World's Greatest Industrialist?

Economic schoolboys love to argue over who is the world's most powerful industrialist. Last week the argument could almost be regarded as settled. The winner: beer-bellied, red-faced, medal-breasted Hermann Goering.

In 1937 the high-living Marshal had run out of pocket change. So his old steel friends in the Ruhr dropped a hint: for a license under the Four-Year Plan to develop Salzgitter's low-grade iron deposits, they would pay off his debts. But Planner Goering had a better plan: he decided to get into the steel business himself, boasted that he would make his company "the greatest industrial enterprise in the world." How good Goering has made his boast was told last week in Social Research by Dr. Kurt Lachmann, ex-London correspondent of the Frankfurter Zeitung, now in Manhattan.

Goering's rise is a study in speed. By decree (July 23, 1937) he took over low-grade iron deposits in Salzgitter. Two days later and with $2,000,000 (at 40-c- to a mark) of the Reichsbank's money he formed the Hermann Goering Works to compete with his steel friends in the Ruhr. With the help of famed U. S. Engineer Herman Alexander Brassert, he built a smelter, a rolling mill, a canal over ten miles long, houses for 150,000 workmen. Then, like a geyser, the Goering Works shot up into a vertical trust, overflowed in every direction: into coal fields in Upper Silesia, gravel pits, quarries, lignite mines east of the Elbe, lime deposits in Bavaria, refractory materials in Upper Palatinate. Aiming at power-in-general rather than any organic industrial shape, the Goering trust next spread into oil fields, commercia houses, shipping companies. In 1938 the capital jumped to $160,000,000. The next year Fritz Thyssen abdicated. Under a decree which permits the State to seize "communistic property," Industrialist Goering took over Thyssen's holdings in the Vereinigte Stahlwerke, the anything-but-communistic mills in Mullheim (largest in Germany).

Meanwhile, on foreign fronts Goering's trust followed the troops. From the Austrian National Bank he got control of Louis Rothschild's holdings: Austria's leading automobile and former armament company (Steyr-Daimler-Puch A. G.), .the Danube steamship company, a railroad car factory. After a struggle, the Thyssen group coughed up Alpine Montangesell-schaft A. G., No.1 Austrian steel company. In exchange, the Thyssen group got shares in a synthetic oil plant. In charge of his Austrian properties Goering put Guido Schmidt, who as Austrian Foreign Minister had made reservations for Kurt von Schuschnigg in the Hotel Metropole, his post-Anschluss prison. Other Goering acquisitions:

> In Czecho-Slovakia, one-half the lignite mines, the Vitkovice iron & steel works (once owned jointly by the Rothschilds and the Gutmanns of Vienna). >On the Board of Rumania's largest iron & steel works (Reshitza) Goering put his nephew, Albert Goering, took over the selling outlets of Skoda in Rumania.* > In Norway, the Dunderland iron-ore mines (subsidiary of an English company, capitalized at -L-700,000).

One thing Dr. Lachmann's report did not make clear: how much, if any, of the trust's profits go to the Marshal. Although he reputedly received 70% of the profits from the original Salzgitter "works, it is understood in Germany today that the Goering trust is 100% State-owned, that the Marshal runs it as an agent of the State, which pays him a salary (plus bonuses in art treasures--see cut, p. 79). At its inception, Nazi spokesmen used to say that the whole trust would one day be returned to private control. Today they say it won't.

Thus Goering cannot be called the world's richest man. But he is certainly Europe's, probably the world's, most potent industrialist. Last month the Hermann Goering Works was reorganized under three sub-holding companies: one for mines and ore refining, one for arms and machine production, one for shipping and inland waterways. But the full range of its products (among them: synthetic oil, guns, turbines, textiles, typewriters, tanks, ships) is a Nazi secret.

-The Goering trust now controls the whole of Skoda. This addition and others have upped the trust's capital account to over $800,000,000, the number of workers to over 600,000.

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