Expert Opinion - Nazi Looted Art

7
The 19 th Annual Report comments on the dire effects of the Great Depression. The
substantial volume of bad debts caused considerable losses for the company, their
first loss in its 50-year history. Nevertheless the indebtedness to banks was reduced
by about RM 600,000 to about RM 2,200,000. Liabilities to third parties were lowered
by about RM 800,000 to RM 1,300,000. The Annual Report issued on May 14, 1932
then notes the sad loss of the company’s long-term member of its Board of Directors,
Alfred Hess. He died suddenly on December 24, 1931. Total assets still came to RM
8,713,751,60.
Evidence: 19 th Annual Report published on May 14, 1932 for the period from
October 1, 1930 to September 30, 1931.
The subsequent 20th Annual Report for the fiscal period of October 1, 1931 to
September 30, 1932 is not available.
Proceedings for temporary relief from creditors were initiated on April 13, 1933 as a
consequence of further deterioration of business conditions due to the worldwide
economic crisis.
Evidence: File No. 16 N.38/33 of the Municipal Court in Erfurt.
In the minutes of the March 29, 1933 meeting of the Board of Directors it is recorded
that the 09/30/1932 balance sheet shows a loss of RM 413,744.12 and that
corporate assets amount to only RM 836,255.88
Evidence: Attachment 2 to the notarized minutes of the Board of Directors
meeting on September 30, 1932 issued on March 29, 1933.
The creditor protection proceeding initiated on April 13, 1933 was terminated as a
result of the ruling by the Erfurt Municipal Court on May 19, 1933, (thus only one
month after the filing).
Evidence: Ruling of the Erfurt Municipal Court of May 19, 1993.
M. u. L. Hess Schuhfabrik continued under a different name, Grundstuecksgesellschaft
Moltkestrasse AG, a stock corporation engaged in real estate property.
It ceased its operations as a shoe factory on October 1, 1933. Grundstuecksaktiengesellschaft
Moltkestrasse AG was liquidated in 1939 and deleted from the
Commercial Register.
Evidence: Earlier commercial register documents of M. u. L. Hess Schuhfabrik;
findings in the German Federal Administrative Court decision dated
April 28, 2004 - 8C 12.03 in ZOV 2004, 192 - and decision of the
Gera Administrative Court of August 8, 2002 – 5 K 1136/97 GE, not
published.