. NMT05-T0186-187
Volume VI · Page 186-187
| TRANSLATION OF DOCUMENT NI-7589 PROSECUTION EXHIBIT 769 |
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| EXTRACTS FROM THE REICH BUDGET FOR THE FISCAL YEAR 1932, CONCERNING
THE GELSENKIRCHENER TRANSACTION OF THE NIGHT OF 31 MAY TO 1 JUNE 1932 BY WHICH THE GERMAN GOVERNMENT PURCHASED GELSENKIRCHENER SHARES FORMERLY HELD BY FLICK'S CHARLOTTENHUETTE FIRM |
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| Extract copy: Reich Budget for
the Fiscal Year 1932.
Section XVII, pages 458 and 459; 529 and 530. |
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| Chapter | Title | Expenditures | Purpose | Amount Spent RM |
Total RM |
Total
of Expenditures (Colm. 6) compared with total debit more RM less |
Expenditures not provided in the budget, budget advances, and extra budgetary expenditures. | Notes |
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| 1 | 2 | 3 | 4 | 6 | 10 | 11 | 12 | 13 |
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| (E 20) | Acquisition of Gelsenkirchener Bergwerks A.G. shares | 37,968,295.91 | 37,968,295.91 | 37,968,295.91 | ---------- | 37,968,295.91 | cf.
reasons on page 529 |
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| Extract copy: Section XVII.-General Finance Administration, pages 529 and 530 | ||||||||
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| 1 | 2 | 4 | 5 | |||||
| (E 20) | 37,968,295.91 | Acquisition of shares of Gelsenkirchener Bergwerks A.G. The amount of
37,968,295.91 RM represents expenses resulting from the acquisition of
Gelsenkirchener Bergwerks A.G. shares at a face value of 110,000,000 RM. The
basis for this transaction was the contract between the firm of Hardy &
Company G.m.b.H. and Charlottenhuette A.G. of 31 May -1 June 1932* which was
drawn up in execution of a preliminary contract of March 1932. The firm of
Hardy and Company G.m.b.H. concluded the contract by order of and for account
of the Reich. Acquisition of the shares seemed necessary for the followings reasons: The financial situation of Charlottenhuette, which together with her daughter companies owned most of the Gclsenkirchener Bergwerks A.G. shares, which had been bought for account of the Reich, caused great anxiety early in 1932. Due to the close interrelation of Charlottenhuette with Gelsenkirchener Bergwerks A.G. and Vereinigte Stahlwerke, a serious threat to the bank obligations of those firms had to be expected in case one of these companies had incurred financial difficulties. A weakening of the Stahlverein Konzern could not fail to affect other mining industries. The effects of such developments upon the German banks, which had just been reorganized could not be gauged, but in view of the close relationship of banks and Reich, there would have been serious consequences for the German Treasury. Added to this was the concern that if the Reich did not intercede, the Stahlverein Konzern would be dominated by outsiders. To avert this danger was imperative for the national interest. According to the contract, the firm of Hardy and Company acquired Gelsenkirchener Bergwerks A.G. shares at a face value of 110,000,000. — for account of the Reich; of these they acquired shares at a face value of 100,000,000 RM for the amount of RM 90,000,000 and the remainder of shares at a face value of RM 10,000,000 in compensation for actual investments (maximum price 6 Million RM). The purchase price for the shares at a face value of 100,000,000. RM was made up by assuming liabilities evaluated then at 65,000,000 RM, 26.2 million RM of which represented liabilities (:f the Gelsenkirchener Bergwerks A.G. and an amount of RM 25,000,000 which was payable in cash. The amount of RM 25,000,000 as well as the purchase price for the share:; at the face value of RM 10,000,000 were paid in cash. In addition, liabilities in the amount of RM 2,000,000 were redeemed. For the amortization of the purchase price and the interests of the liabilities assumed in compensation with the purchase price, up to 31 March 1933 the Reich paid RM 37,968,295.91 for expenses; no provisions had been made for these funds in the Reich Budget for 1932. The amounts therefore had to be posted outside of the budget. |
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| * The Government of Reich Chancellor Bruening fell on 30 May 1932 and von Papen was appointed the new Reich Chancellor on 1 June 1932. Hitler did not become Reich Chancellor until 30 January 1953. However, the approval of this transaction by Goering and Hitler in 1932 is discussed in a letter of defendant Burkart, dated 17 September 1940 (See Document NI-5432, Pros. Ex. 28, reproduced in section V C). Testimony concerning the discussion of the transaction in Germany at the time is reproduced in sections IV H and V G (extracts from the testimony of defendant Flick) in section V F (testimony of defendant Steinbrinck). | |||
