THE HOLOCAUST

RESTITUTION PROGRAM -
DID IT WORK?

Daniel Schwab
Jerusalem, Israel
Although the author has made every effort to ensure
that the information in this article was correct at press
time, the author does not assume and hereby disclaim
any liability to any party for any loss, damage, or
disruption caused by errors or omissions, whether
such errors or omissions result from negligence,
accident, or any other cause.

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Introduction
Imagine finding a treasure trove of documents that reveals the forgotten history of your family
that goes back many decades. Well, that’s what happened to me when in 2009 I discovered my
grandfather’s collection of thousands of letters written, mainly in German, between himself,
friends and family members, between the 1930’s and 1969. This article describes how my family
story tells a larger story of hundreds of thousands who sought justice but found precious little.

Originally from Hanau, Germany, there is evidence of twelve members of the Schwab family who
were murdered, as part of the Nazi Final Solution for the Jews, while my grandfather Rudolph
(Ralph) fled to Belgium, Holland, the UK and eventually arrived in South Africa in 1936, leaving his
parents and brother behind. Before 1933 my great-grandfather, Max Schwab, was a well-known
and valued citizen of Hanau. A member of the boards and president of various clubs and societies,
our ancestors had been living in Hanau for over 300 years.

Ralph was clearly tormented by the tragedy, spending many

“Freedom is not a gift
thousands of hours trying to find out the truth of what happened,
from Heaven. You must
and then making legal claims against the German government. fight for it every day” “I
am someone who
Ralph spent 23 years writing thousands of letters to attain justice for
seeks justice not
his family1. Despite tremendous efforts, his restitution claims were revenge” Simon
not finalized during his lifetime, since he was killed in a hit-and-run Wiesenthal

car accident, while some of the cases were still in process2.

1
Here is the link to examples of these letters https://www.scribd.com/user/27829319/Daniel-Schwab/lists
2
Winner of the Obermayer award for assisting Jewish families after the war

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Over the years my family and I focused on building families and educating ourselves about our
Jewish history and traditions instead of thinking about revenge or compensation, however after
realizing the extent of the injustice caused to my
family and my grandfather’s wishes for justice
“Holocaust victims paid once for
articulated in the letters, I decided to investigate
being Jewish, now they should
further.
not be told that it is unseemly for
In the following chapters, I will briefly describe my them to press their claims, but
not wrong for banks to hold on
understanding of the topic of Restitution, what the
to victims' assets”. Cohen,
Nazis stole, how my grandfather attempted to claim
Richard. "The money matters".
restitution, what the results were and what could still Washington Post (December 8,
be done to achieve sufficient restitution. 1998).

What the Nazis stole

The Schwab family story is just one example of many thousands. It is estimated that the total
value of the Nazi debt to the Jewish People is approximately $350bn in 2007 dollar terms3.
Most of this includes amounts that are often overlooked when talking about the Holocaust in
financial terms, such as loss of income, unpaid wages for services provided during slave labour
camps, loss of immovable property, confiscated bank accounts, unpaid insurance policies, art
works, coin collections, Judaica and other valuables that were either stolen, forcibly sold or
destroyed by Nazis.
Nazi Germany relentlessly expropriated the assets of German Jews through numerous measures
after the enactment of the 1935 Nuremberg Laws, which included special discriminatory taxes,
blocked accounts, the "Aryanization" of property, and outright confiscation. In addition, Nazi
restrictions, boycotts of Jewish businesses and the ejection of Jews from professions forced Jews
to liquidate their possessions under duress for a fraction of their value. Jews who fled Germany
before deportations in 1941 were forced to pay a heavy "emigration" tax (Reichsfluchtsteuer)
and the (Judenvermogensabgabe), a property tax the Germans initiated after Kristallnacht in
1938, contending that, having "provoked" the outrage of the German people, the Jews had to
pay for the damages.

3
“Restitution of Holocaust-Era Assets: Promises and Reality”; Sidney Zabludoff, March 1, 2007, Jewish
Political Studies Review 19:1-2 (Spring 2007)

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By the end of the war, those not murdered had to pick up the pieces of their lives and begin
rebuilding, while believing in the future. Restitution or compensation was something that many
people dreamed of but were not sure how so many crimes could be restituted. Fortunately
there were forces, both amongst the Jewish peoples’ leadership and the American government,
who believed in, and were able to establish, a meaningful restitution program.

Restitution and Compensation

Close to the end of the war, various Jewish organizations approached the Allied Forces, making a
case for the return of stolen property to the Jewish people, in three broad categories of
claimants:

1. Individual families and their legal heirs;

2. Communities;
3. Victims who had no surviving heirs (heirless property).
After a slow start, negotiations between Germany and Israel began in 1951, resulting in the
Wassenaar Agreement, which became the basis for subsequent German legislation of
compensation payments to individuals. The foundations of individual claims were formalized in
German law and improved upon in the Luxembourg Agreements Protocol 14.

LAG: LASTENAUSGLEICHSGESETZ (Equalization of Burden Law): following various amendments,

this law was eventually applied to survivor claimants who held German nationality between
1933 and May 8, 1945, and whose land, bank accounts, houses, businesses, etc., were either
confiscated by the Nazis or relinquished by the
owner under duress before or during the war.
“My work is a warning to the
A key organization that assisted victims to murderers of tomorrow” “Brothers I
recover stolen assets was the United did not forget you” “if we ignore the
Restitution Organization (URO). The URO was past, then the past will return” Simon
Wiesenthal
a legal aid society to help Jewish claimants
regain their property. The URO represented
300,000 victims5 via offices in 15 countries around the world. The procedure was still extremely

4
See appendix 3 Nana Sagi page 231
5https://www.historians.org/publications-and-directories/perspectives-on-history/april-2000/a-source-for-holocaust-research-the-
united-restitution-organization-files footnote 7

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complex, and although the URO spent much time filing these claims, success was minimal: in
the words of former URO director, Norman Bentwich: "great labor for small returns."6

In the South African URO office, a 1956 report7 included 483 claims and 169 clients. By
September 19658 there were four legal case workers and six clerical staff. A total of 1,500 claims
were submitted by 900 claimants, but of particular concern was that there were not enough
doctors to evaluate cases in South Africa.

What was recovered

Unfortunately, results were far from satisfactory. The case law9 illustrates that even when Jews
attempted to assert claims for the restitution of property, national and international legal
barriers prevented them from doing so10.

“West Germany's acknowledgement of its responsibilities, coupled with the fact that the vast
majority of displaced Jews had neither the financial resources nor the will to independently
pursue claims, has led to a paucity of post-war litigation regarding claims for reparations and
the return of property confiscated during the Nazi era.”11

Despite all these good intentions and efforts, the Germans, continued to delay, disrupt and
discourage the claims process. For example, if you had survived Auschwitz, yet your entire
family was killed, insurance companies were still asking for death certificates despite knowing
full well the Nazi’s did not give out death certificates.

6
1. Interpretive Guide to the United Restitution Organization Claims Files and 2. the Leo Beck Institute in Guide to the United
Restitution Organization New York Office Collection 1950-1988 3. USA Library of Congress United Restitution Organization files
4. London Wiener Library – University of Sussex German Jewish Family Archives
5. Israel Tel Aviv and Jerusalem at the Claims Conference on Jewish Material Claims Against Germany offices and the National Library
of Israel at Central Archives for the History of the Jewish People – United Restitution Organization files; Files from several URO
offices were deposited at the CAHJP between 1979 and 2010: London (administration & personal files). Frankfurt (administration &
personal files), Berlin (personal files), Munich (personal files), Cologne (personal files), Tel Aviv (administration and personal files)
and Jerusalem (personal files). The administration files in the CAHJP are open to the public, while the personal files are still closed in
order to protect privacy rights. 6. Germany URO court related files
Die United Restitution Organisation und ihr Beitrag zur Entwicklung des Entschädigungsrechts in Deutschland
and Tel Aviv University ‫ קטלוג חומרים ארכיונים בנושא השואה‬and Claims Resolution Tribunal of the Holocaust Victim Assets Litigation
and the German Finance Ministry Statistical Summary upto 2016 (Leistungen der öffentlichen Hand auf dem Gebiet der
Wiedergutmachung Stand: 31. Dezember 2016) ‫ שמג‬Guide to the Council of Jews from Germany Collection
Undated, 1936-1994, bulk 1950-1977 Leo Baeck Institute Center for Jewish History New York, USA. See also A Source for Holocaust
Research: The United Restitution Organization Files Anne Rothfeld April 2000
7 URO report written on 8th November 1956 to Mr E. Haas at the URO Frankfurt office prepared by Mr H. Reichmann, cc’d. to Dr.

May, Mr. Ferencz and Mr. Brotman (located in Jerusalem, Israel CAHJP URO files. See above)
8 On 13th September 1965, prepared by A.G. Brotman, of the London office of URO to the Frankfurt office of URO, Dr. Kurt May

(located in Jerusalem, Israel CAHJP URO files. See above)

9
Pernikoff v. Kennedy involved the seizure of Pernikoffs corporation by the Nazis 219 F. Supp. 854, 855 (D.C. Cir. 1963
10 STEPHEN A. Denburg page 240 see Wolf v. Federal Republic of Germany, No. 93-C7499, 1995 U.S. Dist. LEXIS 5860,
11
Denburg page 241

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Although it is unclear exactly how much financial compensation has been collected in the
name of Holocaust survivors to date, it is estimated that, as a result of negotiations in the
1950’s12, approximately $70 billion13 had been paid out by Germany, directly to 500,000
Holocaust survivors in 67 countries, in the form of small monthly pensions over the past 70
years14. $750 million has been given to organizations that support Holocaust survivors and
another $6 billion were secured from the German government and paid by the Claims
Conference in additional programs created since 1980. This was approximately 20% of the total
amount of assets that were estimated to have been stolen from the entire Jewish population
during the period 1933 to 1945.15This is even more distressing when one considers that the
Reconstruction Marshall Plan effectively funded Germany post WW2 to the tune of $150bn in
2017 terms16.

Most experts acknowledge the many shortcomings of this program;

“It is a substantial sum, but clouds the fact that tens of thousands of Nazi victims received
only minimal payments, or were excluded from compensation programs altogether”17.

These funds were much needed; the “lion’s share” going to helping the survivors cope with
poverty and ill health.18

This amount, however, does not refer directly to property

that was stolen from individuals and then was recovered "Hast thou killed and also
or compensated for. If one focusses only on those cases, taken possession?!" 1 Kings
21:19
it is closer to approximately 5%, or a quarter, of the
$70bn, i.e. $17bn19.

In addition, some of that money went towards the administration of these funds. According to
the Claims Conference report, $30,307,071, or slightly above 8% of the total amount, was spent

12 http://www.yivoencyclopedia.org/article.aspx/Holocaust/Restitution_Reparation_and_Indemnification
13 Ronald W. Zweig, German Reparations and the Jewish World, A History of the Claims Conference 2nd edition page 186.

15
http://fellowships.claimscon.org/program/saul-kagan/ and interview with Saul Kagan
https://collections.ushmm.org/search/catalog/irn524114
16
Marshall Plan and Reconstruction of Germany
17 Fifty Years of Holocaust Compensation - BY MARILYN HENRY
18 Claims Conference 2015 Global Report, states that in 2015 alone
19
http://www.nytimes.com/…/israel-sets-holocaust-da

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on administration in 201420. In 2013 the Claims Conference reports showed that $33.2 million
was spent for administration costs.21

Numerous instances demonstrated the inflexible and burdensome way in which the restitution
laws were being implemented22. For example, 74,000 claims for damage to health were still
pending in 1964, most of which were attributable to the requirement that the Holocaust
survivor proves that the damage to his health was a result of Nazi persecution.

The second major piece of restitution legislation was the Federal Restitution Law (BRUEG),
regarding the restitution of personal property.23

“During the 1952 negotiations with the Claims Conference it was already apparent that
the limitation of restitution had saved West Germany billions of DM24. By paying $450
million, West Germany had met claims to the restitution of heirless property in Eastern
and Western Europe, without having to acknowledge a legal obligation to restitute
property stolen in the territories occupied by Nazi Germany25. “Germany saw itself as a
victim of war, claiming this as a key reason that restitution had limited results there. The
gradual extension of the definition of Nazi injustice to include fiscal plundering and theft
by the German occupation authorities was undertaken only to a very limited extent, if at
all. The overall political and ideological development of West Germany, which hinted at

20 Assuming 8% average for administration on the total equals

21 Karen Heilig, From the Luxembourg Agreement to Today: Representing a People, 20 Berkeley J. Int'l Law. 176 (2002).
Available at: A report entitled "Twenty Years Later-the Activities of the Conference on Jewish Material Claims Against Germany
1952-1972" details the expenditures during this first phase of the Claims Conference's activities. In general, approximately 76% of
the funds allocated by the Claims Conference during that phase were for the relief, rehabilitation and resettlement of Nazi victims,
20% of funds were used for cultural and educational reconstruction, 1.5% for the legislative programs of the Claims Conference, and
2.5% for administration
22
See Christian Pross Table 8 in Appendix B Bundesstatistik Kurt R Grossmann - http://findingaids.cjh.org/?pID=242282
23 Federal and State Laws Regarding Holocaust Restitution* The Commission thanks Professor Michael Bayzler at Whittier Law School

and Natasha Shuqum, J.D., Whittier Law School 99 for their cooperation. http://govinfo.library.unt.edu/pcha/lawsinfo.htm
24
The United State Holocaust Memorial Museum Chapter on Restitution and Indemnification
https://www.ushmm.org/research/research-in-collections/search-the-collections/bibliography/asset-restitution-and-
indemnification Location of books in libraries http://www.worldcat.org/title/victims-fortune-inside-the-epic-battle-over-the-debts-
of-the-holocaust/oclc/48501045 Junz, Helen B. Where Did All the Money Go?: The Pre-Nazi Wealth of European Jewry. Berne:
Staempfli Publishers, 2002. (D 804.7 .E26 U86 2002) A close economic and statistical analysis that seeks to estimate the wealth of
European Jewry in Austria, Germany, France, the Netherlands, Hungary and Poland on the eve of Nazi domination of the region.
Particularly tries to provide some indication of the amount of assets that could have been moved to safe haven destinations.
Includes numerous data tables, a chronology of anti-Jewish laws, and a bibliography.
25
Robbery and Restitution: The Conflict Over Jewish Property in Europe - See page 102 to 103 and in particular page 104 section
titled The Federal Restitution Law: Restitution Extended to Include Property Thefts Throughout Europe
https://books.google.com/books?id=sEVJzfNbuUwC&pg=PA279&dq=Where+did+all+the+money+go?+:+the+pre-
Nazi+era+wealth+of+European+Jewry&hl=iw&sa=X&ved=0ahUKEwiWq93Cx97RAhVN-
2MKHX6BCrIQ6AEIKDAC#v=onepage&q&f=false

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 a new understanding of the past, was barely noticeable in the way the restitution
program was implemented.

There is also a question as to whether those who were in charge of the judicial system in
Germany were in fact directly or indirectly involved in the Aryanization process during
the Nazi period. “The question raises the problem of the continuity in administrative
personnel after 1945 and its influence on
the restitution process”. "You have committed murder,
“Restitution received virtually no support now do you wish to become the
victim's heir?"
or positive impulses from within Western
Eli Wiesel, Shoah survivor, Writer,
German society”26. Restitution cannot be
Nobel Laureate
regarded as one aspect of a general
movement for the construction of civil
society. Whenever the West German population took the initiative, its aim was usually
not to further restitution but rather to mitigate its consequences, or stop its progress
altogether”. 27

Compensation for death was minimal, or close to zero. The State of Israel received funds “on
their behalf” and invested the funds into infrastructure and state companies. Victims’
descendants have suffered tremendous mental and physical hardships trying to overcome the
damage inflicted on their ancestors. While money is still being paid out to survivor victims in the
form of small pensions,28 soon there will be no survivor victims alive. Does this mean the
suffering has ended?

Take, for example, insurance policies owned by Jews. There were an estimated 875,000 life
insurance and annuity policies, valued at $600 million, outstanding in 1938. And, while Western
countries conducted limited restitution of policies for extremely low values, by 2007 the unpaid
amount from policies in force in 1938 was conservatively estimated to be worth $18 billion. This
estimate by CIA economist Sidney Zabludoff, is conservative, because it uses a 30-year U.S. bond

26 Robbery and Restitution: The Conflict Over Jewish Property in Europe Page 108
27 The establishment in 1950 of the Federal Association for Fair Restitution in Germany, “Remembrance, Responsibility, and the
Future” http://www.jewishvirtuallibrary.org/holocaust-compensation-and-restitution-by-country
28
http://www.nytimes.com/2012/11/18/world/europe/for-60th-year-germany-honors-duty-to-pay-holocaust-victims.html

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yield to bring it to current value, whereas insurance companies also invest in equities and real
estate.29

When the International Commission on Holocaust Era Insurance Claims (ICHEIC) closed its doors
in March 2007, it had paid less than 3% of the unpaid value of the policies and had left several
hundred thousand policies unaccounted for. ICHEIC paid out $250 million in recognition of
insurance policies, $31 million in $1,000 “humanitarian payments” and allocated another $165
million for “humanitarian projects” through the Claims Conference (including funds unrelated to
survivors’ needs). So, even if one adds all of ICHEIC’s claimed payments, totaling about $450
million, it generated less than 5% of the money stolen from European Jews’ insurance funds.

In “Paying for the Past”30 physician and historian Christian Pross untangles the complicated
history of reparations in West Germany. Pross's landmark research exposed the hostility of the
West German people and the bitter political opposition within the government toward
reparations legislation and the Holocaust victims seeking restitution. One of Pross's most
disturbing discoveries was that victims were frequently re-traumatized by the reparation
process itself. Some were forced to undergo medical and psychological examination by dozens
of physicians to substantiate their claims of abuse. Many had claims still pending after twenty
years of waiting.

Restitution in France as a model

In stark contrast, France31seems to have achieved almost 100% restitution in favor of the victims
for the following reasons:

29 Testimony of Sidney J. Zabludoff before the U.S. House of Representatives Financial Services Committee, February 7, 2008, and
before the House of Representatives Foreign Affairs Committee Subcommittee on Europe, October 3, 2007. Also see Testimony of
Samuel J. Dubbin Testimony before the United States House of Representatives Committee on the Judiciary Subcommittee on
Commercial and Administrative Law Hearing on HR 4596: The Holocaust Insurance Accountability Act of 2010 September 22, 2010
and The Insurance Industry and the Economies of Central and Eastern Europe,1918-1945 Holocaust Claims Processing Office New
York State Department of Financial Services
30 Paying for the past: the struggle over reparations for surviving victims of the Nazi terror / Christian Pross; translated by Belinda

Cooper;1998 Baltimore: Johns Hopkins University Press, https://www.amazon.com/Paying-Past-Struggle-Reparations-

Surviving/dp/0801858240
31 Robbery and Restitution – The Conflict over Jewish Property in Europe Edited by Martin Dean, Constantin Goschler and Philipp

Ther
Published in Association with the United States Holocaust Memorial Museum (USHMM) page 140 - The Special Case of France: A
Combination of Political and Social Factors

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 1. Only 25% of France’s Jews were deported, compared to more than 80% from other
European countries. Most victims remained in their local communities and knew the
culture, language and legal system, alleviating the claims process.
2. The French government and Charles de Gaulle strongly opposed anti-Semitism and
many authorities entrusted with the task of restitution were led, or inspired, by
academics and politicians who were part of the Resistance against the Vichy
government
3. There was strong legal backing to void any confiscation on the basis of being Jewish.
4. Unlike in Germany, there was a national consensus on the issue of reparations.
5. The Contemporary Jewish Documentation Center, founded in 1943, lobbied on behalf of
victims without seeking publicity, and the relative lack of public involvement avoided
legal connection between victims, their heirs and the authorities, with far lower costs
and higher success rates favorable to the victims. This helped to avoid setting up a
market for compensation funds.
A 1997 investigation, headed by historians associated with the Sorbonne and Central
National de La Recherche Scientifique, queried facts and, directed by Pierre Drai, former
President of the highest appellate court, and media involvement, resulted in the Matteolli
Commission, accepted by everyone in April 2000.

Why reopen claims now?

Can we teach our children about justice and fairness when such a grave crime against their
ancestors was committed and the perpetrators did not pay for their crimes? Many Nazis got
their jobs back, their lives back and held high office in the German government.

Is all that remains of our families, their names that appear in the database of the victims in
Yad Vashem? There is no burial place for my family who were victims. Should the heirs of the
perpetrators not seek ways to atone for the sins of their fathers? Should the heirs of the victims
not be consulted to determine
forgiveness or compensation, as is
“For your benefit, learn from our tragedy” “It is not a
required by Jewish law? How is one
written law that the next victims must be Jews” “He
to ignore the fact that corporations was dealing with a crime larger than death” “We must
who aided and abetted the Nazis, build a defense against repetition” Simon Wiesenthal

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such as IBM, SNC Lavalin, Volkswagen, BMW etc., have not paid reparations for crimes
committed and yet they are allowed to continue operating in Western democracies, claiming to
be good corporate citizens?

Do the victims not deserve justice? Do we not owe this to our victims, so that they will never
be forgotten? There is a great need to reach closure, not only for the victims and their families,
but also for the perpetrators and their descendants.

Holocaust historian, Michael Berenbaum, explained:

“Survivors have become more articulate over the years, more active in their own
organizations and in the larger Jewish and secular community. With this newfound role
comes a sense of pride and dignity. They want to fully participate in determining their
needs, in pressing for their interests, something they were far less capable of doing in the
immediate post-war era, as they were rebuilding their lives, and in the 1950’s, adjusting
to life in America and Israel32.

The Schwab Family Claim

Rudolph was the eldest son of the former jeweller and precious-stone trader, Max Schwab, the sole
proprietor of Abr. Schwab & Co, located at 15 Franzoesische Allee, Hanau. He received messages that his
father died in a concentration camp, on 19th February 1942. He heard that his mother, Martha Schwab,
and his younger brother Hans Ferdinand Schwab, were deported around 6th June 1942. He has not heard
from them since and assumes they are dead. Rudolph is the sole living heir to his parents.

In 1938 Max was forced to sell his two houses at 15 and 13 Franzoesischer Allee, paid back the mortgages
registered to them and supposedly had a sizeable sum of money left over. Max also owned the furnishings
in his store and various other pieces of equipment, as well as large collection of minerals, a collection of
old and contemporary coins, and a valuable collection of stamps 33.

Key items that were stolen:

• One Bluethner piano, polished to a shine;

• One oil painting by an old Italian master painter from 1670 or thereabouts, from the
Titian School, depicting a young woman, a young man and an old woman;

32 Email from Michael Berenbaum to Michael Bazyler July 17, 2002

http://www.berenbaumgroup.com/joomla/index.php?option=com_content&view=article&id=49&Itemid=37
33
Rudolph’s letter to the Aid Centre for the Politically and Racially Persecuted, Hanau

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 • A life-size oil painting of his grandfather;
• Around a dozen sketches, copper etchings, family portraits, etc.

As a Jew, Max was obliged to pay a number of different taxes, such as the obligation to hand over jewelry,
the billions tax [literal translation], the 15% special tax on Jews, the fee for evacuation from the Reich, etc.
Max had an account at the Staedtische Spaarkasse Bank and later possibly at the Dresdner Bank in
Hanau34.

During the court proceedings several witnesses testified, confirming the Schwab claims.

For example, a section from the court’s protocol on the witness statements in this case, from
the hearing on 14th February 1953 - Regional Court, Restitution Chamber:

Josef Weigelt35, 49 years old, invalid, resident of Hanau, of no relation to the claimant. Weigelt was Max
Schwab’s neighbour for many years. Weigelt saw, with his own eyes, that Max’s Biedermeier room was
smashed to pieces on Kristallnacht. It was repaired a few days later. After that the Biedermeier room, a
single-bed bedroom belonging to Max’s son, an office desk, two office chairs and a large oil painting were
confiscated. Ortsgruppenleiter Bender carried out this confiscation about three weeks after Kristallnacht.
Weigelt saw how the items were transported away by SA members. As for as Weigelt remembers, Max
Schwab’s jewelry and diamonds were collected and taken away by the Landesleihbank. But Max got these
items back. Then, in 1940, this jewelry and the diamonds, as well as a private collection of coloured stones,
were confiscated by two SA men, two SS men and a civilian. Max Schwab’s wife was physically abused that
night, as were his son and Max himself. A collection of stamps was among the confiscated items. Max
showed Weigelt the traces of the abuse he had suffered. Weigelt doesn’t know what happened to the
confiscated items. Max Schwab found out later that the Gestapo had approved the confiscation. Weigelt
also knows that a number of oil paintings were cut up on Kristallnacht.

The claims can be summarized as follows:

o LOSS OF FREEDOM - Max; Hans;

o BUSINESS (Abraham Schwab & Co.) - Precious stones and furniture;

o LOSS OF LIFE - Max was killed, his wife Martha would have had a claim. Since she died (in Auschwitz),
her son inherited this claim. Properties;

34several questions, following some of my research into the topic of resitution

35Josef Weigelt, a retired diamond cutter, knew both Max Schwab and his son (Rudolph). Weigelt’s father had a large diamond-
cutting business in Hanau and did a lot of business with Max Schwab. Josef Weigelt, merchant: describes office and apartment where
he visited often, both for business and socially. Mentions an estimate of jewelry in safe, family wealth in total 400 000 to 500 000 RM
(more than $1m USD in today’s money).

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o LOSS OF FREEDOM - Martha Schwab (from Sept .1941 - “Judenstern”, to Jan. 1945 - deportation and
murder);

o COST OF EMIGRATION - Rudolf had fled to Belgium > Holland > South Africa. In 1961 URO Attorney Dr.
Spier goes to court;

o DAMAGE OF PROFESSION: for the loss of his profession36;

To understand how complex the restitution process was, Rudolph had to communicate with more
than sixteen organizations involved in restitution37. Despite major efforts invested by Rudolph and
his representatives in Germany;

“JRSO, Legal Dept. tries to bring restitution matters to a close. In April 1962 Heinz Herrmann composes a
12-page “Memorandum“ for JRSO, summing up the various aspects of the claimant. But even in 1964 the
cases are not yet finalized. So both the restitution and compensation cases have not come to a proper
ending during Rudolf’s lifetime”.38

In total, the estimated compensation my grandfather received before he died is approximately

5% of the total value of the claim.

Where Did Things Go Wrong?

As was alluded to above, restitution programs not only faced difficulties caused by Germany, but,
in addition the Claims Conference, which is an organization that was supposed to represent
victims and ensure full restitution, was not smooth sailing. The following is a list of highly
problematic events that mired the Claims Conference’s reputation and might explain the reason
my grandfather’s efforts did not produce satisfactory results:

• Former employees of the Claims Conference's New York office,39Semen Domnister, Oksana
Romalis and Luba Kramrish, were found guilty and twenty-eight people charged in the fraud
scheme had earlier pleaded guilty.

36 A court (Landgericht Frankfurt) in 1962 refuses to grant a 20% increase on account of his lacking social security insurance.
37 Central Office for the Management of Assets/Property, Bad Nenndorf; Council for Refugee Settlement, London; Registry Office,
Ingelheim; Office for the Control of Property and Restitution, Offenbach; Office for Controlled Assets/Property, Worms; District
Court, Cologne; Superintendent Schwinn, Secret State Police, Darmstadt; Regional Court, Restitution Chamber, Mainz; Regional
Court, Restitution Chamber, Frankfurt; State Ministry of Hesse, Ministry of the Interior; Restitution and Damages Department,
Wiesbaden; Office for the Control of Property/Assets and Restitution, Worms; South African Board of Jewish Deputies to United
Restitution Organisation, Frankfurt; Office for Restitution, Cologne; Heinz Hermann, Restitution Office (S.A. Jewish Board of
Deputies); Arbitration Board for Restitution, Mannheim District Court, Mannheim; Senior Tax Administration, Cologne to Regional
Court, Restitution Chamber, Mainz.
38 On Tue, Nov 8, 2011 at 3:19 AM, according to a report prepared in 2011 by Dorothee Lottmann-Kaeseler
39
http://www.haaretz.com/jewish/news/.premium-1.534609

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• Following concerns raised by many people involved in the restitution program regarding
alleged fraudulent behavior, respected government official, Shmuel Hollander, ordered, and
subsequently authored, an independent report in 2013, about “Fraud at the Claims
Conference”. As a result, former Association President, Samuel Norich, of the Jewish Labor
Committee on the board, and others resigned.40
• Since the establishment of the Claims Conference there was always concern that it was
applying a strategy of “bait and switch”, i.e. it was fighting on behalf of Holocaust victims,
thus claiming funds for their benefit, but once they received the funds, a large portion of the
money41 was given to non-survivors and their heirs. Another major concern was that the
Claims Conference conflicted with individual Holocaust survivor claims, since it had secured
the designation of “Successor” i.e. receiving property and claims that were not claimed by
Holocaust victims/survivors of their heirs.42
• The Washington State Insurance Commissioner, who closely monitored the Holocaust
insurance settlement process, raised concerns in a 2004 report about the “potential conflict
of interest” arising from the Conference’s involvement in both reviewing and approving
“humanitarian payments” to claimants, while playing a key role in determining the use of
any unspent funds in the humanitarian fund. “Simply put,” the report stated, “the less
money distributed through humanitarian payments to claimants, the more will be left for
‘other purposes.’”
• Former Secretary of State, Lawrence Eagleburger, admitted to the House of Representatives
Committee on Government Reform (September 2003) that ICHEIC had spent far more in
administrative expenses (including first class travel) than it paid to claimants.

One could summarize criticism of the Restitution program as follows:

1. The first is that most survivors are not represented on the Board of the Claims
Conference. As a result, many survivors do not accept the leadership of the Claims
Conference as their representatives.
2. Secondly, survivors are upset that funds are being provided to non-Holocaust
survivors for various educational activities.

40 http://forward.com/news/breaking-news/180242/julius-berman-embattled-chair-of-claims-conference/
41 Between 10 and 20% of the total
42 This theory needs to be checked. What did the CC do to ensure that cases were being dealt with effectively? Was there an appeals

process?

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 3. Third, and most importantly, the Claims Conference, together with the State of
Israel and US Government representatives who were involved in negotiations with
Germany, traded the right of individual victims to claim complete restitution in
return for “legal peace”. They were able to achieve this by allowing the German
legal system to operate inefficiently and did not put a robust appeals process in
place. We do not know how many victims with valid claims were turned away for
non-substantive reasons.43

Recommendations
Upon deciding that I wanted some form of justice, I initially did not know what I was looking for.
Was I looking for a specific financial amount or compensation? Was I looking for the return of
property? Perhaps we should look to the Claim Conference’s requirements as a country’s
measure to fulfill fair restitution:

“In facing their responsibilities and addressing the issue of the restitution of confiscated
property, we will encourage countries to pass legislation and implement claims processes that
incorporate certain basic principles.

• First, laws must be non-discriminatory – There should be no citizenship or residency

requirement; if a person, or member of his/her family, owned property, s/he should be eligible
to claim it, regardless of where they live or what passport they carry.

• Second, laws must cover property confiscated during the Holocaust – Often, restitution or
compensation laws include only property nationalized during the period of the Communist
regime. Most formerly Jewish-owned property, however, was taken prior to Communist
nationalization and must be covered by restitution laws.

• Third, restitution should be in rem – The actual property in issue should be returned
whenever possible, particularly when the government (at whatever level) holds the property.

• Fourth, substitute property or fair compensation must be provided when in rem restitution
is not possible – In the past, countries have often claimed that, because property has so often

43
Ronald W. Zweig is a Professor of Modern Jewish History at Tel Aviv University. He was educated at the University of Sydney
(Australia) and Cambridge University (U.K.). He is the author of three books, including German Reparations and the Jewish World: A
History of the Claims Conference. His most recent work, The Gold Train, was published this year. It is a study of the looting of
Hungarian Jewry and the fate of their assets. Professor Zweig is currently on sabbatical leave, teaching at New York University. Why
does he not deal with legitimate criticism of the CC in his books?

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changed hands and buildings were rebuilt, renovated or otherwise modified, it is impossible to
restitute to the former owner.

It is incumbent, therefore, for governments to provide alternate property of equal value and,
if that too is not available, compensation to the former owner. Moreover, compensation
should not mean a minimum token amount. It should mean the fair market value of the
property.

• Fifth, heirless formerly Jewish-owned property should be used to help Holocaust victims.

Many Jewish property owners and their family members were murdered, leaving much
immovable property confiscated during the Holocaust era heirless. Such assets must be
identified and used primarily to assist Holocaust survivors in need.

Finally, the Claims Process:

• Should be non-bureaucratic – The process should be simple, making it easy for all
potential claimants – many are elderly, live in foreign countries, and are of modest
means – to apply without legal obstacles and at no, or low, cost.
• Should be fair – Minimal documentation should be required, especially when limited
compensation is offered. In addition, rules relating to privacy, archival confidentiality
and establishing that one is an heir must be simple, enabling claimants to establish
property ownership and the right to claim quickly.
• Should be easily accessible and transparent – An easily identifiable, centralized system
should be established and/or designated to accept and process claims. This will also
maximize uniformity of decision-making, as a complaint often heard in countries with
restitution processes has to do with inconsistent decisions.
• Claims should also be accepted over the internet and in multiple languages. Decisions
should be made within a reasonable time after the claim is submitted and the reason(s)
for decision should be clearly stated.
The process must be efficient – Claims should be decided within a reasonable time after
submission and restitution or compensation be delivered quickly. Too often, restitution

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legislation sets out a lengthy, protracted payment schedule, sometimes taking longer than a
decade to complete.44

Conclusion
Despite decades of effort by various parties, the results of the restitution process have been
disappointing. At the same time, there are major efforts to address all outstanding claims. For
example, in 2005 a Study45 called “First Global Report on Restitution Of Jewish Property 1952 –
2004” was submitted To Minister Natan Sharansky Chairman Of Ministerial Committee On
Restitution Of Rights And Jewish Property.46In 2014, there was a hearing in the United States
House Committee on Foreign Affairs called “The Struggles of Recovering Assets for Holocaust
Survivors”, which made proposals to address outstanding issues mainly related to insurance
policy claims. In April 2017, the European Shoah Legacy Institute published a report47 titled:
“Immovable Property Restitution” authored by Professor Michael Bazyler which outlined the
current status of restitution issues around the world. The report was presented at the
conference48 held in Brussels, Belgium called “Unfinished Justice: Restitution and
Remembrance”. These efforts, combined with individual efforts for restitution of art for
example the famous “Woman in Gold” story, are ongoing and there is no end in sight. In
conclusion, despite the passage of time, it seems the wounds of the Holocaust are felt by many
in a deep way that transfers from generation to generation. It seems that we have yet to find a
suitable way to satisfactorily deal with the implications of the Holocaust and until such time as
community leaders, academics, courts and others address the topic in a meaningful way, we will
probably have to deal with the legacy of these crimes for many years to come.

44 HOLOCAUST ERA ASSETS CONFERENCE -Prague, June 2009 - Speech by Gideon Taylor - Executive Vice President of the Conference
on Jewish Material Claims Against Germany; Mordechai Hareli wrote in Mizkar January 2016 page 22 “The physical debt the German
owe to survivors” -‫מרדכי הראלי מעמותת ארגון עובדי הכפיה תחת שלטון הנאצים‬
45 http://www.lootedart.com/NMW90E876671
46 State Of Israel Office Of The Minister For Jerusalem & Diaspora Affairs
47 http://shoahlegacy.org/restitution-of-immovable-property/
48
http://unjust17.shoahlegacy.org/

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