Showing posts with label Philipp Auerbach. Show all posts
Showing posts with label Philipp Auerbach. Show all posts

26 October 2023

The monetization of recovered Jewish assets

by Marc Masurovsky

The idea is not new and evolved at the end of WWII, when Allied forces and local resistance and partisan units stumbled on mountains of looted Jewish property, consisting of household goods, decorative objects (including furniture and textiles), musical instruments, libraries, works of art (paintings, works on paper, sculpture, etc.), precious stones and jewelry, precious metals, and financial instruments.

These recoveries across Central and Western Europe created an urgent need to identify who the despoiled owners were, find out if they were alive, if family members and relatives could be identified and located to claim the property. This part of the story is well-known as it involves civilian and military efforts to oversee the collection, identification, and repatriation of this found property with a view to its restitution to rightful owners. These procedures were mostly carried out in zones of Europe not occupied or dominated by Soviet military and civilian authorities.

The burdensome aspect of the mission as outlined above soon proved to be too much for the agencies responsible for overseeing this massive task of identification, cataloguing and shipping of recovered Jewish property. In order to make this problem go away, why not sell it all off? The question was reasonable in light of the chaos and confusion reigning in recently-liberated European countries, the desire of survivors to get on with their lives, and the need for governments to rehabilitate their destroyed nations and stimulate the economy by whatever means possible.

If one were to sell off this property, who would administer the process? Who would receive the funds? In what capacity? The answer was fairly simple: if the property was known to have come from Jewish owners, whether or not they could be identified, then Jewish organizations would oversee the sale of these assets and redistribute the proceeds to those who needed the funds most—survivors and their families who were dispossessed of everything that they owned.

The monetization of looted Jewish property recovered by Allied forces started in earnest in mid-1946 after the Paris Reparations Conference where Jewish organizations and agencies would oversee the disposition of recovered Jewish property for the benefit of surviving Jewish communities and their members. It was one thing to sell household goods, clothes, linens, furniture, musical instruments with no apparent artistic value, books and jewelry. But what about works of art and artistic objects with market value that belonged to collectors, dealers and businesses steeped in the art world of the interwar years? Should they be treated as bulk items regardless of who owned them and what importance or value they held? For efficiency’s sake, it was cost-effective to presume the owners dead, which eliminated the onerous and time-consuming task of actually finding them so they could collect their recovered property.

Governments got in on the act, especially in Western Europe—the Netherlands, Belgium, and France—where public sales were held from the late 1940s to the mid-1950s during which more than 100,000 works of art and objects were sold off, a number of which were traceable to victims of Nazi persecution. Local government officials sometimes concocted elaborate schemes by which to divert thousands of works of art from Allied-run depots under the pretext that their owners had not been identified, label them as “heirless property” and sell them through a network of auction houses and businesses in Europe and the United States, the proceeds of which would benefit the organizations and individuals overseeing this effort as well as local public agencies and the victims’ heirs and relatives. The architect of one such a scheme, denounced by the US Department of State, was Dr. Philip Auerbach, a Bavarian official whose portfolio included reparations and restitution of looted Jewish property.

Since then, the physical restitution of individual art objects to their rightful owners has coexisted somewhat uncomfortably with the pressure exerted by Jewish groups to treat these objects as “wholesale items” to be disposed of expeditiously for the benefit of Holocaust survivors and their kin.

Over time, this duality in treatment of recovered Jewish property looted by the Nazis has shaped the cross-generational debate on restitution of looted art vs. reparations. The end result of this duality has been a general indifference across Jewish communities towards repeated efforts by individuals and entities to recover their looted cultural property once it was identified in a particular location. Since the 1950s, the absence of support and lack of empathy towards individual claimants seeking the return of their looted art has been nothing short of astounding.

One can only speculate that unsuccessful claims filed against current possessors of looted Jewish cultural property might have had more positive outcomes had Jewish groups and communities lent their active and vocal support to these claimants as part of a general movement to seek justice and closure for crimes committed against Jews during the Nazi era.





20 July 2023

The Auerbach Case: Part Four-Other views of Dr. Philipp Auerbach

by Marc Masurovsky

Benjamin Ferencz at the IMT, Nurnberg

Benjamin Ferencz, former prosecutor at the International Military Tribunal of Nürnberg:

“One flamboyant German official, Philip Auerbach, in charge of compensation claims in Bavaria, was quite a bizarre figure. It was rumored that he had been interned by the Nazis because he was tainted by Jewish blood. It was known that he paid little attention to formalities. I always considered him neurotic. On several occasions he sought me out for a donation from the JRSO for some strange scheme he concocted. I always refused. I recall a detailed plan he had for shipping Hitler’s stolen art works to the United States for exhibitions in museums that would pay well for the privilege. The money would then go back to the compensation fund. He had the name of the ship, the museums, and the amounts payable. I was not really surprised when, after I checked it out, I learned that it was all a figment of his imagination. When he and the head of a local Jewish community announced that they were establishing a Jewish Restitution Bank to receive deposits from concentration camp victims, I immediately cabled Jewish organizations throughout the world to beware. Exactly one year later, the police closed down the so-called bank; the finances of the Auerbach office were under investigation, and he committed suicide. It was a crazy time with crazy people doing crazy things.”

Le Monde, 19 August 1952, “Suicide of a former Bavarian commissioner on refugee matters provokes general consternation. »

Since Bavaria refused for a long time to elevate the Compensation and Restitution Office and its Director to a legally recognized status, Auerbach was not under any parliamentary oversight and did not benefit from a regular budget. He had to find another way to raise compensation funds using shortcuts and indirect pathways. “He reveled in using expedients, he had a predilection for shady and complex dealings, which allowed him to assert his authority and to engage in opaque and interwoven financial arrangements which would get him into a heap of trouble. No one contests these facts.”

Conclusion:

Was Dr. Philipp Auerbach a victim or a criminal? Did he concoct his outlandish scheme to sell off confiscated Jewish paintings acquired for Hitler and Goering for the purpose of enriching himself? Or was it more of a case of using whatever means necessary to ensure that Holocaust survivors would receive their due, regardless of the legality and reasonableness of his tactics. As Benjamin Ferencz said, “it was a crazy time with crazy people doing crazy things.”

One thing is certain: the Auerbach scandal exposed many of the fault lines that have since haunted the international debate over what to do with unclaimed Jewish cultural assets. Since Auerbach’s death in 1952, Jewish groups have never ceased to look at “unclaimed Jewish cultural assets” as fodder to be sold and monetized for the benefit of Holocaust victims’ heirs. It still remains that nothing is unclaimed unless you declare it to be so. And, if you do, under whose authority and on what grounds?

Sources for Part One-Part Four

Primary sources

National Archives, College Park, MD

Indemnisation des victimes du nazime, 14 mars 1949, RG 59, Lot 62D4, Box 26, NARA

Eric Gration, secrétaire du bureau du Haut Commissariat américain en Allemagne, à George Eric Rosden, 21 janvier 1950, Confidential, 007 Fine Arts, USACA, NARA; [Faison à Hanfstaengl, 11 juin 1951, RG 59 Lot 62D 4, Box 17, NARA

S. Lane Faison, Jr., HICOG, Prop. Div. OEA, Collecting Point Munich to Dr. Eberhard Hanfstaengl, general manager, Arcisstrasse 10, Munich, 11 June 1951, Ardelia Hall Collection, RG 59 Lot 62D4 Box 17, NARA.

Archives du Ministère des Affaires Etrangères et Européennes (AMAE), La Courneuve, France

Doubinsky to Colonel Bonet-Madry, head of the French restitution mission, Frankfurt, 25 May 1949, RA 237, AMAE 
Doubinsky to Valland, 28 October 1949, RV 237, AMAE
Rose Valland to Munsing, 10 november 1949, Berlin, RV 237, AMAE
Munsing to Valland, 13 February 1950, RV 237, AMAE

Other archives

Auerbach's rich correspondence and other personal material from the years 1946 to 1951, which are stored in Bavaria's Hauptstamtsarchiv, are now open to researchers. The Staatsarchiv in Munich holds the complete court records of the April 1952 trial.

Books, journals and newspaper articles

Brady, Kate
https://www.washingtonpost.com/history/2022/06/26/schloss-elmau-castle-g7-germany/

Brenner, Michael and Kronenberg, Kenneth
https://www.scribd.com/book/392107133/A-History-of-Jews-in-Germany-Since-1945-Politics-Culture-and-Society

Ferencz, Benjamin B.
https://benferencz.org/stories/1948-1956/implementing-compensation-agreements/

Klare, Hans Hermann
https://www.jmberlin.de/en/reading-auerbach

Ludi, Regula
https://www.cambridge.org/core/books/abs/reparations-for-nazi-victims-in-postwar-europe/germany/667D60BE8D2B06D1D50BC2B50D94D7CF biblio

Ludyga, Hannes
https://buchhandlung-buchner.buchkatalog.at/philipp-auerbach-1906-1952-9783830510963

Sabin, Stefana
https://faustkultur.de/literatur-buchkritik/opfer-und-taeter/


Other links
https://www.wikiwand.com/en/Subsequent_Nuremberg_trials
https://www.jta.org/archive/philip-auerbach-commits-suicide-act-due-to-verdict-of-german-court
https://nataliereardon.weebly.com/victims.html
https://www.lemonde.fr/archives/article/1952/08/19/le-suicide-de-l-ancien-commissaire-bavarois-aux-refugies-provoque-une-grande-emotion-en-allemagne_1999225_1819218.html
https://www.jewishvirtuallibrary.org/philipp-auerbach
https://timesmachine.nytimes.com/timesmachine/1952/08/17/110062774.html?pageNumber=1

The Auerbach Case: Part Three-The Auerbach plan

by Marc Masurovsky

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...

The Auerbach Case: Part One-Incongruous relationships

by Marc Masurovsky


Dr. Philipp Auerbach

[Editor's note: This is the first of a four-part series on Dr. Philipp Auerbach and his efforts to resolve the problem of unclaimed Jewish cultural assets using controversial methods which ultimately caused his demise. Some recent published monographs were not available for consultation. Therefore the views expressed herein are guided by available primary and secondary sources.]

As the Federal Republic of Germany (FRG) rose from the ashes of the Third Reich in 1949, there remained thousands of cultural objects including paintings, works on paper, furniture and decorative objects for which the US authorities which oversaw the Munich CCP could not establish an accurate point of origin. Since 1946, Jewish organizations had been designated as legitimate “successors” and were entitled to receive unclaimed objects from the Allied authorities and dispose of them as they saw fit in order to support the rehabilitation and relocation of Holocaust survivors stranded in refugee and displaced persons camps.

Munich was the nerve center of this activity as Jewish groups tangled with local authorities and Allied military and civilian officials to gain control of these unclaimed assets for the benefit of Jewish survivors.

Once word filtered out beyond Germany’s borders and reached the ears of American art dealers and collectors, the opportunity to gain access to these assets and sell them on the US market was too good to pass. American dealers became frequent visitors to Munich where they sought to strike some kind of arrangement by which they could gain access to these assets, convince the US authorities with the assistance of Jewish organizations and sell them on the US market, in New York mostly.

An unusual alliance took shape between Bavarian officials, representatives of Jewish successor and relief organizations and art dealers from the US, France and Germany, some with close ties to American museums. The goal of this alliance was to monetize unclaimed works of art as quickly as possible.

Dealers needed allies on the ground. Dr. Philipp Auerbach (1906-1952) proved to be the main ally of the art market, as the Bavarian official responsible for restitutions and compensation to Holocaust survivors. Auerbach was a survivor of Auschwitz and Buchenwald. He had lost most of his relatives in the Holocaust.

In 1946, Auerbach was appointed head of the Bavarian Office for reparations and restitution for persecuted people. In that capacity, Auerbach was responsible for overseeing this process on behalf of the Bavarian Finance Department. Hence, Auerbach found himself playing a central role in deciding the fate of unclaimed assets.

Auerbach, with a new sense of power, began to wield it. In one instance, he went to court to impose denazification proceedings against Johannes Müller, a philosopher and theologian with an ambiguous attitude towards Hitler, whom he had accused of glorifying Nazism. Müller owned a castle, Schloss Elmau, which had been used as a Nazi military vacation camp then as a military field hospital. In a show of petulance, Auerbach used his official position to take control of the castle without obtaining legal title to it. He then converted it into a sanatorium for Holocaust survivors and displaced people which operated from 1947 to 1951. Eventually, Auerbach lost control of the castle due to his brash and unorthodox business practices.

Auerbach’s cozy relationship with Jewish organizations involved in relief and rehabilitation in Munich laid the framework for a possible solution to the question of what to do with hundreds of millions of dollars of unclaimed cultural Jewish assets. Since Auerbach was the point man in the Bavarian administration for anything having to do with restitution matters, he wielded enormous influence on local administrative and judicial decisions affecting the status and disposition of these assets.
                                                                    
                                                                                                                                to be continued...