He was among the richest men in the world. He made his first fortune in heavy industry. He made his second as a media mogul. And in January 1933, in exchange for a political favor, Alfred Hugenberg provided the electoral capital that made possible Adolf Hitler’s appointment as chancellor. Before Hugenberg sealed his pact with Hitler, a close associate had warned Hugenberg that this was a deal he would come to regret: “One night you will find yourself running through the ministry gardens in your underwear trying to escape arrest.”
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In the ’20s and early ’30s, the Hitler “brand” was anathema to capitalists and corporate elites. His National Socialist German Worker’s Party was belligerently
nationalistisch but also unapologetically
sozialistisch—a true
Arbeiter Partei, or “working man’s party.” Its 25-point political platform explicitly targeted bankers and financiers, calling for “breaking the bondage of interest,” as well as industrialists who profited from wartime production. Profits were to be confiscated by the state without compensation, and corporate executives charged with treason. Platform Point 13 was explicit: “We demand the nationalization of all existing corporate entities.”
Through the 1920s, businessmen preferred to place their political bets with conservative, centrist, business-friendly politicians, such as those in the Center Party or the Bavarian People’s Party or the right-wing but decidedly pro-business German Nationalists. Out of necessity, then, the National Socialists had to derive most of their financing via membership fees, storm troopers standing on street corners begging for contributions, and admission charges to Hitler rallies. Among the exceptions to this were socialites—Viktoria von Dirksen, Helene Bechstein, Elsa Bruckmann—who were smitten with Hitler. But the most significant exception was Fritz Thyssen.
Thyssen, heir to one of Germany’s leading industrial fortunes, had been an early financier of the Nazi movement. He first met Hitler in the autumn of 1923 after attending a beer-hall rally. “It was then that I realised his oratorical gifts and his ability to lead the masses,” Thyssen recalled in his 1941 memoir,
I Paid Hitler. “What impressed me most, however, was the order that reigned in his meetings, the almost military discipline of his followers.” Thyssen provided the party, by his own estimate, approximately 1 million reichsmarks—more than $5 million today—and also helped finance the acquisition and refurbishment of a Munich palace as the Nazi Party headquarters. Most important, Thyssen arranged for Hitler to speak to his fellow industrialists in Düsseldorf on January 27, 1932.
“The speech made a deep impression on the assembled industrialists,” Thyssen said, “and in consequence of this a number of large contributions flowed from the resources of heavy industry into the treasuries of the National Socialist party.” This financing, estimated at a still-cautious 2 million marks annually, was channeled through a trusted intermediary: Alfred Hugenberg.
Hugenberg had served as a director of Krupp A.G., the large steelmaker and arms manufacturer, during the Great War, and had subsequently founded the Telegraph Union, a conglomerate of 1,400 associated newspapers intended to provide a conservative bulwark against the liberal, pro-democracy press. Hugenberg also bought controlling shares in the country’s largest movie studio, enabling him to have film and the press work together to advance his right-wing, antidemocratic agenda. A reporter for
Vossische Zeitung, a leading centrist daily newspaper, observed that Hugenberg was “the great disseminator of National Socialist ideas to an entire nation through newspapers, books, magazines and films.”
To this end, Hugenberg practiced what he called
Katastrophenpolitk, “the politics of catastrophe,” by which he sought to polarize public opinion and the political parties with incendiary news stories, some of them
Fabrikationen—entirely fabricated articles intended to cause confusion and outrage. According to one such story, the government was enslaving German teenagers and selling them to its allies in order to service its war debt. Hugenberg calculated that by hollowing out the political center, political consensus would become impossible and the democratic system would collapse. As a right-wing delegate to the Reichstag, Hugenberg proposed a “freedom law” that called for the liberation of the German people from the shackles of democracy and from the onerous provisions of the Versailles Treaty. The law called for the treaty signatories to be tried and hanged for treason, along with government officials involved with implementing the treaty provisions. The French ambassador in Berlin called Hugenberg “one of the most evil geniuses of Germany.”
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German corporations, large and small, helped retool the Weimar Republic as the Third Reich. Ferdinand Porsche designed the
Volkswagen, a “car for the people.”
Mercedes-Benz provided Hitler and his chief lieutenants with bulletproof sedans. Hugo Boss designed the black uniforms for the SS. Krupp supplied armaments.
Miele produced munitions. Allianz provided insurance for concentration camps. J.A. Topf & Sons manufactured crematoria ovens. A dismayed executive at Deutsche Bank, which was involved in the expropriation of Jewish businesses, sent a letter to the chairman of his supervisory board: “I fear we are embarking on an explicit, well- planned path toward the annihilation of all Jews in Germany.”
For the industrialists who helped finance and supply the Hitler government, an unexpected return on their investment was slave labor. By the early 1940s, the electronics giant Siemens AG was employing more than 80,000 slave laborers. (An official
Siemens history explains that although the head of the firm, Carl Friedrich von Siemens, was “a staunch advocate of democracy” who “detested the Nazi dictatorship,” he was also “responsible for ensuring the company’s well-being and continued existence.”)
By October 1942, I.G. Farben and its subsidiaries were using slave laborers in 23 locations. The life expectancy of inmates at an I.G. Farben facility at Auschwitz was less than four months;
more than 25,000 people lost their lives on the construction site alone. As corporate practices adapted to evolving political realities, the company aligned its wide technological and human resources with government priorities. Jews were purged from the corporate ranks. The I.G. Farben pharmaceutical division, Bayer, supported Nazi medical experiments. A postwar affidavit alleges that Bayer paid 170 reichsmarks for 150 female Auschwitz prisoners. “The transport of 150 women arrived in good condition,” the affidavit reads. “However, we were unable to obtain conclusive results because they died during the experiments,” and “we would kindly request that you send us another group of women to the same number and at the same price.” Although recent investigations have questioned the veracity of this particular affidavit, Bayer’s involvement in medical experimentation on Auschwitz inmates is undisputed.
The I.G. Farben company Degussa owned a chemical subsidiary that produced a cyanide-based pesticide known as Zyklon B, used primarily for fumigating ships, warehouses, and trains—and, after 1942, as a homicidal agent at Nazi extermination facilities. Company logs confirm the delivery of an estimated 56 tons of Zyklon B from 1942 to 1944; more than 23.8 tons were sent to Auschwitz, where it served as the primary instrument of death for the more than 1 million Jewish people murdered there.
In August 1947, 24 senior I.G. Farben managers were placed on trial for their role in Nazi aggression and atrocity. In his opening statement before the court, the prosecutor Telford Taylor said of these executives, “They were the magicians who made the fantasies of
Mein Kampf come true. They were the guardians of the military and state secrets.” The 15,638 pages of courtroom testimony, along with the 6,384 documents submitted as evidence—purchase orders, internal memos, board minutes—indicated that these Farben executives knew the exact number of airplane and truck tires, the running feet of tank tread, the amount of explosives, as well as the precise number of canisters of Zyklon B gas delivered to Auschwitz. The defense attorney for the chairman of I.G. Farben’s supervisory board argued that his client was “no robber, no plunderer, no slave dealer,” but rather just a 60-year-old senior executive doing what senior executives were paid to do—run the company with an eye to the bottom line. If he collaborated with the government, it was out of “a feeling of personal responsibility to the company.” Twenty-three I.G. Farben directors were eventually charged with war crimes and crimes against humanity; 13 of them were convicted and sentenced to prison.
At the International War Crimes Tribunal in Nuremberg in 1945, Gustav Krupp was indicted as a major war criminal alongside the likes of Göring and Hans Frank, but he was too ill to stand trial. Instead, his son was tried in 1947, in
The United States of America v. Alfried Krupp, et al. The indictment charged the younger Krupp, alongside 11 Krupp corporate directors, with crimes against humanity and war crimes, for participating in “the murder, extermination, enslavement, deportation, imprisonment, torture, and use for slave labor of civilians.” Alfried Krupp reportedly never expressed remorse, at one point telling a war-crimes trial observer, “We Krupps never cared much about political ideas. We only wanted a system that worked well and allowed us to work unhindered. Politics is not our business.”
Ss for Alfred Hugenberg? Unlike other early private-sector Hitler enablers such as Fritz Thyssen and Hjalmar Schacht—both of whom ended up in concentration camps after crossing Hitler—Hugenberg got off lightly. Hugenberg withdrew to his sprawling estate, Rohbraken, in the former feudal province of Lippe, where he lived as the local regent while his business empire was gradually whittled away.
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