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against the United States. The Nazis were Draper's direct partners in
Berlin and New Jersey: Alexander Kreuter, residing in Berlin, was
president; Frederic Brandi, whose father was a top coal executive in the
German Steel Trust, moved to the United States in 1926 and served as
Draper's co-director in Newark.
Draper's role was crucial for Dillon Read & Co., for whom Draper was a
partner and eventually vice president. The German Credit and Investment
Corp. (GCI) was a "front" for Dillon Read: It had the same New Jersey
address as U.S. & International Securities Corp. (USIS), and the same man
served as treasu rer of both firms. Note #2 Note #4
Clarence Dillon and his son C. Douglas Dillon were directors of USIS, which
was spotlighted when Clarence Dillon was hauled before the Senate Banking
Committee's famous "Pecora" hearings in 1933. USIS was shown to be one of
the great speculative pyramid schemes which had swindled stockholders of
hundreds of millions of dollars. These investment policies had rotted the
U.S. economy to the core, and led to the Great Depression of the 1930s.
But William H. Draper, Jr.'s GCI "front" was not "apparently" affiliated
with the USIS "front" or with Dillon, and the GCI escaped the congressmen's
limited scrutiny. This oversight was to prove most unfortunate,
particularly to the 50 million people who subsequently died in World War
II.
Dillon Read hired public relations man Ivy Lee to prepare their executives
for their testimony and to confuse and further baffle the congressmen. Note
#2 Note #5 Lee apparently took enough time out from his duties as
image-maker for William S. Farish and the Nazi I.G. Farben Co.; he managed
the congressional thinking so that the congressmen did not disturb the
Draper operation in Germany -- and did not meddle with Thyssen, or
interfere with Hitler's U.S. moneymen.
Thus, in 1932, Willam H. Draper, Jr. was free to finance the International
Eugenics Congress as a "Supporting Member." Note #2 Note #6 Was he using
his own income as a Thyssen trust banker? Or did the funds come from Dillon
Read corporate accounts, perhaps to be written off income tax as "expenses
for German project: race purification"? Draper helped select Ernst Rudin as
chief of the world eugenics movement, who used his office to promote what
he called Adolf Hitler's "holy, national and international racial hygienic
mission." Note #2 Note #7
W.S. Farish was publicly exposed in 1942, humiliated and destroyed. Just
before Farish died, Prescott Bush's Nazi banking office was quietly seized
and shut down. But Prescott's close friend and partner in the
Thyssen-Hitler business, William H. Draper, Jr., "neither died nor moved
out of German affairs." Draper listed himself as a director of the German
Credit and Investment Corp. through 1942, and the firm was not liquidated
until November 1943. Note #2 Note #8 But a war was on. Draper, a colonel
from previous military service, went off to the Pacific theater and became
a general.
General Draper apparently had a hobby: magic -- illusions, sleight of hand,
etc. -- and he was a member of the Society of American Magicians. This is
not irrelevant to his subsequent career.
The Nazi regime surrendered in May 1945. In July 1945, General Draper was
called to Europe by the American military government authorities in
Germany. Draper was appointed head of the Economics Division of the U.S.
Control Commission. He was assigned to take apart the Nazi corporate
cartels. There is an astonishing but perfectly logical rationale to this --
Draper knew a lot about the subject! General Draper, who had spent about 15
years financing and managing the dirtiest of the Nazi enterprises, was now
authorized to decide "who was exposed, who lost and who kept his business,
and in practical effect, who was prosecuted for war crimes." Note #2 Note
#9
(Draper was not unique within the postwar occupation government. Consider
the case of John J. McCloy, U.S. Military Governor and High Commissioner of
Germany, 1949-1952. Under instructions from his Wall Street law firm,
McCloy had lived for a year in Italy, serving as an adviser to the fascist
government of Benito Mussolini. An intimate collaborator of the
Harriman/Bush bank, McCloy had sat in Adolf Hitler's box at the 1936
Olympic games in Berlin, at the invitation of Nazi chieftains Rudolf Hess
and Hermann Goering.) Note #3 Note #0
William H. Draper, Jr., as a "conservative," was paired with the "liberal"
U.S. Treasury Secretary Henry Morgenthau in a vicious game. Morgenthau
demanded that Germany be utterly destroyed as a nation, that its industry
be dismantled and it be reduced to a purely rural country. As the economic
boss in 1945 and 1946, Draper "protected" Germany from the Morgenthau Plan
... but at a price.
Draper and his colleagues demanded that Germany and the world accept the
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