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Friday, June 19, 2015

CHAPTER 7. The Hitler Connection: Secrets of the Federal Reserve by Eustace Mullins from archive.org


The Hitler Connection

J. Henry Schroder Banking Company is listed as Number 2 in capitalization
in Capital City62 on the list of the seventeen merchant bankers who make up
the exclusive Accepting Houses Committee in London. Although it is almost
unknown in the United States, it has played a large part in our history. Like
the others on this list, it had first to be approved by the Bank of England.
And, like the Warburg family, the von Schroders began their banking
operations in Hamburg, Germany. At the turn of the century, in 1900, Baron
Bruno von Schroder established the London branch of the firm. He was soon
joined by Frank Cyril Tiarks, in 1902. Tiarks married Emma Franziska of
Hamburg, and was a director of the Bank of England from 1912 to 1945.

During World War I, J. Henry Schroder Banking Company played an
important role behind the scenes. No historian has a reasonable explanation
of how World War I started. Archduke Ferdinand was assassinated at
Sarajevo by Gavril Princeps, Austria demanded an apology from Serbia, and
Serbia sent the note of apology. Despite this, Austria declared war, and soon
the other nations of Europe joined the fray. Once the war had gotten started,
it was found that it wasn't easy to keep it going. The principal problem was
that Germany was desperately short of food and coal, and without Germany,
the war could not go on. John Hamill in The Strange Career of Mr.

Hoover63 explains how the problem was solved.* He quotes from
Nordeutsche Allgemeine Zeitung, March 4, 1915, "Justice, however,
demands that publicity should be given to the preeminent part taken by the
German authorities in Belgium in the solution of this problem. The initiative
came from them and it was only due to their continuous relations with the
American Relief Committee that the provisioning question was solved."
Hamill points out "That is what the Belgian Relief Committee was organized
for—to keep Germany in food."

The Belgian Relief Commission was organized by Emile Francqui, director
of a large Belgian bank, Societe Generale, and a London mining

62 McRae and Cairncross, Capital City, Eyre Methuen, London, 1963

63 John Hamill, The Strange Career of Mr. Hoover, William Faro, New
York, 1931

* Copies of Hamill's book were systematically located and destroyed by
government agents, because it was published on the eve of President
Hoover's re-election campaign.


promoter, an American named Herbert Hoover, who had been associated with

Francqui in a number of scandals which had become celebrated court cases,

notably the Kaiping Coal Company scandal in China, said to have set off the

Boxer Rebellion, which had as its goal the expulsion of all foreign

businessmen from China. Hoover had been barred from dealing on the

London Stock Exchange because of one judgement against him, and his

associate, Stanley Rowe, had been sent to prison for ten years. With this

background, Hoover was called an ideal choice for a career in humanitarian


Although his name is unknown in the United States, Emile Francqui was the
guiding spirit behind Herbert Hoover's rise to fortune. Hamill (on page 156)
identifies Francqui as the director of many atrocities committed against
natives in the Congo. "For every cartridge they spent, they had to bring in a
man's hand". Francqui's frightful record may have been the source for the
charge later leveled against German soldiers in Belgium, that they chopped
off the hands of women and children, a claim which proved to be groundless.
Hamill also says that Francqui "tricked the Americans out of the Hankow-
Canton railroad concession in China in 1901, and at the same time had
'stood by' in case Hoover needed any further help in the 'taking' of the
Kaiping coal mines. This is the humanitarian who had sole charge of the
distribution of the Belgian 'relief during the World War, for which Hoover
did the buying and shipping. Francqui was a director with Hoover, in the
Chinese Engineering and Mining Company (the Kaiping mines), through
which Hoover transported 200,000 Chinese slave workers to the Congo to
work Francqui's copper mines."

Hamill says on page 311 that "Francqui opened the offices of the Belgian
Relief in his bank, Societe Generale, as a one-man show, with a letter of
permission from the German Governor General von der Goltz dated October
16, 1914.

The New York Herald Tribune of February 18, 1930, quoted by
Congressman Louis McFadden in the House on February 26, 1930, said,
"One of Belgium's two directors on the Bank for International Settlements
will be Emile Francqui of the Societe Generale, a member of both the Young
and Dawes Plan Committees. The board of directors of the international
bank will have no more colorful character than Emile Francqui, former
Minister of Finance, veteran of the Congo and China ... he is rated as the
richest man in Belgium, and among the twelve richest men in Europe."

Despite his prominence, The New York Times Index mentions Francqui only
a few times during two decades before his death. On October 3, 1931, The
New York Times quoted Le Peuple of Brussels that Francqui would visit the
United States. "As a friend of President Hoover, Monsieur Francqui will not
fail to pay a visit to the President."

On October 30, 1931, The New York Times reported this visit with the headline,

"Hoover-Francqui Talk was Unofficial". "It was stated that Mr. Francqui

spent Tuesday night as a personal guest of the President, and that they talked

of world financial problems in general, strictly unofficial. Mr. Francqui was

an associate of President Hoover during the latters ministrations in Belgium

during the war. Their visit had no official significance. Mr. Francqui is a

private citizen and not engaged in any official mission."

No reference is made to the Hoover-Francqui business associations which
were the subject of huge lawsuits in London. The Francqui visit probably
involved Hoover's Moratorium on German War Debts, which stunned the
financial world. On December 15, 1931, Chairman McFadden informed the
House of a dispatch in the Public Ledger of Philadelphia, October 24, 1931,
"GERMAN REVEALS HOOVER'S SECRET. The American President was
in intimate negotiations with the German government regarding a year's
debt holiday as early as December, 1930." McFadden continued, "Behind the
Hoover announcement there were many months of hurried and furtive
preparations both in Germany and in Wall Street offices of German bankers.
Germany, like a sponge, had to be saturated with American money. Mr.
Hoover himself had to be elected, because this scheme began before he
became President. If the German international bankers of Wall Street—that
is Kuhn Loeb Company, J. & W. Seligman, Paul Warburg, J. Henry
Schroder—and their satellites had not had this job waiting to be done,
Herbert Hoover would never have been elected President of the United
States. The election of Mr. Hoover to the Presidency was through the
influence of the Warburg Brothers, directors of the great bank of Kuhn Loeb
Company, who carried the cost of his election. In exchange for this
collaboration Mr. Hoover promised to impose the moratorium of German
debts. Hoover sought to exempt Kreuger's loan to Germany of $125 million
from the operation of the Hoover Moratorium. The nature of Kreuger's
swindle was known here in January when he visited his friend, Mr. Hoover,
in the White House."

Not only did Hoover entertain Francqui in the White House, but also Ivar
Kreuger, the most famous swindler of the twentieth century.

When Francqui died on November 13, 1935, The New York Times
memorialized him as "the copper king of the Congo . . . Mr. Francqui, last
year having gained dictatorial powers over the belga, maintained it on the
gold standard during a crisis. In 1891 he led an expedition into the Congo
and gained it for King Leopold. A man of great wealth, rated among the
twelve richest men in Europe, he secured enormous copper deposits. He was
Minister of State in 1926 and Minister of Finance in 1934. It was his pride
that he never accepted a centime of remuneration for his services to the
government. While consul general at Shanghai, he secured valuable
concessions, notably the Kaiping coal mines and the

railway concession for the Tientsin Railroad. He was governor of the Societe
Generale de Belgique, Lloyd Royal Beige, and regent of La Banque Nationale

de Belgique."

The Times does not mention Francqui's business partnerships with Hoover.
Like Francqui, Hoover also refused remuneration for "government service",
and as Secretary of Commerce and as President of the United States, he
turned his salary back to the government.

On December 13, 1932, Chairman McFadden introduced a resolution of
impeachment against President Hoover for high crimes and misdemeanors,
which covers many pages, including violation of contracts, unlawful
dissipation of the financial resources of the United States, and his
appointment of Eugene Meyer to the Federal Reserve Board. The resolution
was tabled and never acted upon by the House.

In criticizing Hoover's Moratorium of German War Debts, McFadden had
referred to Hoover's "German" backers. Although all of the principals of
"the London Connection" did originate in Germany, most of them in
Frankfurt, at the time they sponsored Hoover's candidacy for the Presidency
of the United States, they were operating from London, as Hoover himself
had done for most of his career.

Also, the Hoover Moratorium was not intended to "help" Germany, as
Hoover had never been "pro-German". The Moratorium on Germany's war
debts was necessary so that Germany would have funds for rearming. In
1931, the truly forward-looking diplomats were anticipating the Second
World War, and there could be no war without an "aggressor".

Hoover had also carried out a number of mining promotions in various parts
of the world as a secret agent for the Rothschilds, and had been rewarded
with a directorship in one of the principal Rothschild enterprises, the Rio
Tinto Mines in Spain and Bolivia. Francqui and Hoover threw themselves
into the seemingly impossible task of provisioning Germany during the First
World War. Their success was noted in Nordeutsche Allgemeine Zeitung,
March 13, 1915, which noted that large quantities of food were now arriving
from Belgium by rail. Schmoller's Yearbook for Legislation, Administration
and Political Economy for 1916, shows that one billion pounds of meat, one
and a half billion pounds of potatoes, one and a half billion pounds of bread,
and one hundred twenty-one millions pounds of butter had been shipped
from Belgium to Germany in that year. A patriotic British woman who had
operated a small hospital in Belgium for several years, Edith Cavell, wrote to
the Nursing Mirror in London, April 15, 1915, complaining that the "Belgian
Relief supplies were being shipped to Germany to feed the German army.
The Germans considered Miss Cavell to be of no importance, and paid no
attention to her, but the British Intelligence Service in London was appalled

by Miss Cavell's discovery, and demanded that the Germans arrest her as a spy.

Sir William Wiseman, head of British Intelligence, and partner of Kuhn

Loeb Company, feared that the continuance of the war was at stake, and

secretly notified the Germans that Miss Cavell must be executed. The

Germans reluctantly arrested her and charged her with aiding prisoners of

war to escape. The usual penalty for this offense was three months
imprisonment, but the Germans bowed to Sir William Wiseman's demands,
and shot Edith Cavell, thus creating one of the principal martyrs of the First

World War.

With Edith Cavell out of the way, the "Belgian Relief" operation continued,
although in 1916, German emissaries again approached London officials
with the information that they did not believe Germany could continue
military operations, not only because of food shortages, but because of
financial problems. More "emergency relief was sent, and Germany
continued in the war until November, 1918. Two of Hoover's principal
assistants were a former lumber shipping clerk from the West Coast,
Prentiss Gray, and Julius H. Barnes, a grain salesman from Duluth. Both
men became partners in J. Henry Schroder Banking Corporation in New
York after the war, and amassed large fortunes, principally in grain and

With the entry of the United States into the war, Barnes and Gray were given
important posts in the newly created U.S. Food Administration, which also
was placed under Herbert Hoover's direction. Barnes became President of
the Grain Corporation of the U.S. Food Administration from 1917 to 1918,
and Gray was chief of Marine Transportation. Another J. Henry Schroder
partner, G. A. Zabriskie, was named head of the U.S. Sugar Equalization
Board. Thus the London Connection controlled all food in the United States
through its grain and sugar "Czars" during the First World War. Despite
many complaints of corruption and scandal in the U.S. Food Administration,
no one was ever indicted. After the war, the partners of J. Henry Schroder
Company found that they now owned most of Cuba's sugar industry. One
partner, M.E. Rionda, was president of Cuba Cane Corporation, and
director of Manati Sugar Company, American British and Continental
Corporation, and other firms. Baron Bruno von Schroder, senior partner of
the firm, was a director of North British and Mercantile Insurance
Company. His father, Baron Rudolph von Schroder of Hamburg, was a
director of Sao Paulo Coffee Ltd., one of the largest Brazilian coffee
companies, with F.C. Tiarks, also of the Schroder firm.*

* The New York Times noted on October 11, 1923: "Frank C. Tiarks,
Governor of the Bank of England, will spend two weeks here to set up the
opening of the banking house branch of J. Henry Schroder of London."

After the war, Zabriskie, who had been sugar Czar of the United States by

presiding over the U.S. Sugar Equalization Board, became the president of
several of the largest baking corporations in the United States: Empire

Biscuit, Southern Baking Corporation, Columbia Baking, and other firms.

As his principal assistant in the U.S. Food Administration, Hoover chose
Lewis Lichtenstein Strauss, who was soon to become a partner in Kuhn Loeb
Company, marrying the daughter of Jerome Hanauer of Kuhn Loeb.
Throughout his distinguished humanitarian service with the Belgian Relief
Commission, the U.S. Food Administration, and, after the war, the American
Relief Administration, Hoover's closest associate was one Edgar Rickard,
born in Pontgibaud, France. In Who's Who, he states that he was "World
War administrative assistant to Herbert Hoover in all war and post-war
organizations including the Commission For Relief in Belgium. He also
served on the U.S. Food Administration from 1914-1924." He remained one
of Hoover's closest friends, and usually the Rickards and Hoovers took their
vacations together. After Hoover became Secretary of Commerce under
Coolidge, Hamill tells us that Hoover awarded his friend the Hazeltine Radio
patents, which paid him one million dollars a year in royalties.

In 1928, "the London Connection" decided to run Herbert Hoover for
president of the United States. There was only one problem; although
Herbert Hoover had been born in the United States, and was thus eligible for
the office of the presidency, according to the Constitution, he had never had
a business address or a home address in the United States, as he had gone
abroad just after completing college at Stanford. The result was that during
his campaign for the presidency, Herbert Hoover listed as his American
address Suite 2000, 42 Broadway, New York, which was the office of Edgar
Rickard. Suite 2000 was also shared by the grain tycoon and partner of J.
Henry Schroder Banking Corporation, Julius H. Barnes.

After Herbert Hoover was elected president of the United States, he insisted
on appointing one of the old London crowd, Eugene Meyer, as Governor of
the Federal Reserve Board. Meyer's father had been one of the partners of
Lazard Freres of Paris, and Lazard Brothers of London. Meyer, with
Baruch, had been one of the most powerful men in the United States during
World War I, a member of the famous Triumvirate which exercised
unequalled power; Meyer as Chairman of the War Finance Corporation,
Bernard Baruch as Chairman of the War Industries Board, and Paul
Warburg as Governor of the Federal Reserve System.

A longtime critic of Eugene Meyer, Chairman Louis McFadden of the House
Banking and Currency Committee, was quoted in The New York Times,
December 17, 1930, as having made a speech on the floor of the House
attacking Hoover's appointment of Meyer, and charging that "He

represents the Rothschild interest and is liaison officer between the French
Government and J.P. Morgan." On December 18, The Times reported that
"Herbert Hoover is deeply concerned" and that McFadden's speech was "an

unfortunate occurrence." On December 20, The Times commented on the

editorial page, under the headline, "McFadden Again", "The speech ought to

insure the Senate ratification of Mr. Meyer as head of the Federal Reserve.

The speech was incoherent, as Mr. McFadden's speeches usually are." As

The Times predicted, Meyer was duly approved by the Senate.

Not content with having a friend in the White House, J. Henry Schroder
Corporation was soon embarked on further international adventures,
nothing less than a plan to set up World War II. This was to be done by
providing, at a crucial juncture, the financing for Adolf Hitler's assumption
of power in Germany. Although any number of magnates have been given
credit for the financing of Hitler, including Fritz Thyssen, Henry Ford, and
J.P. Morgan, they, as well as others, did provide millions of dollars for his
political campaigns during the 1920s, just as they did for others who also had
a chance of winning, but who disappeared and were never heard from again.
In December of 1932, it seemed inevitable to many observers of the German
scene that Hitler was also ready for a toboggan slide into oblivion. Despite
the fact that he had done well in national campaigns, he had spent all the
money from his usual sources and now faced heavy debts. In his book
Aggression, Otto Lehmann-Russbeldt tells us that "Hitler was invited to a
meeting at the Schroder Bank in Berlin on January 4, 1933. The leading
industrialists and bankers of Germany tided Hitler over his financial
difficulties and enabled him to meet the enormous debt he had incurred in
connection with the maintenance of his private army. In return, he promised
to break the power of the trade unions. On May 2, 1933, he fulfilled his

Present at the January 4, 1933 meeting were the Dulles brothers, John Foster
Dulles and Allen W. Dulles of the New York law firm, Sullivan and
Cromwell, which represented the Schroder Bank The Dulles brothers often
turned up at important meetings. They had represented the United States at
the Paris Peace Conference (1919); John Foster Dulles would die in harness
as Eisenhower's Secretary of State, while Allen Dulles headed the Central
Intelligence Agency for many years. Their apologists have seldom attempted
to defend the Dulles brothers appearance at the meeting which installed
Hitler as the Chancellor of Germany, preferring to pretend that it never
happened. Obliquely, one biographer Leonard Mosley, bypasses it in Dulles
when he states,

64 Otto Lehmann-Russbeldt, Aggression, Hutchinson & Co., Ltd., London,
1934, p. 44

"Both brothers had spent large amounts of time in Germany, where Sullivan and

Cromwell had

considerable interest during the early 1930' s, having represented several
provincial governments,

some large industrial combines, a number of big American companies with
interests in the Reich,

and some rich individuals."65

Allen Dulles later became a director of J. Henry Schroder Company. Neither
he nor J. Henry Schroder were to be suspected of being pro-Nazi or pro-
Hitler; the inescapable fact was that if Hitler did not become Chancellor of
Germany, there was little likelihood of getting a Second World War going,
the war which would double their profits.*

The Great Soviet Encyclopaedia states "The banking house Schroder Bros,
(it was Hitler's banker) was established in 1846; its partners today are the
barons von Schroeder, related to branches in the United States and
England. "66**

The financial editor of "The Daily Herald" of London wrote on Sept. 30,
1933 of "Mr. Norman's decision to give the Nazis the backing of the Bank (of
England.)" John Hargrave, in his biography of Montagu Norman says,

"It is quite certain that Norman did all he could to assist Hitlerism to gain
and maintain political

power, operating on the financial plane from his stronghold in Threadneedle
Street." [i.e. Bank

of England.-Ed.]

Baron Wilhelm de Ropp, a journalist whose closest friend was Major F.W.
Winterbotham, chief

of Air Intelligence of the British Secret Service, brought the
Nazi philosopher, Alfred Rosenberg, to London and
introduced him to Lord Hailsham, Secretary for War,
Geoffrey Dawson, editor of The Times, and Norman, Governor
of the Bank of England. After talking with Norman, Rosenberg
met with the representative of the Schroder Bank of London.
The managing director of the Schroder Bank, F.C. Tiarks, was
also a director of the Bank of England. Hargrave says (p. 217),
"Early in 1934 a select group of City financiers gathered in
Norman's room behind the

windowless walls, Sir Robert Kindersley, partner of Lazard Brothers, Charles
Hambro, F.C.

Tiarks, Sir Josiah Stamp, (also a director of the Bank of England). Governor
Norman spoke of

the political situation in Europe. A new power had established itself, a great

65 Leonard Mosley, Dulles, Dial Publishing Co., New York 1978, p. 88

* Ezra Pound, in an April 18, 1943 broadcast over Radio Rome stated, ". .
.and men in America, not content with this war are already aiming at the
next one. The time to object is now."

66 The Great Soviet Encyclopaedia, Macmillan, London, 1973, v.2, p. 620

** The New York Times noted on October 11, 1944: "Senator Claude Pepper
criticized John Foster Dulles, Gov. Dewey's foreign relations advisor for his
connection with the law firm of Sullivan and Cromwell and having aided
Hitler financially in 1933. Pepper described the January 4, 1933 meeting of
Franz von Papen and Hitler in Baron Schroder's home in Cologne, and from
that time on the Nazis were able to continue their march to power."

force', namely, Nazi Germany. Norman advised his co-workers to include

Hitler in their plans

for financing Europe. There was no opposition."

In Wall Street and the Rise of Hitler, Antony C. Sutton writes "The Nazi
Baron Kurt von Schroeder acted as the conduit for I.T.T. money funneled to
Heinrich Himmler's S.S. organization in 1944, while World War II was in
progress, and the United States was at war with Germany. "67 Kurt von
Schroeder, born in 1889, was partner in the Cologne Bankhaus, J.H. Stein &
Co., which had been founded in 1788. After the Nazis gained power in 1933,
Schroeder was appointed the German representative at the Bank of
International Settlements. The Kilgore Committee in 1940 stated that
Schroeder's influence with the Hitler Administration was so great that he
had Pierre Laval appointed head of the French Government during the Nazi
Occupation. The Kilgore Committee listed more than a dozen important
titles held by Kurt von Schroeder in the 1940's, including President of
Deutsche Reichsbahn, Reich Board of Economic Affairs, SS Senior Group
Leader, Council of Reich Post Office, Deutsche Reichsbank and other leading
banks and industrial groups. Schroeder served on the board of all
International Telephone and Telegraph subsidiaries in Germany.

In 1938, the London Schroder Bank became the German financial agent in Great
Britain. The New York branch of Schroder had been merged in 1936 with
the Rockefellers, as Schroder, Rockefeller, Inc. at 48 Wall Street. Carlton P.
Fuller of Schroder was president of this firm, and Avery Rockefeller was
vice-president. He had been a behind the scenes partner of J. Henry
Schroder for years, and had set up the construction firm of Bechtel
Corporation, whose employees (on leave) now play a leading role in the
Reagan Administration, as Secretary of Defense and Secretary of State.

Ladislas Farago, in The Game of the Foxes,68 reported that Baron William
de Ropp, a double agent, had penetrated the highest echelons in pre-World
War II days, and Hitler relied upon de Ropp as his confidential consultant
about British affairs. It was de Ropp's advice which Hitler followed when he
refused to invade England.

Victor Perlo writes, in The Empire of High Finance:

"The Hitler government made the London Schroder Bank their financial
agent in Britain and

America. Hitler's personal banking account was with J.M. Stein Bankhaus,
the German subsidiary

of the Schroder Bank. F.C. Tiarks of the British J. Henry Schroder Company

Press, Seal Beach, California, 1976, p. 79

68 Ladislas Farago, The Game of the Foxes, 1973

was a member of the Anglo-German Fellowship with two other partners as

members, and a

corporate membership."69

The story goes much further than Perlo suspects. J. Henry Schroder WAS
the Anglo-German Fellowship, the English equivalent of the America First
movement, and also attracting patriots who did not wish to see their nation
involved in a needless war with Germany. During the 1930's, until the
outbreak of World War II, the Schroders poured money into the Anglo-
German Fellowship, with the result that Hitler was convinced he had a large
pro-German fifth column in England composed of many prominent
politicians and financiers. The two divergent political groups in the 1930 's in
England were the War Party, led by Winston Churchill, who furiously
demanded that England go to war against Germany, and the Appeasement
Party, led by Neville Chamberlain. After Munich, Hitler believed the
Chamberlain group to be the dominant party in England, and Churchill a

minor rabble-rouser. Because of his own financial backers, the Schroders, were
sponsoring the Appeasement Party, Hitler believed there would be no war.
He did not suspect that the backers of the Appeasement Party, now that
Chamberlain had served his purpose in duping Hitler, would cast
Chamberlain aside and make Churchill the Prime Minister. It was not only
Chamberlain, but also Hitler, who came away from Munich believing that it
would be "Peace in our time."

The success of the Schroders in duping Hitler into this belief explains several
of the most puzzling questions of World War II. Why did Hitler allow the
British Army to decamp from Dunkirk and return home, when he could have
wiped them out? Against the frantic advice of his generals, who wished to
deliver the coup de grace to the English Army, Hitler held back because he
did not wish to alienate his supposed vast following in England. For the same
reason, he refused to invade England during a period when he had military
superiority, believing that it would not be necessary, as the Anglo-German
Fellowship group was ready to make peace with him. The Rudolf Hess flight
to England was an attempt to confirm that the Schroder group was ready to
make peace and form a common bond against the Soviets. Rudolf Hess
continues to languish in prison today, many years after the war, because he
would, if released,

69 Victor Perlo, The Empire of High Finance, International Publishers, 1957,

p. 177

testify that he had gone to England to contact the members of the Anglo-
German Fellowship, that is, the Schroder group, about ending the war.*

If anyone supposes this is all ancient history, with no application to the
present political scene, we introduce the name of John Lowery Simpson of
Sacramento, California. Although he appears for the first time in Who's
Who in America for 1952, Mr. Simpson states that he served under Herbert
Hoover on the Commission for Relief in Belgium from 1915 to 1917; U.S.
Food Administration, 1917 to 1918, American Relief Commission, 1919, and
with P.N. Gray Company, Vienna, 1919 to 1921. Gray was the Chief of
Maritime Transportation for the U.S. Food Administration, which enabled
him to set up his own shipping company after the war. Like other Hoover
humanitarians, Simpson also joined the J. Henry Schroder Banking
Company (Adolf Hitler's personal bankers) and the J. Henry Schroder Trust
Company. He also became a partner of Schroder-Rockefeller Company when
that investment trust backed a construction company which became the
world's largest, the firm of Bechtel Incorporated. Simpson was chairman of
the finance committee of Bechtel Company, Bechtel International, and
Canadian Bechtel. Simpson states he was consultant to the Bechtel-McCone
interests in war production during World War II. He served on the Allied

Control Commission in Italy 1943-44. He married Margaret Mandell, of the
merchant family for whom Col. Edward Mandell House was named, and he
backed a California personality, first for Governor, then for President. As a
result, Simpson and J. Henry Schroder Company now have serving them as
Secretary of Defense, former Bechtel employee Caspar Weinberger. As
Secretary of State they have serving them George Pratt Schultz, also a
Bechtel employee, who happens to be a Standard Oil heir, reaffirming the
Schroder-Rockefeller company ties. Thus the "conservative" Reagan
Administration has a Secretary of Defense from Schroder Company, a
Secretary of State from Schroder-Rockefeller, and a vice president whose
father was senior partner of Brown Brothers Harriman.

* The following accounts are from The New York Times: October 21, 1945,
"A broadcast over the Luxembourg radio said tonight that Baron Kurt von
Schroder, former banker who helped finance the rise of the Nazi party, had
been recognized in an American prison camp and arrested." November 1,
1945, "British Army Headquarters: Baron Kurt von Schroder, 55 year old
banker and friend of Heinrich Himmler is being held in Dusseldorf pending
decision on his indictment as a war criminal, the Military Government
official announcement said today." February 29, 1948, "An immediate
investigation was demanded yesterday by the Society for the Prevention of
World War III as to why the German Nazi banker, Kurt von Schroder, was
not tried as a war criminal by an allied military tribunal. Noting that von
Schroder was sentenced last November to three months imprisonment and
fined 1500 Reichsmarks by a German denazification court in Bielefeld, in the
British Zone, C. Monteith Gilpin, secretary for the society said the question
should be asked why von Schroder was allowed to escape allied justice, and
why our own officials have not demanded that von Schroder be tried by an
Allied military tribunal. 'Von Schroder is as guilty as Hitler or Goering.'"

The Heritage Foundation has also been an important factor in the policy-
making of the Reagan Administration. Now we find that the Heritage
Foundation is part of the Tavistock Institute network, directed by British
Intelligence. The financial decisions are still made at the Bank of England,
and who is head of the Bank of England? Sir Gordon Richardson, chairman
of J. Henry Schroder Co. of London and New York from 1962 to 1972, when
he became Governor of the Bank of England. The "London Connection" has
never been more firmly in the saddle of the United States Government.

On July 3, 1983, The New York Times announced that Gordon Richardson,
Governor of the Bank of England for the past ten years, had been replaced
by Robert Leigh-Pemberton, Chairman of the National Westminster Bank.
The list of directors of National Westminster Bank reads like a Who's Who
of the British ruling class. They include the Chairman, Lord Aldenham, who
is also Chairman of Antony Gibbs & Son, merchant bankers, one of the

seventeen privileged firms chartered by the Bank of England; Sir Walter Barrie,
Chairman of the British Broadcasting System; F.E. Harmer, Governor of the
London School of Economics, the training school for the international
bankers, and chairman of New Zealand Shipping Company; Sir E.C.
Mieville, private secretary to the King of England 1937-45; Marquess of
Salisbury, Lord Cecil, Lord Privy Seal (the Cecils have been considered one
of England's three ruling families since the Middle Ages); Lord Leathers,
Baron of Purfleet, Minister of War Transport 1941-45, chairman of William
Cory group of companies; Sir W.H. Coates and W.J. Worboys of Imperial
Chemical Industries (the English DuPont); Earl of Dudley, chairman British
Iron & Steel, Sir W. Benton Jones, chairman United Steel and many other
steel companies; Sir G.E. Schuster, Bank of New Zealand; East India Coal
Company; A. d'A. Willis, Ashanti Goldfields and many banks, tea companies
and other firms; V.W. Yorke, chairman of Mexican Railways Ltd.

Richardson, former chairman of Schroders with a New York subsidiary
holding Federal Reserve Bank of New York stock, was replaced by the
chairman of National Westminster, with a subsidiary in New York holding
Federal Reserve Bank of New York stock. Robert Leigh Pemberton, a
director of Equitable Life Assurance Society (J.P. Morgan), married the
daughter of the Marchioness of Exeter, (the Cecil Burghley family). Thereby,
the control of the London Connection remains constantly in effect.

The list of the present directors of J. Henry Schroder Bank and Trust shows
the continuing international influence since the First World War. George A.
Braga is also director of Czarnikow-Rionda Company, vice-president of
Francisco Sugar Company, president of Manati Sugar Company, and vice-
president of New Tuinicui Sugar Company. His relative,

Rionda B. Braga, is president of Francisco Sugar Company and vice-
president of Manati Sugar Company. The Schroder control of sugar goes
back to the U.S. Food Administration under Herbert Hoover and Lewis L.
Strauss of Kuhn, Loeb, Company during World War I. Schroder's attorneys
are the firm of Sullivan and Cromwell. John Foster Dulles of this firm was

present during the historic agreement to finance Hitler, and was later

Secretary of State in the Eisenhower administration. Alfred Jaretzki, Jr., of

Sullivan and Cromwell is also a director of Manati Sugar Company and

Francisco Sugar Company.

Another director of J. Henry Schroder is Norris Darrell, Jr., born in Berlin,
Germany, partner of Sullivan and Cromwell, and a director of Schroder
Trust Company. Bayless Manning, partner of the Wall Street law firm of
Paul, Weiss, Rifkind and Wharton, is also a director of J. Henry Schroder.
He was president of the Council on Foreign Relations from 1971-1977, and is
editor in chief of the Yale Law Review.

Paul H. Nitze, the prominent "disarmament negotiator" for the United States
government, is a director of Schroder's Inc. He married Phyllis Pratt, of the
Standard Oil fortune, whose father gave the Pratt family mansion as the
building which houses the Council on Foreign Relations.



World War One

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