 |
was relatively small in financial matters. How then did the firm
management in Essen safeguard its influence?
A. Mainly by two methods;
one, the concern plants could not expend sums exceeding 10,000 marks without
the permission of Essen. In such a case, they would have to make a credit
application.
Q. Did this limit beyond which authorization was needed,
this 10,000 mark limit, apply to all expenditures of the plants or were there
certain differences?
A. This limit applied only to investments; that
is, purchase of real estate, construction of buildings, purchase of machines,
or acquisition of participations, that is, all items which are shown in the
balance sheet under invested capital.
Q. What is the contrary of
invested capital?
A. Current funds, i.e., for the purchase of goods,
the settlement of obligations and so forth. Here the concern plants had a
completely free hand just as the Essen departments.
Q. When we consider
the size of the Krupp combine, the amount you mention, this limit of 10,000
marks beyond which authorization for investments was needed, seems to be
extraordinarily small.
A. This regulation concerning investments had
been issued after the inflation. In 1924, money in Germany was very tight, so
that even small expenditures had to be watched. The regulation was not revoked
later on.
Q. Did you have further safeguards of a financial nature?
A. Yes, the concern plants were not allowed to have cash or bank
accounts in excess of their needs for current business operations. All other
amounts had to be transferred to the Essen office and credited to the finance
office. They were also not authorized to take up bank credits, to incur debts.
When they needed money they had to request it of Essen. In compensation, we
gave them a rate of interest above the normal rate, whereas for credits they
had to pay a rate of interest smaller than that taken by the banks. The finance
department, in other words, was a sort of bank for the whole combine.
Q. On several occasions we here discussed the so-called credit
applications. I would like very much to hear from you in detail what was the
procedure regarding the approval of such credit applications and how these
applications were processed. To aid you in this, may I show you your affidavit
of 27 October 1947, which you gave to the prosecution? This is Document
NIK-12471, Prosecution Exhibit 514, on page 68 of the document
|
562 |
. 
