At a March 1949 meeting at the State Department with Ardelia Hall, Dr. Auerbach laid out his ambitious plan to compensate Holocaust survivors with the proceeds of a sale in the United States of 6000-8000 works of art still stored at the MCCP, including works set aside for Goering and Hitler. The sale of these paintings, in his estimate, could top 200 million dollars. The sales should take place incrementally so as not to “dump” the works on the art market. The Bavarian ministries of education and finance were on board with his plan. Jewish organizations active in Bavaria were on board with the project. He indicated that Bavaria was willing to set aside 20% of the proceeds of the sales to compensate residents outside their borders. The remainder would be assigned to residents inside Bavaria. Auerbach hinted that “private groups in the United States were anxious to invest in industrial projects in Bavaria”, a mini-Marshall Plan recycling the proceeds of unclaimed Jewish assets into the Bavarian economy. Ardelia Hall told Auerbach that his project required an official position emanating from Washington as well as the US military occupation government in Germany. Heinz Berggruen and Georges Wildenstein were some of the dealers interested in negotiating such arrangements.
On 23 May 1949, Auerbach visited the MCCP in his role as Bavarian minister in charge of a commission comprised of Jewish organizations, including one from the US. The purpose of the commission was to draw up a list of unclaimed art objects at the CCP of proven Jewish origin which are not likely to be claimed by formerly plundered nations.” 800 paintings had already been identified and transferred to the Wiesbaden CCP for further disposition. On 28 October 1949 Rose Valland received word from her deputy, Mr. Doubinsky, that Auerbach had requested a list of all unidentifiable works of art handed over to the Minister President of Bavaria during the summer of 1949. “He wanted to obtain approval to sell them for the benefit of the Jews.”
In January 1951, Auerbach became a member of the Central Council of Jews in Germany. After five years of hectic leadership, Auerbach’s unconventional methods and personal ambitions finally caught up with him. In March 1951, the Bavarian minister of Justice, Joseph Muller, former liaison between the Vatican and domestic resistance during the Nazi years, launched a formal inquest against Philipp Auerbach with the tacit support of the US High Commissioner, John J McCloy. One month later, Auerbach was accused of financial misconduct and forgery in regard to reparations payments. His supporters insisted that he never personally benefited from the alleged fraud, and that he gave all the money to the victims. Some billed the campaign against Auerbach as a “monstrous defamation” campaign. It is widely believed by present-day historians that antisemitism contributed to Auerbach’s demise. After his arrest, a trial ensued starting in April 1952 which lasted five months.
On August 14, 1952, Auerbach was found guilty of a host of crimes ranging from fraud and embezzlement, using false university credentials, “irregularities in office, bribe-taking in connection with funds allotted to Jewish victims, to passive corruption. A court of five judges, three of whom were ex-Nazis, sentenced Auerbach to two and a half years in prison. Although Auerbach accepted the verdict, he denounced the trial and compared it to what happens in the “Russian area.” His supporters filed an appeal in vain. John J. McCloy, the US High commissioner for Germany, rejected it outright. At 2 :30am on August 16, 1952, Auerbach swallowed a massive amount of sleeping pills and died at the age of 45. Four years later Dr. Philipp Auerbach was posthumously cleared of all charges.
Looking backwards, historians have argued that Philipp Auerbach’s trial and suicide had a chilling effect on public German Jewish life from the 1950s on. According to historian Dan Diner, many retreated into the private sphere.
to be continued...
