I. AS REWARD FOR HIS PARTICIPATION IN THE NAZI CONSPIRATORS' PROGRAM,. KRUPP REAPED LARGE PROFITS, WAS PERMITTED TO EXPAND HIS INDUSTRIAL EMPIRE, AND RECEIVED HIGH HONORS AND SPECIAL PRIVILEGES FROM THE NAZI GOVERNMENT.
(1) Although the Krupp companies operated at a substantial loss in the years immediately preceding Hitler's accession to power, the huge orders from the Nazi state enabled them to derive vast profits thereafter. In the fiscal year 1 October 1934 to 30 September 1935, the net profits of Fried. Krupp and subsidiaries, after the deduction of taxes, gifts and reserves recog-
nized by the tax authorities, amounted to 67,216,392 marks. In the fiscal year 1937 to 1938 these net profits rose to 97,071,632 marks, and in the fiscal year 1941 they amounted to 111,555,216 marks (Chart entitled "Income and Loss of the Fried. Krupp Combine"; Graph entitled "Profits or Losses of Fried. Krupp and Subsidiaries as Reported to Tax Authorities," not here reproduced.)
(2) Krupp was permitted, with the approval and at times connivance of Nazi officials, to extend in great measure his participation in other companies, both within and without Germany.
(a) On 1 October 1933 the participations of Fried. Krupp in other concerns had a book value of 75,962,000 marks. By 30 September 1942 the book value of the participations had grown to 132,944,000 marks. On 1 October 1942 the participation account was revalued and carried at a new figure of 187,924,621 marks. In the following year new acquisitions were made in he amount of 50,224,707 marks, so that the book value of the participations as of 1 October 1943 was 237,316,093 marks. Even this figure contains many going concerns in occupied countries which were arbitrarily assigned a book value of only 1 mark. Leaving out of account the revaluation of 1 October 1942, the participation account as of 1 October 1943 would have been 82,962,000 marks. The increment in the participation account is shown in a chart entitled, "Fried. Krupp Participations" (D-341). The expansion of the Krupp concern under the Nazi regime is likewise revealed by a comparison of charts showing the companies in the Krupp concern as of 30 September 1935 and
(b) Complete records of all acquisitions by Krupp have not been obtained because, according to Krupp officials, many records were lost or destroyed in air raids. Enough appears, however, to indicate that the Krupp firm did in fact call upon the Nazi authorities to facilitate or make possible the acquisition of property interests in occupied countries. Thus, when Mr. Erhard, the French custodian of Jewish property in France, resisted Krupp's attempts to acquire a lease of a plant at Liancourt, France, the Krupp concern enlisted the support of the Army to gain its objective. Under threat of replacement by a German official, the French custodian of Jewish property acceded to Krupp's demands. In a memorandum dated 29 July 1942, found in the Krupp files, it is stated:
"*** M. Erhard delayed the negotiations to such an extent that finally the appropriate military authorities in
Paris urged a settlement. This authority declared that if Mr. Erhard could not make up his mind to sell, at least he would have to give a three years' lease to Krupp.
"The custodianship would be taken away from Mr. Erhard and a German Commissar would be appointed unless the lease were granted in a very short time." (D-526).
(3) In recognition of his services to the Nazi State, Krupp was awarded the "Shield of the Eagle of the German Reich" with the inscription "To the German leader of Industry" (D- 66).
(4) Because of his unique service to the military power of the Nazi State, Krupp was authorized by special decree of Hitler to transform Fried. Krupp A.G. into a private family concern in order to perpetuate control of the firm by a single member of the Krupp family.
(a) In a letter dated 11 November 1942 to Bormann, Krupp stated:
"*** You have asked me to make proposals to you which would secure the future of the unified existence of the Krupp works more than this is feasible today. *** On considering -this question we have ascertained that under the present laws the principal solution of the question cannot be carried out. We had to find an entirely new way, therefore, which, just as the law regarding heritage of agricultural property, creates entirely new legislation." (D-99)
(b) In reply to the above letter, Bormann wrote to Krupp that:
"I have reported the contents of your letters of the 11/11 to the Fuehrer today. He instructed me to inform you that he would be readily prepared to arrange for any possible safeguarding for the continued existence of the works as a family enterprise; it would be the simplest to issue a 'Lex Krupp' to start with." (D- 101).
(c) Krupp's recognition of the unusual character of his proposal is indicated in his letter of 24 February 1943 to Lammers, wherein he said:
"Without doubt, the matter, which is without precedent in economic life, will have to be discussed with the Reichs Minister of Justice and the Reichs Minister of Finance also. *** " (D-106).
(d) On 12 November 1943 Hitler signed the decree making possible the preservation of the Krupp firm as a family enterprise in recognition of the fact that
"for 132 years the firm of Fried. Krupp, as a family enterprise has achieved outstanding and unique merits for the armed strength of the German people." (D-120)
In a letter dated 16 November 1943, Lammers wrote to Krupp:
"On 12 November the Fuehrer signed the decree regarding the family enterprise of the firm Fried. Krupp. *** May I express my heartiest congratulations to you, your wife and the firm Fried. Krupp on the great honor which has been conferred on the merits of the firm Fried. Krupp with this recognition by the Fuehrer." (D-124).
(e) As the final step in the proceeding, Hitler approved "the statute of the family enterprise Fried. Krupp" which gave effect to his decree of 12 November 1943 (D-131).
(f) In a letter of gratitude to Hitler dated 29 December 1943, Krupp stated:
"*** By this, you have made a wish come true, which my wife and I had had for years, and thus relieved our hearts of great worry over the future of the Krupp works."
"My wife and L as well as the whole family, are deeply -grateful to you for this proof of your confidence. ***"
"Our special thanks go to you, Mein Fuehrer, also for the great honor and recognition which you have awarded, in the introduction to your decree, to 130 years of the work of Krupps, the work of Krupps done by many generations of faithful followers, and steered and directed by 4 generations of the family Krupp." (D-135)
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