Posts Tagged ‘Danube Shipping Company’

Adolf Hitler, Fascism and the Corporative State

January 1, 2019

A week or so ago I put up a passage from Hitler’s Table Talk, in which the Nazi leader made it absolutely clear that he didn’t want Nazi functionaries and members of the civil service holding positions or shares in private companies because of the possible corruption that would entail. He illustrated his point with the case of the Danube Shipping Company, a private firm that got massively rich in pre-Nazi Germany through government subsidies, because it had members of the ruling coalition parties on its board.

Which is pretty much the same as the recent fiasco in which Chris Grayling has given 13,800 pounds of public money to Seaborne Freight, a ferry company that has no ships and no experience of running a shipping company, to run a ferry service to Ostend as part of the preparations for a No Deal Brexit. Other companies also wanted to be considered for the contract, like Brittany Ferries, but despite Grayling’s huffing that there were extensive negotiations, the contract wasn’t put out to competitive tender. It seems instead to have been awarded because Mark Bamford, whose maritime law firm shares the same headquarters as Seaborne Freight, is the brother of Antony Bamford, who is a Tory donor.

See: https://voxpoliticalonline.com/2019/01/01/the-corruption-behind-the-tory-freight-deal-with-a-shipping-company-that-has-no-ships/

When a monster like Adolf Hitler, who killed millions of innocents, starts talking sense in comparison to this government, you know we’re in a very desperate way.

Despite his desire to outlaw personal connections between members of the Nazi party and civil service and private corporations, Hitler still believed that business should be included in government. On page 179 of Mein Kampf he wrote

There must be no majority making decisions, but merely a body of responsible persons, and the word “Council” will revert to its ancient meaning. Every man shall have councilors at his side, but the decision shall be made by one Man.

The national State does not suffer that men whose education and occupation has not given them special knowledge shall be invited to advise or judge on subjects of a specialized nature, such as economics. The State will therefore subdivide its representative body into political committees including a committee representing professions and trades. In order to obtain advantageous co-operation between the two, there will be over them a permanent select Senate. But neither Senate nor Chamber will have power to make decisions; they are appointed to work and not to make decisions. Individual members may advise, but never decide. That is the exclusive prerogative of the responsible president for the time being.

In Hitler, My Struggle (London: Paternoster Row 1933).

Hitler here was influenced by Mussolini and the Italian Fascist corporate state. A corporate was an industrial body uniting the employer’s organization and trade union. Mussolini reorganized the Italian parliament so that it had an official Chamber of Fasces and Corporations. There were originally seven corporations representing various industries and sectors of the economy, though this was later expanded to 27. In practice the corporate state never really worked. It duplicated the work of the original civil service and increased the bureaucracy, as another 100,000 civil servants had to be recruited to staff it. It was also not allowed to make decisions on its own, and instead acted as a rubber stamp for the decisions Mussolini had already made.

Once in power, however, the Nazis quietly discarded the corporate state in practice. The economy was reorganized so that the economy was governed through a series of industrial associations for the various sectors of industry, to which every company and enterprise had to belong, and which were subject to the state planning apparatus. When the shopkeepers in one of the southern German towns tried to manage themselves as a corporation on the Italian model, the result was inflation. The Gestapo stepped in, the experiment was closed down and its members interned in Dachau. However, the Nazis were determined to give their support to private industry and these industrial organisations were led by senior managers of private firms, even when most of the companies in a particular sector were owned by the state.

Something similar to the Nazi and Fascist economic systems has arisen in recent years through corporate sponsorship of political parties, particularly in America. So important have donations from private industry become, that the parties ignore the wishes of their constituents once in power to pass legislation benefiting their corporate donors. The result of this is that public confidence in Congress is low, at between 19 and 25 per cent, and a study by Harvard University concluded that America was no longer a functioning democracy so much as a corporate oligarchy.

The same situation prevails in Britain, where something like 75 per cent of MPs are millionaires, either company directors or members of senior management. New Labour was particularly notorious for its corporate connections, which had already caused scandals under John Major’s administration. Tony Blair and his cronies appointed the staff and heads of various government bodies from donors to the Labour party, giving them posts on the same bodies that were supposed to be regulating the industries their companies served. The result of this was that the Labour government ignored the wishes of the British public to pass legislation which, like Congress in America, benefited their donors. See George Monbiot’s book, Captive State.

It’s time this quasi-Fascist system of corporate government was brought to an end, and British and American governments ruled for the people that elected them, not the companies that bought their politicians.

Adolf Hitler on Industry and Nationalisation

December 21, 2018

I’ve put up several articles making the point that the Nazis weren’t socialists, and that the promoted monopoly capitalism. However, Hitler did not want civil servants or Nazi apparatchiks to have interests in business because of the dangers of corruption. His example was the Danube Shipping Company, a private German firm which massively profited by having sitting members of the Weimar government on its board, who then awarded the company very large subsidies.

Some of Hitler’s views on the question of private industry versus nationalization can be found in his after dinner conversations, recorded by Martin Bormann, Hitler’s Table Talk (Oxford: OUP 1988). Hitler said

I absolutely insist on protecting private property.
It is natural and salutary that the individual should be inspired by the wish to devote a part of the income from his work to building up and expanding a family estate. Suppose the estate consists of a factory. I regard it as axiomatic, in the ordinary way, that this factory will be better run by one of the members of the family than it would be by a State functionary-providing, of course, that the family remains healthy. In this sense, we must encourage private initiative.

On the other hand, I’m distinctly opposed to property in the form of anonymous participation in societies of shareholders. This sort of shareholder produces no other effort but that of investing his money, and thus he becomes the chief beneficiary of other people’s effort: the workers’ zest for their job, the ideas of an engineer of genius, the skill of an experienced administrator. It’s enough for this capitalist to entrust his money to a few well-run firms, and he’s betting on a certainty. The dividends he draws are so high that they can compensate for any loss that one of these firms might perhaps cause him. I have therefore always been opposed to incomes that are purely speculative and entail no effort on the part of those who live on them.

Such gains belong by right to the nation, which alone can draw a legitimate profit from them. In this way, at least, those who create these profits – the engineers and the workers – are entitled to be the beneficiaries. In my view, joint-stock companies should pass in their entirety under the control of the State. There’s nothing to prevent the latter from replacing these shares that bring in a variable interest by debentures which it guarantees and which produce a fixed interest, in a manner useful to private people who wish to invest their savings. I see no better method of suppressing the immoral form of income, based only on speculation, of which England to-day provides the most perfect example. (pp. 362-3).

He also believed that the power industry should be nationalized in some way.

It’s obvious that the power monopoly must be vested in the State. That does not exclude the participation of private capital. The State would offer all its securities for investment by the public, which would thus be interested in the exploitation of the monopoly, or, rather, in the favourable progress of State business. The fact is that, when State affairs are not prospering, the holders of certificates can put a cross through their unearned incomes-for the various affairs in which the State is interested cannot be dissociated. The advantage of our formula would be to enable everyone to feel closely linked with State affairs. To-day, unfortunately, most people are not clear-sighted enough to realise the closeness of this link.

What is true of the power industry is equally true of all the essential primary materials – that is to say, it applies also to petroleum, coal, steel and water-power. Capitalist interests will have to be excluded from this sort of business. We do not, of course, contemplate preventing a private person from using the energy of the tiny stream that powers his small works.

In fact, Hitler was resolutely against profit-sharing and anything remotely like worker’s control in industry. He despised socialism, which he reviled as ‘Marxism’ and the trade unions. They were banned, and their members sent to the concentration camps. In their place was the Labour Front and its councils of trustees in factories, which were there to mediate between the workers and management, and to enforce the authority of the latter.

But Hitler is absolutely right about the problems of joint-stock firms. The Korean economist, Ha-Joon Chang, in his book 23 Things They Don’t Tell You About Capitalism, states that one of the problems with shareholder capitalism is that if the firm appears to be in trouble, the shareholders withdraw their money to invest in a better prospect somewhere else. This exacerbates the firm’s troubles. Those enterprises, which are either wholly or partly nationalized, or which have a degree of worker’s control, tend to be much more resilient as the state and the workforce have a greater interest in maintaining it as a ongoing concern.

As for the nationalization of the power and related industries, that was so obviously needed in Britain that when the Labour party nationalized the electricity and coal industries in late forties there was little opposition from the Tories and the Liberals.

Now Hitler’s own ideas on nationalization are very peculiar. He seems to wish to retain some aspects of capitalism after nationalization by allowing people to buy bonds in them. Or something like that. But when Margaret Thatcher was busy privatizing the utilities and everything else she was able to get her grubby mitts on, one of the leaders of the Labour party at the time also suggested that the party should instead look at schemes of issuing bonds in nationalized industries. This would also combine the perceived advantages of privatization with those of nationalization.

This scheme was suggested at the time when Maggie’s privatization programme was popular, or pretended to be. Her aim was to spread corporate ownership far beyond its traditional narrow base in the middle class, hence her reforms of the stockbroking industry. Britain was to become a capitalist nation of small investors.

This dream came to an end over a decade ago. By the early years of this century the Financial Times reported that the ordinary people at whom Thatcher had aimed her share-ownership scheme, had sold theirs and that all, or almost all of them, were once more back in the hands of major investors. In other words, the traditional, property-owning middle class.

Hitler was a monstrous tyrant, whose party plunged Europe into a war which killed forty millions, and who murdered 6 million Jews and 5 1/2 million non-Jews in the hell of the concentration camps. And it shows how far wrong Thatcherite orthodox economic theory is when even he talks sense about some subjects.

Privatisation has failed. It has failed to provide the investment needed to maintain and expand the utilities and other industries, and instead any profit these firms make now go out of the country to their foreign owners. It’s about time this was ended, and the firms renationalized, with their workers given seats on the board and a role in management.

Hitler Against Politicians and Nazis Functionaries on Management Boards

December 15, 2018

Hitler’s Table Talk (Oxford: OUP 1988) is also interesting for what it reveals about the Fuhrer’s attitude towards politicians sitting on the boards of private companies. He was against it, because he believed that it merely allowed the companies to enrich themselves corruptly through getting their pet politicos to give them government subsidies. Hitler said

No servant of the state must be a shareholder. No Gauleiter, no Member of the Reichstag and, in general, no Party leader must be a member of any board of directors, regardless of whether the appointment is honorary or paid; for even if the individual were actuated solely by the interests of the State and even if he possessed the integrity of Cato himself, the public would lose faith in him. In capitalist states it is essential for a great enterprise to have in its employ men of influence – hence the large numbers of members of Parliament and high official who figure on boards of directors. The amounts disbursed to these personages in directors’ fees, share of profits and so on is more than recouped by one or two fat government contracts which they are in a position to secure for their company.

The Danube Shipping Company, for example, paid out eighty thousand Kronen a year to each of the dozen Members of Parliament, who sat on its board of directors. But it recouped itself many times over for this expenditure through the influence these men were able to exercise in its favour. All the competition was eliminated and a virtual monopoly was gained – all to the detriment of the state, or, in other words, of the community. It must therefore be accepted as an absolute principle that no Member of the Reichstag, no civil servant and no party leader must be in any way connected with business of this nature. (pp. 594-5).

When an official retires from state service, he should not be allowed to enter a line of business with which he previously had official dealings. For one may be quite sure that any firm would be gladly employ him – not on account of the services he could render, but for the connections which he undoubtedly would have. If this were not so, then directors would not earn fees amounting to thirty-six marks a year-and more. Further, it is a scandal that men of this kind should usurp the positions to which others have a prior claim, namely, those who have passed their whole lives in the service of an enterprise and have risen, step by step, to the top. This one characteristic is alone sufficient to demonstrate their immorality of the whole system. (pp. 595-6)

Hitler had discussed the case of the Danube Shipping Company and it corrupt connections to the German parliament on a previous occasion. He said

The problem of monopolies handed over to capitalist interests interested me even in my boyhood. I’d been struck by the example of the Danube Shipping Company, which received an annual subsidy of four millions, a quarter of which was once shared out amongst its twelve directors. Each of the big parties was represented in this august college by at least two of its members, each of them pocketing about eighty million kronen yearly! One may feel sure that these mandarins saw to it that the comrades voted punctually for the renewal of the subsidy! But the Socialists were acquiring more and more importance, and it happened that none of their lot was on the board. That’s why the scandal broke. The Company was attacked in the Parliament and in the press. Threatened with being deprived of the subsidy, it replied by abolishing the passenger-service. And since the politicians on the board had already taken care that no railway should be built along the Danube, the riverside populations were the chief victims of these arbitrary measures. A solution of the conflict was found quite rapidly-and you can imagine which! Quite simply, the number of members of the board was increased to fourteen, and the two new seats were offered to two well-know Socialists-who hastened to accept them.

What makes England so fragile is that her whole economic system is founded on similar principles.

From the moment of our seizure of power, having my own set ideas on the subject, I took the precaution of forbidding every director of a company to be a member of the Reichstag. Since men who have interests in a private company cannot be objective on a great number of questions, I likewise forbade office-holders in the Party to take part in business of a capitalist complexion. The same prohibition applies, by the way, to all servants of the state. I therefore cannot allow an official, whether he belongs to the Army or to the civil administration, to invest his savings in industry, except in companies controlled by the state. (pp. 366-7).

Hitler was a murderous tyrant, and he and his foul regime were responsible for the deaths of 11 1/2 million innocents in the concentration camps – 6 million Jews and 5 1/2 million assorted gentiles. He was responsible for a War that killed 40 million or so. And if he had won the War, he would not only have exterminated the Jews, the Gypsies and the disabled, but also the Slav peoples of eastern Europe, the Poles, Czechs, Slovaks, Russians, Belorussians and Ukrainians.

But in the instance, Hitler is absolutely right, however offensive it is to say it. The corporate system, which has emerged in America and Britain is a menace to politics and society. In America, private companies heavily donate to the main political parties and the campaigns of individual politicians. It’s why Congress is now notorious for not doing what ordinary electors want, but passing legislation that only benefits big business. This has resulted in massive disaffection amongst the American public, only 19 per cent of whom has said in polls they trust the government to work for them. And because Congress no longer expresses the wishes of the people, but the capitalist oligarchy, a study by Harvard University a few years ago concluded that America was no longer a functioning democracy.

And Britain is very much suffering from the same situation. A recent study showed that most politicians in parliament were held directorships in at least one company, and so a significant proportion of them – well over half – were millionaires. During New Labour’s period in office, very many company directors and senior managers were put in position of government, frequently on those bodies that were supposed to be regulating their industries. And this followed the pattern set by John Major’s Tory government, which became mired in a scandal over this sleaze. George Monbiot, who is very definitely not a Nazi, described the situation under New Labour in his book, Captive State. As did Rory Bremner and the Johns Bird and Fortune in their book, You Are Here. Private Eye has also continually reported the close connections between politicians, civil servants and private companies, and the revolving doors between government and industry, particularly regarding defence. And again, this bears out what Hitler said:

What makes England so fragile is that her whole economic system is founded on similar principles.

And you know that when a mass-murderer like Hitler is right, something is very, very seriously wrong. This has got to change, and private enterprise has to be forced out of politics.