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   Nazi Conspiracy and Aggression, Volume Two, Chapter XIV

                                                  [Page 804]
                                                            
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-

                                                  [Page 805]

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
     
                                                  [Page 806]
                                                            
     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

                                                  [Page 807]
                                                            
     "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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