Organic Upbuilding

Having organized, reorganized, consolidated and reformed everything in sight. Nazi Germany last week turned to the delicate matter of Big Business. With typical Nazi eclat, newshawks were commanded to appear at the Ministry of

Economics where they found the Herr Reichsminister Kurt Schmitt in the correct costume for a Nazi economist : the black tunic and tight leather belt of Adolf Hitler's personal bodyguard. "The main purpose of this reconstruction." said Minister Schmitt, "is to coordinate business and the State. Private business will remain, but it will be put in the service of the people and the State. . . . Honest competition must be but it is to be controlled by strong leadership, focused magnetlike upon the supreme goal of commonweal and service to the nation." With the rhetoric went a plan. All industry was to be divided into a dozen groups: 1) mining and rough metals; 2) machinery and electrical goods; 3) iron and other metal products; 4) building materials, glass and pottery; 5) chemicals, oils and paper; 6) leather, textiles and clothing; 7) food; 8) handwork; 9) commerce; 10) banking; 11) insurance; 12) transportation. Each group will have a leader, not elected by the industry, but chosen by Nazi authorities. Appointed chief leader last week was one Philip Kessler, director of Bergmann Electric Co. and almost unknown even in Germany outside his own industry. The German Press took up much space drawing parallels between this new "Law for the Organic Upbuilding of German Economy" and the National Recovery Act in the U. S. Such a comparison was any thing but clear to U. S. observers. No codes have yet been drawn up under L. O. U. G. E. When they are, they will not come from the industry but will be handed to the industry by the Government. NRA has only the shadow of actual authority. L. O. U. G. E.'s authority is absolute and clearly stated. Any member of any of the twelve industrial groups who rebels against his Leader may be fined any amount and sentenced to a year in jail. The purpose of NRA, so far as it is stated in the law, is to revive private business. The purpose of L. 0. U. G. E. is to advance a new concept of society.

All Nazi Schmitt's reiteration of "coordination and working for the State" could not disguise the fact that German tycoons and not the government will run L. 0. U. G. E. The tycoons will be those who were shrewd enough to support the Nazi party with handsome subscriptions in the days of its infancy. A case in point was the appointment of Dr. Krupp von Bohlen as Leader of the first group. Even that cherished Nazi ideal, abolition of department and chain stores to protect small shopkeepers, was quietly shelved under L. 0. U. G. E. Only one fact gave Dr. Schmitt pause last week:

"We have today many old fighters with firm National Socialist convictions, and we have many capable economic leaders, but unfortunately only rarely are these qualities joined in the same person."

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