BRABAG

Brown coal gasoline AG
legal form	Corporation
founding	October 26, 1934
resolution	February 21, 2002
Seat	from 1934 Berlin from 1949 West Berlin from 1990 Cologne from 1998 Berlin
Branch	Energy supply , mineral oil company Carbochemie , Petrochemie

The brown coal-gasoline AG (short: Brabag , also BRABAG ) was a German stock corporation founded in 1934 as a “compulsory community of the German brown coal industry” with its seat in Berlin at Schinkelplatz 1-2. Using lignite , the company produced synthetic fuels and lubricating oils in hydrogenation plants at the Böhlen , Magdeburg , Schwarzheide and Zeitz locations until 1945 .

In July 1945, the facilities were confiscated by the Soviet military administration in Germany and later converted into state- owned companies of the GDR . After the Central German plants were withdrawn, the company relocated its headquarters to West Berlin in 1949 and was able to save its trizonal assets. At the same time, the federal government took over more than a third of the shares .

Operationally, the business was limited in the following period to the administration of the remaining property as well as to company investments . Most of the remaining capital was used to repay corporate bonds that the company had issued in 1938 and 1940 with a total value of 120 million Reichsmarks . For expropriated East assets received creditors , among which were many small savers , from 1963 debtor warrants .

After 1983, the company actually only existed as a corporate shell . The administrative headquarters were moved to Cologne in 1990 and back to Berlin in 1998. In 2002 the public limited company was officially dissolved .

Starting position

In the course of the German striving for self-sufficiency , which had its political origins in the Weimar Republic , in June 1926 IG Farben began its first attempts at the industrial production of synthetic gasoline in the Leunawerke south of Halle (Saale) . In 1927 the experiments were interrupted due to technological problems. IG Farben continued the project with state support from 1932. Against the background of the foreign exchange restrictions issued in 1932, the Brüning government in particular subsidized the so-called Leuna gasoline in order to relieve Germany's foreign trade balance .

The possibilities of converting fossil fuels into liquid fuels and lubricants were promoted by other countries, in particular Great Britain and the USA, in a comparable manner. The decisive factor was a thesis published by US scientists in 1925 and taken seriously worldwide, according to which global oil supplies would be exhausted in seven years, while motorization would increase inexorably.

Ultimately, the forecasts about the global depletion of natural oil reserves turned out to be wrong. From the early 1930s, huge oil fields were discovered in the United States, the Middle East, British colonies, and Mandate Areas. This made the huge efforts to obtain gasoline from coal basically unnecessary. However, the presidential cabinets of the Weimar Republic continued to fund and research coal hydrogenation, as Germany did not receive unrestricted access to the springs from the victorious powers of World War I and had become largely dependent on British and US oil imports since 1918.

Although during the Great Depression , the demand for oil decreased and the price of oil fell to its all time low, many States continue subsidized the construction of Hydrierwerken. The largest hard coal hydrogenation plant in the world at the time went into operation in Billingham in north-east England in 1935 . The planning for the plant began in 1931 and, according to official British information, was oriented towards a future war in order to be able to fall back on indigenous oil resources in the event of a sea blockade. The technical know-how was provided by IG Farben, which at that time was making so-called engineer agreements in several countries .

After Adolf Hitler's appointment as Reich Chancellor, autarky became a declared part of National Socialist economic policy. In December 1933, the Reich Ministry of Economics concluded the Feder-Bosch Agreement with IG Farben , in which the latter undertook to increase its production in Leuna to 350,000 tons of gasoline per year, while the state guaranteed a minimum sale price for gasoline obtained from lignite through hydrogenation . This measure was intended to save foreign currency for mineral oil imports, but also to create jobs. The contract did not have a military-strategic component, since the guaranteed annual production was only an insignificant fraction of the regular annual consumption of the German Reich.

From mid-1934, the world market prices for mineral oil rose to such an extent that the synthetic fuel industry suddenly became competitive. The cause of the rapid rise in the price of crude oil was the private sector, but above all the increasing global military level of motorization. Among other things, the APOC , whose majority owner was the British state, despite the League of Nations embargo, took over the fuel supply for Mussolini's Abyssinian War . At that time, Germany, with an annual consumption of 3.7 million tons of mineral oil, depended 65 to 70 percent on oil imports, 75 percent of which came from British and US companies. A year later, 50 percent of the oil imports for the German Reich failed. That was the oil shock.

From a German point of view, this development clearly spoke in favor of the construction or expansion of hydrogenation plants. In 1934, for example, the price of aviation fuel was more than twice as high as that of heating or diesel oil. In the course of the Spanish civil war (1936–1939), oil prices exploded worldwide. The Soviet Union supplied fuel to the Republicans, and British and US oil companies ensured the supply of fuel for the National Spaniards throughout the course of the war . The governments in London and Washington also granted the latter extensive loans to purchase gasoline, which also contradicted the neutrality resolutions of both countries.

founding

Ordinance on the establishment of compulsory economic communities in the lignite industry, RGBl. (1934, No. 110, p. 863)

Until 1945, the headquarters of Brabag was in the former Danat Bank building on Schinkelplatz in Berlin

Against the background of the foreign exchange savings, the foundation of the brown coal-gasoline AG took place on October 26, 1934 with seat in Berlin, Schinkelplatz 1–2. The purpose of the company was "the production of fuels and lubricating oils using German brown coal ". The founding capital was 100 million Reichsmarks (RM), which, adjusted for inflation, corresponds to purchasing power of 684,032,000 euros in 2019. The amount was raised proportionally to 10 percent each by the participating operating companies. These were the ten largest German mining companies at the time, each with an annual production of more than 400,000 tons of raw lignite:

• IG colors
• Deutsche Erdöl AG (DEA)
• Elektrowerke AG (EWAG)
• Rheinische AG for lignite mining and briquette production (RAG)
• Anhalt coal works (nuclear power plant)
• Werschen-Weißenfelser Braunkohlen AG (WW)
• Brown coal and briquette industry AG (Bubiag)
• Ilse Bergbau AG (since 1938 VIAG )
• AG Sächsische Werke (ASW)
• Mitteldeutsche Stahlwerke (Mittelstahl)

The merger took place on the basis of the "Ordinance on the establishment of compulsory communities in the lignite industry" of September 28, 1934. In principle, the establishment of "compulsory communities" was not a novelty, but merely a different name for already existing possibilities for legally required mergers of mining companies. Almost all the governments of the Weimar Republic considered nationalizing or “socializing” the coal industry. As early as 1919, the Coal Industry Act came into force, which obliged companies to join so-called coal syndicates . The companies remained privately owned, but the syndicates were under the supervision of the state. In other words, since the beginning of the 1920s, the Reich Ministry of Economics, represented by the Reich Coal Council, has set prices, discounts, delivery conditions, regional distribution of sales markets, wages and other things in all branches of the coal industry. At the same time, this law enshrined the possibility of compulsory pooling of mining companies for certain sales and production organizations.

Building on the structures created in the Weimar Republic, the lignite-gasoline company represented a hybrid of state and private capitalism. The Reich Ministry of Economics had refrained from founding a fully state-owned company for various reasons. On the one hand, there was a lack of public funds for this , on the other hand, in a state company, the capital expenditure would have been in no reasonable relation to the benefit, the saving of foreign currency. With the establishment of Braunkohle-Petrol AG, the state avoided the financial risk, but had the same influence as with a state-owned company and achieved the same foreign exchange savings.

The Brabag was subordinate to the Reich Ministry of Economics, represented by a Reich Commissioner. This position was taken over by the Reichsbank director Dr. Robert Deumer . The shareholders remained the beneficial owners of the company. Accordingly, the representatives of the lignite companies involved dominated the Supervisory Board . State official Wilhelm Keppler was appointed chairman of the supervisory board . The board of directors consisted of renowned economic experts such as Dr. Carl Krauch and Dr. Heinrich Koppenberg , as well as state officials such as Alfred von Vollard-Bockelberg and Fritz Kranefuß . From 1938 the chemist Heinrich Bütefisch and the physicist Ernst Hochschwender managed Brabag in all production-related matters.

Founding controversies

Topping-out ceremony for the Brabag Böhlen plant on October 26, 1935

Topping-out ceremony for the Zeitz hydrogenation plant on October 21, 1938

Construction of a hydrogenation chamber at the Zeitz plant, 1939

Brabag Zeitz around 1940

BASF Schwarzheide (2013); With the exception of Zeitz, all Brabag plants got their own motorway connections

The thesis put forward by individual representatives of the operating companies in the post-war period and supported by historians such as Wolfgang Birkenfeld that the founding of the Braunkohle-Petrol AG took place under state coercion is viewed in a differentiated manner in recent research. In fact, the merger was preceded by a top meeting of the board members of the participating lignite companies on September 21, 1934 with the Reich Minister of Economics, Hjalmar Schacht , which ended with no results. Obviously, almost all those involved were open to the joint project in principle, but no agreement on the technical process could be reached at this conference.

According to the intention of the Reich Ministry of Economics, the synthetic gasoline was to be produced in one or more of the company's hydrogenation plants using the Bergius-Pier process developed by IG Farben . This not yet fully developed technology was widely rejected by the lignite industry, especially since IG Farben was demanding high license fees . Around a month later, however, a compromise was found: In addition to the Bergius-Pier process, Brabag should now also use the Fischer-Tropsch synthesis favored by various companies . At the same time, the amount of the deposits, the contribution of the sole proprietorships, legal issues, and above all the production location were fought hard. Ultimately, on November 8, 1934, the decision was made to build smaller plants at various locations instead of a large plant.

A decisive aspect for most of the companies involved in Brabag resulted from the fact that the synthetic fuels were to be hydrogenated from lignite. This was connected with an increase in the production quantities in the pits of the companies, which consequently could only lead to higher profits, especially since the state guaranteed the purchase quantities at fixed prices. According to the IG Farben hydrogenation process, 3600 kg of lignite were required for 1000 kg of petrol at that time. In this respect, with an output of 200,000 t / a (tons of fuel per year), around 720,000 tons of raw coal were required per plant. In addition, there were thousands of tons of coal for the power plants to generate electricity and heat. In fact, in 1943 alone, the plant in Schwarzheide purchased 1.3 million tons of lignite, which Ilse Bergbau AG largely supplied for this location. Using the Fischer-Tropsch synthesis, 600 kg of coal could be produced from 1000 kg of coal, and later 950 kg of petrol. The disadvantage was that at that time it was technically not possible to use the Fischer-Tropsch synthesis to produce high-octane aviation fuels. The focus here was on diesel fuels, lubricating oil and paraffins .

For RAG , which was closely associated with Ruhrchemie , the “Ordinance on the Establishment of Compulsory Communities in the Lignite Industry” represented a guarantee contract for the Fischer-Tropsch synthesis and thus anything but a compulsory agreement. Only through the establishment of Brabag won also this method of market economy importance. As a result, the CEO of RAG, Gustav Brecht , was a supporter of Brabag, who created the distribution key for the shares and emphasized at a Supervisory Board meeting: "It must not be overlooked that pioneering work is being done here".

The ASW also actively participated in the fuel visions and plans of the Reich Ministry of Economics. The Aktiengesellschaft Sächsische Werke had extensive experience in “merging” mining companies. It is also a further example that the Brabag merger was not a "National Socialist novelty". The ASW was launched on November 13, 1923 by the then SPD state government . The Free State of Saxony was the sole shareholder . After its establishment, the ASW displaced coal unions and smaller mining companies from Saxon mining areas. Independently of the Brabag, the ASW developed in the course of the 1930s into one of the largest and most important stock corporations for preparing for war under National Socialism. The shares were intermittently traded on New York's Wall Street .

Widespread statements such as "the industrial representatives of the lignite companies flatly refused to volunteer for the project at the meeting with Hjalmar Schacht" for the empire's own EWAG are even less accurate . After RWE , EWAG was the largest electricity company in Germany and has been 100 percent owned by the state since 1917. All of the board members were civil servants. Accordingly, the board of Elektrowerke AG, largely represented by Aloys Reinauer and Dr. Georg Rotzoll, the National Socialist autarky policy unconditionally. Among other things, EWAG built the world's largest lignite power plant in Vockerode from 1935 . Shortly after the "Ordinance on the establishment of compulsory communities in the lignite industry", the board of directors boasted in an annual report that all the tar and most of the coke produced from a boiling plant in Offleben belonging to EWAG had been sold to Brabag for a period of 10 years to have.

The Bubiag was very eager, and submitted a written proposal on the location issue eleven days before Brabag was founded. It said: “The forested area in the municipality of Naundorf ( Calau district ) on the Ruhland-Lauchhammer railway, namely at the confluence of this railway with the Ruhland-Senftenberg railway line , is proposed, which is part of the so-called Pößnitz washout . “The Braunkohlen- und Briquett-Industrie AG managed not only to sell the site to Brabag. It received a general license agreement for the Bubiag-Didier generators developed jointly with Didier-Werke , which then supplied 70 percent of all Fischer-Tropsch systems with the synthetically produced ammonia required for this process . The largest Bubiag-Didier systems went into operation in the Brabag factory in Schwarzheide.

As a representative of Mittelstahl , Friedrich Flick declared in 1947 during the 5th Nuremberg follow-up process that his company had involuntarily become a member of the “compulsory brown coal industry”. In contrast, it was proven that Brabag posed neither a financial nor a competition problem for Flick. Rather, he recommended himself as an expert for the "implementation of large industrial projects" and became the largest shareholder in Braunkohle-Petrol AG after the takeover of the AKW and WW .

In the same way, in 1947 the defendants in the IG Farben trial cemented that their company had not voluntarily joined Brabag. The judges paid little heed to this claim and pointed out the preference for the IG Farben hydrogenation process along with the considerable profits for the license fees. American historians still assume that Brabag was an amalgamation of IG Farben with nine other operating companies, and that it was not the state but IG Farben who initiated the founding of lignite-gasoline AG. Against this background, the Brabag plants in Böhlen and Zeitz were often referred to as "Leuna branches". What is certain is that IG Farben paid 90 million RM to the Reich Ministry of Economics when the Feder-Bosch Agreement expired. This amount was simply the excess that exceeded the five percent return agreed in the purchase agreement. After 1938 the company no longer received any direct subsidies for the production of Leuna petrol. This had become unnecessary. In 1939, IG Farben had sales of 821 million RM, four years later 1.7 billion.

The DEA occupied a special position. At first she wanted to evade participation in Brabag. The establishment of joint hydrogenation works ran counter to the company's strategy, which was primarily geared towards the state's highly subsidized Reich drilling program and the expansion of its own smelting facility in the DEA lignite tar plant in Rositz . The DEA Board of Directors expressed its reservations in a memorandum . The competition reacted unanimously with the remark that "all the big lignite producers have to take part in the project". In view of the profit guarantees and the high subsidies that the company received from the Reich drilling program, the DEA finally joined the association - and voluntarily remained a shareholder in Lignite-Gasoline AG after the war.

As post-war research shows, coal companies could very well evade the “community of duty”. Among other things, all of Thyssen AG's lignite companies refused to participate in lignite-gasoline AG and the Reich Ministry of Economics accepted this stance. Otherwise, no one involved wanted to be prevented from exerting influence on Brabag and the expansion of the German mineral oil industry. In 1941, for example, the Reich Ministry of Economics considered merging all of the lignite mines in Germany into two to four companies. This would not only have deprived the ordinary shareholders of Braunkohle-Gasoline AG from their enormous sales profits from the lignite mined, but would have degraded all private companies involved in Brabag to insignificance.

At the same time, the positions of the Reich Commissioner and the Chairman of the Supervisory Board were to be merged, which would have been tantamount to transforming Brabag into a state-owned company and inevitably led to the dissolution of the mandatory community. The plans could not be implemented. They failed due to resistance from the Brabag management. The Reichskommissar only played a role in raising capital for the lignite gasoline company until 1939. After that he was not consulted by Brabag, nor did he intervene in their business, apart from confirming changes in personnel.

A key feature of the influence that the shareholders could exert on Brabag until the end of the war was the decentralization of the administration. Although the Berlin head office managed the construction and commissioning of the systems, after the economic consolidation, the factories took over the commercial and administrative management independently. The head office also did not coordinate the supply of raw and auxiliary materials. Each plant concluded the contracts for itself - and as far as the lignite deliveries were concerned, these naturally came from the surrounding area of ​​the respective operating company. For example, ASW dominated in Böhlen and in the Brabag Zeitz plant, Friedrich Flick KG (Mittelstahl, AKW, WW), which had developed into a mega-corporation in the German lignite industry, clearly dominated.

Works

Immediately after the conclusion of the partnership agreement, the battle over the location distribution came to a head. Initially, three large plants were to be built between 1935 and 1936, followed by another later. While the Bubiag brought Niederlausitz into play, the ASW emphasized the advantages of Böhlen. EWAG wanted a plant near its mines near Magdeburg, as the coal there was made up of the coal used by IG Farben in Leuna. The latter endorsed the entire project anyway, insofar as it could participate as a licensor for its process at the production sites.

For the fourth plant, the Meuselwitz-Altenburg lignite district or the Zeitz-Weißenfels lignite district , where the WW , the nuclear power plant , the DEA and Mittelstahl owned mines, were up for discussion . These proposals were also supported by IG Farben, which in the Zeitz-Weißenfels mining area drove the exploration of the Otto-Scharf mine through A. Riebeck'sche Montanwerke AG, which belongs to it .

In the end, the operating companies agreed on the following locations:

Brabag factory	Bohlen	Magdeburg	Schwarzheide	Time
place	Böhlen near Leipzig	Magdeburg-Rothensee	Schwarzheide near Ruhland	Tröglitz near Zeitz
Procedure	Bergius Pier Procedure	Bergius Pier Procedure	Fischer-Tropsch synthesis	Bergius Pier Procedure
start of building	March 1, 1935	January 1, 1935	February 10, 1935	May 1, 1937
Installation	March 12, 1936	June 30, 1936	June 1, 1936	March 1, 1939
Planned capacity at the start of construction (t / a, tons of fuel per year)	240,000 t / a	200,000 t / a	200,000 t / a	320,000 t / a
Peak performance (achieved in 1943)	250,000 t / a	220,000 t / a	400,000 t / a	280,000 t / a
Cessation of production	March 21, 1945	February 9, 1945	March 23, 1945	March 31, 1945
Recommissioning at the instigation of SMAD	October 1, 1945 as SAG Gasoline Works Böhlen	September 2, 1945 Dismantling from November 15, 1946	May 30, 1945 as SAG synthesis	June 10, 1945 as SAG SMOLA
Handover to GDR	June 1, 1952 as VEB Kombinat Otto Grotewohl Böhlen	-	January 1, 1954 as VEB Synthesewerk Schwarzheide	January 1, 1954 as VEB hydrogenation plant Zeitz
Today's operator	from 1990 Sächsische Olefinwerke Böhlen from 1995 Dow Olefinverbund ( Dow Chemical )	-	from 1990 BASF Schwarzheide	from 1990 decommissioning and demolition (use of the chemical and industrial park Zeitz )

The designed capacity or maximum output limit could not be reached immediately at any location. Commissioning took place in several expansion stages in all plants. The systems in Böhlen and Magdeburg did not go into operation for a full year for the first time towards the end of 1937. From 1938 to the end of 1942, three further expansion phases followed in both plants. The license fees that IG Farben received for the plant in Böhlen, for example, were over RM1 million in the first year alone.

There were considerable start-up difficulties at the Schwarzheide plant, which was initially also called Brabag Ruhland . Large parts of the plant had to be demolished after the official commissioning. In the first two years it was only possible to achieve an output of 5000 tons of diesel and vehicle gasoline. However, the plant in Lausitz represented a large-scale test facility, in which experience with the large-scale implementation of new gas generation plants and gasoline synthesis was to be gathered. For the setbacks, the Reich Ministry of Finance granted a special depreciation of around RM 3.6 million for 1936 alone . There was a further decrease in production due to technical defects from the end of 1938. The final expansion of the plant was not completed until the summer of 1943. Aviation fuel , which should be a focus of production of Brabag were never manufactured in Schwarzheide.

At the Zeitz plant, the expansion of the plant to 320,000 t / a processing capacity began on January 3, 1940. This maximum output was achieved in September 1943, but for technical reasons it was reduced to 280,000 t / a a short time later.

In addition to ongoing fuel and lubricating oil production, intensive research was carried out in all Brabag plants to develop new hydrogenation processes and new synthetic products. Performance comparisons and scientific experiments with various raw materials were carried out in specially set up laboratories. The research work was supported by the Reich Ministry of Economics with low-interest loans and the Reich Ministry of Finance granted Braunkohle-Petrol AG high depreciation and tax waivers. The Brabag chemists worked closely with the Kaiser Wilhelm Institute for Coal Research in this area and regularly exchanged scientific peer reviews . Especially in the production of synthetic gasoline, attempts to increase the octane number from 66 to 98 were a focus of the research work.

financing

ASW's Brabag ordinary share

Brabag ordinary share of DEA

Brabag's obligation from 1938

Substantially the 10 million RM each in the start-up capital of Brabag did not pose a problem for any of the companies involved. The operating companies were the ten largest lignite producers, who accounted for 90 percent of German lignite. Rather, the acquisition of a majority of the shares should be excluded using the distribution key drawn up by Gustav Brecht. The state guaranteed the shareholders an annually fixed dividend as well as the purchase of fixed quantities of raw lignite. In the event of losses, the state paid compensation; in the case of profits, Braunkohle-Petrol AG transferred additional revenues that exceeded the guaranteed dividend to the state. Due to the continuously increasing profits, the guaranteed dividend was increased several times until the end of the war. Furthermore, the state took on an obligation to purchase the synthetic gasoline produced at fixed prices as well as the fixed and variable costs of the necessary infrastructure , such as rail connections, feeder roads and its own motorway access roads . In addition, Dresdner Bank , as the house bank of Braunkohle-Petrol AG, granted all companies involved in Brabag low-interest loans.

The 10 million RM per operating company were not due immediately, but were paid in installments depending on the progress of construction and the company's cash situation. In addition, the Reich Ministry of Finance granted the use of the box privilege . In other words, the ten founding members partially transferred shares to subsidiaries, which enabled them to treat almost all of their income tax-free. In the early years, 47 shareholders formally held shares in Braunkohle-Petrol AG. For example, Ilse Bergbau AG acquired shares worth 6,807,000 RM, the rest was raised by Matador Bergbaugesellschaft, which belongs to it. Or EWAG, which itself only subscribed to shares with a value of RM 2,517,000. The remaining stake was taken over by Braunschweigischen Kohlen-Bergwerke (2,557,000 RM) and many smaller subsidiaries, such as Bergwitzer Braunkohlenwerke AG (214,000 RM), in which EWAG was the majority shareholder.

The IG Farben, which was a founding member of Brabag, was in fact not a member of the “compulsory community” at all. According to its annual reports, IG Farben itself did not acquire any shares, but instead passed the entire stake on to subsidiaries at the beginning. This included several lignite mines in the Geiseltal and in the Helmstedt lignite district . In addition, IG Farben was wholly owned by Deutsche Grube Bitterfeld AG and fully affiliated with A. Riebeck'sche Montanwerke AG within the framework of a dividend guarantee agreement . The latter acquired ordinary shares valued at RM 5,560,000 in accordance with the IG Farben distribution key. However, from 1936 onwards, almost all subsidiaries transferred the Brabag shares back to the respective parent company. The distribution key for the shares had thus become pure waste . By the end of the war, three of the ten founding companies owned almost 60 percent of the capital. These were the AKW (Friedrich Flick KG), the RAG and the IG Farben.

The business year 1935 was filled exclusively with the work for the construction of the plants in Böhlen, Magdeburg and Schwarzheide as well as the preparation and the conclusion of the contracts necessary for the operation including the establishment of the necessary administrative apparatus. Logically, profits could not be achieved in this investment year. This changed a year later. Although various plants were still under construction, the production of pure gasoline in the Böhlen plant was around 98,000 tons and in the Magdeburg plant around 24,000 tons. The Böhlen plant was already making a profit, while Magdeburg had to record a small loss after several months of trial operation. In 1937 the Brabag-Werke produced a total of 320,000 tons of fuel and made a profit of 5%. By the end of 1938, production could be increased to 447,000 tons.

The average dividend rose from 5.2% to 5.8% during this period. However, according to the partnership agreement, only those shareholders who had fully paid up their pro rata share capital were entitled to dividends. By the end of 1937 only 50% of the total capital had been paid up. The construction of all four plants cost around 400 million RM by the beginning of 1939. By then, the lignite gasoline AG had grown into a company with fixed assets of around 350 million RM and from 1939 to the end of 1944 regularly paid dividends of between 6% and 7%.

In addition, by the end of the war, the company founded four subsidiaries in the areas of sales, trade, residential construction and real estate, and held stakes of up to 75% in a further ten companies, primarily in the chemical and mineral oil sectors. The company's own property was also gradually expanded. The total invested capital of Brabag was around 600 million RM by the end of the war.

In the period from 1938 to 1940 the company issued bonds on the free investment market. These capital increases were due to the new construction of the plants in Tröglitz, the setbacks in Schwarzheide, but above all the expansion of the production capacities of all plants. The issue volume totaled RM 120 million. The fixed-income securities were issued in three sequences, divided into 500 and 1,000 RM:

• annual guaranteed interest rate of 4.5% for partial bond from 1938 (1st episode 40,000,000 RM)
• annual guaranteed interest rate of 4.5% for partial bond from 1938 (2nd episode 40,000,000 RM)
• annual guaranteed interest of 5.0% for partial bond from 1940 (3rd episode 40,000,000 RM)

Dresdner Bank, Berlin acted as the syndicate bank. The bonds were secured by a default guarantee from the compulsory community and by a guarantee from the Reich Ministry of Finance. The securities thus represented a government bond which, due to this security and good interest rates, mostly small savers , many families and pensioners acquired. These circumstances led to long and difficult legal disputes in the post-war period. On the one hand, the fixed assets of Braunkohlen-BENZ AG expropriated in the Soviet occupation zone could not be valued. On the other hand, the Federal Republic of Germany , founded in 1949, had undertaken to assume certain rights and obligations of the German Reich. In addition, after the company's relocation to the American sector, the federal government had acquired over a third of the Brabag shares.

NS model company

Brabag settlement Schwarzheide, around 1941

Settlement houses in Schwarzheide-Wandelhof, around 1941

Former Brabag-Filmbühne Schwarzheide, around 1966

Schwarzheide-Wandelhof, elementary school in the former Brabag settlement, around 1956

In the course of the establishment of the Brabag-Werke, more than 100,000 people found work between 1935 and 1940. In addition to the factories, factory settlements emerged, some completely new towns. 124 construction companies and 50,000 to 60,000 people were involved in the construction of the plant in Böhlen alone, of which around 1,500 were given permanent jobs. The local chronicle of the community, Oskar Fritzsche, summarized the development with the words: "In Böhlen life pulsates like in few places in our kingdom." Hitler's "personal photographer" Heinrich Hoffmann published the illustrated book Braunkohle-Petrol AG Werk Böhlen National Socialist Model plant out. Almost 60 percent of the workers recruited by Brabag-Werk Böhlen were or became members of the NSDAP . In its company newspaper in December 1934, the ASW stated with astonishing frankness:

“Böhlen in particular, which used to be decried as a red stronghold, and whose workers 95 percent declared their leadership on November 12th last year, is the best proof of the adaptability of the workforce to political changes as long as their professional and social position remains intact . "

Overall, the number of permanent employees at all Brabag locations rose from around 4,200 in 1937 to around 13,800 in 1944. These consisted of a small group of skilled workers and specialists on the one hand, and a significantly larger group of simple workers on the other together. While the first had to have in-depth knowledge of the production process in the complex systems, the others were required for activities that hardly required specialist knowledge, such as transporting the incoming coal, operating machines, heating, electricity and incineration systems, and filling chemicals and fuels in canisters, tank trucks, petroleum tank cars .

As far as covering the demand for ordinary workers was concerned, these were mainly recruited from the army of the unemployed and the agricultural population of the surrounding villages. In addition, many Sudeten Germans and Germans from Upper Silesia who left their homeland en masse in the 1930s found work at Brabag. In order to be able to meet the need for qualified positions at short notice, staff were withdrawn from the companies of the founding members and transferred to the locations. Due to the good pay and high social benefits, many young academics, chemists and engineers as well as well-trained skilled workers from outside the industry took up work at Brabag after completing their studies or training.

In addition, the company trained a large number of apprentices from the start. The training was based on the Jenaplan school development concept and was seen as demanding and innovative. The practical lessons took place in the respective plant, the theoretical and accommodation in the company's own boarding school at the central training workshop and mining vocational school Heureka (today Zwickau mountain school ). Furthermore, Brabag bought the Tröglitz ancestral farm in 1936 and converted it into a large training facility for all plants. From September 1939, the apprentices enjoyed the privilege of being largely exempted from military service as mountain school students in war-related companies or of being irreplaceable as "UK" . Overall, the Brabag workforce was very young at all locations.

The German Labor Front awarded all four Brabag plants the title National Socialist Model Company . This included criteria such as "exemplary health care", "exemplary vocational training", "social housing", "social welfare" and "promoting strength through joy ". The components of the Brabag settlements included factory savings banks, which among other things granted low-interest loans to employees, outdoor swimming pools, sports and tennis courts, gyms, schools, kindergartens, health centers, community houses, factory canteens, film stages, libraries, etc.

Well-known architects and landscape planners such as Gustav Allinger , Alfred von Bodisco and Walther Stridde were involved in the design of the settlements . The single or multi-family houses offered a high level of comfort for this time, such as bathroom / toilet, standardized fitted kitchens, some with central heating. The design of the residential areas was relatively spacious and was essentially based on the National Socialist garden city concept :

• In Böhlen, a total of 310 new buildings were built in a coherent structure that led from the town center into the open landscape. Parts of the settlement were badly damaged by Allied air raids. Among other things, the Fortunapark, which was redesigned as an amusement park by Braunkohle-Petrol AG in 1937, and the first kindergarten in Böhlen opened by Brabag in 1939 have been preserved. Further completely new housing estates for employees of the Böhlener Brabag-Werk were built in neighboring Rötha and Zwenkau .

• Schwarzheide was founded with the construction of the hydrogenation plant in the immediate vicinity of the city of Ruhland on October 1, 1936. The place didn't exist before. Today, the historic factory settlement largely forms the center of Schwarzheid. By 1944 eight works manager houses, 32 assistant houses, 115 master craftsmen's houses, 122 workers' houses, 214 people's apartments, 148 apartment buildings as well as public buildings, streets, squares, leisure and green spaces were built. Further Brabag settlements for employees of the Schwarzheide plant were built in the neighboring villages of Wandelhof and Schipkau .

• The Brabag settlement in Magdeburg-Rothensee was built between 1935 and 1939. Small settler houses for workers, single-family houses for masters, engineering houses with an even higher standard, as well as several three- and four-room apartments in two- and three-storey rows of multi-family houses were built for around 1400 people. The living space of these then so-called people's apartments was between 62 and 75 square meters. Due to the different orientation and arrangement of the buildings, generous inner courtyard, green and garden areas were created between the rows of houses.

• For the Brabag Zeitz plant, the village of Tröglitz was created entirely on the drawing board as a workers' settlement . The development work in the district began in January 1937. The official start of construction was May 1, 1937. Mostly, people's apartments were built here in two-story apartment buildings. At the same time, from autumn 1937, another factory settlement with single-family houses for foremen and engineers was built in Rehmsdorf, around two kilometers away .

The company magazine Der Kontakt was published from 1938 to 1944 . This periodical is an important contemporary document of Brabag as well as the technical research and development of coal liquefaction in general. According to studies, the Brabag workforce in all plants shaped a strong togetherness with great operational pride, long into the post-war period. In the GDR, SED functionaries were given the task of destroying the values ​​and bonds that had built up, the proverbial “Brabag spirit” in the districts .

production

With the founding of Braunkohle-Petrol AG and the construction of the plants, the future path of the mineral oil industry in Germany seemed to be mapped out. One of the declared goals of National Socialist economic policy was to produce as much fuel as possible. Brabag was only pars pro toto . The rise in world market prices for mineral oil and improved production processes made the synthetic production of fuels so lucrative that there was no longer any need to establish further “compulsory communities”. Almost all large German energy suppliers built their own hydrogenation plants in the period that followed. A total of 23 plants were built in the German sphere of influence by 1943, nine of which worked with the Fischer-Tropsch technology of Ruhrchemie, and 14 with the high-pressure hydrogenation process of IG Farben.

In general, historical research assumes that all hydrogenation plants built or planned before 1937 had no military-strategic components. That changed in August 1936, Hitler's memorandum on the four-year plan and the resulting regulation for the implementation of the four-year plan of October 18, 1936. This was Hermann Goering , the general power within four years of the economic and military war capability of the German Reich by self-sufficiency and forced upgrade to to reach. A goal explicitly demanded by Hitler in his memorandum was the maximum expansion of plants for the production of synthetic gasoline. After Hjalmar Schacht was dismissed as Reich Minister of Economics in the summer of 1938, Göring converted the four-year plan entirely to military-economic goals, so that the needs of the civil economy were not met Found more consideration.

Against this background, the construction of the hydrogenation plants in Tröglitz and the expansion stages to expand the capacity of all Brabag plants can clearly be assigned to military intentions. The largest plants, however, were not built and operated by Brown Coal Petrol AG, but by IG Farben in Leuna and Blechhammer (today Kędzierzyn-Koźle ), Gelsenkirchener Bergwerk AG and Hibernia AG in Scholven , Hydrierwerke Pölitz AG in Pölitz and the Sudetenland fuel works AG in Brüx . The plant in Pölitz had an annual output of 700,000 tons of oil and thus exceeded the capacities of all other hydrogenation plants. In addition to IG Farben, one third of the shareholders in Hydrierwerke Pölitz AG were Standard Oil of New Jersey (ExxonMobil) and Royal Dutch Shell . Both companies participated in six other German hydrogenation plants.

The last plant, the construction of which began before the war, was built in Brüx by Sudetenlandische Treibstoffwerke AG, a 100 percent subsidiary of the Reichswerke Hermann Göring . The plant had a planned annual output of 600,000 tons of lignite petroleum and was fully financed with government funds amounting to RM 250 million. That was more money than the total investment available to the German aircraft industry in 1939/40. Thus, the plants of the Braunkohle-Petrol AG did not have the highest capacities either individually or together. IG Farben remained the largest producer of synthetic fuels with its plants in Pölitz, Leuna (650,000 t / a), Blechhammer North (700,000 t / a) and Blechhammer South (700,000 t / a). The latter plant did not start production until the beginning of 1944 and a short time later it was severely damaged by air raids. Another IG Farben plant under construction in Auschwitz-Monowitz with a planned annual output of 400,000 tons of isooctane was no longer operational.

Overall, all German plants had a combined capacity of around 4.5 million tons. This peak performance was only achieved once in the period from 1943 to the beginning of May 1944 and is not to be equated with the annual production of synthetically produced vehicle fuel or even aviation fuel . All hydrogenation plant operators who worked according to the IG process did not respond to the Luftwaffe's urgent need for high-quality aviation fuel until the end of 1940. In the period that followed, aircraft fuels formed the largest share of production in these plants, but they were followed by gasoline, diesel fuel , heating oil, lubricating oil and other products (secondary products).

In the case of the information on the total capacities, it should also be taken into account that the nine Fischer-Tropsch plants did not produce any aviation fuel, so that the proportion of fuel produced by this process was lower than that of the IG process. Both processes could be used to produce gasoline and diesel oil, with the quality of the products being differentiated by different octane numbers and cetane numbers . Specifically, the production of all 23 hydrogenation plants in 1943 was 3 million tons of gasoline (vehicle and aviation fuel combined), 770,000 tons of lubricating oil and 430,000 tons of diesel fuel.

Although the Nazi autarky and armaments policy achieved an enormous expansion of industrial coal chemistry in Germany, synthetic fuel production did not even come close to ensuring independence from oil imports at the beginning of the war and in the period that followed. From mid-1944, shortly before the invasion of Normandy , production plummeted to 85,000 tons as a result of targeted air strikes by the Allies against German oil centers, refineries and synthetic hydrogenation plants. In September 1944 the total production of all German hydrogenation plants was only eight percent of the amount reached in April and fell back to the level of the 1920s by the end of the war.

Forced labor

Prisoners of war and Eastern workers

In order to ensure production despite the increasing shortage of workers in the war years, foreign workers who were recruited and who came to Germany voluntarily to work, but from the end of 1941 also prisoners of war and Eastern workers were assigned to all hydrogenation plants . Up to the present day the issue of prisoners of war has been the subject of scientific research from the German, Western Allied and Soviet or Russian point of view. It is certain that the labor deployment of prisoners of war in industry, in mining or in clean-up work was common in all warring countries. In contrast to the treatment of Soviet prisoners of war, the treatment of Western Allied prisoners of war in the German Reich is said to have basically complied with the humanitarian guidelines of the Geneva Convention .

Reliable and complete information on the number, nationalities and treatment of prisoners of war is not available for the Brabag-Werke. In 1943, a total of 234 Soviet and 63 French prisoners of war were assigned to the plant in Böhlen, whose food, according to those affected, was adequately promoted by the plant management in terms of quantity and quality. The use of force was prohibited. Until mid-1944, the Brabag-Werk Zeitz employed almost exclusively freely recruited foreign workers. In July 1944, for example, there were 755 civilian foreigners out of a total of 2991 people employed in the plant, who received their meals in the plant canteens together with all employees. Nine French and 25 Italians were demonstrably the only prisoners of war in the Zeitz Brabag plant.

Concentration camp inmates

Brabag-Werk Böhlen after air raids in May 1944

Destroyed filling plant at the Böhlen plant, 1944

Magdeburg in January 1945, in the background the burning Brabag factory

Between May 12 and 29, 1944, 1,000 heavy US bombers flew concentrated attacks against all German refineries and fuel plants. The systems were then considerable, mostly completely destroyed. The Brabag Zeitz plant reported 96 deaths and a loss of production of 600 tons of fuel per day. In the Böhlen plant, 1030 bombs dropped and “major damage to buildings, machines and apparatus, especially in the power grid and the many pipelines” were recorded. Overall, 36 percent of synthetic fuel production and 56 percent of aviation fuel production failed across the country.

At the same time, Soviet troops were approaching the Romanian oil fields. This threatened the complete collapse of the German fuel supply. Against this background, Adolf Hitler immediately and personally ordered “immediate measures to restart and protect the hydrogenation works” on May 30, 1944. The so-called mineral oil security plan was created , a secret project that around 350,000 people, including around 100,000 concentration camp prisoners, were deployed to implement. Under the direction of Gerhard Maurer , the SS-Wirtschafts-Verwaltungshauptamt immediately had hundreds of “miniature concentration camps” - external commandos and forced labor camps set up. The Reich Ministry for Armaments and War Production organized and financed the reconstruction of the factories and the construction and maintenance of the camps, along with provisions for the prisoners . This not only affected Brabag, but also all refinery and fuel plants within the German sphere of influence, all of which showed considerable damage.

Companies assigned to concentration camp prisoners had to pay a fixed rate of 4 RM per day per unskilled worker and 6 RM per skilled worker to the SS. In the Brabag works, the prisoners were used exclusively for construction and clearing work. The prisoners had to unload building materials, repair roads and tracks in the plant, expose damaged pipe and cable networks and defuse duds so that German technicians could resume the complicated chemical operations as quickly as possible. The guard was generally carried out by SS personnel. For all hydrogenation plants, external concentration camps were set up , including for the Brabag, later synonymous with the Brabag camps by inmates :

• The Brabag-Lager Schwarzheide was a satellite camp of the Sachsenhausen concentration camp and existed from July 5, 1944 to April 16, 1945. It consisted of ten wooden barracks, located in a pine forest around 100 meters from the plant. Around 1,000 young Czech Jews were imprisoned here over the period. From mid-August 1944, further targeted Allied air raids followed, in which many prisoners were killed.

• The Brabag camp Magdeburg-Rothensee existed as a satellite camp of the Buchenwald concentration camp from June 17, 1944 and was known internally by the SS as “Magda”. The total number of prisoners is given as 2172 or, spread over the period, with an average of 362 per month. These were almost exclusively Hungarian Jews. The branch consisted of four barracks, a large tent and a building with a kitchen and infirmary. The housing and working conditions were described as catastrophic. In addition to the rescue work, the prisoners had to build three large air raid bunkers in record time, even in the event of an air raid alarm , unprotected in the Brabag settlement and on the factory premises . 529 forced laborers lost their lives in the “Magda” camp. A memorial plaque in Rothensee today commemorates the victims . Many died of exhaustion or during the air raids on Magdeburg on January 16, 1945 , during which the camp was completely destroyed and large parts of the plant were destroyed again. For this reason, on February 9, 1945, production in the Magdeburg plant ceased and the sub-camp was officially closed.

• As a satellite camp, the Brabag Böhlen camp also belonged to the Buchenwald concentration camp. It existed from July 25, 1944 to November 28, 1944. The prisoner barracks were located directly on the factory premises. According to Walter Bartel's research work, which is extensively documented, a maximum of 500 prisoners are said to have been deployed over the period in the reconstruction of the Brabag facilities in Böhlen. Other, unspecified publications give 1080 prisoners. It is documented that, unlike the other Brabag camps, there were no Jews in Böhlen. Around 100 former Wehrmacht soldiers were guarded. 35 escapes were registered, five of which were unsuccessful. The death rate in the Böhlen camp was comparatively low. Twelve prisoners died in an air strike. According to controversial information, after another bombing in February 1945, an unknown number of concentration camp prisoners were briefly used for clearing and reconstruction work.

• The Brabag camp Tröglitz-Rehmsdorf (Zeitz hydrogenation plant) was also part of the Buchenwald concentration camp as a satellite camp. It existed from June 5, 1944 to April 9, 1945 and was known internally by the SS as “Wille”. Initially set up by 200 Dutch forced laborers as a tent camp in Tröglitz, a barrack camp was built under the direction of the Todt organization in neighboring Rehmsdorf by the end of 1944. The prisoners were taken to a public hospital in Zeitz for delousing. The treatment of sick and wounded prisoners took place in the Brabag factory clinic and by a Zeitz doctor. A scientifically sound research work on the number of forced laborers imprisoned here is not yet available. Accordingly, the victim details differ considerably from each other and can sometimes be described as incorrect. The range extends from 2,860 Jewish concentration camp prisoners, up to 4,250, over 8572, 8836, up to 9000. In some of these information from Buchenwald, inmates returned from the subcamps “Wille” and “Magda” were mixed, almost always missing sources . In no case do these figures stand up to a comparison of the other Brabag plants and, even less, of all German hydrogenation plants that were no more or less destroyed than the Zeitz plant. There is evidence that the SS had been using prisoners from the Buchenwald concentration camp since June 1944, with constant exchange at Brabag factories. It is also documented that on January 16 and March 31, 1945, heaviest air raids were carried out on the Brabag factory in Zeitz , which led to the cessation of production. A total of about 6,450 bomb and air mines were dropped on these days. Of these, 3,350 hit the factory directly. The remaining bombs caused severe destruction in the area with many deaths, including a large number of prisoners who had to remain unprotected on the factory premises or in the barracks during the attacks. One of the surviving forced laborers was the Nobel Prize winner Imre Kertész , who recorded his experiences in the subcamp “Wille” in the novel of a fateful man .

• Schwalbe II near Königstein (Saxon Switzerland) and Schwalbe V near Berga / Elster were intended for the Brabag underground relocations . Between November 1944 and April 1945, forced laborers and thousands of miners from Saxony and the Rhineland built tunnel systems for the construction of underground Bergius pier systems. The construction projects were SS projects from the start and not, like other U-relocations, were subordinate to the Todt Organization. Financing was also provided entirely by the SS, with forced laborers who had previously been employed in the Brabag works, both in Königstein and in Berga. The work was carried out under the strictest of secrecy and using various aliases, which in research makes it even more difficult to determine the number of forced laborers in the individual Brabag plants. For example, “Wille” was a code name for the concentration camp external command in Tröglitz-Rehmsdorf and for Schwalbe V. In addition, there were other code names such as “Braun & Co.” and “Ingenieurbüro Horst & Co. Böhlen” for Schwalbe V. In the Brabag works in Böhlen, Magdeburg and Zeitz, parts of the plants were dismantled and used to build the underground hydrogenation works. The production facilities in Königstein and Berga never went into operation.

The political scientist Tobias Bütow states that the majority of the workers deployed in all Brabag plants after the air raids are not forced laborers, but external employees from nearby industrial companies, members of the RAD , technical emergency aid , the air raid police , customs and border protection and the Wehrmacht were. According to his research, the four Brabag plants were rebuilt by a total of 24,000 workers, around 9,950 of them concentration camp prisoners. However, there are no specific sources of supply for this number of prisoners either, and Bütow points out that the information provided is fragmentary.

After the war, Braunkohle-Petrol AG steadfastly fought off claims for compensation from former prisoners. Among other things, the Jewish Claims Conference (JCC) filed model declaratory actions against Brabag in 1957 . After the company refused to enter into negotiations and legal recourse , taking into account the Federal Compensation Act, appeared hopeless, the JCC withdrew the lawsuits in the same year. The board of directors of Brabag took the position that the company had been founded under compulsion as a state compulsory community and that the labor camps were completely under the control of the SS.

Another case against Braunkohle-Petrol AG came to a decision at the Federal Court of Justice in 1973 and was rejected on the same grounds. The judges followed the principle that the use of concentration camp forced laborers was “closely related” to the acts of the SS. In view of the obvious hopelessness of being able to obtain compensation in court, there were initially no further attempts to bring an action across the country after this “Brabag decision”. This only changed at the beginning of the 21st century after the foundation “Remembrance, Responsibility and Future” was founded .

post war period

Reconstruction of the gasoline plant in Böhlen

Böhlen petrol plant, 1952

Former administrative building of Brabag in Schwarzheide, 2011

Former administrative building of Brabag on August-Bebel-Damm in Magdeburg , 2015

With the occupation of Central Germany, the Allies ordered the immediate restart of all Brabag plants. While Schwarzheide immediately came under Soviet control, Western Allied troops initially requisitioned the facilities in Böhlen, Zeitz and Magdeburg. According to the zone protocol , the British and US armed forces had withdrawn from central Germany by July 1, 1945 and left the area to the Soviet occupying power in exchange with West Berlin :

• On April 21, 1945, advance divisions of the Red Army occupied the deserted Brabag factory in Schwarzheide without a fight. A few days later the order was given to clear the rubble and resume production as soon as possible. After the most severe damage had been repaired, the air liquefaction plant could already be started up in May . From June 1945 the power plant and the first Koppers plants for coal gasification went back into operation. This started the production of the first tons of fuel for the Soviet Union.

• On April 12, 1945, US troops reached the Zeitz area and hermetically sealed off the Brabag plant in Tröglitz from April 13 to June 30, 1945. Under their direction, the reconstruction of the entire plant began on May 7th. The commissioning of the hydrogenation chambers and the start of fuel production took place on June 10th. From July 1, 1945 the city of Zeitz and with it the Brabag factory belonged to the Soviet occupation zone. For the reconstruction of the plant, the Allies ordered the transfer of all the technical systems that were already in "Schwalbe V" to Tröglitz.

• Bohlen occupied US troops on April 18, 1945 and, after their withdrawal, Soviet troops on June 24, 1945. Due to the high level of destruction at the end of the war, it took the longest to start up again compared to the other Brabag plants. The repairs were carried out in day and night shifts, for which the Soviet occupying power brought workers from the entire Leipzig area to Böhlen. Even on Saturday afternoons and Sundays, so-called subbotniks had to remove rubble “voluntarily” and free of charge. The poorly patched systems went back into operation on October 1, 1945 and were to deliver fuels to the USSR in high-performance shifts as reparations .

• The Brabag plant in Rothensee was located in the west of the Elbe part of Magdeburg, which was occupied by units of the Ninth United States Army on April 19, 1945 . As agreed among the Allies, US troops did not cross the Elbe. From May 4, the American divisions were replaced by British troops, who handed over Magdeburg-West to the Red Army on July 1, 1945. Of all the destroyed factories in Magdeburg, the Brabag was the first to be repaired immediately on the orders of the Soviet Military Administration in Germany (SMAD) because of the indispensable fuel production . After the hydrogenation chambers started up again on September 2nd, KPD chairman Wilhelm Pieck inaugurated the production facilities on October 1st, 1945 . On November 15, 1946, after one year of production, the SMAD gave the order to dismantle . With the exception of the office building, the expropriated plant was completely dismantled. The occupying forces had the entire machine park, pipes, tracks, locomotives, test tubes, telephones and typewriters transported to the Soviet Union. At the same time, the hydrogenation plants in Pölitz and Auschwitz-Monowitz were completely dismantled and, together with the Magdeburg Brabag plant, built by German prisoners of war into a superlative hydrogenation plant with a monthly capacity of 130,000 tons, or 1.56 million tons per year, in Voronezh .

Employees of the lignite gasoline company, who refused to obey the Soviet orders, were exposed to legally concealed arbitrary acts in the form of short trials . One example of this is the 45-year-old Brabag clerk Karl Pohl in Schwarzheide, whom the Soviet military tribunal of the 9th Panzer Division Bobruisk-Berliner Rotbanner sentenced to death by shooting on July 28, 1945 for alleged propaganda. The execution took place in front of the assembled workforce. Quite a few executives and mining engineers were arrested by members of the Red Army and shot as alleged war criminals in special camp No. 2 in Buchenwald . In 1994, the General Prosecutor's Office of the Russian Federation declared almost all of these judgments to be injustice and rehabilitated those affected.

Because there was little or no knowledge of carbohydrate hydrogenation in the Soviet Union, the Moscow authorities sent 160 Soviet “experts” to Schwarzheide to study the systems. This was followed by the Ossawakim campaign , during which many of the German scientists who had previously worked in the hydrogenation plants were deported to the Soviet Union. As part of Operation Paperclip , the US government also had Brabag engineers and chemists spend most of the time in Louisiana (Missouri) for the Synthetic Liquid Fuels Program . In addition, between 1945 and 1947 the USA confiscated complete laboratory equipment as well as all German patents and utility model rights, including the invention patents for the Bergius-Pier process and the Fischer-Tropsch synthesis. British special forces also kidnapped German scientists in top secret operations, including 50 chemists and scientific staff from Magdeburg. As the Guardian found in declassified files in 2007, it was done on behalf of the British government "to plunder the defeated country's intellectual property, undermine its competitiveness and at the same time give British companies an advantage".

Although it was known for a long time before the revelations that German scientists and technicians had worked in the USA and Great Britain after the war, it was generally assumed until then that these were exclusively volunteers who were recruited through the promise of good pay. The released documents show, however, that the hunting squads often took the victims with them under duress and that they had to work in state institutions and private companies for several years after the end of the hostilities. Later the abductees had to sign never to speak about their experiences. One of the greatest beneficiaries of this “knowledge transfer” was the British state corporation Imperial Chemical Industries (ICI), which has had a hydrogenation plant in Billingham since 1935 and a top-secret CtL (Coal to Liquid) plant with an annual capacity of 1,500,000 tons since 1941 , of which 344,000 tons of aviation fuel and 55,000 tons of isooctane operated in Heysham .

Until the founding of the GDR , the headquarters of the Braunkohle-Petrol AG in Berlin, the plants and the Brabag subsidiaries located in the Soviet occupation zone were expropriated. The main administration was dissolved and the members of the executive and supervisory board were dismissed in autumn 1945. The fate of many of the executives who were unable to escape to the western zones in time is unknown. Several were arrested, taken to the Soviet Union and have been missing since then. The SMAD temporarily used selected trustees for the administration of Brabag . Officially, in June 1946, the remaining Brabag-Werke were transferred to Soviet joint-stock companies (SAG) according to order no . For the next seven years, the plants produced almost exclusively for the USSR. From April 1952, the SMAD allowed the GDR to “buy back” lignite and hydrogenation plants in stages. However, only after the popular uprising of June 17, 1953, the reparations payments were completely stopped with effect from January 1, 1954.

New beginning

Reinhardtstraße (formerly Karlstraße) around 1983, in the picture in the far back the wall , where the Kronprinzenbrücke is again today

Hohenzollerndamm 125–126 in Berlin-Wilmersdorf , 2017

Caltex tank boat in the Kiel Fjord near Friedrichsort (1965)

The former headquarters of Brabag at Schinkelplatz 1–2 was badly destroyed as a result of the Allied air raids on Berlin at the end of the war. As early as March 1945, the administration had moved into replacement rooms at Karlstrasse 20A (today Reinhardtstrasse). The building was not far from the Kronprinzenbrücke , after the division of Berlin, east of the sector border . The regular liquidation of the stock corporation was to take place in the spring of 1949. Contrary to his instructions, however, the trustee appointed in Berlin and the Brabag chief authorized signatory had gradually transferred shares, documents and large parts of the remaining liquid assets to the western sector , where the company still had a branch with the approval of the Soviet authorities. After the imminent liquidation became known in January 1949, the trustee and the authorized signatory cleared the East Berlin business premises in a night-and-fog operation, transported all the files, documents, business books and all of the office inventory, including coal briquettes, to the western part of the City and opened an office at Hohenzollerndamm 125–126. This became the new headquarters of the lignite gasoline AG. With the escape from East Berlin, the Brabag evaded the complete SMAD expropriation and was able to save its trizonal assets.

At about the same time, after a Soviet imprisonment, the mining engineer Dr. Erich Würzner to the western occupation zones, whom the American military government and the West German authorities immediately appointed as the Brabag managing trustee. Würzner had in 1932 with the dissertation gasoline production from brown coal by carbonization and split in one operation without application of pressure doctorate and in 1935 the production-technical management over the Brabag plant in Magdeburg. In 1938 he was appointed to the board of the stock corporation. From 1950 until well into the 1970s, he held the position of sole director of Braunkohle-Petrol AG. Even before the war, Würzner had good contacts with foreign scientists as well as with British and US oil companies. His son, Dr. Ulrich Würzner, later took over the administrative management of the ICI German headquarters in Frankfurt am Main.

After the establishment of the Federal Republic of Germany and the subsequent securities adjustment , the general meeting decided to convert the Brabag ordinary shares 1: 1 to 150 million DM. Here, the shareholders took into account claims of 300 million RM from war damage and the guarantee agreement with the German Reich, which were still in favor the Brabag passed. The assumption that the federal government would assume the obligations of the German Reich was justified. On the one hand, the drafts of the Consequences of War Act (later referred to as the General Consequences of War Act ) provided for the claims to be met by the Federal Republic of Germany. On the other hand, the federal government took over more than a third of the Brabag shares. In addition, the share distribution was made up as follows:

• RAG (29%)
• Nuclear power plant (15%)
• IG Farbenindustrie AG i. L. (13%)
• VIAG (6.5%)
• DEA (6%)

However, VIAG was also a formerly owned stock corporation, whose shares were transferred to the Federal Republic of Germany in accordance with Article 134 when the Basic Law came into force .

The newly elected Brabag Supervisory Board consisted of two state officials, Albrecht Müller von Blumencron and Erich Meissner, as well as five representatives of the companies involved, including Franz Hellberg and again Gustav Brecht . The remaining operating companies made the decision to resume active business activities voluntarily. In the same way, the acquisition and trading of the shares was from now on, as with all stock corporations, optional for the shareholders. Bubiag and EWAG easily withdrew from further participation, which, like the remaining founding members, had lost the majority of their operations in Central Germany, but were also able to save their remaining property in West Germany by relocating their headquarters and thus survived as a company. In the following decades, large parts of the Brabag shares changed hands several times. In December 1952 the share price was 310% and the price of the bonds issued in 1938 and 1940 was 160%.

At the beginning of the 1950s, Braunkohle-Petrol AG had a bank balance of 1.5 million DM as well as various old and new company investments . With this, the company tried to become a producing mineral oil company again under the aegis of Erich Würzner. Initially, the Western Allies had banned the operation of hydrogenation plants in Germany for strategic reasons, so that the fuel requirements in the western occupation zones were again largely met by British and US oil companies. When the hydrogenation ban was lifted in the early 1950s, crude oil was so cheap that the production of synthetic fuels in western Germany was not profitable. Looking ahead, Brabag founded the Mineralölraffinerie Ruhrbau GmbH in Mühlheim together with Hugo Stinnes AG and Bayer AG in 1950 . The new plant had a daily capacity of 2000 barrels , or around 110,000 t / a.

In 1953, lignite-gasoline AG was released from Allied control. From 1955 the company built a nationwide petrol station network in a 50/50 partnership with the US American Caltex , which with 827 stations was able to show a significant market share. To this end, Brabag founded Tank-Kraft GmbH in Hanover as a wholly-owned subsidiary, which sold products from Standard Oil of California and Texaco under the Caltex star . The initial capital of the joint venture was 10 million DM and was increased to 15 million in 1960. In 1956 Brabag invested 1.5 million DM in Nord-West Oelleitung GmbH , which built the first mineral oil pipeline in Europe.

Hope values

Debtor warrant issued by Brown Coal-Gasoline AG from December 1963

On October 22, 1957, the Bundestag, with the consent of the Bundesrat, passed an amendment to the Basic Law (insertion Art. 135a ) and on this basis passed the General Law on Consequences of War on November 5, 1957 , which came into force on January 1, 1958. The original draft of the Consequences of War Law underwent considerable changes. The law now stipulated that the federal government would in principle retain all rights of formerly owned assets, but that all claims against the German Reich would expire. In doing so, the federal government withdrew from the previously emphasized obligations and the livelihood of many companies.

As a result of the cancellation of all claims against the German Reich without compensation, Braunkohle-Petrol AG was not only deprived of its creditworthiness due to the old financial liabilities , but also every opportunity to meet the financial and supplier debts that still existed in direct connection with these old contracts. DEA immediately sold all shares in Brabag and the federal government transferred most of its shares to VIAG and PreussenElektra . On January 1, 1958, the remaining shareholders set the share capital originally converted 1: 1 to DM 150 million in the DM opening balance at 1.5 million. While some banks then insisted on immediate repayment of loans, the complete waiver of old delivery and service debts from Reichsmark times could be agreed with numerous creditors. In order to remain liquid , the company ceded almost all of its corporate holdings, including the shares in Mineralölraffinerie Ruhrbau GmbH in Mühlheim, which could be sold at a profit to Petrofina ( Brussels ).

On the assets side , the most important position was the Caltex Tank-Kraft Mineralöl-GmbH, which, in addition to the petrol station network, built the Caltex refinery in Raunheim from 1958 and in Kassel the largest tank farm in West Germany. The fuel storage facility mainly supplied the southern German area and had a capacity of 15,250 m ³ . The transshipment of fuels and heating oils to rail tank cars and tank trucks took place via 13 filling stations. In addition, Brabag took over Böco Mineralöl-GmbH in Regensburg in 1971 . The company had a fleet of its own tank wagons, which Brabag used and rented independently of Caltex for fuel transport between Hesse and southern Germany. The following were among the largest shareholder companies in Braunkohle-Petrol AG:

• Rheinische Braunkohlenwerke AG (successor to RAG)
• Union Rheinische Braunkohlen fuel AG
• VIAG
• Nuclear power plant
• PreussenElektra
• Kali und Salz AG
• IG Farbenindustrie AG i. L.

However, Brabag was unable to recover from the setbacks resulting from the Consequences of War Act. From 1961 the company gradually ceased active business activities. The reason for this was the three corporate bonds issued in 1938 and 1940, each worth 40 million RM. Although Brabag had already repaid a part, it was unable to satisfy all bondholders with the remaining assets . At the end of 1961, listed securities with a total value of RM 10,307,550 were still in circulation in West Germany. How many Brabag papers still existed hidden in attics or behind book walls in East Germany was unknown. As a result of the cancellation of all old claims, the Brabag administration applied for contractual assistance proceedings. 30,000 small savers were affected.

What followed now went down in German financial history as "Lex-Brabag". Legal scholars commissioned by the Brabag shareholders justified that the "securitized deficiency guarantee was of no importance for the remaining founding members of Braunkohle-Petrol AG, since they were forced to join the community of obligations in 1934 and only accepted the guarantee under pressure". The Bundestag Committee on Money and Credit also rejected the conversion of the Reich guarantee into a federal guarantee. The German Protection Association for Securities Possession suggested issuing debtor warrants . For this purpose, the Bundesbank officially estimated the value of the works expropriated in Central Germany at DM 600 million . Today this sum corresponds to the same purchasing power of 1,103,479,872 euros.

The arguments of the former Brabag founders and the federal government were more than a nasty surprise for many small savers. Because the bonds were still freely traded on the investment market. In addition to Brabag itself, banks and even the Federal Ministry of Finance had recognized the guaranteed bonds of Braunkohle-Petrol AG as a 100 percent assignment of security for loans, for example in construction projects .

Ultimately, interest rates were reduced and the bonds were retrospectively converted 10: 1 from Reichsmarks to Deutsche Marks. This transformed the former issue volume of 120 million RM into 12 million DM or 1.3 million DM for the securities that were still in circulation. As a result of court decisions, the proportionate payment of the converted amounts was made from 1963, 35% for the 1938 securities and 25% for the 1940 paper. For the remainder, the creditors were awarded debtor warrants. Examples:

• 1000 RM for partial debenture from 1938, revaluation 100 DM, payment 35 DM, debtor warrant 65 DM
• 1000 RM in the case of a partial bond from 1940, revaluation 100 DM, payment 25 DM, debtor warrant 75 DM

According to the “Brabag Decision”, several institutions and companies used debt settlement to settle debts. They had issued bonds before 1945 and owned confiscated assets in the former Soviet occupation zone or in the former German eastern territories . Some of the securitized remaining liabilities still represent so-called hope values.

resolution

After Brabag could no longer make a profit, the companies involved decided in 1983 to let the joint-stock company exist as a mere corporate shell . This kept Brabag on paper, so that the shareholders did not lose their claims to the property expropriated in Central Germany. The company no longer had its own staff, but was co-managed by the shareholder companies. Since Rheinische Braunkohlenwerke AG or its successor company, RWE Rheinbraun AG , now held the largest share in “Rest-Brabag” with 48%, they assigned an employee for administration purposes. One of the board members of RWE Rheinbraun presided over the Brabag supervisory board until it was dissolved.

After German reunification , the holding companies demanded the return of the expropriated Brabag assets. In addition to the works, this included the land of the former Brabag settlements, which were now part of the state property of Saxony and Saxony-Anhalt . The administrative headquarters of Brabag were relocated to Cologne in 1990 and back to Berlin in 1998. However, on the basis of the Unification Agreement and the Property Act (VermG), the SMAD expropriations remained legally valid despite years of legal efforts by Brabag shareholders. This meant that the companies involved no longer had any reason to maintain Brabag. On February 21, 2002, lignite-gasoline AG was deleted from the commercial register.

This ended the story of a company that was founded in 1934 as a compulsory community allegedly under duress as part of the Nazi autarky policy. The former Brabag founding members and their successors adhere to this representation unchanged in company publications and company biographies. According to independent studies, however, the Nazi state was able to fall back on the desired industrial capacities without resistance, since investment activity in the relevant industries was in general by no means based on state coercion, whether direct or indirect. Rather, most investments were made voluntarily on the basis of a profit interest stemming from the private sector's rationality.

Longer than in the Third Reich - and in any case voluntarily - the companies involved stuck to the continued existence of Brabag in the Federal Republic of Germany. The logo developed in 1934 and the layout of the letterhead remained unchanged for 67 years. In 2002 the letters Braunkohle-Petrol AG still wore the same brown color as in 1934.

See also

• Humberghaus , historical place, on Siegfried Frank: the fate of a BRABAG concentration camp inmate in the "Wille satellite camp", part of the Buchenwald concentration camp , died on the death march .

literature

• Rainer Karlsch, Raymond G. Stokes: Factor Oil. The mineral oil industry in Germany 1859-1974 . Beck, Munich 2003
• Tobias Bütow, Franka Bindernagel: A concentration camp in the neighborhood. The Magdeburg satellite camp of Brabag and the "Freundeskreis Himmler". Böhlau, Cologne 2003
• Henry Hatt: Secret project rudd (swallow 2). The BRABAG ZEITZ on Bocksberg near Marktgölitz. Heinrich Hattenhauer, Ludwigsstadt 2018

Web links

• Original photos Brabag NS model operation of individual works German digital library
• Ordinance on the establishment of compulsory communities in the lignite industry of September 28, 1934 Austrian National Library
• Implementing ordinance on the establishment of compulsory economic communities in the lignite industry of October 23, 1934 Austrian National Library

Individual evidence

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