Alford Kenneth D. Allied Looting in World War II: Thefts of Art, Manuscripts, Stamps and Jewelry in Europe
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Delegation visited the warehouse. The Hungarian government requested an
inventory of all items and demanded that Hungarian experts be allowed to
examine the objects to determine which belonged to Hungarian citizens. Dur-
ing the visit, the Hungarians discovered the valuable Kisfaludi collection of
crockery and four cases of tobacco seeds. For some inexplicable reason the
tobacco seeds were handed over to the Hungarian Ministry of Agricul-
ture, the only property returned by the U.S. Army to the Hungarian govern-
ment.
The Hungarian Restitution Ministry then filed a claim for the Kisfaludi
collection and wrote for permission to inventory the warehouse for additional
Hungarian claims. Mr. Nyardi, the Hungarian secretary of finance, insisted
that all of the train’s contents be returned to his native land for the benefit of
the 100,000 remaining Hungarian Jews. Nyardi was informed that because of
the terms of the Final Act of the Paris Conference, Article 8D, signed by the
United States, England, and France, Hungarian Jews would not receive their
confiscated property and that it would be sold for the benefit of Jewish victims
from Germany and Austria. Despite protests from Hungary, the valuables
from the Budapest train would not be returned.
Based on the previous unsubstantiated telegrams from Mark Clark assert-
ing a lack of proof of ownership, Capt. Howard Mackenzie was notified that
all previous instructions concerning the Hungarian valuables were superseded
by cable number WX-85682. This cable, sent on November 16, 1946, by the
Joint Chiefs of Staff, stated that all valuables in the Property Control Ware-
house with the exception of Jewish items of cultural or religious significance
would be turned over to the IGCR. Again this directive underscored the fact
that national origin or identification of ownership of the property was imprac-
tical. Again, this was simply untrue—still remaining in the warehouse and
unopened were 2,732 boxes, trunks, suitcases, and other containers of valu-
ables. Proof of ownership lay in Capt. Howard A. Mackenzie’s testimony as
a witness for the prosecution during the court- martial proceedings of enlisted
men on September 27, 1946. The testimony follows:
Court- martial members:
Small objects of high value for their size, was there any effort to lock them
in boxes or safes to make them secure from people walking through there?
Captain Mackenzie:
They were kept in the original containers because it was felt if they were
removed the means of identification would be lost. A great deal of material
the ownership of which has never been determined is in there.... Most of the
valuable material is nailed into boxes. Some of the most valuable material is
still in the original suitcases and baskets and trunks in which they were found.
240 Part VI : Looting from Hungary in World War II
But neither the U.S. Army nor the Hungarians had expected the order
of November 16, 1946. This order instructed Mackenzie to open the containers
and sort the items into categories according to type of merchandise and value.
After the sorting process, the determination of individual property would be
impractical and the property could be turned over to the IGCR.
2
The Property Control Officer at Salzburg was delighted by this unex-
pected turn of events. The army had been investigating the rapid disappear-
ance of property from the warehouse and many officers had returned to the
United States with filched property. Additionally, two suitcases of gold dust
had disappeared from a vault containing many valuables from the Hungarian
gold train. In spite of thorough investigations, no progress was made in the
recovery of the gold dust or in identifying the location of property removed
from the warehouse. By mixing up the property and rendering it unidentifiable
as to ownership, the U.S. Army could be held blameless. Without an adequate
inventory list, an owner, even if he or she recovered some items, would have
no recourse in claiming that more property was due him or her.
Thus the unproductive investigations of previous missing property fizzled
out as large quantities of gold, jewelry and watches, silver, and coins were
separated from thousands of hand- woven Persian rugs and thousands of mink,
muskrat, rabbit, lamb, and seal coats. As the army engineers opened, sorted,
and repacked the gold train valuables during the summer and fall of 1947,
additional gold, silver, currency, and diamonds were found hidden in the
clothing of the former owners. Several $500 bills were found sewn into the
cuffs of dress shirts. This method of hiding money and jewels by concentration
camp victims was a common and pitiable practice. Identification of ownership
was fast becoming impossible.
On May 19, 1947, the IGCR team, consisting of four people, appeared
at the Property Control Warehouse. The team was understaffed and unqual-
ified to inventory, classify, and appraise the Hungarian property and transfer
it from Austria to the United States. Furthermore, the Department of State
was anxious to have the items shipped to the states as quickly as possible,
because the Hungarian Restitution Delegation was anxiously trying to block
removal of the valuables from Europe. The U.S. Army was equally anxious,
since a transfer would cover its irregular activities.
In the warehouse the IGCR was busy appraising much of the Hungarian
property. The remaining gold and silver jewelry was grouped as bulk scrap
and appraised on the basis of weight times market prices. The IGCR consid-
ered this necessary to avoid having their four “experts” perform endless months
of appraisal work. During the packing operation, tons of valuable metals had
been discovered. Much of this was gold- and silver- plated jewelry, often
encrusted with diamonds and other gems.
3
36. The End of the Gold Train Property 241
The IGCR team at Salzburg made 10 shipments of this immense cargo
on railroad cars and trucks to the German port of Bremerhaven. The ship-
ment’s final destination was New York City. These valuables were turned over
to the IGCR and auctioned by Parke Bernet Galleries in New York for only
$1,807,000.
In 1966 the United States filed a claim against Hungary for war damage
and debts to American citizens. Much to the surprise of the United States,
the Hungarian government filed a counterclaim for $206 million for “property
carried to the United States by the U.S. Military after World War II.” Approx-
imately $47 million of this claim represented the property of 900 Hungarian
citizens.
In defense of the claim, the Department of State contended that liability
for the valuables on the Hungarian gold train rested with the German gov-
ernment. It further contended that the German authorities took the property
and that, because of this, the U.S. forces had no legal duty to protect the
property from theft or deterioration. Finally, it maintained that under Article
30 of the Peace Treaty, the United States had the right to keep the Hungarian
property with no legal obligation to return it.
The story of the Hungarian gold train remained untold until the pub-
lication of my book Spoils of World War II, in 1994. In 1998 the Presidential
Advisory Commission on Holocaust Assets visited my home and copied over
10,000 pages of documentation. A year later, the Presidential Advisory Com-
mission on Holocaust Assets found that there was “documentary evidence
that American Forces in Austria misappropriated so- called unidentifiable
property of Hungarian Jews found on the Gold Train.”
On May 7, 2001, Cuneo Waldman & Gilbert, L.L.P., filed Irving Rosner
et al. v. United States of America in the U.S. District Court in Miami. The
suit was a class action against the United States on behalf of Hungarian Holo-
caust survivors and their heirs. It claimed that the plaintiffs’ valuable personal
property was loaded on a train by the Hungarian Nazi government during
the waning days of World War II. The U.S. Army later seized the train and
its contents but never returned the property to its owners or heirs. This was
the first suit of its kind brought against the United States.
On Monday, December 20, 2004, in a major breakthrough, the attorneys
for the plaintiff Hungarian Holocaust survivors—together with senior attor-
neys from the U.S. Justice Department—read the following statement to
Judge Patricia Seitz in federal court in Miami. “The Government and Plain-
tiffs’ Counsel, after consultation with class members and Jewish organizations,
have reached an agreement in principle to settle this litigation. There are still
significant issues to be worked out, but we are confident that we can indeed
work them out.”
242 Part VI : Looting from Hungary in World War II
On September 30, 2005, after more than four years of hard- fought lit-
igation, the Hungarian gold train litigation was finally concluded successfully.
The U.S. District Court for the Southern District of Florida gave its final
approval to the proposed settlement of $25.5 million paid into the settlement
fund. This fund was allocated to pay for social welfare benefits to financially
needy Hungarian Holocaust survivors.
On January 31, 2006, the lead counsel wrote:
There is little question that this whole sorry episode would never have come
to light had you [Kenneth D. Alford] not unearthed it. For that and for your
generosity in sharing with us your time, your expertise and insights, and your
files, I want to express deep gratitude on behalf of the lawyers and plaintiffs.
You should be extremely proud of your role in helping to right this historic
wrong.
4
R
Gen. Harry J. Collins began an affair with Irene Gehmacher, an Austrian
actress. The story goes that when his unit returned to the United States,
Collins’ aide married the actress. Then, upon entry into the United States,
the aide divorced her. The general then divorced his wife of many years and
married the actress. Being Catholic, he was excommunicated, but he ignored
this action and attended mass every Sunday on the military post. He was
always late but required the chaplain to delay the service until he arrived. His
new wife had quite a reputation and enjoyed her role as “Frau General.”
Collins, disliked by his men, was known as “Hollywood Harry.” One of
his stateside assignments was as commander of the 31st Infantry Division at
Fort Carson, Colorado. Of this time, one of his officers wrote:
His eccentricities were obvious from the start. He required that his soldiers,
enlisted and officer alike, wear no neckties but blue infantry branch scarves
with our shirt collars over our Ike jackets (class A uniform). At his own expense
he outfitted the division band in Confederate uniforms and the stars and bars
flew proudly next to the stars and stripes on all occasions. At periodic officer
calls in a large auditorium, the band at the back would play “Dixie” and
Collins would stride on stage. He would begin by addressing us as “My soldier
men.” When he was done, he would say “Thank you, my soldier men,” the
band would play “Dixie” again, and he would leave the stage.
He also organized and outfitted at his own expense a bagpipe band, kilts
and all, which he used to wake up the troops in each of the three regimental
areas on a rotating basis. I like bagpipes but not so early in the morning. It
was a weird experience. It was obvious that General Collins had paid for the
unusual band arrangements out of his own pocket.
I last saw the general and his wife at an Officers Club party in Berchtes-
gaden, Germany, in 1958. They were retired and living in nearby Salzburg,
Austria. Collins was in a wheelchair because he had been seriously injured in
36. The End of the Gold Train Property 243
an automobile accident. I remember well that the band played “Dixie” for
him and we all stood up.
Harry Collins had the ego of George Patton but nowhere near the ability.
He was able to get away with unacceptable behavior because of his rank and
the times in which he lived.
5
Gen. Collins died on March 8, 1963, and is buried in St. Peter’s Church-
yard Cemetery in Salzburg, Austria. The headstone, written in German, states
that Gen. Collins was an honorary citizen of both Salzburg and Linz. His
wife, Irene, died on December 26, 1987, and is interred with him.
244 Part VI : Looting from Hungary in World War II
Appendix A
Anton Wiede’s Missing
Stamps and Paintings
Inventory from case record EU(13)-55-247,
Headquarters U.S. Army, National Archives.
Five Albums Each About 40 by 30 cm
and About 12 cm Thick (16"
¥
12"
¥
5")
Complete sheets with stamps were fastened to cardboard folios by broad cellophane
strips. Blocks of four were encased in separate cellophane strips.
1. Complete in whole sheets and blocks of four (not stamped)
a. German Reich: from first prints (1872) until 1945, including all special
stamps, official service, and airmail stamps. All proof prints, misprints, and
all experimental issues. Among them, values that were issued in a few copies.
b. Stamps of German post offices abroad (China, Morocco, Turkey) and in all
Ger man colonies.
c. All stamps issued by German occupation authorities (occupied territories
until 1945).
2. Complete sets (and colorings) in individual stamps, stamped and not stamped.
a. German post offices in the territories occupied from 1914 to 1918, in the Ger-
man territories where plebiscites were held, and in Danzig, the Memel, and
Saar territories.
3. All values and coloring of former German states, including misprints, stamps and
to a large extent not used, in individual items (among them many duplicates), all
flawless.
a. Bavarian from 1814
b. Helgoland from 1867
c. Prussia from 1850
d. Saxony from 1850
e. Thurn und Taxis from 1852
f. Württemberg from 1851
4. It is impossible to specify the collection of foreign stamps (e.g., England, France,
the United States, and Finland) contained in one section of the album. Among
245
them were some especially rare items (early issues), since in addition to his complete
collection of German stamps, my father had specialized only in this type.
Missing Paintings—Descriptions by Frau Else Wiede
Rumänierin, by Franz von Lenbach
Purchased in 1905 by Johannes Wiede, Trebsen, at Arnold’s art salon in Dresden,
Schlosstrasse (owner Gutbiert). Previously owned by a resident of Vienna. As
far as I can recollect, the names or seals of the owner were stated on the back
of the painting, and the portrait itself bore the signature of the artist. The cer-
tificate of authenticity was kept in the desk and probably disappeared with the
painting. Size about 60 by 70 cm, upright.
Painted in oil on canvas (taken away without frame).
Head of a woman (girl) of about 20 years, almost life size. Background in Lenbach
brown; no predominant colors.
Half profile, head slightly raised, looking to the right. Delicate profile, intelligent,
grave, almost melancholy and remote look, not direct at you but yet fascinating
the observer. Thinly laid on color.
Thin lipped, sharp cut nose, the large nostrils almost appear to be vibrating.
Especially remarkable in the auburn hair, with long locks, slightly waved, evenly
parted, falling down on the shoulders.
Slender, erect neck, well-marked and narrow neckline, bordered by dark dress, of
which not much can be seen. Thus no half-length portrait.
In addition to the Rumänierin, Lenbach is said to have painted at the same time
the portrait A Woman of Florence (Florentinerin).
The painting, packed in a nailed-up wooden crate, was stored in the cellar of the
Wiede residence at Trebsen, a.d. Mulde (district of Leipzig).
Abendstimmung am unteren Main by Hans Thoma
Purchased after 1918 but prior to 1924 by Johannes Wiede, Trebsen, at Arnold’s
art salon in Dresden, Schlosstrasse (owner Gutbiert). Formerly owned by a lady
in Frank furt/ Main. Signed by the artist.
Size about 45 by 60 cm, broadside.
Painted in Oil on impregnated cardboard (taken away with frame).
Impression of peace and quietness (stagnate air). In the foreground the small river
between irregular river banks, partly covered by grass and shrubby. On the side
of the river, high broad-leaved trees gold colored by the shine of the setting
sun (autumnal coloring).
The air, a clear blue sky interspersed with small white clouds, is of special beauty.
In the middle of the river, in harmony with the whole picture, a boatman push-
ing a punt, still emphasizing the solitude of peace.
Small waves in the wake of the boat show its slow movement toward the other
bank of the river. The face of the boatman is turned away from the observer.
The whole painting reflects some kind of reverie, similar to the characteristics of
246 Appendix A
Steinhausen (A religious painter—translation note), but lacking any slurring
effects. Clear color and arrangement.
The painting, packed in a nailed-up wooden crate, was stored in the cellar of the
Wiede residence at Trebsen, a.d. Mulde (District of Leipzig).
Falkner auf Schimmel by C. van Valens (Netherlands School)
Property of Else Wiede, inherited from her great grandfather Dr. Auf Mothes,
Leipzig, who acquired it about 1820 from an estate of inheritance (Querfurth).
The name of the artist and the name Querfurth were written in ink on the back
of the frame.
Size about 25 by 30 cm, upright.
Painted in oil on canvas, which is old and yellow. Badly restored, glossy, stained.
Gilt frame.
Dutch landscape. By the side of the rider a boy handling over a falcon, the whole
painting is somewhat turbid. I remember a blue riding coat.
The painting was in the vestibule of the Wiede residence, which was used as head-
quarters office.
Conzilium by Idwith
Purchased about 1925 by Johannes Wiede, Trebsen, in Munich. Signed by artist
(English?).
Size about 30 by 45 cm, broadside.
Painted in oil on canvas under glass, gilt frame.
Sitting at a table and standing beside it are cardinals in red gowns, vividly gestic-
ulating and conferring.
Overall impression, red in various shades.
The painting was in the vestibule of the Wiede residence, located on the ground
floor, which was used as headquarters office.
Anton Wiede’s Missing Stamps and Paintings 247
Appendix B
The Missing
Kaltenbrunner Treasure
Inventory from the Foreign Exchange Repository
U.S. Army, National Archives.
Contents of Shipment 21 A
Silver coins
1. 197 Polish zloty at 10: 1,970
2. 500 Polish zloty at 5: 2,500
3. 152 Polish zloty at 10: 1,520
4. 924 Polish zloty at 2: 1,548
5. 28
1
⁄2 Silver bars (6 in. long by
1
⁄4 in. diameter)
6. See attached sheet
Gold coins
7. 74 U.S. $20: 1,480; 1 Austria-Hungary ducat
8. 743 British sovereigns; 280 U.S. at $20: 5,600; 12 French francs at 10: 120; 6
Neth. guilders at 5: 30; 72 French francs at 20: 1,440; 97 Brit. half-sovereigns
242 Neth. guilders at 1: 242
9. 31 Silver bars (6 in. ¥
1
⁄4 in. diameter); I knife handle—“silver”
10. 318 Rubles at 5: 1,590; 122 Rubles at 10: 1,220; 14 Rubles at 15: 210
11. Miscellaneous gold pieces as follows: 2 Rubles at 50; 1 Eng. sovereign at 1; 1
French franc at 20; 1 French franc at 10; 2 Polish zloty at 20; 1 Polish zloty at
10; 4 Aust-Hun Korona at 20; 1 Napoleon at 40 fr: 40 fr; 1 Napoleon at 50
fr: 50 fr; 1 Austrian kronen: 100 kr; 1 Austrian shilling: 100 s; 21 Austrian
goldpieces said to be ducats; 1 Sealed sack labeled “Gold Pd Stig 2500”
Gold coins
12. 475 U.S. at $20: $8,500; 225 U.S. at $10: $2,250; 394 Rus. rubles at 5: 1970
rbls; 51 Rus. rubles at 10: 510 rbls; 16 Rus. rubles at 15: 240 rbls
248
Currency
13. U.S.: $1,271; Swiss: 9045 fr; English: 220 pounds; Swedish: 655 kronen; Dan-
ish: 130 kronen; Norwegian: 50 kronen
Silver coins
14. French 1 at 20 fr: 20 fr; French 1 at 1 fr: 1 fr; German 2 at 1 RM: 2 RM;
German 1 at
1
⁄2 RM:
1
⁄2 RM; Polish 2 at 5 Zl: 10 Zl; Polish 1 at 1 Zl: 1 Zl; Bul-
garian 1 at 5: 5 Lewa; Bulgarian 1 at 100: 100 Lewa; Bulgarian 8 at 1: 8 Lewa;
Lithuanian 1 at 10: 10 Der
Gold coins
French 59 at 20 fr: 1180 fr; U.S. 88 at $20: $1760; Peru 1 at
1
⁄2 :
1
⁄2; Denmark
1 at 20 kr: 20 kr; Brit. 474 at 1 sov: 474 sov.; Brit. 20 at
1
⁄2 sov: 10 sov.
15. Silver coins; German 1 at 10 Rm: 10 Rm; French 746 at 20 fr: 14920 fr; Spanish
6 at 5: 30 pesetas; Spanish 3 at 2: 6 pesetas; Spanish 26 at 1: 26 pesetas; Polish
4 at 10 Zl: 40 zloty; Polish 22 at 5 Zl: 110 zloty; Polish 25 at 2 Zl: 50 zloty;
Aust 1 at 2: 2 shillings; Italian 1 at 2: 2 lire; Russian 20 at 5 Rbls: 100 rubles;
Slovakian 1 at 5 K: 5 korons; Polish: 3 damaged coins, values unknown; Polish:
2 medals
16. Silver coins; Polish 55 at 1 Zl: 55 zloty; Polish 148 at 2 Zl: 296 zloty; Polish
236 at 5 Zl: 1180 zloty; Polish 17 at 10 Zl: 170 zloty; Russian 31 at 5 Rbls: 155
rbls; Unknown 4 pieces
17. Silver coins; Polish 76 at 1 Zl: 76 zloty; Polish 1001 at 2 Zl: 2002 zloty; Polish
13 at 5 Zl: 65 zloty; Polish 1 at 10 Zl: 10 zloty
18. Miscellaneous costume jewelry, small value
19. Miscellaneous unset precious or semiprecious stones and gold medallions,
value unknown
20. Large number of precious or semiprecious stones, value unknown
21. Silver bar, weight 30 lbs
22. 4 bracelets, jeweled, gold; 4 rings, jeweled, gold; 2 watch chains, gold; 2 neck-
laces with jeweled pendant; 1 gold pendant; 1 pr. gold cufflinks;
1
⁄2 gold locket,
jeweled; 1 gold pendant, jeweled; 4 gold bracelets, jeweled; 5 gold pins or
pendants; 1 gold ring; 1 gold mesh purse
In suede purse: 1 broken gold ring; 2 2-ear drops; 2 gold rings, jeweled; 1
pearl and sapphire bracelet, broken; 1 jeweled bracelet; 2 jeweled rings; 1 small
piece, silver; 2 compacts, gold
23. 32 silver purses; 1 gold ring; 26 strings of pearls; 145 tableware pieces; 20
silver pieces.
24. Miscellaneous bracelets—mostly broken—scrap gold, 30 pieces
25. 8 small clocks—valueless—1 silver medallion
26. 26 pieces costume jewelry
27. 194 miscellaneous rings
28. Miscellaneous costume jewelry
29. 29 Miscellaneous cigarette and vanity cases
30. Miscellaneous costume jewelry
The Missing Kaltenbrunner Treasure 249