Giesche
Encyclopedia
Giesche Corp. – one of the biggest and most respectable companies operating in Upper Silesia
, in Poland
, during interwar times. It was the biggest Polish zinc
producer (40% of country zinc production) and one of the biggest coal
producers, possessing zinc mines (the largest in Europe
), bituminous coal fields (production 3,500,000 tons yearly), rolling mills and smelters, factories and also agricultural lands and forests. It employed nearly 20 thousand workers, for which housing quarters were built (today famous monumental discricts of Katowice
).
Its biggest zinc mills were Giesche (later known as Szopienice) and Wilhelmina; biggest coal mines were Giesche (later known as Janow, still later Wieczorek) and Kleofas. The biggest zinc mine was White Sharley (Bleischarley) but it formally belonged to German parent company of Giesche.
, certain zinc and coal mines in Upper Silesia, owned and operated by the Giesche family since 1704, were then held by the German firm Bergwerksgesellschaft Georg von Giesche's Erben (hereinafter referred to as Erben). The Erben mining properties were divided by the German-Polish boundary line set by the Treaty of Versailles
in 1922, so that about 80% was allocated to Poland, and the remainder to Germany
. For practical reasons, the Polish properties were therefore transferred to one of Erben's subsidiaries, a firm incorporated in Prussia
about 1907. This firm then became the Polish Corporation Giesche Spolka Akcyjna (Giesche Corporation). The post-World War I operations of Giesche Erben and Giesche Spolka Akcyjna appear to have been financially unsuccessful. This was partly because Poland had laid a heavy tax
on the Spolka properties. Because unsettled conditions made it difficult to borrow German funds to pay these taxes, Erben had to seek completely new solutions and decided to sell the Polish company.
and with Anaconda Copper
Mining Corp. In 1926, Anaconda and Harriman decided to purchase the majority of capital stock
of Giesche Spolka Akcyjna. Therefore, they organized a holding company in Delaware
, USA: Silesian-American Corporation
. It became the sole owner of Giesche Spolka Akcyjna (previous owner, Erben, contributed all capital
stock of Giesche Spolka Akcyjna to Silesian-American in return for minority share in the latter).
The Spolka stock was carried in Silesian-American first balance sheet at the enormous sum of $21,550,000.
broke out in the fall of 1939, the entire Silesian area was overrun by the German Army
. The Americans in the Spolka concern were forced out one by one; the last, Spolka's general manager, left for Switzerland
in 1940. During the occupation, the over-all supervision of the Spolka properties went to a German 'Commissar'
or trustee, Dr. Albrecht Jung, head of Erben's legal department. Direct operations were apparently in charge of Dr. Eduard Schulte, Erben's general manager, and his deputy, Dr. Lothar Siemon.
The officials of Erben were in a position to do virtually what they chose with these properties, but at the same time they realized they did not have legal ownership control of Giesche Spolka Akcyjna. Thus they made some attempts to take over full stock capital of Silesian-American (Spolka’s parent company), although unsuccessful – compare Silesian-American Corporation
.
Sixteenth Annual Report of the Securities and Exchange Commission, Fiscal Year Ended June 30, 1950, United States Government Printing Office, Washington: 1950 (which may be found at http://www.sechistorical.org )
U.S. Supreme Court Dec. 8, 1947 SILESIAN AMERICAN CORPORATION V. CLARK (which may be found at http://supreme.justia.com/us/332/469/ )
United States Court of Appeals Second Circuit April 13, 1953 CONWAY v. UNION BANK OF SWITZERLAND (which may be found at http://www.jurisearch.com/default.asp )
United States Court of Appeals Second Circuit, Second Circuit. July 3, 1946 SILESIAN-AMERICAN CORPORATION et al. v. MARKHAM, Alien Property Custodian (which may be found at http://www.jurisearch.com/default.asp )
United States Court of Appeals Second Circuit Dec. 6, 1956 SCRIBNER & Miller v. Francis CONWAY, Trustee of Silesian-American Corporation (which may be found at http://www.jurisearch.com/default.asp )
Time Magazine Jun. 14, 1926 (http://www.time.com/time/archive/preview/0,10987,751560,00.html )
Also a lot of Polish language sources, concerning mainly the history of Silesian industry, the history of Katowice and its districts, web pages of particular Polish coal mines. For example:
http://www.giszowiec.sewera.pl/
http://www.kopalnia.com.pl/
The book “Secrets of Upper Silesian Corporations” by Jerzy Jaros – in Polish („Tajemnice górnośląskich koncernów” Śląski Instytut Naukowy, Katowice 1983)
Silesia
Silesia is a historical region of Central Europe located mostly in Poland, with smaller parts also in the Czech Republic, and Germany.Silesia is rich in mineral and natural resources, and includes several important industrial areas. Silesia's largest city and historical capital is Wrocław...
, in Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
, during interwar times. It was the biggest Polish zinc
Zinc
Zinc , or spelter , is a metallic chemical element; it has the symbol Zn and atomic number 30. It is the first element in group 12 of the periodic table. Zinc is, in some respects, chemically similar to magnesium, because its ion is of similar size and its only common oxidation state is +2...
producer (40% of country zinc production) and one of the biggest coal
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
producers, possessing zinc mines (the largest in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
), bituminous coal fields (production 3,500,000 tons yearly), rolling mills and smelters, factories and also agricultural lands and forests. It employed nearly 20 thousand workers, for which housing quarters were built (today famous monumental discricts of Katowice
Katowice
Katowice is a city in Silesia in southern Poland, on the Kłodnica and Rawa rivers . Katowice is located in the Silesian Highlands, about north of the Silesian Beskids and about southeast of the Sudetes Mountains.It is the central district of the Upper Silesian Metropolis, with a population of 2...
).
Its biggest zinc mills were Giesche (later known as Szopienice) and Wilhelmina; biggest coal mines were Giesche (later known as Janow, still later Wieczorek) and Kleofas. The biggest zinc mine was White Sharley (Bleischarley) but it formally belonged to German parent company of Giesche.
History
Prior to World War IWorld War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
, certain zinc and coal mines in Upper Silesia, owned and operated by the Giesche family since 1704, were then held by the German firm Bergwerksgesellschaft Georg von Giesche's Erben (hereinafter referred to as Erben). The Erben mining properties were divided by the German-Polish boundary line set by the Treaty of Versailles
Treaty of Versailles
The Treaty of Versailles was one of the peace treaties at the end of World War I. It ended the state of war between Germany and the Allied Powers. It was signed on 28 June 1919, exactly five years after the assassination of Archduke Franz Ferdinand. The other Central Powers on the German side of...
in 1922, so that about 80% was allocated to Poland, and the remainder to Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
. For practical reasons, the Polish properties were therefore transferred to one of Erben's subsidiaries, a firm incorporated in Prussia
Prussia
Prussia was a German kingdom and historic state originating out of the Duchy of Prussia and the Margraviate of Brandenburg. For centuries, the House of Hohenzollern ruled Prussia, successfully expanding its size by way of an unusually well-organized and effective army. Prussia shaped the history...
about 1907. This firm then became the Polish Corporation Giesche Spolka Akcyjna (Giesche Corporation). The post-World War I operations of Giesche Erben and Giesche Spolka Akcyjna appear to have been financially unsuccessful. This was partly because Poland had laid a heavy tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
on the Spolka properties. Because unsettled conditions made it difficult to borrow German funds to pay these taxes, Erben had to seek completely new solutions and decided to sell the Polish company.
Giesche Corporation becomes American-owned
Giesche Erben started negotiations with W. Averell HarrimanW. Averell Harriman
William Averell Harriman was an American Democratic Party politician, businessman, and diplomat. He was the son of railroad baron E. H. Harriman. He served as Secretary of Commerce under President Harry S. Truman and later as the 48th Governor of New York...
and with Anaconda Copper
Anaconda Copper
Anaconda Copper Mining Company was one of the largest trusts of the early 20th century. The Anaconda was purchased by Atlantic Richfield Company on January 12, 1977...
Mining Corp. In 1926, Anaconda and Harriman decided to purchase the majority of capital stock
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
of Giesche Spolka Akcyjna. Therefore, they organized a holding company in Delaware
Delaware
Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. It is bordered to the south and west by Maryland, and to the north by Pennsylvania...
, USA: Silesian-American Corporation
Silesian-American Corporation
Silesian-American Corporation, SACO – was a holding company for Giesche Spolka Akcyjna , operating in Upper Silesia, Poland during interwar times.Silesian-American held 100% of Giesche Spolka Akcyjna stock....
. It became the sole owner of Giesche Spolka Akcyjna (previous owner, Erben, contributed all capital
Capital (economics)
In economics, capital, capital goods, or real capital refers to already-produced durable goods used in production of goods or services. The capital goods are not significantly consumed, though they may depreciate in the production process...
stock of Giesche Spolka Akcyjna to Silesian-American in return for minority share in the latter).
The Spolka stock was carried in Silesian-American first balance sheet at the enormous sum of $21,550,000.
War breaking out
When World War IIWorld War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
broke out in the fall of 1939, the entire Silesian area was overrun by the German Army
German Army
The German Army is the land component of the armed forces of the Federal Republic of Germany. Following the disbanding of the Wehrmacht after World War II, it was re-established in 1955 as the Bundesheer, part of the newly formed West German Bundeswehr along with the Navy and the Air Force...
. The Americans in the Spolka concern were forced out one by one; the last, Spolka's general manager, left for Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
in 1940. During the occupation, the over-all supervision of the Spolka properties went to a German 'Commissar'
Commissar
Commissar is the English transliteration of an official title used in Russia from the time of Peter the Great.The title was used during the Provisional Government for regional heads of administration, but it is mostly associated with a number of Cheka and military functions in Bolshevik and Soviet...
or trustee, Dr. Albrecht Jung, head of Erben's legal department. Direct operations were apparently in charge of Dr. Eduard Schulte, Erben's general manager, and his deputy, Dr. Lothar Siemon.
The officials of Erben were in a position to do virtually what they chose with these properties, but at the same time they realized they did not have legal ownership control of Giesche Spolka Akcyjna. Thus they made some attempts to take over full stock capital of Silesian-American (Spolka’s parent company), although unsuccessful – compare Silesian-American Corporation
Silesian-American Corporation
Silesian-American Corporation, SACO – was a holding company for Giesche Spolka Akcyjna , operating in Upper Silesia, Poland during interwar times.Silesian-American held 100% of Giesche Spolka Akcyjna stock....
.
Post-war times
Right after World War II, the Communist Government of Poland by decree of January 3, 1946, nationalized certain of its industries. The Spolka properties were nationalized and the company’s activity was suspended, and in 1967 the assets were paid off .Sources
United States Court of Appeals Second Circuit, Dec. 26, 1950. CONWAY v. SILESIAN-AMERICAN CORP. (which may be found at http://www.jurisearch.com/default.asp )Sixteenth Annual Report of the Securities and Exchange Commission, Fiscal Year Ended June 30, 1950, United States Government Printing Office, Washington: 1950 (which may be found at http://www.sechistorical.org )
U.S. Supreme Court Dec. 8, 1947 SILESIAN AMERICAN CORPORATION V. CLARK (which may be found at http://supreme.justia.com/us/332/469/ )
United States Court of Appeals Second Circuit April 13, 1953 CONWAY v. UNION BANK OF SWITZERLAND (which may be found at http://www.jurisearch.com/default.asp )
United States Court of Appeals Second Circuit, Second Circuit. July 3, 1946 SILESIAN-AMERICAN CORPORATION et al. v. MARKHAM, Alien Property Custodian (which may be found at http://www.jurisearch.com/default.asp )
United States Court of Appeals Second Circuit Dec. 6, 1956 SCRIBNER & Miller v. Francis CONWAY, Trustee of Silesian-American Corporation (which may be found at http://www.jurisearch.com/default.asp )
Time Magazine Jun. 14, 1926 (http://www.time.com/time/archive/preview/0,10987,751560,00.html )
Also a lot of Polish language sources, concerning mainly the history of Silesian industry, the history of Katowice and its districts, web pages of particular Polish coal mines. For example:
http://www.giszowiec.sewera.pl/
http://www.kopalnia.com.pl/
The book “Secrets of Upper Silesian Corporations” by Jerzy Jaros – in Polish („Tajemnice górnośląskich koncernów” Śląski Instytut Naukowy, Katowice 1983)