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Military government weekly information bulletin
Number 101 (July 1947)

Press and radio comments,   pp. 15-19 PDF (3.4 MB)

Page 17

and then physical force, IG as the co-
aggressor reaped the fruits of con-
quest. Depite the monopolistic posi-
tion it already held, IG proceeded to
annex an industrial empire such as
the world had never seen before. Far-
ben played an outstanding part in ex-
ploiting conquered countries for the
Nazi war maschine. In France, Nor-
way, Austria, Czechoslovakia, Poland,
Belgium, IG acquired plants, proper-
ties, and intangible assets which it
had coveted for years.
Now that Farben's dream of a "Neu-
ordnung", in which it would 'rule su-
preme over a world-wide chemical
empire has been given a staggering
set-back, the Allied Control Authority
has the job of making sure that Farben
can't be revitalized as a strong and
dangerous chain of affiliated units.
The problem of the US Control Office-
is a delicate and difficult one involv-
ing diplomacy, detective work, and a
keen financial insight.
At present every cartel has been
terminated, interlocking directorates
have been banned, centralized sales,
purchases, and management eliminated.
THERE never was a Farben stock-
holder's list: the IG capital struc-
ture as of 1945 consisted of 3,928,838
shares of common stock with a par
value of RM 1,360,000,000 and 40,000
shares of preferred stock at a par
value of RM 40,000,000. The common
stock were bearer shares. (In accord-
ance with  German custom    bearer
stock was deposited- in banks, the
banks collected the dividends, and
voted the stock by proxy). At the last
meeting of the stockholders in 1943
only 10 percent of the stock was
voted by shareholders who were pre-
sent, 90 percent by banks. Of the
40,000 preferred shares outstanding,
38,000 shares were registered in the
stock register of IG under the name
of Amoniakwerk Merseburg, a subsidi-
ary wholly owned by IG. The remain-
ing 2,000 shares in bearer form, were
in the possession of the Deutsche
Laenderbank, the Farben home bank.
As a result of such a financial set-
up great obscurity could cloak the
responsibility for the policies of any
Buna factory in Schkopau, branch of IG Farben. The unusual building still
is in
existence today. It was constructed without walls, doors, or windows.
In the establishment of the in-
dependent units, each such unit will
have a corporate entity of its own,
and where practicable, will be organiz-
ed as a joint company, with all the
stock being registered stock. At an
appropriate time this stock will be
placed in the hands of new owners.
No announcement has yet been made
as to the disposition of this stock or
how, in fact, it will be offered to its
ultimate owners. Nevertheless, one
definite objective will be accomplish-
ed: the ownership of these enter-
prises will be separate and distinct
from the ties of the former IG Farben-
industrie AG. Interlocking director-
ship and interlocking ownership will
be precluded. Centralized control by
the equivalent of the former IG Farben
organization will be impossible; centra-
lized selling and buying agencies will
be prohibited. Each such enterprise
must and will engage in free competi-
tion and free enterprise.
To accomplish all this, control must
be established and maintained. This
control can be kept up without great
difficulty during the period of occu-
pation. When the occupation is over,
there will be another problem -
whether or not an evil concentration
of power such as was IG Farben or
its equivalent will ever be permitted
to be reestablished in Germany.
14 JULY 1947

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