Germany And The Jewish Problem Part 4

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Jews and Corruption

It is no exaggeration to say that public life in those days was governed by an epidemic of corruption. This was by no means confined to Germany. Europe and the United States of America were similarly affected. Jews played a leading part in corruption scandals everywhere. In France it was Hanau, Oustric and Stavisky; in the United States of America it was Insull and in Austria, Bosel, Berliner and Castiglioni were the outstanding figures.

Fundamentally it is not surprising that this plague of corruption became most widespread and acute in the period which followed the disastrous World War. On the other hand, however, it is typical of the Jew and his character that he should be the bearer and the principal beneficiary of this process of disintegration.

It is understandable that Germany, as the loser of the war, became infected to a particularly acute degree with the germ of corruption. During its most distressful period of trial and tribulation — the result of the Dictate of Versailles ­ Germany therefore became acquainted with Jewry as the exploiters and beneficiaries of its national misfortunes. No other country can point to a similar experience.

The list of Jewish profiteers in those years of national distress who veritably swamped the crumbling structure of German economic life and finally were responsible for its total collapse and ruin — ranges from the company promoter type and inflation profiteer to all the various types of soldiers of fortune and large-scale swindlers. In no other national economy has Jewish nature with its selfishness, its unscrupulousness and its urge for quick profits developed itself so unrestrictedly as in Germany throughout that particular tragic period.

Even the war companies, which during the Great War attended to the supplies of raw materials, were allowed to come more and more under Jewish influence. The largest concern of its kind, the Zentral Einkaufsgesellschaft — the Central Buying Company — for example, was controlled by a Jew. The important Kriegs Metall Company — the War Metals Company — was in charge of 14 governing men of whom 12 were Jews. A public scandal as the result of the business methods of this company was avoided for the simple reason that the political and military developments of the war confronted Germany with other and more pressing tasks.

Jewry’s great and triumphant hour of corruption came with the end of the Great War, the liquidation of the armaments. Factories and the sale of military stores and equipment offered splendid opportunities for handsome profits and the Jews were not backward in exploiting this state of affairs. The Jew, Richard Kahn, to mention an example, made a contract with the Deutsche Werke — the largest state-owned armaments plant — whereby the whole of its valuable stock was sold to him at scrap-metal price. Kahn was not the only Jew who profiteered enormously as the result of Germany’s downfall. Felix Pinner, a Jewish author, in his book entitled: Deutsche Wirtschaftsführer — German Leaders of Economy — (Berlin 1924) has characterized the innumerable Jewish profiteers as follows:

“Many of them . . . started business as army suppliers. In a number of cases it was difficult to say whether their chief motive was a desire to deal in military supplies or an excuse for shirking military duties. In many cases their big opportunity came when military stores and equipment were finally sold. Others again firmly established themselves financially with the advent of the currency inflation period.”

Business in deflated currency in the years 1919 to 1923 brought many outstanding triumphs to corruptive and speculative dealers. The Jews in particular were prominent in floating large companies as the result of shady transactions on the exchange. These concerns, which were none too securely established, paid out large dividends in the early stages before finally crashing. The most well-known names in this respect are the Jews Jakob Michael, Richard Kahn and the Eastern Jew Ciprut and his brother. These two brothers are referred to by Pinner, the Jewish author, in his book from which we have already quoted. He states: “The Ciprut brothers are of the breed that comes from the south-eastern plains of Roumania or Persia; soldiers of fortune attracted by the decomposing stench of German currency.”

All these cases however were not the deciding factors that turned the Jewish question in Germany into a most burning problem for the whole nation. No. They took place at a time when all phases of economic and political law and order were extremely lax. To a certain extent they even passed unnoticed in the general chaotic state of affairs during the first post-war years. But nothing was more calculated to open the eyes of the general public in Germany and fan the flame of anti-Semitism than the huge wave of Jewish corruption which had assumed such a criminal character that one public scandal followed another in rapid succession.

We refer in particular to the five Sklarz brothers, the three Barmat, the three Sklarek and the two Rotter brothers as well as the scandals associated with Michael Holzmann and Ludwig Katzenellenbogen. All these Jewish past-masters in corruption were, with the exception of Katzenellenbogen, Easterners i. e. Galician or Polish Jews who had migrated to Germany either during or after the Great War.

The first of the big corruption cases was the one in connexion with the five Sklarz brothers. With the help of influential connexions in the Social-Democrat party they succeeded, shortly after the war, in obtaining a monopoly for supplies to those troops that had been commissioned with the task of restoring domestic law and order. These contracts led to enormous profits within a short space of time. These brothers increased their wealth considerably by further shady manipulations and by discreet bribes to leading government officials. All this helped these unscrupulous Jewish black­ guards materially when they subsequently came up for trial. Very little light could be thrown on their shady conduct and after a well-nigh endless trial, only one of the five brothers was convicted in 1926.

These five brothers were ably assisted by a Russian Jew, Parvus-Helphand, one of the most unscrupulous blackguards and swindlers produced by the war. He utilized the millions he made out of war supplies in order to establish good relations with the Social-Democrats in power at that time. As a principal wire-puller he remained in the background of many corruption scandals. No one dared to institute proceedings against a man who had successfully bribed so many leading government officials.

The three Barmat brothers were artists in corruption on a more imposing scale. Their home was at Kiev and during the war they were engaged in business in Holland as food merchants. With the help of Heilmann, the Jewish politician, the five Sklarz brothers and Parvus-Helphand these three Barmat brothers ultimately received permission to settle in Germany. By means of ruthless exploitation of human weaknesses, small and large favours which culminated in direct bribes, these brothers were able finally to win the confidence of influential friends and members of the government. In this way they soon became the owners of ten banks and a great number of industrial concerns. With the help of fraudulent balance sheets they procured a loan of 38 million Marks, partly granted by the Prussian State bank and partly by the Reich Ministry of Posts and Telegraphs. When finally this inflated Barrnat concern crashed, its debts were estimated at 70 million gold Marks, and half of this sum had to be covered by the savings of small investors.

The subsequent court proceedings against these Barrnat brothers ended in very small terms of imprisonment. Herr Bauer, the Social-Democrat Reich Chancellor at that time, who had become involved in the proceedings was forced to resign.

After the crash, Julius Barmat went abroad again. In his new surroundings he applied with great success the methods which he had adopted in Germany. By bribing influential politicians he was able to obtain loans and finally defrauded the Belgian National Bank of 34 million gold francs. He evaded the law by committing suicide in 1937.

The three Jews, Iwan Baruch, Alexander Kutisker and Michael Holzmann were less successful in their efforts than their predecessors. Nevertheless they are worthy of mention. They turned their attention to the Prussian State Bank which Barmat had previously defrauded. They also succeeded in defrauding this institution to the extent of 14 million gold Marks.

By far the largest scandal however was brought about by the Sklarek brothers of whom there were three. The case is certainly unparalleled in the history of crime, politics, business and bribery. The principle sufferers were the city authorities in Berlin.

By a clever and crafty system of favours, presents and bribes of every description these three Jews had literally purchased goodwill in various civic quarters in Berlin — where Social-Democrats and Communists were chiefly in power. In this way they secured an absolute monopoly for the supply of clothing either to the police force, traffic department, social aid depots or public works department. All municipal officials were systematically bribed who might in any way prove useful to the Sklareks in obtaining and keeping their monopoly. Even the Oberbürgermeister, Berlin’s Lord Mayor, was bribed. In this way, therefore, it was possible to obtain payment from the Stadtbank — the Berlin Municipal Bank — for all faked invoices in respect of goods never supplied. The sums paid on this account ran into enormous figures. When the firm of Sklarek finally suspended payments, the municipal bank had been defrauded of 12,5 million Marks. An enquiry to ascertain the whereabouts of a further 10 million Marks brought no results.

The legal proceedings against these three Jews commenced in 1932 and lasted nine months. In accordance with public feeling the sentences were more severe than in previous cases. Two of the brothers (one had died in the meantime) were sentenced to long terms of imprisonment with hard labour.

Mention must still be made of the Jewish Director-General Katzenellenbogen. He was head of the Schultheiss-Patzenhofer concern, one of the largest industrial undertakings in Germany with a share capital of 75 million Marks and a pre­ferential capital of 15 million Marks. By means of disreputable speculation with a view to personal enrichment at the expense of the company, Katzenellenbogen brought this vast concern to the verge of bankruptcy. The shareholders were defrauded to the extent of thirty million Marks. Part of his dishonest profits Katzenellenbogen used for the purpose of financing Erwin Piscator, the Bolshevik theatrical director. Katzenellenbogen was finally convicted for fraud and for issuing false balance sheets and sentenced to imprisonment.

The final case in this long series of corruption scandals was the one dealing with the Rotter brothers. These two Jewish speculators had formed a combine embracing seven of the largest Berlin theatres. The work of exploiting these theatres was considerably facilitated by the flotation of several companies whose affairs were placed in the hands of an ignorant though willing person acting as a mere figure head. In one single year, 1932, these two adventurers were able to squeeze no less than 300,000 Marks clear profit out of these under­ takings after all expenses had been met. Their monthly salaries, which they themselves had fixed at 2,000 Marks each were not included in this figure. A further 400,000 Marks accrued to them as the result of a fraudulent contract respecting two cultural undertakings. While Christian actors in these theatres were badly underpaid, the Jewish “stars” on the other hand received fantastic salaries, as much as 1,000 to 2,500 Marks per evening being no rare occurrence. The Rotter brothers lived a life of splendid luxury and the day came in 1932 when their concern also finally crashed with debts amounting to 3.5 million Marks. The two brothers declined all responsibility for the crash and decamped to Liechtenstein for which country they had taken care to obtain papers of naturalization.

We have already stated that Austria also had its Jewish corruption scandals on a large scale. Apart from Castiglioni and Bosel mention must be made of Berliner, the large-scale Jewish swindler. As Director-General of the large Phönix Life Insurance Company, he utilized the funds of this company for political purposes. Berliner maintained excellent relations with all political parties in Austria and paid out a total of three million schillings in bribes in respect of elections and the occupation of certain important positions. He influenced the press in his time by payments amounting to 170 million schillings. The trade unions and the military Heimwehr organization were also supported by him from funds fraudulently appropriated from his company. In this way, the debts of the Phönix Company finally totalled the mammoth sum of 670 million schillings. 330,000 policy holders of the company, chiefly of the non-wealthy middle class type, were the principal sufferers and had to foot the bill by means of increased premiums and reduced benefits.

This list of Jewish corruption by no means lays claim to being complete. Attention has only been drawn to those cases which in Germany and elsewhere have focused particular public attention by reason of their magnitude. But the instances quoted suffice to deny the oft — repeated Jewish charge that Jews were in no way more involved in corruption than Christians. Here it can be said that during the period which has been referred to, only two great corruption scandals by Christians have taken place. These are the Raiffeisen Bank and the Lahusen cases. Jewish participation in corruption is therefore not only greater on a percentage basis — that is when compared with the Jewish population ratio ­but also totally dominant in every respect.

A decisive factor in judging Jewish corruption is that legal punishment of this crime was either invariably a long-winded affair or no charge was subsequently preferred against the criminals. When a conviction did take place punishment was invariably mild. The reason for this was to be found in the very friendly and mutually profitable relations existing between these Jews and various influential personages in the government and other public bodies. And here again, Jews were always to be found in highly-placed and important key positions.

This inter-connexion of interests has already been referred to above. Reference has already been made to Heilmann, the Jewish Social-Democrat Reichstag member who paved the way for the Barmats. The Jewish Secretary of State Abegg has also been mentioned as acting in a similar capacity. As further examples of Jewish corruption in the Prussian Civil Service, mention must be made of Dr. Weismann, Secretary of State and State Commissar for Public Law and Order in Prussia. Further, Dr. Weiss, Deputy Chief of Police in Berlin. Both were officially responsible for law and order; Dr. Weismann himself was classified as the senior official in Prussia, the largest of the federal states.

Dr. Weismann played a particularly shady part in the proceedings against the Sklarz brothers. It is characteristic of him that he attempted to bribe Herr Gutjahr, the leading state prosecutor, with a sum of three million Marks with a view to having the charge modified. Gutjahr refused to be bribed and subsequently Weismann was responsible for this trusted official being officially reprimanded.

Weismann and Dr. Weiss were both heavy gamblers in private life. The Jewish periodical Die Weltbühne even criticized Weismann in 1920 as “one of the most notorious gamblers in Berlin.” Dr. Weiss — the deputy chief of police ­ was frequently surprised in 1932 in various illicit gaming dens. Before the National-Socialists came into power the Court of Appeal in Berlin even confirmed that he had committed an offence against the law and that he “did not possess the moral qualities necessary for such a responsible position.”

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Published in: on May 4, 2017 at 8:13 pm  Leave a Comment  

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