
had been
moved and
moved and some were still
some were there were
arrest there
under arrest
still under were signs of
signs of
renewal
renewal of
of the
the old
old interconnections
interconnections among
among the
the IG
IG plants.
plants. This,
This, ,
too, ran
too, counter to
directly counter
ran directly 1067 and
JCS 1067
to JCS Potsdam Agree-
the Potsdam
and the Agree-
ment. As agreed
ment. As the Big
by the
agreed by at Potsdam:
Three at
Big Three the earliy
“At the
Potsdam: “At earli-
est practicable
est date, the
practicable date, economy shall
German economy
the German be decenL
shall be decen-
tralized
tralized for
for the
the purpose
purpose of of eliminating
eliminating the the present
present excessive
excessive
concentration
concentration of of economic
economic power
power as as exemplified
exemplified in in particular
particular
by
by cartels,
cartels, syndicates,
syndicates, trusts,
trusts, and
and other
other monopolistic
monopolistic arrange-
arrange-
ments.” I
ments.’ '
In
In Munich
Munich lived
lived aa man named Gehhard
mannamed Gebhard 01th.Orth. 01th
Orth had
had
been IG
been IG salesmanager
salesmanager for for all
all of
of Bavaria.
Bavaria. Investigation
Investigation re-re-
vealed that,Orth
vealed that,Orth was
was nownow acting
acting asas representative
representative for for the
the
reformed mustard
reformed mustard gas
gas works
works atat Gendorf
Gendorf and and toto keep
keep things
things
running smoothly
running smoothly waswas serving
serving as
as go-between
go-between for for IG
IG plants
plants
all over
all over Bavaria
Bavaria with contacts re-established
with contacts re-established as as far
far west
west asas
Frankfurt.
Frankfurt. Orth’s
Orth’s operations
operations extended
extended intointo the
the French
French Zone
Zone
of
of Occupation
Occupation wherewhere informal
informal transfers
transfers of of equipment
equipment were
were
arranged
arranged between
between Gendorf
Gendorf in
in the
the U.
U. S.
S. Zone
Zone and
and the
the great
great
works
works at
at Ludwigshafen
Ludwigshafen in
in the
the French
French Zone.
Zone. When
When inter-
inter-
viewed
viewed byby American
American investigators,
investigators, 01th
Orth was
was full
full of
of plans
plans
which
which he
he was
was negotiating
negotiating with
with the
the Bavarian
Bavarian Ministry
Ministry of
of Eco-
Eco-
nomics.
nomics. ForFor example,
example, aa new
new power
power unit
unit was
was planned
planned forfor
Gendorf
Gendorf which
which would
would permit
permit itit to
to expand
expand production
production greatly.
greatly.
In
In May,
May, 1945,
1945, shortly
shortly after
after being
being arrested,
arrested, 'Max
Max Ilgner
Ilgner
wrote
wrote aa letter
letter to
to two
two of
of his
his assistants.
assistants. He
He instructed
instructed them
them
@—

2
2 02
02 IG FARBEN
IO FARBEN

keep in
to keep
to in touch with each
touch with other and
each other the rest
and the of the
rest of of-
IQ of-
the IG
ficials. I-Ie
- fieials. He stressed need to
the need
stressed the the organization
keep the
to keep alive
organization alive
because, he
because, he predicted, the Americans
predieted, the would eventually
Americans would permit ‘
eventually permit
1G to
IG sta‘ttlover
to start So'cocksure was
again. Sopcocksure
lover again. Ilgner that
was Ilgner sent
he sent
that he
"the letter by
the letter by an ‘American intelligence
'ah American and his
agent, and
intelligence agent, letter
his letter
urged his colleagues £0
his clqlleagues seek American
to seek assistance in
American assistance getting
in getting
' touch
in eh wit another.
one anot
with one er.
The Ilgner
In 't5[?}:l¢ Ilgner letter was not
letter was not delivered. the IG
But the
delivered. But men did
IG men did
instructions. Although
not need such instructions. 1067 and
JCS 1067
Although JCS and thethe
Crimea and Potsdam Agreements
and Potsdam remained on
Agreements remained books and
the books
on the and
Farben was
IG Farben
IG dead Itgey
officially hdsad
was oflicially good start
made aa good
they made at aa
start at
QW ccycle or IG..
growth for
of growt ..
whole new cle of
The reports which
Wh-:([)'j1eenrepoifl;s Which were issued in
were issued December caused
in December only
caused only
minor set-back
minor IG.
for IG.
set-back for A more minor
few more
A few were
plants were
minor plants
for reparations.”
“available for
Zeclared “available By law, all of IG Far-
reparations.” By
fdeclared law, all of IG Far-
had been
ben had
ben “available for
been “available from the
reparations” from
for reparations” beginning.
the beginning.
Soviet Union
the Soviet
With the and the
Union and Powers moving
Western Powers
the Western fur-
moving fur-
apart, the
further apart,
herr and further whole idea
the whole reparations began
of reparations
idea of to
began to
t kc on the quaint aspect of a historical curio.
thetheon the quaint aspect of a historical curio. The break-up ..
break-up
ti; Big Three was the salvation of
tiling Big’ Three. was
O . .. salvation
the . .
IG Farben.
. of. IO Farben.
. l I U WU > '
t -' ,

The progress
The of IG
progress of Farben-under American
IG Farben-under occupation
American occupation
typical
ical of industry as
of industry in the
whole in
as aa whole S. Zone
U. S.
the U. Ger-
of Ger-
Zone of
Wils
wasnytypAnd
And the failure of industrial disarmament was typical
industrial disarmament
m3
mama” ' collapse of the whole
the collapse of the whol e prog ram
program to
to cut out the evils of _
evils of
er
"t n.
o__,_ P61,-gas system.
9._f- , I n
t. 't thot hing was
Germanwa
theN0thing
.1 sys
s given
o ty than
I rl
hlI gher 'priority
glI ven higher prlo than
‘ the denamfio
cauo
the denazificationo

ram-
am_ Here
Here the
the whole
whole question
question of of leadership
leadership in in Germany
Germany
Frog.
Progf volvedo
volved. If If IGIG Farben,
Farben, forfor example,
example, was was never
never toto plan
plan
Was 11;.0duC6
was “Induce for war again, guidance of German government
a 11 (1 industry
find had to
dustry had be taken from the hands of
to be those who
of those be-
who be-
_n 13
and
a d in war as a way of living. The first and most direct
llevioach to
liegioach to this
this problem
problem was was toto wipe
wipe out
out the influence of
the influence the
of the
3?
N851 Party- lterms
iriii geaneifal
-

In genera
It . _ I
terms there was no doubt about what was wanted.
ENDING?——-GERMANY
ENDING?--GERMAN‘Y -- 203
'' 20:;
JCS 1067 had
JCS 1067 that all
stated that
had stated supporters of
active supporters
all active or
Nazism or
of Nazism
militarism would
militarism excluded from
be excluded
would be from public or from
office or
public office po-
from po-
sitions of importance in industry,
importance in finance, com-
agriculture, finance,
industry, agriculture, com-
merce, or
merce, else. Exactly
anywhere else.
or anywhere to carry
how to
Exactly how out denazi-
carry out denazi-
fication
fication was
was aa harder
harder question.
question.
Should all Nazis
Should all rounded up
be rounded
Nazis be shot? They
and shot?
up and done .
had done
They had
as
as muchto
much.to people
people who
who opposed
opposed them.
them. 1

Should they all

Should they given speedy
be given
all be and at
trials and
speedy trials sent to
least sent
at least to
jail? they be
Should they
jail? Should of property
deprived of
be deprived and all
property and political
all political
I
I

rights? And
rights? who were
finally, who
And finally, Nazis and
the Nazis
were the there good
were there
and were good II.

ones and
and bad
bad ones
ones among
among them?
them?
F

ones i
It

There seemed
There to be
seemed to too many
be too to answer
questions to
many questions answer allall at
at I
I

once.
once. To make aa beginning,
To make in June,
beginning, 1n 1945, an
June, 1945, over-all U.
an over--all U. S.
S. 4
I
policywas worked out
p_oli_cy__w_a_s worked the Nazis
which aimed at knocking tlie_l\___lazis
o11t which_aiiried'at_knocki_ng I
out
oiit of of importanc
poSitions of
of positions importance, Emphasis was
e. Emphasis 011jobs:
was Jon, other'
jobs: other
punishment
piifiishment ceuld
could come
aims later.
later. ‘‘IA
even on
But even
But this basic
on this was aa policy
there was
level there
basic level fight. And
1
policy fight. And
as usual,
as the Political Adviser, Robert
usual, the,,P_olitical_Ad_vise_r, Murphy, was
Robert._Murphy, linedM
was lined
.u PH against
up itghinst
_ _ Colohel
Colonel Bernstein and the
_ ,, . Bernsteinand the men who sought
men who apply
to apply
sought to
the ant1Naz1 principles
the anti-Nazi principles ofof JCS Bernstein and
1067. Bernstein
JCS 1067. his
and his E.’=..-1._.-_. ,_._ _

deputy, Russell
deputy, Russell A. argued for
Nixon, argued
A. Nixon, clean sweep.
for aa clean “Get
sweep. “Get
rid of
rid of all them now,
of them
all of while We
now, while we have the chance,”
have the Nixon
chance,” Nixon I
I
I

said. “Clean
said. “Clean out industry as
out industry well as
as well government. Then
as government. we
Then we <

Ger-
t I

properly begin
can properly
can begin the re--education and
the re-education and re-building of Ger-
re-building of
many. And
many. And we give the
can give
we can Germans aa chance
anti-Nazi Germans
the anti-Nazi to
chance to
get started.”
get started.” ‘
M11rphy’5
Mi_i_i_"phhy’s men
men argued
argued for
for mandatory
mandatory. removal
removal ofof only the.
only the
leaders of
leaders the Nazi
of the Party. A
Nazi Party. A compromise
compromise was all
reached: all
was reached: <r1'-:—4+»-~-._- ._

who had joined

Nazis whohad
Nazis’ Party before
the Party
joined the May 1,
before May 1, 1937, were
1937, were
to be
to be kicked out of
kicked out of any
jobs of
of jobs importance. In
any importance. In May, 1937,
May, 1937,
the Nazi
the leadership‘had felt
Nazi leadershiphad enough in
secure enough
felt secure its position
in its at
position at ,._.,._., _

home to
home open its
to open to new
ranks to
its ranks People joining
members. People
new members. after
joining after ,a-
mi
5.
1.

that date
that opportunists, but
certainly opportunists,
were certainly
date were not as
perhaps not
but perhaps dan-
as dan- I

gerous as
gerous the die-hards
as the who had
die-hards who been in
had been the Nazi
in the all
Party all
Nazi Party 1
I

alohg.
along.
I

‘1
——~~

204 , IG FARBEN
IG FARBEN
A major point
A major point against
against kicking
kicking Nazis
Nazis out
out of
of all impertant
all important
jobs
jobs was
was that
that everything
everything Would break down.
would break down. The 'Nazlsh'all
The ‘Niiziéhaa
all
all the leaders, all
the leaders, all the
the brains.
brains. Thorough
Thorough denazification
denazification would
would
end in
end in chaos.
chaos. ._ ''
The Firiance
The Finance Division set out
Division set to disprove
out to disprove that that claim
claim by
by ac-
ac-
tual practise.
tual practise. Denazification
Denazification teams
teams headed
headed by by Nixon,
Nixon, Bruce
Bruce
Waybur, and
Waybur, and Isadore
Isadore Salkind
Sa’lkind traveled
traveled throughout
thronghout the the U.
U. S.
5.
Zone., Nazis
Zone._ thrown out
summarily thrown
were summarily
Nazis were of banks
out of and public
banks and public
finance offices.
finance offices. And,
And, strangely
strangely enough,
enough, the the banks
banks continued
continued toto .
operate. It
operate. It developed
developed that,
that, in
in spite
spite of of millions
millions of of killings,
killings,
the
the Nazis still did
Nazis still did not
not have
have aa monopoly
monopoly on on leadership.
leadership.
Unfortunately, the
Unfortunately, the Finance
Finance Division
Division was was thethe only
only operating
operating
unit of
unit of the
the U. U. S.
S. Group
Group Control
Control Council
Council which
which sent sent out
out inves-
inves-
tigators
tigators to to check
check up
up on the work
on the work ofof denazification.
denazification. For For the
the
most
most part, denazification was
part, denazification was left to the
left to discretion of
the discretion of local
local
military
military government detachments. In
government detachments. some cases
In some cases the
the local of-
local of-
flcers
flcers received hints from
received hints firemen from
visiting firemen
from visiting from headquar-
headquar-
ters
tel-S to
to go
go easy
easy on
on the
the Nazis.
Nazis. For
For example,
example, there
there was
was the
the case
case
Of
of Colonel
Colonel Joseph
Joseph Starnes.
Starnes. He
He had
had been
been aa member
member of
of the
the
U.
U_ S.
S, Congress
Congress and
and vice-chairman
vice-chairman ofof the
the Dies
Dies Committee.
Committee. After
After
his
his defeat
defeat in
in the
the 1944
1944- elections,
elections, he
he was
was given
given an
an army
army com-
com-
aplace in
mission and a_place the army
in the of occupation.
army of Starnes made
occupation. Starnes made
tour of
one tour
one Bavaria in which he
of Bavaria he happened visit aa series
to visit
happened to of
series of
towns just
towns just ahead
ahead of
of investigators
investigators from
from the
the Finance
Finance Division.
Division.
The investigators
The investigators found
found that
that in
in each
each town
town Starnes
Starnes had
had told
told the
the
local officers
local officers to
to forget
forget about
about denazification
denazification and
and to
to get
get things
things
Operating.' What
Operatingf What the
the Germans
Germans needed,
needed, hehe said,
said, was-
was. aa bal-
bal-
anccd budget.
anced budget. ''
The oflicers
The officers in
in the
the local
local military
military government
government detachments
detachments
faced heavy
facgd heavy responsibility
responsibility with
with little
little preparation.
preparation. ManyMany of
of
them had
them had been
been drawn
drawn from
from combat
combat outfits
outfits without
without any
any special
special
training for the duties of the occupation. While the enemy
was shooting at them they had been good soldiers. But they
were ill prepared to preside over the post-war misery of the
Germans’ . j . . .. .

2'“
.-
-it
-_I‘ . _ ,2‘, I
1 '1') .. I _ u
_
 . I
' \
I

ENDING?—GERMANY
ENDlNG?—GERMANY '' '' 205
205
The soldier
The soldier of
of the
the army
army of
of occupation
occupation soon
soon found
found himself
himself
more friendly
more friendly with
with hislate
hisllate enemy,
enemy, the
the German,
German, then
then he
he had
had
been with
been with his
his allies,
allies, for example, the
orexample, the French.
French. He
He was
was inclined
inclined
to feel
to feel that
that he
he had
had liberated
liberated the
the Frenchman and that
Frenchman and that he
he would
would
therefore be
therefore be forever
forever the
the creditor
creditor of
of France.
France. The
The German,
German, asas
an enemy,
an enemy, owed
owed him
him nothing.
nothing. He
He could
could apply
apply aa different,
different, and
and
much more
much more generous,
generous, standard
standard to
to the
the defeated
defeated enemy.
enemy. __
A new
A new ruling
ruling class
class suddenly
suddenly made
made an an appearance
appearance in in l

Germany. The
Germany. The group
group consisted
consisted of
of young
'young women,
women, pretty,
pretty, iwith
with \
l

at least
least passable
passable command
command of of English,
English, atat least
least passable
passable in in
\
at
office work-—and
office work-—and preferably
preferably without
without too
too blatant
blatant aa Nazi
Nazi past.
past.
The American
The American oflicers
officers who
who were
were in
in charge
charge of
of German
German towns
towns l
badly needed
badly needed secretaries,
secretaries, translators,
translators, and,
and, like
like nearly
nearly all all .||
soldiers, women
soldiers, women companions.
companions. Attractive English-speaking
Attractive English-speaking I

German girls
German girls met
met all
all requirements.
requirements. If If the
the American
American oflicer
oflicer 1

started off
started off without
without any
any deep-seated
deep-seated convictions
convictions about
about Germany
Germany I

and.the Germans,
and,the Germans, the the translator-secretary-companion
translator-secretary-companion could could -|
supply them."
supply them.‘ She
She could
could bebe counted
counted on
on to
to point
point out
ofit the
the “good”
“good” l

and the
and the “bad”
“bad” people
people in in town.
town. Shebecame
Shelbecame in in due
due course
course l
1
an adviser
an adviser and,
and, ultimately,
ultimately, made
made local
local policy.
policy. 31

As the
As the first
first summer
summer of of the
the occupation
occupation ofof Germany
Germany passed,
passed, J

1
it became
it became clearclear that
that the
the program
program of of denazification
denazification was was foun-
foun- v
dering. A
dering. A fair
fair job’
job’ was
was done
done inin the
the banks
banks and
and in
in local
local govern-
govern- n
ment. But
ment. But the
the whole
whole ofof industry,
industry, the
the particular
particular province
province ofof
the General
the General fromfrom Dillon,
Dillon, Reed—'—-William
Reedé—William Draper—was
Draper—was barelybarely
touched. Commerce,
touched. Commerce, the the railroads,
railroads, communications
communications gener-gener-
ally, literally
ally, literally reeked
reeked with
with the
the odor
odor of
of undiluted
undiluted Nazism.
Nazism. ll
ll

Failure of
Failure of denazification
denazification couldcould not
not readily
readily bebe ‘seen
seen inin of-
of- ,5
...
ficial reports
ficial reports and
and statistics.
statistics. Ambassador
Ambassador Murphy
Murphy had had reported
reported v

in August, 1945, that denazification was substantially com-

‘ plete. However, as upward of tcn ten million Americans found foulid
out through
out through personal
personal experiences,
experiences, Army
Army statistics
statistics can
'can some-
some-
times be
times be misleading.
misleading. .
stifl' punishments which are rarely
The Army abounds in stiff
any- rankshigher than sergeant. The theory of
visited upon any

1
\
I

.4
r__i_._.-wk ___ 1 fi_.__

206
206 16 FARBEN
1G FARBEN
punishment for
punishment for all
all ranks persists, nevertheless,
ranks persists, nexiertheless, and
and itit is
is
therefore expedient
therefore never to
expedient never failure or
admit aa failure
to admit omission. And
or omission. And
since it is
since it difficult for
peculiarly dillicult
is peculiarly Army to
the Army
for the its of-
punish its
to punish of-
ficers it is
ficers it also expedient
is also expedient not to look
not to too closely
look too or under
at or
closely at under
the
the cover-up. Probably no
cover-up. Probably enjoys the
agency enjoys
no agency admission of
the admission of
error. the Army
But the
error. But Army is able than
better able
is better other organiza-
any other
than any organiza-
tion
tion to
to stifle
stifle criticism
criticism within
within its
its own
own ranks
ranks and
and cover
cover its
its tracks.
tracks.
For these
For Army statistics
reasons Army
these reasons any debatable
on any
statistics on subject are
debatable subject are
likely to baffle
likely to the orthodox
baffle the statistician. The
orthodox statistician. figures which
The figures which
reported the
reported fiction of
the fiction denazification were
of denazification striking speci-
were aa striking speci-
. men.
men.
But anything connected
But anything with the
connected with was too
Nazis was
the Nazis hot aa sub-
too hot sub-
ject remain buried
to remain
ject to buried for As they
long. As
for long. traveled throughout
they traveled throughout
the S. Zone
U. S.
the U. Zone field of Colonel
investigators of
field investigators Bernstein’s Fi-
Colonel Bernstein’s Fi-
nance Division
nance were buttonholed
Division were by anti-Nazi
buttonholed by Germans and
anti-Nazi Germans and
sincere.
sincere. MG working against
ofliccrs working
MG oflicers odds who
great odds
against great. put the
who put the
finger
finger on
on case
case after
after glaring
glaring case
case of
of Nazis
Nazis in
in key
key positions.
positions.
The facts were
The facts were laid General Eisenhower
before General
laid before and Gen-
Eisenhower and Gen-
eral Clay.
eral Clay. At the same
about the
At about they were
time they
same time laid before
also laid
were also before
the world.
the world. A group of
A group newspapermen had
of newspapermen had gone to General
gone to General
Patton,
Patton, then command of
in command
then in the'Third Army
of the'Third which occupied
Army which occupied
all of Bavaria,
all of roughly sixty
or roughly
Bavaria, or per cent
sixty per of the
cent of S. Zone,
U. S.
the U. Zone,
to ask
to ask his views on
his views At first
denazification. At
on denazification. General Patton
first General Patton
was not
was not disposed see the
to see
disposed to Then he
press. Then
the press. persuaded to
was persuaded
he was to
grant aa four-minute
grant interview. Once
four-minute interview. he started
Once he speaking he
started speaking he
kept on
kept on going half an
for half
going for hour. And
an hour. he had
And he deal to
great deal
had aa great to
say. Yes,
say. it was
Yes, it quite true
was quite that aa clean
true that sweep of
clean sweep Nazis had
the Nazis
of the had
not been
not made. The
been made. business was
whole business
The whole much exaggerated,
was much exaggerated,
anYWay.
anyway. The
The General
General likened
likened the
the fight
fight between
between Nazis
Nazis and
and
anti-Nazis
anti-Nazis in Germany to
in Germany quarrel between
to aa quarrel Republicans and
between Republicans and
I
Democrats
Democrats at
at home.
home. .
The
The explosion
explosion which
which followed
followed brought
brought out
out in
in cruel
cruel high-
high-
light
light the
the failure
failure of
of denazification.
denazification. General
General Eisenhower
Eisenhower
stepped
stepped inin and
and removed
removed Patton
Patton from
from the
the command
command of of the
the
Third Army. Whatever General Eisenhower may have felt

3
. ,' ‘
v
la‘
4 id,

' I Ta“ "'

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'.'.'i‘ ‘Ty ‘i ‘
 1
t

ENDIN G?—'—GERMANY _.
ENDING?-"—GERMANiY 207
207
about personally—the two
it personally—the
about it went to
men went
two men football game
to aa football to-
game to-
few days
gether aa few
gether effect was
later—uthe effect
days later»--the This time
clear. This
was clear. the
time the
forces meant
American forces
American business. General
meant business. thundered to
Clay thundered
General Clay to
division directors:
his division
his must go
We must
directors: We with our
through with
go through denazi-
our denazi-
program if
fication program
fication we do
if we else!
nothing else!
do nothing \\ ''
new law
A new
A was enacted,
law was Clay’s personal
under Clay’s
enacted, under sponsorship,
personal sponsorship,
putting the burden
putting the kicking out
of kicking
burden of on
Nazis on
out Nazis the Germans. The
the Germans. The
known as
new law, known Law No.
Public Law
as Public went
8, went
No. 8, into Septem- . '
effect Septem-
into effect
ber
ber 26, 1945. As
26, 1945. go, this
laws go,
As laws one was
this one very simple.
was very was
It was
simple. It
at the
specifically at most gaping
the most holes in
gaping holes denazification:
in denazification:
\

aimed specifically
aimed |
\

commerce, and
industry, commerce,
industry, transportation. It
and transportation. It simply required
simply required
,

German employers,
that German
that penalty of
under penalty
employers, under fine or
of fine imprison-
or imprison-
remove all
ment; remove
ment, from any
Nazis from
all Nazis positions of
any positions responsibility
of responsibility
any kind
in any
in business or
of business
kind of or industrial concern.
industrial concern.
finally, was
Here, finally,
Here, looked like
what looked
was what sweep. Now
clean sweep.
the clean
like the Now
job would
the job
the have to
would have to be done, by
be done, by the themselves,
Germans themselves,
the Germans
American officials
and American
and only inspect
need only
officials need results to
the results
inspect the insure
to insure
compliance. lG
compliance. Farben and
IG Farben and the of German
rest of
the rest industry
German industry
would be
would be in hands.
safe hands.
in safe
And yet, once
And yet, the end
more the
once more fiasco. There
was aa fiasco.
end was three .
were three
There were
Law No.
of Law 8, any
No. 8, one of
any one which
of which
it

'weak spots in
weak spots handling of
the handling
in the
law
yr

would have been

would have enough to
been enough to sabotage denazification. The
sabotage denazification. The law t
\<
H

stated merely
had stated
had Nazis must
that Nazis
merely that removed from
be removed
must be positions
from positions
authority or
of authority
of responsibility. In
or responsibility. In so cases that
many cases
so many soon
it soon
that it
became the
became the rule, to be
matter to
rule, aa matter for granted
taken for
be taken American
by American
granted by
oificers Germans alike,
and Germans
oificers and were
Nazis were
ranking Nazis
alike, ranking merely
merely let
let
go their responsible
from their
go from jobs and
responsible jobs as
rehired as
and rehired janitors
janitors or
or
4

"repai 'f-‘fnen to
_i*ep‘air”-'i'n'en to doiéixactly the same
'doi‘érxa'otly the frequently with
work, frequently
'same work, their
with their
old"salarieSLi'Seeofidly; the
bid"ss1sties;"Ss¢oaa1y,- Germans quickly“
the Germans that
discovered that
quickly” discovered
subject to
thé‘jf“‘were*abt subject
they?-iie're’iiot any close
to any inspection; in
close inspection; in many cases
many cases
simply disregarded
they simply
they law without
the law
disregarded the bothering to
even bothering
without even go
to go
through the process
through the changing the
of changing
process of of their
titles of
the titles staff
Nazi staff
their Nazi »:H
members. Thirdly, the
members. Thirdly, boards set
German boards
the German to hear
up to
set up appeals
hear appeals .
i

rarely staffed
were rarely
were anti-Nazis. All
with anti-Nazis.
staffed with too many
All too Nazis
many Nazis
t
themselves £1a Clean
got themselves
got of health
bill of
clean bill boards.
the boards.
from the
health from i'
I
 208
2os '” h "1 IG FARBEN
By the
By the end
end of
of 1945 Law No.
194-5 Law 8 was
No. 8 also marked
was also marked as
as aa failure.
failure.
A team
A team of
of inspectors
inspectors representing
representing the
the Public
Public Safety
Safety Division
Division
of the
of the Oflice
Office of
of Military
Military Government
Government reported
reported in
in January,
January,
1946, that
194-6, that violation
violation of
of Law
Law No.
No. 8
8 was
was so
so widespread
widespread as
as to
to
have
have become
become normal.
normal. The
The report
report was
was so
so damning
damning that,
that, aecordr
accord-
ing
ing to
to testimony
testimony presented
presented to
to the
the Kilgore
Kilgore Committee
Committee byby Rus-
Rus-
sell
sell Nixon,
Nixon, it
it was
was ordered
ordered suppressed
suppressed by by Brigadier
Brigadier General
General
Meade,
Meade, Director
Director of
of Internal
Internal Affaffirs
Affaffirs in
in the
the U.
U. S.
S. Zone
Zone and
and
chairman
chairman ofof the
the Denazification
Denazification Policy
Policy Board.
Board.
As a final admission of defeat, the American authorities
now
now dumped
dumped the
the whole
whole problem
problem back
back in
in the
the laps
laps of
of the
the Ger-
Ger-
mans.
mans. TheThe Army
Army of of Occupation
Occupation was
was dwindling.
dwindling. At At full
full
strength
strength the
the Army
Army had
had not
not had
had the
the will
will and
and elear-cut
clear-cut deter-
deter-
mination
mination to
to drive
drive the
the Nazis
Nazis out
out of
of all
all positions
positions of
of influence.
influence.
Now
Now the
the Germans
Germans were
were told
told to
to draft
draft their
their own
own denazification
denazification
law,
law, to
to be
be enforced
enforced by
by themselves.
themselves.
On
On March
March 5,
5, 1946,
1946, the
the heads
heads of
of the
the three
three States,
States, orLaender,
orLaender,
in
in the
the U.
U. S.
S. Zone
Zone signed
signed aa German
German denazification
denazification law
law which
which
took
took the
the place
place of
of all
all preceding
preceding American
American laws
laws and
and directives.
directives.
We
We had
had failed
failed toto drive
drive out
out the
the Nazis
Nazis ourselves.
ourselves. Now,
Now, with
with
many
many Nazis
Nazis still
still clinging
clinging to
to positions
positions of
of importance,
importance, wewe gave
gave
the
the Germans
Germans free free rein.
rein. Hitler
Hitler had
had had
had twelve
twelve years
years in
in which
which
to
to kill
kill off
off all
all fighting
fighting opposition.
opposition. The
The efficiency
efliciency of
of the
the Nazi
Nazi
‘ State
State was
was at
at its
its highest
highest point
point in
in the
the scientific
scientific application
application of
of
police
police repression.
repression. Of Of the
the large
large body
body of of men
men andand women
women who who
understood fascism and
understood fascism courage to
the courage
had the
and had fight against
to fight it
against it
in 1933
in 1933 only
only aa pitiful
pitiful handful
handful survived.
survived. After
After only
only ten
ten
months of
months of military
military government
government the the anti-fascist.
anti-fascist. remnant
remnant waswas
hardly in
hardly in aa position
position to
to hold
hold its
its own
own against
against the
the rstill-vigorous
’still-vigorous
fascism.
German fascism.
German P’
1 Men in
Men in the
the German
German State
State governments
governments who who co-operated
co-operated
with the
with the U.
U. S.S. forces
forces now
now walk
walk literally
literally in
in the
the shadow
shadow of of
death. lust
death. Just as
as after
after World
World WarWar II ultra-nationalistic
ultra-nationalistic gangs
gangs
hare
are organizing with “death to collaborators” as a main slogan.
In this
In this sense,
sense, aa German
German anti-fascist,
anti-fascist, working
working with
with the
the Amer-
Amer-
/. \

>
 I If

ENDING?—GERMANY
EN DING?-—GERMANY ‘‘ .- 209
209
icans to root out the Nazis, is bound to be he a collaborator. We
are leaving
are leaving such
such men
men less
less and
and less
less able
able to
to defend
defend themselves.
themselves.
The failure
The failure of denazificetion in
of denazification in the
the U.
U. S.
S. Zone
Zone isis aa major
major .
retreat from
retreat from the
the program
program agreed
agreed toto at
at Potsdam.
Potsdam. It It is
is worth
worth -
probing for the reasons behind the failure. In part, the
explanation lies
explanatibn lies with
with the
the men
men on
on the
the ground
ground levels of the
levels of the oc-
oc-
cupation
cupation who
who became
became friendly
friendly with
with the defeated enemy.
the defeated enemy. But But
this
this explanation
explanation does
does not carry very
not carry very far.
far. Soldiers
Soldiers are
are still
still
subject to
subject to orders.
orders. Some____9f_v_th_e-Lgflicers..were-._b_itterly_,,and
So1ne mof 1hegificers ”werebitterlyand,
openly
openly opposed
opposed to to the
the antiNam
anti_-Nazi programcontained in JCS
program _cp1|i‘taine_dA_in...lCS
1067.. Therewere Ineh like Lieutenant _,Colo__nel
1U67.'.' T_herewere’me'n'1ik§__Lieutenant ColonelGeorge
w!WF"'*’1‘m w" ”W“
George Auf-
A_uf-
finger, deputy
fingei, deputy Military
Military Governor
Governor ofofWuerttemheigBaden,’
Wuerttemberg-Baden,
who bluntly stated
“-I-he bluntly stated that
that if
if field
field investigators
investigators had
had not
not come
come to to
his office
his office he would not
he would not have
have had
had to
to comply
comply with
with the
the denazi-
denazi-
fication directives.
fication directives. “But
'But again,
again, this
this is
is not
not enough
enough toto explain
explain l

what amounted
what amounted to
to aa total
total reversal
reversal of
of aa clear
clear policy.
policy.
The true
true explanation
explanation lies
lies in
in the
the troubled
troubled field
field of
of relations
relations
I
The
with the
with the Soviet
Soviet Union.
Union. There
There was
was never
never any
any doubt
doubt in
in any-
any- 'I

one’s mind, least of all in the minds of the Germans, that in

the Russian Zone of Occupation the important impertant Nazis were
going to be run"run' out of business. From the beginning there
4.
‘I

olficials who feared that if we fol- ,

were ranking American officials
lowed suit,
lowed suit, in
in line
line with
with JCS
JCS 1067
1067 and
and Potsdam,
Potsdam, wewe would
would |

help
help create
create aa new
new Germany
Germany more
more in in line
line with
with Russian
Russian pol-
pol-
icies than our own. At least the western half of Germany
must
must bebe aa buffer
buffer against
against Soviet
Soviet influence.
influence. This
This has
has been
been the
the '._ -|_.%n_-._1._ _:;

main
main point
point not’only
not'only ofof the
the slacking
slacking upup ofof denazification
denazification 1a
but
but also
also ofof the
the counter
counter program
program of of getting
getting things
things back
back into I
into I

operation
operation as
as quickly
quickly as
as possible.
possible. » j.‘
tr
1

Particularly enlightening
enlightening 1n
in this connection is the case of I
I

Richard
Richard Freudenherg.
Freudenberg. Freudenberg
Freudenberg hadhad been
been both
both aa top-
top- \ l

-1
rank
rank German
German industrial
industrial leader
leader and
and aa member
member of of the
the Nazi
Nazi 1

Party.
Party. His
His position
position put
put him
him far
far above
above the
the ordinary
ordinary pressure
pressure
of
of the
the Party.
Party. He
He did
did nothave
nothave toto join
join but
but did,
did, and
and took
took an
an Q

active
active part
part in
in Nazi
Nazi leadership
leadership of
of economic
economic affairs
affairs.“ He
He was
was
 *

21
21 O
0 [G FARBEN
IG FARBEN
‘,4’
manufacturer, the
leading manufacturer,
a leading
a boss of
the boss company town,
of aa company and
town, and
held numerous
held directorships. Among
business directorships.
numerous business Among other things
other things
he was
he director of
was aa director one of
of one of the biggest private
two biggest
the two in
banks in
private banks
Germany and
Germany and was into jail
thrown into
was thrown interrogation in
for interrogation
jail for con-
in con-
with his
nection with
nection share in
his share in the looting of
scale looting
large scale
the large foreign
of foreign
handled by
countries handled
countries by the big banks
the big for the
banks for the Nazi State.
Nazi State.
all the
By all
By laws and
the laws directives of
and directives of military government
military government
should have
Freudenberg should
Freudenberg removed from
been removed
have been from his industrial
his industrial
jobs. He
jobs. was clearly
He was one of
clearly one of the group who,
top group
the top from
aside from
who, aside
obvious handline
the obvious
' the figures like
handline figures Goering and
like Goering Himmler,
and Himmler,
most responsible
were most
were for the
responsible for crimes of
the crimes Germany.
of Germany.
local MG
The local
The detachment in
MG detachment Freudenberg’s area
in Freudenberg’s appealed
area appealed
permission to
for permission
for exempt him
to exempt the denazification
from the
him from orders.
denazification orders.
reached the
case reached
The case
The the top Board in
Appeals Board
Denazification Appeals
top Denazification in A
where, in
Frankfurt where,
Frankfurt spite'of Freudenberg’s
in spiteiof record, he
Freudenberg’s record, was
he was
exemption by
grafited exemption
granted vote of
by aa vote four to
of four one.
to one.
statement of
The statement
The representative of
the representative
of the of Ambassador Robert
Ambassador Robert
Murphy’s staff
Murpl1y’s staff was most revealing.
was most Murphy’s man
revealing. Murphy’s said:
man said:
“What we
“What we are doing here
are doing denazification is
through denazification
here through nothing
is nothing
than aa social
less than
less revolution. If
social revolution. If the want to
Russians want
the Russians bolshe-
to bolshe-
vize their
vize side of
their side the Elbe
of the that is
Elbe that their business,
is their but it
business, but not
is not
it is
eonformity with
in conformity
in standards to
American standards
with American away the
cut away
to out the
basis of
' '; - basis 2
property.”
private property.”
of private
Appeals Board
The Appeals
The member from
Board member the Industry
from the Branch
Industry Branch
with the
sided with
sided representative of
the representative Political Adviser,
the Political
of the saying:
Adviser, saying:
“This man [Freudenberg] is
man [Freudenberg] is an extremely capable
an extremely industrial-
capable industrial-
1““lfi-

“This
_nn\'...\w‘

ist, aa kind
ist, of Henry
kind of
‘¢w-ug-\- -'. .\. ;. , ,
t
F0rd.”
Henry Ford.”
in the
made in Summer of
the Summer before
1945, before
of 1945,
1

These statements
These were made
statements were
tough with
“Get tough
“Get Russia” had
with Russia” become an
had become an accepted policy.
accepted policy.
action of
The action
The Ambassador Murphy’s
of Ambassador in the
office in
Murphy’s office Freud.
the Freud-
enberg case was typical; and it opened the
it opened way to
the way to a reprieve
a reprieve
the leaders
for the
for Farben and
of’IG Farben
leaders of'IG clique of
the clique
and the Rhineland
of Rhineland
industrialists who
industrialists who put Hitler in
put Hitler power. As
in power. As General Eisen-
General Eisen-
political adviser
hower’s political
h0wer’s Murphy was
adviser Murphy fully responsible
was fully for
responsible for
political tone
the political
the tone of the new
of the Germany the
new Germany the American forces
American forces
/
 I

ENDIN G?—GERMANY
ENDING‘.-’—-GERMANY _ 21 II
21
were rebuilding and
were rebuilding therefore for
and therefore out the
carrying out
for carrying denazi-
the denazi-
directives. Yet
fication directives.
fication Murphy and
Yet Murphy and his took no
men took
his men in
part in
no part
checking up
the checking
the denazification in
on denazification
up on field, they
the field,
in the continu-
they continu-
exaggerated the
ally exaggerated
ally amount of
the amount denazification already
of denazification accom-
already accom-
and in
plished, and
plished, policy fights
all policy
in all handling of
the handling
over the
fights over the
of the
they consistently
Nazis they
Nazis up on
lined up
consistently lined side of
the side
on the treat-
easier treat-
of easier
ment.

The story
The denazification in
of denazification
story of other three
the other
in the zones
three zones of
of
German
Germany the picture
completes the
y completes sharp split
of aa sharp
picture of between
split between the
the
Russians and
Russians and the Powers.
Western Powers.
the Western
taken for
was taken
It was
It grantedflparticularly by
for granted———particularly by the Cermans—m
the Germans—-
that it
that would go
it would hard with
go hard Nazis in
with Nazis in thethe Russian Zone. There
Russian Zone. There -
evidence to
no evidence
is no
is counter this
to counter impression. In
this impression. truth, the
In truth, Rus-
the Rus-
sians’ job of
sians’ job Wiping out
of wiping out Nazi influence was
Nazi influence than it
easier than
was easier was
it was Jv
L

Nazis who
leading Nazis who _
v

in parts of
Western parts
the western
in the Germany: all
of Germany: all the the leading 1
A

Germany aheadahead of the

of the
1

could manage it
could manage pulled out
it pulled out of eastern Germany
of eastern I
\

Red Army
Red Army and trusted to
and trusted to their luck‘with the
their luckwith British and
the British and
American armies.
American armies. _“_‘
general, the
In general,
In concentrated first
Russians concentrated
the Russians first onon the leading
the leading
fascists. For
fascists. For the smaller fry
the smaller fry the policy was
the policy was more flexible.
more flexible.
They were
They subject to
were subject inspection; any
close inspection;
to close out of
rhove out
any move line
of line
punished. To
severely punished.
was severely
was destroy the
To destroy seats of
main seats
the main reac-
of reac-
power an
tionary power
tionary ambitious program
an ambitious program of breaking up
of breaking Junker
up Junker
estates was
estates started. In
was started. the same
In the there was
although there
way, although
same way, was
no general
no program of
general program nationalization of
of nationalization industries, con-
of industries, con- z.-._,_.;_i . _

cerns which
cerns which had had been dominated by
completely dominated
been completely influ-
Nazi influ-
by Nazi '\
i

ences were
ences over by
taken over
were taken State.
the State.
by the -' I

The Zone, by
French Zone,
The French contrast, did
by contrast, did not come up
not come up to expec- '
to expec- i

tations. It
tations. It had assumed that
been assumed
had been the French
that the treatment of
French treatment of ‘I
i

Nazis and
the Nazis
the would be
militarists would
and militarists particularly harsh.
be particularly harsh. There There
was the
was the century-old feeling; there
national feeling;
century-old national been four
had been
there had four
years of
half years
and aa half
and occupation of
Nazi occupation
of Nazi France; and
of France; finally,
and finally,
there was
there was no doubt that
no ‘doubt new French
the new
that the would ‘be
government would
French government be
strongly ‘ anti-fascist.
stronglyanti-fascist. _ ' i
-pcz»--I--—
t
. u; ‘5 :
t

212 c’
212 y. 11 ‘ IG FARBEN
|o
But when the
But when the war
war ended
ended in
in Europe,
Europe, there
there was
was no
no French
French
government. France
government. France was
was represented
represented in Germany by De
Gaule-ist and
Gaule-ist and career
career officers
officers of
of the
the Army,
Army, by
by old-line
old-line officials
officials
of the
of the former
former Foreign Office
Oflice staff, and by outright Vichyites.
'Throughout the firstIyear
Throughout the firstlyear of0f the
the occupation, while France
struggled through
struggled through the
the phases
phases of
of aa Constituent
Constituent Assembly,
Assembly, these
these
oflicials remained
officials remained as
as representatives
representatives in
in Germany.
Germany. The posi-
tion they
tion they took
took was a pale reflection of what was going on in
the British
the British and
and American
American Zones.
Zones. IfIf anything,
anything, the
the French‘
French‘
denazification program
denazification program was
was weaker
weaker than that in the U. S. Zone.
There
There was
was aa small
small migration
migration of
of suspect war criminals across
suspect war
the
the boundary
boundary line
line from
from the
the American
American into the French
into the French Zone.
Zone. a
1946,A1fred
In March, 1946, Alfred Biscarlet, one of a commission which I
inspected the
inspected the French
French Zone
Zone of
of Occupation
Occupation for
for the Constituent
the Constituent
Assembly, issued
Assembly, issued aa report
report which
which indicated
indicated that
that there
there had
had
been almost
been almost no
110 removal
removal of
of Nazi
Nazi influences;
influences." Quite the con-
Quite the con-
trary, French officials
officials had
ha_d removed anti-Nazis from posts of
responsibility.
responsibility.
Whatever
Whatever the failures of denazification in the American
7ones, the main center
and French Zones, "center of unreconstructed Nazism
. remains
remains the the British
British Zone
Zone. TheThe British started the
British started the occupation
occupation
' -on the principle
on the that themain
piinciple thatithe main job was to
job was things moving
get things
to get moving
again. The
again. The great
great victory
victory pf of the
the LabourxParty1
Labour_Party inn the the summer
summer
' of 1945 made
of 1945 not the
made not the slightest difference in
visible difference
slightest visible in this policy.
this policy.
In an
In an zlbandoned
abandoned munitions
munitions plantplant near Kassel the American
Army establiishizdilwti/irh'éi’f'
Army washeallédt1i"é”Miiiisteiial”Collecting
establishedwhat 'i/vasiiieiiillédditliblMifiisIe”iiial'”'Collecting
Center. Here
Center. Here were brought high-ranking
were brought officials of
high--ranking officials all the
of all the
main departments
main departments of of thethe Nazi
Nazi State,
State, for
for the most part
the most part men
men
’ whowho byby their
their records
records werewere subject
subject toto automatic
automatic arrest.
arrest. These
These
top level
top level Nazi
Nazi leaders
leaders and and bureaucrat
bureaucratss were given the the job
job
of
of putting
putting in in order
order the the records
records of departments
of their departments against
the
the day
day when
when aa central administration for Germany would
centraladministration would bebe
created.
created. They were paidfor_their_w_o_rk, frequentlyat
Th_ey_w_e£e_p_§}i§_l___,f0r..lhei1;_ygorkL_frgqu_ently
-—.- arr.“
at higher mu..—.........u

rates than
rates
_..-—-+
other Military Governmentdivisions @0u1d"'15ti“§?5“Hiii"“
than ot_l_1?o_r?l!Iilita_ryLGove__rpmg_tit__£l_i_visions could pay anti-
"- rm‘m rum

Nazi consult
”“‘“‘--q-~—~_.

/‘
Nazi ants.They
consultants. They ate U.S.A r1ny rationsTiTh"eHy~'aTfi§i1'ded“
U. S. Army rations.They attenHed
...._.-.-.
’ _-—-— H... ‘ . "' amm-
-um ---»--vr-""‘
._.........—......u.m
- ,-..-,-....--.--.-”-.--
1mm, . 1

‘
—\ J.

ENDING?—GERMANY -.
ENDING?—-GERMANY 213
213
American movies
American movies atat night.
night. Some
Some of
of them even had
them even had their
their fam-
fam-
ilies with
ilies with them.
them. TheThe Ministerial
Ministerial Collecting
Collecting Center
Center therefore
therefore
was
was aa highly
highly attractive
attractive place for Nazi
place for Nazi government
government leaders
leaders
tiding over
tiding over bad
bad times.
times. Even
Even soso the
the population
population of
of the Col-
the Col-
lecting
lecting Center
Center steadily
steadily dwindled;
dwindled; in in almost
almost all
all cases
cases the
the
reason given_was that
reason given_was that they
they were
were being
being taken.away
takenaway to to the
the
British Zone for
British Zone for important
important advisory jobs.
advisory jobs.
The
The traffic
traffic in
in German reactionaries was
German reactionaries was mainly
mainly in
in one
one di-
di-
rectiOn. A key figure
rection. Agkey figurein 1n the
the loot
loot of
of occupied
occupied countries
countries byby
the
the big. Germaribankswas one
big German’.-bianklsmwas one Hermann
Hermann Abs.
Abs. Abs
Abs was
was wanted
wanted I

badlyin 1n the
the American
American Zone
Zone1n connection with
with an
an investiga-
investiga-
1
badly in connection
tion
tibn of German banking
of German banking inachinations.
inachinations. But
But months
months of
of nego-
nego-
tiation for Abs’s
tiation for Abs’s transfer
transfer to
to American
American hands
hands got
got nowhere:
nowhere:
wAhswasbeingfimployed
;1_bsa_was,_b,eing,employ_ed as an essential financial adviser by
wwu ,.-

British.
the "British.
MWOi'iiisWSchmidt of
MWOi"visTScI1midt of the
the U.
U. S.
5. Treasury
Treasury testified
testified before
before thethe 1

Kilgore Committee
Kilgore Committee concerning
concerning some some of of the
the men
men whom
whom the the I
British had
British had picked
picked out out for
for top
top jobs.
jobs. For For example,
example, therethere was
was
Assemblyman
Assemblyman Pferdmenges
Pferdmenges Of of the
the British-appointed
British-appointed RhenishRhenish
Provincial Assembly.
Assembly. Pferdmenges
Pferdmenges was was an an active
active Nazi,
Naii, aa
I
t
Provincial
director of
director of Ia
"a Cologne
Cologne bank,
bank, aa leader
leader of the big
of the big electric
electric trust,
trust,
the AEG,
the AEG, oneone ofof the
the heads
heads ofof Vereinigte
Vereinigte Stahlwerke.
Stahlwerke. He He was
was
one of
one of the
the lucky
lucky onesones who
who got
got out
out ofof Berlin
Berlin inin time
time and
and started
started
operation
operation in in the
the British
British Zone.
Zone. There
There was was the
the case
case ofof Abra-
Abra-
hamFroweln.
ham r_o_w_ein.Frowem‘ Frowein was was aa director
director of of the synthetic silk
the synthetic silk
ti‘ust;fol1owing
tffist; following the the anti-Jewisli
anti-Jewish ordinances
ordinances of of 1938
1938 he he took
took | '
over theidépartment
over the department stores stores of the Tietz
of the Tietz concern.
concern_._ During
During thethe
war
war F rowem had
Frowein had been
been aa confidential
confidential adviser
adviser to to the
the Minister
Minister I

of
of Munitions
Munitions and and Armaments.
Armaments. Frowein Frowein also also prospered
prospered at at
. British hands. He
British hands. He was appointed to
was appointed to the
tlie‘ British-created
British-created Eco- Eco- I
1

nomic Advisory
nomic Advisory Board Board as as aa inemher
member of of the “Committee of
the“fCommittee of
Three.” ,After
Three.” After more more than
than aa year
year of of the
the occupation
occupation the the Brit-
Brit-
ish reorganized
ish reorganized the the economic
economic council
council and and Frowein
Frowein resigned.
resigned.
Generally speaking,
Generally speaking, the_British
thelBritish have have filled
filled thethe key
key jobs
jobs
with reactionary
with reactionary nationalists
nationalists who,
who, though
though perhaps
perhaps not not Nazis
Nazis
v
r

IJ
214
214 IG FARBEN
[G FARBEN
were part
themselves, were
themselves, the group
of the
part of paved the
which paved
group which for
way for
the way
Hitler in the
Hitler in 1930’s. A
early 1930’s.
the early like Alfred
man like
A man Hugenberg,
Alfred Hugenberg,
who was
who the German
of the
leader of
was aa leader German National Party and
National Party played
and played
an important
an in the
part in
important part maneuvers in
the maneuvers 1932 which
in 1932 brought
which brought
Hitler to
Hitler lives safely
power, lives
to power, British Zone
the British
in the
safely in Zone and issues
and issues
statements on
statements policy. Less
on policy. than Hugenberg,
known than
well known
Less well but
Hugenberg, but
of exactly
of same political
the same
exactly the was a
stripe, was
political stripe, L'ehr, picked
Dr. L'ehr,
a Dr. picked
by the British
by the be the
to be
British to president of
first president
the first Rhineland Zone.
the Rhineland
of the Zone.

The direct
The direct attack
attack on
on IG
IG Farben
Farben failed.
failed. The
The main
main plants-—
plants—~—-
foundation stones
foundation the old
of the
stones of like Leverkusen,
IG like
01d IG Hoechst, and
Leverkusen, Hoechst, and
Ludwigshafen—still
Ludwigshafen—still produce
produce onon aa large
large scale.
scale. And
And the
the in-
in-
direct
direct attack
attack through
through denazification
denazification failed
failed asas well.
well.
Denazification
Denazification waswas essentially
essentially aa fight
fight for
for key
key points
points of
of con-
con-
trol.
trol. The
The Germans
Germans whowho were
were left
left in
in the
the important
important posts
posts in
in
government
government and and business
business would
would determine
determine the the whole
whole mood
mood
and
and direction
direction ofof the
the country.
country. From
From the the record
record it
it must
must bebe .
said: the first
said: the denazification in
of denazification
year of
first year Germany was
western Germany
in western was i
aa failure.
failure. The
The German
German political
political climate
climate waswas still
still healthy
healthy
‘for
for the growth of
the growth monopolies like
aggressive monopolies
of aggressive like IGIG Farhen.
Farben.

'r

. ‘

‘it'll J
_ .,..-....«.... i Aru-r

>_._- »A<.¢- dar-

.13
I 13
To Make
To Make Amends
Amends

In
In the last analysis
the last future of
the future
analysis the Farhen hinges
IG Farben
of IG the
on the
hinges on
repara tions program
reparations to by
agreed to
program agreed Big Three
the Big
by the Potsdam.
at Potsdam.
Three at
literally, the
Applied literally,
Applied terms of
the terms Agreement would
Potsdam Agreement
the Potsdam
of the would
Germany an
leave Germany
still leave
still an industrial nation, but
industrial nation, reparations ‘
but reparations
would drain
would drain off all the
Off all productive capacity
excess productive
the excess necessary
capacity necessary
make war.
to make
to war. IG could no
1G could no longer hope to
longer hope dominate the
to dominate world
the world
it once
as it
as Germany and
dominated Germany
once dominated Europe. The
of Europe.
Inost of
and niost The
springs of
springs aggression would
of aggression dry.
run dry.
would run
In the
In the last too, the
analysis, too,
last analysis, program is
reparations program
the reparations one
is one
ansWers to
the answers
of the
of the pay-off
to the there be
will there
question: will
pay-off question: agree-_
be agree-_
with the
ment with
ment Just as
Union? Just
Soviet Union?
the Soviet Germany was
as Germany was the main
the main
which the
against which
target against
target the Allies attacks dur-
their attacks
co-ordinated their
Allies co-ordinated dur-
war, so
the war,
ing the remains the
Germany remains
now Germany
so now cross-roads of
the cross-roads for-
of for-
policy at
eign policy
eign agreement must
which agreement
at which must be found or
be found peace
the peace
or the
And the
lost. And
lost. question of
the question Germany remains
from Germany
reparations from
of reparations remains
one of the single
of the biggest points
single biggest issue.
at issue.
points at --
Agreement may
Potsdam Agreement
The Potsdam
The may have spots, and
weak spots,
have weak and in in aa
places it
few places
few contradictory. But
slightly contradictory.
is slightly
it is is not
there is
But there the
not the
doubt about
least doubt
least kind of
the kind
about the program which
of program emerges from
which emerges from
215
215 I .
 216
216 7’ IG FARBEN

the document. It
the document. It is
is aa program
program which
which would wipe out IG
F-arben and
F-arben and the whole of
the whole Germany’s war-making
of Germany’s potential.
war—making potential.
It would
It would force
force Germany
Germany to to make
make good
good a little of the damage
done in
done in World
World WarWar II.II. And
And itit would
would prepare the way for
the birth
the birth of
of aa democratic
democratic Germany
Germany by wiping out the deeply-
rooted influences
rooted influences of Nazis and
the Nazis
of the militarists. I,',
and militarists.
Of all
Of the sections
all the ’of the
sections ’of Agreement that
Potsdam Agreement
the Potsdam devoted
that devoted
toureparations is
to,reparations one of
is one clearest. It
the clearest.
of the recognized the
It recognized fact
the fact
that Russia
that Russia and Poland had
and Poland been by
had been far the
by far damaged
most damaged
the most
countries in the war. war, Therefore all material taken from
eastern Germany
eastern Germany as would go
reparations would
as reparations go to the Soviet
to the Union
Soviet Union
and Poland.
and Poland. In they would
addition, they
In addition, get about
would get twenty-five
about twenty-five
per cent
per of the
cent of taken as
material taken
the material from the
reparations from
as reparations western
the western
half of
half Germany.
of Germany. ''
In the
In approach to
the approach reparations at
to reparations Potsdam, an
at Potsdam, effort
honest effort
an honest
was made
was made to avoid the
to avoid mistakes which
the mistakes World War
followed World
which followed I.
War I.
Then Germany was forced to pay the cost of the war out
of production.
of The cost
production. The placed so
was placed
cost was high that
so high pro-
German pro-
that German
duction had
duction to be
had to with Allied
revived with
be revived help; if
Allied help; bill had
the bill
if the had
ever been
ever been paid, products of
paid, products of the Nations would
Allied Nations
the Allied have
would have
been driven
-been world markets
from world
driven from markets to make way
to make way for German
for German
goods. This
goods. time it
This time it was that the
agreed that
was agreed Germans would
the Germans pay,
would pay,
not by
not production of
the production
by the goods, but
of goods, by the
but by transfer of
the transfer equip-
of equip-
ment, including whole plants. Thus, at one blow, the German
potential would
war-making potential
war-making cut down
be cut
would be and damage
down and done
damage done
to Allied
to Allied countries be restored.
Would be
countries would rostered. The backbone of
The backbone the
of the
German war machine, heavy industry, would would. be reduced to
bare, essentials, but Europe as a whole would be no poorer:
bare
use of
use of Germany’s
Germany’s machines
machines would
would simply
simply pass
pass into
into more
more
deserving hands.
deserving hands. TheThe magic
magic of IG synthetics would become
the property
the property of
of the
the nations
nations which won the war against German
fascism.
- fascism.
Naturally, there were vague points in the reparations
Naturally,
agreement. But
agreement. But the
the agreement was as definite as anything
anything in
in
words can
words can be
be onon the amount of time to be used in ending

~I
 ‘hL'-}"' -

I TO MAKE
TO MAKE AMENDS
AMENDS ' 217
217
the
the vagueness.
vagueness. The
The whole
whole program
program was
was to
to be
be settled
settled by
by Feb-
Feb-
ruary
ruary 2,
2, 1946,
1946, at
at the
the latest.
latest. Furthermore,
Furthermore, advance
advance deliveries
deliveries
were
were to
to begin
begin well
well before
before the
the February
Fcbruary deadline.
deadline. The
The force
force
of
of this
this decision
decision was
was backed
backed up
up by
by the
the signatures
signatures of
of the
the Chiefs
Chiefs I

of
of State:
State: for
for the
the United
United States
States and
and Great
Great Britain,
Britain, President
President
Truman
Truman and
and Prime
Prime Minister
Minister Attlee.
Attlee. p '
The
The Potsdam
Potsdam Agreement
Agreement waswas signed
signed early
early 1nin August.
August. Later
Later I

in
in August
August the
the Russians
Russians put
put in
in aa request
request for
for forty-one
forty-one plants
plants
in
in advance
advance delivery.
delivery. But'when
Butwhen the the Foreign Ministers of
Foreign Ministers of the
the
Big Three
Big Three met
met in
in Moscow
Moscow in in September
September nothing
nothing had
had been
been I

moved. The
moved. The Soviet
Soviet Union
Union pointed
pointed toto the
the advance
advance delivery
delivery I

clause and
clause and asked
asked for
for an
an immediate
immediate beginning
beginning of of reparations.
reparations.
_....._..

In October
In October the
the Economics
Economics Directorate
Directorate of of the
the Allied
Allied Control
Control
WWW. -——-.~_.

Council agreed
Council agreed that
that thirty
thirty plants
plants should
should be
be shipped
shipped at at once:
once:
thirteen from
thirteen from the
the British
British Zone,
Zone, ‘fifteen
‘fifteen from
from the
the U.
U. S.
S. Zone,
Zone,
and two
and two from
from the
the French.
French.
The Foreign
The Foreign Ministers
Ministers met
met again
again in
in December,
December, inin London.
London.
__._..

Again nothing
nothing had
had been
been moved.
moved. Again
Again the
the Russians
Russians asked
aSked
- -.7:,- ._-._ _,
Again
' for
for an
an immediate
immediate start.
start. Again
Again there
there was
was agreement.
agreement. And
And
again
again nothing
nothing happened.
happened.
The
The February
February 2,
2, 1946,
1946, deadline
deadline came
came and
and passed.
passed. Still
Still
there
there had'been
had ‘been n0
no advance
advance deliveries
deliveries and
and there
there was
was not
not even
even
aa settlement
settlement on
on how much and
how much and what
what was
was to
to be
be moved.
moved. Late
Late
in
in February
February the
the Soviet
Soviet Union
Union sent
sent aa sharp
sharp protest
protest to
to the
the
American
American government,
government, pointing
pointing to
to the
the failure of the
failure of the repara-
repara-
tions program
tions program and
and indicating
indicating the
the importance
importance with
With which
which it
it
was regarded.
was regarded.
Finally, in March and April, 1946, deliveries were started.
By the
By the end
end of
of April
April equipment
equipment from
from plant
plant No.
No. 33 of
of the
the
Bremen Daschimag
Bremen Daschimag was
was put
put on
on board
board ship for movement
ship for to
movement to
the USSR.
the USSR. Equipment from
Equipment from three
three other
other plants,
plants, including
including
the power unit from the IG Farben-operated Gendorf works,
had been
had been shipped
shipped by
by rail
rail to
to the
the Bremen
Bremen port.
port. But
But all
all this
this was
was
from
from the
the U.
U. S.
S. Zone.
Zone. As
As of
of April
April 3,
3, nothing
nothing had
had been
been moved'
moved .
from
from the
the British
British or
or French
French Zones:
Zones. .

X .
'_..-.—-—-

2 I 88
21 IS FARBEN
IG FARBEN

After this
After this small
small beginning,
beginning, with
with the
the Potsdam
Potsdam schedule
schedule
already twice
already twice broken,
broken, General
General Clay
Clay announced
announced onon May
May 26th
26th
that all
that all deliveries
deliveries on
on reparations
reparations were
were being
being stopped.
stopped. The
The
effect of
effect of the
the announcement
announcement would
would have
have been
been stronger
stronger if
if ship-
ship‘
ments had ever
ments had ever been
been fairly
fairly started.
started.
The reason
The reason given
given for
for stopping
stopping reparations
reparations deliveries
deliveries was
was
that old
that old bugaboo
bugaboo of
of occupation
océupation policy,
policy, the
the failure
failure to
to centralize
centralize
Germany.
Germany. Back
Back in
in the
the Fall of 1945
allof 1945 it
it had
had been
been convenient
convenient
“to
to blame all shortcomings
blame all shortcomings of the occupation
of the occupation on
on decentraliza-
decentraliza-
tion, and
tion, and toto blame
blame thethe French
French for for decentralization.
decentralization. The The truth
truth
was that
was that the
the French
French had had onlyonly asked
asked that that settlement
settlement of of the
the
questions of
questions of control
control of of thethe Ruhr
Ruhr andand the the Rhineland
Rhineland be be
made before
made before centralization.
centralization. They They argued
argued that that if if Germany
Germany
were first
were first put
put under
under aa central
central administration
administration it it would
would preju-
preju-
dice the
dice the chances
chances of of even
even considering
considering the the internationalization
internationalization
of
of the
the Ruhr.
Ruhr. Now Now General
General Clay Clay took
took the the position
position that that if
if
Germany
Germany were were not
not centralized
centralized the the U.
U. S.
S. Zone would need
Zone would need more
more
industrial capacity to
industrial capacity to maintain minimum standard
maintain aa minimum standard of of living
living
and
and therefore
therefore reparations
reparations would would have
have to to be stopped.
be stopped.
Actually, aa central
Actually, central administration
administration for for Germany
Germany is is one
one ofof
the
the least
least controversial
controversial issues.
issues. No No oneone is is against
against it. it. With
With
aa central
central administration
administration there there are
are still
still dozens
dozens of of forms
forms which
which
German government
German government can can take.
take. No
No matter
matter whatwhat form
form is is adopted
adopted
the major
the questions will
major questions will still Have the
be: Have
still be: the Nazis cleaned
been cleaned
Nazis been
out? Has
out? Has there
there been
been anan end
end to to militarist
militarist influence?
influence? And And have
have
knocked out
we knocked
we out the German war-making
the German industrial potential?
war-making industrial potential?
The real
The real argument
argument over over reparations
reparations has has centered
centered on on the
the
question of
question of how
how much
much industry
industry is is to
to be
be left
left in
in Germany.
Germany. And And t
I
hack of
back of this
this is
is the
the problem
problem of of relations
relations with
with thethe Soviet
Soviet Union.
Union.
Communications from
Communications from the the U.
U. S.S. Military
Military Government
Government in in
German}r to
Germany to the
the War_,Dep‘artm_ent
WaruDep‘artm‘ent in in Washington
Washington show show clearly
clearly
enough what
enough what is is really
really at at stake.
stake. In In dispatches
dispatches sent sent during
during
June, 1946,
June, 1946, Russian
Russian ‘requests
requests for for reparations
reparations were were described
described
as ““ .. .. .. unrealistic
as unrealistic and and would
would seriously
seriously impair
impair the the reactiva-
reactiva-
tion of industry
industry in in the
the U.
U. S. Zone.”
....,.

tion of S. Zone.”
_ mfg suavm

-. "'4-.
|' .
“ fa...,N=r4._.
..-,,.~'
:1 1.. _ ..
_, ,_,.\\
I. If I. 4
 I

-:
:I
I
I
I

II

=I TO MAKE AMENDS
TO MAKE AMEND5 ' 219
219
There
There is little truth
is aa little the last
in the
truth in of this
half of
last half The
statement. The
this statement.
question is:
only question
only what point
at what
is: at “reactivation of
did “reactivation
point did industry”
of industry”
become America”5 major
become America’s job1n
major job Germany? I
in Germany?
the same
Along the
Along the French
line, the
same line, for coal
requests for
French requests were
coal were
also termed
also unrealistic and
termed ““ .. .. .. unrealistic would have
and would disastrous
have aa disastrous
effect on
effect on the economy.”
German economy.”
the German
I
Here there
Here disagreement as
some disagreement
is some
there is to what
as to “unrealistic.”
is “unrealistic.”
what is
standards of
Freneh standards
By French
By of realism, weightis
apparently, weight
realism, apparently, given
15 given
to the
to fact that
the fact four and
for four
that for years France
half years
and aa half drained
was drained
France was
everything the
of everything
of Germans needed,
the Germans the French
and the
needed, and people
French people
cold and
went cold
went to provide
hungry to
and hungry for the
comfort for
provide comfort German
the German
war-makers.
war-makers.
I
I
The whole
The matter of
whole matter coal production
of coal is an
production is ex-
interesting ex-
an interesting II
I

ample of
ample of the type of
current type
the current practised by
blackmail practised
of blackmail the
by the
Germans. The
Germans. The British have given
British have priority to
top priority
given top reviving
to reviving
production in
coal production in the Ruhr. Extra
the Ruhr. provided for
was provided
diet was
Extra diet for
-1_ .=_a_-

coal 1
the miners.
the production has
Yet production
miners. Yet low, so
remained low,
has remained that
low that
so low I
I

can be
little can
little for shipment
spared for
be spared France, although
to France,
shipment to before
although before
war France
the war
the consumer of
heavy consumer
was aa heavy
France was German coal.
of German Curi-
coal. Curi-
in policy
crisis in
ously, at each crisis toward the
policy toward Germans, the
the Germans, Ger-
the Ger-
appear to
mans appear
mans bolstered their
have bolstered
to have by aa sag
position by
their position Ruhr
in Ruhr
sag in
production.- At
coal production.-
coal same time,
the same
At the of the
output of
time, output Silesian
the Silesian
fields in
coal fields
coal eastern part
the eastern
in the Germany had
of Germany
part of pre-
passed pre-
had passed
war levels
war levels by 1946.
April, 1946.
by April,

The approach to
Potsdam approach
The Potsdam reparations was
to reparations based on
was based actual
on actual
‘condition as they
conditionss as existed at
they existed the end
at the end of war. For
the war.
of the this
For this
very reason it
very reason became the
it became center of
the center of international political
international political
conflict. As the
conflict. As most war-dama
the most war-damaged ged nation,
nation, the Soviet
the Soviet
Union receive the
would receive
Union would share of
lion’s share
the lion’5 German industrial
of German industrial I

equipment more you

The more
equipment.. The Germany, the
from Germany,
took from
you took more you
the more you \

I
gave Russia; conversely
to Russia;
gave to less you
the less
conversely,, the bothered the
you bothered the Ger-
Ger- I

mans and
mans more war
the more
and the left-them, the
you left-them,
potential you
war potential less you
the less you
helped rebuild
helped industry. For
Russian industry.
rebuild Russian those who
For those feared the
who feared the
Soviet Union
Soviet anything else
above anything
Union above earth it
on earth
else on became aa matter
it became matter
I‘
I
 220 ‘ no FARBEN
16 FARBEN
of
of prime concern to
prime concern to preserve IG Farben
preserve IG and the
Farben and the rest
rest of Ger-
of Ger-
man industry.
man industry. _. "'
To save
To save German
German industry
industry it
it was
was necessary
necessary to to invalidate
invalidate
the Potsdam
the Agreement. Considering
Potsdam Agreement. that the
Considering that Agreement was
the Agreement was
Signed by
signed by the
the highest
highest ranking
ranking representatives
representatives of of the
the three
three
strongest powers
strongest powers in
in the
the world,
world, that
that itsits ideas
ideas were
were inin the
the
direction of
direction of all
all the
the agreements
agreements worked
worked out out during
during thethe war,
war,
and that
and that it
it was
was backed
backed byby the
the feelings
feelings ofof everyone
everyone whowho had
had
had enough
had enough ofof war-—considering
war—considering all all these
these things,
things, aa clever
clever job
job
of destruction
of destruction has
has been
been done.
done. I‘
The attack
The attack onon the
the Potsdam
Potsdam Agreement
Agreement has has followed
followed two two
main lines.
main lines; The
The obvious
obvious approach
approach waswas simply
simply to to violate
violate
commitments and
commitments and stall
stall on
on sending
sending equipment
equipment out
out of
of Ger-
Ger-
many- As
many. As has
has -been
.been shown
shown before,
before, this
this has
has been
been done
done with
with
cc,mplete success
complete success by
by the
the British
British and
and nearly
nearly as
as successfully
successfully
by the
by the United
United States.
States. Alonggwith
Along‘with outright
outright stalling
stalling has
has gone
gone
a long-range
3 long-range approach:
appreach: aa systematic
systematic campaign
campaign to
to weaken
weaken the
the
ideas which
ideas Which lie
lie behind
behind Potsdam.
Potsdam. And
And this
this campaign,
campaign, too,
too,
is well
is well launched.
launched. ..
The long-range
The long-range campaign
campaign starts
starts with
with thethe idea
idea that
that Ger-
Ger-
many was
many was the
the economic
economic center
center ofof Europe
Europe before
before the the war.
war.
It -was
It was andand still
still is
is highly
highly industrialized.
industrialized. It It is
is densely
densely popu-
popu—
lated.
ted. It It is big food
not aa big
is not producer. If
food producer. If German industt‘y
German industry
i 5 cut
cut down
down the
the German
German people
people will
will starve
starve and
and allall of
of Western
Western
urOPe will
Europe collapse.
will collapse. '
These ideas
These ideas have
have been
been repeated
repeated soso often
often that
that theythey begin
begin
almOSt to be taken for
almost granted. They
for granted. represent aa final
They represent triumph
final triumph
of the
for the Nazi master of
Nazi master Goebbels. Take
propaganda, Goebbels.
of propaganda, Take thethe point
point
off Germany’s
Germany’s heavy heavy dependence
dependence on on feed
food imports.
imports. It It is
is true
true
that Germany
‘shat Germany does does not
not have
have thethe most
most fertile
fertile landland in in the the
orld- But
W01-1d. But even
even before
before the
the war
war Germany
Germany was was nearly
nearly eighty-
eighty-
five per cent self-suflicient
self-sufficient in food production and during the
31', with
W211-, with millions
millions ofof slave
slave laborers
laborers from
from Central
Central and and Eastern
Eastern
urOPe
rape working on the land, she became nearly ninety per
061‘“
cent self-sufficient.
Eu ' ‘ 0 1
self-sufficient. And this was done without real mechaniza- II1CCllElIl1Z3.-

1
 1
1

TO MAKE IAMENDS
AMENDS ]f p\ Ia 221
,tion
tion of
of farming.
farming. Franceis
Franceis thought
thought of as an agricultural coun-
coun-
4
\ try; yet,
try; yet, according to German
according to
of as
German figures,
an agricultural
figures, France before the war
4 had about
had about the
the same
same degree
degree of
of self-sufliciency
self-sufficiency as
as Germany—
Germany—
around eighty-three
around eighty-three per
per cent.
cent.
It is
It is true
true that.Cermany
that.Germany isis densely
densely populated. Yet it is no
more densely settled than, for example, Italy. Italy has two- '
thirds Germany’s area and also two-thirds Germany’s popu-
lation.
lation. But
But Italy
Italy has
has barely
barely fifteen
fifteen per
per cent
cent of
of Germany’s
Germany’s
steel-making' capacity,
steel-making‘ capacity, and
and steel
steel is
is the
the measure
measure ofof heavy
heavy
industry.
industry. If
If Germany
Germany could
could not
not survive
survive without
without its
its present
present
heavy
heavy industry,
industry, then
then Italy
Italy would
would have
have passedlout
passed_out of
of existence
existence
long ago.
long ago. ‘‘ J

Consider aa whole
Consider whole group
group of
of European
European countries:
countries: Austria,
Austria,
Belgium,
Belgium, Czechoslovakia,
Czechoslovakia, France,
France, Hungary, Italy, Luxem-
Hungary, Italy, Luxem-
bourg, Poland,
bourg, Poland, Roumania,
Roumania, Spain,
Spain, Sweden, and Yugoslavia.
Sweden, and Yugoslavia.
For all
For all twelve
twelve countries
countfies combined,
combined, average
average steel
steel production
production
between 1930
between 1930 and
and 1939
1939 came
came to
to about
about seventeen
seventeen and
and one-
one-
half
half million
million tons
tons aa year.
year. The combined population
The combined population ofof the
the ‘
'countries
countries was
was two
two hundred
hundred and
and seventy-six
seventy-six millions.
millions. Ger-
Ger-
many,
many, with
with aa population
population of of sixty-six
sixty-six million,
million, would
would havehave had
had i
an
an average
average steel
steel production
production of of only
only aa little
little more
more thanthan four
four 5
million
million tons
tons per
per year
year if
if she
she were
were no no more
more industrialized
industrialized than than t
2
the average
the average of of the
the surrounding
surrounding nations.
nations. Actually,
Actually, at at the
the peak
peak
of the
of the Nazi
Nazi warwar effort,
effort, German
German steelsteel production
production had had risen
risen
to
to more
more than
than twenty
twenty million
million tons
tons per
per year;
year; aa 'great
-great part
part of
of
the
the excess
excess capacity
capacity waswas entirely
entirely for
for war
war production.
production.
In
In view
view of of the
the average capacity of
average capacity of thethe other
other European
European
countries, early
countries, early estimates
estimates by by Americans
Americans of of the
the amount
amount which
which
should be
should be retained
retained inin Germany
Germany ran ran between
between threethree andand five
five
million
million tons
tons per
per year.
year. As As late
late asas October,
October, 1945, 1945, Edwin
Edwin
Pauley,
Pauley, Commissioner
Commissioner for for Reparations,
Reparations, remarked
remarked in in Europe
Europe
that 3.2
that 3.2 million
million tons
tons of
of steel
steel had
had met
met all
all ofof Germany’s
Germany’s needs needs I
I1

in
in the
the depression
depression yearyear 1932.
1932. ButBut by the time
by the time the
the four
four occupy-
occupy- _
ing
ing powers
powers had had gotten
gotten down
down to deciding the
to deciding the German
German level level of
of
industry (on
industry (on which
which reparations,
reparations, if if any,
any, would
would havehave to to he
be \
l1

. r

P
I‘
 222
222 _ IG FARBEN
[G FARBEN
A based),
based), the American figure
official American
the official pushed up
been pushed
had been
figure had up toto'
eight
eight million
million tons
tons or
or more.
more. This
This neat trick was
neat trick was accomplished
accomplished
by General
by Draper and
General Draper and his Standard of
his Standard of Living Board under
Living Board under
Dr.
Dr. C.
C. B.
B. Hoover.
Hoover.
The Russian
The estimate of
Russian estimate of how steel capacity
much steel
how much the Ger-
capacity the Ger-
mans should
mans remained at
have, remained
should have, million tons
4.5 million
at 4.5 per year.
tons per year.
The British
The had started
British had figure of
about aa figure
talking about
started talking of fourteen
fourteen
_.million annual capacity—jus
tons annual
_.million tons capacity——-just equal to
about equal
t about the entire
to the entire
capacity in
remaining capacity
remaining in the Ruhr——and by
the Ruhr—and by way of compromise
way of compromise
came down.
came million. The
nine million.
to nine
down. to figure finally
The figure agreed to
finally agreed to was
was
seven and
seven million tons,
one-half million
and one-half the added
with the
tons, with hope that
added hope that
production in
actual production
actual any one
in any would not
year would
one year above six
rise ahdve
not rise six
million
million tons.
tons.
heart of
The heart
The German steel
of German production is
steel production is in grimy blast
the grimy
in the blast
furnaces and
furnaces converters of
and converters of 'the Ruhr, in
"the Ruhr, in the British Zone.
the British Zone.
The British
The have not
British have moved an
not moved inch on
an inch reparations and
on reparations and there
there
is slightest indication—a
the slightest
not the
is not indication——aside signatures on
from signatures
side from on in-in-
ternational agreements—
ternational agreements--that theyintend ‘to.
that they‘intend Even if
~to. Even if there
there
happen to
should happen
should to bebe aa violent in British
shift in
violent shift policy, how-
British policy, how-
ever, German
ever, capacity at
steel-making capacity
German steel-making 7.5 million
at 7.5 tons per
million tons per
year would still
year would fifty to
run fifty
still run hundred per
one hundred
to one above the
cent above
per cent the
average
average forfor neighboring
neighboring countries.
countries.
Steel set
Steel pattern for
the pattern
set the industries, when
other industries,
the other-
for the when the the
German level
German level of industry was
of industry set. In
was set. every case,
In every the Bus-
case, the Rus-
'_ sians argued for
sians argued for less capacity, the
less capacity, British and
the British Americans for
and Americans for
more.
more. -
Consider the
Consider ‘case of
the ‘case of synthetic textiles. ‘' Here
synthetic textiles. Here waswas an an in-
in-
enormously swollen
dustry, enormously
dustry, during the
swollen during through the
war through
the war the goodgood
services
services ofof IGIG Farhen,
Farben, convertible
convertible to to the
the production
production of of ex-ex-
plosives.
plosives. The The British
British proposed
proposed that that thethe Germans
Germans be be leftleft
with
with aa capacity
capacity of of 250,000
250,000 tonstons per
per year
year whichwhich waswas just just
four
four and
and one-half
one-half times
times as
as much
much capacity
capacity as as they
they had
had before
before
the
the war.
war. The
The figure
figure finally
finally agreed
agreed on on was
was 185,000
185,000 tons tons per per
"“ year,
year, which
which was was still
still more
more than
than three
three timestimes the the 'pre-war
pre-war
German
German output.
output.
.-
/
 1

fo
TO MAKE AMENDS
AMENDS ~‘ 223
223
Or
Or consider
consider thethe production
production of dyestuffs. IG
of dyestuffs. IG Farben
Farben demon-
demon-
strated over
strated over aa period
period ofof forty
forty years
years the
the intimate
intimate connection
connection
dye-making and
between dye-making
between and the development of
the development new techniques
of new techniques
for war.
for Even so
war. Even so the proposal was
American proposal
the American an annual
for an
was for annual
production as
production high as
as high as sixty tons, as
thousand tons,
sixty thousand as against the
against the
French and
French argument for
Russian argument
and Russian no more
for no than twenty-five
more than twenty-five
thousand tons.
thousand compromise 'was
The compromise
tons. The was for dyestulf produc-
for aa dyestufi' produc-
tion
tion of
of thirty~six
thirty~six thousand
thousand tonstons yearly.
yearly. "”
In the
In case of
the case of cement Anglo-American position
the Anglo-American
cement the was for
position was for
no limit at
no limit on present
all on
at all this would
capacity; this
present capacity; come to
would come to about
about
fourteen and
fourteen one-half million
and one-half million tonstons of cement per
of cement year. Cer-
per year. Cer-
there is
tainly there
tainly is an enormous amount
an enormous amount of construction to
of construction to hebe
done in
done Germany. 'This
in Germany. "This is is also true of
also true of the whole of
the whole of Europe
Europe
broad swath
in aa broad
in swath from Normandy to
from Normandy Stalingrad. Germany’s
to Stalingrad. Germany’s
above its
much above
is much needs and
its needs and would
r
present cement capacity
present cement capacity is would J

leave the
leave surrounding countries
the surrounding countries far behind in
far behind in construction.
construction.
American and
Both American
Both and Soviet representatives agreed
Soviet representatives agreed in in calculat-
calculat-
that the
ing that
ing Germans actually
the Germans actually need need no no more than six
more than six million
million
tons
tons of cement per
of cement year. The
per year. figure finally
The figure on was
settled on
finally settled was
eight
eight million
million tons. tons.
reparations system
The reparations
.. The system drawndrawn up up at Potsdam made
at Potsdam made sense.
sense.
concentrating on
By~ concentrating
By‘ on the transfer of
the transfer of machinery instead of
machinery instead of
payments in
payments cash or
in cash goods, the
or goods, Potsdam system
the Potsdam would simply
system would simply
shift
shift the balance of
the balance industrial power
of industrial power fromfrom the world center
the world center
fascism to
of fascism
of to the countries which
the countries suffered the
which suffered most from
the most from
German
German aggression.
aggression.
That is,
That Potsdam system
the Potsdam
is, the would do
system would this-—if applied.
do this—if applied.
But the whole
But the reparations program
whole reparations program was badly hurt
was badly by forcing
hurt by forcing
up level of
the level
up the industry to
of industry allowed in
be allowed
to be Germany. And
in Germany. And as as
long as
long there is
as there still no
is still machinery moving
no machinery moving out out ofof western
western
Germany
Germany all debate on
the debate
all the subject will
the subject
on the will be merely idle
be merely idle
talk
talk and political gossip.
and political gossip. .If the stalemate
.If the continues, it
stalemate continues, it is
is
more than
more likely‘ that
than likely that the Potsdam plan
the Potsdam plan for reparations will
for reparations will
be dropped
be dropped by consent of
by consent the Allied
all the
of all powers. If
Allied powers. then the
If then the
Big agree to
Four agree
Big Four try to
to try to take reparations out
take reparations out of pro-
current pro-
of current

r
l

I
|
>
K
 224
224 , I' " IG FARBEN
duction, the
duction, the way
way will
will be
be clear
clear forfor aa return
return to
to the
the folly
folly ofof
Versailles.
Versailles. ._
Reparations
Reparations areare the
the key
key to
to the
the control
control of
of Germany
Germany and and its
its
supreme
supreme war-producer,
war-producer, IGIG Farben.
Farben. Relations
Relations with
with Russia
Russia
are
are the
the key
key to
to reparations.
reparations. In In the
the heat
heat of
of strife
strife between
between thethe
Western Powers and the Soviet Union, the work of the mili-
tary
tary occupation
occupation of of Germany
Germany is is paralyzedu-and
paralyzed—-—and IG IG Farhen
Farben
gains
gains strength
strength once
once more.
more.

'8

lg"-F‘?-~\

/ *1. ,
‘\

.» » ,- .
v~~4 ' r
. '1
t
\

14 I
Brush Fire 4
Brush Fire

Between
Between the ending of
the ending war and
the war
of the the beginning
and the beginning of Allied
of Allied
occupatio there was
occupationn there new governmen
was aa new government in Germany.
t in Germany. ForFor
aa few days Grand
few days Admiral Doenitz
Grand Admiral successor to
over'as successor
took overas
Doenitz took to
Hitler. Doenitz did
Hitler. Doenitz not last
did not long, but
last long, but he had time
he had enough
time enough
to make several
to make over the
speeches over
Several speeches Flensburg radio.
the Flensburg radio. PartPart of of
his proclamat
his proclamation announcing the
ion announcing end of
the end the war
of the war to Ger-
the Ger-
to the
man
man people
people isis worth qudting:
worth quoting:
“On May 8
“On May at 2300
8 at hours the
2300 hours arms will
the arms silent.
be silent.
will be '
“German
“German soldiers, veterans of
soldiers, veterans of countless battles, are
countless battles, now
are now
treading the
treading to captivity,
path to
bitter path
the bitter captivity, and thereby making
and thereby making thethe
last sacrifice for the the life of our
life of women and
our women children, and
and children, and
for
for the
the future
future of of our nation.
our nation.
“We bow
“We bow to who have
all who
to all have pledged
fallen. II have
have fallen. myself
pledged myself
the German
to the
to German people that in
people that the coming
in the times of
coming times will
want II will
of want
help courageou
help women and
courageouss women and children,
children, as far as
as far humanly
as II humanly
can,'to alleviate their
can,‘to alleviate Whether’this will
conditions. Whether’this
their conditions. will be pos-
be pos-
sible
sible II do not know.
do not know.
“We must
“We face facts
must face squarely. The
facts squarely. of state
unity of
The unity party
and party
state and
does not
does not eitist
exist any more. The
any more. The party left the
has left
party has scene of
the scene of
its activities.»-. .
its actiVitieSo " o I ’
A 225
225
 226 IG FARBEN
““ .. .. .. All
All of
of us
us have
have to
to face
face aa difficult
difficult path.
path. We
We have
have to
to
walk it
walk it with
with dignity,
dignity, courage
courage and
and discipline
discipline which
which those
those
demand of us, who sacrificed their all for us. We must walk
it
it by
by making
making the the greatest
greatest efforts
efforts to
to create
create aa firm
firm basis
basis for
for
our
our future
future lives.
lives. .. .”
.”
One
One of of the
the simpler
simpler lessons
lessons ofof history
history is
is that
that pe0ple
people often
often
mean
mean what
what they
they say.
say. It
It seemed
seemed unlikely,
unlikely, but
but Hitler
Hitler meant
meant
it
it when
when he
he said
said he
he would
would have
have the
the world
world for
for Germany
Germany oror die
die
trying.
trying.
Doenitz’s
Doenitz’s proelamation sounds very
proclamation sounds very much
much as as if
if he
he meant
meant
it, too.
it, too. There
There is
is aa note
note of
of scorn
scorn for
for the
the Nazi
Nazi Party
Party which
which
“left the
“left the scene
scene of
of its
its activities.”
activities.” But
But there
there is
is no
no scorn
scorn for
for the
the
German Army.
German Army. It It was
was aa motley
motley crowd
crowd of of little
little boys
boys and
and
elderly men
elderly men which
which went
went down
down “the
“the bitter
bitter path
path toto captivity”
captivity”
when
when the the war
war was over but
was over but Doenitz
Doenitz covers
covers its
its wounds with
wounds with
the cloak
the cloak of
of glory.
glory. There
There is
is no
no admission
admission of
of error,
error, no
no call
call
to aa different
to different way
way ofof life.
life. Honor
Honor your
your dead,
dead, Doenitz
Doenitz says.
says.
Preserve your
Preserve your discipline.
discipline. Build
Build aa firm
firm base
base for
for the
the future.
future.
It is
It is easy
easy to
to laugh
laugh at
at the
the beaten
beaten Hitler.
Hitler. There
There are
are few
few Ger-
Ger-
mans still
mans still alive
alive who
who would
would laugh
laugh at
at the
the words
words ofof aa Grand
Grand
Admiral ‘Doenitz.

The universities
The universities began
began to
to open
open again
again inin the
the U.
U. S.
S. Zone
Zone ofof
Occupation
Occupation inin Germany.
Germany. TheThe young
young men
men who who survived
survived the
the
finish
finish of
of their
their Wehrmacht
Wehrmacht went
went back
back toto school.
school. They
They wore
wore
their
their army
army boots,
boots, parts
parts of
of their
their uniforms.
uniforms. They They sat
sat in
in the
the
cold,
cold, dreary,
dreary, sometimes
sometimes bomb-s‘carred
bomb-scarred classrooms,
classrooms, andand lis-
lis-
tened and waited. They were young soldiers out of work. -
Pastor
Pastor Niemoeller
Niemoeller went
went to
to speak
speak to
to the
the boys
boys in
in the
the school
school
at
at Erlangen.
Erlangen. The
The Pastor
Pastor was
was once
once aa U-Boat
U-Boat commander
commander him;
him;
self.
self. In
In earlier
earlier years
years he
he had
had spoken
spoken for
for Hitler.
Hitler. Even
Even at
at the
the
end of World War II he had said that a patriotic German
had
had to
to fight
fight in
in any
any war
war his
his country
country started.
started.
But
But now
now he
he was
was telling
telling the
the veteran-students
veteran-students ofof Erlangen
Erlangen
/_, his
his latest
latest thoughts
thoughts about
about World
World War
War II.
II. It
It was
was aa bad
bad war,
war,

"V
 BRUSH FIRE ' 227
he said.
he said. The whole
The whole German
German nation
nation was stained with
was stained war
with war
guilt. They
guilt. They must
must all
all share
share in
in the
the war
war guilt.
guilt.
First there
First there was
was loud
loud coughing
coughing in in the
the room.
room. ThenThen there
there was
was
the sound
the sound ofof army
army boots
boots shuffling
shuffling and and scraping
scraping thethe floor,
floor,
shuffling louder
shuffling louder and
and louder,
louder, till
till the
the words
words of
of Pastor
Pastor Niemoeller
Niemoeller
were drowned
were drowned out.
out. _ -

The last
The last ten
ten years
years of
of this man’s life
this man’s life had
had been
been spent
spent in three
in three
concentration
concentration camps.
camps. At the end
At the end he he was
was shipped
shipped toto Dachau.
Dachau.
By
By virtue
virtue of
of survival
survival he
he had
had become
become aa sort
sort of
of unofficial
unofficial senior
senior
political
political prisoner.
prisoner. ‘ _ .
He
He was
was aa remarkable
remarkable man. man. To
To survive
survive ten
ten years
years inin the
the con-
con-
centration
centration camps
camps waswas in in itself1n
itself in the
the nature
nature of
of aa miracle.
miracle. It
It
required
required tremendous
tremendous endurance,
endurance, great great luck,
luck, and
and anan unshake-
unshal<e-
able
able desire
desire to
to live.
live. Each morning for
Each morning for ten
ten years
years he
he had
had faced
faced
the
the prospect
prospect ofof aa possible violent death
possible violent death by
by nightfall.
nightfall. Almost
Almost
literally, one had
literally, one to catch
only to
had only eye of
the eye
catch the in the
guard in
of aa guard the
wrong
wrong way.
way. ''
And
And then
then there
there came
came aa day
day when
when he
he heard
heard shots
shots and
and con-
con-
fused
fused shouting
shouting and
and someone
someone cried,
cried, “The
“The Americans
Americans are
are here.”
here.”
That
That was he would
day he
was aa day never forget
would never or ever
forget or re-
entirely re-
ever entirely
member.
member.
He
He started
started home
home and
and news
news of
of his
his coming
coming went
went ahead
ahead ofof
him. His
him. was in
home was
His home industrial suburb
small industrial
in aa small across the
suburb across the
river
river from
from Frankfurt-on-the-Main.
Frankfurt-on-the-Main. In
In his”
his’ district
district the
the streets
streets
were
were narrow and twisting
narrow and and cothe-stoned,
twisting and cobble-stoned, thethe houses were
houses were
small and
small together. There
cramped together.
and cramped There were still people
were still there
people there
who remembered him.
who remembered They planned
him. They big homecoming
planned aa big party
homecomingr party
and decorated the
and decorated with placards
street with
the street placards and flowers. They
and flowers. They
collected
collected whatever
whatever food
food they
they had
had for
for aa banquet.
banquet.
Unfortunately,
Unfortunately, itit was
was hard
hard toto send
send messages
messages across
across Ger-
Ger-
' many
many in days. He
those days.
in those at Dachau
stayed at
He stayed Dachau an day to
extra day
an extra to
help distribute
help distribute food
food to
to the
the liberated
liberated prisoners,
prisoners, and
and arrived
arrived
home aa day
home late for
too late
day too own celebration.
his own
for his The placards
celebration. The placards
were
were down,
down, the
the flowers
flowers wilted.
wilted.
_"' - n

' 228
228 [G FARBEN
IG FARBEN

So the
So people came
the people see him,
to see
came to to wish
him, to him well
wish him talk
and talk
well and
the future,
about the
about how he
tolsee how
future, tosee to congratulate
looked, to
he looked, his
congratulate his
and the
wife and
wife who had
daughter who
the daughter from eight
grown from
had grown eighteen
to eighteen
eight to
he was
while he
while For three
away. For
Was away. he allowed
days he
three days this
himself this
allowed himself
of vacation,
kind of
kind days after
three days
vacation, three ten years.
the ten
after the those
For those
years. For
days he
few days
few open house,
held open
he held visited with
he visited
house, he relatives,
his relatives,
with his
he tried
he to reach
tried to to his
back to
reach back wife across
his wife the gap
across the years. '
of years.
gap of
I And
And then he went
then he work. --
to work.
went to
‘He was given
He was job in
given aa job provisional German
the provisional
in the government
German government
which was
which was taking shape in
taking shape under the
region under
that region
in that military
the military
And now
authority. And
authority. now there some Americans
were some
there were who came
Americans who came
to visit him,
to visit what an
see what
to see
him, to anti-Nazi German
an anti-Nazi to say.
had to
German had say.
One American
One to see
came to
American came in the
him in
see him The dark
evening. The
the evening. dark
street was
street narrow and
so narrow
was so that the
twisting that
and twisting American had
the American had
difficulty maneuverin
difficulty maneuvering it in
through it
g through jeep. They
his jeep.
in his spent aa
They spent
pleasant time
pleasant together. The
time together. American asked
The American few questions
asked aa few questions
trying to
trying meaning of
the meaning
catch the
to catch ten years
of ten in concentrati
years in on
concentration
across the
camps across barrier of
the barrier The man
languages. The
of languages. from Dachau
man from Dachau
answered readily,
answered often to
turning often
readily, turning wife for
his wife
to his and then
words and
for words then
smiling always when his
always when eyes found
his eyes hers again.
found hers again.
The Americau
The asked questions
American asked about aa program
questions about for the
program for the
redemption of
redemption Germany. The
of Germany. man from
The man Dachau represented
from Dachau represented
some groups
some Germans. Did
of Germans.
groups of think it
he think
Did he be possible,
would be
it would possible,
for example, to
for example, out all
root out
to root Nazi and
the Nazi
all the them from
remove them
and remoxie from
important posts?
important posts? __
“Yes,” the
“Yes,” Dachau said,
manfrom Dachau
the man‘from course. It
“of course.
said, “of is easy
It is easy
to find the
to find Just ask
Nazis. Just
the Nazis. me and
ask me my friends.
and my what are
But what
friends. But are
you going to
you going about it?”
do about
to do it?”
.. n

What about
What big cartels,
the big
about the American asked.
the American
cartels, the Would it
asked. Would it
., ,. m.

be
be possible
possible to
to break
break their
their grip
grip on
on German
German economic
economic life?
life?”
H ’ “""‘ ”.4 ’ "-'—-' -4-~—._.- -u

“Yes,
“Yes, definitely.
definitely. Difficult,
Difficult, but
but possible
possible and
and necessary.”
necessary.” TheThe
German
German grinned
grinned asas if
if to
to indicate
indicate that
that from
from here
here onon all
all -. _,_=. _

problems
problems could
could be
be solved.
solved. “But
“But allall we
we can
can do
do is
is support
.-

support such
such
a3 program.
program. There
There will
will be
be many,
many, veryvery many,
many, whowho will
will oppose
oppose ~.-.-. _. -4

it-
it, What
What will
will you
you do?”
do?” H _

4
f/

7/I +"\7 .
 BRUSH FIRE
BRUSH FIRE ' ta 229
229
.The Amreican asked
The Amreican asked about about democracy
democracy in general. Would Would
it be
it be possible
possible to to build a new,
build a new, free and democratic
democratic state in
Germany?
Germany? '
The man
The man from Dachau answered: answered: “Of “0f course,_of
course,,of course.
We must.
We must. ButBut youyou are are thethe Military Government. Tell
Military Government. Tell me,me,
please, what
please, what areare you
you goinggoing to to do about it?”
The American
The American investigators
investigators were were shown shown around the mustard
gas plant
gas plant byby the
the German
German engineer,
engineer, Dr. Dr. Roell.
Roell. Dr. Roell was a
lucky man.
lucky man. He had aa good
He bad record with
good record with IG Farben, which
IC Farben, which had had
operated the
operated plant for
the plant for the the German government. He
German government. He had never
had never
joined the Nazi Party. And now he was back at work again,
operating under
operating license from
under license from thethe U. U. S. Government.
Military Government.
S. Military
The plant
The hidden deep
was hidden
plant was deep inin aa forest. units were
Its units
forest. Its scat-
were scat-
tered and
tered camouflaged, connected
and camouflaged, connected by miles of
by miles forest-green
of forest-green
pipes. The
pipes. equipment was
The equipment new, nothing
was new, nothing had touched by
been touched
had been by
the war.
the war. Dr. Roell took
Dr. Roell pleasure in
took pleasure showing off
in showing off the efficiency
the efficiency
of his
of lay-out.
his lay-out. -
Was the
Was plant now
the plant now in operation?
in operation? ‘
Oh yes,
Oh certainly, it
yes, certainly, it made quantities of
large quantities
made large anti-freeze, for
of anti-freeze, for
radiators.
automobile radiators.
automobile
Had they ever made anti-freeze anti-freeze before?
But, of
But, course. It
of course. It was simply ethylene
was simply di-glycol. In
ethylene di-glycol. Ger-
In Ger-
many it was known as “Glyssantine,” “Glyssantine,” in America “Prestone” “Prestone”
——the same thing. Most of the plant was set up to produce anti-
freeze; only
. freeze; onlyone last operation
'one last operation was was required
required to convert it
to convert it
into mustard
into mustard gas. gas. -.L u
Did they
Did any trouble getting
have anytrouble
they have permission to
getting permission operate _
to operate
from the
from the American officers?
American officers? ,
Not at
Not Roell wanted
Dr. Roell
all. Dr.
at all. wanted to make sure
to make would be
there would
sure there be
no unpleasant
no misunderstanding. The
unpleasant misunderstanding. situation was
The situation quite
was quite
encouraging. If
encouraging. only they
If only could get
they could get more Did the
coal. Did
more coal. gentle:
the gentle-'
men think
men think that
that could
could be arranged?
arranged? .
Could the
Could mustard gas
the mustard plant produce
gas -plant anything besides
produce anything besides
anti-freeze?
anti-freeze?
Of course.
Of course. In In this everything started
plant everything
this plant limestone
from limestone
started from
-.,.,_i.__-_fi_

23o
' 230 '‘ ' IG FARBEN
IG FARBEN
and coal. What
and coal. wanted? Dr.
was wanted?
What was produced aa report
Roell produced
Dr. Roell with
report with
and varied
long and
aa long of products,
list of
varied list of which
production of
products, production was
which was
already planned
already and approved.
planned and approved.
Would it
Would be easy
it be produce mustard
to produce
easy to mustard gas again?
gas again?
Yes. Dr.
Yes. Roell asked:
Dr. Roell you gentlemen
“Are you
asked: “Are interested in
gentlemen interested in
that———no w?”
that~—-now?” Il ..
dozen of
A dozen
A the most
of the executives of
important executives
most important IG Farben
of IO Farben
were kept in
were kept old city
the old
in the in Frankfurt,
jail in
city jail guarded by
Frankfurt, guarded by Ameri-
Ameri-
soldiers. For
can soldiers.
can all of
For all them it
of them was an
it was experience..
unusual experience
an unusual
reacted in
They reacted
They different ways.
in different ways.
Dr. quickly demonstra
Ilgner quickly
Max Ilgner
Dr. Max demonstrated his talents
ted his for or-
talents for or-
ganization;; his
ganization jailers put
G.I. jailers
his G.I. him in
put him charge of
in charge the details
of the details
cleaned out
which cleaned
which the cell
out the Gunther Frank-Fah
Dr. Gunther
block. Dr.
cell block. Frank-Fablele
busied himself
busied journal, in
with aa journal,
himself with calm and
in aa calm objective man-
and objective man-
ner. Dr.
ner. von Schnitzler
Georg von
Dr. Georg not take
did not
Schnitzler did so well.
it so
take it well.
Dr. von
Dr. Schnitzler had
von Schnitzler had been head of
the head
been the the IG
of the IG Com-
Com-
mercial committee
mercial committee. . HeHe had representedd 1G
had represente IG as an ambassado
as an ambassador- r—
at-large important internatio
in important
at-large in international functions. It
nal functions. was he
It was he who
who
received the
had received
had surrender of
the surrender French chemical
the French
of the industry.
chemical industry.
When first
When arrested Dr.
first arrested Dr. von had given
Schnitzler had
von Schnitzler the im-
given the im-
pression of
pression looking over
constantly looking
of constantly shoulder for
his shoulder
over his for aa firing
firing
squad. He
squad. He was frightened.. The
was frightened other IG
from other
story from
The story IG men
men
most of
that most
was that
was his drive
of his, shrewd and
from aa shrewd
came from
drive came and ambitious
1
ambitious
wife. After a
wife. After weeks in
few weeks
a few seemed old
he seemed
jail he
in jail and broken.
old and broken.
His clothes
His Some days
bad. Some
looked bad.
clothes looked forgot to
he forgot
days he to shave.
shave.
After the investigat
After the investigation ion of Farben had
IG Farben
of IG continued for
had continued for
some time
some American oIficer
an American
time an the IG
that the
decided that
officer decided IG executives
executives
no longer
no need be
longer need be kept jail. They
in jail.
kept in were released.
They were released.
Later, the same.day, Dr. von Schnitzler Schnitzler was seen entering
was seen entering
the Carlton
the taken over
Hotel, taken
Carlton Hotel, the occupatio
during the
over during as quar-
occupationn as quar-
ters for American
ters for His appearanc
officers. His
American officers. appearance was totally
e was totally
changed.
changed. Once
Once more
more he
he looked
looked like
like an
an ambassador -at-large.
ambassador-at-large.
u..., _.

His
His manner
manner was
was smooth,
smooth, his
his hearing impressive.. As
bearing impressive As he
he walked
5

walked
through
through the
the lobby
lobby of
of the
the Carlton,
Carlton, the
the news
news could
could be
be heard
, .e——--

heard
spreading
spreading among
among the
the German
German helphelp in
in aa rustling
rustling whisper.
whisper. The
The
1..“

~w.e,_~_.
1
 t

' 1

BRUSH
BRUSH FIRE
FIRE 231
231
greeted Dr.
manager greeted
manager Von Schnitzler
Dr. von royalty. There
like royalty.
Schnitzler like were
There were
bowings and
bowings all over
scrapings all
and scrapings lobby. Was
the lobby.
over the there anything
Was there anything
he wanted?
he there anything
Was there
wanted? Was could be
which could
anything which done? Rubble
be done? Rubble
still lined
still the streets
lined the Frankfurt but
of Frankfurt
streets of it looked
but it as if
looked as good -
the good
if the
old days might
old days coming back.
be coming
might be back. ''
The next
The the decision
day the
next day reversed by
was reversed
decision was another Ameri-
by another Ameri-
can official.
can Most of
official. Most released executives
the released
of the were ordered
executives were ordered
picked up
picked Dr. von
again. Dr.
up again. was among
Schnit_zler was
von Schnitzler them. He
among them. He
went back to
went back started to
jail, started
to jail, seedy again,
look seedy
to look the clerks
and the
again, and clerks
in the
in Carlton waited
Hotel Carlton
the Hotel longer for
little longer
waited aa little good 'old
the good
for the old
days to
days to come
come again.
again.

Half of
Half of the of destroying
task of
the task was accomplished
Nazism was
destroying Nazism by
accomplished by
Allied arms
Allied the battlefie
on the
arms on battlefield. The other
ld. The other half of the
half of was
job was
the job
planned at Potsdam
planned at Potsdam.. More after agreeme
year after
than aa year
More than agreement was
nt was
reached by
reached Big Three
the Big
by the at Potsdam
Three at Potsdam, the second
, the of the
half of
second half the
job
job still
still remains
remains to
to be
be done.
done.
forces which
The forces
The made German
which made Germany y aa war-mak
war-maker are still
er are still
the particul
If the
active. If
active. ar halféma
particular half-madd philosop hy of
philosophy Hitler and
of Hitler and
Rosenbe
Rosenberg no longer
is no
rg is very much
heard very
longer heard in Germany
much in Germany, , this
this
makes the
only makes
only danger greater.
the danger is true
It is
greater. It that‘ German
true that' Germany y can
can
not immedia
not immediately launch armies
tely launch the whole
against the
armies against world. Let
whole world. Let
no one
no comfort from
take comfort
one take Germans can
The Germans
this. The
from this. can still throw
still throw
heavy weight
a heavy the side
toward the
weight toward any new
of any
side of type
new type of fascism
of fascism
which There remain
develops.. There
which develops in German
fires in
brush fires
remain brush Germanyy today
today
which tomorro
which tomorrow can turn
w can raging inferno
into aa raging
turn into engulf the
to engulf
inferno to the
world.
world. ' _
V
,/_q __

‘L_!J'_":Iv_'‘lE1k“_4‘_‘iz -

fiu

I:Viyaw,i‘-‘

I I M _‘
APPENDIX
APPENDIX

1
I
|
K

i
1
 I N“ I

g_
h‘’I _ \_ _ “_
‘fir’
_H_
H _ ‘ J3_;
‘_‘J___
 ,s
\

um-._.-
I
wan

I
.

APPENDIX I' I1
APPENDIX
“ Some Facts About~Cartels
Some Facts About~CarteIs
\

I
t

the term
book the
this book “cartel” is
term “cartel” frequently used.
is frequently The story of
used. The
Throu
Th ghout
roug h o ut this storys of
in
course, as
of course, demonstration as
good aa demonstration
as good possible of
as possible of cartel
IG Farbe
IG Farben is, of
n is, . . cartels
. 1thean6
cartel s is given inin
I

operat ion.
operation. Some
Some of
of the
the more
more gener al
general backg round
background of
of cartels is given
appen dix which
appendix follows.
which follows. --
Definitions of
Definitions Cartels
of Cartels
given by
was given by Adam Smith
Adam Smith
Perha the simplest explanation of cartelss was
ps the
Perhaps simpl est expla natio n of cartel
ago. Smith
half ago.
and aa half “People
wrote, “Peep
Smith wrote, the same
l e oofi the same trade trade
than aa centu
more than ry and
century _
diversion, but
and diversion,
menl: and but thethe conver sation
for merri
even for
er, even

:3; ”14...“; A
seldo
BC ldom meet togeth
m meet together, merriment conversatiori
I n
o - n
pubhc, or
the public,
u
or in
-
m some
-
contnvance to
some contrivance to ratse pnces.
ends in
I
m a consplracy against
a conspiracy agamst the raise prices. -~._,.

simply the modern in

most modern
the most in a series of business ddevice
a series of busine ss aimed
' s aimed
The cartel is is simply
' ' ' ' evices
compet ition, and to keep prices high.
trade and
controll trade
to contro and produc tion, to
production, to stifle
stifle competition, and to keep prices high.
between supposedly
ment between indep
supposedly in epen en
' d enden
d tt busine sses
businesses
It takes the form of
the form of anan agree
agreement f t

and 1't can

an d it cover any
can cover thing from
any thing settingg of
from settin of produc
production quotas to sharing 0of
tion quotas to sharin g
splitting of
to splitting profits and
of profits and
trade marks to
trademarks to establ ishing of
establishing of jeint sales oflices
joint sales oflices to
shari
sharing patentss and
ng of patent and indust
industrial methods.
rial methods. r

dozenss of of diflere kinds of

nt kinds cartel all
of cartel add up
all add to the thing:
same thing:
the same
I

The dozen different up to I

organi zation s and often domin ant

limitedd marke usuallyy large
t, usuall
:
compe titors in
competitors in aa limite market, large organizations and often dominant
the marke t or at least to stay
monop olies in
monopolies severall countr
in severa countries, agree to
ies, agree to share
share the market or at least to stay n

within assig
within assigned ned areas.
areas. The
The terms
termsof -of agree ment may
agreement may be be highly com plcx, drawn
highly complex, drawn . r

the formal ity of of diplom atic protoc ol, but but thethe essent featur es
ial features are are I
with the
‘._E_h_4_

formality diplomatic protocol, essential

sharing of market and control of
and control prices.
of prices. ' §
I’

cartel of
The cartel course runs
of course counter to all the precept s
runs counter to all the precepts of free trade. But of free trade. But
there has
that there has been serious fight
been aa serious between the
fight between opposing
the opposing
m":

it can hardly be said that

be said
trade and
free trade
of free carteliz ation.
and cartelization. Free trade is an idea so much
philosophies of
philosophies Free trade is an idea so much
—..-_ .._ . ._.. ...~_..,. , ..nl.._.,~..-._..,

and so long talked about that

talked about that it acquired aa reality
has acquired
it has of its own—wi
reality of its own--without ever thout ever
having been
having realized for
been realized for any length of
great length
any great time in
of time domina
any dominant part of
in any nt part of ,~. -._.,_ ,_

world’s economy.
the world's '
At most, Iaissezlaissez fairs policy to
described aa policy
jaire described interests of
best interests
the best
to the of oneone group
group
235
235
.7'
_.,_ _

I
--

~.

236 IG FARBEN
in one country at a particular time. So long as British industry had a com-
fortable lead over producers anywhere else, it was clearly to the interest of
the manufacturers and traders of England to be able to sell their wares
wherever English ships could carry them.
But what
But what a brief period in the world’s history was covered by that phase
of
of British
British free trade. Throughout the Western World
Worltl the breakup of feudalism
——in which free trade was impossible—led
impossible——led to mercantilist imperialism in
which the self—contained
self-contained economic spheres or units were merely greatly en-
larged and more efficiently
efficiently operated. If one looks for a formal closing date,
it might be said that the period of the old commercial or mercantilist empires
ended with the triumph of British over French empire-huilding
empire-building in 1763.
But even in England itself, it was not until the first
first third of the nineteenth
century
eentury that the traders and manufacturers could force repeal of the tariff
on wheat against the opposition of the landed aristocracy. And by the last
third of the nineteenth century a new age of political imperialism and eco’ eco-
nomic monopolies was getting well under way. The cartel movement in Germany
nomic monopolies
is
in generally held to have begun as early as 1873. France took'
took" Tunis in 1881
and in thirty years European countries had taken over all of Africa except for
Liberia and Abyssinia. ._
Even as a theory, free trade was more or less the sole property of
English business of the nineteenth century to he be used as a weapon against
foreign competitors who hid behind tariff walls and domestically, against their
own native version of a farm bloc. Significantly;
Significantly, the Germans never produced
a
3 school of economic theorists who preached the doctrines of laissez faire.
jaire. The
infant industries of the United States, fighting for a foothold against the
established
established workshops
workshops of of Great
Great Britain
Britain throughout
throughout thethe nineteenth
nineteenth century,
century,
needed
needed nono theoretical
theoretical excuse
excuse toto seek
seek shelter
shelter behind
behind the
the protection
protection of of tariffs.
tariffs.
Today there is hardly even a theoretical fight over free trade. The old terms
are
are used
used but
but in
in different
different connections.
connections. The
The idea
idea of
of “freedom”
“freedom” forfor trade
trade and
and
business enterprises generally is used to mean freedom from government con-
straint,
straint, freedom
freedom therefore
therefore to
to organize
organize in
in restraint
restraint of
of trade.
trade. The
The idea
idea of
of “self-
“self-
ovemment in industry” was developed in the period before World War II
governmfint
to mean nothing less than the right to organize industry-wide cartels. The old
idea of the right of the individual trader to enter any market he sees fit
and to sell there at any price he chooses has become anachronistic.
The truth is)that
isgthat the cartel has grown up as an inevitable by-product
hy-product of
the whole vast economic process throughout the world in which big business
organizations have become bigger
Organizations higger and ‘world
world markets have shrunk to provide
bare elbow
bare elbow room
room for
for competmg
competing industrial
industrial giants.
giants. Along with trusts and mono-
olies in the economic sphere and the various forms of imperialism, including
p0]jes
fascisrn
fascism on the political side, the cartel is one of the direct re5ults results of, 81nd
and
instruments for, concentration of control.
The evil effects of cartels are all too clear in the wreckage of world war.
That they must ‘be
Thai be curbed andvif
and; if possible eradicated is as simple and self-
evident
evident a proposition as the notion that a world which has become host to the
to the
atom ‘bomb should avoid war. The story of IG Farhen Farben and its dealings with with
its cartel partners illustrates as as 'clearly
‘clearly ‘as anything can
as anything can how
how cartels
cartels adapt
adapt
thcmselvee
themselves to the 'pressures
‘pressures of imperialist rivalry and become become in in fact
fact the
the
1mhicle through which
vehicle. il11'°11£§h Whlch a great war takes shape. But the solution will not be
our“! in an attempt to turn the clock back
found back to
to an
an economic
economic policy
policy ofof laissez faire
laissez faire
whiCh was barely able to work
which work even
even when
when itit was
was first
first proposed.
proposed.
A t; 2.2;. -._

3-'_;._._—

APPENDIX ONE
APPENDIX ONE -- // 237
237
The
The cartel must be
cartel must handled on
he handled on its own terms,
its own within the
terms, within conditions
actual conditions
the actual
out of
out which it
of which And this
arose. And
it arose. involves in
this involves in the first place
the first understanding of
an understanding
place an of
operate, how
how cartels operate, developed and
they developed
how they they did
what they
and what to promote
did to war.
promote war.
In testimony before
In testimony the Kilgore
before the Committee of
Kilgore Committee the U.
oi the S. Senate,
U. S. of the
one of
Senate, one the
Department of
Department Justice experts on trusts and cartels, Corwin D. Edwards,
of Justice experts on trusts and cartels, Corwin D. Edwards, out- out-
the three
lined the ways in
main ways
three main cartels are
which cartels
in which set up.
are set up.
Some cartels are
Some cartels up simply
set up
are set as associations,
simply as as Edwards
resembling as
associations, resembling Edwards I
“. .. .. aa national
says, “. association which
trade association
national trade engaged in
is engaged
which is restrictive activities
in restrictive activities
.. .. .. Such cartels-may formally
Such cartelslmay to fix
agree to
formally agree to limit
prices; to
fix prices; apportion out-
and apportion
limit and out-
put, sales, or
put, sales, exports; to
or exports; to allocate territories; to
market territories;
allocate market profits in
redistribute profits
to redistribute in
accordance with with an formula; or
agreed formula;
an agreed to sell
even to
or even jointly main-
through aa jointly
sell through main-
tained sales agency. . .” , ‘i
A cartel of
A cartel sort is
this sort
of this limited by
is limited thoroughly the
how thoroughly
by how cartel partners
the cartel partners
and by
market, and
control the market, same token, the extent to which they
the same
by the token, the extent to which have an
they have
monopoly on production. In
on production. In somelcountr
some countries, notably the United States where
ies, notably the United States where
Sherman Act
the Sherman
the half aa century
after half
Act after in effect,
remains in
century remains operations of
such operations
eflect, such
4-__4-_<
of
cartels
cartels are
are limited
limited byby law.
law. -rate

The association may

,The may be government sponsored.
be government foreign countries
In foreign
sponsored. In is aa
this is
countries this '!
e; it can happen here, too. The language of American policy is
J

commonplac
commonplace; it can happen here, too. The language of American policy is Y

full of tribute to the principles

to the of free trade but even here we have cartels
principles of free trade but even here we have cartels set set 4
I

sanction of
full sanction
with full law. For
the law.
of the the Webb-Pomer
under the
example, under
For example, Act of
ene Act
u
up with
up Webb-Pomerene of at

1918, export associations created with

were created
associations were specific immunity
with specific from the Sherman
immunity from the Sherman l

Act. For
Act. our own
For our part these
own part might simply
these might have been
simply have set up
been set as aa defensive
up as defensive \
-_1
measure to
measure American foreign
maintain American
to maintain trade in
foreign trade the face
in the intervention by
oi intervention
face of by it
govemmentss but
foreign government the foreigners’
from the
but from these were
viewpoint these
foreigners’ viewpoint plain cartels.
were plain cartels.
R.
R. Liefmann,
Liefmann, aa German
German cartel
cartel authority.
authority, described
described associations
associations set
set up
up under
under the
the
Wehh-Pome
Webb-Pomerene “. .. .. aa clear
as “.
rene Act as case of
clear case of export deliberately fostered
cartels deliberately
export cartels fostered 14
of the
by the Government of U. S.
the U. S. A. to the detriment of the European consumer."
A. to the detriment of the European consumer." L

A second major type of of cartel is the

cartel is patent licensing
the patent agreement. This
licensing agreement. This
was
was perhaps
perhaps the
the most
most realistic
realistic and and at
at the
the same
same time
time the
the commonest
commonest basis
basis for
for
internationall carteI-maki
internationa ng in
cartel-making the period
in the World War
before World
period before The driving
II. The
War II. driving
force of an economy is of course
is of technologicall development
course technologica Particularly in
development.. Particularly in
newer
newer industries,
industries, agreements
agreements based
based solely
solely on
on control
control ofof prices
prices and
and markets
markets
would soon break up if one partner moved
one partner ahead with
far ahead
moved far new processes.
with new processes. '7-.-~.7F'"€Z.'*z_'x~'-s:.;

e,
Furthermore, the patent sharing device was especially well-adaptedd to
1
Furthermor the patent sharing device was especially well-adapte to the
the r

German
German position—a nd
position—~and as as has
has been
been seen,
seen, the
the Germans,
Germans, with
with 10IG Farben
Farben inin the
the n’
I
lead,
lead, were
were the
the prime
prime movers
movers in internationall cartel
in internationa cartel building.
building. Because
Because ofof inten-
inten- I
|

sive
sive devotion
devotion toto commercial
commercial science,
science, invention
invention was
was the
the big
big stick
stick used
used by
by the
.._. . 7., .Wwpf .. -_.. aw r—rvsmmyeo-b f.gr-gs :z_»‘-x,,,,tvl_t -.. A ;

the
German
German negotiators
negotiators inin the
the diplomacy
diplomacy of of Big
Big Business.
Business. Share
Share the
the markets
markets with
with
us, they said in effect, or we will drive you out with new products.
The
The patent
patent sharing
sharing agreement generally also calls for sharing of industrial
methods,
methods, the
the unpatented
unpatented body
body of
of special
special knowledge
knowledge of
of how
l1ow to
to do
do things
things which
which
can
can he
be more
more important
important than
than the
the information
information contained in a formal patent. And
it
it quickly
quickly spreads.
spreads. An
An agreement
agreement between
between two
two concerns
concerns soon
soon affects
affects all
all pro-
pro-
ducers. If one of the original partners enters a cartel arrangement with another
organization,, the terms of the first cartel must be protected and maintained.
organization
If
If Du
Du Pont
Pont in
in the
the United
United States,
States, for
for example,
example, has
has aa cartel
cartel agreement
agreement with
with IG
IG
Farben,
Farben, then
then aa deal
deal made
made byby Du
Du Pont
Pont with,
with, say,
say, the
the Imperial
Imperial Chemical
Chemical In-
In- '*-q
~=-11'—E~_vr—- u1¢"|.-,s_;.>q-:_f, _,.;-_

dustries of Great Britain in the same field must be consistent with the terms
arrangementt with IO.
of the arrangemen IG. 16,
IG, in effect,
ellect, has acquired an important veto power
over the operations of its partner. In this way, a few basic industrial alliances
.7,
. _.,_“ ,.-f

A
i
 233
2334 t
' ’ ' 1c; FARBEN
no
can be quickly spread into a complex but consistent network of patent and
process sharing agreements covering a major field in all the important countries
, of the world.
The patent sharing part of the agreement is ,merely a first step. The patent
agreement is based on division of territory. That is, IG may grant use of
certain patents to, say, Standard Oil of New Jersey, but the use of those
i
patents is confined to certain areas, the areas agreed upon by the cartel partners.
And when the world markets are split for patented products, the same split
soon enough applies to other products as well.
With processes and areas shared, the problem of prices is easily handled.
Artificial monopoly has been created and the cartel partners can proceed as
they see fit in their own domains, secure in the understanding that competing
productslcannot
productscannot face them to meet a challenge by lowering prices.
1
'Still
"Still another method of cartel-making involves the setting up of combines
which “. . . control international markets not by contract but by uniting com-
petitors under a common ownership or management.” In other words, competi-
tors from two big countries may agree to go into a third country and to join
hands there by operating through one, jointly owned company. Thus the U. S.
Du Pont company and the British Imperial Chemical Industries operate in
South American countries through the jointly owned Duperial companies.
Within the United States itself Du Pont and a subsidiary of the German IG
sold seed disinfectants through the jointly owned Bayer Semesan Co.
The German Cartel Movement
A German refugee in England, Ernst G. Preuss, wrote a pamphlet to prove
that the real German warmakers were the rulers of heavy industry in the
Ruhr and the Rhineland. He cited a document left to him by his grandfather,
an owner of cotton mills in Silesia who wrote as follows on his retirement
in
in 1884:
1884: *~
“May my great-grandsons when reading the contents of this envelope in
fifty years time consider the authors of the enclosed speeches worthy inmates
of a lunatic asylum, but not, us as unfortunately they actually are, representatives
of the most influential
influential quarters in Germany. God knows why so many of my
former colleagues in industry feel prompted to make use of any lunatic and
I crook who comes their way to propagate their unsavory aims in a most un-
savoury manner, apparently without realizing, intelligent fellows as they
otherwise are, that their efiorts
efforts are bound to lead to internal strife and in
the efid
end to war with other nations which will not in the long run tolerate the
exaggerated ambitions cherished by so ‘many of my colleagues.”
colIeagues.”
The envelope contained newspaper clippings of speeches made in the
Reichstag and Prussian Diet by one Adolf Stoecker, a Lutheran minister who
was a pre-Hitler ultra-nationalist, anti-Semite and bro-dictator.
pro-dictator. Stoecker had
1' been maintained in the Reichstag by the iron and coal men of Westphalia.
During that same decade of the 1880’s‘Lincoln
1880’sALincoln Steffens, then in his mid-
twenties, was a student in Germany. Steffens in his lifetime demonstrated that
he was a mercilessly clear observer. Yet his attention was caught by a different
aspect of German life. He. He‘ wrote about the German merchants in a letter to to his
his
family:
family: ‘_
I “.
“. .. . I have begun my music course. . . It is delightful and educational in in
the truest sense. .‘ . Beer is served and everybody drinks it. ._ ._ It is 5,a beautiful
sight to see the German carry his home around with
gight with him
him and
and never
never partake
partake
of pleasure without sharing it with those at home.
gf

A
/"!I"f""\.
 |

APPENDIX ONE
APPENDIX ONE -- 239
239
“The German
“The German merchant takes aa different
merchant takes different view
view 'of
of life
life from
from an
an American.
American.
He thinks the American very foolish to go on all his life working
Working hard to pile
up money
up money which
which he
he does
does not
not get
get the
the pleasure
pleasure out
out of.
of. .. .. The
The German
German merchant
merchant
has
has 11a finer
finer classical
classical training
training 'and
‘and education,
education, which
which makes
makes him
him need
need the
the
society of men (not dunces) and women, books, pictures, art, and music.
These are cheap. But he needs leisure for enjoyment of these things, and it is
pleasing to see a banker after dinner at night sit, sit_ down and think about a few 6
paintings and then go back to business.” -
Here, then, are the two views of Germanymthe
Germany-—-the apparently irreconcilable
views of a country which on a base of well advertised culture and good cheer
built a structure of scientific barbarism. J
As history has shown, both views of Germany and German businessmen
were
were correct.
correct. Both
Both were
were visible
visible sixty
sixty years
years ago.
ago. In
In spite
spite of
of apparent
apparent contradic-
contradic-
tion,
tion, both
both came
came from
from the
the same
same sources
sources in
in the
the development
development of of the
the German
German nation.
nation.
Germany was
Germany was the
the late-comer.in
late-comer.in thethe industrial
industrial arena.
arena. When
When England
England and
and

A—x, A ._g_c—
France emerged from the Middle Ages as full-fledgedfull-fledged nations, what is now
Germany
Germany was
was still
still aa patchwork
patchwork of
of feudal
feudal principalities.
principalities. During
During the
the seventeenth
seventeenth -3,x._@-¢»_.‘m._

century while commercial empires were being built by the other nations on
the
the Atlantic
Atlantic coast
coast of
of Europe,
Europe, the
the weak
weak andand divided
divided German
German states
states were
were aa
battleground. The industrial revolution was well under way and the Napoleonic

:2». .--m
were
wars over
over before
before the
the first
first signs
signs of
of German
German economic
economic unity
unity came
came with
with the
the
formation of the customs union in 1819. _
<4-.1-_.-._-_a

The
The German
German merchant
merchant ofof the
the nineteenth
nineteenth century
century grew
grew upup in
in aa world
world which
which
had already been staked out by the traders of other nations. He grew up in a
country which had discovered nationalism late and achieved it finally only by
going to war three times in the years between 1864 and 1870. The nationalism _a—.;-_=- 1¢=

13.. r” 11 w: :1-_ =.- 1

which took so long in coming was doubly strong when it arrived.
In the
In the commercial
commercial battle
battle against
against the
the entrenched
entrenched economies,
economies, the
the Germans
Germans
had to compete by all means, fair and foul. There could be no question of
coasting on their gains. Any idea of peaceful settlement of claims, preserving
the status quo,
qua, could only leave them where they had been, on the the outside
Jooking hungrily'1n.
looking hungrily in. German economic policy therefore was etemnlly aggressive
etemally
and strougly
strongly nationalistic.
But while the German businessman started out on the big-time of world

L_"m __._, -—._ :—- .v—_—-.—.—.PI——-.—a——- -:m ‘- .331 r‘t-lniiv -4 ;,r<4y_ .. -q .7”
competition as a poor outsider, he ‘nevertheless had important advantages. As
heinevertheless
the Johnnie-come-lately he could profitprofit by the experience of those who went
before
before him.
him. Business
Business pioneering
pioneering is
is expensive. The first
expensive. The first form
form of
of an
an invention
invention
efficient. Germans starting industrial production could pick
is rarely the most eilicient.
what appeared to be the best equipment and methods. They were not committed
to something out of date by virtue of large investments in obsolete plants.
Thorstein Veblen described the advantages of of the German position in the
following way: '
--.--:r4s.<1/-_‘,-_‘
a1r.m*1_-1»icwv
-=1 l.¢,:_ z;-1 =-r Q.’
“The country being at the same time . . . not committed to antiquated sites
and routes for its industrial plant; the men who exercised the discretion were
free to choose, with an eye'single
eyesingle to the mechanical expediency of locations
for the pursuit of industry. Having no obsolescent equipment and no out-of-
date trade connections to cloud the iesue,
issue, they were also free to take over
l
the processes of the new industry at their best and highest efficiency,
eliiciency, rather
rather
than content themselves with compromises between the best equipment known
and what used to be the best a few years or a few decades ago. So also
also 1n
in the
financiering of the new ventures. . .” - ,_ P_,.‘ -_1‘. ,_.

k._.-_. __._._ _
 ——--- — --—-- _---- - - - -----T----__ _-- .- -- __ _

240
240 '' IG
IG FARBEN
FARBEN
Even
Even the culture which
the culture which tourists
tourists found
found soso pleasant
pleasant in in the
the Germany
Germany of of the
the
late nineteenth
late nineteenth century
century paid
paid off
off in
in business
business advantages.
advantages. TheThe great
great universities
universities ofof
, Germany were
Germany were hoary
hoary with tradition. There
with tradition. There were
were not many of
not many of them,
them, byby American
American
standards. They
standards. They were
were not,
not, and
and never
never became,
became, openopen toto all the people.
all the people. But
But the
the _
sons of
sons of prosperous
prosperous merchant
merchant families
families went
went toto them
them and
and acquired
acquired the the best
best of
of
scientific training along with beer, good music, and saber
scientific training along with beer, good music, and saber cuts. As a result, cuts. As a result,
German industry
German industry acquired
acquired leaders
leaders who
who were
were scientists
scientists asas well
well asas managers,
managers,
technicians as
technicians as well
well asas entrepreneurs.
entrepreneurs. This
This advantage lasted into
advantage lasted into the
the period
period
between the
between the two
two world
world warswars and
and was
was oneone of
of the
the secrets
secrets ofof German
German success
success
in the
in the big
big international poker game
international poker game ofof cartel
cartel diplomacy.
diplomacy.
The
The beginning
beginning of of the
the German
German cartel
cartel movement
movement took took place
place immediately
immediately
after
after thethe Franco-Pmssian
Franco-Prussian War. War. ByBy this
this war
war thethe unification
unification of of Germany
Germany was was
completed and
completed and the
the stage
stage waswas set
set for both rampant
for both rampant nationalism
nationalism and and some
some new
new
tricks in aggressive business which the rest of the world had not yet seen.
In the
In the early
early stages,
stages, there
there was
was no
no chance
chance for
for Germans
Germans to
to set
set about
about captur-
captur-
ing foreign
ing foreign markets
markets from
from the
the comfortable
comfortable business
business community
community of of England.
England.
The Germans
The Germans had had their
their hands
hands full
full taking
taking care
care of
of their
their own
own domestic
domestic markets
markets
in the
in the face
face of
of foreign
foreign competition.
competition. What
What was
was more
more natural
natural than
than for
for the
the Ger-
Ger-
mans in
mans in different
different industries
industries to
to pool
pool the
the home
home market,
market, fixing
fixing prices
prices and
and pro-
pro-
duction quotas,
duction quotas, toto make
make a a common
common front
front against
against all
all outsiders?
outsiders? The
The cartel
cartel grew
grew
/ up in
up in aa cordial
cordial atmosphere.
atmosphere. The
The German
German monopolist
monopolist on on the
the way
way upup was
was luckier
luckier
than his
than his American
American counterpart.
connterpart. HeHe did
did not
not have
have toto worry
worry about
about aa Populist
Populist
movement. He
movement. He had
had no
no muckrakers
muckrakers to to contend
contend with,
with, no
no anti-trust
anti-trust laws
laws to
to avoid.
avoid.
He was
He was building
building greater
greater (and
(and more
more profitable)
profitable) concerns
concerns forfor the
the good
good ofof the
the
new empire.
More than
More than fiftyfifty years
years later same attitude
the same
later the prevailed. The
attitude prevailed. The German
German
super-patriot in
cartelist was still the super-patriot in a nation of
a nation super-patriots. In
of super-patriots. 1928,
In 1928,
British and
when British
time when
at a time corporations were
American corporations
and American making cartel
were making bargains
cartel bargains
in the name of international business regard for
without regard
business without national interest,
for national interest,
the German
the German Osram03mm Company
Company stated:stated:
“An international
“An international cartel
cartel has
has nono right
right ofof existence
existence andand a a German
German business-
business-
man has no right right to to become member of
become aa member of such if this
cartel if
such aa cartel is acting
cartel is
this cartel acting
against the interests of
common interests
the common Germany.” ''
of Germany.”
By way of here is
contrast, here
of contrast, statement made
is aa statement made in April, 1939,
in April, the chair-
by the
1939, by chair-
man of
man of the
the board
board of of the
the U. U. S.5. General
General Motors
Motors Coporation,
Coporation, referring
referring to to any
any
American firm
American firm operating
operating abroad:
abroad:
“It should
“It should attempt
attempt to to attune
attune itself
itself to
to thethe general
general business
business of of the
the com-
com-
munity; makemake itself
itself part
part of
of the
the same;
same; .
. .
. .
. I
I believe
believe further,
further, that
that that
that should
should
be its position, even if, as is likely likely to happen and
to happen particularly as
and particularly as was the case
was the case
during the
during the past
past few few years,
years, thethe management
management of of thethe Corporation
Corporation mightmight not not
wholly agree with many things that are done in certain of these countries.” countries."
With a rapid increase in productive capacity, under pressure of a tight
. home market and few foreign markets, concentration of German industry moved
forward in the years
in the leading up
years leading up to World War
to World War I, opposition or
without opposition
I, without or
interruption. The
interruption. The movement
movement took took two
two main
main lines:
lines: formation
formation of of cartel
cartel agree-
agree-
;
v ments among
ments among independent
independent producers,
producers, firstfirst onon aa regional
regional basis,
basis, and
and after
after 1900
1900
' on a
on a nation-wide
nation-wide scale;
scale; and,
and, particularly
particularly in in prosperous
prosperous years
years ofof industrial
industrial ex- ex-
pansion, outright consolidation of independent companies into single combines
with common
with common ownership
ownership and and management.
management.
Some writers have made much of the differences between the two processes
of cartel building and outright mergers, pointing out that in Germany the

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ONE i'
APPENDIX one ' 241
241
the years
in the
cartels grew fastest in depression when
of depression
years of was necessary
it was
when it divide
to divide
necessary to
most consolidations
and most
the limited market and occurred in
consolidatious occurred prosperous years
in prosperous when
years when
scale production
larger scale
the advantages of larger be used
could be
production could a booming
in a
used in market.
booming market.
Of course,
Of there were
course, there But the
differences. But
were differences. main purpose
the main and the
purpose and effect
main effect
the main
were the
were same: Bigger
the same: bigger sections
and bigger
Bigger and of the economy came under
sections of the economy came under control control
of fewer
of and fewer
fewer and people. This
fewer people. was seen
This was most clearly
seen most in the
clearly in case of
the case the
of the
There the
industry. There
German chemical industry. producers were
main producers
the main were first organized
first organized
into two
into giant cartels.
two giant Then the
cartels. Then two were
the two combined to
were combined make one
to make cartel
giant cartel
one giant
division of markets,
with division of markets, production
production quotas,
quotas, and
and sharing
sharing of
of profits
profits but
but with
with
ownership of
ownership of individual independent. And
still independent.
plants still
individual plants finally the over-all cartel
And finally the over-all cartel
was replaced by one huge company in
huge company all the
which all
in which swallowed up,
were swallowed
others were
the others up,
the IG
the Farbenindustrie A.G.
IG Farbenindustrie A.G.
there was
too there
In the United States too movement for
was aa movement formation of
the formation
for the great
of great
trusts and
trusts monopolies in
and monopolies years of the nineteenth century. But there
closing years of the nineteenth century. But there
the closing
in the
was also a
was also countermovement, aa major
a countermovement, major popular against the
protest against
popular protest which
trusts which
the trusts
in'Congressuby the
reflected in'Congress--by
was reflected
was Sherman Anti-Trust
the Sherman Act; in
Anti-Trust Act; in the press—by the
the press--by the
writings of the
writings of Tarbell, Steflens
muckrakers, Tarbell,
the muckrakers, and the
Steffens and and in
rest; and
the rest; executive
in executive
action-by Theodore Roosevelt's
action—by Roosevelt’s trust-busting.
In Germany there
In Germany there was was no opposition. The
such opposition.
no such recently acquired
The recently national
acquired national
unification was
unification with the
coupled with
was coupled discipline of
rigid discipline
the rigid the only
of the dissipated
reCently dissipated
only recently
feudalism. Duty
feudalism. to the
Duty to state was
new state
the new preached as
was preached religion. To
as religion. To muscle into
muscle into
already world markets
allocated world
already allocated required unified
markets required there was
action: there
unified action: unified
was unified
action. ‘.
The courts from
German courts
The German beginning supported
the beginning
from the the cartel
supported the movement.
cartel movement.
For example, in the case of the Bavarian Kiln Association, the Supreme Court of
Bavaria ruled in
Bavaria ruled 1888 that
in 1888 good and
was aa good
it was
that it proper idea
and proper businessmen to
for businessmen
idea for to
band together
band together and thus aid
and thus depression and
from depression
recovery from
aid recovery promote the
and promote national
the national
welfare. The
welfare. said: “Since
court said:
The court individual producers
the individual
“Since the are powerless
producers are to
powerless to
restore the proper
restore the supply and
between supply
balance between
proper balance by limiting
demand by
and demand own
their own
limiting their
output, the only
output, the way to
only way suchlresult is
about suclrresult
bring about
to bring them to
for them
is for to combine and
combine and
agree on such limitation."
A few years later, in a wood-pulp case of the 1890’s, the high court of
Saxony went the
Saxony went whole way
the whole in making
way in case for
making aa case “When the
prices: “When
high prices:
for high prices
the prices
of the products of an industry fall to an unreasonably low level and the profit-
of the products of an industry fall to an unreasonably low level and the profit-
able operation of the industry is thereby endangered or made impossible,
the resulting crisis is detrimental not only to the individuals affected, but also
to the national economy as a whole, and it is, therefore, to the interest of
society that prices should not be constant at an unreasonably low level." _.
By the time of World War I, the cartels were ready to do their service
‘Fatherland. A German defender of cartels, R. Liefmann, wrote: “. . . the
for the Fatherland.
cartels . . . were put to an extraordinary test by the [first World] War. The
fact that the firms were used to such organizations and their adaptability and
capacity for co-operation, proved a great blessing to the country. The assertion
of our
of our enemies
enemies that
that we
we owed
owed this merely to our military discipline is quite
untrue; it was not a case of arrangement in organizations created by the State,
hut of
but of co-operation within voluntary organizations created by themselves, which
which
merely had to be adapted to the new needs arising from the War."
War.”
The cartels were still better able to serve the Reich by the time of
World
War II.
. Only a few hesitating gestures toward control of cartels were ever made
m Germany.
m Germany. In 1903 the Imperial government ordered an
an investigation
investigation into
into
 -~-----.-
r
I .

242 [G FARBEN
cartels, but
cartels, the survey
but the did not
survey did lead to
not lead action or
to action even to
or even scandal. A
to scandal. similar
A similar
investigation was
investigation made in
was made Austria in
in Austria in 1912. The closest approach to cartel
1912. The closest approach to cartel control control
came in
came in 1923.
1923. Germany
Germany had had then
then experienced
experienced ninenine years
years of steadilyw-and, at
of steadily——-and, at
the end, violently—-rising
the end, violently—rising prices. Since aa main
prices. Since purpose of
main purpose is to
cartels is
of cartels to prevent
prevent
any drop in
any drop in prices, the bottom
prices, the bottom seemed
seemed to to be cut out
be cut from beneath
out from beneath thethe cartels.
cartels.
Many reams of
Many reams paper have
of paper run through
have run through the presses burdened
the presses burdened with theo-
with theo-
retical analysis
retical analysis of
of what during the
happened during
what happened great German
the great But to
inflation. But
German inflation. to the
the
ordinary people
ordinary it did
people it seem so
not seem
did not so diilicult
diificult toto understand 'perhaps in
(and perhaps
understand (and truth
in truth
it was
it was not really so
not really so‘ diflicult): alone of
almost alone
difficult): almost of all groups in
all groups in Germany
Germany the the
major profited by
industrialists profited
major industrialists by the
the inflation
inflation and profited handsomely.
and profited Control
handsomely. Control
of monopoly acquired a new popularity. -
In November of 1923, with the inflation at its final peak, a cartel law was
established by decree of the German government. The law set up-a cartel court
with power to
with power to determine when the
determine when actions of
the actions cartels went
of cartels went against the public
against the public
good and in such cases to invalidate contracts, but it did not call for abolition
\
\ of cartel system.
the cartel
of the system. ItsIts preamble
preamble specifically disavowed such
specifically disavowed intention. It
such intention. It
was merely designed to regulate some cartel activities, in cases where the public
welfare was
welfare was involved.
involved.
Even within
Even this limited
within this framework, the
limited framework, the lawlaw was
was never
never elleetive. Cartels
effective. Cartels
in Germany continued to grow in size, number, and importance. Having gained
a grip
a grip onon the parts of
main parts
the main of the economy, the
home economy,
the home the German moved
cartels moved
German cartels
out, and, in
out, and, the period
in the period between the two
between the two world
world wars, became the
wars, became movers
prime movers
the prime
in international cartels
in international which took
cartels which took in producers all
main producers
in main the world.
over the
all over world. AsAs
has been
has the phenomenal
shown, the
been shown, network of
phenomenal network of cartel tie-ups created
cartel tie-ups created onon aa global
global
scale by
scale by IG Farben was
IG Farben built almost
was built entirely in
almost entirely in the
the period after the
period after cartel law
the cartel law
was passed.
was passed. ''
Hitler’s coming
With Hitler's coming. to power, the German cartel movement reached its
final high
final point. There
high point. There hadhad been cartels in
compulsory cartels
been compulsory potash since
in potash since 1910,
1910, inin
I.
coal since 1919. Now cartels became compulsory for the whole economy. In
July, 1933,
July, 1933, the
the cartel
cartel court was abolished
court was abolished and cartels became
and cartels compulsory. The
became compulsory. The
State now had the power to force outsiders into “voluntary” cartels and to set
N up new ones. The Minister of Economics could control the size of an industry
by refusing to sanction expansion. True, major cartel functions like price
fixing were in the hands of government but this did not materially alter the
situation: representatives of leading concerns acted as efiicienlly efficiently within
the Nazi bureaucracy as they had on their own boards of directors. In other
words, by placing their power in the hands of the State, the cartelists cnrtelists received
it back again, doubled and tripled in strength by the scientific barbarism of
the fascists. For their part, the Nazis received a war economy ready réady made.
Cartels Throughout Europe
_. ln_194~0,
In 1940, Nazi conquest’
conquest insured cartelization of Europe with all controls
firmly in German hands. But much more than a beginning had already been
made. The assault of the German cartels in foreign trade during the l920’s 1920’s
and 30’s was too severe to be he withstood by individual concerns. Cartelization
had spread rapidly throughout all of Western Europe even in peacetime.
In Austria the progress of big combinations in industry paralleled that that
. in
in Germany
Germany though on a smaller scale. Belgium too was closely webbed with with
cartels find
cartels and there too the links with German cartels cartels- dated from
from before
before World
World
War I. There were Were literally hundreds of industries bound together by by cartels
cartels
in all the principal countries of Europe from Norway to Greece.
in Greece. In Hungary
In Hungary
there were cartels in coal, iron, chemicals, petroleum, and and dozens
dozens of of other
other

-5“ ~
""~<. .
' I
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A 1
I"-;§'“‘\._;__
KI " -M. 1,? I
,\/
1’ I

APPENDIX ONE
APPENDIX ONE ’’ ' 243
2-43
fields; Switzerland—silk, cotton,
in Switzerland—sillc, chemicals, dairy
corton, chemicals, products, watches,
dairy products, elec-
watches, elec-
tricity,
tricity, and in Italy—iron,
others; in
and others; Italy—iron, sugar, paper, marble,
sugar, paper, chemicals;
textiles, chemicals;
marble, textiles,
Spain, Seandinava
the Scandinavainin countries,
countries, Bulgaria,
Bulgaria, Czechoslova kia,
Czechoslovakia, Poland,
Poland, Greece,
Greece,
Portugal—major industries
Rournania, P0rtugal—major
Rournania, all operated
in all
industries in the medium
through the
operated through of
medium of
on the
cartels on
cartels the German model.
German model.
France is
France is aa clear case of
clear case effects of
the effects
of the German pressure.
of German pressure. HereHere therethere waswas f
a long tradition against against collusive combination in
collusive combination business. The
in business. Chapellicr
The Chapellier
Act of 1791 and and the Penal Code
the Penal Code of of 1810 against trade.
coalitions against
prohibited coalitions
1810 prohibited trade.
The law was modified somewhat in the 1880’s but not until
somewhat in the 1880’s but not until 1926 was a statute 1926 was a statute
passed in
passed which commercial
in which combinations were
commercial combinations recognized as
were recognized legal- BY
as legal‘ 1935.
BY 1935,
pressure of
the pressure
the of the traders was
German traders
the German was soso great that in
great that compulsory
retaliation aa compulsory
in retaliation
cartelization bill was
cartelization written into
was written into the French law.
the French law. The The law law of provided
1935 provided
of 1935
that if an employers’ group two-thirds of
covered two-thirds
group covered of all firms and
all firms three-_fourths
and three-fourths
all sales
of all for a
sales for industry, and
particular industry,
a particular and if group had
that group
if that made an
had made agreement
an agreement
regulating trade, the agreement could
the agreement could be binding on all
made binding on all concerns in
he made concerns the
in the
industry by government decree.
The reasons for the French law
the French law of 1935 were
of 1935 stated in
clearly stated
were clearly in an accom-
an accom-
panying
panying brief.
brief. It
It was
was necessary
necessary for
for French
French industry
industry to
to protect
protect itself
itself from
from the
the
risks of
risks cutting; it
price cutting;
of price necessary to curb “excessive”
was necessary to curb “excessive” competition; and
it was competition ; and
above all, it was necessarynecessary for France to
for France protect itself
to protect against the
itself against cartels of
the cartels of
countries. _,
other countries.
other
The French cartels set set upup thus, entered into
defensively, entered
thus, defensively, into binding agreements
binding agreements
with the
with the German
German cartelists.
cartelists. Within
Within five
five years
years after
after the
the passage
passage of
of the
the compul-
compul-
sory cartelization
sory n law.it was learned that the
cartelizatio law,it was learned that the French'people might betterFren'ch‘peo ple might better
looked for
have looked
have for other defenses. In
other defenses. six tragic
In six weeks in 1940
tragic weeks in 1940 all of France all of France
over-run as
was over-run
was as the demonstrated what
Blitzkrieg demonstrated
the Blitzkrieg what it could do
it could when doors
do when doors werewere
opened for for it by high-level
it by treachery. Top
high-level treachery. Top rank cartelists as
rank cartelists well as
as well ossified
as ossified
generals
generals were
were responsible
responsible for
for the
the betrayal
betrayal of
of France.
France. It
It was
was a
a peculiarly
peculiarly
hitter twist of historical irony
bitter that the
irony that industrial rulers
same industrial
the same rulers of France who
of France who
chose to join hands with the German cartels
the German rather than oppose
cartels rather than oppose them soon them soon
found themselves faced with loss loss of control over
of control over theirtheir own enterprises and
own enterprises and
were swallowed up by the Germans.
The same
The operated even
pressure operated
same pressure even in Great Britain,
in Great traditional home
Britain, traditional home of of
laissez ftzire.
laissez Britain had
Great Britain
faire. Great had beenbeen the one country
the one country in in the world of
the world which
of which
it could be said without qualification’ qualification that freedom of
that freedom of the freedom of
seas, freedom
the seas, of
trade, were
trade, profitable policies.
were profitable policies. But But as world distances
as world distances shrank shrank and markets
and markets
Smaller and smaller compared with the growing capacity of factories
looked smaller
of all the nations, Britain, too, ‘drifted 'drifted slowly out of the old free trade policy. 'policy.
The change- in Great Britain came slowly. Full-fledged
Tllfl °11H!1g6' in Great Britain came slowly. Full-fledged, large scale cartels , large scale cartels
grew up
grew alongside of
up alongside individualis
oi individualistically tically operated industries.
Operated industries. The British
The British
chemical industry closely paralleled development development of the German IG Farben;
organizers of
organizers the British
of the Imperial Chemical
British Imperial Industries, Sir
Chemical Industries, Alfred Mond
Sir Alfred Mond and and
Sir Harry MacGowan, took their places with the world’s leading cartelists.
By March of 1939, the Economist of London editorialized editorialized as follows:
“An entirely novel form of industrial organization organization is creeping upon
is creeping upon us un-
us un-
awares. We-areWeare witnessing the gradual cartelization cartelization of England.”
After pointing out that for decades there had been only gradual relaxation
of the principles of absolute free trade and that there had been stubbornly
continued opposition to any kind of govemmental governmental interference in business
affairs, the Economist went on to say:
“We have never in this country followed the American worship of compe-
,i#

244
244 1J .. IG FARBEN
IG FARBEN
enacting anti-trust
of enacting
tition to the length of legislation. But
anti-trust legislation. there has
But there always
has always
been a
been a doctrine of the
doctrine of against combinations
law against
common law
the common in restraint
combinations in trade.
of trade,
restraint of
reinforced by
reinforced general belief
by aa general that such
belief that combinations tend
such combinations tend to anti-social
be anti-social
to be
in their
in effects. The
their effects. belief has
The belief changed and
has changed and the common law
the common doctrine is
law doctrine in
is in
disuse. What is
disuse. What Government, in
the Government,
more, the
is more, recent years,
in recent from reprobating
far from
years, far reprohating
the cohesive
the organization of
cohesive organization encouraged it.
has encouraged
industries, has
of industries, steel and
Both steel
it. Both coal
and coal
had almost to
had almost to be forced to
be forced combine. .. .. The
to combine. that is
price that
The price fixed is
not fixed
is not becoming
is becoming
and the
rarity, and
aa rarity, husinessman’s theme
the businessman’s song has
theme song changed {rem
has changed Free Private
from Free Private
Enterprise to
Enterprise to the Self-Government of
the Self-Government Industry.”
of Industry."
That the
That the Economist itself accepted
Economist itself the new
accepted the principles of
new principles cartels at
of cartels least
at least
with equanimity was
with equanimity indicated in
was indicated article:
another article:
in another
“Few nowadays are
people nowadays
“Few people opposed in
are opposed Economist is
principIe—the Economist
in principIe—the cer-
is cer-
tainly not—to the
tainly not—to the cooperative adjustment of
cooperative adjustment of the supplies of
the supplies of raw materials to
raw materials to
the demand for
the demand them at
for them at a yielding a
price yielding
a price reasonable profit
a reasonable profit to eficient
to eficient
producers.”
producers.”
The language of
The language certel-building is
of cartel-building full of
is full of such phrases as
such phrases “cooperative
as “cooperative
adjustments” and
adjustments” “prices yielding
and “prices profits.”
reasonable profits.”
yielding reasonable
Germany had
Germany had been the pace
been the setter in
pace setter in the making of
the making of cartels. England,
cartels. England,
having first
having the whole
set the
first set pattern of
whole pattern development, now
industrial development,
of industrial Went to
now went the
to the
Johnnie-come-lately for
Johnnie-come-lately guidance. The
for guidance. The webweb of British cartels
of British depended on
cartels depended on
inter-connections with
inter-connections the German
with the cartels.
German cartels.
Cartel_ Appeasement
Cartel
From the Treaty of Versailles to 1933, statements by German public fig-
ures full of
were full
ures were of veiled threats about
veiled threats happen to
would happen
what would
about what to the peace of
the peace the
of the
world if Germany were not given back her rightful place (complete with
colonies). After 1933 and the coming of Hitler to power, the threats were
no longer veiled.
At the same time also began the obscene spectacle of appeasement. The
peak of
peak appeasement was
of appeasement was reached only five
reached only when Neville
later when
years later
five years Chamberlain
Neville Chamberlain
went by plane rather than by foot through the snow but the penance was heart-
felt. lle
felt. gave Hitler
He gave what he
Hitler what to bring
needed to
he needed war on
bring war world, he
the world,
on the sold
he sold
the free Czech nation down the river into slavery, and he alighted from his
airplane wavingxa piece
airplane wavingia paper which
of paper
piece of “peace in
represented “peace
which represented in our times.”
our times.”
Munich, of course, was only a high point of appeasement. The process
had begun with the Anglo-German Naval Treaty of 1935 and the German i
military reoccupation
military reoccupation oi Rhineland in
the Rhineland
of the And it
1936. And
in 1936. conducted by
was conducted
it was eco-
by eco-
nomic means
nomic fully as
means fully much as
as much politics. The
through politics.
as through The _only was
difference was
.only difference
that economic appeasement took the form of private understandings, at the level
that economic appeasement took the form of private understandings, at the level t

of international statescraft, among British and German cartelists.

The economic understandings did finally break out into the open. While
Chamberlain was in Munich, preliminary maneuvers were going on between
the two top trade associations of England and Germany, the Federation of
British Industries and the Reichsgruppe Industrie. In March of 1939, delegates
from the F.B.I. did their penance by going, not to Munich, but to Duesseldorf.
There they conferred intensively with the delegates of the Reichsgruppe Reiehsgruppe In-
dustrie.
The German
The German press was full of the concessions which had to be obtained
if war was to be avoided. Typical was- the blended tone of self-pity and
Deutsche Allgemeinc
truculence in an article in the Dcutsehe Allgemeine Zeitung:
“. . . The manner in which thissituation
thissituntion (Germany’s economic dith-

!
_“.
culties) ls
cullleel is regarded
regarded abroad
abroad will show which are the spirits of peace and which

1
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in 1m
APPENDIX ONE
APPENDIX ONE 245
245
the ones
the ones who
who desire_the
desirelthe ruin
ruin of
of Europe.
Europe. Those who
Those who argue
argue that
that it
it is
is good
good
that
that the
the disturbing
disturbing Germans
Germans have
have food difficulties and
food difficulties and wish
wish to
to let
let them
them stew
stew
in
in their
their own
own trouble
trouble until
until they
they become
become politically
politically unimportant
unimportant andand ready
ready to to
sell
sell their
their rights
rights as
as aa great
great Power
Power and
and Kultur
Kultur Nation
Nation for
for aa mess
mess of
of lentils——
lentils-—
those
those who
who argue
argue thus
thus come
come in in the
the category
category of of war
war agitators
agitators and
and destroyers
destroyers
of
of European
European order.”
order.” __
The
The delegates
delegates ofof the
the Federation
Federation of of British
British Industry
Industry showed
showed themselves
themselves
to
to bebe respecters
respecters ofof European.
European‘ order,
order, German-style.
German-style. They They reached
reached aa broad
broad
understanding
understanding with with the
the G'ennans
Giannans which
which called
called for
for aa series
series ofof agreements
agreements be- be-
tween
tween thethe industries
industries ofof the
the two
two nations,
nations, under
under gOVernment
government sponsorship
sponsorship if if
need be.
In a world full of discord, agreement between two parties is likely to be
aimed
aimed against
against aa third.
third. The
The political
political pact
pact of
of Munich
Munich waswas quite
quite openly
openly recog-
recog-
nized
nized toto hem
have been
been aimed
aimed eastward,
eastward, against
against the
the Soviet
Soviet Union.
Union. The The economic
economic
pact
pact of
of Duesseldorf
Duesseldorf contained
contained provisions
provisions which
which could
could only
only have
have been
been aimed
aimed
against
against the
the United
United States.
States. Paragraph
Paragraph 88 of
of the
the declaration
declaration stated:
stated:
“The
“The two
two organizations
organizations realize
realize that
that in
in certain
certain cases
cases the
the advantages
advantages of
of
agreement
agreement .. .. .. may
may he
be nullified
nullified by
by competition
competition from
from the
the industry
industry in
in some
some
other
other country
country that
that refuses
refuses to
to become
become aa party
party to
to the
the agreement.
agreement. In
In such
such
circumstances
circumstances it
it may
may be
be necessary
necessary for
for the
the organizations
organizations to
to obtain
obtain the
the help
help
of
of their
their governments
governments and
and the
the two
two organizations
organizations agree
agree to
to collaborate
collaborate in
in seeking
seeking
that help.” The United States, of course, was the only nation able to offer
that help.” The United States, of course, was the only nation able to offer
the kind of competition which would hhve have sent the Federation of British
Industry and the Reichsgruppe Industrie running to their governments for
help.
The Duesseldorf agreement was stilI-born.
still-born. While the preliminary negoti-
ations were going on, there was also great activity in the officesollices of the High
Command of the German Army. Last touches of staff work were being done
on the operation which turned the Wehrmacht loose against a Czechoslovakia
which
which hadhad been
been crippled,
crippled, but
but supposedly
supposedly defended,
defended, by
by the
the Munich
Munich agree-
agree-
ment, The Duesseldorf meeting was held on March 15 and 16, 1939. On exactly
the same days, the Wehrmacht was marching into Czechoslovakia.
Even
Even then
then the
the Duesseldorf
Duesseldorf agreement
agreement was
was voided
voided with
with regrets.
regrets. A
A spokes-
spokes-
man
man for
for the
the Federation
Federation of
of British
British Industry
Industry regarded
regarded the
the suspension
suspension as
as aa mere
mere
postponement and described the'declaration
thedeclaration as “a valuable piece of work.”
The same London Economist which a few weeks before had talked about
co-operative adjustments of supplies of raw materials now faced up to the
facts and pointed out that “.-. . Of 0f condemnation of German methods the
agreement is entirely innocent. . . A number of changes in policies hitherto
pursued are approved in the agreement. But without exception they are all
changes not in German joutJmt in British policies. . . Instead of securing from
the Germans an abandonment of the unfair methods, the British negotiators
look, stock and barrel.” And the article winds up
seem to have swallowed them, lock,
with as neat a summary of appeasement as has been written: “(The) substance
is this:
thifit Provided Germany does not encroach on British trade preserves or
reduce the profit margin of British exporting industries, Great Britain will
not concern herself with what Germany does to other people's
people’s trade or by
what means.” '

What the Cartels Did—And

Dt'cl—/Ind Why
On the eve of World War II cartels were well rooted in all the major
 246
246 .. .. ,, IG FARBEN
IG FARBEN
economic
economic powers
powers of
of the
the capitalist
capitalist world.
world. In
In most
most of
of ti1e1impbrtant,
theiimportant, large-scale
large-scale
industries, the
industries, the lines
lines of
of cartel
cartel connection
connection had
had crossed
crossed national
national boundaries
boundaries toto
make
make up
up international networks.
international networks.
In the
In the chemical
chemical industry,
industry, the web of
the web of cartels
cartels dominated
dominated the
the production
production of
of
the entire world—with IG Farben sitting at the center.
center.
The international
The international steel
steel cartel
cartel followed
followed the
the same
same pattern
pattern as
as in
in the
the chemical
chemical
industry.
industry. The
The producers
producers of of Western
Western Europe
Europe were
were first
first organized
organized under
under German
German
leadership. In 1935 the British steelmakers entered the European steel cartel.
And
And inin 1938
1938 agreement
agreement was was reached
reached with
with American
American producers.
producers.
The main light metals, aluminum and magnesium, were also cartelized.
Similarly,
Similarly, the
the main
main sources
sources ofof rubber
rubber inin the
the Far
Far East
East were
were subject
subject to
to rigid
rigid
control
control both
both as
as to
to production
production andand prices
prices under
under cartel
cartel agreement.
agreement.
The immediate effects of cartels were easily seen. Prices were kept high.
A
A representative
representative of of the
the Steel
Steel Export
Export Association
Association ofof America
America testified
testified before
before
the TNEC that “. . . under the cartels the prices were good, otherwise there
wouldn’t
wouldn’t be be any
any good
good reason
reason to to have
have aa cartel.”
cartel.” _
As
As aa German
German business
business leader
leader commented
commented forty
forty years
years ago,
ago, no
no one
one gains
gains from
from
low
low prices
prices except
except the
the consumers.
consumers. He He might
might have
have added:
added: thethe only
only people
people who
who
benefit
benefit from
from oxygen
oxygen are
are those
those who
who breathe.
breathe. --
0 _ The
The U. U. S.
S. Department
Department of of JJustice
ustice has'
has established
established a a. clear-cut
clear-cut record
record on
on the
the
way
way in
in which
which cartels
cartels maintained
maintained fantastic
fantastic prices.
prices. The
The case
case of
of tungsten
tungsten carbide
carbide
is
is in
in point.
point. In
In 1927
1927 the
the price
price in
in the
the United
United States
States was
was $50
$50 per
per pound.
pound. Follow-
Follow-
ing a cartel agreement between General Electric and Krupp, the U. S. price
during
during the
the 1930’s
1930’s ranged
ranged between
between $225
$225 and
and $435.1n April 1942,
$4-35. In April I942, after
after an
an
. indictment
indictment under
under the
the anti-trust
anti-trust laws,
laws, the
the price,
price, as
as if
if by
by magic, came down
magiE,'“éame down
, again to a range of $27 to $45
$4-5 per pound. _
' There are many other instances of prices held at sky-high levels by
cartel action, but they tell only part of the story. The Assistant Attorney
General, Wendell Berge, summarized some of the. the other cartel eflects
eliects as
follows: '
“. . . cartels . . . have been able by clandestine means to impress their
sinister mark upon our economy. In mobilizing for war, we discovered almost
too late, that they were responsible for shortage after shortage of vital ma-
terials. The fact is that they have retarded
retarded technological advance and the
introduction of improved devices and products, whenever such developments
seemed to threaten their vested interests despite the fact that thereby national
security might be jeopardized. They have, indeed, obstructed and in no small
measure thwarted the declared foreign 'policies
policies of the American government,
placing their own business interests above the public interests.
“. . . In Germany, Kaiserism and later Nazism received enormous impetus,
indeed decisive support, from the regimented, cartelized structure of the national
economy.”
Cartels also served as the perfect transmission belt for espionage. HereHere
too
too the
the record of the Department of Justice provides a long list of cases. The
American
American Bosch
Bosch Company provided the Bosch Company of Germany with
information, developed
information, developed in
in the
the laboratories
laboratories of
of the
the U.
U. S.
S. Navy
Navy and
and the
the Army
Army
Signal Corps, concerning shortwave and high frequency radio which later was
the basis of communications in the German Army. For at least fifteen years,
the U
U. S. firm
firm of Bausch and Lomb sent to its cartel partner, the German Zeiss
Company,
C0I11P""Y, information of the greatest importance concerning fire control in- in-
strumenls, range-finders, periscopes, telescopes, and the like. As for IG Farben,
struments, I

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APPENDIX ONE ‘ 247

its contribution to the art of espionage has already been told in more detail.
An important question to answer is: why were theIGcrmans
the'Germans able to domi-
nate the cartels they entered and twist them to their own purposes?
The German cartelists received some help on ideological grounds. Hitler
Ilitler
promised an end to the menace of Soviet Russia; his game
cause was certainly popular
enough with many of Germany’s cartel partners. But ideologies are likely to
wilt in the presence of hard cash. And the men with whom the American
and British cartelists did business, the leaders of IO
IG Farhen
Farben for example or
A.E.G. or Siemens-Halske or Krupp, did not look like crusaders; in fact, they
looked suspiciously like any other international businessmen. '
Far more important was the fact that the Germans provided technological
leadership. The German industrialists started without assured markets or sales
on a comfortable scale. They were always therefore on the outlook for new
processes
proce sses and methods which would give them an edge over established con-
cerns of other nations. As a result, a special premium attached to German
technique.
technique. The
The German
German cartelists
cartelists were
were able
able to
to swap
swap patents
patents and
and knowledge
knowledge
for shares in markets.
The Germans could dominate cartels by making still other uses of their
originally
originally disadvantaged position. Tactically, they could maneuver against an
adversary’s
adversary’s established
established field
field and
and then,
then, as
as .Ia
.\a price
price for
for withdrawing,
withdrawing, receive
receive
concessions in other fields. This was the basis of the first agreement between
I IG Farben and Standard Oil of New Jersey: it has already been shown that
IG used the Bergius process for deriving fuel oils from coal as a threat against
the established petroleum business, and, in return for staying out of the oil
business everywhere except in Germany, exacted from Standard an agreement
to stay out of the chemical business everywhere, including the United States.
Greater aggressiveness, also deriving from greater initial need and a
generally faster rate of development, allowed the Germans to place themselves
at the center of international business negotiations and build up combination
Farhen illustrates the whole point. Working
plays. Here, too, the history of IG Farben
from one country to the next, IG forced the European chemical producers into
a cartel bloc. Having organized a European alliance, they were able to force
the British Imperial Chemical Industries into line. With the Continent and
them,‘IG could then finally come to terms, es-
Great Britain lined up with them,*IG
sentially their own terms, even with the big American producers. I-IereHere as in
most of their dealings, the traders presented a solid national front to start with
and, having less to look forward to in immediate returns, kept their eyes on
the long range objectives. It was seen that 10
IG Farben, for example, reinserted
itself into American chemical production after World War I by offering a
better than even break in profits in return for a better than even share in
control of production and market. . - i'
The case of Germany illustrates as perfectly as can be the emptiness of
the hope that through cartels international business affairs can be stabilized
and the struggles for world markets mediated. It is hard to visualize now,
now, but
but
in the period between World Wars I and II aa main theoretical defense
main theoretical defense ofof the
the
cartel was that through it the chronic convulsions of world capitalism could
be assuaged. And there were many convincing points in in the
the argument.
argument. Big
Big
Business
Business is indeed international. Its leaders are internationalists in a true ‘sense.
\sense.
The top-flight officials
ofiicials of the IG
10 who were arrested for interrogation by by the
the
U. S. occupying forces would have looked at home in
in better
better clubs
clubs and
and hotels
hotels in
in
any city in the world. Many of them in fact were well known in
well known in many world
many world
 248
248 1G FARBEN
IG FARBEN
capitals. Most of
capitals. Most had excellent
them had
of them command of
excellent command and
English and
of English l1ad traveled
had traveled
in the
in States and‘Latin
United States
the United America. Those of them who had
andiLatin America. Those of them who had found them-
found them-
selves at the
selves at war’s end
the war’s in Berlin
end in or eastern
Berlin or eastern Germany made hurried
Germany made to
trips to
hurried trips
western Germany in
western Germany evident hope
the evident
in the hope of of finding themselves among
finding themselves among old friends.
old friends.
Yet even though international business is conducted by respectable men
though international business is conducted by respectable men
who meet on
who meet friendly terms
on friendly terms on the same
on the and’talk the
plane antl’talk
same plane same language
the same language
whatever their
whatever countries of
their countries of origin, nevertheless there
origin, nevertheless there are lines of
are lines of cleaVage
cleavage
between them
between them whichwhich they bridge with mere contracts. If the business
cannot bridge
they cannot with mere contracts. If the business
enterprises of
enterprises countries moved
different countries
of different together like
moved together like well matched horses
well matched horses in in
a team
a at an
team at an eveneven pace, unity of
pace, unity could be
action could
of action agreed on.
be agreed on. But this is
But this is not
not
and it
case and
the case it can hardly be
can hardly case as
the case
be the long as
as long profit is
as profit magnet for
is aa magnet for men's
men's
productive
productive energies.
energies.
It was demonstrated over over the course of
the course century and
of aa century and aa half that there
half that there
were economies and and therefore greater profits
therefore greater in production
profits in production by increasingly by increasingly
units. The
larger units.
larger drive for
The drive concentration therefore
for concentration proceeded mercilessly
therefore proceeded mercilessly
ahead. But large concentrationss of
large concentration of invested capital also
invested capital also have their own
have their own
1
peculiar vulnerabilities Equipment becomes
vulnerabilities.. Equipment obsolete. Just as armies have
becomes obsolete. Just as armies have only
only
learned the lessons of
the lessons particular war
of aa particular war by by the time the
the time war is
the war over, so
is over, so an
an
concem at
industrial concern peak of
its peak
at its inevitably has
power inevitably
of power developed methods far
has developed methods far
superior to
superior to the ones it
the ones is actually
it is Yet it
using. Yet
actually using. cannot adopt
it cannot adopt the new methods
the new methods
taking aa heavy
without taking heavy lossloss through discarding the
through discarding the obsolete equipment. Its
obsolete equipment. Its
therefore is
interest therefore is to hold fast
to hold what it
to what
fast to has and
it has and to shifts and
resist shifts
to resist and changes
changes
with all
with energy it
the energy
all the bring to
can bring
it can to hear.
bear.
The producer not yet yet atat peak strength, on
peak strength, on the hand, is
other hand,
the other held back
not held
is not back
weight of
dead weight
by the dead obsolescence. That
of obsolescence. producer can
That producer can andand will drive ahead,
will drive ahead,
with the
building with improved methods
the improved methods and efficiency to
increased efficiency
using increased
and using to undcr-cut
under-cut
the richer andand better established opponent.
better established opponent.
The international cartel cartel sets production quotas,
sets production quotas, divides markets, and
divides markets, and
prices, in
attempts to stabilize prices, line with
in line existing relationship
an existing
with an of industrial
relationship of industrial
power. That relationship does
That relationship and cannot,
not, and
does not. still. And
stand still.
cannot, stand of the
out of
And out the
the economic
shifts of the arise the
balance arise
economic balance break over into
which break
explosions which
the explosions over into
sweep up
and sweep
politics and whole nations
up whole the path
in the
nations in of war.
path of war.
feeling at
National feeling home is
at home power which
driving power
is aa driving the international
which the international
unleash at
business operator can unleash the critical
at the moment to
critical moment achieve aa decision.
to achieve decision.
was not
This process was invented by
not invented by the What the
Germans. What
the Germans. Germans managed
the Germans managed
to do was
to do to raise
was to the use
raise the of aggressive
use of nationalism as
aggressive nationalism as aa support for general
support for general
aggression to
economic aggression new pitch
to aa new intensity, demonstratin
of intensity,
pitch of demonstrating g the advantage
the advantage
of coming late into the
late into and of
game and
the game all bets
matching all
of matching raising them.
and raising
bets and them.
Rather than acting as permanent then, the international cartels
mediators, then,
pennancnt mediators, the international cartels
become the
become through which
instruments through
the instruments conflicts take
international conflicts
which international shape, mature,
take shape, mature,
and finally
and finally break
break out.
out. For
For this
this purpose,
purpose, the
the cartels
cartels are
are peculiarly
peculiarly well
well adapted.
adapted.
major foreign
Cartels make major for whole
policy for
foreign policy It was
nations. It
whole nations. through the
was through the
mechanism of cartel agreements that Germany was
that Germany permitted to
was permitted arm while
to arm while
defensive preparations
defensive England and
in England
preparations in States were throttlcd. Yet
United States
the United
and the were throttlcd. Yet
the
the duly
duly chosen representativess of
chosen representative of nations
nations have
have little
little to
to say
say about
about the
the foreign
foreign
are made
policies which are cartels. The
by cartels.
made by cartel-builderss act
The cartel-builder act as private individuals
as private individuals
responsible
responsible only
only to
to their
their own
own boards
boards ofof directors
directors and
and responsible
responsible to to them
them
only for the showing of a decent profit. Cartels become in
only £01‘ the showing of a decent profit. Cartels become in clleet private effect private
governments
governments carrying
carrying on
on private
private diplomacy.
diplomacy. Even
Even the
the language
language of of cartel
cartel agree-
agree-
ments
ments reads
reads like
like protocol.
protocol. The
The people
people as
as aa whole
whole come
come inin only
only when
when armies
armies
are
are needed.
needed.

;..'1;§=}.;'_"
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 l

ONE
APPENDIX ONE
APPENDIX 249
249
There is
There is no
no indication
indication that
that the
the experience
experience ofof World
World War
War IlII has
has changed
changed
policy is
Public policy
the nature of cartels. Public the cartels, but then American
against the cartels, but then American
is against
policy has
policy has run
run consistently
consistently against
against all
all the
the fomis
forms of
of monopoly
monopoly since
since the
the passage
passage
of the
of the Sherman
Sherman Act
Act half
half aa century
century ago,
ago, and
and this
this has
has not
not kept
kept the
the cartel
cartel web
web
out of
out of this
this country.
country. ‘‘
There is
There is a
a hopeful
hopeful note
note in
in the
the series
series of
of proposals
proposals for
for expansion
expansion of
of world
World
trade and
trade and employment
employment prepared
prepared byby experts
experts in
in several
several U.
U. S.S. government
government
agencies and
agencies and published
published inin November,
November, 1945,
1945, by
by the
the State
State Department.
Department. The
The
document states that members of an international trade organization, under
document states that members of an international trade organization, under the the
United Nations,
United Nations, should
should act
act “to
“to curb
curb .. .. .. restrictive
restrictive practices
practices in
in international
international
trade.” The
trade.” The nasty
nasty word
word “cartel”
“cartel” is is not
not used,
used, butbut the
the nature
nature of
of the
the animal
animal is is
clearly enough
clearly enough indicated.
indicated. In
In the
the main
main three
three proposals
proposals are
are made:
made: 1) 1) the
the Inter-
Inter-
national Trade Organization should be empowered to receive complaints
against cartel
against cartel action,
action, to
to make
make studies
studies ofof the
the problem,
problem, andand to
to recommend
recommend action;
action;
2) member
2) member nations
nations ofof the
the Organization
Organization shouldshould continue
continue with
with their
their separate
separate
measures against
measures against the
the restrictive
restrictive practices;
practices; andand 3)3) the
the way
way is
is left
left open
open for
for any
any
further enforcement
further enforcement measures
measures whichwhich might
might later
later bebe agreed
agreed upon
upon by by the
the
members of
members of the
the Organization.
Organization.
In short,
In short, the
the program
program as as proposed
proposed is is largely
largely aa statement
statement ofof policy,
policy, general
general
and hopeful,
and hopeful, but
but without
without specific
specific teeth.
teeth.
Standing against the American government position, there is evidence i
of the
of the intenion
intenion of of American
American cartelists
cartelists toto continue
continue in in the
the old
old path.
path. As
As was
was
shown earlier, spokesmen for American corporations like Du Pont Font and
Standard Oil
Standard Oil have
llaVe revealed
revealed that
that they
they intend
intend to to revive
revive the
the old'carteIs
old‘cartels and
and their
their
connections with such erstwhile partners as IG.
To date, monopoly in America has been held in check, if at all, by popular
Ii
pressure. The American people may not have been in a position to know all
I about the workings of cartels and other monopoly forms, but what they have
known they have not liked; the Sherman Act has remained on the books and
it has acted at least as a drag on the powerful tendencies toward concentra-
tion. It will take the same kind of public pressure in increasing amount to
pull foreign affairs out of private hands and force them into the open where
the commitments arrived at by cartelists can be passed on by the people who
IMi have to fight in wars.
it
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2
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 APPENDIX 2
APPENDIX 2
POLICY DOCUMENTS
POLICY DOCUMENTS

l The
The documents which follow
documents which follow laid
laid down
down thethe principal
principal lines
lines of
of American
American
policy for
policy for the
the occupation
occupation ofof Germany
Germany during
during the
the entire
entire period
period between
between the
the end-
end-
ing of
ing of World
World War
War IIII in
in Europe.and
Europeand the the signing
signing ofof a
a formal
fomial peace
peaCe treaty.
treaty.
The Potsdam
The Potsdam Agreement
Agreement was was public
public iniormation
information from
from the moment of
the moment of its
its

i
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|
i
signing
signing by
States.
to General
to
the Chiefs
by the
States. JCS
JCS 1067,
Chiefs of

General Eisenhower,
of State
1067, however,
Eisenhower, was
become widely known.
State oi
however, when
of Great
Great Britain,
when first
Britain, the
issued by
first issued
was classified
classified as
as “Top
Soviet Union,
the Soviet
by the
the U.
“Top Secret.”
U. S.
Secret.” Its
S. Joint
and the
Union, and the United
Joint Chiefs
Chiefs of
Its provisions
provisions have
United
of Staff
Staff
have never
nevet

documents—-
As can easily be seen by a quick reading, the two main policy documents-—
one a
one a purely
purely American
American setset of
of instructions
instructions to an American
to an American commanding
commanding general,
genera],
I
1 , and the other an international agreement--are
agreement—are in thorough agreement. Both have
been frequently disregarded in practice by the U. S. Military Government in
Germany. \

é
A.
A.
1. Jcs 1067
JCS 1067
_ S (EXCERPTS) A
(EXCERPTS)
Directive to Commander in Chief of United
United‘States Fareas of Occupation
States Forces
Regarding
Regarding the
the Military Government of Germany
w-v‘\n—-uwse-\fln»hia~‘|i\ - ' (Issued originally
(Issued originally in
in April,
April, 1945)
1945)
|l

l Directi‘be:
1. The Purpose and Scope of this Directiire: ta
..
I
I-
F. This directive is issued to you as Commanding
This directive is issued to you as Commanding General
General of
of the
the United
United States
States ,
»|
,
Ti

as United States mem-

forces of occupation in Germany. As such you will serve as
for] the administration
ber of the Control Council and will also be responsible fort
of zones assigned to the United States for
of military government in the zone or

25]
t
251 < ¢

.\M,_.=,-_ .
Q K-<
 \

252
252 _ IG FARBEN
[G FARBEN
It outlines the basic polic ies which
purp oses of
purposes occupation and
of occupation ad ministration. It
and administration. outlines the basic policies which
you in thos e two ca pacit ies after the termination of the combined
guide you in those two capacities after the termination of .the combined
will guide
will
Commander, Allied Expeditionary Force.
Allied Expeditionary Force
comm
command and of Supreme Commander,
the Supreme
of the
forth policies
sets forth relating to
policies relating Germany in
to Germany in the initial post.
This directive sets
This directive the initial post.
not inte ndedd to be
b ann ultimate statement of
ultimate statement policies
of policies
defea
defeat t perio
period.d. As
As such
such it
it is
is not intende to e a
treatment of
the treatment Germ
of Germany any in the post -war world_
of this Government concerning the
Government concerning in the post-war world.
during the covered by
period covered
the period by this direc tive, you
is there
It is
It fore essential
therefore that, during
essential that, this directive, ygu
maintained of industrial, financ
economic, industrial,
of economic, ial,
assuree that
assur surveys are
that surveys constantly maintained
are constantly financial,
ical condi tions with in your zone and that results of such
the results
social and
social and polit
political conditions within your zone and that the of such
other surve ys as may be made in other zone s are made avail.
surv eys and
surveys such other surveys as may be made in other zones are made avail-
and such
through-the Joint
rnment, through-the Chiefs of
Joint Chiefs Staff. These
of Staff. surveys should
These surveys
able to
able your Gove
to your Government, shouldin
as to serve a
to serve changes in
determining changes
ass a basis for determining
be deve loped in
developed manner as
such manner
in such
herein as well as
as well as for the progressive
for the formula.
progressive formuh1-
the meas ures of
measures of contro sett forth herein
controll se
' ies promote tl
to promote the basic objectives of the
objectives of the United United
and deve
tion and lopment of
development polic
of policies' to 1e basic
will be issued to
be issued you by
to you by the Chiefs
Joint Chiefs
the Joint of Staff
State s. Supp
States. Supplemental directives will
lemental directives of Staff
may be
as may
as be requi red.
required.
er the Control
of the Council you
Control Council you will urge the
will urge adoption by
the adoption by the
As aa memb
As member of the
principles and
the principles
of the
rs of policies set
and policies forth in
set forth in this direc tive
other occu
other pying powe
occupying powers this directive
agreemen
'1 agree ment follow them
will follow
t,, you will them in your zone.
in your is
It is
zone. It
and, pend
and, ing Cont
pending Control Council
rol Counct
similar directives
antially similar will be
directives will issued to
be issued the Commanders
to the
antic
anticipated that subst
ipated that substantially Commanders
of the U. K., U. S. S. R. and Fren ch force s of occu pati on.
Chieff of the U. K., U. S. S. Ii. and French forces of occupation.
in Chie
in
C General and
I. General
Part I. Political
and Political
Basis of
2. The Basis
2, Government:
Military Government:
of Military
power and status of
and status the military
of the government in
military government Germany are
in Germany are
rights, power
a. The rights,
surrender or
unconditiona l surrender
the unconditional or total defeat of
total defeat Germany.
of Germany.
based upon the
based
provisions of
the provisions
to the 3 below, you
paragraph 3 below, you are,
of paragraph are, by virtue of
by virtue of
Subject to
6. Subject
b.
legislative, executive,
supreme legislative,
with supreme and judici al author
executive, and judicial authority ity
your
your position, clothed with
position, clothed
occupied by under your comma
forces under your command.
by forces nd. This authority will be
This authority
in the areas occupied will be
includes authority
and includes
construed and take all
to take
authority to deemed by
measures deemed
all measures by you
broadlyy construed
broadl you
desirable in
or desirable
appropriate or milita ry exigen cies and
to military exigencies and
relation to
in relation the
necessary, appropriate
necessary, the
of a firm milita ry govern ment.
objectives of a firm military government.
objectives
You will
c. You
c. continuing in
proclamation continuing
issue :1a proclamation
will issue force such
in force proclamations,
such proclamations,
orders and
orders instru
' ctions
and II1SlI‘tlCil0I1S
' aass may have heretofore
may have been
heretofore been
. issued by Allied
issued by Com-
Allied Com-
d ers subject to chang es
such changes
to such as you may determ ine: Author iza-
mande
man rs in your zone, subject as you may determine. Authoriza-
the Supreme
by the
action by Expedi tionar
Allied Expeditionary
Commander, Allied
Supreme Commander, y Force, may
tions of
tions of action Force, may
be consid
be con sidered applicable to
ered as applicable you unless
to you inconsistent with
unless inconsistent this or
with this directives.
later directives.
or later

The Control
3. The Council and
Control Council Zones of
and Zones Occupation:
of Occupation:
a. Commanders-in—Chie
four Commanders-1n-Chlcf,
The four
a. The ' ' f, acting
acting ' ' , Wlll
jointly
' Jointly, will constit
' constitute the
' ute tie
I C on t rol1
Contro
Council in
Council Germany which
in Germany be the
will be
which will supreme organ
the supreme organ of control over
of control Gei'many
over Germany
accordance with
in accordance
in with the agreement on
the agreement Contro l Machin ery in
on Control Machinery in Germany. For German y. pur-
For P111’.
administration of
poses of administration of military Germa
governmeht, Germany
military governmeht, ny has been divide
has been divided into d into
four zones of occupation.
of occupation.
authority of
bb. The authority Council to
Control Council
the Control
of the to formulate policies and
formulate policies procedures
and procedures
administrative relationships
and administrative with respect
relationships with to matter s affecti
respect to matters affecting Gennanyng Germa ny as as aa
whole will be
whole will throughout Germany.
paramount throughout
be paramount German y. You will carry out and supportt
You will carry out and suppor
. In e of
H1 your Z0116
in 70111‘ policies agreed
the policies
zone the upon in
agreed upon the Control
in the Contro. l Council.
Council
. absenc
thed.absence
In the . off
- such agreed
agreed policie
policiess you
you will
will act
act in
in aceord ance
accordance with
with this
tins and
and other
other directi
Iraq ves
v of
Joint Chiefs
the Joint Staff.
of Staff.
Chiefs of l 1 as 0

1
if
1 5.»
 APPENDIX TWO
APPENDIX TWO 253
253
c. The
c. The administration
administration of of affairs
affairs in
in Germany
Germany shall
shall be
be directed
directed towards
towards the
the
decentralization
decentralization of the political
of the political and
and administrative
administrative structure
structure and
and the
the develop-
develop-
ment of local responsibility. To this end you will encourage autonomy in regional,
local and
local and municipal
municipal agencies
agencies of of German
German administration.
administration. TheThe German
German economic
economic
structure shall
structure shall also
also be
be decentralized.
decantralized. The The Control
Control Council
Council may,
may, however,
however, toto the
the
minimum extent required for the fulfillment of purposes set forth herein, permit
minimum extent required for the fulfillment of purposes set forth herein, permit
centralized administration or establish central control of (a) essential national
public services such as railroads, communications and power, (b) (6) finance and
foreign affairs, and (c) production and distribution of essential commodities. \
d. The Control Council should adopt procedures to effectuate, and you will
zl. i
facilitate in your zone, the equitable distribution of essential commodities be- 5
\
tween the zones. In the absence of a conflicting policy of the Control Council, \

you may deal directly with one or more zone commanders on matters of special I

concern to such zones.

6. Pending the formulation in the_
e. the. Control Council of uniform policies and
inter—zonal travel and movement of civilians, no
procedures with respect to inter-zonal
civilian shall be permitted to leave or enter your zone without your authority,
and no Germans within your zone shall be permitted to leave Germany except
for specific
for specific purposes approved by you. _.
f. The military government personnel in each zone, including those dealing
with regional and local branches of the departments of any central German
administrative machinery,
administrative machinery, shall
shall bebe selected
selected by by authority
authority ofof the
the Commander
Commander of of
officm‘s may be furnished by the Commanders of
t
that zone except that liaison officers
the other three zones. The respective Commanders-in-Chief shall have exclusive 4
jurisdiction throughout the whole of Germany over the members of the armed
forces under
forces under their
their command
command and and over
over the
the civilians
civilians who
who accompany
accompany them.
them.
g. The
g. The Control
Control Council
Council should
should be be responsible
responsible for
for facilitating
facilitating the
the severance
severance
of all governmental and administrative connections between Austria and Ger-
many and the elimination of German economic influences in Austria. Every
assistance should be given to the Allied Administration in Austria in its efforts
effectuate these purposes.
to "effectuate

4. Basic Objectives of Military Government in Germany:

a. It
a. It should
should be
be brought
brought home
home to
to the
the Germans
Germans that
that Germany’s
Germany’s ruthless
ruthless war-
war-
fare and the fanatical Nazi resistance have destroyed the German economy and
made chaos and suffering inevitable and that the Germans cannot escape respon-
sibility for what they have brought upon themselves. V.,_'. _ -_t.-;_~ _-

1;. Germany
b. Germany will
will not
not be
be occupied
occupied for
for the
the purpose
purpose of
of liberation
liberation but
but asas aa
defeated enemy nation. Your aim is not oppression but to occupy Germany for
eertain important Allied objectives. In the conduct of
the purpose of realizing certain
your occupation and administration you should be just but firm firm and aloof. You
will strongly
will strongly discourage
discourage fraternization
fraternization with
with the
the German
German oflicials
olhcials and
and population.
population.
German},r
c. The principal Allied objective is to prevent Germany from ever again
becoming a threat to the peace of the world. Essential steps in the accomplish- \-
t

ment of
ment of this
this objective
objective are
are the
the elimination
elimination of
of Nazism
Nazism and
and militarism
militarism in
in all
all their
their
forms, the immediate apprehension of war criminals for punishment, the indus-
trial disarmament and demilitarization of Germany, with continuing control over
Germany’s capacity to make war, and the preparation for an eventual reconstruc-
Gennany’s
tion of German political life on a democratic basis.
-_,.A_._ . _ .‘_.-_. i._ ., _
I t
|
>
gr

|t‘J
\ A
 1

254
254 1« IG FARBEN
IG FARBEN
d. Other
d Other Allied
Allied objectives
objectives are
are to
to enforce the program
enforce the program of
of reparations
reparations and
and
restitution,Q to
restitution to provide
provide relief
relief {or
for the
the benefit
benefit of
of countries
countries devastated
devastated by
by Nazi
Nazi
aggression, and
aggression, and to
to ensure
ensure that
that prisoners
prisoners of
of war
war and
and displaced
displaced persons
persons of
of the
the
United Nations are cared for and repatriated.
5. Economic Controls:
a.
a. As
As aa member
member of the Control
of the Council and
Control Council and as
as zone
zone commander,
commander, you
you will
will
he
be guided
guided byby the
the principle that controls
principle that controls upon
upon the
the German
German economy
economy may
may bebe
imposed to the extent that such controls may be necessary to'achieve the objec:
objec-
tives enumerated in paragraph 4 above and also as they may be essential to
protect the safety and meet the needs of the occupying forces and assure the
production and maintenance of goods and services required to prevent starva-
tion or such disease and unrest as would endanger these forces. No action will
be taken in execution of the reparations program or otherwise which would
tend to support basic living conditions in Germany or in your zone on a higher
level than that existing in any one of the neighboring United Nations.
6.
b. In the imposition and maintenance of such
subh controls as may be prescribed
by you or the Control Council, German authorities will to the fullest extent
practicable be ordered to proclaim and assume administration of such controls.
Thus it should be brought home to the German people that the responsibility
these controls
for the administration of such controls and for any break-downs in those
will rest with themselves and German authorities.
6. Denazification:
a. A Proclamation dissolving the Nazi Party, its formations, alfiliated affiliated
associations and supervised organizations, and all Nazi public institutions which
were set up as instruments of Party domination, and prohibiting 'prohibiting their revival
in any form, should be promulgated by the Control Council. You will assure the
efl'ectuation of that policy in your zone and will make every effort to
prompt effectuation
prevent the reconstitution of any such organization in underground, disguised
or secret form. Responsibility for continuing desirable non-political social social ser-
scr-
‘vices
vices of dissolved Party organizations may be he transferred by the Control Council
to appropriate central agencies and by you to appropriate local agencies.
6. The laws purporting to establish the political structure of
b. of National
National Social-
Social-
ism and the basis of the Hitler regime and all laws, decrees and regulations
Which establish discriminations on grounds of race, nationality, creed or political
which
opinions should be abrogated by the Control Council. You
opinidris You will render them
will render them
inoperative in your zone. r*
c. All members of the Nazi Party who have been more than nominal par- .
ticipants in its activities, all active supporters of Nazism or militarism and and all
all
f
other persons hostile to Allied purposes will will be
be removed and excluded from
removed and excluded from
public oflice
office and from positions of importance in quasi-public and private enter-
private enter-
prisesasuch
Pfisesasuch as as (1)
(1) civic,
civic, economic and labor organizations, (2) corporations
corporations
and other organizations in which the German government government or or subdivisions have
subdivisions have
a majox;
major“ financial interest, (3) industry, commerce, ‘agriculture, and
industry, commerce, agriculture, and finance, finance,
(4) education, and (5) the press, publishing houses and and other
other agencies
agencies dis-
dis-
seminating news and propaganda. Persons are are toto be treated as more
be treated as more than
than
nominal participants in Party activities and
Party activities and as
as active
active supporters
supporters of Nazism or
of Nazism or
militarism when they have (1) held oflice oflice or otherwise been active
active at any
at any level
level
from local to national in the Party and its subordinatesubordinate organizations,
organizations,
or in
or in
 .1

APPENDIX TWO
APPENDIX TWO ' 255
255
organizations which further
organizations which further militaristic
militaristic doctrines,
doctrines, (2) authorized or
(2) authorized partici-
or partici-
pated
pated affirmatively
aflirmatively in
in any
any Nazi crimes, racial
Nazi crimes, racial persecutions
persecutions or
or discriminations,
discriminations,
(3)
(3) been
been avowed believers
believers in Nazism
Nazism or racial
racial and
and militaristic
militaristic creeds,
crecds, or
or (4)
(4)
voluntarily
voluntarily given
given substantial
substantial moral
moral or or material
material support
support or or political
political assistance
assistance
of
of any
any kind
kind to
to the
the Nazi
Nazi Party
Party or or Nazi
Nazi officials
oflicials and
and leaders.
leaders. NoNo such
such persons
persons
shall
shall be
be retained
retained in in any
any of
of the
the categories
categories ofof employment
employment listed
listed above
above because
because ofof i
administrative
administrative necessity,
necessity, convenience
convenience or or expediency.
expediency.
d_.
cf. Property,
Property, real
real and
and personal,
personal, owned
owned oror controlled
controlled byby the
the Nazi
Nazi Party,
Party, its
its
formations, aPfilioted
affiliated associations and supervised organizations, and by all per-
sons
sons subject
subject toto arrest
arrest under
under the
the provisions
provisions of'paragruph
ofparagraph 8, 3, and
and found
found within
within
your
your zone,
zone, will
will be
be taken
taken under
under your
your control
control pending
pending aa decision
decision by
by the
the Control
Control i
Council
Council oror higher
higher authority
authority as
as toto its
its eventual
eventual disposition.
disposition. I
c.
e. All
All archives,
archives, monuments
monuments and
and museums
museums ofof Nazi
Nazi inception,
inception, oror which
which are
are
devoted to the perpetuation of German militarism, will be taken under your
control and their properties held pending decision as to their.disposition
their. disposition by the L
Council.
Control Council.
Control _. i
1
eflf'orts to preserve from destruction and take under
f. You will make special efliorts
your
your control
control records,
records, plans,
plans, books,
books, documents,
documents, papers,
papers, files, and scientific,
files, and scientific, indus-
indus-
trial
trial and
and other
other infomation
information and data belonging-to
and data belonging-to oror controlled
controlled byby the
the following:
following:
(1) The Central German Government and its subdivisions, German military
organizations, organizations
organizations, organizations engaged
engaged in in military
military research,
research, and
and such
such other
other govern-
govern-
mental
mental agencies
agencies as
as may
may be
be deemed
deemed advisable;
advisable; ' .
(2) The Nazi Party, its formations, affiliated
afliliated associations and supervised
organizations,'
organizations;
(3) All police organizations, including security and political police;
(4) Important economic organizations and industrial establishments includ-
ing those controlled by the Nazi Party or its personnel;
(5) Institutes and special bureaus devoting themselves to racial, political,
militaristic or similar research or propaganda.
:1-w :rat 1:1- :1:s a:1- :1:at an-:-
I
I Part II. Economic
General Objectives and Methods of Control
16. You
16. You will assure that
will assure that the
the German
German economy
economy is
is administered
administered and
and controlled
controlled
in such a way as to accomplish the basic objectives set forth in paragraphs 4
extent-
and 5 of this Directive. Economic controls will be imposed only to the extent
necessary to accomplish these objectives, provided that you will impose controls 1|
¢.

1 to the full extent necessary to achieve the industrial disarmament of Germany.

Except as may be necessary to carry out these objectives, you will take no steps
1 (11)
(a) looking toward the economic rehabilitation of Germany, or (1))
(b) designed
!
to maintain or strengthen the German economy.
17. To the maximum extent possible without jeopardizing the successful
execution of measures required to implement the objectives outlined in para-
graphs 4 and 5 of this directive you will use German authorities and agencies
and subject them to such supervision and punishment for noncompliance as is
necessary to
necessary to ensure
ensure that
that they
they carry
carry out
out their
their tasks.
tasks.
For this purpose you will give appropriate authority to any German agencies
and administrative services you consider essential; provided, however, that you
will at all times adhere strictly to the provisions of this directive regarding de-
dc-

1
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.4.....__.._._____._—___
__ __ .._ _ i___

256
256 IG FARBEN
IG FARBEN
nazification
nazilication and and dissolution
dissolution or or elimination
elimination of oi Nazi
Nazi organizations,
organizations, institutions,
‘-4v—._-.\_
institutions,
principles, features, and practices.
To
To thetl1e extent
extent necessary
necessary you you will
will establish
establish administrative
administratiVe machinery,
machinery, not not
dependent
dependent upon upon German
German authorities
authorities andand agencies,
agencies, to to execute
execute oror assure
assure thethe execu-
execu-
tion
tion ofof the‘provisions
tltcprovisions of of paragraphs
paragraphs 19, 19, 20,
20, 30,
30, 31,
31, 32,32, 3939 and
and 40
40 and
and any
any other
other
measures
measures necessary
necessary to to anan accomplishment
accomplishment of your industrial
of your industrial disarmament
disarmament
objectives.
objectives.
18.
18. In
In order
order to to decentralize
decentralize the the structure
structure and and administration
administration of of the
the German
German
economy
economy to to the
the maximum
maximum possible possible extent,
extent, you you will
will
a.
a. ensure
ensure that that the the action
action required
required to to maintain
maintain or or restore
restore essential
essential public
public
utilities
utilities andand industrial
industrial and and agricultural
agricultural activities
activities is is taken
taken as as far
far as
as possible
possible on on aa
local and regional basis;
local and regional basis;
on no
I). on
b. account propose
no account propose or approve in
or approve in the Control Council
the Control Council thethe establish-
establish-
ment of
ment administration of
centralized administration
of centralized controls over
of controls over the the German economy except
German economy except
where such
where centralization of
such centralization administration is clearly essential to
of administration is clearly essential to the fulfillmentthe fulfillment
of objectives listed
the objectives
of the listed in paragraphs 4-
in paragraphs and 55 of
4- and directive. Decentralization
this directive.
of this Decentralization
in administration should
in administration should not not be permitted to
be permitted interfere with
to interfere attainment of
with attainment of the
the
largest
largest practicable
practicable measure
measure of
of agreement
agreement on
on economic
economic policies
policies in
in the
the Control
Control
Council.
Council. .-
You will
19. You will institute
institute or or assure maintenance of
the maintenance
assure the statistical records
such statistical
of such records
reports as
and reports may be
as may necessary in
be necessary carrying out
in carrying out thethe objectives listed 1n
objectives listed in para-
para-
graphs 4
graphs and 5 of this
4 and 5 of this directive. directive.
20. You
20. You will will initiate appropriate surveys
initiate appropriate which may
surveys which may assist you in
assist you in achiev-
achiev-
ing the objectives of
the objectives of the occupation. In
the occupation. particular you
In particular you will promptly undertake
will promptly undertake
surveys of supplies, equipment equipment and resources in
and resources in your You will
zone. You
your zone. endeavor to
will endeavor to
prompt
obtain prompt agreement
agreement in
in the
the Control
Control Council
Council to
to the
the making
making of
of similar
similar surveys
surveys
in the other
in the zones of
other zones occupation, and
of occupation, you will
and you urge appropriate
will urge steps to
appropriate steps to coordi«
coordi-
nate the
nate methods and
the methods results of
and results of these and other
these and future surveys conducted
other future surveys conducted in in the
the
various zones.
various zones. You You will keep the
will keep Control Council,
the Control States Representative
United States
Council, United Representative
on the Reparation Commission
the Reparation Commission and and other appropriate authorities,
other appropriate currently
authorities, currently
apprised
apprised of
of the
the information‘ohtained
informationcbtained by
by means
means of
of intermediate
intermediate reports
reports or other-
or other-
wise.

Standard of
German Standard Living
of Living
will estimate
You will
21. You requirements of
estimate requirements of supplies necessary to
supplies necessary to prevent starva-
prevent starva-
tion
tion or disease or
widespread disease
or widespread such civil
or such unrest as
civil unrest endanger the
Would endanger
as would occupying
the occupying
Such estimates
forces. Such estimates will
will be
be based
based upon
upon a
a program
program whereby
whereby the
the Germans
Germans are
are
responsible for
made responsible providing for
for providing themselves , out of their OWn
for themselves, out of their own work and work and
resources. You
resources. will take
You will economic and
practicable economic
all practicable
take all measures to
police measures
and police assure
to assure
thatGerman resources
that_German resources are utilized and
fully utilized
are fully consumption held
and consumption held to minimum
the minimum
to the
in order
in imports may
that imports
order that may be strictly limited
be strictly and that
limited and surpluses may
that surpluses may be made
he made
occupying forces
the occupying
for the
available for and displaced
forces and persons and
displaced persons and United Nations
United Nations
prisoners of
prisoners and for
war, and
of war, reparation. You
for reparation. no action
take no
will take
You will that would
action that tend
would tend
to support
to standards in
living standards
basic living
support basic Germany on
in Germany on aa higher than that
level than
higher level exist-
that exist-
ing in
ing one of
any one
in any neighboring United
the neighboring
of the United Nations you will
and you
Nations and take appropriate
will take appmpriatc
measures to ensure that basic living standards of the German people are not
higher than those
higher than existing in
those existing in any of the
one of
any one neighboring United
the neighboring when
Nations when
United Nations
such measures
such contribute to
will contribute
measures will raising the
to raising standards of
the standards of any nation.
such nation.
any such
22. You will urge upon the Control Council that uniform ration scales be
?2. he
applied i1"°"Eh011l
applled Germany, that
throughout Gcrrmlny, items be
essential items
that essential be distributed equitably
distributed equitably
 /

APPENDIX TWO
APPENDIX TWO 257
257
among the
among the zones,
zones, that
that net
net surpluses
surpluses be
be made
made available
available for
for export
export to
to Allied
Allied
countries, and
countries, and that
that imports
imports be
be limited
limited to
to the
the net
net deficits
deficits of
of Germany
Germany asas aa whole.
whole.
Labor, Health,
Labor, Health, andand Social
Social Insurance
Insurance
23. You
23. You willwill permit
permit the.self-organization
tlie.self-organization of of employees
employees alongalong democratic
democratic
lines, subject
lines, subject to to such
such safeguards
safeguards as as may
may be
be necessary
necessary to to prevent
prevent the perpetuation
the perpetuation
of
of Nazi
Nazi or militarist influence
or militarist influence under any guise
under any guise oror the
the continuation
continuation of of any
any group
group
hostile to the objectives and operations of the occupying forces.
24. You
24. You will
will permit
permit free
free collective
collective bargaining
bargaining between
between employees
employees and and em-
em-
ployers regarding wage, hour and working conditions and the establishment of
machinery
machinery for for the
the settlement
settlement of of industrial
industrial disputes.
disputes. Collective
Collective bargaining
bargaining shall
shall
be subject to such wage, hour and other controls, if any, as may be instituted
be subject to such wage, hour and other controls, if any, as may be instituted
or
or revived
revived by by your
your direction.
direction.
25.
25. Subject
Subject to to the
the provisions
provisions of of paragraph
paragraph 48 48 ofof this
this directive
directive you
you are
are
authorized
authorized to to direct
direct German
German authorities
authorities to
to maintain
maintain or or reestablish
reestablish nondiscrimina-
nondiscrimina-
tory
tory systems
systems of of social
social insurance
insurance andand poor
poor relief.
relief.
26.
26. You
You areare authorized
authorized to to direct
direct the
the German
German authorities
authorities toto maintain
maintain oror re-
rc-
establish such health services and facilities as may be he available to them.
Agriculture,
Agriculture, Industry
Industry and
and Internal
Internal Commerce
Commerce '
27.
27. You
You will
will require
require thethe Germans
Germans to to use
use all
all means
means at at their
their disposal
'disposal toto
maximize agricultural output and to establish as rapidly as possible effective
maximize agricultural output and to establish as rapidly as possible effective
machinery for the collection and distribution of agricultural output.
28. You
28. You will
will direct
direct the
the German
German authorities
authorities toto utilize
utilize large-lauded
large-landed estatesestates
and
and public
public lands
lands inin a
a manner
manner whichwhich will
will facilitate
facilitate the accommodation and
the accommodation and
settlement of Germans and others or increase agricultural output.
29. You will protect from destruction by the Germans, and maintain for
such disposition as is determined by this and other directives or by the Control
Council, all plants, equipment, patents and other property, and all bool-:s books and
records of
records of large
large German
German industrial
industrial companies
companies andand trade
trade and
and research
research associa-
associa-
tions that have been heen essential to the German war effort or the German economy.
You will pay particular attention to research and experimental establishments
of such concerns.
30. In order to disarm Germany, the Control Council should
(I.
a. prevent the production,
prodt.1ction, acquisition by importation or otherwise, and
development‘ of all arms, ammunition and implements of war, as well as all
types of aircraft, and all parts, components and ingredients specially designed f

or produced for incorporation therein; ‘_

I).
b. prevent the production of merchant ships, synthetic rubber and oil,
aluminum and magnesium and any other products and equipment on which you ..=,
will subsequently receive instructions; _
1:.
c. seize and safeguard
safeguard all facilities used in the production ofof any of the <

items mentioned
mentioned 1n in this paragraph and dispose of them as follows:
(1) remove all those required for reparation;
(2)
(2) destroy all those not transferred for reparation if they are especially
adapted to the production of the items specified in this paragraph and are not
of a type generally used" used 111
in industries permitted to the Germans (cases of doubt
to be resolved
resolved 1nin favor of destruction); ' l

(3) hold the balance for disposal disposal in accordance with instructions which which y.-i
will be sent to you. :

- 4"
 I

258
258 IG FARBEN
IG FARBEN
Pending agreement in the Control Council you will
will take these measures in
your own zone. You will not postpone enforcement of the prohibitions contained
in suhparagraphs a and b and the instructions in subparagraph c0 without specific
approval of your government through the Joint Chiefs of Staff except that, in
your discretion, you may permit the production of synthetic rubber and oil,
aluminum and magnesium, to the minimum extent necessary
necessary to meet the pur-
poses stated
poses stated in
in paragraphs
paragraphs 4- 4- and
and 55 of
of the
the directive
directive pending
pending action
action byby the
the Joint
Joint
Chiefs of
Chiefs of Stall
Staff upon
upon such
such recommendation
recommendation for for postponement
postponement as as you
you maymay make.
make.
31. As
31. As anan additional
additional measure
measure of of disarmament,
disarmament, the the Control
Control Council
Council should
should
a. prohibit initially all research activities and close all laboratories, research
institutions and similar technical organizations except those considered neces-
sary to the protection of public health; _
b. abolish all those laboratories and related institutions whose work has
been
been connected
connected withwith the
the building
building ofof the
the German
German war war machine,
machine, safeguard initially
safeguard initially
such laboratories
such laboratories andand detain
detain such
such personnel
personnel as as are of interest
are of interest to
to your techno-
your techno-
logical investigations, and thereafter remove or destroy their equipment;
6. permit the resumption of scientific research in specific cases, only after
c.
careful investigation has established that the contemplated‘research
c0ntempl£|te(l'research will in no
way
way contribute
contribute to to Germahy’s
Germany’s future
future war
war potential
potential and and only
only under
under appropriate
appropriate
regulations
regulatiflns which (1) define the specific specific types of research permitted, (2) ex-
clude
clude from from further
further research
research activity
activity any
any persons
persons who who previously
previously held
held key
key posi-
posi-
tions
tions in in German
German war war research,
research, (3)
(3) provide
provide forfor frequent
frequent inspection,
inspection, (4) (4-) require
reqiiire
free
free disclosure
disclosure of of the
the results
results of
of the
the research
research and and (5)(5) impose
impose severe
severe penalties,
penalties,
including
including permanent
permanent closing
closing ofof the
the offending
offending institution,
institution, whenever
vzhenever the the regula-
regula-
tions
tions areare violated.
violated.
' Pending agreement in the Control Council you will adopt such measures
in your own zone. '‘
32.
32. Pending
Pending final
final Allied
Allied agreements
agreements on on reparation
reparation andand onon control
control or or elimi-
elimi-
nation
nation of of German
German industries
industries that
that can
can behe utilized
utilized for for war
War production,
production, thethe Control
Control
Council
Council shouldshould ,»
a. prohibit and prevent production of iron and steel, chemicals, nonferrous
metals (excluding aluminum and magnesium), machine tools, radio and elec-
trical
trical equipment,
equipment, automotive
automotive vehicles,
vehicles, heavy
heavy machinery
machinery and and important
important parts parts
thereof,
thereof, except
except for
for the
the purposes
purposes stated
stated inin paragraphs
paragraphs 44 and and 55 of
of this
this directive;
directive;
b.
b. prohibit
prohibit and
and prevent
prevent rehabilitation
rehabilitation of
of plant
plant and
and equipment
equipment in
in such
such
industries except for the purposes stated in paragraphs 4 and 5 of this direc-
tive; and _
c. safeguard plant and equipment in such industries for transfer on repara-
tion
tion account.
account.
Pending agreement in the Control Council, you will put such measures into
effect in your own zone as soon as you have had an opportunity to re‘view
relview and
determine production necessary for the purposes stated in paragraphs 45nnd4-"and 5
of this directive.
of this directive.
33. The Control Council should adopt a policy permitting the conversion
of facilities other than those mentioned in paragraphs 30 and 32 to the produc-
tion of light consumer goods, provided that such conversion does not prejudice
the
the subsequent removal of plant and equipment on reparation account and does
not require any imports beyond those necessary for the purposes specified
specified in
in
u
\\

\-c. 3“V
 t

APPENDIX TWO
Two 259
'' 259
paragraphs -‘4:-It and
paragraphs and 5
5 of
of this directive. Pending
this directive. agreement in
Pending agreement in the
the Control
Control Council,
Council,
you may
you may permit
permit such
such conversion
conversion inin your
your zone.
zone. ‘
34.511bject to the provisions of paragraphs 30 and 32, the Control
34. Subject to the provisions of paragraphs 30 and 32, the Control Council Council
measures are
should assure that all feasible measures taken to
are taken facilitate, to
to facilitate, the minimum
to the minimum
extent necessary
extent necessary for
for the
the purposes
purposes outlined
outlined in
in paragraphs
paragraphs 4 and 55 of
4- and of this
this directive
directive
a.
a. repairs
repairs to
to and
and restoration
restoration of
of essential
essential transportation
transportation services
services and
and public
public
utilities;
utilities; 1

5.
b. emergency
emergency repair
repair and
and construction
construction of
of the
the minimum
minimum shelter
shelter required
required for
for
the
the civilian
civilian population;
population; - .I
c.
c. production
production of
of coal
coal and
and any
any other
other goods
goods and
and services
services (excluding
(excluding goods
goods \

specified
specified in
in paragraphs
paragraphs 30
30 and
and 32
32 unless
unless measures
measures to
to facilitate
facilitate production
production are
arc
specifically
specifically approved
approved by
by this
this Government through the
Government through the Joint-Chiefs
Joint-Chiefs of Staff)
of Staff)
required
required for the purposes
for the purposes outlined
outlined in paragraphs 4
in paragraphs 4 and
and 55 of
of this
this directive.
directive.
You will
You will assure
assure that
that such
such measures
measures are
are taken
taken in in your
your own zone pending
own zone pending
agreement in
agreement in the
the Control
Control Council.
Council.
35. In
35. In your
your capacity
capacity asas zone
zone commander
commander and and as as member
member of of the
the Control
Control
Council
Council you
you will
will take
take steps
steps to
to provide
provide for
for the
the equitable
equitable interzonal
interzonal distribution
distribution
and the movement of of goods essential to
services essential
and services
goods and the purposes
to the set forth
purposes set in
forth in
paragraphs 44 and
paragraphs and 55 of
of this
this directive.
directive.
36. You
36. You will
will prohibit
prohibit all
all cartels
cartels or
or other
other private
private business
business arrangements
arrangements
those of a public or quasi-public char-
including those
and cartel-like organizations, including of a public or quasi—publie char-
acter such as the Wirtschaftsgrnppen providing for
Wirtschaftsgruppen providing the regulation
for the of marketing
regulation of marketing
conditions,
conditions, including production, prices,
including production, exchange of
exclusive exchange
prices, exclusive technical informa-
of technical informa-
and allocation of sales territories. Such necessary public
tion and processes, and allocation of sales territories. Such necessary public I

discharged by
been discharged
functions as have been these organizations
by these be absorbed
shall be
organizations shall as
absorbed as
rapidly
rapidly asas possible
possible by
by approved
approved public
public agencies.
agencies. ,
37. Itis
37. It the policy
IS the of your
policy of government to
your government to effect dispersion of
effect aa dispersion owner-
the owner-
of the
ship and control of German industry.
of German assist in
To assist
industry. To carrying out
in carrying out this you
policy you
this policy
of combines and pools, mergers, holding companies
will make a survey of combines and pools, mergers, holding companies and inter- and inter-
locking directorates and communicate the
and communicate the results, together with
results, together recommenda-
with recommenda-
tions, to
lions, to your government through
your government Chiefs of
Joint Chiefs
the Joint
through the Staff. You
of Staff. endeavor
will endeavor
You will
to obtain agreement in the Control
in the Council to
Control Council to the making of
the making of this in
survey in
this survey tl
the other zones of occupation andand you urge the
will urge
you will coordination of
the coordination of the methods
the methods \

results of
and results this survey
of this the various
in the
survey in zones.
various zones.
1

and
adopt
.

38. With due regard to paragraph 44 a, the Control

a, the should adopt
Council should
Control Council
.

i necessary to prevent or
to prevent or restrain inflation of
restrain inflation a char-
of a char-
.4.“

such policies as are clearly necessary

acter or dimension which would would definitely accomplishment of
endanger accomplishment
definitely endanger the
of the
objectives of the occupation. TheThe Control Council, in
Control Council, particular, should
in particular, direct
should direct
and empower German authorities to maintain or
to maintain or establish controls over
establish controls prices
over prices
E and
Pending
and to
wages and
and wages take the
to take
agreement in
Pending agreement in the
fiscal and
the fiscal financial measures
and financial
Control Council
the Control
necessary to
measures necessary
you will
Council you assure that
will assure
to this
measures
such measures
that such
end.
this end.

as you consider
as you taken in
are taken
necessary are
consider necessary your own
in your Prevention or
zone. Prevention
own zone. restraint
or restraint
_ . _. , _
of inflation
of shall not
inflation shall constitute an
not constitute additional ground
an additional for limiting
ground for removal,
limiting removal,
destruction or
destruction curtailment of
or curtailment productive facilities
of productive fulfillment of
in fulfillment
facilities in program
the program
of the
F for reparation, demilitarization and industrial disarmament.
i Power, Transportation, and Communications
1 39. Both
39. Both as
as member
member ofof the
the Control
Control Council
Council and
and zone
zone commander
commander you
you will
will
take appropriate steps to ensure that
a. power, transportation and communications facilities are directed in such
\.

l A
 r

260 IG
IS FARBEN
of this
a way as to carry out the objectives outlined in paragraphs 4 and 5 oi
directive;
directive; *,
Germans are
b. Germans
b. prohibited and
are prohibited prevented from
and prevented from producing, maintaining or
producing, maintaining or
operating all
operating all types aircraft.
of aircraft.
types of
determine the degree to which centralized
You will determine administra-
centralized control and administra-
tion of power, transportation communicatio
transportation and communications ns necessary for
is clearly necessary the
for the
objectives stated
objectives paragraphs 44 and
in paragraphs
stated in and urge
and 55 and establishment of
the establishment
urge the degree
this degree
of this
centralized control and administration
of centralized Council.
administration by the Control Council.
Foreign Trade
Foreign Trade and Reparation
and Reparation
40. The Control Council
40. The Control Council should
should establish
establish centralized
centralized control
control over all trade
over all trade
in goods and services with foreign countries. Pending agreement in the Control
Council
Council you
you will
will impose
impose appropriate controls in
appropriate controls in your
your own
own zone.
zone.
41. Both as member of the Control Council and as zone commander you
will take appropriate steps to ensure that .
a. the foreign trade controls are designed to carry out the objectives stated
in paragraphs 4 and 5 of this directive;
b. imports which are permitted and furnished to Germany are confined to
those unavoidably necessary to the objectives stated in paragraphs 4 and 5;
c. exports to countries other than the United Nations are prohibited unless
specifically authorized by the Allied governments.
4-2.
42. Both as member of the Control Council and as zone commander you
adept a policy which would forbid German firms to participate in inter-
will adopt
national cartels or other restrictive contracts and arrangements and order the
prompt termination of all existing German participations in in such
such cartels,
cartels, con-
con-
tracts and arrangements.
43. You will carry out in your zone such programs of reparation and resti-
tution
tution as are embodied in Allied agreements and you will seek agreement in
the Control Council on any policies and measures which it may be necessary
to apply throughout Germany in order to ensure the execution of such programs.
.‘ Part III. Financial
44. You will make full application in the financial field of the principles
stated elsewhere in this directive and you will endeavor to have the Control
Control
Council adopt uniform financial policies necessary to carry
carry out
out the
the purposes
purposes
stated in paragraphs 4 and 5 of this directive. You will take no steps designed
to maintain, strengthen or operate the German financial structure except in so
far as may be necessary for the purposes Specified
specified in this directive.
45. TheControl
The.Control Council should regulate and control to
to the
the extent
extent required
required
for the purposes set forth in paragraphs 4 and 5 the issue and volume of cur— cur-
rency and the extension of credit in Germany and in accordance with the follow.
follow- '
ing principles:
a. United States forces and other Allied forces will use Allied Military
Military
marks and Reichsmark currency or coins in theirtheir possession.
possession. Allied
Allied Military
Military
marks and Reichsmark currency and coincoin now
now in
in circulation
circulation in
in Germany
Germany willwill
be legal tender without distinction and will be interchangea
interchangeable at the rate
ble at the ritte ofof
11 Allied
Allied Military mark for 1 Reichsmark. Reichskredit
Reichskreditkassenscheine and
kassenscheine and otherother
German military currency will not be legal tender in Germany.
5..
b. The Reichshank,
Reichsbanlc, the Rentenbank or
or any
any other
other bank
bank or
or agency
agency may be
may be
permitted or required to issue bank
bank notes
notes and
and currency
currency which
which will be legal
will be legal

J19?‘ 475
 APPENDIX TWO
APPENDIX TWO 261
261
tender;
tender; without
without such authorization no
such authorization German governmental
no German governmental or or private
private bank
bank or
or
agency
agency willwill be
be permitted
permitted toto issue
issue bank
bank notes
notes or
or currency.
currency.
c.
c. The
The German
German authorities
authorities may
may hebe required
required to to make
make available
available Reichsmark
Reichsmark
currency
currency or or credits
credits free
free of
of cost
cost and
and in
in amounts
amounts sufficient
sutlicient to
to meet
meet all
all the
the expenses
expenses
of
of the
the forces
forces ofof occupation,
occupation, including
including the
the cost
cost of
of Allied
Allied Military
Military Government
Government
and
and including
including to to the
the extent
extent that
that compensation
compensation is is made
made therefor,
therefor, the
the cost
cost of
of
such private property as may he be requisitioned, seized, or otherwise acquired,
by Allied authorities for reparations or restitution purposes. Purposes.
Pending
Pending agreement
agreement in in the
the Control
Control Council
Council youyou will
will follow
follow these
these policies
policies in
in
your
your own
own zone.
zone.
You will receive separate instructions relative to the currency which you
will
will use
use inin the
the event
event that
that for
for any
any reason
reason adequate
adequate Supplies
supplies of
of Allied
Allied Military
Military
marks
marks and and Reichsmarks
Reichsmarks are are not
not available,
available, or or if
if the
the use
use ofof such
such currency
currency isis
found
found undesirable.
undesirable.
You
You willwill not
not announce
announce or or establish
establish inin your
your zone,
zone, until
until receipt
receipt of
of further
further
instructions,
instructions, any
any general
general rate
rate of
of exchange
exchange between
between the
the Reichsmark
Reichsmark on
on the
the one
one
I hand
hand and
and the
the U.
U. S.
S. dollar
dollar and
and other
other currencies
currencies on
on the
the other.
other. However,
However, aa rate
rate of
of
exchange to be used exclusively for pay of troops and military accounting pur-
poses
poses in
in your
your zone
zone will
will be
be communicated
communicated separately
separately to
to you.
you.
46. Subject to any agreed policies of the Control Council, you
46. Subject to any agreed policies of the Control Council, are authorized
you are authorized
to take the following steps and to put into effect such further financial measures
as you
as you may
may deem
deem necessary
necessary to
to accomplish
accomplish the
the purposes
purposes of
of your
your occupation:
occupation:
a. To prohibit, or to prescribe regulations regarding transfer or other deal-
ings in private or public securities or real estate or other property.
I
I
I
1). To close banks, but only for a period long enough for you to introduce
b.
satisfactory °°Tll1'0l,
8%1li$fa¢I01'Y control, to
to remove
remove Nazi
Nazi and
and other
other undesirable
undesirable personnel,
personnel, and
and to
to
issue instructions
issue instructions for
for the
the determination
determination ofof accounts
accounts toto be
be blocked
blocked under
under sub-
sub-
paragraph 48 4.8 e below.
c. To
e. To close
close stock
stock exchanges,
exchanges, insurance
insurance companies,
companies, and
and similar
similar financial
financial
institutions ‘for
institutions 'for such
such periods
periods asas you
you deem
deem appropriate.
appropriate.
(I. To establish a general or limited moratorium or moratoria only to the.
cl.
extent clearly
extent clearly necessary
necessary toto carry
carry out
out the
the objectives
objectives stated
stated in
in paragraphs
paragraphs 44 and
and 55
of this
of this directive.
directive.
i -. 47. Resumption of partial or complete service on the internal public debt
at the
at the earliest
earliest feasible
feasible date
date is
is deemed
deemed desirable.
desirable. The
The Control
Control Council
Council should
should
‘decide
decide the time and manner of such resumption. \
\
48. Subject to any agreed policies of the Control Council,
1 a.‘ You
a.’ You will
will prohibit:
prohibit:
l
(1) the
(1) the payment
payment ofof all
all military
military pensions,
pensions, or
or emoluments
emoluments or
or benefits,
benefits, except
except
compensation for physical disability limiting the recipient's ability to work, at
rates which are no higher than the lowest of those for comparable physical dis-
ability arising
ability arising from
from non-military
non-military causes.
causes.
(2) the payment of all public or private pensions or other emoluments or
benefits granted
granted or
or conferred:
conferred:
I benefits
(a) By reason of membership in or services to the former Nazi Party,
i affiliated associations or supervised organizations,
its formations, aiiiliated
Office or position
(b) to any person who has been removed from an ollice
in accordance with paragraph 6, and

I
-4
 262
262 IG FARBEN
IG FARBEN
(c) to
(cl to any
any person
person arrested and detained
arrested and detained in accordance with
in accordance with paragraph
paragraph
8
8 during
during the
the term
term ofof his
his arrest,
arrest, or
or permanently,
permanently, in in case
case of
of his
his subsequent
subsequent
conviction.
conviction.
(1. You
b. You will
will take
take such
such action
action as
as may
may bebe necessary
necessary toto ensure
ensure that
that all
all laws
laws
and
and practices
practices relating
relating toto taxation
taxation or
or other
other fields
fields of
of finance,
finance, which
which discriminate
discriminate
for
for or
or against
against any
any persons
persons because
because of
of race,
race, nationality,
nationality, creed
creed oror political
political opinion,
opinion,
will
will bebe amended,
amended, suspended,
suspended, or or abrogated
abrogated to to the
the extent
extent necessary
necessary to to eliminate
eliminate
such discrimination.
c.
c. You
You will
will hold
hold the
the German
German authorities
authorities responsible
responsible forfor taking
taking such
such meas-
meas-
ures
ures inin the
the field
field of
of taxation
taxation and
and other
other fields
fields of
of public
public finance,
finance, including
including restora-
restora-
tion
tion ofof the
the tax
tax system
system andand maintenance
maintenance of of tax
tax revenues,
revenues, as as will
will further
further the
the
accomplishment of the ohjectives
objectives stated in paragraphs 4 and 5.
d.
cl. You
You will
will exercise
exercise geheral
general supervision
supervision over
over German
German public
public expenditures
expenditures
in
in order
order to
to ensure
ensure that
that they
they are
are consistent
consistent with
with the
the objectives
objectives stated
stated in
in para-
para-
graphs
graphs 4- 4 and
and 5.
5. -- 1
8.
e. You
You will
will impound
impound or or block
block all all gold,
gold, silver,
silver, currencies,
currencies, securities,
securities, accounts
accounts
in
in financial
financial institutions,
institutions, credits,
credits, valuable
valuable papers,
papers, and and all
all other
other assets
assets falling
falling
within the following categories:
(1)
(1) Property
Property owned
owned or or controlled
controlled directly
directly or or indirectly,
indirectly, in
in whole
whole or or inin
part,
part, byby any
any ofof the
the following:
following: w
(a) The German Reich, Reich, or any of
or any of the Gaue or
Liinder, Gaue
the Liinder, provinces, any
or provinces, any
Kreis,
Kreis, Municipality
Municipality or or other
other similar
similar local
local subdivision;
subdivision; or or any
any agency
agency or or
instrumentality of
instrumentality of any
any ofof them
them including
including all all utilities,
utilities, undertakings,
undertakings, public
public
corporations or
corporations or monopolies
monopolies under under the the control
control of of any
any of
of the
the above;
above;
(b) Governments,
(b) Governments, nationals
nationals or or residents
residents of of other
other nations,
nations, including
including
those of territories occupied by them, at war with any of the United
Nations at
Nations at any
any time
time since
since 11 September
September 1939; 1939;
(c) The Nazi Party, its formation, affiliated
its formation, associations and
affiliated associations and
supervised organizations, its
supervised organizations, officials, leading
its oilicials, members and
leading members supporters;
and supporters;
(d)
(d) All
All organizations,
organizations, clubs clubs or or other
other associations
associations prohibited
prohibited or or
dissolved
dissolved by by military
military government;
government;
(e) Absentee owners, of non-German non-G-erman nationality including United
nationality including United
Nations and neutral governments
governments and and Germans of Germany;
outside of
Germans outside Germany;
(f)
(fl Any
Any institution
institution dedicated
dedicated to to public
public worship,
worship, charity,
charity, education
education
or
or the
the arts
arts and
and sciences
sciences which
which has has been
been used
used byby the
the Nazi
Nazi Party
Party toto further
further
its
its interests
interests oror to
to cloak
cloak its
its activities;
activities;
(3)
(E) Persons subject to arrest under provisions of
under provisions paragraph 8,
of paragraph and
8, and
all other persons specified by military government by inclusion in lists
or otherwise.
(2)
(2) Property
Property which
which has
has been
been the
the subject
subject of
of transfer
transfer under
under duress
duress or
or
wrongful acts of confiscation, disposition or spoliation, whether pursuant to
legislation
legislation or
or by
by procedure
procedure purporting
purporting to
to follow
follow forms
forms of
of law
law or
or otherwise.
otherwise.
(3)
(3) Works
Works of
of art
art or
or cultural
cultural material
material of of value
value or
or importance,
importance, regardless
regardless
of the ownership thereof. _ ‘ '
You will take such action as will ensure that any impounded or blocked
assets will be dealt with only as permitted
pCI'l'l1lllE(l under licenses or other instruc-
tions
tions which
which you
you may
may issue.
issue. InIn the
the case
case particularly
particularly of
of property
property blocked
blocked
under (1) (a) above, you will proceed to adopt licensing measures which
while maintaining such property under surveillance would permit its use
in consonanCe
consonance with this directive. In the case of property blocked under (2)

/
r i
1 :hl~‘~~
' \i‘ -
>

APPENDIX 1wo y. I 263

I
l-

APPENDIX TWO 263

above, you
above, you will
will institute
institute measures
measures for for prompt
prompt restitution,
restitution, in in conformity
conformity with
with
the objectives
the objectives stated
stated inin paragraphs
paragraphs 4 and 55 and
4 and and subject
subject to appropriate safe-
to appropriate safe-
guards to
guards to prevent
prevent thethe cloaking
cloaking of of Nazi
Nazi and
and militaristic
militaristic influence.
influence.
E 49. All foreign exchange transactions, including those arising out of
exports and imports, shall be controlled with the aim of preventing Germany
from developing
from developing a a war
war potential
potential and
and of of achieving
achieving thethe other
other objectives
objectives set
set
forth in
forth in this
this directive.
directive. ‘To"To effectuate
effectuate these
these purposes
purposes the the Control
Control Council
Council
.1 should
i a. Seek out and reduce to the possession and control of a special agency
. all German
all German (public
(public andand private)
private) foreign
foreign exchange
exchange and and external
external assets
assets ofof
every kind
every kind and
and description
description located
located within
within oror outside
outside Germany.
Germany.
b.
b. Prohibit,
Prohibit, except
except as as authorized
authorized by regulation or
by regulation or license,
license, all
all dealings
dealings t
i
in
in gold,
gold, silver,
silver, foreign
foreign exchange,
exchange, andand all foreign exchange
all foreign exchange transactions
transactions of any
of any
kind. Make
kind. Make available
available anyany foreign
foreign exchange
exchange proceeds
proceeds of of exports
exports forfor payment
payment
1
of imports
of imports directly
directly necessary
necessary to to the
the accomplishment
accomplishment of of the
the objectives
objectives stated
stated ‘ 4

in paragraphs
in paragraphs 4 4 and
and 5 5 ofof this
this directive,
directive, and
and authorize
authorize no_no. other
other outlay
outlay ofof
foreign exchange
foreign exchange assets
assets except
except for
for purposes
purposes approved
approved by by the
the Control
Control Council
Council
or other
or other appropriate
appropriate authority.
authority.
c. Establish
c. Establish effective
effective controls
controls with
with respect
respect toto all
all foreign
foreign exchange
exchange trans-
trans-
including:
actions, including: .'
(1) Transactions
(1) Transactions as
as to
to property
property between
between persons
persons inside Germany
inside Germany and and
1 persons outside Germany;
persons outside Germany; ._
(2) Transactions
(2) Transactions involving
involving obligations
obligations owed
owed _by
by or
or to become
to become due due from
from
Germany;
any person in Germany to any person outside Germany; and
and
(3) Transactions
(3) Transactions involvihg
involvihg the
the importation
importation into
into or exportation
or exportation from from
Germany of
Germany of any
any foreign
foreign exchange
exchange asset
asset or
or other
other form
form of
of property.
property.
Pending agreement
Pending agreement in in the
the Control
Control Council,
Council, you
you will
will take
take in
in youryour zone
zone
subparagraphs a,
the action indicated in subparagrapbs and 6c above.
e, bb and Accordingly, you
above. Accordingly, you
will in
Will your Zone
in YOU!‘ reduCe to
Zone reduce to the possession and
the possession control of
and control agency
special agency
of aa special
established by you, within your Command, all
your Command, all German exchange and
foreign exchange
German foreign and
external assets
external aSSets asas provided
provided inin subparagraph
subparagraph a. a. You
You will
will endeavor
endeavor to to have
have
established in
purposes established
some purposes
similar agencies for the same in the zones of
other zones
the other occu-
of occu-
pation and to to have them
have them merged
merged as
as soon
soon as
as practicable
practicable in
in one
one agency
agency for
for
the entire occupied territory. In addition you will provide
the entire occupied territory. In addition you will provide full reports tofull reports to
your government
Your gOVernment with
with respect
respect toto all
all German
German foreign
foreign exchange
exchange and and external
external
assets. .
_ 50. No extension of credit to Germany or Germans by any foreign person
or Government shall be permitted except that the Control Council may in
permission for
special emergencies grant permission such extensions
for such extensions of credit.
of credit.
It is
51. It not anticipated
is not you will
that you
anticipated that credits available
make credits
will make the
to the
available to
_-.Q _.-_,~i.“ -__-. ,
Reichsbank or or any other bank
any other or to
bank or public or
any public
to any or private
private institution. If,
institution. If, inin
your opinion, such action becomes essential, you
becomes essential, may take
you may such emergency
take such emergency
as you
actions as you may deem proper,
may deem but in
proper, but event, you
any event,
in any will report
you will facts
the facts
report the

l to the
to

to
the Control
Control Council.
Council.
52. You will maintain such accounts and records as may be necessary
to reflect
reflect the
the financial
financial operations
Operations of
of the
the military
military government
government in
in your
your zone
zone
0 and you will provide the Control Council with such information as it may
a require, including
require, including information
information in
in connection
connection with
with the
the use
use of
of currency
currency by
by
l settlements, occupation
your forces, any governmental settlements, costs, and
occupation costs, expen-
other expen-
and other
ditures arising out of operations or
or activities involving participation
activities involving your
of your
participation of
forces.

Lt-. “
I
 ‘/

264 [G FARBEN
IG
MILITARY GOVERNMENT —— GERMANY
UNITED STATES ZONE
UNITED STATES ZONE

GENERAL ORDER
GENERAL ORDER N0.
NO. 22
(Pursuant to
(Pursuant to Military Government Law
Military Government Law N0..52-—BlocIcing
No.15 ——Bloclcing
and Control
and Control of
of Property)
Property) .
I. G. FARBENINDUSTRIE A. G.
WHEREAS, it is the main objective of the United Nations to prevent
Germany from
Germany from ever
ever again
again disrupting
disrupting the the peace
peace of
of the
the world;
world;
WHEREAS, I. G. FARBENINDUSTRIE A. G. played a prominent part
in building up and maintaining the German war machine;
WHEREAS, through its world-wide cartel system and practices, I. G.
FARBENINDUSTRIE A. G., as a deliberate part of Germany’s bid for world
conquest, hampered the growth of industry and commerce of other nations
and weakened their power to defend themselves;
WHEREAS, the war-making power povt’er represented by the industries owned or
controlled by
controlled by I.
I. G.
G. FARBENINDUSTRIE
FARBENINDUSTRIE A. A. G.
G. constitutes
constitutes aa major
major threat
threat toto
post-war world so long as such industries remain
the peace and security of the post-War
within the
within the control
control ofof Germany;
Germany; .
WHEREAS, it
WHEREAS, it is
is essential
essential toto the
the objectives
objectives of
of the
the United
United Nations
Nations toto
take over the direction and control of I. G. FARBENINDUSTRIE A. G. and
to seize possession of its property in order to bring about its destruction and
the war-making potential which it represents; and
WHEREAS, it
WIIEREAS, it is
is intended
intended that
that the
the property
property seized
seized will
will be
be placed
placed at
at the
the
disposition of the Control Council (Germany), when such action is desired
by the Control Council;
IT IS HEREBY ORDERED:
1. All the property within the United States Zone in Germany owned
or controlled, directly or indirectly, by I. G. FARBENINDUSTRIE A. G., C., a
corporation organized and existing under and by virtue of the laws of Germany
with seat and head office oflice at Frankfurt a/Mnin,
a/Main, is hereby specified under para-
graph 1 (g) of Military Government Law No. 52 to be subject to seizure
of possession, direction, and control by Military Government.
2. The direction and control of I. G. FARBENINDUSTRIE A. G. and the
possession of all its property in the United States Zone are hereby seized by
the Military Governor, United States Zone.
3. Pending the assumption of control of such property by the Control Coun-
Cil, or an agency thereof, all the powers of the Military Governor, United States
cil,
Zone, with respect to the property seized pursuant hereto and with respect
to the direction and control of the corporation are hereby delegated to the
Deputy Military Governor, United States Zone. Redclcgation Redelegation of any or all
such powers is hereby authorized. In the exercise of such powers, the Deputy
Military Governor, United States Zone, or any person acting by or under
his authority with respect to the property affected hereby shall not be subject
to German law.
4. In the exercise of such powers tho the Deputy Military Governor, or any
person acting
person acting by or under his authority with respect to such property, shall

*3‘. 1-
, P"‘\-
1"-fit
 APPENDIX TWO
APPENDIX TWO ‘‘ 265
26$
be
be guided by the general objectives stated in the preamble hereof
hereof and by the
following
following specific
specific objectives,
objectives, and
and will
will take
take such
such measures
measures as
as he
he deems
deems appro-
appro-
priate
priate to
to accomplish
accomplish them:
them:
a.
a. The
The making
making available
available to
to devastated
devastated non-enemy
non-enemy countries
countries of Europe
and to
and to the
the United
United Nations,
Nations, inin accordance
accordance with with such
such programs
programs of of relief,
relief,
restitution and reparations as may be decided upon, of any of the property
restitution and reparations as may be decided upon, of any of the property
seized
seized under
under this
this order
order and,
and, in
in particular,
particular, of of laboratories,
laboratories, plants
plants and
and equip-
equip-
ment
ment which
which produce
produce chemicals,
chemicals, synthetic
synthetic petroleum
petroleum and and rubber,
rubber, magnesium
magnesium
and
and aluminum,
aluminum, otherother non-ferrous
non-ferrous metals,
metals, ironiron and
and steel,
steel, machine
machine tools
tools and
and
heavy
heavy machinery.
machinery.
b. Destruction of all property seized under this order and not transferred
under
under thethe provisions
provisions of of paragraph
paragraph a a above
above ifif adapted
adapted to to the
the production
production of of
arms,
arms, ammunition,
ammunition, poison
poison gas,
gas, explosives
explosives andand other
other implements
implements of of war,
war, or
or any
any
parts, components or ingredients designed for incorporation in the foregoing,
and
and not
not of
of a
a type
type generally
generally used
used in
in industries
industries permitted
permitted to to operate
operate within
within
Germany;
Germany; ‘-
c.
o. Dispersion of the ownership and control of such of the plants and
equipment
equipment seized
seized under
under this
this order
order asas have
have notnot been
been transferred
transferred or or destroyed
destroyed
pursuant
pursuant to
to paragraphs
paragraphs aa and
and bb above.
above.
5. a.
ct. The entire management of I. C. G. FARBENINDUSTRIE A. Al. G., in-
cluding but
cluding but not
not limited
limited toto the supervising board
the supervising board (Aufsichtsrat),
(Aufsichtsrat), the
the board
board ofof-
directors (Vorstand),
directors (Vorstand), and and directors
directors (Direktorium)
(Direktorium) and and all
all other
other persons,
persons,
whether oflice-holders or not, who are empowered, either alone or with others,
whether oilice-holders
to
to bind
bind or sign for
or sign on behalf
for on behalf of
of I. G. FARBENINDUSTRIE
I. G. FARBENINDUSTRIE A. A. G.
G. are
are forth-
forth-
.. .. w ‘ummm.

with
with removed
removed and and discharged
discharged and deprived of
and deprived of all
all authority
authority to
to act
act with
with respect
respect.
-'-v1.a-a-V
to
to the
the corporation
corporation or or its
its property.
property. -
6.
b. The
The rights
rights of
of shareholders
shareholders in in respect
respect ofof selection
selection of
of management
management or or
control
control ofof I.
I. G.
G. FARBENINDUSTRIE
FARBENINDUSTRIE A. A. G.
G. are
are suspended.
suspended.
6.
6. Article
Article IVIV of
of Military
Military Government
Government Law Law No.No. 55 shall
shall not
not be
be applicable
applicable
é to
to any
any property
property or or enterprise
enterprise affected
affected byby this
this General
General Order.
Order.
l 7. This General Order shall become eflective effective on 5 July, 1945.
ii BY ORDER
BY ORDER OF. MILITARY GOVERNMENT
OF, MILITARY GOVERNMENT
-\ t
E

C.
'5
1;

C.
Potsdam Agreement
1
V-1
H. Joint
Joint Report
Report on
on Results of the
Results of the Anglo-Soviet-American
Anglo-Soviet-American Conference
Conference
.|'!

i
(Berlin 1945)
(Berlin 1945) |
Released August 2, 1945
«mm. “kwwb- ..;- :'

Excerpts
at:
* 4-
* an
1! n:
1 u:
ll’ t
it :0-
F

-4<-1a=t-w1\.- -L‘
HI. Germany
I
> The Allied armies are in occupation of the whole of Germany and
the German people have begun to atone for the terrible crimes committed V t
4.

I
under the leadership of those whom in the hour of their success, they openly
‘l
M<+~q$.um.

approved and blindly obeyed.

Agreement has been reached at this conference on the political and
economic principles of a coordinated Allied policy toward defeated Germany
during the period of Allied control.
”.mw

.__»¢~7_-Ton- .1§|T'.iI_s-1>—v-m.u\|-n_=
\
.__A
_
 J

266 ' v‘ IG FARBEN

, to
The purpose of this agreement is to carry out the Crimea Declaration on
Germany. German militarism and Nazism will he be extirpated and the Allies
will take in agreement together, now and in the future, the other measures
necessary to assure that Germany never again will threaten her neighbors
or the peace of the world.
' It is not the intention of the Allies to destroy or enslave the German
people. It is the intention of the Allies that the German people be given
the opportunity to prepare for the eventual reconstruction of their life on
a democratic and peaceful basis. If their own efforts are steadily directed
to this end, it will be possible for them in due course to take their place
among the freetand
freeiand peaceful peoples of the world.
The text of the agreement is as follows:
The Political and Economic Principles To Govern Govern. the Treatment of
Germany in the Initial Control Period
A. Political Principles.
1. In accordance with the agreement on control machinery in Germany,
supreme authority in Germany is exercised, on instructions from their re-
Commanders-in-Chief of the armed forces of
spective governments, by the Commandersdn-Chief
the United States of America, the United Kingdom, the Union of Soviet
Socialist Republics, and the French Freach Republic, each in his own zone of occu- occu«
pation, and also jointly in matters affecting Germany as a whole, in their
capacity as members of the Control Council.
2. So far as is practicable, there shall be uniformity of treatment of
the German population throughout Germany.
3. The 1{Jl1£'p0S6$d0f1
C 3._lTl1le purposes of the occupation of Germany by which the Control
Council
ounox shall
s a hee guiguidede are: _. __
(i) The complete disarmament and demilitarization of Germany and the
elimination or control of all German industry that could be psed used for mili-
tary production. To these ends: l
(a)
(:2) All German land, naval and air forces, the S. S., 5., S. A., S. D., and
Gestapo,
G@5"1P0, with all their
with all their organizations,
organizations, stalls
staffs and institutions, including the
Oflicers’ Corps, Reserve
General Staff, the Ofilcers’ Resente Corps, military schools, war vet-
_ erans’
erans’ organizations and all other military and quasi-military organizations,
together withWllll all clubs and associations which serve to keep alive alive thethe military
military
tradition in Germany, shall be completely arid and finally abolished in such
manner
malnner as permanently to prevent the revival or reorganization of German
militarism
mi itarism and Nazism. ‘
(b) All arms, ammunition and implements of vvar war and all specialized
facilities for their production shall be held at' at‘ the disposal of the Allies
or destrqyed.
destroyed. The maintenance and production of all aircraft and all
arms,
arms; ammunition
aimncéunition and implements
ilmpléments of war shall be prevented.
(ii)
ii Too convince the t e German
erman people that they have suffered suilered a total
military defeat and that they cannot escape responsibility for what they
have brought upon themselves, since their own ruthless warfare and the
fanatical
fanaticag Nazi resistance have destroyed German economy and made chaos
and suffering
su ering inevitable.
(iii) To destroy the National Socialist Party and its affiliatedafiiliated and super-
vised organizations,‘to
organization:-!,‘t0 dissolve all Nazi institutions, to ensure that they are
not revived in any form, and to prevent all Nazi and militarist activity or or
propaganda.
 APPENDIX TWO
APPENDIX TWO 267
267
(iv) To prepare for the eventual reconstruction of German political life
on
on aa democratic
democratic basis
basis and
and for
for eventual
eventual peaceful
peaceful cooperation
cooperation in
in international
international
life by Germany.
4. All Nazi laws which provided the basis of the Hitler regime or
established discrimination on grounds of race, creed, or political opinion
shall be abolished. No such discriminations, whether legal, administrative or
otherwise
otherwise shall
shall be
be tolerated.
tolerated. -
5. .War criminals and those who have participated
participated 1n
in planning or carrying
out
out Nazi
Nazi enterprises
enterprises involving
involving or
or resulting
resulting in
in atrocities
atrocities or
or war
war crimes
crimes shall
shall
be arrested and brought to judgment. Nazi leaders, influential Nazi sup-
be arrested and brought to judgment. Nazi leaders, influential Nazi sup-
porters and high oilicials
ollicials of Nazi organizations and institutions and any
other persons dangerous to the occupation or its objectives shall be arrested
and interned.
and interned. ._
6. All members of the Nazi Party who have been more than nominal
participants in its activities and all other persons hostile to Allied purposes
shall hebe removed from public and semi-public office,oilice, and from positions
of responsibility in important private undertakings. Such persons shall be
replaced by persons who, by their political and moral qualities, are deemed
J capable of assisting in developing genuine democratic institutions in Germany.
~ 7.
7. German
German education
education shall
shall he
be so
so controlled
controlled as
as completely
completely to
to eliminate
eliminate Nazi
Nazi
and militarist doctrines and to make possible the successful development
of democratic ideas.
8. The judicial system will be reorganized in accordance with the prin-
ciples of democracy, of justice under law, and of equal rights for all citi-
zens without distinction of race, nationality or religion.
9.
9. The
The administration
administration ofof affairs
affairs in
in Germahy
Germany should
should be
be directed
directed towards
towards
the decentralization of the political
political structure and the development of local
responsibility. To this end: A \
(i) Local self- -govemment shall be restored throughout Germany on
self-government
democratic principles and in particular through elective councils as rapidly
as
as is
is consistent
consistent with
with military
military security
security and
and the
the purposes
purposes of
of military
military occupation;
occupation;
__

(ii) All democratic political parties with rights of assembly and of

.____...w_._...._.._

public discussion shall be allowed and encomaged

encouraged throughout Germany;
(iii) Representative and elective principles shall be introduced into
regional, provincial and state (land) administration as rapidly as may be
t-_. ,_. ,.
r
justified by the successful application of these principles in local self-
government;
_.

“N
(iv) For the time being no central German government shall be estab-
lished.
lished. Nothwithstanding
Nothwithstanding this,
this, however,
however, certain
certain essential
essential central
central German
German admin-
admin-
istrative departments, headed by state secretaries, shall be established,
particularly
particularly in
in the
the fields
fields of
of finance,
finance, transport,
transport, communications,
communications, foreign
foreign trade
trade
and
and industry.
industry. Such
Such departments
departments will
will act
act under
under the
the direction
direction of
of the
the Control
Control
Council.
Council.
10. Subject
-Subject to the necessity for maintaining military security, freedom
of speech, press and religion shall be permitted, and religious institutions
shall be respected. Subject likewise to the maintenance of military security,
the
the formation
formation of
of free
free trade
trade unions
unions shall
shall be
be permitted.
permitted.

B. Economic Principles. '

11.
11. In
In order
order to
to eliminate
eliminate Germany’s
Germany’s war
war potential,
potential, the
the production
production of
of arms.
arms,
ammunition and implements of war as
of war as all
well as
as well of aircraft
types of aircraft and
all types and
t1
 268
268 I lG
IG FARBEN
FARBEN
sea-going ships shall be prohibited and prevented. Production oi of metals,
chemicals, machinery and other items that are directly necessary to a war
economy
economy shallshall he
be rigidly
rigidly controlled
controlled and
and restricted
restricted to
to Germany's
Germany’s approved
approved post-
post-
war peacetime needs to meet the objectives stated in paragraph 15. Produo Produc-
tive capacity not needed for permitted production shall be removed in
accordance With with the reparations plan recommended by the Allied Commis-
sion 0non reparations and approved by the governments concerned or if not
removed shall be destroyed.
12. At the earliest practicable date, the German economy shall be de-
centralized for the purpose of eliminating the present excessive concentration
of economic power as exemplified in particular by cartels, syndicates, trusts
monOpolistic arrangements. '
and other monopolistic
13. In
I3. organizing the
In organizing the German
German economy,
economy, primary
primary emphasis
emphasis shall
shall be
be given
given
to the deve10pment
development of agriculture and peaceful domestic industries.
14. During the period of occupation Germany shall he be treated as a
single economic unit. To this end common policies shall be established in
regard
regard to:to:
(a) Mining and industrial production and allocations;
((1)
(bl Agriculture,
Agriculture, forestry
forestry and
and fishing,
fishing;
(:3)
(c) Wages,
Wages, prices
prices and
and rationing,
rationing;
(d) Import and export programs for Germany as a whole;
(6) Currency and banking, central taxation and customs;
(e)
(f) Reparation and removal of industrial war potential;
(g) Transportation and communications. f
In applying these policies account shall be taken, where appropriate,
of varying local conditions.
15.
15 Allied controls shall be imposed upon the German economy but
only to the extent necessary:
(a) To carry out programs of industrial disarmament and demilitarization,
of reparations, and of approved exports and imports.
(b) To assure the production and maintenance of goods and services
required to meet the needs of the occupying folcesiorces and displaced persons in
Germany and essential to maintain in Germany average living standards standaids not
exceeding the
exceeding the average
average ofof the
the standards
standards ofof living
living ofof European
European countries.
countries.
(European countries means all European countries excluding the United King-
dom and the Union of Soviet Socialist Republics.)
(c) To ensure in the manner determined by the Control Council the
equitable distribution
equitable distribution of
of essential
essential commodities
commodities between
between the the several
several zones
zones so
so
as to produce a balanced economy throughout Germany and reduce the need
for imports.
(d) To control German industry and all economic and financial inter-
national transactions, including exports and imports, with the" the” aim of pre-
venting
ventin g Germany
German Y from developing a war potential and of achieving the
from developing a war potential and of achieving the other
other
objectives named
objectives named herein.
herein.
(3) To control all German public or private scientific
(e) scientific bodies, research
and experimental
and experimental institutions,
institutions, laboratories,
laboratories, ct
et cetera,
cetera, connected
connected with
with economic
economic
activities.
activities.
16. In the imposition and maintenance of economic controls established
by the Control Council, German administrative machinery shall be created
and the German authorities shall be required to the fullest extent practicable
to proclaim and assume administration of such controls. Thus it he
should be

i" .r .
:-M~'n.¢"-K;
APPENDIX TWO
APPENDIX TWO t\ 269
269
brought
brought home
home to
to the
the German
German people that the
people that responsibility for
the responsibility for the
the adminis-
adminis-
tration of such controls and any break-down in these controls will rest
with themselves. Any German controls which may run counter to the objec-
tiVes of occupation will be prohibited.
tives
17. Measures shall be promptly taken:
(a) To effect essential repair of transport;
(b) To enlarge coal production;
(c) To maximize agricultural output; and
(d) To effect emergency repair of housing and essential utilities.
(J)
18. Appropriate steps shall be taken by the Control Council to exercise
control and the power of disposition over German-owued
German-owned external assets not
already
already under the control of United Nations which ”have
have taken
taken part
part in
in the
the
war against Germany.
19. Payment of reparations should leave enough reserves to enable the
German people to subsist without external assistance. In working out the
economic balance of Germany the necessary means must he be provided to
pay
pay for imports approved by the Control Council in Germany. The proceeds
of exports from current production and stocks shall be available in the
first
first place for payment for such imports. ‘_
The above clause will not apply to the equipment and products referred
to
l0 in
ill paragraphs
Paragraphs 4
4 (A)
(A) and
and 44 (B)
(B) of
of the Reparations Agreement.
the Reparations
IV. Reparations
IV. Reparations from Germany
Germany
In accordance with the Crimea decision that Germany be compelled to
compensate to the greatest possible extent for the loss and suffering that
suffering that
she has caused to the United Nations and for which the German people cannot
escape responsibility, the following agreement on reparations was reached:
he met by removals from the
1. Reparation claims of the U.S.S.R. shall be
zone of Germany occupied by the U.S.S.R. and from appropriate German
external assets.
2. The U.S.S.R. undertakes to settle the reparation claims of Poland
from its own share of reparations. '
3. The reparation claims of the United States, the United Kingdom
shall'be met from the western
and other countries entitled to reparations shallbe
zones and
zones and from
from appropriate
appropriate German
German external
external assets.
assets.
4-. In addition to the reparations to be taken by the U.S.S.R. from its
own zone of occupation, the U.S.S.R. shall receive additionally from the
western "zones:
'zones:
(A) 15 per cent of such usable and complete industrial capital equip-
ment, in the first place from the metallurgical, chemical and machine manu-
facturing industries, as is unnecessary for the German peace economy and
should be removed from the western zones of Germany, in exchange for
an equivalent
an equivalent value
value of
of food,
food, coal,
coal, potash,
potash, zinc,
zinc, timber,
timber, clay
clay products,
products, petroleum
petroleum
products, and
products, and such
such other
other commodities
commodities as as may
may bebe agreed
agreed upon.
upon.
(B) 10 per cent of such industrial capital equipment as is unnecessary
for the German
for the German peace
peace economy
economy and and should
should be be removed
removed from
from the
the western
western
zones, to be transferred to the Soviet Government on reparations account with-
out payment or
out payment or exchange
exchange ofof any
any kind
kind inin return.
return.
Removals of equipment as provided in (A) and (B) above shall be made
simultaneously.
5.
5. The
The amount
amount of
of equipment to be
equipment to be removed
removed from
from the
the western
western zones
zones on
on

.
._7,

270
270 y IG
|G FARBEN
FARBEN
if

account of reparations must ntust be determined withinwithin_ six

six months
months from
from nownow at at
the latest.
the latest.
6. Removals of industrial capital equipment.equipment, shall begin as soon as pos-
sible
s1'bl e and
and shall
shall be
be completed
completed within
within two
two years
years from
from the
the determination
determination specified
specified
in paragraph 5. The delivery of products covered by 4 (A) above shall begin
as
a s soon as possible
p0SSllJlB
' and shall he be made by the U.S.S.R. in ' agreed
Ill agreeed installments
1ns
' t a ll ntents
within five years of the date hereof. The determination of the amount and
character of the industrial ' ' capital
' equipment
cqulpment
' unnecessary forior the
the German
German
peace economye conom y and therefore available for reparations shall be made by the
he
Control Council
Control Council under
under. policies
policies
. fixed by
fixed by the
the. Allied
Allied Commossion
Commossion on 0n Repara-
Repara- h
tions,
trons,
' with the participation of France, Sl1l)_]€Ct subject to the final approval of the 1 e
zone commander in the zone from which the equipment is to be he removed.
7. Prior to the fixing of the total amount of equipment subject to
removal, advance advanca deliveries shall be made in respect of such equipment as
will be determined to be eligible for delivery in accordance with the pro-
cedure set forth in the last sentence of paragraph 6.
' 88. The Soviet Government renounces all claims in respect of reparations
to SIHICS
t0 shares
l of German enterprises which are located in the western zones of oi
occupation in Germany as well as to German foreign assets in all countries
except those specified in paragraph 9 below. ‘
9. The Governments of the United Kingdom and the United States of
America renounce their claims in respect of reparations to shares, shares of German
enterprises which are located in the eastern zone of occupation in Germany,
as
as wellwell as as to
to German
German foreign
foreign assets
assets in Bulgaria, Finland, Hungary, Rumania R umama .
and
and Eastern
Eastern Austria.
Austria.
10. The Soviet Government makes no claims to gold captured by the
Allied
Allied troops troops in in Germany.
Germany. .

’__,
 a ‘ I

V
I

‘p APPENDIX 33
APPENDIX I,
EXHIBITS FROM
SELECTED EXHIBITS
SELECTED KILGORE
FROM KILGORE
COMMITTEE REPORT ON
COMMITTEE REPORT FARBEN
IG FARBEN
ON IG

documents and
The documents
The statements in
and statements appendix are
this appendix
in this part oi
are part great
the great
of the
accumulationn of
accumulatio of evidence in Fehruary, 1946, to Senator Harley
presented in February, 1946, to Senator Harley Kil-
evidence presented Kil-
sub - committeee of
gore’ s sub—committe
gore’s U. S.
the U.
of the Senate Military Affairs Committee.
8. Senate Military Affairs Committee. The The
had been
evidence had been gathered by the
gathered by of investigators
team of
the team Colonel Bernard
under Colonel
investigators under Bernard
through the
Bernstein who broke through of secrecy
veil of
the veil surrounding
secrecy surroun mg IG
d' IG Farben in
Farben in
Germany.
EXHIBIT No. 1 (Chapter II
Exrrmrr of Kilgore
II of Report)
Committee Report)
Kilgore Committee
“Tarnung” (camouflage) of
“Tarnung" of German Agencies Abroad
German Agencies Abroad
(Translated by Dr. Kiipper)
after the
In the time after first war
the first more and
we more
war we came to
more came
and more decision
the decision
to the
selling companies,
foreign selling
to “tern” our foreign i. e., to establish such companies
companies, i. e., to establish such companies as as
of the
firms of law of
the law country concerned
the country
of the and to
concerned and distribute the
to distribute '0!
shares of
the shares
these firms
these in such
firms in way that
such aa way the participation
that the of IG
perticipation oi in these
IG in was
firms was
these firms
course of
not shown. In the course time the
of time system became
the system and more
more and
became more perfect
more perfect
according to
and was modified according conditions prevailing
the conditions
to the prevailing for the time
for the being
time being
so that even a thorough investigat
a therough investigationien could find any
not find
could not that there
material that
any material there
indirect connection with IG. This system of “Tarnung” applied prac-
an indirect
was an connectio n with 10. This system of “Tarnung ” applied prac-
to our
tically only to selling companies
our selling mixing dyestuffs,
plants mixing
companies,, plants and some’
dyestuffs, and some
pharmaceu tical factories. For
pharmaceutical rest of
the rest
For the all of
factories, all
the factories,
of the which were
of which were
companie
companiess establish
established under the
ed under law of
the law of the country concerned, the necessity
the country concerned , the necessity
of “Tarnung
“Tarnung” ” generally not given.
was not
generally was Neither the
given. Neither angle of
the angle tax situation
the tax
of the situation
other reasonehe
nor the other reasonshereinafter given prevailed
reinafter given them. A
for them.
prevailed for special case
A special case
was only Spain where thethe legislatio for the
legislationn for protection of
the protection industry forced
of industry forced
us not openly to show at least aa part
at least our participat
of our
part of ion.
participation.
The “Tarnung
“Tarnung” not only
has not
” in the past has of great
been of
only been in the
advantage in
great advantage the
commerci al and
commercial and tax situation which
tax situation figured in
which figured many millions,
in many also in
but also
millions, but in

I 27]
271 x\

_'4
 /

27_2
27,2 .V lG
IG FARBEN
FARBEN
the consequence of this war the system “Tarnung” gave us the chance in
a large scale to secure our organization, the investments, and the advance
on our outstanding claims. -.
In case of gaining this war, the mightful situation of the Reich will
In case of gaining this war, the mightful situation of the Reich will
“Tarnung.” Politically seen, it
make it necessary to reexamine the system of “Tarnuug.”
he wished that the German character of our foreign selling com-
will often be
panies is openly shown. In
ln this respect already before this war strong wishes
alter a war gained will become
of the A. O. became loud, which naturally after
a clear demand. Already now, for instance, Gauleiter Hess of the A. O. has
asked only to acquire the shares held by neutral shareholders in the
Chcmdyes, Ltd. We hereto gave detailed also written report with the result
Chemdyes,
Reichsgruppe
that such demand was taken back. The A. O. in a letter to the Reichsgruppc
“Tamung” are not liked and
Industrie also suggested that further plans of “Tarnung”
therefore refused.
therefore refused.
the system of “Tarnung”
It is therefore necessary carefully to examine tl1e
justifiable
in every respect. As fundamental principle may be stated that for justifiable
political purposes the German character of our foreign agencies should
political
not be shown everywhere where strong objections on the base of financial
reasons of national importance cannot be made and where an “Enttarnung”
reasons
(finishing of the “Tarnung”) would practically not endanger the export
to the countries in question.
I. Reasons of the “Tarnung”
“Tarr.-.ung”
(1)
(1) 0n
On the head tax reasons. The foundation of branch offices
offices or sub-
sidiaries would have
sidiaries haVe meant an establishment of IG. The taxes to he paid for
such establishments much higher than those of independent companies.
(2) The danger of war forced us to secure our organization and assets
assets
by “Tarnung."
by “Tarnung.” This system enabled us to maintain ourour selling
selling organization,
organization.
to secure our investments, and an advance on
on our outstanding claims.
our outstanding claims.
(3) In the first years alter
after the first war, the weakness of rh¢
the Rglch
Reich
made it advisable to give our selling organization the national
national character
character of
of
the country concerned.
(4) Commercial reasons also. “Tarnung” as protection against
against boycott.
boycott.
The customers
The customers preferred
preferred to buy from national
national firms.
firms.
(5) A branch office
(5) office or a subsidiary forced to show the details of IG’s IC’s
balance and profit and loss account.
office or subsidiary being under aggravated control under
(6) A branch office
the foreign currency regulations of the country concerned.
(7) The U. S. A. Antidumping Act of 1921. Price invoiced to U. U. S.
S. A.
A.
to be
to be compared with (a)
compared with (a) foreign market value or (6)
(b) price invoiced to
to
countries other than U. S. A., or (c) the cost of production.
For IG important that prices invoiced to to U.
U. S.
S. A.
A. only
only be
be compared
compared withwith
other than U. S. A. Hereto the Act
the prices invoiced to countries other than U. S. A. Hereto the Act ofof 1921
1921
says that only prices to free and independent customers can be compared.
Therefore the foundation of free and independent importers in Canada and
Australia.
Law for protection of industry in Spain. Big advantages in in respect
respect ofof
taxes and duties to national industries only, i. e., to such in which thcre there is
is
no foreign participation higher than 25%. Therefore, the the half
half of
of our
our 50%
50%
participation in the Fence given to Unicolor
participation Unicolor which
which latter,
latter, of
of course,
course, waswas
“Tamed.”
“Turned.” . ''

._.,
“"\
it
"1'
 \

APPENDIX
APPENDIX THREE
THREE I 273
273
II.
II. Reasons
Reasons of
of “Tarnung”
“Tarnung” in
in the Future
the Future
For the future
For the the following
future the reasons will
following reasons will no
no longer
longer prevail:
prevail:
(1) The securing against war losses, as there will he be a long time of
peace.
(2) The position of the Reich strong enough to protect any German
interest.
(3) Commercial reasons (boycott, etc.) not decisive.
(4-) Advantage
(4) Advantage ofof firms
firms of
of national
national character
character in
in dealing
dealing with
with the
the authori-
authori-
tics of the country concerned not so
ties So important as the political reasons which
will make the “Enttarnung” (finishing of “Tarmmg”)
"Tarnung") advisable.
For the rest the situation in every country has to be carefully examined.
(1) The U. S. A. Antidumping Act will remain. Therefore, continuing
of the “Tarnung” in Australia and Canada, just to have two free and inde-
pendent importers in these countries.
(2) The law of protection of industry in Spain will remain. Therefore,
continuing of the “Tarnung” in Spain. _.
(3) For the decision, if we may run the risk to found an establishment
(3) For the decision, if we may run the risk to found an establishment
(i. e.,
(i. e., branch
branch or
or subsidiary
subsidiary of
of IG)
10) will
will be
be important
important to
to what
what extent
extent the
the taxes
taxes
higher—
will be higher-
(a) In relation to the countries in which our proposal as to tax regulations
in the
in the peace
peace treaties
treaties will
will become
become practical
practical there
there is
is no
no need
need of
of “Tarnung."
“Tarnung.”
It will no more be necessary to show to details of IG’s 16’s balance. And the
10’s turn-over on the base of which the taxable profit of IG
percentage of IG’s 10
in such countries will be calculated will be a reasonable one. If this per-
centage will be 5%, already then, the taxes of IG to be he paid in such countries
will be
will be higher.
higher. But
But such
such aa percentage
percentage of
of 5%
5% must
must bebe considered
considered asas reasonable.
reasonable.
(5)
(b) For other countries individual examination. In those countries in
which IG10 has already to pay taxes on the reason of having an establishment
the “Tarnung” may be
“Tarnung” may be finished. Such countries
finished. Such countries are: Britain, Ireland,
Great Britain,
are: Great Ireland,
ltoumania,
lloumania, Italy, Norway, Bulgaria, Hungaria.
For a number of other countries we made
countries we made calculation of
aa calculation the amount
of the amount
in which 10 should have to pay higher taxes,
in which IG should have to pay higher taxes, if if IC would have an establish-
IG would have an establish-
ment in such countries. (As tax rate 30% of the profit, as profit 5% of
the turn-over only.)
Reichsmarks Reichsmarks
Reichsnurrks
Yugoslavia ...-....-.......-..........-......-._. 75,000
..............m..............“......,._. 75,000 Holland 108,000
.......mm................c._........“...... 108,000
Holland ......M............_......_....-..-....-
................._..........,..........,..........
Greece ................._........_.s..........-.......... 12,000
12,000 France ..........................--........._-...... 79,000
France m..........,..........,..-m......._.,...... 79,000
.................................
Switzerland ................................. 45,000
45,000 Spain ....................................................... 45,000
Spain ............................u.......................... 45,000
Denmark
Denmark ................n......-.....
._..............t......-.............___... 53,000
53,000 -—-—-——
-—-—-——
................m-.,......i.........~....,...
Sweden ...................-........,.................. 77,000
77,000 In al1............._..-..._..,._._._ 576,000
In all..........,.~.._.....,.m.__. 576,000
Belgium
Belgium ............. 72,000
72,000

Therefore considerable
Therefore considerable higher
higher taxes.
taxes. In
In the
the other
other hand
hand it
it may
may bebe
taken that our proposals as to the tax regulations in peace treaties will
become practical in relation to France, Holland and Belgium.
For British India special situation. Here foreign companies have to
pay 45% super tax instead of 6.25% for British companies. In addition the
curtaxable profit would be very high. Therefore, higher taxes
estimate of ourtaxable
in
in British
British India.
India. 1-2
1-2 million Reichsmark aa year.
million Reichsmark year. In
In addition,
addition, in
in British
British
India all details of IG’s balance would have to be given. Therefore, “Tar-
“Ter-
,..r_.
 274
274 IG FARBEN
IG FARBEN
nung” in British
nung” in British India
India would
would be continued if
be continued if there
there can’t
can’t be
be made
made the
the
following
following international
international agreements
agreements 'with
'with British
British India:
India:
(1) According to IG’s proposals as to tax regulations in peace treaties,
super tax would he
be the same as for Indian companies.
(2) No higher percentage than 5% of the’ the turn-over
tiirn-over as taxable
profit.
(3) No details of IG’s balance to be given.
Such agreement will depend on which way British India will take.
As result:
“Enttarnung” (finishing
“Enttarnung” (finishing of
of the
the “'I‘arnung”)
“Tarnung”) in in Great
Great Britain,
Britain, Ireland,
Ireland,
Italy,
Ital Y7 Hungaria,
Hungaria I Roumania,
Roumania f Bulgaria, and Norway. The same in relation
to countries to wl-tich
which our proposal as to the tax regulations in‘1n~ the peace
treaties will apply and in relation to countries under political influence
of
of the
the Reich.
Reich.
In British India, Canada, and Australia continuing 0f of the “Tanning."
“Tarniing.”
III. In What Form Will the “Enzmrnung”
“Erittarnung” Take Place
.To
_To be carefully done, especially in respect of persons who acted as
our shareholders. Tax claims for the past to be avoided. Consequences in
countries in which “Entlarnung” only
the “Tarnung” will be continued. “Enttarnung”
in such a way that the shares are officially bought from the persons acting
as
as our
our trustee
trustee at
at aa fair
fair countervalue.
countervalue. (Of
(Oi course,
course, the
the consequences
consequences in
in
taxpaying
'
taxpaying for the trustees themselves have to be regarded.) Finally it
has to be examined how to found the new establishments. No branches of
IG.-’Better
IG./Better if
if customers
customers buy
buy from
from a
a firm
'
firm with
'
with aa national
'
national name
name of
0 f the
I
tie
c oncerned than froni
country concerned from IG, the big type .of German Economy. Also
in
in relation
relation to
to foreign
foreign authorities
authorities better
better not
not to
to have
have aa branch.
branch. It
It must
must
be
be taken
taken in
in consideration
consideration also
also that
that our
our agencies
agencies sell
sell non-IG
non-IG products
pro d iicts as
as
well.
we 11 . A branch would immediately lead to taxation of IG whereas a sub-
sidiary
sidiaiy such consequences would arise after some time only. Therefore, no
branch, but
branch, but subsidiary
subsidiary of
of IG.
IG.
EXHIBIT N0.
Exmair No. 11 Chapter IV of Kilgore Committee Report
Alan: Ilgner, Dated June 18, 1945 on Assistance Given
Statement by Ii/lax
Wehrmacht, S. D., Government, and Party by Farben Abroad
Structure of the Report
A. General remarks:
I. Organization and functions of IG Berlin N. W. 7.
10 abroad.
II. Administration of the sales organizations of IG
B, O. K. W. (Wehrmacht):
I. Wehnfirtschaftsstab
Wehrwirtschaftsstab (General Thomas);
Thomas)‘:
(1)
(I) Economic
Economic ept.
ept. of IG (Volkswirtschaftliche
(Volkswirtschaftliclie Ahteilung).
Abteilung).
(2) “Vermittlungsstelle W” (Wehrwirtschaft) of IG.
II.
II. Abwehr—Abteilung
Abwehr-Abteilung (Admiral Canaris):
(1)
(1) “Abwehr
“Abwelir Organisation”
Organisation” of
of IG.
IG.
directoré
(2) Office of the commercial committee of board of. directors
(Biiro des Kaufmiinnischen
Kauimiinnischen Aneschusses).
Ausschusses).
(3) Economic Dept. of IG. '
.contacts.
(4) Other ‘contacts. \
C. S,
C, S. D.D. (Sicherheitsdienst):
(Sicherheitsdienst):
(1) “Abwehr Organisation” of IG.
(2) Reports of trips abroad and reports from abroad.

.\ .
\
U
;"‘\-<
~._i.
.
 r

l
2
5
I
APPENDIX THREE
APPENDIX THREE I
/
__ 275
275
J

(3) Bayer organization. i

(4) General contact asked in summer 1944.
19-'14.
(5) Other contacts. -
D. Assistance asked by other organizations of government and party:
I. Governmental organizations: _
(1) Foreign office:
oflice:
((1) Economic
(a) Economic Dept.
Dept. of
of Foreign
Foreign Oflice.Office.
(12) Staatssekretiir Keppler.
(b) '
(2) Ministry of propaganda: .
(a) Expert committee on foreign “matters
(o) matters (“F.-Kreis”).
Verhiinde” (incl. foreign
(b) “Vereinigung zwischenstaatlicher Verbiindc”
oflice
ofiice too).
(c) “Werberat der Deutschen Wirtschaft.”
(3) Ministry
(3) Ministry ofof economics
economics and
and ministry
ministry of of armament:
armament:
(a) Foreign
(a) Foreign department
department (Liinder-Abteilung)
(Liinder-Abteilung) of of R.
R. W.
W. M.M.
(6) Working committee for
(b) {or foreign trade-questions of the
. federations of industry and commerce (Arbeitskreis fiir Iiir
Aussenwirtschaitsfragen der
Aussenwirtschaftsfragen der Reichsgruppen
Reiehsgruppen Industrie
Industrie und
und
Handel).
(6) Imports of Molybdiin and Wolirani
(c) Wolfram and leather.
- ((1) Imports of oil from Rumiinia and rafiination
(ii) raffination in Pressburg. t
(e) Petsamo-Nickel.
(e) Petsamo-Nickel.
(4) Other
(4) Other ministries
ministries oror governmental
governmental institutions:
institutions:
(a) Ministry
(a) Ministry of of aviation:
aviation: Norway
Norway light
light metal.
metal. -_
(1)) Reicliskommissar
(b) Reichskommissar Norway: chemical industry.
(0)
(c) MilitEirbefehlshaber
Militiirbefehlshaber Frankreich:
Frankreich: chemical
chemical industry.
industry.
(d)
(ti) Militfirbefehlshaher
Militiirbefehlshaber Italien: chemical industry.
II. Auslandsorganisation der N. S. D. A. P. (A. 0.): i

(1) IG contacts with A. O. 0. in Germany.

(2) IG organizations abroad.
I ((1) Members of the A. O.
(:1)
- (b) Presidents of German clubs, etc. J,
5
i (c) Presidents of Chamber of Commerce, etc.
(0!)
(ti) Other contacts. ' P

5 A.
/1. General Remarks 4
I
i
§ 1. Organization
I. Organization and and Functions
Functions ofof IG
10 Berlin
Berlin N.N. IV.
W. 77
i
About this precise matter I have made a report, dated June 7th, which
II rendered
rendered to to Mr.
Mr. Weiss.
Weiss. To To show,
show, what
what II can
can contribute
contribute tolthis
to_this matter
matter
as
as well
well for
for myself,
myself, asas for
for my
my organization,
organization, II maymay state
state the
the following:
following:
1 IG
IG Berlin
Berlin N.N. W.
W. 7,7, reap.
resp. their
their departments
departments (9 (9 chief
chief departments
departments and and 35
35
. .R" ...._..—~H...__......... .I.

F
subdepartments)
subdepartrnents) exercised help functions
exercised help the sales
for the
functions for organizations and
sales organizations and
partly
partly also
also for
for the
the factories;
factories; nono decisions
decisions on
on sales
sales as'well
as'well as as onon fabrication
fabrication
were made by IG Berlin N. W. 7. The 9 chief departments were headed
._-.~ a-_. -_. by
by dept.
dept. directors
directors oror procurists
procurists oror persons
persons in
in the
the same
same rank
rank (like
(like Kriiger—
Kriiger—
up
up to to the
the middle
middle of of 44-Fahle,
44--Fahle, Terhaar,
Terhaar, Reithinger,
Reithinger, M. M. Passarge,
Passarge, and and
I
I others). I, myself, had a largely extended knowledge of IG-but—as IG-but——as too
much—not
much-not going going myself
myself to to details
details (except
(except those
those matters
matters II handled
handled 'per-
i sonally
sonally (see
(see report
report ofof 7-6-45),
7-6-45), 11150
also because
because sinCe
since 1928
1928 normally
normally half
per-
half of
of
the
the year
year being
being outside
outside ofof Germany
Germany or—7once—being
or-7once—-being aa huglong time
time ill
ill (1939-40)
(1939-40) ).).

t
A A
 276
276 IG FARBEN
IG FARBEN
II. Administration
II. Administratibn ofof the
the Sales
Sales Organizations
Organizations of
of IG
10 Abroad
Abroad
About this matter I have reported in my report of 26-5-45. I will only
repeat the most important facts, as far as this report is concerned. The
administratibn of
administration of the
the sales organization abroad
sales organization abroad belonged
belonged to
to the
the field
field ofof
activity resp. responsibility of the chiefs of the “Verkaufsgemeinschaften"
activity resp. responsibility of the chiefs of the “Verkaufsgemeinschaften"
(sales organizations of IO),
IG), the sales directors, and the counsels of the
sales organization. The names are the following:
Dyes: v. Schnitzler, Kugler, Kéihler,
Kiihler, Overhoif, v. Briining, and others“-
others-—
Kiipper.
Kiipper.
Chemicals: v. Schnitzler, Haefliger,
Haeiliger, Borgwardt, v. Heider, and others—
others-
Stein.
Pharmaceut.: Mann, Martens,
Miirtens, Grebe},
Grobel, Zahn, and others—Briiggemann.
Agfa: Otto, van Beck, Uh], and others—Deissmann.
Nitrogen:1 Oster, Hanser,
Nitrogen? Hauser, Kriiger (since middle of 44)—Nitrogen-Synd.
4-4)—Nitrogen-Synd.
CH1:a
Oil:’ Biitefisch, Fischer (until he entered the Min. of Economics)”
Economics)-'
T ‘\ 12..
B. J 0.K.IV.
0.K.W. (Wehrmacht)
(Wehrmacht)
I. Wehrwirtschaftsstab
I, Wehrwz'rtschaftsstab (General Thomes)
Thomas)
This contact is an old one and goes back to the “Heereswaffenamt,”
“HeereswafIcnamt,”
“Wehrwirtschaftsstab.”
which existed before the “Wehrwirtsehaftsstab.” In the year 1930 (2’)
('?)
Ceheimrat Lederer
Ceheimrat Ledercr introduced me to the chief of the Heereswaflenamt,
Ileereswaflenamt, Gen-
Cen-
eral v. Bockelberg, Thomas then being a captain. The introduction of
eral v. of
Leunagasolin
Leunagasolin in the German market in the years 1930-32 was strongly
supported
supported by this organization. After Bockelberg left, General Liese came
aide-de-camp Thomas was then, and afterwards the Wehrwirtschaitsstab
whose aide-cle-camp Wehrwirtschaftsstah
under Thomas was formed. When I became Wehrwirtschftsfiihrer
Wehmirtschftsfiihrer in 1938,
Thomas asked me the specific support of the Economic Dept. of IG, 1G, but
but
it Was
was only done in 1939 (when I was absent absent on
on account
account ofof a serious
a serious:
heart trouble) by my substitute Dr. Kriiger. Kriiger made in 1939 his
reserve-officcr practice in the organization of Thomas (as (as well
well asas Dr.
Dr.
v. d. Heyde, the Abwehrbeauftragte
Ahwehrbeauftragte for my organization; but it is possible
it is possible
that the practice of v. d. Ileyde
Heyde was only during the war). Kriiger estab- estab-
lished the contact between the Wehrwirtschaftsstab
Wehnvirtschaftsstab and Dr. Reithinger,
Dr. Reithinger,
reap. the economic dept. of ‘IG; v. d. Heyde was also introduced by Kriiger,
Icsp.
resp. automatically
resp. automatically concerned in this contact.
contact. J
,(1) Economic Dept. of IG
(1) Economic [G (Volkswirtschaltliche
(Volkswirtschaltliche Abteilung)
Abteilung) (Dr. Reithinger)
Reithinger)
interesting information
All reports and interesting information had to be given to to the
the Wehrwirt-
Wehrwirt-
schaftsst
schaftsstab;ab; these reports--how
reporte—how the selection was made made in detail, II don't
in detail, don’t
knowa—b
know-7-basedased on all foreign reports, which IG IG Berlin
Berlin N.
N. W.W. 7.7. received
received
in
in the current course
the current course of business, incl. the reports of the IG Verbindungs-
Verhindungs-
‘I‘niinner, statistical Dept., Chemnyco
miinner, other statistical Chemnyco (see my report Versailles,
Versailles, 10.5.45:
10.5.45:
Die Rieseher
"Die ichte von Dr. M. Ilgner, die Volkswirtschaitl.
Rieseberichte Volkswirtschaftl. Abteilung
Abteilung undund
die Presseste lle der IG”)
Pressestelle 1G”) and also on the material of my own cum reports
reports on
on
foreign trips. In addition to this I had given to‘ to' Reithinger
Reithinger freedom
freedom of dis-
of dis-
Position —also to a certain extent financial
P0sition—-also financial1y——to
ly—to secure himself foreign col-
laborator
laboratorss outside IG as the “Institut fiir"Weltwirtschaft”
fiir"Weltwirtschaft" in in Kiel
Kiel
(Prof.
(Prof.

lMostly chemicals sales organizations

‘Mostly used the dyes and chemicals organizations of
of IG.
IO.
S h'l' N0
S h_l' No export
export from
from Germany,
Germany, but purchase?»
purchases in Rumania
Rumania and sales in C. S. R.
c 1 er.

-*1",
.-‘'1
-¢-

' -»-;.-
 I

,APPENDIX THREE
APPENDIX THREE ,_ .. -- 277
277
Prediihl), and
Prediihl), and the
the “Institut
“Institut fiir
fiir Konjunkturforschung"
Konjunkturforschung" (Prof.
(Prof. Wagemann)
Wagemann) in in
order to save time as well as to get more material; especially during the
war, when the organization of the economic dept. became always smaller by
men going to army, this was a certain help. By giving Reithingcr and
his associates in their work free hand in every respect, the high standard
of the independent work was reached; This naturally had on the other
side the
side the consequence
consequence that
that all
all authorities
authorities were
Were very
very keen
keen to
to get
get the
the reports
reports
and the cooperation of the economic dept. In the beginning of the war
there were four ministries resp. governmental organizations, they wanted to
take over, the economic dept. as a whole, but as there was only one eco-
10, it had to stay with IG. The four were: Economic dept.
nomic dept. of IG,
Office, Ministry of Economics (foreign dept.),
of the Foreign Office, dept), Ministry of
Agriculture, and “Wehrwirtschaftsstab.” During the war all kind of sta- stu-
tistics, economic information, etc. came in by help of Bayer organization
in Portugal and partly by the Pressestelle of IG-Reithinger, from time to
time, sent me a list of those reports he resp. the economic dept. had
warwon demand of the Wehrwirtschaftsstab.
made—during the war-——-on
(2) “Vermittungsstelle W" IV" (Wehrwirtschaft), Berlin S. IV. W. Kochstr. (Dr.
Dicckmann, Dr. Gorr)
Dieckmrmn, Corr) ~v~
The following directors of IG were responsible for this department:
Sparte II (nitrogen,
Sparte (nitrogen, gasolin)
gasolin) Schneider,
Schneider, Biitefisch,
Biitefisch, Sparte
Sparte II
II (dyes,
(dyes, chemicals,
chemicals.
Ilfirlein,
buna, pharmaceuticals) ter Meer, Iliirlein, Ambros, Wurster, Sparte III
Gajewaki, Kleine.
(Agfa-film, photo, fibres, artificial silk) Gajewski,
This organization originally was formed to avoid that important tech-
nical know-how and patents from the point of view of armament were
given to foreign countries (“Industrieverschleppung”).
1 What precise contact this organization had later on to the Wehrwirt-
schaftsstab resp.
schaftsstab resp. Ministry
Ministry ofof Armament,
Armament, especially
especially during
during the
the war,
war, II dodo
not know. '
II. Abwehr-Abteilung
U. Abwehr-Abteiltmg (Admiral
(Admiral Canaris)
Canan's)
II made
made thethe acquaintance
acquaintance of of Major
Major Bloch
Bloch (then he was
(then he was aa captain)
captain) by hy
the general
the general secretary
secretary ofof the
the Mitteleuropiiischen
Mitteleumpiiischen Wirtschaftstag
Wirtschaftstag Dr.
Dr. Hahn,
Ilahn,
who
who was
was aa friend
friend of
of Bloch
Bloch (in
(in 1931
1931 or
or 32
32 ?).
?). II saw
saw Bloch
Bloch in
in the
the following
following
= years occasionally especially at the general meetings of the Mitteleuropiiische
Wirtschaftstag
Wirtschaftstag (president
(president Baron
Baron v. v. Wilmowsky, myself becoming
Wilmowsky, myself becoming aa vicevice
president in 1938); after Hahn died in 1939, Dr. Dietrich became general
secretary, but I don’t know in which specific contact he was with Bloch.
Baron
Baron v.
v. Wilmowsky,
Wilmowsky, II know,
know, stood
stood in
in aa friendly
friendly relation
relation to
to C01.
Col. Picken-
Pieken-
brock, whOm
whom myself met only once on occasion of a dinner party arranged
by
by Dr.
Dr. Krfiger
Kriiger and
and Dr.
Dr. Fahle,
Fable, short
short before
before Piekenhrock
Piekenbrock andand BlochJ-both
4
I Bloch-'-both
being
being at
at present,
present, also
also aa third
third officer
officer (name
(name £0rgotten)-——le{t
forgotten)-—-left the
the “Ahwehr-
“AbWBhI'-
Ahteilung”
Abteilung” and
and took
took over
over military
military commands
commands in in the
the army
army (1943
(1943 oror 44
44 '3).
'?).
The
The other
other men
men (except
(except one
one (see
(see 4.)
4-.) but
but name
name forgotten
forgotten (page
(page 6)6) espe-
espe-
cially
cially Canaris,
Canaris, II never
never met.
met.
(1)
(1) “Abwehr-Organisation”
“Abwe/tr-Organisation” of of 10
IG
Originally,
Originally, before
before 1933,
1933, there
there was
was anan "Abwehr-Organisntion”
"Abwehr-Organisation" in in Lever-
Lever-
kusen
kusen but
but after 1933 the
after 1933 the party
party did
did not
not consider
consider this
this suflicient
sulficient and
and in
in the
the
IG
IG asas well
well in
in the
the whole
whole of
of business
business life
life in
in Germany
Germany aa new new “Abwehr-
“Abwehr-
Organisation” was introduced.
In
In every
every factory
factory as
as well
well asas in
in every
every other
other organization-u-also
organization--also inin mine—
rnine—-
 — ---.‘.-.--v----Y _---_._-V

278
273 IG FARBEN
IG FARBEN
nominated in
wefe nominated
Abwehrheauftragte were
Abwehrbcauitragte appointed by
'resp. appointed
in 'resp. the party
by the resp.
party resp.
S. D.
5_ D, This was in my
in my own
own organizati on
organization v.
v. d.
cl. IIeyde,
Ileyde, Rfidiger
Riidigcr later
later on
on
his place
taking his
taking when v.
place when d. Ileyde
v. d. went to
Heyde went army. As IG was so
the army. As IG was so great
to the great
and there were so many
were so “Abwehrbeauftragte” of
many “Abwehrbeauftragte" IG, the
of IG, Abwehr-Abteilung
the Abwehr-Abteilung
the O.
of the
of K. W.
0. K. (and S.
W. (and D.?) wanted
S. D.'?) “Hauptabwehrbeauftragte”
so-called “Hanptabwehrbeauftragte"
wanted aa so-called
should be
who should
who be on the top
on the top oi “AbwehrbeauitragtefhAt this
all “Abwehrbeauitragte.”_.At
of all Fahle
time, Fahle
this time,
told me
told that the
me that men of
the men the dept.
of the would like
Canaris would
dept. Canaris to see
like to see him ashim as
HauptshWehrbeauftragter and
Hauptahwehrbeauftragter communicated this
and II ‘communicated this to Knieriem, as
v. Knieriem,
to v. knew
as II knew
that this
that would be
matter would
this matter discussed in
be discussed the executive
in the of the
committee of the board
executive committee board
of IG, v. Knieriem being
v. Knieriem member of
being aa member of the committee. But
executive committee.
the executive But thethe
executive committee
executive committee, , after
after the
the whole
whole matter
matter was
was delayed
delayed by
by Schmitz
Schmitz {or
for
months to
months vexation oi
the vexation
to the the O.
of the 0. K. “7., did
K. W., not accept
did not propositio
this proposition,
accept this n,
deciding it
deciding should be
it should member of
he aa member of the institution of
highest institution
the highest of IGIG (as(as itit
was a very delicate mission), that means means of the executive
of the committee of
executive committee of
[G and Dr.
IG Leuna, was
Schneider, Leuna,
Dr. Schneider, proposed to
was proposed Ahwehr by
the Abwehr
to the Schmitz and
by Schmitz and
later on
later accepted (I
on accepted (I dodo not know whether
not know by S.
also by
whether also S. D. presumably).
but presumably).
D. but
Schneider organized
Schncidgr Qrganized the
the “Abteilun
“Abteilung g A”
A” (Abwehr)
(Abwehr) for
for his,
his, current
current contact
contact
to the
to “Abwehr”; this
the “Abwehr”; department was
this department located in the same
was located in the same house, as house, the
as the
“Vermittlungsstelle W,"
“Vermittlungsstelle Berlin S.
W,” Berlin S. W. Kochstr. In
W. Kochstr. departmen Dr.
this department
In this t Dr.
Dieckman
Dieckmann n was
was in
in charge
charge of
of all
all technical
technical matters
matters and
and Dr.
Dr. v. d.
v. Heyde of
d. Heyde of
matters, Dr.
commercial matters,
111 commercial Riidiger being his substitute. About
Dr. Riidiger being his substitute. About the work the work
3f this
Jf department II have
this department have no knowledge.
no knowledge.
(2) Office
Ofiice of the the commercial committee of
commercial committee board of
of board directors. (Biiro
of directors. des
(Biiro dos
Kaiifmannischen Ausschusses.)
Kaiifmannischen Ausschusses.)
reports of
interesting reports
All interesting
All the IG
of the Verhindungsmiinner had
IG Verbindungsmiinner had to given
be given
to be
:0 the
to Abwehr and
the Ahwehr once asked
Bloch once
Major Bloch
and Major asked me me to make the
to make personal
the personal
acquaintance Qf
ggquaintancg of the Verbindungsmiinner. if 0116
the IG V8I'lJlH(ll.lI1gSl'l'li:lI'1I16I', the Olllfll‘
or the
one OI‘ should
other Sl‘l0Hl(l
3e on
Je trip in
on aa trip Germany. II told
in Germany. Bloch—-this must
told Bloch-—~this must have been in 1935
have been in 1935 or or
?-——-that the
L936 ?-—-that
L936 committee of
commercial committee
the commercial of IGIG hadhad the hesitations
greatest hesitations
the greatest
)f every
)f every kindkind of cooperation, if
of cooperation, not strictly
if not strictly asked and also
asked and only
then only
also then
n field of
very field
the very
11 the current business
of current reports and
business reports coming up
matters coming
and matters in
up in
he normal
he course of
normal course aflairs; Bloch
of ailairs; understood this
Bloch understood this and agreed. II informed
and agreed. informed
he oifice
he office of committee (Fable,
commercial committee
the commercial
of the (Fable, G. Schiller, Schwarte,
G. Schiller, Saxer,
Schwarte, Saxer,
1nd others)
and which took
others) which contact with
over contact
took over with BlochBloch on this line;
on this whether
line; whether
Verbindungsmiinner, II can’t
3100}: has seen IG Verbindungsmiinner,
310011 besides Mr.
remember besides
can’t remember W.
Mr. W.
Schmidt from Siam.
[3) Economic Dept. of IG
I3) IO _. '
The Abwehr wanted to have, like the Wehrwirtschaitsstab
Wehrwirtschaftsstab all interest-
ng reports
ng reports from
from abroad
abroad and
and theythey also
also were
were interested
interested in
in the
the question-
question-
naires
iaires of the Econ. dept. as already before the Economic Dept. of the
I‘oreign Office
-"oreign Office as well as the A. O. 0. I repeated to Major Bloch--it
Blochm—it was the
ame
amc conversation concerning the above-mentioned questions to the oiiice office
bf
ti the commercial committee—that he could get only informations, they
mm
:ame to us in the current business organization and that 10 IG Would
would not
we
re able-—-in
able--in respect to the standing of IG abroad—to cooperate in any
.ther way. It
»ther way. It was
was aa matter
matter ofof fact that IG informations—only in the current
reports—were
ray of reports——were so complete, that IG could avoid -to to leave the line
business information. That this high standard of information
f current husiness
i the Economic Dept. was also a great advantage for the business deci-
ions, I have shown in my additional report of the 23rd May 1945 re “The ‘\

\
 -o
-n

APPENDIX THREE
APPENDIX THREE '' 279
279
Economic Dept.
Economic and the
Dept. and of the
devaluation of
the devaluation 1933.” The
in 1933.”
the $$ in Dept.
Economic Dept.
The Economic
of the IG
of the the best
was the
IG was most complete'
and most
best and private‘ economic
complete private‘ dept. in
economic dept. in
Germany-this can
Germany—this can be assumed--and how
be assumed—and how rich
rich was the material
was the this
of this
material of
department has
flepartment has been shown by the publication of the Econ. Dept. of IG
been shown by the publication of the Econ. Dept. of IG
in the years
m 1929-32 (four
years 1929-32 Elementary comparison
volumes: Elementary
(four volumes: between the
comparison between the
United States of of America, England, France,
America, England, Germany); in
and Germany);
Italy, and
France, Italy, in this
this
work
Work Prof.
Prof. Richard
Richard von
von MoellendoriI—the
Moellendori"f—the economic
economic adviser
adviser of
of the
the Economic
Economic
in some
Dept. of
Dept. was largely
IG, was
of IO, and it
participating and
largely participating can be
it can be considered
considered in some
way
“RY as as aa standard
standard work.
work.

(4) Other contac

(4) Other contacts ts with
with the Abwchr-Abteilung
the Abwehr-Abteilung __
was on basis
retainer basis with
on aa retainer with IG since
(a) W.
(ti) W. ii. Fliigge.—Fliigge was
1:. Fliigge.—Fliigge IG since
n (soya
Plan); he he was promoting man
was aa promoting in the
man in the Balkan Balka
1931-32 (Wagemann Plan);
1931-32 (Wagcmann (soya
Rumania and
in Rumania Bulgaria and
and Bulgaria minerals). As
and minerals). As a half—Jew it
culture in
bean culture a half-Jew it
protect him
to protect him in Balkan and
the Balkan
in the and so Kriiger arranged
so Kriiger arranged with
difficult to
Was difficult with
to gogo to (export-fostering); Fliigge
Turkey (export-fostering);
to Turkey Fliigge made made large reports
him in 1939 to
in 1939 large reports
others also to
Economic Dept.
the Economic which went
Dept. which consequently amongst
went consequently amongst others
to the
to
interested in his
also to
which in this way becam e partic ularly
Abwehr-Abt.
the Abwelu-.Abt, which in this way became particularly
he
interested
was put in con-
in his
in contac t with von Papen . 1944-
was in contact with von Papen. 1944- he was putwein could
reports. Fliigge was
l”tiports. Fliigge con-
Gestapo; he
the Gestapo; he was visited by
was visited Saxer, but
by Saxer,
.centratiOn camp ‘by
centration ‘by the but we could
not get
not get him free.
him free. before 1933 on a
Lersner was since long
already since
was already years before
long years
(.5) Baron oo, Lersner
(5) 1933 on a
of IG *(this being
IO "(this arranged by
being arranged by the the late president of IQ
late president
retainer basis of.
retainer of IG
l
Bosch who who was was I1a good friend of
good friend of Lersner). Lersner being also
Geheimu‘tt Bosch
Gcheimi-at Lersner). Lersner being
and--I guess also—
went also also to Turkey in
to Turkey order to
in order to be protected and--I
be protected
half-Jew went
a half-Jew this guess-
countr y.
friend, von
close friend, became an
Papen, became
von Papen, an am ambasb sador in
d ° this co nt
because his
because his close assa in Lersneru sent
arranged by r durin g my
Kriige during my illness in
by Kriiger illnes s in_ or
1939. ry.
This all was arranged
all was 1939. Lersner sent
(Stimmungsberichte)-—more to to do soraethmg for the money—
do something
month
m ontll reports (Stimmungsbericlite)-more
ilyy reports forof thethe money-
Foreign
s went— if I remem ber right wto Weizsacket of
and these reportsreport went-—if I remember right--to Weizsacker of the Foreign
the Foreign
by himhim to to the Ahwehr and
the Ahwehr and the Economic Dept.
the Economic Dept. of
Offica- and
Oilice and by the Foreign
Office (?); IG
Oilice 16 got a coPY-
got a cop?» .
_ _ - . ‘, .
_
organization. and
my organization,‘ during the
and during the war—
OecklZ was
(c) Deck employee of
was an employee of my war- r.
(c)
for a while
_ a comm and to the Ahweh
(Sonderfiiln ‘er)-—
soldier (S0nde1'fiih1'er)—-got
as 11a soldier —got for a while a command to the Abwehr.
told me that I1:1 Col.
me that Lieutenant of
Col. Lieutenant of the “Ahwehr-
1-O ne day he ca
.Qne cameme to me and
to me and told speak
theto“Abwehr-
me on
Abteilung” (see
Abteflung» (see page _5) (name
page _5) forgot
(name forgotten) ten) wante d to
wanted to speak to me on
I.did not Portu
know Portugal
not know gal at all, I saw this man;
account of
account Portugal; even
of Portugal; even I,d1d at all, I saw this man;
about IG
know about oi-ganization in_
IG organization Portugal, but as I know
in. Portugal,
wanted to to know
in Lisbon Osenberg I only
he wanted but as I knew
really nothi ngflev en the IG Verbm dungs moann
really nothing-—even the IG Verbindiingsrnann in Lisbon Usenberg
far as
had—as far remeImber “
only
as II remember...
lunch in Berlin-—the
met once at luneh conversation had—as
Berlin—the conversation
afterwards has has been asked, I do not
somebody else
Whether somebody
result. Whether else afterwards
no result.
remem ber. I tell this all becau been
se asked, I have
I do
Versailles
in Versailles not
know 1-e5p_
know t
canno remember. I tell this all because
reap. II cannot in I have
asked on account of
on account of Mr. Usenherg, but
Mr. Usenberg, couldn't tell more.
but II couldn't
been asked
been tell more.later on
‘and
(d) employee of my
an employee.of organization ‘and
my organization
(d) Kiigler
Kiigler was also an
war he
the war
later on
he became a soldier
Verbindungsmfinn in
IG Verbindungsmann in Bukarest. During the
Bukarest. During
IG
Ahwehrahteilung. But
the Abwehrabteilung.
to the
became a
on he partly
later on
But later w”
soldier
and also command to
got aa command
also got he partly ess—
was
of duty,
free of so he_was
duty, so always at
he was always at. my disposition if
my disposition if II was busin
on business__-
was on
in Bukare st. One day Kfigle r asked
industrial—committee—questions in Bukarest. One day Kiigler asked
or industrial--committee—questions
or
and as
leave and as he going W
was 39""!
he was Turkey, ho
to _Tl11‘l<BY. he had to confess to me for
had to
for aa leave
for confess conce
to merning
Abwehr concerning
for
the first time that he had
that he an special
had an order of
special order the
of the Abwehr
was under
he was
as be parol, II won't
under parol, to
like to
won’t like ask him precise.
insist to
Turkey; as
Turkey; insist to ask him pi-¢ei5¢_
Kiigler missed
that Iéiigler
time that his
missed his functi ons with me.
with me,
Was the only time
This was functions
I
,-._.-_--T-
J

280
280 ~- IG FARBEN
IG FARBEN
(c) Hungarian officer
(e) ofiicer (captain, ?).mOnce—about
'?).--—Once—-about 1942-43—at
1942-43--at a meet-
ing oi
ing of the
the Mittleleuropiiische
Mittleleuropfiische Wirtschaftstag,
Wirtschaftstag, Major
Major Bloch
Bloch came
came to
to me
me and
and
asked me whether I could give a job in private business in Budapest that
means in the IG- IG organization to an Hungarian embassy in Ankara and
who was helpful to him; but now this men had to leave Ankara and it
would be neither agreeable for him to stay in Berlin. On my next stay
in
in Budapest,
Budapest, II asked
asked Mr.
Mr. Deyhle
Deyhle of
of the
the Budanil
Budanil whether
whether he
he could
could give
give
this
this man
man aa chance
chance to
to settle
settle down,
down, but
but there
there was
was none;
none; so
so II asked
asked Prof.
Prof.
Surany-Unger of the Hungarian group of the Mitteleuropiiische Wirt- Witt-
schaftstag, but there was also no possibility. In the meantime I was informed
that it was no more necessary because this man got some other job. Then
I have never heard 'of
bf this matter; the name I can’t remember.
l 6.
C. e
& s.
S. D.
D. (Sicherheitsdienst)
(Sicherheitsdiemt)
,1 (1) Abwehr-Organisation of [G IG
// This
This was
was the
the same
same organization
organization as
as for.the
for,the 0.
O. K.
K. W.
W. There
There was
was a
a
double organization in government and party, which were put together after
the 20th of July 44, the 0. O. K. W. coming under the command of the S. S.
The
The Abwehrbeauftragte,
Abwehrbeauftragte, who
who was
was appointed
appointed by
by the
the S.
S. S.
S. for
for my
my own
own
organization
organization was, as already mentioned, Dr. v. d. Heyde: Heyde; he belonged in
the same time to the dept. A (I-Iauptabwehrheauftmgter).
(Hauptabwehrbeauftragter). v. d. Heyde himself
was an S. S. man and member of the S. D.; the latter fact I never was
officially
otlicially told, but I am sure, he was. I also am sure that v. d. Heyde was
ordered to watch me, like some others, and to report on me; but about
all these things,
things’, it was absolutely impossible to see quite clear.
(2) Reports of trips abroad and reports from abroad
So
S0 far as I remember, the S. D. was the first, who asked reports to
get from trips abroad, if exit permit was wanted as'a condition sine qua non;
later on practically all authorities concerned did it, if they thought it was
worth while to ask for such reports. In my organization, v. d. Heyde and
later on Rfidiger
Riidiger were the men, who got the order from the S. D. to look
after these things, especially also to look after all other reports coming
in from abroad (IG(16 Verbindungsmiinner,
Verbindungsméinner, reports from me like Fliigge and
others) to be rendered to the S. D.; I passed the order to my associates
resp. the different departments!
departments‘ concerned.
Baycrssales organization abroad
(3) Bayehsales i
I was told together with some other colleagues from BiitefischBiitefiseh in
summer 1944 (see 4),4-), that on his recommendation the S. D. had made an
attempt of cooperation with .the the IG abroad and—as
and—-as Biitefisch regarded
Bayer to have the best organized sales organization abroad—this attempt
was made with Bayer. As Biitefisch told us, this whole question came up,
when again in the S. S. circles—Biitefisch
circles»-Biitefisch was a member of the S. S. and
belonged to a circle of businessmen, which was called “Himmler-Kreis”
“Himmler-Kreis"
and to whom belonged men like Flick, Rasche, Rostey, Rostcy, and others and
whose manager was a man named Kranefuss—heavy
Kraneiuss—heavy attacks on IG were
brought up, especially of non-cooperation with the S. S. and S. D. The
result of this attempt with Bayer organ, was said to be a failure or at least
not that, what the S. S. resp. S. D. expected. As I otherwise have never
heard of this cooperation—also Mann has never said anything about it“ it--
I can’t
can't say, how the cooperation was made. Only during the war all kind

"'\§
~-‘st
I1
‘ .3
ed‘
 APPENDIX THREE.
APPENDIX THREE. 281
281
of newspapers and other informations came in by the Bayer organization in
Portugal as already mentioned and this might have been connected with
the aforesaid.
the aforesaid.
0n the same occasion, when Biitefisch told us in Heidelberg~Schmitz,
On Heidelberg--Schmitz,
it Schneider, Oster, and myself—the aforesaid matter concerning Bayer, he
.——_m -+-"

is rendered the desire of Schellenberg of the S. D. to Schmitz, to have #1$1

i. general talk with him. Schmitz tried to escape and—as
and--as it had been spoken
ii of contacts abroad and general ‘economics—he
‘economics—-he asked me, to take up contact
I with Schellenberg in Berlin (Schmitz always remaining in Heidelberg).
I ordered my secretariat to ring up the office of Schellenberg (whom I
_ ._..._....W-w

never have met or talked to) and tell him, that Schmitz had asked me
on his behalf to talk to him (in order to find out, what he really wanted).
I got no answer; as time'
time past and next IG meetings were expected to
take place in Heidelberg in short time, I wrote a short note to Schellenberg,
repeating my instruction received by Schmitz; no answer
-answer again. Then the
[0
IG meeting
meeting took
took place
place and Biitefisch very
and Biitefisch very concerned,
concerned, reported
reported that
that the
the
S. 5.
S. people resp. Schellenberg were furious about the whole. They wanted
to
to see
see Schmitz
Schmitz and
and they
they did
did not
not want
want to
to see
see me
me atat all
all (perhaps
(perhaps my
my
economic department was considered to be interesting) and now they asked
ultimatively, whether Schmitz was ready to see him or not. Schmitz did
not want to be alone, when Schellenherg
Schellenberg would come and wanted to have
Biitefisch (for patent-questions) Schneider (as Hauptabwehrbeaultragter)
Hauptabwehrheauftragter)
and me (for foreign economic questions) with him; hut but Biitefisch was
already told, that Schellenherg
Sehellenherg wanted definitely to see Schmitz alone,
perhaps together with Biitefisch;
Biitefisch; later on there might be an conversation
including 113
us others. Biitefisch at the end was asked to tell Schellenberg,
that Schmitz was not in the position to come to Berlin and that he was
willing to receive Schellenberg in Heidelberg. In the meantime came the
20th of July 1944
1944- and the S. D. was tied up in this matter, so the IG
question never came up again and nothing was done.
(5) Other contacts with the S. D.
(a) In a new report: “My position to the national socialism and to
the international
the international cooperation,” who will
cooperation,” who will be
be ready
ready in
in two
two days,
days, II will
will report
report
in
in an
an article:
article: “personnel
“personnel dificulties
difliculties by
by the
the party
party and
and the
the S.
S. S.”
S." about
about con-
con-
tacts I had with the Gestapo reap.
resp. the S. D., in order to get exit permit
for my wife, to visit her mother in'
in" Sweden, both being Swedish, resp. Swedish
born.
born. In
In this
this connection
connection II asked
asked also,
also, when
when nothing
nothing helped,
helped, my
my former
former
associate
associate in
in the
the IG
IG Neubacher
Neubacher toto write
write to
to Kaltenhrunner,
Kaltenbrunner, as
as II had
had no
no
contact, in order to help me after tWO
two years of refuse to get the per-
. mmwfiwmm nu. .r)...‘ ......."< u.

mission for my wife, especially as my mother-in-law was seriously sick,

quite
quite alone
alone and
and became
became 70
70 years
years old;
old; but
but nevertheless:
nevertheless: no
no result.
result. II also‘
also
talked thto Dr. Jury with whom I had to do occasionally on account of oi the
‘.>|—w'_-1:s.Wu<=§Qw¢)_»g.+-':~\‘la=w.nt_r-»,A4;.-—'agnu~_. .‘,

Donau Chemie A. G., Vienna and he promised to write to Kaltenhrunner,

Kaltenbrunner,
also no result. In the meantime the German minister in Stockholm had
on
on demand
demand of of my
my mother-in-law
mdther-in-law by
by Swedish
Swedish friends—without
friends—-without myself
myself knowing
knowing
new- ~.- _,_¢.,¢,...
it—-
it—- also
also written
written ti)
to the
the S.
S. D.
D. by the way
by the way over
over the
the foreign
foreign oflice;
office; again
again
no result. Then I was advised, to see Prof. Schmidt, whom I knew from
4
Vienna, as he still was Cauwirtschaftsberater
Gauwirtschaitsberater to Jury, and who now was
i 1 in the department of Schellenherg.
Schellenberg. When I saw Schmidt, he told me that
I I had a very bad atmosphere in the S. D. and he could not make me any
hope. When I left the house of the S. D. in which Prof. Schmidt had his
I

\
6

\
;,__

22 88 22 IG FARBEN
IG FARBEN
office, Dr.
oflice, Dr. Ruperti
Rupetti of
of the
the Allianz
Allianz came
came toto me—~I
me—I knew
knew Ruperti
Ruperti from
from the
the
F.-Kreis (ministry
F.-Kreis (ministry of
of propaganda
propaganda in in the
the years
years 1933-34-)—~and
1933-34)—~and toldtold me,
me, that
that
he knew
he knew about
about my
my difiiculties
difiiculties and
and he
he was
was willing
willing to
to try
try to"
to‘ help
help me.me. He
He
came to
came to me
me and
and told
told me
me that
that the
the S.
S. D.
D. suspected
suspected me
me inin every
every respect
respect onon
account of
account of my
my engaging
engaging former
former generals,
generals, half-Jewish
half—Jewish having
having leftleft official
official
positions, because I was not willing to cooperate and so on. My “Abwehr-
beauftragter” (Riidiger
beauftragter” (Riidiger (v.
(v. d.
d. I-Ieyde
I-Ieyde being
being at
at this
this time
time with
with the
the army)
army)
was toosmall
was toosmall caliber
caliber and
and they
they wanted
wanted to
to have
have a a bigger
bigger man.
man. Nevertheless
Nevertheless
also Ruperti made a hopeless impression (this was early in
also Ruperti made a hopeless impression (this was early in the beginningthe beginning
of 1945)
of 1945) and
and even
even if
if he
he promised
promiSed toto help
help meme toto get
get the
the exit
exit permit
permit for
for
my wife
my wife and
and our
ear two
two daughters,
daughters, II had
had n_o
no great
great hope
hepe more
more andand nothing
nothing
was done,
was done, neither
neither in
in the
the private
private thing
thing as
as in
in the
the other,
other, as
as II let
let things
things go
go
and two months later, all was over.
((1) Max
(b) Max Unz
Unz Ankara.—When
Ankara.—When Unz, Unz, the
the former
former IG-Verbindungsmann
IG-Verhindungsmann
in Ankara
in Ankara was
was put-——after
put-—after his
his return
return in
in Germany—in
Cermany—in concentration
concentration camp
camp
at Oranienburg, my organization wrote to v. Papen, who was also back
at Oranienburg, my organization wrote to v. Papen, who was also back
in this time, whether he could help. Papen wrote that he regretted, he
‘ could
could dodo nothing
nothing but
but we
we should
should write
write to
to Staatssekreti-ir
Staatssekretiir Kaltenbrunner.
Kaltenbrunner. WeWe
did this,
did this, but
but no
no answer.
answer.
(c) Prof.
(c) Prof. Gross,
Grass, IT/ien.——As
Wien.——As II have
have been asked on
been asked on behalf
behalf of
of Professor
Professor
Cross, the
Gross, the chief
chief of
of the
the branch
branch ofiice
ofiice of
of the
the economic
economic dept.
dept. in
in Vienna,
Vienna,
although I do not know at all what kind of contacts he had to the S. S.
or S.
or S. D.
D. and
and as
as it
it seems
seems toto me
me that
that his
his name
name has
has been
been connected
connected in
in the
the
questions put to me re the Abwehrstelle Ost 0st in Breslau
Brcslau (of which I never
heard before
heard before this
this name
name was
was mentioned
mentioned in
in the
the questions
questions put
put to
to me)
me) II
Cross was in the same time professor
want to report all of him, I know. Gross
of national
of national economy
economy on
on the
the Hochschule
Hochschule fiir
iiir Welthandel
Welthandel inin Vienna
Vienna and
and II
arranged with
arranged with the
the rector
rector ofof this
this university-institution,
university-institution, that
that Gross
Gross should
should
half'the time in the IG
be free halfthe 10 for his work
Work in his institution (I was inter-
ested by economists like Reithinger, Fiirst, Gross, and others to continue
closely contacts with science and universities). As Prof. Knoll, the rector
of the aforesaid institution was member of the S. S. and possibly (?) of
the S. D. there might have been the contact I have been asked, but ll1‘
am not sure at all.
(d) Prinz Rohan.---There
(ti) Rohan.—~—There is as an other man, with whom IG people---
people—-—
especially Mr. and Mrs. vbn
von Schnitzler were connected already long years before
1933—Prince
1933-—Prince Rohan
Rohan whowho was
was retained by IG
retained by IG as
as an
an agricultural
agricultural and
and publicity
publicity
.adviser.
adviser. Rohan was connected with the “Europiiische Revue” which was in the
beginning financiallyr
financially and generally helped by IG. In my industrial confer-
ences in Budapest during the war, Rohan assisted me, as well as the Mitteleurop
Mitteleump
difficulties came up in these negotiations and discussions, as
Wirtschaftstag, if difficulties
first-class contacts in Hungaria, his wife being
he had an excellent position and first-class
a daughter of the well-known late Count Appony. I know that Rohan had con-
Kaltenhrunner and that is why I report. Rohan sent reports to Kaiten-
tact with Kaltenbrunner Kalten-
brunner, especially from Western
brrmner, western Countries
countries like Francé,
France, where he was more at
the end of the war; from these reports he gave me as well as v. Schnitzler
occasionally
occasionally copies.
copies. This
This contact
contact of
of Rohan
Rohan with
with Kaltenbrunner
Kaltenbrunner had
had neither
neither to
to
do with the IG as well as with my field of industrial activity in Hungaria, but
Kaltenhrunner that he was in an advisory
I know that Rohan had informed Kaltenbrunner
capacity to
capacity to IG
IG and
and myself.
myself. .

"
I1,‘\“:f

/illgi '12:‘ ‘-
1.11’ J’ ’
 i ' \
€
4 ' APPENDIX
APPENDIX THREE :} 283
233
| D. Assistance Asked by Other Organizations of
..__.:.1.H e_:_a-n—-

Government and Party -

I. Governmental Organizations
i-¢_:4.-1M--‘ (1)
(1) Foreign
Foreign oflice
oflice ,
(11)
(a) Economic department of the foreign office.—This was the oldest con-
office.--This
tact of my organization, especially of the economic dept. of my own organiza-
“mm“ 9 ..

I
1
tion. This contact was installed by the late economic adviser ofof IG,
IG, Professor
Professor
a Richard von Moellendorfi, with whom I made my first trip to U. S. A. in order
to study, how to build up an economic department (1928) and by Professor
.., _+...1.M....1.‘

Wagemann. Ritter was at this time chief of the economic dept. of the foreign
_+. =~ .
.office
office and he was very fond of the cooperation with our economic dept. so that
I
he often preferred our elaborates and reports to those of the Statistische
Reichsamt
Reichsarnt as being quicker at his disposition and more living. The conse-
n
quence was, that he made the “green reports" of our economic dept. well
known and by and by more organizations were asking for them. But at this
time Reithinger used this fact to follow as far as possible a “do ut des” politic
and IG received in this way a great many valuable informations. Naturally after
1933 also this contact changed from year to year in another direction.
(b) Staatssekretiir Keppler.—-This
Keppier.—-This man asked me several times to send him
i
r

interesting reports during the war and from time to time he remembered me.
me,
because it was often forgotten by my organization and myself, as Keppler was
7
no
no important
important man
man (as
(as II saw
saw it,
it, he
he had
had not
not much
much to
to do
do with
with current
current business
business
questions)
questions) .. _
(2)
(2) Ministry
Ministry ofof prepaganda
propaganda
~—ma-»=~—-n.

F
(a) Expert committee on foreign aflairs
afiairs (1933-34) (F. Kreis).—About this
Z
cooperation
cooperation II reported
reported already
already in
in my
my report
report Paris,
Paris, 5.
5. V.
V. 45
45 re.
re. my‘biography
mybiography and
and
\ activity
activity as
as well
well as
as II will
will report
report in
in my
my neWureport
new-report “My
“My position
position to
to the N.S. and
the N.S. and
3 coomration,” which will be ready, as I already mentioned,
to the international cooperation,”
if
in
in two
two days.
days. i
Here I only want to state, that this committee (called “F'Kreis”=“Wirt-
“F-Kreis"=“Wirt-
J
schafts-Fiihrer-Kreis”) was a fair attempt of leading business people to influence
the min. of prop. to make a fair "publicity”
“publicity” instead of an unfair “propaganda.”
1
"propaganda."
Something could be done, but in the long 11inrun luniortunately'
unfortunately nothing; the com-
mittee
mittee shortly
shortly after
aiter the
the 301i:
30th June
June 34
34 ended
ended by
by himself.
himself.
([1)
(Ir) “Vereinigung
“Vereinigung zwischenstaatlicher
zwischenstaatlicher Verbc'inde.”—About
Verbiinde.”—-About this
this question
question II
referred
referred already
already complete
complete in
in my
my reporttfParis,
report:.Paris, 8.5.45:
8.5.45: The
The contacts
contacts of
of IO
IG with
with
Ivy
Ivy Lee
Lee and
and with
with the
the “Propaganda”
“Propaganda” and and thethe activity
activity ofof the
the “Vereinigung
“Vereinigung CarlCarl
Schurz.” Long years
Schurz.” Long before 1933
years before 1933 IG and her
IG and leading men
her leading men were assisting all
were assisting all
these international organizations both both byby active cooperation as
active cooperation financially. The
as financially. The
international
international position
position of
of IO
IG andand IGIG people
people in in the
the world
world made
made it it self
self understand-
understand-
ing,
ing, that
that we
we had
had to
to assist
assist all
all these
these efforts
efforts of
of international
international cooperation
cooperation and and better
better
understanding.
understanding. ThisThis was
was also
also thethe reason,
reason, whywhy II accepted
accepted the the presidentship
prcsidentship oi oi |

the Vereinigung Carl SchurzSchura for for‘ what I never was asked by any party organi- 1

zation
zation but
but only
only from
from people
people belonging
belonging to to the
the circle
circle of
of original
original creators
creators of
of the I
the I

Vereinigung
Vereinigung Carl Carl Schurz
Schurz in in the
the year
year 1928.
1928. My My sincere
sincere wish
wish andand hope
hope in
in ac-
ac- |

cepting
cepting the
the presidentship
presidentship was was to to assist
assist to
to mymy part
part to to aa better
better understanding
understanding
between
between thethe American
American andand thethe German
German peopleand
people and to to do
do this
this attempt
attempt onon the
the
basis of fair principles as the:‘‘come
the: “come and see”_ see”, or by a fair publicity, where
we
we were
were following
following the
the lines
lines of of American
American advises.
advises. It It was
was further
further onon the
the line-
line
\

#
 ( 284
284 ‘ IG FARBEN
IG FARBEN
of the
of the V.V. C.
C. Sch.
Sch. to
to keep
keep separated
separated from
from the
the so-called “Nazi Propaganda”
so-called “Nazi Propaganda” and and
We could
could dodo aa lot,
lot, even
even ifif always
always thethe N.
N. S.
S. authorities
authorities tried
tried toto interfere.
interfere. IG
IG
|
we
and II personally
and personally assisted
assisted inin the
the conviction,
conviction, that it was
that it our duty,
was our duty, toto prevent,
prevent,
that things
that things run to the
run to the worse.
worse. This was the
This was the opinion
opinion of
of that
that time,
time, butbut naturally
naturally
today all
today all looks
looks in
in aa different
different way.
way. II have
haVe written
written about
about this
this problem
problem alsoalso in
in
my new above-mentioned report: “My position to the national socialisme socialismc and
c00peration.”
to the international cooperation.”
(c) “Werberat
(c) “Werberat der dcr Deutschen
Dcutschen Wirtschaft.”-—This
Wirtschaft.”——This was was also
also anan organization
organization
in a mere advisory capacity re. international exhibitions a. s. 0.; IG
in a mere advisory capacity re. international exhibitions a. s. 0.; IG was
was
represented in this organization by v. Schnitzler, Mann, Uhl and others.
(3)
(3) Ministry
Ministry ofof economics
economics and
and ministry
ministry of
of armament
armament
(a) Foreign department (“Lt‘inder-Abteilung”)
(“Liinder-Abteilang”) of R. W. M.«—This
M.~—This contact"—
contact»-
similar
similar as
as the
the contact
contact toto the
the economic
economic dept.
dept. of
of the
the foreign oflice-existed also
foreign oHice—-existed also
already
already long
long before
before 1933
1933 when men like
when men like Posse,
Posse, Sarnow,
Sarnow, Waldeck, and later
Waldeck, and later on
on
Warmhold
Warrnbold (Briining’s minister of economics, who formerly used to be a mem-
ber of board of directors of IG).16).
ahroad—if interesting for the ministry—were given and
All reports from abroad—if
difficult in any way, to stop things after 1933, which we had
naturally it was dilllcult
done voluntarily
done voluntarily before
before 1933.
1933. Besides
Besides that
that the
the contact
contact with
with the
the ministry
ministry of
of
economics was
economics was still
still more
more important
important for
for the
the IG,
IG, as
as most
most of
of the
the wishes
wishes of
of IG
IO
concerning governmental
concerning governmental authorities
authorities ended
ended inin the
the ministry
ministry of
of economics.
economics. Dur-
Dur-
ing the
ing the war
war the
the contact
contact with
with the
the foreign
foreign dept.
dept. of
of the
the min.
min. of
of economics
economics was
was
industrial. committee and the working
still closer by the cooperation in the industrial
committee for foreign trade questions, in both of which I was cooperating per-
*”).
sonally (see my report: “My position to the N. S. * * ""’).
(6) Working Committee for foreign trade questions of the federations of
(b)
industry and
industry and commerce
commerce (Arbeitskreis
(Arbeitskrcis ftir
fiir Aussenwirtschaftsfragen
Aussenwirtschaftsfragen der
dcr Reichs-
Reichs-
gruppcn. Industrie and Handcl).——-About this committee, which I just men-
grappen Industrie and Handei).—--About this committee, which I just men-
tiohed aa few
tioned few lines
lines ago,
ago, II also
also reported
reported in
in the
the Paris
Paris report
report of
of 5.
5. V.
V. 45:
45: “My
“My
biography and
biography and activities.”
activities." In
In this
this committee
committee II was
was asked
asked toto elaborate
elaborate reports
reports
on the following raw materials in respect to the time after the war: Nitrogen,
chemical fibres, buna, buns, and light metals (magnesium). These elaborates were
made by
made by Reithinger
Reithinger and
and Fiirst,
Ffirst, resp.
rcsp. our
our economic
economic dept.,
dept., Reithinger
Reithinger being
being him-
him-
self appointed
self appointed as as aa member
member of of the
the staff
staff of
of this
this working
working committee.
committee. For
For the
the
above-mentioned reports
above-mentioned reports also
also statistical
statistical material
material of
of the
the ministry
ministry ofof economics
economics
was given and used.
Malybdt‘in and Wolfram and leather.—I mention this, bo-
(c) Imports of Molybdiin be-
cause I have been asked; to tell all supports given IG to authorities and as these
imports were to the benefit not of IG only, they might be mentioned. The IG
people or depts. concerned with this matter were: Meyer-Kiister (Chemical
dept.), central purchasing dept. (Klatt), (KIatt), and the dept. for foreign excl1ang,e/
exchange/
imports (Giérlichs, A. Miiller). This was something concerning both the min.
of economics and the min. of armament and was some business like this
handled by Kriiger and Gierlichs: imports of leather from Portugal against
peas from Hungaria, a compensation business, which-—to which—to my knowledge--never
knowledge—never
succeeded.
succeeded.
(d)
(d) Imports
Imports ofof oil Rumania and
oil from Romania and reflination
reflination inin Pressburg.—This
Pressburg.—This busi-
busi-
ness was handled by Biitefisch, E. Fischer, Conzen, Willig (?) (2’) and with the
assistance of the following organizations, in which
Bfi.s.i,stan¢t; whieh IG_IG participated indirectly:
..‘_’
~ .
5,‘ P»
fl.
:2
/I IF. fl‘
Li} =.~.<>".-i
 THREE
APPENDIX THREE 285
i‘ 235
Stad, Bukarest,
Bukarest, Stad,
Sardep, S. A. R., Bukarest, Apollo-Mineraliil-Raflinerie,
and Apollo-Mineraliil-Raflinerie,
Bukarest, and
Pressburg.
Pressburg. ''
' (e) Petsamo-Nickel.—This business was done
business was by aa consortium,
done by in which
consortium, in which
Metallgesellschaft, Krupp,
Metallgesellschaft, and IG
Krupp, and took a
10 took share. The
a share. men of
The men 10 who
of IG had to
who had do
to do
German armament
the German
with this business—to furnish the Nickelmatte—were‘
with Niel-zelmatte-—were
armament with
Haefliger, Brendel,
Haefliger, Brendel, Fahle,
Fahle, Schubarth
Schubarth (?)
(‘2) ‘and
‘and other
other people
people in
in Finnland
Finnland and
and
Oppau (Miiller-Cunrady
Oppau (Mfiller—Cunrady the
the resp.
reSp. techn.
techn. member
member of
of board).
board). On
0n the
the Finnish
Finnish
Wrede.
side was a Baron Wrede. ,.

(4) Other
(4) Other ministries
ministries or
or governmental
governmental institutions
institutions
(a) Ministry
(a) Ministry ofof evictions
aviations Norway—lightmetal.--The
Norway—lightmetal.——-The whole whole program
program wasWas
ordered by
ordered by Giiring
Caring and
and started
started by
by his
his man
man Koppenberg,
Koppenberg, who who gave
gave definite
definite in-
in-
structions to
structions to Krauch
Krauch andand Schmitz.
Schmitz. IG
10 was
was already
already since
since long
long years,
years, as
as well
well as
as
Norsk-Hydro A. A. S., with which
Oslo, with
5., Oslo, firm IG
which firm IG was connected since
friendly connected
was friendly since
1927,,planning to
1907/resp. 1927,.planning erect a
to erect a magnesium Norway. But
in Norway.
factory in
magnesium factory But now
now
this old and
this old solid plan
and solid was mixed
plan was up with
mixed up the fantastic
with the oi Koppenberg
plan of
fantastic plan Koppenberg
our own
bring our
and it was very hard to bring matters along in a reasonable way and
own matters along in a reasonable way and
respecting the
in the_same time respecting interests of
the interests and the
Norsk-Hydro and
of Norsk-Hydro old friendly
the old friendly
relation, which at least we we succeeded. the whole
But the
succeeded. But program was
whole program failure as
was aa failure as
many.
many. (See
(See report:
report: “My
“My position
position to
to N.
N. S.
S. "'"' "‘"‘ *)."
*).”
(b)
(b) Reichskommissar
Reichskommissar Norway:.chemical
N0rway:.chemical industry. industry. Von Von der
der Bey
Bey ofof IG
IG
Bitterfeld
Bitterfeld was appointed by
was appointed government to this job. He had to
the government to this job. He had to look after
by the look after
the necessities of chem. business
of chem. and as
Norway and
in Norway
business in far as
as far he succeeded
know, he
as II know, succeeded
in doing this job
job objectively getting the
and getting
objectively and confidence of
the confidence of the Norwegian people
the Norwegian people
concerned.
concerned.
((3)
(c) Militc'irbefehlshaber
Miiitiirbefehlshaber Frankret'ch:
Frankreich: chemical
chemical industry.——The
industry.-The IG IG 'Verbin-
'Verbin-
dungsmann
dtlngsmann in France, Krauch,
in France, was in
Krauch, was closed contact
in aa closed to Min.
contact to Michel, the
Dir. Michel,
Min. Dir. the I

chief of the economic dept. of the Militiirbefehlshaher in resp. to chemical

dept. of the Militiirbefehlshaber in resp. to chemical
industry, but I have no precise knowledge of
precise knowledge the position
of the he had.
position he had. l

-(ti) Militfirbefehlshaber
-(d) Italian: chemical
Militiirbefehlshaber Italian: Meer of
industry.---Ter Meer
chemical industry.-—-—Ter the board
of the board
appointed by
of IG was appointed government to
the government
by the post, but
this post,
to this no particular
have no
but II have particular
.i
knowledge,
knowledge, what
what he
he had
had to
to do,
do, resp.
resp. he
he did.
did. ‘'
I. II. Auslandsorganisation
Auslamisorganisation der N. S.
S. D.
D. A.
A. P.
P. (A;
(A; 0.)
.v _--1— - m. .

II. der N. O.)

1A‘ A4 ‘--n+—
- \.—'-_
(1)
(1) 10
IG contacts
contacts with
with A. 0. »
-._ _ O. in Germany
ir
have reported
II have matter'already in
this matter'already
about this
reported about in my report: Paris,
my report: “The
8.5.45: “The
Paris, 8.5.45:
of IG
relations of to Ivy
IG to Lee and
Ivy Lee to the
and to “Propaganda” and
the “Propaganda” activity of
the activity
and the the
of the
% t Vereinigung Carl Schurz” in chapter II.3.
in chapter account of
On account
11.3. On many and
the many
of the per-
and per-
member of
O. aa member
A. O. of
_ - 4- ‘lw-n‘Aonv-ny . A

of IG
difficulties of
manent difiiculties the A.
with the
IG with on desire
0., on
A. 0., the A.
of the
desire oi
board of IG, to deal all matters with A.
nominated to deal all matters with A. O. Waibel
IO, Waibel, was nominated O. Waibel
ms;

1
contact with
kept contact resp. my
me, resp.
with me, especially Kriiger
organization; especially
my organization; Gierlichs
and Gierlichs
Krfiger and .<,'
1
but also
0., but
A. 0., Terhaar, Miiller,
also Terhaar, and others;
Miiller, and half
others; half
. ._~., .,-_.
to deal
had to very often
deal very the A.
with the
often with
1, .e-i a- .'_...A_..,.J 4-. L: «.5 _._:

Jewish. employees, resp.

of all questions concerned Jewish agents.
resp. agents.
So far
So are concerned,
reports are
far reports concerned, the O. as
A. O.
the A. well as
as well S. D.
the S.
as the asked for
D. asked these,
for these,
~‘fi..n.

-~._<~. ._ with trips

especially in connection with and the
abroad and
trips abroad “no exit
system: “no
the system: if
permit if
exit permit
no report” was later onon aa general, from the person who
depending from the person who was
naturally depending
general, naturally was a-.s_- ._;-.1‘1.1!
travelling and on
travelling and matter.
what matter.
on what '' i

(2) IG
(2) [G organizations
orgahizations abroad
abroad ’
As to the responsibility of these organizations,
of these referred to
organizations, II referred the beginning
to the beginning
remarks: II.
of this report: “A. General remarks: Administration of
II. Administration the sales organiza-
of the sales
-~......4..

organiza-
AA-hti ‘; _ ma: 4 3

9
tions of IG abroad.” 1

F
\

1._.;_aA

A
 I
I

286
286 3 IG
l0 FARBEN
I _ -
Owing to the fact, that IG business in all countries of the worldworld was
was always
always
in comparison
comparison with other Gefman exports——at
exports—at one of of the
the first,
first, if
if not
not at
at the
the first
first
place, the German IG representatives
representatives or or agents
agents were
were always——already
always—already long long
- years before 1933—playing
1933—playing a leading role in the German colonies, schools, schools, and
and
organizations.
other kinds of clubs or organizations. After 1933 there were always troubles
troubles
organizations in the various countries and not only on
with the A. O. organizations on Jew
Jew ques-
ques—
mm or not suiiicient
tions, but also of non- sufficient cooperation,
cooperation, not
not granting
granting suflicient
sufficient
financial help, not assisting at party meetings
meetings oror “Dcutsehe
“Deutsche Tag”
Tag” or or “1.Mai”
“LMai”
or something like that, or not showing the “swastica”
“swastica” on occasions whatever
whatever
contributing suilicient
or the employees not contributing sufficient to the Wintcrhilfswerk—altogether
Winterhi]fswet‘k—altogether
complaints.
\ endless complaints. This was the reason that the A. O. specifically
specifically demanded,
demanded,
if leading men of IG went abroad, to visit the Landesgruppen
Landesgruppen and and Ortsgruppem
Ortsgruppen-
people in
leiter. In this way I visited these people in my
my various
various trips
trips abroad
abroad andhgrying
and trying
to come
to come along with them or to report at home to my colleagues
colleagues responsi
responsiblee for
for
I organizations concerned.
the organizations concerned. _.
' As to the leading men of IG sales organizations
organizations abroad, who kept kept leading
leading
posts as members of the “Auslandsorganisation
posts “Auslandsorganisation der NSDAP.” or or as
as presidents
presidents
presidents of German chambers
of German clubs or as presidents chambers of of commerce
commerce or or some-
some-
thing similar, I will bring, as to the best of my knowledge,
knowledge, these names, not
not
knowing always how close they were connected with the party:
(0) Members of the A. O.:
(a) 0.: ~
Lnndesgruppenleiter Jugoslavien.
Empting (dyes): Landesgruppenleiter Jugoslavien. _
Huber (nitrogen):
Huber )(nitrogen): Wirtschaftsberator
Wirtschaftsberator of A. O. in Spain or something something
like that. I have no specific knowledge.‘
knowledge.‘
Landesgruppenleiter Venezuela.
de Margerie (Bayer): Landesgruppenlciter Venezuela.
Ortsgruppenleiter Sofia.
Peter (dyes): Ortsgruppenleiter
Pilling (Agfa): Partei, Richter, Norwegen.
Norwegen. \
Landesgruppenleiter Brit. India (but
Urchs (Bayer): Landesgruppcnleiter as far as I
(but as far as I know,‘know,
was dismissed years ago on account of party-troubles).
partyctroubles).
(12) Presidents
(b) Presidents of German clubs etc.:
H.‘ M. Fischer (dyes): President of German club Mexico-City Mexico-City (?). (1’).
C. Gadow (dyes): President of German club, Shanghai (?).
Kluthe (dyes): President of German club, Milan (?). (1’).
About these three functions I am not sure. sure.
v. Humboldt (N. W. 7): Assistant to to Mr.
Mr. H.H. M.
M. Fischer,
Fischer, Mexico
Mexico City;
City;
kept contact to the Humboldt society, later on stepped out of IG.
Presidents of German chambers of commerce etc.:
(c) Presidents etc.:
Birk (dyes): President of German chamber of com., Madrid.
(nitrogen): President of German chamber of com., Tokyo.‘
H. Bosch (nitrogen): Tokyo.1
Dcyhle (dyes): President of German chamber of
Deyhle of com.,
com., Budapest.
Budapest.
Kaelble (Bayer): President of German chamber chamber of of com.,
com., Rio.
Rio.
Unz (dyes): Economic adviser to to the German embassy, Ankara.
the German embassy, Ankara.
Zeber (Bayer): President of German chamber of com., Milan. Milan.
(0?) Other contacts: Sometimes
(ti) Sometimes A. O. 0. people abroad approached
approached us to give
' a job. to jobless Germans, they wanted to have settled settled down.
down. II remember
remember one
one
case, where I was asked personally
personally to give to 0. German press man
a German press man a (Small)a (small)
Kopenhagen and he would give our local
retainer in Kopenbagen local agencies
agencies press-inforrnations
press-informntions
or make reports on specific matters; but but I have no particular
I have no particular remembrance
remembrance or or-
knowledge of this man.
knowledge (Signed):
(Signed): MaxMAX Itcnsn.
ILGNER.
FRANKFURT/M., June 18th I945.
Fasmcrtmr/M., 1945.
_ ‘ Later on dismissed
1
dismissed on account
account of
of government
government troubles.
troubles.
e
s;
/ if I
i'_ -_i ‘K.
/M;/'}
 I

APPENDIX THREE
APPENDIX THREE __ 287
287 |
»
EXHIBIT 3—-Chapter VI of Kilgore Committee Report
Exmarr N0. 3-Chapter
Neuordnung, (New Order) General
Strictly
Strictly Confidential
Confidential
General
General Part
Part ~
The
The premises
premises for
for aa basic
basic study
study of
of both
both the
the planning
planning tasks
tasks of
of Greater.
Greater. Ger-
Ger-
many’s chemical industry in
chemical industry major European
the major
in the and the
sphere and
European sphere incorporation
the incorporation
of such a sphere into ecouomy, is
world economy,
the world
into the is furnished by the
furnished by realization that,
the realization that,
in prewar
in years, the
prewar years, German chemical
the German ranked readily
industry ranked
chemical industry with respect
first with
readily first respect
to both the volume of of absolute qdantities and
absolute quantities values of
and values of production and
production and its its
in the
position in chemical foreign
the chemical trade of
foreign trade of the world, and
the world, that, by
and that, reason of
by reason of the
the
prewar development
development trends, coupled with
trends, coupled with its capacity, and
productive capacity,
its productive and scientific
scientific
attainments, it was ready not only to maintain its outstanding position but
it was ready not only to maintain its outstanding position but
also to improve it. The end end of World War
the World
of the War with all its
with all economic consequences
its economic consequences
suddenly interrupted this clear-cut development.
this clear-cut changes, the
Territorial changes,
development. Territorial the
industrialization of countries which
of countries which were customers of
formerly customers
were formerly of Germany,
Germany,
and measures
and which were
measures which intentionally taken
were intentionally taken by by the countries against
enemy countries
the enemy against
the German chemical industry, industry, entailed shiitings of
entailed shiftings unusually great
of unusually scope to
great scope to
the detriment of
the detriment of Germany.
Germany. ‘ '
The effects
The effects ofof said could be
shiftings could
said shiitings fully illustrated
be fully only if
illustrated only reliable and
if reliable and
comparable data
comparable according to
data according quantities and
to quantities values for
and values the prewar
for the and
prewar and postwar postwar
available on
years were available on world production} in
world production’ in the fields of
typical fields
the typical production
of production
of inorganic and chemistry. Only
organic chemistry.
and organic Only on on the strength of
the strength of such production
such production
possible to
figures would it be possible show to
to show extent the
what extent
to what chemical in-
German chemical
the German in-
ground as
dustry has lost ground as a result of
a result the World War, and to
of the World War, and to what degree the what degree the
t!
. production in
domestic production
adoption of domestic countries has
numerous cotmtries
in numerous affected or
has afiected pre-
or pre-
exports. If,
German exports.
vented German absence of
the absence
in the
If, in such production
of such attempts
statistics, attempts
production statistics,
illustrate the
were made to illustrate scope of
the scope shiftings on
these shiftings
of these strength of
the strength
on the figures
of ‘figures l
’i|
a study based thereon would involve
statistics, a study based thereon would involve basic deficiencies,
of foreign trade statistics, basic deficiencies,
because as a result of of the statistically not
the statistically illustrated domestic
not illustrated production,
domestic production,

win,
I
volumeof world
the wolume.of trade in
foreign trade
world foreign dropped necessarily
chemicals dropped necessarily from
in chemicals year .
from year
compared to
as compared to prewar figures. In
prewar figures. In this comparabili
connection, comparability is still
this connection, ty is still

I—L-I-
to year as
further impaired by by the that, on
fact that,
the fact the other
on the hand, an
other hand, an increasing number of
increasing number of
new fields and products with their respective
with their export values
respective export appear among
values appear among ex- ex-
9' port figures. ''
port figures.
¢
NeverthelessLa few
Nevertheless,,a considerations are
few considerations are given hereinafter, based
given hereinafter, based on foreign
on foreign
statistics:
commerCe statistics:
mi_
,_A5_q‘.,_ . -.4
commerce
- ‘ w,._..s—m»¢.t...

chemicals in
of chemicals in the last prewar
the last i.e., 1913,
year, i.e.,
prewar year, amounted
1913, amounted
= r—.-s.s_m—-._ '—-—=_V-. .3,
Germany’s export of .1

goldmarks.‘ On
to 910,000,000 goldmarks.‘ 0n thethe other hand, for
other hand, for the year 1924,
the year Le. so
1924, i.e. so to say
to say
Mn4-v__m.\;h_»- normal year
the first normal peace was
after peace
year after concluded, German
was concluded, exports of
German exports chemicals
of chemicals
are shown amounting to reichsmarks . Even though
610,000,000 reichsmarks. Even though the considerable
to 610,000,000 the considerable
Mu..‘,., em J... \~ m. c,

-ev
5
decrease in German chemical would be
exports would
chemical exports revealed by
clearly revealed
be clearly merely
by aa merely '.—r-_.=- .-_>6.%-
4

superficial comparison of of these figures (which

two figures
these two show a decrease
(which show a decrease of Germany'sof Germany's J1
participation in world foreign
participation trade in
foreign' trade in chemicals (amounting to
chemicals (amounting 2,730,000,000
to 2,730,000,000
.5—,,

A‘_--‘.N“.7 goldmarks’) approximately 1/3

goldmarks’) from approximately 1/3 in 1913 to
in 1913 approximately 1/5
to approximately 1/5 in (world
1924 (world
in 1924
I
foreign trade in chemicaIs—3,150,000,000 goldmarks’),
in chemicals—3,150,000,000 goldmarks’), while, while, at the same
at the time,
same time,
1

Manuscript of
1Cf. Manuscript of the for the
Association for
the Association Safeguarding of
the Safeguarding of the Interests
the Interests
”Av t A_tutr—e .n. ..-.
. .a- on“: Vl-v .

‘Cf.
Chemical Industry:
Germany’s Chemical
of Germany’s “Survey of. the Sphere of Activities
Industry: “Survey of. the Sphere of Activities as as
End of
the End
of the by Dr.
1928,” by
of 1928," Ungewitter, page
Claus Ungewitter,
Dr. Claus 219.
page 219.
. s.- ‘Q-. ”Values computed on
“Values basis of
the basis
on the statistics of
official statistics
of oliieial individual
the individual
of the
t and converted
countries and
countries gold marks,
into gold
converted into Chile.
excluding Chile.
marks, excluding . _
II ‘ .

-—-_-;J)-C.- \.-i4—=_a. -_1sk|_-. -.

I
‘ t
‘ :
4 AJ
 /

288 [G
IG FARBEN
-‘ American, French, Italian and Japanese shares [in said world trade] showed an
increase), attention should be he called to the fact that the real extent of the
decrease
decrease of German exports of chemicals, as illustrated merely by the figures,
does not in any way correspond to actual conditions. These figures do not
show the loss resulting from the fact that—as already emphasized at the out-
set—major markets such as England, United States [and], Japan, which
appeared as importing countries before the World War, have, to a large extent,
become capable of supplying their home markets domestically. Thus, if the
German share, as it appears {or for the initial postwar period, is to be considered
too
too favorable
favorable because
because the
the total
total volume
volume of foreign trade
of foreign trade by
by which
which it is measured
it is measured
is relatively smaller than prior to the World War, this German share seems,
on the other hand, to he be too high also because actual German exports of the
first few postwar years already include products which before the World War
were of no or only of secondary importance in the German export values. Both
factors
factors made
made themselves
themselves increasingly
increasingly felt
felt in
in subsequent
subsequent years.
years. If,If, therefore,
therefore,
the figures for the years following 1924 show a certain renewed increase in
Germany’s participation in world foreign trade in chemicaIs—although chemicals—-although the
German share would never have been in a position to revert
German share would never have been in a position to revert to to the
the nominal
nominal
I prewar level—this deveIOpment
development only seems to indicate a partial recovery of
lost
lost German
German positions.
positions. The
The actual
actual development
development is is much
much rather
rather characterized
characterized
by.
by the fact that, despite all the measures which, in those years, were still
directed
directed against
against Germany,
Germany, the the German
German chemical
chemical industty
industry succeeded
succeeded to to aa certain
certain
extent
extent ’inin finding
finding certain
certain compensation
compensation for for temporarily
temporarily irreparable
irreparable losseslosses byby
effectively coordinating research and production; production‘, business initiative and
politice-economic
politieo-economic measures, as Well well as by improving old assortments, creating
specialties and completely novel products, and by awakening new consumers’
requirements. '
' For these reasons, the German share in the world’s world's foreign trade in
chemicals for 1938, which amounted to approximately one-fourth, appears
favorable only at first glance, since it includes the German share in exports
of such chemical products as, for instance nitrogenous fertilizers, which,
showing approximately 53,000,000 Mk. as compared to approximately 36,-
000,000 Mk. for 1913, held, prior to the World War, a much smaller share
in
in the
the chemical
chemical foreign
foreign trade
trade onon the
the basis
basis of
of technical
technical production
production and and con-
con-
sumption. This structural change in the chemical foreign trade, and, and- the
greater difficulty
difficulty resulting therefrom in regard to comparability of foreign
trade figures, become even more evident when hearing bearing in mind that Get- Ger-
many’s total share of approximately one-fourth is partly to be ascribed to
the fact that in the German exports for 1938, e. g., the item “pharma-
ceutical products” shows approximately 127,000,000 as compared to approxi— approxi-
mately 70,000,000 for 1913, and that the item “photo-chemical products”
shows approximately 32,000,000 as compared to approximately 19,000,000 for
1913. In both of the latter fields the build-up huild-up amounts less to a recovery
of the positions lost as a result of the World War, than to a typical dem-
onstration of the fact that new fields of consumption have been created
in whose development, guidance, and satisfaction the German chemical chemical
industry has played a prominent'role.
If, on the other hand, we limit ourselves to considering considering thethe development
development
of the German export share in the principal major spheres of the
principal major spheres of the inorganic
inorganic
and organic
and organic chemical industry, which are comparable with prewar times, it
becomes obvious that the loss sustained as a result of the last warhas warlhas

\
 I1
l‘
I

APPENDIX THREE 289

289
been a
been 11 permanent
permanent one.
one. This
This'is
ls clearly
clearly shown
shown in
in the decrease of export values
the decreasenoiiexport values
chemicals and
for “inorganic chemicals wood carbonization
and wood products” irom
carbonization products approxi-
rem approxi-
186,000,000 for
mately 186,000,000 1913 to
for 1913 to approximately 153,000,000 for
approximately 153,000,000 for 1938. The most
1938. The m_ost
marked and
marked and thethe heaviest
heaviest loss
loss which
which has
has been
been sustained
sustained by by Germany
Germany hes, lies,
however, in
however in the
the field
field of
of dyes
dyes and
and intermediate
intermediate products.
products. ,
Until the
Until the outbreak
outbreak of of the
the World,War,
World War, organic
organic aniline
aniline dyes
dyes were
were pro~
pro-
duced almost
duced almost exclusively
exclusively inin Germany,
Germany, quantitatively
quantitatively 82% 82% of of the
the total
total world
world
production. Gennany’s
production. Germany’s actual
actual position
position in in the
the world's
world’s dyestuff
dyestuif production
production is, is,
however, not fully expressed by‘ the share of 82%, belcaltése because the (iermag
Gennan dye-
stuff factories were forced by France, England, an and Russia,
ussia, tthrough
roug cor-
responding patent
responding patent and
and customs
customs legislation,
legislation, to
to conduct
conduct part
part ofof their
their production
production
in those
in those countries.
countries. This
This waswas accomplished
accomplished through
through thethe establishment
establishment of of
branch factories the production of which amounted, for 1913, to approxi-
mately 6%
mately 6% of of world
world production.
production. Germany’s
Germany’s shareshare inin the
the world's
world’s dyestuif
dyestuii
business amounted thus to almost 90%. _
The dyestufi
The dyestuff industry
industry ofof Switzerland,
Switzerland, which
which is is practically
practically as as old
old as
as thethe
dyestuff industry, produced only 6% of world production.
German dyestufi
Smaller well-established
Smaller weIl-established dyestuff
dyestuff plants
plants existed
existed prior
prior to to the
the World
World
War, only in France, England, and the United' States.
War, only in France, England, and the United" States. Minor production Minor production
i activities which,
activities which, inin addition
addition thereto,
thereto, were
were inin progress
progress in in aa few
few countries,
countries, were
were
practically of no importance. 1
The internal
The internal structure
structure oi
of dyestuli
dyestufi production
production which
which existed
existed outside
outside of
of it
Germany prior to the World War, was almost exclusively dependent on H
ii
Germany’s supplying
Germany’s supplying _the
.the basic
basic and
and organic
organic intermediate
intermediate products
products required
required
therefor. 1.
The world picture for 1913 appears as follows:
- Dyestufi
Dyestuii
production Percent of
' in tons total 1
Germany
Germany ~ .. .....-..,...... 127,000
127,000 x:
z: 82
82
German
German branch
branch factories
factories ahroad..1...m....................-.............._1....
abroad.._....,..... .. - ............__.... 10,000
10,000 =
= 6 ,.
France
France ‘ >1 .................-.... 2,000
2,000 =
= 1 lI
l
England = 3
\
England .........-............._....................................................._.-...._....................m 5,000 ="-
Switzerland .................................................................................................,......-
Switzerland 10,000
l.0,000 ' = 6
= 4
lr,.
U. S.
U. S. A..........-.....................s.............................-...........................................-....
A 3,000
3,000 = t2\:O\€n|-IO\
:
|
I.-
Total 157,000 =100 _
350-4100300300.0
\-
= Mk. 350-400,000,000 I
I
1 \

World exports in aniline dyes amounted for the same year to: I

1 In tons In millions Percent

.mun-..._h

. of Mk.
= 90.5
. »._ =.
From Germany ..................,..................- 109,000 218 :: r

m..un......t..
From Switzerland ...._.........-.....-. 9,000 23 = 9.5
Total
Total....................... .. .. 118,000
. .-..........s.-... 118,000 241
241 :100
=100 }:
1
r

(
1

‘ .
»
L

1'

-" r
4 ____.I
-,1‘--_-_-7, .

290
2_90 '' IG FARBEN
IG FARBEN
. In
In the
the field
field of
of organic
organic intermediate
intermediate products
products for
for the
the production
production of
of
antline dyes,
aniline dyes, Germany
Germany exported
exported in
in 1913:
1913:
[To :] Tons
Tons In
In thou-
thou-
sands of
sandsof
Mka.
France
France ..............................................._................................. 1,087
1,087 1,151
1,151
England .............................._.,._..-...............-.-................-.-.-.._..-........,................ 421
421 721
721
Switzerland ._...-......._..............-._.....-............._.._.........................................- 4,191 4,191 4,298
4,298
U, s. A._.....-,..,.........-.__-..._._.................-.........-......................-......u 3,420
U. S. A 3,420 3,130
3,130
Poland/Russia
P0land/Russia ......................................................................................................... 746
74-6 962
962

TotaL............................................._......................_............................._........ 9,865
Total 9,865 10,262
10,262

The large consumer

The large countries were
consumer countries were offered welcome opportunity
offered aa welcome opportunity by by
the World War to proceed against Germany’s leading
the World War to proceed against Germany’s leading position. In this position. In this
connection alleged as
England alleged
connection, EnglandI
as a reason therefor
a reason that the
therefor that foundation of
the foundation of
every chemical
every war industry
chemical war could be
industry could found in the organic dyestuff
he found in the organic dyestuff produc- produc-
dyestufi industries
“national” dyestufi
Thus, “national” Sprung into
industries sprang in a
existence 1Il
into existence series
a seri
I I I I I I les

tion. Thus,
of countries. From the the start, these efforts
start, these governmental
received governmental support
efforts received support
through the
through furnishing of
the furnishing funds at
of funds time of
the time
at the foundation, or
of foundation, current
through current
or through
conclusion of
Upon conclusion
subsidies. Upon
subsidies. the World
of the considerable protection
War, considerable
World War, was
protection was
provided
P rovided through prohibitions and
import prohibitions
through import import duties.
prohibitive import
and prohibitive This
duties. This
even more
became even
protection became
protection effective as
more effective result of
as aa result anti-German atti-
the anti-German
of the atti-
tude of
tude consumers which
the consumers
of the was constantly
which was encouraged. '
constantly encouraged.
This new
This production in
“national" production
new “national” field of
the field
in the dyestuffs, and
of dyestuffs, measures
the measures
and the
which were
which taken to
were taken up and
build up
to build maintain the
and maintain and which
same, and
the same, were partly
which were partly
anchored in
anchored of the
provisions of
the provisions
in the Versailles Peace
the Versailles Treaty, led
Peace Treaty, the alteration
to the
led to alteration
of Germany’s
of share in
Germany’s share in the supplying of
the supplying of dyestufis
requirements of
world requirements
of world and in
dyestufis and in
world foreign
the world foreign trade dyestuffs, as
in dyestuffs,
trade in in detail,
illustrated, in
as illustrated, Appendices II
in Appendices
detail, in
and II.
and II. ,, '
It thus shown
is thus
It is as aa result
that, as
shown that, result of the development
of the development of “national” dye-
of “national” dye-
ifidustries in many parts of the world, German commerce supplied
stuffs industries supplied in in
1938, only
1938, only about (quantitatively) and
27% (quantitatively)
about 27% approximately 40%
and approximately (accordingto
40% (accordingto
value) of
value) of the world requirements
the world requirements which amounted to
which amounted approximately 700,-
to approximately 700,-
000,000. Ml;.,
000,000 MIL, as compared to
as compared approximately 90%
to approximately 90% for 1913, and
for 1913, that the
and that the
German exports
German exports of 218,000,000 Mk.
of 218,000,000 (=90% of
Mk. (=90% exports) for
world expo;-15)
of world 1913
for 1913
dropped to 126,000,000 Mk. (:55% (=55% of world exports). On the other hand,
based on her prewar share of approximately
based on her prewar share of approximately 90%, 90%, Germany theoreti-
might, them-cgi.
Germany might,
cally speaking,
cally speaking, have have had share of
had aa share 495,000,000 Mk.
approximately 495,000,000
of approximately Mk. in the
in the
consumption which,
foreign consumption
foreign for 1938,
which, for amounted to
1938, amounted approximately 550,000,000
to approximately 550,000,000
Mk.
Mk. '
Exports in
Exports intermediate products
in intennediate products for the production
for the production of aniline dyes
of aniline dropped
dyes dropped
from approximately 10,000,000 Mk. to approximately 4,000,000 Mk.
The various countries, no doubt, even without the World War, would even-
tually have proceeded with the production of dyestuffs. Today’s Todayls extent of non-
German production, however, is distinctly the result of the political and
politico-cconomic forces which have been directed against Germany for the
politieo-economic
last 20 years. The effect of this development goes beyond the field of dyes,
/
because dye chemistry furnished the basis for "additional additional production in the
field of
field organic chemistry
of organic such as,
chemistry such particularly, in
as, particularly, fields of
the fields
in the auxiliary
of auxiliary
products for
products for dyeing
dyeing purposes
purposes and and auxiliary
auxiliary textile
textile products,
products, pharmaceutical
prodlttfits, vulcanization
pt'O(i1t.t£t8, vulcanization accelerators, solvents, varnishes, synthetic eyhthetic products, and
1:3
~-Q
v.--I i1 e. .-
Z)

/ .
~

:/J‘-‘.,i "H1
 K
APPENDIX THREE 29]
The foregoing considerations regarding prewar and postwar situations may,
elfect is concerned, be summarized by stating that, as
insofar as their ultimate effect
a result of the World War, the leading position of Germany’s chemical industry
in world production and world foreign trade has, in the pertinent fields of
large-scale production, resulted in a condition which is characterized by the
obstinate defense of the keenly contested markets, against the growing compe-
tition of new foreign producers of chemicals who, due to direct or indirect
governmental aid, enjoy a more favorable position. The direct damage caused
Germany’s chemical industry as a result of the World War, is unproportion-
to Gennany’s
ately greater than the direct losses of material and other assets of IG alone,
which, 8. e. g. in the case of seized German claims and stocks, sequestrated
branch factories, etc., can he be expressed by figures.
It will no doubt be impossible to resume where we left off at the outbreak
of the World War. Neither can we reduce to its original state, the economic
development which
development which in
in the
the last twenty years
last twenty years has
has taken
taken place
place in
in the
the various
various
countries or areas to the detriment of Germany. It will be necessary, therefore,
to
to aa certain
certain extent,
extent, to
to accept
accept the
the deterioration
deterioration of
of the
the German
German position
position in
in
comparison
comparison with with 1914
1914 asas being
being irreparable.
irreparable. It
It will,
will, however,
however, appear
appear all
all the
the
more justifiable
justifiable in planning a major European spherical economy, again to
I
reserve
reserve aa leading
leading position‘for
position‘for German
German chemical
chemical industry
industry commensurate
commensurate with
with
its
its technical,
technical, economic,
economic, and
and scientific
scientific rank.
rank. The
The decisive
decisive factor,
factor, however,
however, in
in
all
all planning
planning relatiVe
relative to
to this
this European
European sphere
sphere will
will be
be the
the necessity
necessity of
of seeming
securing
determined
determined and
and efiective
effective leadership
leadership in
in the
the discussions
discussions which
which must
must necessarily
necessarily
be
be conducted
conducted with
with the
the other major spherical
other major spherical economies
economies outside of Europe,
outside of Europe, t

the
the contours'of which are
contoursof which are already distinctly drawn
already distinctly drawn atat this
this time.
time.
I|
In order
In order to
to guarantee
guarantee that the chemical
that the chemical industry
industry of
of Greater
Greater Germany
Germany andand
the
the European
‘European continent
Continent can
can assert
assert itself
itself in
in such
such discussions,
discussions, it
it is
is urgently
urgently
required
required clearly
clearly to
to appreciate
appreciate the
the forces
forces which,
which, in
in the
the world
world market,
market, will
will he
be
after the
of decisive importance after war.‘ Their
the war.1 importance is
Their importance briefly sketched
is briefly sketched
hereinafter:
A-‘"5.0-_.-
e ”'34.“

‘$4-In

1. The principal weight of of the discussions bearing

the discussions bearing on on aa new arrangement
new arrangement i
J

of the world market rest on

will rest
market will with the
relationship with
the relationship
on the the North American
North American 1
..

u |

concerns.
concerns. Forced
Forced awayaway from
from European
European business
business 'ior
for reasons
reasons which
which were
were effec-
effec- I
tiVe
tive already
already prior
prior to to the
the war
war and
and which
which will
will become
become increasingly
increasingly effective
effective
v
after
after the
the war,
war, the
the Americans
Americans willwill do
do everything
everything within
within their
their power
power toto main-
main-
tain
tain and
and promote
promote the the development
development of of their
their exports
exports of
of chemicals,
chemicals, which,
which, during
during -
ecu; —JH n ’v.‘ m -. qua .«m. . ...

the
the war,
war, they
they were
were able
able to
to send
send toto countries
countries other
other than
than European.
European. In In this
this 1

connection, appears in the foreground the Latin‘American

Latin-American market, the impor- ‘l

\vv-at._. >
tance
tance ofof which
which must
must bebe measured
measured notnot only
only byby the
the economic
economic volume
volume ofof prewar
prewar
a sales,
sales, but
but also
also from
from the
the standpoint
standpoint of of economic
economic development
development possibilities
possibilities and
and
trends
trends which
which that
that part
part of
of the
the American
American Continent
Continent offers
offers in
in the
the future.
future. Efforts
Efforts
made
made by by the
the Americans
Americans in in the
the prewar
prewar period
period to
to increase
increase their
their sales
sales in
in the I
9
1 the
I

P
1The important
‘The important question
question bearing
hearing on
on the\trend
thetrend of of England’s
England's .chemical
chemical
industry in relation to the chemical industry of the European Continent, and
the equallysignificant question of the future of Switzerland’s
Switzerland's chemical industry ‘\-

within the major continental sphere, will he

be discussed within the framework l
1
of country studies, as soon as political conditions allow ‘ofl
‘of a more concrete Q

exposition. '
‘N.
‘“~. ' 1

4 A
___-7

292
292 IG FARBEN
IG FARBEN
Latin-American markets were largely hampered by dilliculties difficulties arising from
commercial policies, inasmuch as the United States was not in a position to
liquidate the
liquidate the credits,
credits, accruing
accruing to
to her
her from
front exports
exports to to these
these countries,
countries, by
by
sufficientpurchases
suiiicientpurehases fromfrom the
the latter, and inasmuch as said countries, on the
sufficient amounts
other hand, did not have at their disposal sullieient amounts of of free
{rec foreign
exchange
exchange to to overcome
overcome thethe barrier
barrier standing
standing between
between the the balance
balance of of payments
payments
and
and the
the balance
balance ofof trade.
trade. It
It must
must bebe expected,
expected, however,
however, that,
that, as
as aa result
result
of
of war
war developments,
developments, there
there will
will be
be aa change
change inin the
the relationships
relationships between
between the
the
United
United States
States of
of America
America andand the
the principal
principal countries
countries of of the Latin-American
the Latin-American
Continent
Continent andand that
that said
said change
change may
may readily
readily facilitate
facilitate the
the position
position of
of the
the
American
American competitors.
competitors. This
This applies
applies not
not only
only to
to the
the field
field of
of chemicals.
chemicals. The
The
strengthening
strengthening of
of Pan-Americanism
Pan-Americanism will
will coincide
coincide with
with the
the effects
effects of
of the
the fact
fact
that
that England
England will
will now
now completely
completely lose
lose her
her role
role as
as financier
financier ofof the
the Latin-
Latin-
American
American countries,
countries, which
which was was affected
aflected quite
quite adversely
adversely already
already after after thethe last
last
war,
war, andand that that the
the United
United States
States of of America
America willwill take
take her
her place.
place. As As aa result
result
of
of increased
increased influx influx of of American
American capital,capital, Latin-America
Latin-America not not onlyonly can, can, butbut
probably
probably will will ham
have to to buy
buy more
more in in the
the United
United States.
States. ItIt will,
will, therefore,
therefore, depend
depend
- on
on thethe degree
degree of of order
order or or disorder
disorder of of the
the European
European economic
economic sphere sphere and and
on
on the
the creation
creation of of aa determined
determined commercial
commercial policy,
policy, in in how
how far far and
and at at what
what
pace Europe, and
pace Europe, Germany, will
particularly Germany,
more particularly
and more will be able to
be able rebuild, main-
to rebuild, main-
train, and
train, develop its
and develop position as
its position as aa regular “trade partner” in
regular “trade partner” in thethe Latin-
Latin-
American
American Continent.
Continent. To To a a certain
certain extent,
extent, the
the statements
statements made made with with respect
respect to to
Latin—America
Latin-America might might also
also apply
apply to to Canada.
Canada.
The
The field,field, second
second in in importaHCe
importance in in the
the discussions
discussions withwith thethe United
United States,
States,
will
will be be the countries of
the countries of the Far East including what is today known as
the Far East including what is today known as
British IndiaIndia and the Dutch
and the Dutch [East] Indies.
[East] Indies.
2.
2. The
The discussions
discussions with with thethe Americans
Americans with with respect
respect to to the
the FarFar EastEast will
will
largely
largely centercenter around
around the the fact
fact that,
that, concerning
concerning the the same
same sphere,
sphere, it it must
must be be
decided in how far
in how position can,
European position
the European
far the ean, in respect of
in respect Japan, be
of Japan, be main-
main-
tained
tained 'in 'in the
the Far
Far East.
East. The
The weakening
weakening of of Japanese
Japanese forces
forces as as aa result
result of of the
the
Chinese
Chinese conflictconflict which
which is is still
still inin progress
progress today,
today, may
may offer
offer trade-politieal
trade-political and and
other opportunities for slowing up up oror temporarily deferring the
temporarily deferring the crystallization
crystallization
of
of the
the economic
economic hegemony
hegemony which which JapanJapan has has strivcn
strivcn after
after within
within the the sphere
sphere
of
of the countries bordering on the Pacific Ocean. In the long run,
run, however,
however,
it must be expected that heavier pressure upon the European economic inter-
ests
ests in in thethe Far
Far East
East will
will bebe brought
brought to to bear
bear hyby Japan’possihly
Japan—~possihly also also in in con-
eon-
nection with the effects of aa new new era era of industrialization in
of industrialization China—rather than
in China—rather than
by
by the
the U. U. S. S. A.
A. Probably
Probably it it is
is not
not wrong,
wrong, therefore,
therefore, to to recognize
recognize the the future
{uture
trend of East Asiatic trade policy poliCy in the difliculties
in the which are
difficulties which today already
are today already
being encountered, for example, in connection with imports into Manchukuo,
Japan,
japan, and and Northern
Northern China.
China.
3,
3. It is impossible thus far to take a clear-cut stand with respect to the
problem
problem of of Italy’s
Italy’s chemical
chemical industry,
industry, since since the
the possibilities
possibilities of of constituting
constituting aa
major Italian sphere Sphere cannot as yet be envisaged in detail. On account of the
particular difficulties,
dilliculties, however, which no doubt Will will arise in connection with
a
3 major Italian sphere and in view of the expansionist efforts of Italy in
southeast
Southeast Europe and Latin-America, which can already be felt at this time,
it
jg is
is necessary
necessary to to emphasize
emphasize already
already at present that it will hardly be possible,
considering the general relationship between Germany and Italy, which may
be expected for the period following the conclusion of the the war,war, to to nego-
nego-
tiate With Italy on the basis of the status quo of times
tiate with Italy on the basis of the status quo of times prior to the outbreak prior to the outbreak

.1 A -~-."*.\
,._,.,_,'~, .
""7?
,--.,.
_/l , \' .
“"4: 9-
‘. . . \
I = » I
I ’ r ii-1
 \

THREE
APPENDIX THREE
APPENDIX 293
‘‘ 293
of
of war,
war, unless, instead of
unless, instead of seeking
seeking increased
increased exports,
exports, it
it is
is primarily
primarily desired
desired
to
to secure
secure aa greater
greater share
share in
in the
the supplying
supplying of
of the
the domestic
domestic market.
market.
4-.
4-. A
A similar
similar special
special exposition
exposition is
is likewise
likewise being
being taken
taken into
into consideration
consideration
for
for Russia,
Russia, which,
which, in
in this
this connection
connection should
should bebe mentioned
mentioned as as aa factor
factor which,
which,
if
if the
the political
political conditions
conditions remain
remain as
as they
they are,
are, is
is capable
capable of
of influencing
influencing and
and dis-
dis-
turbing
turbing the between the
discussions between
the discussions European chemical industry and the
the European chemical industry and the
remaining
remaining major
major spheres.
spheres. ''
In
In evaluating
evaluating the
the power
power relationships
relationships described
described under
under 11 to
to 44 and
and their
their
hearing
bearing on on thethe plans
plans toto bebe made,
made, one one point which generally
point which generally aflects
ailects the
the
econOmic
economic spheres
spheres outside
outside ofof Europe
Europe may may not
not bebe disregarded.
disregarded. The
The present
present war
war
has
has again
again started
started aa wave
wave of of industrialization
industrialization in in countries
countries outside
outside of
of Europe.
Europe.
This development not only has has a bearing on chemical production directly in
a bearing on chemical production directly in
the
the form of new or expanding chemical
form of new or expanding chemical production
production centers
centers in
in countries
countries outside
outside
of
of Europe
Europe which
which will
will affect
affect German
German and/or
and/or European
European chemical
chemical exports,
exports, but
but
will,
will, in
in addition,
addition, make
make itself
itself felt
felt through
through industries
industries which,
which, with
with aa reasonable
reasonable
period
period of of time,
time, will
will still
still spring
spring into
into existence
existence in in those
those areas
areas which
which will
will
manufacture
manufacture such such finished
finished products
products as as have
have until
until now
now been
been imported
imported from
from
Eumpe,
Europe, andand which
which will
will have
have ample
ample needneed of
of chemicals
chemicals for
for such
such manufacture.1
manufacture.‘
which for
.chemicals which
The requirements for .chemicals for these purposes are
these purposes increasing in
are increasing in
countries
countries outside
outside of
of Europe,
Europe, however,
however, cannot
cannot be
he taken
taken advantage
advantage of
of fully,
fully,
or
or at
at least
least not
not at
at the
the same
same prices,
prices, because
because they
they will
will be
be subject
subject to
to greater
greater
competition,
competition, particularly
particularly by
by the
the Americans
Americans and
and Japanese
Japanese or
or even
even by
by new
new i
national
national producers
producers of
of chemicals.
chemicals.
The
The extent
extent and
and effects
effects of
of this
this industrialization
industrialization wave
wave are
are being
being heightened
heightened
by.
by. the
the fact
fact that
that European
European flight
flight capital
capital in
in such
such non-European
non-European markets,
markets, par-
par-
ticularly
ticularly in in South
South America,
America, is is seeking
seeking investment
investment opportunities,
opportunities, and
and that
that such
such -14T__4.,

investments
investments are are partly
partly supported
supported by by [patented]
[patented] processes
processes asas well
well asas by
by per-
|
per- I

some]
sonal and material experiences which have been taken along.
The
The above
above outlines
outlines are
are indicative
indicative of
of the
the extent
extent and
and importance
importance of of the
the
shifting
shifting which,
which, as
as aa result
result of
of the
the World
World War,
War, took
took place
place to
to the
the detriment
detriment of of
Germany’s chemical industry. In addition to the review of past events, there
is
is an
an illustration
illustration of
of the
the forces
iorces which
which after
after the
the war
war will
will have
have to
to :be
rbe faced
faced inin
serious
serious discussions
discussions not
not only
only by
by Germany’s
Germany’s chemical
chemical industry,
industry, but,
but, in
in the
the final
final
analysis, by the chemical industry of the European Continent. Both review
and
and outlook
outlook show
show that
that it
it is
is necessary
necessary to
to direct
direct all
all planning
planning toward
toward a.a successful
successful I.
M
t

conclusion of these discussions, and that diverging interests in European

industrial countries which can be influenced politico-economically by Greater
Germany, must, to this end, he be subordinated to said objective.
This
This trend
trend of
of thought
thought isis the
the guiding
guiding principle
principle and
and decisive
decisive factor
factor on
on \
1

which we are basing our expositions and suggestions with respect to the
I

individual countries. I ' r

1 (Translator’s note: This sentence appears to be incomplete in the German

1

text.) I
»- r

L .

Q .

- I
 294
294 IG
[G FARBEN
KILGORE COMMITTEE]
[APPENDIX TO REPORT OF KILC-ORB
Compilation" of direct damages-sustained
Compilation" damagesosusmined by IG in the form-~of
form-‘of its legal
predecessors as 11a result of the armistice conditions of November II,11,
1918,
I918, the provisions of the Peace Treaty of Versailles and
and the
the conflict
conflict
0f the Ruhr
of
[In thousands
[In thousands of
of Reichsmarks]
Reichsmarks]
Bel- England Russia Various
France Be1- Total
gium and Do- countries
' minions
minions not
not Spec.
Spec.
ified
(1) Branch factories and
sales
sales agencies
agencies .......................
........................ 23,674 1,455
1,466 15,580
16,580 23,711
28,71 1 3.597
3.697 ‘174.123
74,128
(2) Securities ...............-......-.......
.............-....._..-... 5,955
5:955 —-—-
'—”_' 3,076
3:076 ——-
‘—-"' “-— 191031
1 9.031
(3)
(3) Stocks, claims, notes...
Stocks, claims, notes... 1,245
1,245 539
539 11,493
11,493 3,510
3,610 4.903
4,908 ‘121.795
21,795
(4)
(4) Outstanding
Outstanding claims
claims
against customers in
enemy countries which
were
were reported
reported to to the the ,
I

Reich Compensation
Office
Ofiice (Reichsaus~
(Reichsaus- ‘
........-..................-
gleichamt) ............................- 1,876 507 6,742 18,833 —~
.i,_, 27,958

Tota1......................_.. 52,750
TotaL.........._.........._.. 32.750 2,515
2,512 31,591
37,891 51,154 8,605 3,565 132,912
132,912
(5) Loss of exchange and interest on reparation—and other dyestuffs
as per letter sent from Frankfurt/M to the Delegates of the Ger-
man Accounting
Accountin E Office to the Reichkomissariat for reparation
deliveries, Berlin, under date of September 21st, 2lst, 1926.....................
1926.................. 70,000
._...._.._
'Total 202,912
I'otal.................................................................................................................................................. 202 ,912
m

1‘ Documents and vouchefs

vouch s of: -.
' Anilm- & Soda-Fabrilc,
(1) Badische Am'lzn- Soda-Fabrik, Ludwigshafen.—Schlussentachfidi-
Ludwigshafen.—Sch1ussentschiidi-
gungsbescheid (final
gungsbescheid (final indemnification
indemnification notice)
notice) v.
v. 17.4.1934,
17.4.1934, Akt
Akt IV
IV D,
D,
Verge}. 4349 und
Vergel. and v. 4.1.35 Akt E 2, VAEa 65 263 IV des Landesfinanzamts
Berlin als Abwicklungsstelle dc
Berlin als Abwicklungsstelle dc Restverwaltung
Restverwaltung iiir
ffir Reichsaufgaben.
Reichsaufgaben.
Farbenfabriken vorm. Friedr.
(2) Farbenfabrilccn Fricdr. Bayer & Co., Leverlcusen.—Schlussent-
Leverkusen.—Schlussent-
schadigungsbescheid (final
schiidigungsbescheid (final indemnification
indemnification notice)
notice) d.d. Reichsentschiidi
Reichsentschiidi
gungsamts Berlin
gungsamts Berlin f.
f. Kreigsschiiden
Kreigsschiiden v.
v. 30.11.1929
30.11.1929 Al-it
Akt IVIV D,
D, Vergl.
Vergl. 4302,
4302,
111 -D und v. 9.9.1929 Abt. C I Gruppe fiir Wertpapiere.
Abt. III
Farbwerkc vorm. Meister Lucius & Briining,
(3) Farbwerke Brfining, Hiichst
Hb'chsc a. M.—Schlus-
M.-Schlus-
sentschfidigungsbescheid (final indemnification notice) v. 29.9.1932 Akt
sentschiidigungsbescheid
Vet]. 4038 der Restverwaltung f. Reichsaufgahen,
IV D, Verl. Reichsaufgaben, Berlin.
Leapold
(4) Leopold Cassella & Co. GmbH, Frankfurt M.——-Schlusscntschiidi-
a. M.——-Schlussentschiidi-
gungsbescheid (final indemnification notice) v. 10.1.1933 IV B. 13. Vergl.
(165 Reichsentschiidigungsamtes
10633 und v. 25.3.1931, E, III/IV B 10633 des Reichsentschfidigungsamtes
" Kreigsschfiden, Berlin.
fiir Kreigsschiiden, _
Anilinfabrikation, Berlin.-—~Schlussentschiidi-
(5) Aktiengcsellschaft ffir Anilinfabrilcation, Berlin.HSchlussentschiidi-
gungsbescheid (final indemnification notice) v. 24.9.1930 Akt. IV D, Vergl.
gungshescheid
16186 d. Reichsentschiidigungsarnts
Reichsentschiidigungsamts f. Kreigsschiiden,
Kreigsschfiden,’ Berlin.
Griescheim-Elektron, Franlcfurt
(6) Chemische Fabrik Gricscheim-Elektron, Frankfurt a. M.—Schlus-
sentschfidigungsbescheid (Fmal
sentschiidigungsbescheid (final indemnification notice) v. 14.10.1931 Akt
fiir Reschsaufgaben.
IV D, Vergl. 4645 der Restverwaltung {iir
 .. 1_,
..._ ...... u...m.-~ u... v—-— - tr . m3.

APPENDIX THREE
APPENDIX THREE 295
295
Uerdingen.——Schlus-
(7) Chemische Fabriken vorm. Weiler-ter Meer, Uerdingen.-—Schlus-
sentschfidigungsbeseheid (final indemnification notice) v. 17.7.1930 Aht."
sentschiidigungsbescheid
E, Akt. IV D Vergl. 9349 d. Reichsentschiidigungsamts f. Kriegsschiiden,
Berlin. '
(8) Kalle & Co.,
C0., Biebrich.——Schlussentschiidigungsbescheid
Bicbrich.-—Schlussentschiidigungshescheid (final inv
in-'
--.._. demnification notice) v. 20.6.1929 Akt IV D, Vergl. 9330 d. Reichsent-
v
schiidigungsamts f. Kreigesschiiden,
Kreigesschi-iden, Berlin.
(9) Wfilfing,
Wiilfing, Dahl & Ca., Co., Barman.——Schlussentschiidigungshescheid
Barman.-—Schlussentschiidigungshescheid
(final indemnification notice) v. 5.9.1929 Akt II 6A (S) 803 Dad. d.
Reischsentschiidigungsamts f. Kreigsschfiden,
Kreigsschiiden, Berlin.
’In
‘In [foreign]
[foreign] enemy
enemy countries.
countries.
’ (10) Schadensanmelduug
Schadensanmeldung fiir “Aussenstfinde”
‘5Aussenstiinde” beim Reichsausgleichsamt, |
, :
1
Berlin, laut unseren Biichern. (Damage claim for “unpaid balances” sub- i

F
mitted to the Compensation Office
Ollice in Berlin in accordance with our books.)
1 r
,
The damages acknowledged by‘ the appropriate official oflicial agencies therefore r

t
amount to a total of approximately Mk. 133,000,000 to which must he added
.. \..w,. ._-.........4..w. v A

the 70,000,000 Mk. reported as losses of exchange andAinterest

andlinterest on reparation
and other deliveries of dyestuffs.
dyestufls. The approximate amount of Mk. 203,000,000,
however, comprises only part of the direct damages sustained by German
national economy, because there are a series of major damage items which,
at that time,‘were
time,.were not reported to either the Reich Indemnification OfiiceOflice or
*-._-,v »_.-~<_¢»,t the Reich Compensation Office.
Olfice. In this connection, especially the following
items are involved:
(a) Loss in export values as a result of the computation prescribed by
~
|
1 v
the Versailles Treaty for reparation deliveries at the lowest world market
price instead of the normal export price.
(1))
(b) Damages
Damages resulting
resulting from
from months
months of
of paralyzation
paralyzation of
of the
the plants
plants in
in
V“... .-.\_,_~awr .A «m»... u um

.;,N“=-
w
Western
Westem Germany during the time of occupation and the Ruhr action.
(c) Sanction damages during the conflict of the Ruhr due to collection
nfléwp
3

of duties between the occupiéfl

occupied and unoccupied zones.
._.,-~.~.
(:1)
(ti) Confiscation and expropriation of patents and trademarks, through
=10I
the enforcement of low rates of compensation for compulsory and other f-‘vT-*?-1 _

|
licenses, and through depreciation of the agreed equivalent as a result of
currency depreciation.
J
§
._ The
The effects
effects which
which the
the damages,
damages, referred (a) to (d) have
referred to under items (:2)
Er
D
had on German economy‘ can, of course, not be measured accurately. Their
A
extent, however, exceeds several times the amount on which compensation
5
é
for damages was based at that time. Thus, for example, an amount of Mk.
t.
_\
126,000,000 accrues from item (a) alone.
.

1
2
I
l
l

/,
i
\t

|
I
t
.. .u...‘

1
r
r
0 F

5 |

L mi-.-I
. 296
296 IG
IG FARBEN
FARBEN
EXHIBIT
EXHIBIT N0. 0.13 13 Chapter Chapter II 01 oi Kilgore Kilgore Committee
Committee ReportReport
10 production,1943,comp
IG production, ared
1943, compared with total German production with total German production
IG
IG production
production Percentage
Percentage Total
Total
- 1943
1943 in-
in- of
of total
total German
German
(boundaries
(boundaries as as of of I937)1937) eluding
eluding German
German produc-
produc-
participa-
participa- produc-
produc~ tion,
tion, esti-
esti-
tion
tion 50
50 per-
per- tion
tion mated
mated
‘ cent and more
\

Product
Product
In 1,000 tons
1.
1. Nitrogen
Nitrogen 600 75
75 800
800
2.
2. Sulfuric aéid
Sulfuric acid 707
707 35
35 2,000
2,000
3. Chlorine
Chlorine .. ........ 290
290 4-6
46 620
620
4.
4. Caustic soda
Caustic and potash
soda and potash .. ---- -- 345 33
33 1,026
1,026
5. carbide .........
Calcium carbide ............_.... .. .. 830 61 1,370
1 ,370
6.
6. Aluminum
Aluminum » u 24 8 300
7.
7. Magnesium .... 27-4
27.4 83
88 30.9
. In
In tons
tons
3_
8. Nickel
Nickel .. _ .. .. 2,000
2,000 95
95 2,100
2,100
9.
9. Carbonyl powder ..
iron powder
Carbonyl iron 2,100 100
100 2,100
2,100
In
In million
million cubih
cubic meters
meters
10.
10. Compressed gases
Compressed gases ....- -. - 45 45 100
100
In 1,000 cubic meters
11.
11. Rare gases
Rare gases ......... ..- .. 27.5 55
55 50
50
In tons ‘
12.
12 Organic ihtermediates
Organic intermediates .. 1,489,000
1,4-89,000 90 1,650,000
1,650,000
13.
13 (the 66 largest
Solvents (the products)"
largest products) ............ ............ 88,200
88,200 75
75 117,200
117,200
14.
14 Methanol
Methanol ...... 251.000
251,000 100
100 251,000
251,000
15.
15 Buns,
Buna, including
including total total
' production
production of of HiilsHiils ............. .... 118,600
118,600 100
100 110,000
118,600
16.
16 Plastics
Plastics ......... 57,100 90
90 03,900
63,900
17.
17. Plasticizers
Plasticizers ....... ......... 27,900 92
92 30,400
18.
18 Synthetic resins ......-....
Synthetic resins ..... .. 29,900 53
53 55,900
19.
19 tannings '' ..............
Synthetic tannings
Synthetic .... .. 30,100
30,100 94
94 32,000
20.
20 Dyestuffs ..............................-....................................... 31,670 98 -
98 - 32,520
21.
21 Dyeing and printing auxiliaries
and printing auxiliaries 26,350 54.
54 49,000
49000
22.
22 Detergent raw materialsmaterials -............ .. . . 79,300 100
100 ‘ 79,300
79300
23.
23 IG waxes
IG waxes - .. 3,930
3,980 100 3,900
3,980
24.
24 ...........n....-............»......................
Pharmaceuticals ....................................
Pl-m,rmace11tical5 ........ 4,430 55
55 0,000
8,000
25. Sera
SETH. ............................................................... .. st.- ———- 100 --—-——
26.0 Insecticides and fungicides ....
26 24,600 55 45,000
In 1,000
In 1,000 tons
tons
27 Natural gasoline
27.I Natural ........................................... .————-——
gasoline ................................................ ¢-__------- .__. 700
700
Benzine
28. Benzine ............................................. n --------
-- —- 400
29 Synthetic gasoline
29.n Synthetic ...................................................
gaso inc ............................................ 850
850 33
33 2,600
2,600
2?-29
27-29 ‘ 850 23
23 3,700
3,700
Out of
Out of this
this production:
production:
.............................................
High- octane gasoline ...................-..................
30. High-octane ---|- 650 46 1,400
1,400
...............................
(synt11.) ..................................
31. Lubricating oil (synth.) 60 100 60
32. Explosives
32. Explosives andand gun
gun powder powder ................ ..................... —- -__-_____-_-_-

,
32a. Explosives ......................,......................... .. 221 5;
84 263
263
32b. Gun powder
32b. Gun "
powder ..................;............................................. 210
210 70
70 300
300
i ‘ I
F

APPENDIX THREE
APPENDIX 297
33. Poisonous
33- Poisonous gases
gases 7-"*1::::u|::ee::::::||uu|q5:::::¢=:::::n¢-n-qu::;;: ——*—— 95 W
i__-ii

34. Artificial silk (1938)

34. Artificial silk (1933) .........................................
m..mm........,__u 17 24
24 72
72
35. Spun
35. Spun rayon
rayon (1938)
(1938) ...'......................._............-._....
...‘..................,...._............-...... '53
'53 28
28 139
189
36. Cellophane
36. Cellophane '..............,............_.....................-........-....
' ‘ —— in
100
100 ——*-
37. Photographics:
37. Photographics:
(a) Movie
(11) Movie film
film .__.......s:=___;................sn=...:
.................................................... ———-—-— 60-70 -*—"—‘
_...Z._--1*

(b) Xd'a film-

(5) X-rayy film 50-60
50-60 ”—"-"'
,,,,Z._.-1--—

(C) Film
(cl Film for
for amateur
amateur cameras
cameras ............
............ --—-—-—-— --------—-i
75-30
75-80 , “—F"
_..1.-i--1--'

(d) Color
Color film ’......................................................
’W....................................... -----—-—
I
(til -————————- 80-85
80-85 *——"‘
'__,_,.1-—--I

(e) Photographic
(e) Photographic plates
plates ...................;..........
....................‘.......... -—-—--—
———-—-—-—- 50-60
50-60 -—"'""'
,_,__—--I-I

\\ (f) Photographic
(fl Photographic paperspapers ...........................
........................... -‘-—-
———- 50
50 '"""_'
_,..,_--—1—F

(8) .———.-
Cameras ......................................-................ -iii:-nu
(8') Cameras 5-10
5-10 *—_""
.,_1.-Q-—-F

FRANKFURT A. M.,
FRANKFURT M., August
August 13 13, 1945. 1945.
' ,NU-
‘No. 32, improved
32. improved by new figiires,
figures, August August 19, 194-5.
EXHIBIT N0.
EXHIBIT No. 14 14 Chapter
Chapter II of of Kilgore
Kilgore Committee
Committee R8P°1't
Report _'
[G Production
Production 1937
1937 and and Dependency
Dependency of of Other
Other German
German Industrie!
Industries
|
I IG
i
Farbenindustrie
on IG Farbenindustrie . _
EnCIO
Enclosed Please find
SCd please find aa summarysummary of of IG 1G productions
productions for
for 1937
1937 which
which 5;13 ‘twig;
mafij
.“P
\
"P in a simil ar way as the list oi
similar of August
August 13. 13, 1945. ComPa1'°d Compared with ““11 tthat8 113
major
is
changes appear with the following items: 16
Percentage Of
19443
19 1937
i
N0.- Calcium carbide 52
52
No. 5. Calcium carbide ............................_.-----.------------------*--'""'"' ' 61 61 33
33
No. 11.
N0. 11. Rare
Rare gases _,,,___,,,,___,___,,_,,,,__,,,_,._..,.,,............................--»---------M"-'"
I 55
No. 22. Detergent
55 --
N0. Detergent 1-aw materials _,_,_,_,_,__,,,,,,,,,,,,__,_.......................»------»» 100
raw materials 100
""
40
40
i
Insecticides and fungicides
No. 26 Insecticides fungicides .........................-.--»-»--~--»----
............“............m—.--»»--wm-- 55
55 500
No. 29.
N0- 29. Synthetic
Synthetic gasoline
gasoline 33
33 5
i
I No. 30-
N0- 30. High-octane
High-octane gasoline
gasoline mmmmmmmmmmmm...---»--~-- 46
46 -
i
1

Synthetic lubricating
lubricating oil
I
No. 31. Synthetic oil ................._...._.............---»--»»~- 100 ""
F <1
i

% The
The productions
productions ofof detergent
detergent raw raw materials,materials, high-octnne .
111511-°°l8ne gasohne, '
gasoline, and811
! synthetic
synthetic lubricating oil did not exist in 1937.
. 10
'As
'As regards
regards the
the additional
additional dependencies
dependencies of
of other
other German
German industrisis.
industrli, 0“on I6
i
1 shown
shown in the statement of August 31, 1945, the following i315 10
i° be.
be, Ball Ooducts
'wd,,ct,
No.
No. 24. Pharmaceutical:.——The dependency of
24. Pharmaceuticals.--Tlie of other
other phamaceutlcfl
Pllnmaceumii P1943 pr 3 as us
IV
on intermediate SUPplies of
°“ intermediate Bl1PPlies of IG
IG was
was in 1937 somewhat
somewhat less
less than
than In
13 Cline 0|
they could to a certain extent procure intermediates abroad. The def;l line
ethat t 0e
t the
total dependency from 60 to
total to 55
55 per cent is mainly due to the fact t fully
per cent
productio
production n 0off new
new cchemo-therapeutics' suchis asmainly
h emo- therapeutics due to the fact
sulfa drugs
druE9 waswas nnot i’°I: fl! Y
°‘ ye
£
developed.
developed. '
i
115s
N0. 26. Insecticides and fungicirles.--In
No. fungicides.-—-In 1937 copper and other mfiiagrfaalitn
metal 88in
Were sufficiently
I
a
were sufficiently available so that a number of indepcndcrll
independent Pwduc‘mll
PT°d“°°rs W were
wereem
the market;
the market; owing
owing to
to lack
lack of
of suitable
suitable raw
raw materials
materials their
their customers
custonters Inter.
1W!”-
18’s substitute materials during wartime. Incli1d.l1151937.
Includfng n
ii
partly supplied with IG’s
mediate supplies of IG to other firms,firms, IG’s share was 45-50 per cent
IG’s share was 45-50 Del’ fem m mun. um‘
No. 42. Paint and varnish industIy.—Owing
industry.—Owing to to the
the fact
fact that
that in 19 5 were
in 1937ot£11”“iess
ere
her of natural products such as
products such oils, natural
drying oils,
as drying resins, turpentine
natural resins, tl1IP¢mm° of“ ks,
available to the paint and varnish industry, the
available the dependency
dependencY 0" °" 16 IG was
was far ''
than in 1943: at most 35 per cent. _ terials
No.
No. 43.
43. Soap
Soap industry.—-No
industry.--No dependency
dependency on on 10
IG with
with respect
respect toto raw
raw materials
mi‘
existed in 1937.

2
i
{

1--
 298
298 ' '' IG FARBEN
IG FARBEN
No. 44. Tanncries.—In 1937 the
Tanneries.—In 1937 synthetic tanning
the synthetic were almost
agents were
tanning agents cn-
almost en-
confined to
tirely confined
tirely tanning agents
auxiliary tanning
to auxiliary for cutting
particularly for
agents particularly tan-
down tan-
cutting down
ning time and giving the leather a
the leather particular tanning
a particular cficct. These
tanning effect. auxiliaries
These auxiliaries
amount to
may amount
may to about 10 per
about 10 cent of
per cent the total
of the requirements of
total requirements agents.
tanning agents.
of tanning
is concerned,
leather is
As far as chrome leather dependency was
the dependency
concerned, the per cent
100 per
was 100 owing
cent owing
to the
to fact that
the fact that IG the sole
was the
16 was producer of
sole producer salts in
chrome salts
of chrome Germany.
in Germany.
No. 46.
No. industry.—In 1937
Rubber industry.—In
4'6. Rubber rubber production
synthetic rubber
1937 synthetic amounted
production amounted
about 55 per
to about
to per cent the German
of the
cent of consumption. The
rubber consumption.
German rubber dependency on
The dependency on
IS
IG in
in supplies
supplies of
of accelerators
accelerators and
and other
other auxiliaries
auxiliaries was
was 95
95 per
per cent.
cent. In
In all
all
materials necessary
other materials
other rubber no
processing rubber
for processing
necessary for dependency on
no dependency existed
IG existed
on IG
in 1937.
in 1937.
items not
For items mentioned above
not mentioned remarks of
the remarks
above the 31, 1945,
August 31,
of August good
hold good
1945, hold
also for
also 1937.
for 1937.
I. OSKAR LOEHR.
OSKAR Lorna.
A/M., September
FRANKFURT A/M.,
FRANKFURT 8, 1945.
September 8, 1945.
16 production,
IG production, 1937, compared with
1937, compared total German
with total production
German production

16
IG production Percentage
production Percentage Total
Total
;‘5 in-
1937, in-
1937, of total
of total German
German
I, eluding
eluding German
German produc-
produc-
' participa-
participa- produc-
produc- tion, esti-
tion, esti-
tion 50
tion per-
50 per- tion
tion mated
mated
cent and ,
more
UIOIB .,
Product
Product In 1,000
In 1,000 metric tons
metric tons
1.‘ Nitrogen ._.._........_..........................-................,........... 580
580 70
70 835
835
2. Sulfuric acid .............,....-............-....................._.......... 593
593 35
35 1,700
1,700
Chlorine ,,,,,__,__,,,,_,_,,,,,_,,,,,,,,,...,,,.,,.,.....................................
3. Chloring
3, 149
14-9 40
40 370
370
......m............--..-.........
potash .....................-,."-.........
4. Caustic soda and potash 199
199 30
30 660
660
.....................................................n...
5. Calcium carbide ..............................-._.-.-W...-».-. 515
515 52
52 950
950
Aluminum ............................................................................
6. Aluminum
6. 10
10 .. 77 132
132
Magnesium .......,.................................-..............................
7. Magnesium 12
12 100
100 12
12
- In metric
In tons
metric tons
8. Nickel ......_..................................._...................................... 3,112
3,112 100
100 3,112
3,112
Carbonyl iron
9. Carbonyl I
iron '.......................................... 600
600 100
100 600
600
In million cubic meters
Compressed gases
10. Compressed
10. ......................................................
gases ......m..,..................................... 22
22 45
45 49
49
-. In 11,000
In ,000 cubic meters
cubic m e ters
11. Rare gases -.....-......................._................................ 6.4 33
33 16.6
16.6
In metric tons
.............................................
12. Organic intermediates ....“.................................. 496,000 90 550,000
'
13. Solvents ._.............................-..l............................................. 97,800 75 130,000
14-. Methanol .............................................................................. 104,500
104,500 100 104,500
Synthetic rubber
15. Synthetic ...........................u.........................._
rubber ..........................."...................._.- 3,473 100
100 3,473
16. Plastics ........s...-........_..._...........“...................“...."......... 3,161 90 3,500
17. Plasticizers ..........................s..............................,..,......- 5,578
5,573 90 6,200
x
18. ............-...............................................
Synthetic resins ._.........;..................,......................... 12,370 50 24,700
19. ..........................
Synthetic tanning agents ......................"......._... 12,245 100 12,245
12.245
20.
20. Dyestuffs .._-....._..r.....................................,.........--..-.._..
Dyestuffs 68,470
63,4-70 98 69,900
21. Dyeing and printing auxiliaries .................. .................. 23,890 55 43,000
48,000
22.
22. Detergent raw
Detergent ....................................
materials ....................................
raw materials None -—
F-
———
j
 THREE
APPENDIX THREE
APPENDIX 299
299
23. IO
23. IG waxes
waxes ......,...--.......-..s........-......_.“.-_.._..__,,,__ 2,975
2,975 100
100 - 2.975
2,975
24.
24. Pharmaceuticals ...................................-.....-...2;.........
Pharmaceuticals ...................u...............u.~...u...':.......... 2,676
2,676 50
50 5,350
25. Sera ........-.-........................................................................-._. ——
‘-—- 100
100
26. Insecticides and fungicides ...._........................ 5,058 40
40 12,850
In 1,000
In 1,000 metric
metric tons
tons
27. Natural gasoline ........................,._,,,,,,,,,,_,____________,__,___ ____ ..__
._....- 300
28. Benzene
28. Benzene —._—
t —-
in 300
300
..mmmmmmmmmmmmmmm,,__
29. Synthetic gasoline .......__,.,,,,___,__,,,__,__,_,____ 300 50
50 600
600
27-29 ......................................................._..,,,,._,,,,___,,,_,,,___________ 300 25
25 1.200
1 ,200
Out oiof this production:
30. High-octane gasoline .............................u.........._.
.............................-..........__ None ——-
._.
———"'"
.1_Z--—--n

31. Lubricating
31. Lubricating oil (synth.) ...,.,..._,,____,,_,,,,__,________ .............~..............._.... None -—-
-—- ,_,.,..__i--i-

32. Explosives
32. Explosives and
and gun gun powder powder ........................._,,,
............................. (1)
(1) (1)
(1) (1)
(‘)
32a. Explosives ................_._,,,_,,,,___,,_,____________________"_ (1)
(1) (1)
(1) (1)
(‘)
(1) (1) . (1)
32b. Gun powder ............................................................-. (‘) (1) (‘)
33. Poisonous gases ........-......_.......~.................h............
........_................................-.,.__,____,_ .- None ~— ——
34. Artificial
34. Artificial silk
silk (1938)
(1938) .....,...,,,,,,,,_,,,,,_,,_____________________
_.._.__m.mw_,,,m,_m 17
17 24
24 72
72
..............................m....".u.......
35. Spun rayon (1938) .......,_,_,,,,,___,_,,,__,__m_____m_______ 53 23
28 1189
89
36. Cellophane ......................'.'..,....._._,,_,_,,___,_,,__,"__,______ -—-—————-
.._._._._.__. 100 -—--——
,i_.._ii~

Photographics:
37. Photograpbics:
(a) Movie film ...............................................
_ (ct) ........................................... -———-——
----——— 60-70
60-70 _Z._.i--—-

(b) ', X-my

(b) X—ray film
film ....................-.._........................._._.. -—-—--- 50-60
50-60 _,_--iii

.........". —-—---—-
(c) Film for amateur cameras .........-. ——---——— \' 75-80 _-1-i-—~

(d)
(d) Color
Color film
film .............................._-....-._.
.............m.."..................m..u.....u. -----
——-——- so-as
80-85 11-ii

-".u..........».u....,. -—-——
(e) Photographic plates ............................. ———- 50-60 —-——-*—-
,1.___—-u—-

.........u.......-....... ———-—-—-
(f) Photographic papers ........................ —-—-—-~ 50 “#7"—
,1._.Z-an--—

....m.................................“........“...... -—-——-
(g) Cameras ...........................................-...... -———— 5 M
.2-...i-nu-and

Frankfurt
Frankfurt a/M., September
September 8, 8, 1945.
1945.
1No
‘No figures
figures available.
available.
DEPENDENCY
DEPENDENCY OF
or OTHER
Ornna GERMAN
GERMAN INDUSTRIES ON
Itvousrnuzs on
FARBENINDUSTRIE
IG Fnnnamuousrnre
“16 Production 1943"
Supplement to list “IG 1943”
' ' Altgust 13th, 1945
of August
of cases
In a number oi the percenta
cases the ge figures
percentage given for
figures given IG share
for IG total
in total
share. in
German production be suppleme
to be
have to
production have supplemented additionall data.
by additiona
nted by data Wl1lClt show
whlch sh_ow
industries are
how far other German industries dependentt on
are dependen on IG supplies oi
for supplies
IG for of un-im- . t

portant raw
portant raw materials
materials oror intermediates.
intermediates.
Aluminum.——-IG is
No. 6. Aluminum.—-IG producer of
is producer and probably
Kryolith and
synthetic Kryolith
oi synthetic probably pro-pro-
thamhalf of
duces far more than-half this product,
of this needed in
product, needed in considerable quantities for
considerable quantities 101'
. the electrolytical production of aluminum.
N0. Plastics.—Exceeding the
16. Plast£cs.—Exceeding
No. 16. percent of
90 percent
the 90 the IG
of the share, 10
IG shgre, supplies
IG supplies
Rfihm &
firm Riihm
the firm Darmstadt, with
Haas, Darmstadt,
8: Haas, with intermediates. Thus the
intermediates. Thus the share oishare of
16 in the field of plastics comes up to 93-95 percent.
IG
No. 20-
NIL supplying the
Dyestufis.—By supplying
20. Dyesmfii-—By Grenzach, with
Geigy, Grenzach,
firm Geigy,
the firm with inter-
inter-
mediates it
mediates it can
can be
be assumed
assumed thatthat IG’s
IG’s share
share in
in the
the German
German dyestuli
dyestufi industry
industry
is increased
is increased from
from 9898 to
to 99
99 percent.
percent. On0n the
the other‘
other” hand
hand itit must
must be be stated.
stated:
peacetimes foreign
that in peaeetimes participated with
firms participated
foreign firms percen in
10 percan
about 10
with about the
in the
sale of dyestufis used in Germany.
No. 24.
No. 24. PIzarmaceuticals.—-'I_'he
Pharmaceuticals.——The share share of
of 55
55 percent
percent given
given in in the
the list
list is
is
somewhat amply calculated, because the higher value of IG products compared
 F 1
J

300
300 ' t 16 FARBEN
IG FARBEN
with
with those
those of
of firms
firms ofof medium
medium and
and smaller
smaller size
size especially
especially has
has been
been taken
taken into
into
calculation.
calculation. '
Important
Important intermediates
intermediates such
such as
as phenol,
phenol, salicylic
salicylic acid
acid and
and aniline
aniline could
could
be
be purchased
purchased onon the
the open
open market
market inin quantities
quantities sufficient
suflicient for
for the
the production
production
of
of large
large products
products suchsuch as
as aspirine
aspirine and
and pyramidone
pyramidone by by firms
firms outside
outside IG.
IG.
Furthermore,
Furthermore, thethe German
German pharmaceutical
pharmaceutical industry
industry is is almost
almost entirely
entirely inde-
inde-
pendent
pendent ofof IG
IG as
as far
far as
as products
products made
made from
from natural
natural drugs
drugs or
or animal
animal glands
glands
‘are
are concerned
concerned (Morphiates,
(Morphiates, insuline
insuline and
and other
other hormones).
hormones). Nevertheless
Nevertheless there
there
l is
is an
an additional
additional dependency
dependency on on IG
IG with
with respect
respect to to important
important synthetic
synthetic pharma-
pharma- '
ceuticals,
ceuticals, insofar
insofar the
the other
other German
German products
products rely
rely on on the
the supply
supply of of essential
essential
intermediates.
intermediates. Examples
Examples forfor this
this dependency
dependency are:are: -
|____ _ " "7 . . J" V '7"’ .77. "'"'7* "'77 "'77 __

i » Name
Name of
of
Firm
Firm -- Name
Name of
of product
product i intermediate
intermediate
r ' ' ,,,,, __ ' ' \ " _._ I " _ —— |

C.
C. H.
H. Boehringer
Boehringer Sohn,
Sohn, Sympatol
Syrnpatol (curative
(curative for for Y Methylamine.
Methylamine.
Ingelheim
Ingelheim __._........mmmmmm
...._...........,..r,.._.... cardiac
cardiac trouble)
trouble) mm... .....-._.... I
E.
E. Merck
Merck Darmstadt
Darmstadt m... Ephedrine Ephedrine (curative
(curative for for pi Benzylchloride.
Benzylchloride. '
1 diseases
diseases of
of circulatory
circulatory l;
lj system)
system) ...'...
...'.. .....
......
Goedecke
Goedecke 81 8: Co.,Co., ‘ Gelonida
Gelonida antineuralgica
antineuralgica r Phenacetine.
Phenacetine.
Magdeburg
Magdeburg ........_............
...........................\ (antirheumatic)
(antirheumatic) .............
............... I
Schering
Schering A. A. 0., G., Berlin...
Berlin...... Antipyrine Antipyrine (antipyretic)
(antipyretic) l Dimethylsulfate.
Dimethylsulfate.
Do
D0 ..mmm......................m......
............................................. Globucid
Gl0b1lCld alhucid
albucid \ Sulfanilic
Sulfanilic acid.
acid,
(chemotherapeutics;
(chemotherapeutics; l
sulfa
sulfa drugs)
drugs! ..........................
...... .

Taking all circumstances into

all circumstances consideration, the
into consideration, dependency of
the dependency of the re-
the re-
maining pharmaceutical industry
maining pharmaceutical industry on on the the supply supply of intermediates by
of intermediates by IG will
IG will
probably amount to another 5
to another percent at
5 percent at most most and and thus thus IG’s IG’s share share will be
will be
increased
increased from
from 55 55 to to 60
60 percent
percent at at most.
most.
No.
No. 26.11nsectic1'des.———
26. ‘Insecticides.-~IG’s IG’s share share of of 55 55 percent
percent will will be be increased
increased by by 510
5-10
to 60-65 percent by
to 60-65 percent by the
the supplies
supplies of
of intermediates
intermediates to
to medium-sized
medium-sized and
and smaller
smaller
firms
firms which
which work
work in in this
this field.
field." -
Fzelds
Fields of of Production
Production Nat Not Mentioned
Mentioned in in the the List List
No.
N0. 37 (h). Photochemical products.—-By
products.—By its
its organic
organic intermediates IG
intermediates IG
leading in
leading in this field. Its
this field. share can
Its share can be estimated at
be estimated at 70-80 70-80 percent. percent.
No. 38. Bichromate.—In the
38. Bichromate.—In field of
the _‘! field of chrome chrome salts salts IG IG was was controllingcontrolling
percent of
100 percent German manufacture. However, the figures of production
the German
of the manufacture. However, the figures of production
declined
declined in in recent
recent yearsyears owing
owing to to lacklack of of chrome
chrome ore. ore.
In
In normal
normal times
times the the outlets
outlets of of the the production
production were were as as follows:
follows: .
' ' _ Percent
Percent
industries)
Export (mostly consumed in leather industries).-:-..=-.»-..............._,.-......_...._...,...._.. 51
51
Germany:
Germany: - _
(11) Leather industry
(0) Leather industry ........--.--..-.-..........................................................................21.0 91.0
(b) Textile industry ................................................................................. 6.0
(c) Mineral
(0) Mineral colors.................._.........................-..-.......--..............................................................
colors 6.0
6.0
(d) Preserving
(d) Preserving mixtures
mixtures for for timbertimber in in mines........................................_..
mines“................. 5.0 5.0
(e) Catalysts for chemical syntheses, particularly gasoline.......;...... gasoline.~.......;._... 4-.5 4.5
(1) Metal
(I) Metal industry
industry (Chrome
(Chrome plating) plating) ...-................................................................ 4-.5 4.5
(3) Various
(3) Various industries....................a-..................._.................................................................
industries 5.0
5.0
- -—-— 49
49

\
 ___.- .___.=.....-——_— ' —. v_7;_.(___ __ .__r.,'___-_~-_ ~.v _~.-f-. ___Tw_i

' APPENDIX
APPENDIX THREE
THREE ,
I 301
301
In the leather industry chrome salts are used for manufacturing chrome-tanned ehrome-tanned
leather, in the mineral color industry for producing chrome yellow and other
chrome colors, in the textile industry particularly in the dyeing of woollen
good. In preserving timber chrome salts can be replaced by other chemicals
to a certain extent, but they are indispensable for catalysts particularly in the
I production of synthetic gasoline.
t No. 39. Phosphoric acid.——IG
acid.-—IG did not produce crude phosphoric acid, but
it was the only producer of oi pure phosphoric acid (by combustion of phos-
phorus) at Piesteritz. A large part of oi this production was consumed by 16 IG
works making mixed nitrogen fertilizers. The remainder was consumed by the
soap and detergents industries, by manufacturers of foodstuffs and baking
powders,
powders, forfor treatment
treatment ofof hard
hard water
water and and for
for de-rusting
de-rusting purposes.
purposes.
No.
N0. 40.
40. Hydrocyanic
Hydrocyanic acidacid and
and sya'nides.———IG
sya'm'des.--IG is is the
the largest
largest producer
producer of of
hydrocyanic
hydrocyanic acidacid and
and cyanides.
cyanides. Part
Part of of its
its production
production is is for
for own
own consumption
consumption
to
to p’roduce
produce intermediates
intermediates forfor plastics
plastics and and synthetic
synthetic rubber.
rubber. IG’s
IG’s shareshare of of the
the
market
market is is estimated
estimated toto 'be
"be 40
40 to
to 5050 percent.
percent. Sodium
Sodium cyanide
cyanide is is mainly
mainly used used
in
in mining,
mining, particularly
particularly for
for flotation
flotation of of ore
ore and
and for
for tempering
tempering or or hardening
llflrdfillinf;
steel.
steel. Hydrocyanic
Hydrocyanic acidacid and
and some
some cyanides
cyanides areare used
used for
for fumigation
fumigfiliml purposes,
P1I1'P°B¢$-
pest
pest control,
control, etc.
etc. -- ''
No.
N0. 41.41. Mineral
Mineral colors.—(a)
c0l0rs.—(a) Titanium
Titanium dioxide:
dioxide: .The
The Titangesellschaft
Titangesellschaft
m.
tn. b.
b. H-’
H., Leverkusen
Leverkusen (50(50 percent
percent owned
owned by‘IG,
by‘ IG, 50
50 percent
percent byby National
National Lead) Lead)
is the only producer of titanium dioxide in Germany. _ .
(b)
(b) Lithopone:
Lithopone: TheThe production
production of of Leverkusen
Leverkusen including
including its its partielpattons
participations
is about 38 percent of the German production.
r (c) Remaining white colors (white lead and zinc white): In this field
IG did not participate.
~._=. »-. (d) Iron oxide:
oxids: By its extensive production in Uerdingen 16 IG was leadiqg leading
in this field. Share probably by 90 percent. '
(e) Remaining fancy colors: Participation of IG quite insignificant, but
9
a certain dependency of other producers from IG e'xists eitists with respect to chrome
w
I»
salts. (See N0. No. 38 above.) '
No. 42. Paint and varnish industry.—This
indu.stry.—This industry needs the following
I products. '
6
F . 13-
18. Synthetic resins, on the average about 35 percent of
oi the total quantity.
13. Solvents, on the average about 62 percent of the total quantity.
xmu‘; ,. Wm»... .

v. .e. 17. Plasticiszers, on the average about 3 percent of the total quantity. Total l
>l
100 percent. \

The domination in percentage of the German market by IG in

Il
in‘ the 3
#-1:-1:0;
The
1
1.1 groups, results in a dependency of about 65 percent of the paint and varnish varnish
industry.
9
,e_,,4....u mu.“ 1..

NO-
N0- '43-
'43- Soap
Soap indUStfy-“In
industry.--In the
the last
last period
period of
oi the
the war
war the
the soap
soap industry
industry
by way of the group 22, “etergent raw materials” nearly entirely depended
on the 16.
IG.
-__».»‘.-
N0. 44. Tanneries.-—By
Tanneries.--By the synthetic tanning materials of group 19, a
-||
'¢
.5 strong dependency on IG of the tanneries has developed--at
developedvnt most 50 percent.
percent.
As
As far
far as chrome leather is concerned, the dependency is is 100
100 prcent.
prcent. (See
(See
s " No. 38 above.) I
No. 45. Glues and
and'adhcsives .—The old glues such as rye products,‘ casein
adhesives.—The
glue, and animal glues were to a considerable extent replaced by synthetic
glues: for exampl: Kamit,
Karuit, a urea formaldehyde condensation product marketed
by 10.;
IG.; a phehol
phenol formaldehyde condensation product 'mnrketed
_marketed by Dynamit

I
4
 302
302 IG FARBEN
IG FARBEN
A. G., Troisdorf;
A. G., Tegolcim, aa phenol
Troisdorf; Tegolcim, condensation product
formaldehyde condensation
phenol formaldehyde mar-
product mar-
keted by
keted by Theodor
Theodor Goldschmid
Goldschmidt t A.
A. G.,
G., Essen.’
Essen.’
The share
The of IG.
share of and DAG
IG. and together in
DAG together the market
in the amounts to
market amounts about 50
to about 50
percent.
percent. .
_
industry.--—(a) Concerning
Rubber iTldLLSfI")/."—(€1)
46. Rubber
No. 46.
No. Concerning the main product
the main caoutchouc
product caoutchouc
manufacturi ng rubber articles depended nearly
the industry manufacturing rubber articles depended nearly entirely on entirely the
on the
IG in
IG the last
in the period of
last period war.
the war.
of the
antioxidants, plasticizers
Accelerators, antioxidants,
(1)) Accelerators,
(b) plasticizers and auxiliaries: This
similar auxiliaries:
and similar This
field was
field by IG
controlled by
was controlled IG to about 95
to about percent.
95 percent.
(e) black: In
Carbon black:
(c) Carbon this field
In this IG’s own
field IG’s production was
own production was quite insignifi-
quite insignifi-
but by
cant but
cant by adding of Chemische Werke IIiils and
productions of Chemische Werke Iliils and Bayerische
the productions
adding the Bayerische
Stickstofiwerke, Piesteritz,
Stickstoffwerke, IG’s share
Piesteritz, IG’s come up
will come
share will percent of
20-25 percent
to 20-25
up to the
of the
production. .r
German production.
German "
(d) Sulphur:
(ti) Sulphur: The part of
greater part
The greater was imported
sulphur was
of sulphur imported from abroad.
from abroad.
(3)
(e) Other
Other materials
materials for
for the
the rubber industry: In
rubber industry: In this
this field
field waswas nono sub-
sub-
stantial dependnecy
stantial dependnecy on on IG.
IG.
0.
O. Lomm.
Lonnn.
FRANKFURT-a.-M.,
Fmturcrunr-a.-M., CVstcvst August,
August, VTDE.
vrnn.

I-"Kw. 7 ‘

1
r
 \

References
References ,/

The greater part of this

part of based on
is based
book is
this book on the author’s own
the author’s artd
observation and
own observation
experience in
experience Germany and
in Germany and onon material concerning IG
material concerning IG Farben contained in
Farben contained m ‘
the Kilgore
of the
the records of (Sub-Committee of
Committee (Sub-Committee
Kilgore Committee U. S.
the U.
of the Com-
Senate Com-
S. Senate
Military Affairs,
mittee on Military Congres s). To fill in the broad picture
79th Congress). To fill in the broad picture of IG
Affairs, 79th 0f 10
Farben and the setting within
the setting which it
within which it operated, variety of
operated, aa variety sources was used-
of sources was used-
The following is aa list
following is some of
of some
list of of these according to
grouped according
sources, grouped
these sources, to the chap-
the chap- \

ters in
ters in which
which they
they were cited:
were cited: _.
CHAPTER 2
CHAPTER 2
(Subcommittee on
Committee (Subcommittee
Kilgore Committee War Mobilizat
on War Mobilization the U.
of the
ion of Senate
S. Seflfllfl
U. S.
Committee on
Committee on Military? Congress): Report
79th Congress):
Affairs, 79th
Militant Affairs, on IG
Report on Farhen,
IG Farben,
VII, VIII,
Parts VII, and X
VIII, and g exhibits), U. S. Governme nt Printmg
(includin exhibits), U. S. Government Printing
X (including
Washington, 1946.
Office, Washington,
Oilice, 1946.
and Welsh,
Borkin, Joseph, and A.: Germany’s
Charles A.:
Welsh, Charles Germany’s Master Plan, Duell,
Master Plan, Sloan
Duell, Sloan
and Pearce,
and Pearce, New
New York,
York, 1943.
1943.
Duisberg, Speeches and
Duisherg, Carl: Collected Speeches Papers, Germany,
and Papers, 1933 (untranslated).
Germany, 1933 (untranslated)-
Haynes, Williams: This
Ilaynes, Chemical Age,
This Chemical New York,
Knopf, New
Alfred Knopf,
Age, Alfred 1942.
York, 1942.
Money and Molecules, Doubleday Doran
Men, Money and Molecules, Doubleday Doran &
Haynes, Williams: Men, & Co., New
C0,, New
York, 1936.
The Riddle
Lefebure, Victor: The the Rhine,
of the
Riddle of Collins Sons
W. Collins
Rhine, W. Co., London,1921.
81 Co.,
Sons & London,1921.
Wickel, Helmut:
Wickel, Helmut: IGIG Deutschland,
Deutschland, Germany,
Germany, 1932
1932 (untranslated)-
(untranslated).

CHAPTER 33
CHAPTEB.
Costantino: The
Bresciani-Turroni, Costantino: Economics of
The Economics Inflation, George
of Inflation, Allen and
George Allen and
Unwin
Unwin Ltd.,
Ltd., London,
London, 1937.
1937.
Dawson, Sir Philip: Germany’s Industrial Revival,
Germany’s Industrial Williams &
Revival, Williams Norgate Ltd.,
& Norgate Ltd»
London, 1926.
Graham, Frank D.: Exchange, Prices and
Exchange, Prices Production in
and Production Hyper-Inflation: Ger-
in IIyper-Inflatian: Ger-
many, I920-23,
many, 1920-23, Princeton
Princeton University
University Press,
Press, 1930.
1930.

, 303
303
_.-.-

m_.i.Zl
 304
304 AI IG FARBEN
ac FARBEN
Hjalmnr: The Stabilization of the Mark, Adelphi Co., 1927.
Schacht, Hjalmar:
Stolper, Gustav:
Stolper, Gustav: German
German Economy,
EcorLomy, 1870-1940, Reyna] 82
1870-1940, Reyna] & Hitchcock,
Hitchcock, New
New York,
York,
1940.
Wickel: op.
Wickcl: op. cit.
cit.
CHAPTER 4
CHAPTER 4
Kilgore Committee: op. cit. -
Duisberg: op.
Duisberg: op. cit.
cit.
Paime: Fascism and Social Revolution, International Publishers, New
Dutt, R. Palme:
York, 1935.
Eisler, Gerhart; Norden, Albert; and Schreiner, Albert: The Lesson of Ger-
many, International Publishers, New York, 1945.
Houghton Miillin
Heiden, Konrad: Der Fuehrer, Iloughton Mifilin Co., Boston, 1944.
Schacht, Hjalmar: The End of Reparations (translated by Lewis Gannett),
J onathan Cape & Harrison Smith, New York, 1931.
Jonathan
Wickel: op. cit.
CHAPTER 5
CHAPTER 5
Kilgore Committee: op. cit. ,
Nye Committee (Special Committee Investigating the Munitions Industry, U. S.
Senate,
Senate, 74th
74th Congress):
Congress): MLL'm'tL'ons
Munitions Industry
Industry Hearings,
Hearings, Parts
Parts III,
III, XI,
XI, and
and
XII, U. S. Government Printing Office, Washington, 1935.
Duisbei'g:
Duisberg: op. cit.
Englehrecht,
Englebrecht, H. C..
C., and Hanighen, F. C.: Merchants of Death, Dodd, Mead 8:
Co., New York,1934.
New'York, 1934. .
Fraser, Lindley: Germany Between Two Wars, Oxford University Press, 1945. 194-5.
. Schultz, Sigrid: Germany Will Try It Again, Reyna]
Reynal & Hitchcock,
Ilitchcock, New York,
1944.
194-4. .t .
'Wickel:
Wickel: op. cit.
CHAPTER 6
Kilgore Committee: op. cit. _.
Dickstein Committee (Subcommittee of Special Committee on UnAmerican
Activities, House of Representatives): Investigation of Nazi Propaganda
5.: Government Printing Ofiice,
Activities, Hearings No. 73, U. S.-Government Office, Washington,
1934. _ ' .,
Duisberg: op. cit. I '
Brief—In the Matter of a Proposed Reciprocal Trade
Garvan, Francis P.: Brief-In Tracie Treaty
Between the United States and Switzerland, The Chemical Foundation Inc.,
New York, 1934.
Nationhl Industrial Conference Board: Rationalization of German Industry,
National
New York, 1931. ,’
Riess, Curt:ToLa1
Curt: Total Espionage, G. P. Putnam’5
Putnam’s Sons, New York,1941.
York, 1941.
Rowan, Richard Wilmer: Secret Agents Against America, Doubleday Doran 81
Co., New York, 1939.
. CHAPTER 7
Kilgore Committee: op. cit.

"-\,~. |,
\..,_‘§‘-‘
" -. *1.
i
>

REFERENCES
REFERENCES _ r- 1. _305
3'35
CHAPTER 9 P 1

Kilgore Committ ee: op. cit.

Committee: _ _. __ .. 1
Truman Committee (Special
Truman Committee (Special U.
U. S.
S. Senate
Senate Committee
Committee Invflsllgalgg
Invesugatmg ll: the gfimilgzg
11211111121531

._.__A__
. <

Defense Program,
Program, 77th Congress,
Congress, 2nd Session):
Session): R355”: Report 0'.
Rubber, 2epo .’ u
Part 7, U. S. Government Printing Ofiice, Washington, 1942.
Ollice, Washington» 194 - ,
Borkin
Borkin 8:
8: Welsh:
Welsh: op.
op. cit.

7r.-,4._____-._.___..___ ___
cit. f
'Haynes,
Haynes, Williams, and Hauser, Ernst A.: RationedRattoned Rubber,
Rubber. Alfred A. A‘ Knopf,
Knop ’
Ne
Neww Yor k, 194
York, 1942.
2.
Reimann, Gue
Reimann, nter: Pat
Guenter: Patents ' k 194 2
ents for Hit
Hitler. Vanguard Press. N°“'.Y°Ik'
ler, Van guard Press, New YOI ’
1942' E
I

CHAPTER
CHAPTER 10
10 _. - ¢._ _ _ . ___

Kilgor
Kilgoree Committee:
Committee: op. cit. i
fler‘ge, Challenge to a Free World,
fierge, Wendell: Cartels, Challenge World. Public Allairs
Afiairs Press,
Press, j
r" ' Wash
/" ington, 1944-.
Washington, 1944. -. '-
Bork in 81
Borkin & Welsh:
Welsh: op. cit. E
Moody’s Industrial
Moody’s Industrial Securities.
Securities.
Reimann: op. cit.
Reimann:

P CHAPTER
CHAPTER 11
11 .
Borkin 81 Welsh: op. cit. ' ,, in we
, . '
Vaughan,
Vaughan, Floyd W4 “Suppression
W.: “Suppression and Non-Workmg
Non-Working of P919915!.. 111
P3l°"_l5' - h
1°
'' Americ an Economic Review, December,
American Economic Revieufv December 1919. '
' . h ,
(See also various articles by I. F. Stone, in
iii the newspaper PM.
PM’ concernmg
cmcemmg ' the
I 6 _ ‘
handling 0f
of 1G
IG Farben assets in the United States in 1944 and 1945') ' i l
|

APPENDIX 1
- . ~P

i APPENDIX 1 .' d States- I76tl1

Temporary National
Temporary National Eco
Economic Committee, Congress of the U111";
nomic Com _ ‘ ling ;bmce,
7611) >
mittee, Congress Of the Um“? '81
Congress, 3rd Session,
Congress, Session, Part
Part 25: Cartels;
Cartels; U. S.
5. Government
Government rm I111 :;egsomccv
Washington, 1941.
Washington, 1941. ~
Barge
Berge,, Wende ll: op. cit.
Wendell: ' i
Edwards, Corwin D.: Economic and Political . .
Political ' l Car
of Internatzonal
Aspects of
Aspects l!1¢""““°M C.ar.ettl
e[SS
Committee), U.
(monogrsph.prepared for Kilgore Committee), Cflvemment Prm
S. Government
U. 5. ' t'n1 g
(monograph prepared Pmmng
Office, Washington, 1944.
Hexner, Ervin: The International Steei
Hexrgsglclilrlllz?h;l:dTlnt]e2il:ttional Steel Cartel, °£ North
Universit)’ of
Cartel, University Carolma
North Carolina
' Press, Chapel Hill, 1943. 1 _.__. ._?,—~r-

of North
Unirersity of
Ervin: International Cartels, University Press’ Chape
Cardin“ Press,
North Carohna
s1
P Hexner,
Hex1:21;szlrwliiifll:ltd:tlllidr?:l;.Cartels, Chapel
Hill, 1945. .
Liefmann, Robert: Cartels, Concerns and Trusts
I.-iefnIl:ii1ln,1i{4fbert: Trusts- (translated 133' D'.H'. Mac-
by D-_“ Mac.
‘‘ Gregor).
Gregor), E. E. P.
P. Button
Dutton 8;
8; (30.,
Co., New
New York,
York, 1932.
1932.
Prensa,
Preuss, Ernst 0.: G.: Merchant:
Merchants of Death, Hutchinson . 8: Co., London, 194-5 ( W'n
L0I1d°"' 1945 W''In
the
the Peace Pamphlet No. Nb. 4). I: ‘
Pribram, Karl: Cartel Problems, Brookings . .
Broolungs Institqtion, .
II‘lSlllllll0I1| -
Washington.
Washington’ 1935.
1935'
CO ., N cw
ew
\ ', N

Steflens, Lincoln: The Letters of Lincoln Stelleflst

Stellens, Steflens, HflY¢°"T1v
Harcourt, Brace st3‘ C0
‘
..
York, 1938 (Vol. I).
' '. ‘k' S
V'k'
Vebl
Veblen,en, Thor stein: Impe
Thorstein: rial Germ
Imperial any and the Industrial Rwalutwn' VI 1".
Germany and the Industrial Revolution, I
m9
Press
Press,, New York
York,, 1942.

.
I
L
I.
F,
 Index

PAGE
PAGE PAGE
PAGE
. A ‘ Aussiger Verein
Aussiger Verein . ..........1l7-119
......117-119
Aviation Corp.
Aviation Corp. . ..187
.................187
Abs,
Abs, Hermann ...........................,.........._-.......213
Hermann .............._............-..........--.......213
Advance
Advance Solvents
Solvents &
& Chemical
Chemical B
B
Corp. .....................................................................168
Corp. 168 Bach, J. S.
5. ’14
A.
A. E.
E. G.
G. (German
(German General General bacteriological warfare ........m..."...............3O
bacteriological warfare .................................3O
Electric Co.) -.-.-..........,....40,
-.-..................40, 43,- 213 Badische Anilin 11nd Soda Fahrik
Anilin und
AGFA
AGFA (IG) (IG) ......_.....1»--.....,...............,.,27
......-..........-.....-..................27, 34 34 (see Ludwigshafen—IG)
Ludwigshafen-—lG)
Agfa-Ansco
Agfa-Ansco ..-.................................-mm-..“..182
..-..................................-...........-......182 25,
25, 27, 27, 52 52
Ala
Ala Littoria
Littoria ..............".......................-.... ............151
.....................................-..................151 Bacyer,
Bacyer, Prof.
Prof. ............... nlInul-vr—O‘vnl nun. ........23, 33
........................._.....................23, 33
Alien
Alien Property
Property Custodian Custodian Baruch,
Baruch, Bernard
Bernard ....-155 ......155
' 37,
37, 167, 167, 178-183,178-183, 186—189 186-189 Bates,
Bates, J.
J. S.
S. ....... ......-nun".- ........".........................186
............................................................186
“Alig”
“Alig” agreement
agreement ........................................173
.........................................173 Bausch
Bausch 818: Lomb
Lomb .... u............n-um ...-nu .175-176
,,_,......._...._...................175-176
alizarin
alizarin red 123
red ...........................................................123 Bavarian
Bavarian Kiln
Kiln 215500.“... nau-.nmuuu ........-.241
Assoc. .................................24~1
Allen,
Allen, George
George E. E. ...-..m.....,....,129,
.............................129, 187 187 Bavarian 'Motor
-Motor Works .1.........-._-_........6
.-.........-.--_.......6
Allied
Allied Chem.
Chem. & 8: Dye'
Dye ............183,
......................183, 190 190 “...-...munuuu- ......m..-........187
Baxter, R. H. ...............-................_.........-187
Alted
Alted 171
......................................................................a..171 Bayer productsmww27,
products 180,182
180, 182
aluminum ...............,.....-.......-.,...,..........170-172
.....................-.......-.....,..........170-172 Bayer
Bayer Semesan
Semesan Co. Co. .-..........m. ...-.-238
Aluminum
Aluminum Co.
Co. of
of America
America “Bayer
“Bayer 205”. ......u...".....30
205” ..-........._.............................-............30
(Alcoa)
(Alcoa) ......-..-..................,10,
......_..-.................._1l), 171-173,
171-173, 184
184 Berge, Wendell":
Wendell ......--..158, .-.2-1158,"170" 170, 174, 24.6 24~6
Aluminum
Aluminum Werke
Werke .......................................1
.......................................1722 Bergius ........ ....................85, 142-143,
......................-............85, 142-14-3, 247 24-7
Ambler,
Ambler, Eric
Eric ..........M.-.........-..-.--._..............-97
.............-.........-..-.--._..............-97 Berlin NW7(1G)
NW-7 (IG) -.....h.-......97, 275~286
-.....-.-......97, 275-286
Am.
Am. Bosch
Bosch Co.
Co. ....-.2................-............,,.246
...........................-...............246 C01. Bernard
Bernstein, Col.
American
American Cyanamide
Cyanamide mmm.............183
....................-.-.......183 114, 168, 196, 198, 203, 206
11, 114-,
American
American 1G
1G Co.
Co. ...-.............147,
..................14~7, 182,182, 188 188 Biscarlet, Alfred ......m. .212
................................................212
American
American Magnesium
Magnesium Co. Co. ......172,
......172, 184 184 Otto....-..u.-...,......................24,
Bismarck, Otto ..._.....-...-......................24-, 65
anesthe 30
tics .............................-....._...................-.30
anesthetics miiitia ..................-............................76,
black militia ......m. .........................76 82
lo-German Naval
An lo-German
An Naval Treaty Treaty -- blockade 19
61935) 78
1935) -....................-....................................78 Bobingen Works (1G)
(IG) ............~............200
......._.................2OO
Anilinas
Anilinas Alemanas
Alemanas .....................1167,
......................-167, 168
168 bombproof factories .-....M...............,......,....5
._....--................-......-....5
Anti-dumping Act (U.S.—1921)....-96 Bone Committee ...................n.....».........m..170
.......-.......- -.-._........._...170
“.AO”
“A0” (Auslands-organization) Bonn, University of.
of ............................21
. 105, 164 Borkin,
Borkin, Joseph
Joseph ..................:.............._1
-...............-.--......._170-17170-171
Arnold, Thurman -.Wu.--m........m.159
..................-...................159 Boruta
Boruta n-un- ... ............................119-120
............................................................119-120
”noun.

latabrine
Iatabrine ................................................174 174 _Bosch,Prof.Ca11"
BOSCH Prof. Carl
Attlee, Clement .....mm.........”...192,
.............................,...192, 217 9, 13, 50-57, 66, 69-70, 85-86, 109, 111
Auffinger,
Auflinger, Lt. Col. George ..."...1.....209 ......._...,.209 Bosch Co.
Co. of Germany.-. ....... .....246
of Germany
“Aufkla1‘ungs
“Aufklarungs Ausschuss” .....................162...................-162 Boussac,
Bwssac. Marcel
Marcel ...”...m. 123
Auschwnz
Auschwitz .................................-....,....115,
..................................-.........115, 126 Brady, Robert ..............................m..,...............128
................................................128
' 306
 INDEX
INDEX 307,
..................217
Bremen Daschimag no. 3 ._................2l7 Dillon, Reed 8181 Co. .....................m197, 205
Co. .......................197, 205
' Brest-Litovsk, Treaty of ......mmmmm,.55
......mmmmmmm55 .displa
displaced (DP’s) -------»---M
persons (DP’s)
ced persons ..n......u...m.12
12
................91
British Nobel interests ...........................91 Doenilz, Grand
Doenitz, ...u..........
Admiral ..............-...225
Grand Admiral u...225
“.6168, 86, 110
Bruening, Chancellor .....67-68, Domagk, Gerhard
Domagk, - . -..-...31
................"...m..-....n...
Gerhérd ..................-..~-- 31
...........................131
Brunner, Prof. _._,___________________.,..131 1)Donau-
0118.11 -Ch
Chemie ' ........
BIIIIB .,................... -.....-...117
..
Co. w...".........-....m....m....u.......1......78
3
.mm_~.m...m..75
Brunswick, Princess of ........._.._...-...,...75 Dornier C0, .........................................................
14
Buchenwald ....._..____.,_._,_.__,._,_,__,,_,,____,_,_,__,___,._14 Chgnica1wgfiz
Dow Chemical ......12..-.......,..1172-173
Co. ..........---.--»---172-173
-....1......1..1.............................110
Buetefisch, Dr. -....-.-_........................-......110 Draper, 1 mm
en. William
r, Gen.
......m..............................79
Bullerjahn, Walter .......................................79 Drape ' 197, 198,
197, 198, 205, 205, 222 222
huna rubber ......1..........__............88,
buna ...................._............88, 154-155 ..............
Dresdner Bank .......................................-.
Dresdner ....... .118
118
butadiene 88
........................................-.......-..............88 .............. .......
Duchemin ............................122-123
Duchemin ...” 122-1 28
butyl rubber ...............-....................................155
.................................................-...155 Duess
Duesseldorf Pact ..m....u. .......13
eldorf Pact ...........-~---134, 24"1'245 4, 244-2 40
Duisberg,
Duisberg, Dr. Dr. Car] Carl
C
C 23, 26-21,
23, 26-27, 34,34», 4-0, 4-0, 50. 50, 65, 65. 66,66. 73- 73,
(“tarnung”) 95-96,
camouflage (“tarnung") 9596,2712” 271-274 85-88, 89, 89, 101, 109-112
101, 109-112
.........-.........................;..133-135, 235-249
cartels ...........-..........................'..I33-135, Duisberg, Walter --.........m....................".101
Duisberg, Walter ..-.....................----------M 101
Cassella 8: & Co. ....._.._..............._....L.....................27
............1..........._.....'.....................27 .
Dulles, Allen ....................,...........................80-81
Dulles, Allen __,,_,_,,_,.,.,,........................80-81
D. 238
......................~....«...".......57, 66
Catholic center ...........................-...,.......57, Duperial Co. Co. _m...“...n....w.1..u1.u............."...238
...-...........i...--------------
i ...,.........un.................36
Chamberlain, Joseph .....,-.....--........-.....36 Pont de
Du Pont de Nemours
Nemours
1 Chamberlain, Neville 10,- so, 81,
10,80, s1, 83, 83. 92, 92. 149, 149- 165, 165- 181,181-
. 36, 113, 118, 134 183, 184-185, 189,
183, 184-185, 189, 238 238
...-.-...u........u......24-3
Chapellier Act of 1791 ....-......_........-......2/l-3 “Dustblin’f’
“D n” -‘,"“|',¢¢n40uIIINIIMIIl\llIIIIoIOIn~Q4lllI0NOOv<l"" .189
-.....".............-...............,.........m.... 32
Chaulny Chemical works ..........49 mmmmmmmmm49 Dutten
Duttenhofer ...“..1......m....,...........u....m.......3.:
)0 er ...-.....................------------»-»-------
Chemical Foundation ...........179, ..........179, 183 dyestufis _._..-...---...-.......................3, 9,
dyestuffs "....1...“W................,........“8, 9- 22-2?
2223
................................-101-104
Chemnyco, Inc. .................................._101-104- Dyhernfurth 111%in
Dyherniurth Works (IG) ----~-~---J25 GEE???) ......1......."12.1
...n......,.......1............192
Churchill, Winston ...-............._s............192 Dynamit-Nobel ((DAG-"Isl83, 91’ 184
Dynamlt-Nobe
91
Ciba ......................-....-......................-..................--....91 83, 91, 184
4 Clay, Gen.
Clay, Gen. Lucius Lucius ......197, .1.-197, 206, 206, 207, 207, 213 218 " E
E .

_......m.....-.........................,............,. 243
_., ,1...

Cleebronn Works (IG) (1G) -...........................11

.............................11 .24-3
mist .................................-.-----------~~---
Economist
'
coal .:................,........,_,,.._,__,,___,,,,___,,,,__,,_______,_,______,,,_9 0 gaffa ords,
Edwards, Corw
Corwin in mmmm mm 170,
.............170, 185,
185, 237
2;;
coal tar .................-..........;.-.......................-....22,
' 99, 23 Ehrl Paul ...........
ich, Paul .........................................--.
1.

Ehrlich, .........................-..-.--------------~-
cochineal
cochineal- solution ....................-..23 D1‘. J. .l- C. ..................12 0
.....nu- l-x-‘M rm.“

\'\ ........................23 Eich enauer, Dr.

Eichenaucr, C- ----------------"- 120
....... ..31
'1.
1-H Colt Co. ....-....._..,.,__,,,_,,,,,,,,_,,,,__,,__,,,,,,,,_,______,,,,,,B1 81 Eise nkrg, D5.
Eisenberg, ....1.fi.. ...._..ufi i......
Dr. .............................--31
Communist Party (Germany)
Communist (Germany) '
Eisenhower, en. Dwight
Gen. W]
. , .n“-
57-58, 60-62, 68-70 11, 192,g
5, 11,
Elsemower’ 5, 194. 197,
192, 194, 206
197, 206
Condor Airlines Airlines .........................................-151
.................-...................m151 Eman uel, Vict
Emanuel, ........ 129,
or ......".
Victor 186-1 88-
1......---------129» 135425"
Consoli
Consolidated ......_.._...m....-.-.-.1...187
dated Vultee ..............a....-.-.-.-...187 Erla ngen Univ
Erlangen ersity of
University of 2.1.1. 1122]. 276
......-.--~-21- 226
Contine
Continental .1.".........,..........91
ntal Dye Cartel ...........................91 Erzber cr, M. ...u...
E1-zbergcr, NI. .m.1... ...-,m. .n..... .,...."
.......................................................7
Creditan m.......u..1..._m.......,_.........116-117
stalt _,_,____,,_,__________,_,,___,___,_,,116.117
Creditanstalt espi onfge ........
espionage ....m... .....15, 96-1
........................l5i 95405’ 274"286 05, 274- 286
Crowley
Crowley,, Leo ...”........... u.1._....................i...".186
................-.a......-..............i.....186 -..”...mm...”200. 229
di-glycol --..------~--~200-
ethylene di-glycol
ethylene 229

D F
Daitz, Werner .....................................................53
................-....m........................53 Federal Bureau
Federal Bureau of
of
Daladier, E. ......................1......u..............m.....113
....................................................113 Investigation ......mm........................99-100
............-..-------»-----99'100
Dnrlan,
Darlan, Admiral .................m...................-...197
......................................-...197 Federation British
of British
Federation of
..............................147
Dawson, Sir Philip ......W..........147 Industries ...-......w.................,...........244-245
Industries ............................................244~-245
de Kruif, Paul ......mw..........m....................29
do ...............................................29 Federation' G
of German
dc Margerie
Margcrie ........-...........................-............163
........1........,......,.........................163 Feltififigltg; ._......-----»-»--6495’ 244-2465
Industry (5.,2332164-65, Mlfgg l
denazification ..............................133, 202-214 Fezandie &
Fezandie ..............................»._.
Sperrle ...........----------M
& Sperrle
Deutsch-Amerikanische Fischer, H. M.
Fischer, H. mmmmmmmmmmm163
ii. -..........----------13;;
Petroleum Co. .........................u...............145
..........................................14-5 ‘Flic
Flick, WWHW ....."123
Friedrich ............................................169
k, Friedrich
............................-......116-117
Deutsche Bank mmmmumllfi-IN 165
Flinsch -................._.......,..................--------- 165
Flinsch
Wm....... ......... ......... . .........
inense ........................-------------------' ..
Deutscher Verein ............_._...._..............101
.........................................101 Flum
Fluminense
WWMWWE," 118-
Edsel ..............-.----9»
Ford, Edsel 132
14.8, 182
4 -‘ WAN.

Detitsches ......WWW-............101-102
Deutsches Hans ..................--.............101-102 Ford, ...m.,9. 2&3
Deutschland (submarine) .............34
Deutschlancl mmmmmmmm34 Ford, Henry
Ford, -....-......1.........m.
Henry ...._,..................9, 252
....m............._.........._...............m._i.82
an<.~Cfie.. _
..............................107
Dickstein Committee ................................107 Ford Co.
Ford Co. ___"m_m__.______.______.,_,,_,,,.........-......--....-...

..............................n............204
Dies Committee ........................................204 Ford Co.
Ford of Germany
Co. of mmum-m
Germany. -.----»»»--M182

I
\
- 6 S \
 sos
308 A IG
IG FARBEN
FARBEN
Foreign Economic Gricb],
Griebl, Dr. Ignatz ................. ......99
............................................99
...............82, 198
Administration ................82, Griesheim-Elektron Works (IG)......32
Fourneau ......«m..................................,...30-32
._....................................................30-32 Gross, Prof. ......m.....................................125-126
_.._..........................................l25-126
Francolor S. A. .1.--.....................................123
....--....................................123 Gudenberg,
Gudenherg, Werner
Werner ....wm...m.................99
..........................................99
Frank-Fahle, Dr. Gunther .................230 ......W230 gypsum 9
Zeitung ......mmmnl30
Frankfurter Zeittmg .................................I30 H
Corp3 ....................................71-76
Free Corps .....................................................71-76 Haber, Fritz ...".mwmmm35,
..........,.............................35, 84-85
Freudenberg, Richard
Freudenberg, Richard .........130,
........130, 209-210
209-210
Haber process mmmmmmm49,
............................................49, 84
Frolich-Klupfel-Dehlmann ....................101
Frolich-Klupiel-Dehlmann ”......MMIOI Haefliger, Paul ......................................................51
Haefliger, Paul ..............................................51
“WWMIZZ-124
Frossard, Joseph _..............................122-124- Hague Convention mmmmmmé'tli
............................................33
' Frowein,
Frowein, Abraham .....................................213
WWWMIB Halbach,E.K.
Halbach, E. K. ..........166,167,
............166, 167, 187-188
“Fuehrer Briefe”
“Fuel1rer Briefs" (Letters to Hallgarten 81 .n...........,.......‘.........................82
8: Co. .....,.......‘.........................82
Leaders) ..........,....................................,...68-69
mmmmm................................68-69 mmmmmmfiB
Hansen, Lt. Col. ........................................_.........98
Funk , 67 Hari, Mata
Hari, Mata .._..............................................100
MM............ 100
' G Hashim, R.
Haslam, R. T.
T. ______....................156-157
...............156-157
Hasslachcr, Dr. ..................................................66
Hasslacher, .................................................66
I Garvan,
Galvan, Francis
Francis ...............................................179
.....n...m.......................179 wmmm~56, 75
Hauser, Heinrich ....................................56,
-....................................67, 97, 110
Gattineau .......................................67,
Haynes, Williams
Haynes, Williams .....................P..........................‘29
...................'...mmmmmm...29
MMMIZO, 21
Gay-Lussac, Joseph .........................20, .. mmmmmiil
Heidelberger, Dr. .............................................,31
Geigy
Geigy 91 Heinkel C0.
Heinkel Co. ’ 78
...... MM30-32
Gelmo, Paul ...._.._...._....-.._.._-.........30-32 Hercules Powder Co. cummm-«mmu
.................................-83
83
, Ccndorf
Gendorf Works (IG) ......200, 201, 217
....--m..128
Hermann Goering Werke .......................128
General Aniline 81 & Film Co. Herodotus
Herodotus ....-........................ 142
93-94,166,167,182,186-190
93-94, 166, 167, 182, 186-190 Heuser,
Heuser, Frederick
Frederick .........................................102
General Aniline Works .....................166
.......................166 mefitL 210
Himmler, H. ..........................................54-,
General Dyestuffs CorpCorp. /‘ Hindenburg, Paul von ....-.....52, mmmmm52, 58, 74
166,167,186-187
166, 167, 186-187 Hirschauer, Gen. “......WM
..........................................555
General Electric Corp. -......:.............175
..........................175 Hitler, Ado}ph
Adolph
General
General Motors
Motors Corp. ..............................240
Corp. ................................24-0 5,
5, 45,
45, 53,
53, 518-71,
58-71, 72,
72, 89, 89, 109, 109, 113, 113, 128 128
..........196, 2641-265
General order no. 2 ............196, 264-265 Hochswender, Karl ......mmmmm......101-102
..........................101-102
- General Staff (German) ...........................77
W37 Hoechst Works (IG) '
General
General Troops
Troops oflice
oflice ................................77
.................................77 24,
,24-, 25, 27, 34, 200, 200, 214
Geneva Arms Trade Hoerlein, Dr. Heinrich .............30-31
.....................30-31
Conference (1925) -.....mmmmmm......180
-._..mmmm..............180 Hofman,
Hofman, Dr.
Dr. F.
F. ......W.......................... ....87
..................................................87
German Democratic Party .........;.....66
..............;.....66 Hofmann, August von ”......21, ...........21, 22, 25
German Denazification Law - Hofmann, Johanna ...........................................99
mm.nnmw99
1946 m...
of March 5, 194-6 1.1....208
..........,....................I......208 Homann, Heinrich mem_163 ................--.-.--.-.----153
German-Luxembourg Hoover, Calvin B. ...............198,
............198, 199, 222
Mining &81 Smelting Co. .......................4-2
....................42 ................._........................80
Hoover, Herbert ................................................80
Partym57-58, 66, 68
German National Party.....57-58, ...........144-145, 149-150
Howard, Frank ...-.......I4-4--14-5,
People’a Party .....__..58,
German People’s ......58, 66, 68 mmmmmmm214
Hugenberg, Alfred ....r........._................,..214
German Standard of Hull, Cordell
Hull, Cordell .....................................................150
“mm...mmmmmmm......150
......198, 222
Living Board ............__..............198,
..._...............................,...................66
Hummel, Dr. ........................................................66
65, 71
German Trade Unions ..................65, .................................................181
Hutz, Ralph ......mmmmmmmmm..................181
Germany’s Master Plan ..................170-171
Germany’: mm170-171 coal“...-.86, 14-3-147
Hydrogenation of coal........86, 143-147
W2, 77
Gessler, Otto _.......................................52,
Gibbons, F. A. ....WIB7
I 1
A _............._...187
Glaser, Erich mmmn99
..................................99 1G
IG Chemie ”...“...94,
.m........94, 121, 182, 188-190
Goebbels, Joseph W62,
.....................62, 97, 220 Farhenindustrie
IG Farbenindustrie
Goerdeler, Dr. M...“
._....»-.........._.._._..131-133 131-133 ..................._.......8-10
general description .............................8-10
Goering, Hermann .. 70, 109, 210
..................70, definitign of terms ............................_27-28
definition W27-28
Goldmann Sachs & Co. ................................82
W32 organization........50-52
completion of organization.........50-52
Gould, Jay 42 Mw65-70
relations with NSDAP ................65-70
‘79
Graebe III____-ILilZa_.;_L;;.___.i___lll;:i2_L__;_,_;:;Ii;‘;ZII§.§II23 m,295-302
summary of production .........-295-302
Grasselli Chemical Co. ...............180, 180,181 181 Max
Ilgner, Ma!
Grasselli Dyestuffs Co. ”......“181, ..................181, 182 13,66,
13, 66, 97-98, 101, 105, 107, 114-, 114,
Greifelt, S. S. Gruppenfuehrer ......120 .........120 116, 163, 201, 202, 230, 274-286
 _ ____...-¢wn--_1- 7 ""

1
INDEX "
.309
Ilgner, Rudolph
Ilgner, Rudolph ....................:...101,
....................:...101, 103-104
103-104 Levadidi, Dr. ................
Levadidi, _____,31
Imperial Chemical
Imperial Chemical Industries
Industries Leverkusen Wo
Leverkusen Works (IG-Bayer) 31
rks (IG-Bayer)
industrial leaders
industrial leaders ......
91-92, 184,
10, 91-92,
”W.._.._....
184-, 238
...............14 ,. - 26,
26 27, 27 34, 34 50, 50, 214
14
14 Lgy, Dr. Ro
Ley, Robert
bert 1;--f---...:.........:_,,____..___62
__,_
industrial revolution
industrial revolution .......................18-20,
.. ......18-20, 22 . .... .._.
2 ...6 2
Lgelggrmfnn, Dr
kregermann. Dr.. M ..............,_,__,_________________________23
W
inflation (Germany) ................................45-48
...................._...........4-5-48 3e 1g, W M J ? )
Inquico
In uico __ - 3°eflg» ustus vo
Justus vonn -__-._.--..r....._..;z1,
......_........._........._....21 25
165 Ll mann Ro
Ltefmann» Robert --_..~.........2s7,
be t ..... 25
241
Military
Inter-allied Military Ligh
i-lghtt me ....... ’
Control Commission ..............._..................79
...................................79 ials
metals r
m..~...237,
19
ocamo C
oca Confference __ 21%
Inter national Hydro-Patents
International Hydro-Patents Co.......146 ..........._._..... .
International Trade
Co.......14-6 Loe Oskar ..........._ Wmlstl, 143 .2
hr, Dr. %lsl?a(i'n-.........._.ce............._.....154~
Loeh1r?(l)r.
International Trade Organization.249
Organimtion£49 Ludendorfi, Gen.
Ludendoril, Gen von. vo ' 156
iso-octane ._.........----.---.......---------_-.-.--157
iso-octane
. 1 57
isoprene _.__,___...........,...._...:............__....'...........B8
isoprene _ 34, 43,n 60,
34, 43, co, 64-,
64, 74,
74, 100
100
- 33 Ludwigshafen Wo
Ludwigshafen Workrkss (10
(IG))
J
I n 10, 24, 25, 50, 119
119,, 144
144-145, 201, 214
-145, 201, 214 .
Luene ergger
Lueneber er art illery ran
'
artillery range .................79ge ..................79
Jacobs, Dr. -..--.-r.-----------~-~----»------3'1
Jacobs, *1
JascoQ _____,____,,,,..,...,..........................14-8,
Jasc ...................................................148, 150, 184-
1067——
JCS 1067-— ' M
193, 194, 195, 197, 201, 202,
193, 202, 203, 203, MacGowen, Sir Henry ‘‘ ......24-3
......243
209, 251-263 magnesite
9
Junkers ..................-----.-...-_-»-14',
Junkers .........._....................._.....14«, 57, 75'77 75-77 _ magnesium ...... ...........;._..172-173_
‘ 172-173.
Junker
Junkers s Co. ._.....................................-..-.--------73 78 Magnesium Development Co. Co.
Justice
' ,.U.S.
J ustrce, - U.S. Dept. ............--.--...-.---1:1,
...._.....................11, 170 173,
173, 182, 182, 184 184 I
Maidanek
Maidanek .---..;;..__-------~ 115 '
115
K Markham, James -.......................__,,,,_,_.........186
Kaelble ”186
163 Marshall, A. E. ..._........__..._.__186
............_........._186
Kaiser, Henry
Kaiser, Henry .... ... .......................129
mmm129 ' Max, Prince of Baden ......
Kaiser Wilhelm
Kaiser Wilhelm Institute 75
Institute ._..---..-..-.....34
....... “.34: Maxim Co. (British) mlfl}
Kalle, Dr. ........................ ..................66
66 McConnel, Lt. ..............-...........
McConncl,
Kalle 8: Co. ........ .....................................27 ...............................................49'
97 McC onnell, Robert
McConnell, Robert E. .. 185
Kilgore Committee . McN amey, Gen. Jose
93, 168, 170, 185, 208
King, C. E. .........................._............._...........187
....
208
..........................187 M
M...., B.-1.. G... .._L.";,......._.2
McNarncy,
Meade, Brig. Gen. "WWOE'
Mei 'n K
Kam
“mos
Jos
- WW
eph ii ..._...................194

pf ............._____________..,_______,_140
Kirdorfi, Emil ............ ..........................................60,
em amp} W
............60, 64- 64- emel ====-i-'_£1=‘r1~'i;=::-:._._:::_..==>:_=_.=~=;,,,,,=_----~i¢;¢--1122
¥4emel » '
Klarer, Dr. _....................;...........................,..........31 Mar tens, Car
31 artens, arl mmmw ..,__.__,_______________,_,
m'lfi
Knieriem, A. von ..;....................._...............156
..:.........._...._...._..............156 esse rsch
Koln-Rottweil 91, 162, 184
Messerschmittmitt plant
plan t 4
4
'
\
1

91, 162, 184 Met z, Richard

Metz, Ric hard .. ........._..__________________168
Kondakofl
Kondakoil 88 Mey er, Victo
Meyer, Victorr --.-................__,,,,______________33
Krauch, Carl ...............
.............. .......108-109
”108-109 Miet zsch
Mietzsch, , Dr. ......................._... 31
!
Krupp Steel C0.
Krupp Co. ......78,
......78, 82-83,
82-83, 129, Mini ............31 '
129, 175 175 ster ial Collecting Center..212, 213
Ministerial Collgcting Center..21.2:-2.13
Krupp von Bohlen
Krupp Bohlen und Halbach Halbach Moe rker Vol
Moerker Volu unt eer Corps
nteer Corps .......................55
......................55
34, 48, 70 Mol denhauer, Prof
Moldenhauer, Prof.. W68 63 ,.
Kuepper, Dr. ............................._....................115
Kuepper, ............................._...................115 Moll
Moll,, Alf redo
Alfredo .........167,
.........167, 168,
168, 159 159 "
Kugler, Dr. ...
Kugler,
Kuhlmann, >etablissement......91,
Kuhlmann, 118
-M.-...-....118 Mond,
Mon Sir Alf
d, Sir Alma
red W ..._..___........._.____243
W“ i
’etablissltfmentmfl, 120-123 120-123 Mor genthau,
Morgentha H B ry
ll, Hen ry‘ m1 193
93 |;
I L Mue hlheim, Far
Muchlheim, hwerk (IG)
Farllllwerk ...............32
(IG) m.fiz "
Landsberg Prison ............................................60
anmm._m60
Lammers, Dr. ..........._............................_........66
Munich
Mun Pmt
ich Pac ....11s,
...... 113, 134,
134, 244-245
244-245
5 Murphy, Robert
Murphy, Robert
1
Lavoisier, Antoine ----.-..........-.-...............20 191,
197, 19s,
198, 203,
203, 205,
205, 210-211
210-211 '
6
lead tetraethyl .............. ...157
2157 mustar
mustardd gas .............. .............229
mun...
League of Nations
League 929
Nations Arms Arms Reports......80
Reports.._80
Leblanc, _..........--....-......................._,_,____,____......20
Leblanc, 90 N
Lee, Ivy .......................................106-107
......................................106-107 National Industrial ,
Lech,
Leeb, Gen. von .................................................113
.................................................113 Conference Board ' 8
72
Lefeb ure, Victor
Lefebure, Victor ........................................33,
........................................33, 37 37 Nazi Party (NSDAP)
Lehr, Dr. Drl
914
2fI2i22iI==l;;'I_Il~l:t:¥:=;5¥_'7T5:33735;35-:55-;::::::::214
14,
14, 41,
41, 53,
53, ss-71,
53-71, 76,
76, 105,
105, 203-204
203-204
Lenin,, V.
Lenin V. 1.
I. .........................-»..-»---58
............................................................58 Neisser
Neisser ==~—-----------------------167 157
Leun
Leuna a Work
Works‘ (1G) .......................-...-.-.---.-55
s‘ (IG) mmmmmmmmmmmm56 neoprene ............................................................143
neoprene 1‘8 '
. x ,

I .| 1 ,
“Amp...” .

a.(A.6..
 310
310 . IG FARBEN
“New Order Plan” (IG) Reichsverband der Deutschen
139, 141, 161, 166, 174, 287-295 (Reicllsgruppe Indus-
Industrie (Reichsgruppe
New
New Republic
Republic ...............................................116 trie)-—-see Federation of German
trie)-—see
11.11.11.....:.1100-101
Nicolai, Col. Walther .................-.-100-101 industry.
Niemoeller, Pastor 1-1.1.1....1. ..................226 .....226 76
Reichswehr .............-....._._._._......................-............76
nitrates, Chilean
nitrates, Chilean .....11...........11.1.. .128 Reithinger, Dr.
Reithinger, Dr. ~.........................98,
1.............1..1......98, 103-104 103-104
Nixon, Russell
Nixon, Russell A.
A. ..................203,
.. ....,203 204, 204, 208 208 Remington Arms
Remington Arms Co. Co. .................................174
.1......1.11.....1..........174
Norsk-Hydro .............
Norsk-Hydro 1.111....92-93 Rentenmark ............................................................4-8
Rentenmark 1111.11.11.11”........48
Nuremberg trials 67"77, 77, 104 Reparations program
Reparations program ........................215-224:
1....1...1.....1..1215-224
Nye Committee
Nye .1....11...1....................1......80-81
Committee .............,, ..............-.........80-81 Republic Steel........1.1..11.1.1...187
Republic Steel ..._..............................................187
—- .Illmunulnl

Rheinische-Westfaelische“
Rheinische-Westiaelische
0
O Sprengstoff Co.
Sprengstoil Co. .........1..............1..83,
.............................-..83, 174 174
oppanol ........_.........-...-........-...,...................-......157
oppanol 157 Rheinmetall-Borsig
Rheinmetall-Borsig ............52, ....52, 78-79,78-79, 101 101
........111..............1......19-20
organic chemistry ..........-................,......19-20 Rhenish-Westphalian
Rhenish-Westpbalian
Orth, Gebhard
Orth, Gebhard ........................................,.....201
1............................1.........1.....201 Electric
Electric Works
Works 11............42
Osram Co.
Osram Co. 240
.....240 Riddle of
Riddle of the
the Rhinem.1.11..........11.1..
Rhine .-...............-..........-....37 ...37
Ossietzky, Carl
Ossietzky, Carl von
von ........................-................80
111......1.1.1.11....1..........80 Riess,Curtm100
Riess, Curt
OVeIhofI, Julius ........................163-164,
Overhofl, Julius ......1................163-164, 169 169 Rockefeller, John
Rockefeller, John D. D. ...................106-107
1.11.1.1...-106 107
Roehm, Ernst
Roehm, Ernst ..............................................-......97
.1....111.........1... .1.1.1.11......1119.7
P
P R0611, Dr.
Roell, 929
Pabjanice 1211
Pabjanice ..............,...............................................l2 Roosevelt,Frank1in
Roosevelt, D. 11.............63,192
Franklin D. .................63, 192
Pan-German Assoc.
Pan-German Assoc. .1..........1....1.1..11.1.1..163
.....................-....._.,...._63 Roosevelt,Theodore.11.1..11.1111241
Roosevelt, Theodore ._.......1..............,....-,.241
patent system, German
patent system, German......1.....1...26,
..................26, 36 36 Rosenberg, Alfred.
Rosenberg, Alfred .....1..1...233
Patton, Gen.
Patton, Gen. George George11..1.....206O ":96, 116-
Rolhschilds .....1......... .....1...1.......
Rothschilds 116-117117
Pauley, Edwin
Pauley, Edwin ...............-...............................221
11.11.... ...... 12121 ‘ Richard Wilmer
Rowan, Richard Wilmer ....99
..........99
Perkin, William H. ........ ....1........1............122,
..................22, 23 Dutch She1111..111.......10,
Royal Dutch Shell 146 ‘
146
Peters, Carl
Peters, Carl .........-..................................................93 93 151-156
rubber ................ ........................................151-156
petroleum
petroleum ....1............................1...1...........142-146
......................................................142-146 Regulation Committee
Rubber Regulation Committee 1.1.1.153 .........153
Petroleum
Petroleum Times Times 111.111.11.11......11..11...156
..........................................156 Guenther 11.11....“ ...1.1......99
Rumrich, Guenther
Pferdmenges,
Pferdmenges, assemblyman assemblyman .............213 .............213 Rnpprecht Crown
,
Rnpprecht, Prince
Crown Prince ....174
Piekenbrok,
Piekcnbrok, C01. Col. 1.1....1......1..........1.1.1.1.11..98
1.1...........................,............98
Pillsbury,
Pillsbury, Col.Col. E. E. S. S. ......1..........1.1199,
......-................199, 200 200 S
Pliny 142
Pliny ...........................................................................142
....1......1.1......................125-126, 229
poison gas .......................................125-126, St. Clair
St. Clair du
du Rhone .......1................1...91, 123
Rhone .............................91, 123
.1111......1.......1..1.....11.1.1.11....88
polymerization ..............................................-.....88 salicyclic acid 1 11111111111137
..........-,................37
Potsdam Agreement Salkind, Isadore
Isadore 11...... ....-.., 1-1.1.1204
-............,....204
192, 195,
192, 195, 198, 198, 200, 200, 201, 201, 202, 202, 209, 209, salt .. 9
215-224, 265-270
215-224, 265-270 29-30
salvarsan ............._...,......... .......................29-30
1....1..1.............177
Potsdam Reich Archives ......_...................77 Sandoz 91
Preslone ..-.._.......,................................................229
Prestone 929 accounts ............1.....
“s” cash accounts
“3” ...........1..1.1163
............-................-.......163
........11.......1.1.......1......1....238
Preuss, Ernst G. .............................................238 Schacht, Hjalmar
IIjalmar
1.1.1.1....1...............1................20
Priestly, Joseph ................................-............20 45, 47-48, 63-64, 63-64, 70, 70, 110 110
.111..11.1..........1................168
Proclaimed List ............................................168 Schelling, F.
Schelling, F. von .....1.........1...1 nun"1'14.“
von ........................_.....................21
110. 8.................................-........207
Public Law no. 811.111.1....1.111.111.11207 Schleicher, Gen. von ......-.....................'7'7, 97
von 1.1...1...11......77 97
Pulverfabrik Skoda Schmidt,
Schmidt, Orvis
Orvis .1... .... ...213
um... Mu'n‘rulunnmun 116-117
Werke Wetzler .................................116-117 Schmitz,
Schmitz, Dietrich
Dietrich Aim....................
A. ....................10l,“"101, 165 165
Schmitz, Hermann
Q
Q 13,
13, 40-4,1
40-4-1, 66,
66, 83,
83, 94-95,
94-95, 97,101, 97,_101,
quinine .-......-.-..__._.........._.........................173-174
quinine .11....1.-..111.1.1111...11.................173-174 109,113,188-190
109, 113, 188-190
quinine monopoly
quinine monopoly 1.11139 Schneider-Creusot ..........................................123
Schneider-Creusot 1......1....1...1.11....1.1.1....123
Schnitzlcr, Georg von
Schnitzler,
R . 13, 66, 69-70,
13, 66, 69-70, 98,
98, 107, 107, 117, 117, 119- 119-
Raeder, Grand Admiral Eric ......_.,78
.11....178 124, 129,
124, 129, 140, I40, 148, 148, 230 230
Rathcnau, Walther
Rathenau, Walther ......38-41,..1138-41, 43, 43, 66,
66, 76 76 Schroder interests ...............,....................-...187
.....1.1....1.1.1187
Reichshank _._................._.................4-5,
Reichsbank 1.-.1.1.1....1.11........11.1.45, 48, 63 Seeckt, Gen. von ............
Secckt, .. ..77, 100
....................................77,
11.11-111.44, 55, 57-58, 61, 66
Reichstag ..................44, Selck, ,Prof.
Prof. Erwin 1.1.1.1.1..
-.........._ ............8
....-8
......111111...nvnu-lwol-II"1.11..1...1.70
Reichstag fire ......................-.-....-.......-.--..-.....70 111.........1..........1.1...........1.
Sherman Act ..................... .. 1237
.... ...-............237
I
 I

INDEX
INDEX 311l
31

Siemens-Rheinelbe-Schuchert
Siemens-Rheinelbe-Schuchert Temporary National
Temporary National
Union
Union ...... ................................._........_......»....43, 48
......................................_........_....._...4=3, 48 Economic Committee
Economic Committee .........................246
..........-..............246
Siemens-Schuchert
Siemens-Schuchert .-..-....-......... 43 -44
............-......................4-3-114 TC:
Ter Meer, Dr. Fritz ...............-.,-.125-126 ..............-.125-126
Simon,
Simon, Heinrich
Heinrich ......m........ ...................-..
..,....-............,..,... ....131 ' tctrazine
,...,.......131 tclrazine primed ammunition ............l74- ............174-
Simons,
Simons, C01............-...........-...-.-...m.....m........80
Col. ............................................................80 Threc-Pcnny
Three-Penny Opera ........ ......58
.................................-...58
Skoda
Skoda Works ................................................. ....81
Works ........................................................81 ............“...............60, 64-,
Thyssen, F. ............s._.............60, 64, 128-129
Sleeping
Sleeping sickness
sickness ............m........_..........-.30
......,........“......._.........__....3O
Tietz concern
Tietz concern .......-.............................................213
.......-.......u.-............”...m...-........213
Smith,
Smith, Adam
Adam ......m...........................................235
.....................................................235
Tilden, Sir William ,............................87
,...........................,87
Social
Social Democratic
Democratic Party Party (Germany) (Germany)
44, 52, 57-58, 60—62, 60-62, 68-70 Tilley, Maj
Maj. . Edmund ...........,.._..125-126
. ......m.-..125-126
Societe
Societe des
des Natieres
Natieres Colorantes Colorantes Time 187
...-..-.........187
de
do St.
St. Denis
Denis ......m..............................91,
......._.................................91, 123 123 toluol
toluol 157
............157
Society
Society for
for the the Protection
Protection of the Treasury Dept. (U.S.) ...._....-...-.11, 186
...._....s...,.11,
Interests of Chemical Industry Truman Committee...150,
Truman C0mmittee...150, 151, 151, 155, 155, 170 170
of Gennany
Germany ...............-...u................_........26
......_._.._..._...................._.,......26 Truman, Harry S. ..._.....-.._............r192, ...-.....-..-..... .1.92, 217
Solvay
Solvay Chemical
Chemical Co. Co. -........-.......................129
-........,...,...................129 tungsten carbide
tungsten carbide .............. ...... ......-.........175
...1............_.............._..........175
Spartacists ’ .......-.-._......-.............c.........-.,,.....,.75 75 Tyrian
Tyrian purple
purple ............................:.........................23
................. .. .......................23
Speer, Albert -.....m-...-.m..-......................-.135
-........,..._..................,.............._.135
Sprenger, Gauleiter
Sprenger, Gauleiter ............-..........,.............131
.....m.-..........-.............131 U
U
Stahlhelm ....-...,.....,..................................-............76 76
Stalin,
Stalin, J.
J. V.
V. ..,."......,............-...............................192 192
Uebele ..................._-...................,,....-.......,..........169 169
Standard Gas 81 Electric ..-.............186 .._.............186 V
Standard Oil
Standard Oil Co. Co. of of BrazilBrazil ...............151
................151 Veblen, Thorstein ..-....................... ...........239
..................,......................239
Standard Oil of New Jersey _. “verbindungsmaenner”
“verhindungsmaenncr”
10, 86,
86, 92, 92, 101, 107, 14-1-151, 14-1-151, (IG
(IG agents)
agents) ....................................105,
....................................105, 163 163
154-160, 169,
154-160, 169, 184-185, 184-185, 238 238
Vereinigte Aluminum Werke........... 172
Vereinigte Aluminum Werke...........172
Starnes, Col.
Starnes, Col. Joseph Joseph ..............._.-.._.........-204
...............-.-.._....,....-204 Vereinigte Stahlwcrke
Stahlwerke
State Department (U.S.) ..........,80, ......m80, 150
steel capacity
steel capacity .......................24-,
...-..m...-.......24~, 27, 27, 221-222
221-222
4-8, 52, 70, 82-83, 129-130, 197, 213
Steel Export Association ........................24-6 -..-.................24-6 “Vermiltlungsstelle
“Vermittlungsstelle W."
W.”
Steflens, Lincoln
Steilens, Lincoln ................-.........,.._107,
................-.........-..-107, 238 238 (army liaison office) -.............-107-109
-..............,107-109
Sterling Products Co.......106, Co....m106, 180, 181 Versailles Treaty
Stevenson Plan
Stevenson Plan .......__.....................................153
................--...-.....................153 55, 60, 64-, 64», 72-74;72-74,‘ 77, 176
Stinnes, Hugo
Stinnes, Hugo 33, 38, 42-4-3,
42-48, 50, 50, 52, 52, 96, 96, 110 110 Vickcrs
Vickers '
......,......,....1.........,..........,..............,............15 15
Steocker, Adolph
Steocker, Adolph ...,......,.........................,238
...-..m..-.........................-238 Vogler, Albert .........-......"-.....-...............-...70
.......,.-..,...,".....,...,..........-...70
Strategic Bombing Survey (U.S.)...136 von Humboldt ..........................................163
............................................163
’streptozon (prontosil) .................................31
streptozon (prontosil) .............................31 von Papen, F. .............................................97, 99
Stresemann, Gustav
Stresemann, Gustav ..........................................82
............... -.............._........82 ......-........m.-....-.-........-................99
Voss, Otto ......._.s......W._.......,......,..-.......,........99
Sturznegger, 1'1.
Sturznegger, H. & & C0. Co. ................................95
................................95 “VOWI” (IG)
“V01-VI” (I0) ...................................................103
.............................................103
styrene ..............................................................;............B8
styrene ' 88
Sudetenland ............................_..,...........117,
Sudetenland ..............................M..,.........117 118 118 W
.....m..............30-32
sulfanilamide ...,.......................................-30-32
uuumu- ...-- Waninger, Dr. Karl .-.....-........................78-79
.-.....-..,.....................78-79
Swiss Dye
Swiss Dye CartelCartel....................................91,
.................................91, 190 190 Warhurg, Paul ..............................148, 182
Warburg, Paul .................................148, 182
synthetic
synthetic nitrates
nitrates ...--....-...............35,
_.__....._...-..........35, 84-86 war War games
games .-.... .....-...........................109, 136 136
synthetic oil
synthetic oil 10, 10, 14-, 14, 85-86,
85-86, 142-14~7, 142-147, 247 247 Warmbold, Prof.
Wannbold, Prof. ........."................,...............67
m......."-...-........-...............67
rubbermmlo, 14, 34,-35,
synthetic rubl)er......10, 34-35, 86-88 Waybur, Bruce ..............-......-..,..-......-...,.204
Waybnr, ......m.--.-......-.....-......-...-.204
syphilis .........................................29-3U
syphilis 99-30 W’ebb—Pomeren Act
\Vebb-Pomeren Act .........._...........................237
......................................237
Weimar Republic
Weimar Republic ......4-1, ......41, 50, 50, 52, 52, 57, 57, 77 77
T Weinberg, Arthur von ..................86-87 .................86-87
Tabun ........................................................................125
Tahun 125 Welsh, Charles
Welsh, Charles .......................................170-171
.......................................170-171
Tarbell, Ida mm.........m..................................107
Tarbell, Ida ........._..............................................107 Whitney, Richard ...........-....................m-129
.............-......................,-129
“Tamung”——see
“Tarnung”—-see camouflage Wickel, Helmut ........................w.....................67
...............................................67
Taylor, Col. ............-............ m---.....-....81
..............-.-........._............--..-.-....81 ......................152
Wickham, Henry ........................................152
Teagle, Walter ........................14t4,
M-MW~144, 147, 182 Wiesbaden Conference ....-....................123
....,........._..........123
' JJ

_ I
 ,....___ _,---_- --_v- __~i-.»- _ _ -V.-»»~.>-»..-.-v"-'-"-""'-"“ _ ' H

312
3 I2 IG FARBEN
IG FARBEN '
Wilson, Woodrow
Wilson, Woodrow ........,...............,.._..-.........32
........"...............".....u.........32 Y
Winnica -_
Winnica ..................,119-120 Y
-m___,__,___192, 195, 202
.................119-120
Winterfcldt, Gen.
Winterfeldt, Gen. von 75 Yalta Agreement
Yaha Agreement '.................192, 195, 202
von ......................u.......75
Winthrop Chemical
Winthrop Chemical Cojmuwmlmm Ypres, Battle of
Ypms’ Battle of ..'.....................................u..._....33
M-m“'”m““"'m'“M33
Co.
31,
Woehler, Friedrich m“...
Woehler, Friedrich ...a......
174, 131,
181, ....,21182
182 Zz '.
Zeiss of Jena ...,..............._..............._............176
Zeiss of Jena ”www.mmmwmflfi
Wola ........................,_,,_...,_.,_,,,_,_,,,_,,__,__,119,
Wola » 119.
121 Zimmerli, W. F. .............................,..................186
121 Zimme rli, W.Bank
F. ........... ....................................186
Wurster, Dr. ........,._,=,;._.__,_______,,,,_,,,_,_,_,__,_113
Wurster, mmmmmlw Zivnestenka ......................................118
Zivnostenka Bank ........................................118

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