THE SS ECONOMIC ADMINISTRATION, 1934-1945:

AN INTRODUCTION

 

R. Boyd Murphree

Florida State University

 

Historians studying the totalitarian regimes of the twentieth century must inevitably deal with the complex administrative and bureaucratic organizations created by those governments.  No history of the Soviet Union, for example, can neglect the importance of institutions such as the Communist Party, GOSPLAN, and the KGB.  Likewise, no history of Nazi Germany can fail to investigate the role of the Nazi Party, the Four Year Plan, and the Schutzstaffel (SS).

 

While the purpose of the SS was not bureaucratic but ideological, its growing responsibilities created a vast bureaucracy.  By 1942, the SS bureaucracy contained twelve main offices.  Each had specific functions such as security, operations, race and resettlement, and economics and administration.  Most research on the SS has concentrated on the first three areas.  The Reich's Security Main Office (Reichssicherheitshaupamt, RSHA) has received much attention from historians, because it controlled the SS's political terror apparatus through the Secret State Police (Geheime Staatspolizei, Gestapo) and Security Service (Sicherheitsdienst, SD).  Operations came under the direction of the SS Operations Main Office (SS-Fuehrungshauptamt, SSFHA) which ran several SS departments, including the Waffen SS (Military SS) and long has been a popular area of study.  The Race and Resettlement Central Office (Rasse- und Sidlungshauptamt, RuSHA) has received historical scrutiny for its role in the SS's murderous "Germanization" policies in Eastern Europe.(1)

 

Surprisingly, the Economic and Administrative Main Office (Wirtschafts- und Verwaltunshauptamt, WVHA) has not undergone the same detailed historical analysis as the above organizations.  As the office responsible for administration and economic activity within the SS, the WVHA was one of the largest and most powerful of all the SS agencies.  It had financial and administrative responsibility over the entire SS, including the concentration camp system.  The WVHA managed all the SS's industrial and business ventures, which by the end of the war totaled dozens of different enterprises.  It provided slave labor from its pool of concentration camp inmates to work in many sectors of German industry.  Finally, the WVHA's management of the concentration camps meant that it was intimately involved in running the "Final Solution of the Jewish Question."(2)

 

The forerunner of the WVHA was the SS Administrative Office (Verwaltungsamt) headed by the future chief of the WVHA, Oswald Pohl.  A former naval disbursing officer, Pohl joined the Nazi Party in 1926.  Three years later he entered the ranks of the Sturmabtelilungen (SA), but in 1934 he decided to accept a position in the SS.

 

In 1934, the SS was still in its formative stages and its leader, Heinrich Himmler, wanted to fill the SS leadership with a cadre of competent, hard working, and loyal professionals.  He noticed Pohl's financial and administrative background in the navy and asked him to join the SS in the position of deputy to the chief of the SS Administrative Office.  Pohl, however, was not to remain second-in-command for long.  His superior died in February 1934, and Pohl advanced to the top position.  At that time, Pohl's office was one of many departments within the SS Main office.  The Administrative Office's tasks were restricted to the administration of the Allgemeine SS (General SS).

 

On April 20, 1939, Himmler reorganized the SS Administrative Office and expanded Pohl's responsibilities.  The former Administrative Office became a separate SS Main Office responsible for both administrative matters and economic affairs.  Himmler also created a Main Office for Budget and Buildings; he put Pohl in charge of both.  The overlapping duties of these main offices created bureaucratic confusion.  On February 1, 1942, therefore, Himmler ordered another reorganization, and both main offices were fused into one large SS Economic and Administrative Main Office (WVHA) under Pohl's direction.(3)

 

The WVHA's role in the German economy increased dramatically as a result of the military setbacks suffered by the Wehrmacht on the Eastern Front in the winter battles of 1941 and 1942.  Heavy material losses led to Hitler's decision to increase armaments production.  Always ready to increase the influence of the SS, Himmler received the Fuehrer's permission to begin the building of armaments plants on the site of some of the SS's concentration camps.  Himmler ordered Richard Gluecks, the Inspector of Concentration Camps, to provide thousands of slave laborers for the new armament projects.  Because the armament plants came under the jurisdiction of the WVHA's responsibilities for all SS economic affairs, and because these plants required the use of Glueck's concentration camp inmates, there was a great potential for bureaucratic confusion and infighting.  Himmler, therefore, ordered yet another reorganization of the WVHA.  In March 1942, Himmler put Gluecks' office of the Inspector of Concentration Camps under the authority of Pohl's WVHA.

 

The WVHA had become a "super organization" within the overall SS bureaucracy which now consisted of five main offices:  Main Office A under Obergruppenfuehrer August Frank controlled the finance and administration of the SS; Main Office B under Gruppenfuehrer Georg Loerner controlled the SS's food supply, uniforms, billeting, and equipment; Main Office C under Obergruppenfuehrer Hans Kammler controlled the construction tasks of the SS, including the building of gas chambers and crematoria; Main Office D under Obergruppenfuehrer Richard Gluecks administered the concentration camps; and Main Office W under Obergruppenfuehrer Oswald Pohl ran the WVHA's economic enterprises.(4)

 

In its role as the administrative department of the SS, the WVHA had an important function in both the Allgemeine SS and the Waffen SS.  During the pre-war years Pohl's Verwaltungsamt handled the administrative functions of the Allgemeine SS, including controlling the funds raised from members of the Allgemeine SS, developing an administrative organization for all the branches of the Allgemeine SS, and training the personnel for this administrative system. 

 

However, administration of the SS in the midst of a world war obviously entailed more duties and more work for Pohl's office than had been required in the pre-war period.  The WVHA continued his old job of administering the Allgemeine SS, though during the war the latter organization had little work to keep it busy.  As few as twenty WVHA men administered the Allgemeine SS during the war years.  Their Allgemeine SS duties consisted of paying the salaries of the few remaining full time employees, overseeing property, creating a new payroll system, and directing the Allgemeine SS's social welfare programs.

 

While the war years decreased the WVHA's administrative work in the Allgemeine SS, the period brought a tremendous increase in its administration of the Waffen SS.  The Verwaltungsamt was responsible for all supply and administrative affairs of the Waffen SS before February 1942.  After the February reorganization of Pohl's offices, his new WVHA continued his old responsibilities for the Waffen SS by procuring or manufacturing certain supplies for Waffen SS units, managing supply depots, administering disbursements to Waffen SS personnel, and acquiring land and buildings for Waffen SS use.  These duties meant that WVHA personnel served in the field with Waffen SS units or were assigned to Death's Head Units (Totenkopfverbaende) guarding the concentration camps.  Closely related to the Waffen SS, the latter both guarded the camps and fought as military units.  The WVHA administered these elements as it did those of the Waffen SS.  Moreover, many Waffen SS men also served as officials of the WVHA, and many members of the WVHA were transferred to the Waffen SS to avoid their being drafted into the Wehrmacht.(5)

 

As a result of German conquests in the Second World War, the SS came to play a crucial part in Germany's occupation policies.  On a general level the WVHA was an important component of German occupation forces in that it directed the administration and supply functions of the entire SS.  It has already been noted that the WVHA was inextricably linked to the Waffen SS, formations of which were directly involved in occupation operations.  The WVHA's administrative and supply responsibilities also extended to the personnel of such SS organizations as the Gestapo, SD, the Criminal Police (Kriminalpolizei, Kripo), and the Regular Police (Ordnungspolizei, Orpo).  These agencies performed most of the terror, imprisonment, and extermination policies of the German occupation authorities.

 

Other WVHA men functioned as Wirtschafter (economic specialists) on the staffs of the Higher SS and Police Leaders (Hoehere SS- und Polizeifuehrers, HSSPFs).  The HSSPFs were charged with the supervision and conduct of all economic, supply, and administrative activities of SS and police forces.(6)

 

In addition to these administrative responsibilities within the occupied territories, the WVHA also ran the various SS economic enterprises located throughout Nazi occupied Europe.  One of the more notorious of these enterprises was the Eastern Industries Limited Liability Company (Ostindustrie, Osti).  The WVHA formed this company in March 1943 as a result of the SS's campaign of slave labor and eventual extermination against the remaining Jews in German-occupied Poland.  According to the Nuremberg Military Tribunal the purposes of Osti were:

(1) to utilize the working capacity of the Jews by erecting industrial plants in connection with Jewish labor camps.

(2) to take over commercial enterprises which had been maintained by the Higher SS and Police Leaders in Poland.

(3) to confiscate all Jewish machinery and raw materials.

(4) and to utilize all former Jewish machines, tools, and merchandise which had been transferred to non-Jewish ownership.(7)

 

These confiscations of Jewish property led to Osti control of eighteen manufacturing establishments, employing some 52,000 slave laborers.  These businesses included a glass works, a textile mill, a peat cutting factory, an iron foundry, a brush manufacturing plant, a stone quarry, and a pharmaceutical laboratory.  Osti is just one example of the involvement of the WVHA in economic enterprises throughout Nazi-occupied Europe.(8)

 

What were the characteristics of the WVHA's other economic enterprises?  The SS developed economic enterprises as early as 1933.  Supposedly, the reason for these enterprises was ideological.  The SS claimed to be carrying out the tenets of National Socialism which held that "the State does not exist for the benefit of the economy; but the economy exists for the benefit of the State."(9)  Himmler, however, did not want the SS economy to be subordinate to the State.  He wanted the SS to be economically independent of both the State and the Party.  By the end of the war the SS, working through the WVHA, controlled over fifty large economic enterprises.  Ostensibly private firms under a parent holding company, Deutsche Wirtschaftsbetriebe (German Economic Enterprises, Ltd., DWB), they were actually State monopolies which the WVHA managed under the cover of DWB.  The DWB umbrella covered several WVHA industries, some examples of which were the German Earth and Stone Works, Ltd., the Bohemian Ceramic Works, Ltd., Public Utility Dwelling and Homestead, Ltd., House and Real Estate, Ltd., German Medicines, Ltd., Berlin Furniture Factory, Ltd., the German Equipment Works, Ltd., and Nordland Publishing House.  These firms and other WVHA industries received the bulk of their labor force from the concentration camps.  In fact many of the firms were located on the very sites of the camps.(10)

 

One of the more interesting aspects of the WVHA's economic enterprises was an attempt, under Himmler's direction, to create an SS armaments industry based on concentration camp labor.  This episode provides a good example of the confusion and infighting prevalent in the management of Nazi Germany's war economy.

 

In 1942, several individuals and agencies exercised influence in the German economy:  Herman Goering was the nominal head of the economy as the director of the Four Year Plan; Albert Speer was Plenipotentiary General for Armaments and Munitions; Walter Funk was Reichsminister for Economics; and Fritiz Sauckel was Plenipotentiary General for Labor Allocation.  While these men competed for control of economic power, they also had to contend with the machinations of Himmler and the officials of the WVHA.

 

During the winter of 1941-42, the Wehrmacht suffered huge losses of men and material on the Eastern Front.  These losses called for large increases in armaments production.  An increase in armaments production entailed a corresponding expansion of the labor force.  Himmler used this emergency situation to strengthen the role of the SS in Germany's war economy.  He convinced Hitler to allow the SS to produce armaments using concentration camp labor and entrusted this new SS enterprise to Pohl and the WVHA.(11)

 

This venture was never very large or successful because of SS mismanagement, the poor quality of work performed by slave laborers, and infighting between the SS and those State agencies--such as  Speer's Ministry of Armaments--responsible for armaments production.  However, in one area--the production of V-2 rockets--WVHA's involvement in the armaments sector did meet with some real success.

 

The WVHA's activities in the A-4 program (the code name for rocket development) began in August 1943, when Hitler authorized Himmler to take charge of the development and manufacturing of the V-2.  Himmler assured Hitler that the SS, unlike the private sector, could ensure the secrecy and security needed for the A-4 program by using concentration camp labor.  The SS chief then assigned responsibility for the program to Pohl, whose WVHA was responsible for all SS armament matters, and to Hans Kammler, one of the WVHA's leading economic officials.

 

Under WVHA direction the A-4 program produced the V-2 rockets which eventually pounded London and Antwerp, causing thousands of civilian casualties.  Some 80,000 slave laborers produced these weapons in the inhuman conditions of the WVHA's Nordhausen-Dora complex, where thousands of concentration camp inmates perished from disease, starvation, and execution.(12)

 

The WVHA also had a strong relationship with private German industry, and during the war the WVHA provided hundreds of thousands of slave laborers for work principally in the private German armaments sector.  Many prisoners also labored in private consumer firms and on private farms.

 

Pohl told his Allied captors:  "All the armament firms that were in Germany came with their requests to us.  Whether it was the steel works down to the last factories, they came with requests to us."(13)  A few of the important German industries to receive labor from the WVHA included Heinkel, Messerschmitt, Salzgitter, Krupp, Siemens-Schuchert, and I.G. Farben companies.  Furthermore, the WVHA supplied labor to the massive State-owned Hermann Goering Works.  Pohl attached WVHA officials to the above firms to oversee the huge slave labor force and to advise those industries on labor matters.  The intimacy of the WVHA and the private industrial sector was further realized by Pohl's attendance at meetings of Himmler's "Circle of Friends," an informal gathering of SS economic officials with directors from private industry.  These meetings were held at regular intervals both before and during the war.  Perhaps no other Party or State agency worked in such close partnership with private industry in Germany as did the WVHA.(14)

 

No other aspect of the WVHA has received as much attention as its crucial part in carrying out "The Final Solution," Nazi extermination policies.  With the incorporation of the office of Inspector of Concentration Camps into the WVHA in March 1942, Pohl's organization was inextricably tied to the operation of both the concentration camps and the death camps of Eastern Europe.  The WVHA administered the camps, directing everything from such mundane chores as supply and sanitation to the grisly accounting of the gold the SS procured from the teeth of its dead victims.  Through its administration of the concentration camps and extermination centers such as Auschwitz, direction of slave labor, procurement of victims for medical experiments and the Nazi euthanasia program, and managing the accounting of confiscated Jewish property, the WVHA was an essential link in the chain of genocide.

 

After the collapse of Nazi Germany and the end of the war in Europe, the International Military Tribunal at Nuremberg declared that the SS was a criminal organization, and the Americans organized separate war crimes trials for the personnel of various SS agencies.  Because the WVHA played such a crucial role in carrying out the SS's racial extermination policies, several WVHA officials were tried as war criminals soon after the close of the war.

 

While some WVHA leaders like Kammler either disappeared or escaped capture by the Allies, Pohl and seventeen other WVHA leaders were not so lucky.  The Americans tried these men from January to November 1947.  Hundreds of documents and numerous eyewitnesses detailed the WVHA's function in the Final Solution.  All of the defendants were found guilty of greater or lesser crimes and fourteen of them received prison sentences of varying lengths.  Pohl and three other defendants received the death penalty, however, only Pohl was executed in the end.  The three other men, Georg Loerner, Franz Eirenschmalz, and Karl Sommer, had their sentences commuted.  Pohl was executed along with four other SS criminals in June, 1951.(15)

 

***

 

Boyd Murphree is a PhD candidate in history at Florida State University and is currently working on a dissertation entitled, "The WVHA: A History of the SS Economic Administration, 1934-1945."

 

ENDNOTES

 

1. For information on the organization of the SS, see Martin Broszat, Anatomie des SS-Staats (Olten und Freiburg: Walter-Verlag A.G., 1965) and Robert Lewis Koehl, The Black Corps (Madison: University of Wisconsin Press, 1985).

2. For an overview of WVHA operations, see Trials of War Criminals Before the Nuernberg Military Tribunals: "The Pohl Case," vol. 5 (Washington, DC: United States Government Printing Office, 1950).

3. Extracts from the Testimony of Defendant Pohl, ibid., 5: 319-26.

4. See the description of the WVHA in ibid., 5: 215-20.

5. Trials of War Criminals, 5: 214-15.

6. The role of the HSSPFs is covered extensively in Ruth Bettina Birn, Die Hoeheren SS- und Polizeifuehrer: Himmler's Vertreter im Reich und in den Besetzten Gebieten (Duesseldorf: Droste Verlag Gmbh, 1986).

7. Trials of War Criminals, 5: 259.

8. Ibid., 5: 260.

9. Ibid., 5: 309.

10. Ibid., 5: 243-45.

11. For aspects of SS involvement in armaments production see, Albert Speer, Infiltration (New York: Macmillan Publishing Co., Inc., 1981).

12. Trials of War Criminals, 5: 238.

13. Excerpts from Pohl's testimony at Nuremberg, June 3, 1946 in Nazi Criminality and Aggression, Sup. B. (Washington, DC: United States Government Printing Office, 1946-48), 1594.

14. Ibid.

15. For the WVHA's role in the Final Solution and the trial of various WVHA officials see, Trials of War Criminals, vol. 5.

 

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