PRE-WAR GERMANY - RAILWAY TRANSPORTATION

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CIA-RDP67-00059A000500050007-4
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RIFPUB
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R
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15
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December 12, 2016
Document Release Date: 
September 25, 2001
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7
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REPORT
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Approved For Release 2001111101 : CIA-RDP67-00059AO00500050007-4 (PRE-WAR) ... I Approved For Release 2001111101 : CIA-RDP67-00059AO00500050007-4 Approved For Release 2001/4 gi4 P67; 00059AO00500050007-4 PREWAR GhPM;ANY - RAILS.AY TPANSPORTATION A0 POLICIES lo The Reichsbahn law of July 4, 1939, was the final definition of the position of the German National Railroads its inter- nal organization& its financial status, its relationship to the Government and other public bodies and undertakings, Paradoxically;, the Peichabahn must be described as a com- pletely state-owned enterprise which-still enjoyed financial, administrative end.. operating autonomy,, As a juristic person. it adrinistered all its operations under its own responsi- bility, Its peculiar status under the legal device of a Sonderverrriogon des Peiches" (Special Property of the Nation) have it the self-government necessary for successful opera- tion;; though "belonging to the Reich alone, influenced by the Reich alonep and responsible to the Reich alone". The only injunction expressly laid on the Reichabahn was that it was not to consider itself as a profit enterprise but as a pub- lic servi:e which had to be self-supporting at the same timed The transportation policy of the German Governments between the wars transcended the usual duties of regulation of abuses arising from monopolistic tendencies,, or the general protec- tion of the public interest, The preamble to the law on land passenger traffic of December 6, 19.'i7p expresses the German attitude in these words% "In the National Socialist state the leadership (Tlihrung) in regard to transportation is a task of the State. The means of transportation can be operated either by private persons or by public bodies, But all must subject themselves to the rules which are framed uniformly for the whole Reich, Each branch of transportation must be as- signed those tasks which it is likely to serve in the best possible manner within the'frame of the whole transportation system and of the national econor^y0" In transportation. as in other phases of economic activity,, the 1inzi state brought to completion tendencies already ex- istinga for "in Germany the concept of transportation (Verkehrszedanke) has always been most initmately bound up with the concept of the National State (Reiehsgedanke) The German transport system has been "nothing other than the expression of the political and politico=economic ideas" of Germany. Paragraph I of the law of February 17, 1934,E charged the Reich Minister of Transport with the organization of the whole system of surface transportation on the basis of this conception of uniform control, The way had been pre- pared for him by the nationalization of the state railroads and the main highways, the inauguration of motor transport regulation, and the assumption by the Hitlerian State of broad powers after the eradication of the states as politi- cal entities. Fore than 9O,o of the trucksp about 5O?; of RESTRICTED' Approved For Release 2001/11/01 : CIA-RDP67-00059AO00500050007-4 Approved For Release 200REU1IJJRDP67-00059A000500050007-4 PRE-TAR GER, VAMY - RAILWAY TRANSPOPTATIOU (A-l CONT'D) the buses, and most of the river vessels were permitted to remain privately-owned and operated,' lloxever, the 1_'inistry, by means of the "self-governing" Transport Groups, exer- cised far-reaching control on the transportation services and auxiliary enterprises not immediately owned by the Government. Hence, the- German :Ministry of Transport from 1934 to 1939 exercised the functions of a railway board of managers for the Reichsbahn, combined with responsibilities similar to those of the.U S Interstate Commerce Commission and of the JS Maritime Commission as regards the remaining carrierso In pre-war years such as 1937, the Reichsbahn handled about 73jV of all freight traffic of the country, as against 31f handled by privately-owned railway lines, 21 1/2% by water- way carriers and 2 1/2a by highway vehicles. In the pas- senger field, statistical evidence is less complete, but the Reichabahn apparently conducted some 70% of all passen- ger travel, privately-owned railways about 3"', and the motor carriers about 27T,, much of which was purely local business, In physical extent, the inland waterwa"=s (streams and canals) totaled 120000 kilometers, the railroad net 80,000 kilometers, and the road net (including the Autos bahnen) 250,000 kilometers. The following indicates generally the proportions of the pre-war division of traffics Type of Transportation Freight Tons Passengers Private railways 3,700,000,000 22,200,000 State railways (the Reichsbahn) 97,832,600,000 618,204,100 Waterways 28,972,600,000 highways 3,254,000,000 214,000,000 Total 133,759,200,000 881,404,100 2. The law of February 17, 1934, combined in the National Transport Ministry the governmental regulation of all modes of surface transportation with the management of the na- tional? railroads. The glaring exception to the "uniformity of control" prescribed by this law was the independent ad- ministrative position of Dr. Friar Todt, succeeded by Alfred Speer, as General Inspector of the German Road System,* AlthouZh the posts of Minister of Transport and General ;'tanager of the Reichsbahn were combined in one person after 1937, the Transport ,?.ii.ni stry, through its railroad depart- ments, administered the railroads on a basis of extreme decentralization* 3. The Germans were among the first to recognize that the "armed forces of a nation are not a thing in themselves,but an. expression of the entire state and folk structure. A real people in arms riust utilize for the purposes of national Approved For Release 2001/11/RjtJ -L7-00059AO00500050007-4 Approved For Release 200'bLt1J 11 : CTED lA- DP67-00059AO00500050007-4 ES RI PPE-.':AR GRRr'AM'Y o PATL.Ay TRVi?POT'TATI011 (A-3 CO"?'T'D) defense everything that the land and its characteristics pro- vide... An industrialized state must possess armed forces that use all the possibilities of industry". This concept is that which General Thomas, Chief of the ilitar,;-Economics Section of the German General Staff, called "depth of arma- ment",, and which is usually despribed in Ludendorff's phrase as "total war". "A certain military political meaning can be demonstrated for every branch of politics", The place of transportation in this scheme of grand strartcgy is subordim nated to the general needs of the economy. "The principle is that transportation does not exist for itself, but has its only meaning and justification in serving the country's economy"o The 'ittelland canal, for example, was conceived in terms of the huge Hermann Goring works at Salzgittero The roles assigned to transport in theoretical considerations of strategy were therefore secondary to Its economic Impor- tance In the war potentialo At the same time, German trans- portation was in a state of all but complete mobili?ation even before the outbreak of wary, `lost obviously, pre-war physical transportation facilities far exceeded the demands of a normal peace time industry. That the restrictions on highway and inland waterway traffic were kept,in force until 1938 demonstrates that neither the Autobahnen nor the canals fulfilled essential needs. "If from many sides critical opinions are heard which r>roclai.m our overcapacity, it still remains an enduring principle that a responsible government plans and creates all traffic means and establishments in terms of the future. In transportation, potential must be greater than immediate transport needso The best exa!rple Is the building of the Autobahnen ordered by the 'ruhrero" The strategic meaning of the Reichsbahn in Nazi thinking is Illustrated by a significant change in the wording of the fundamental laws. Paragraph 2 of the laws of August 30, 1924, and .:arch 13, 1930, agreed that the Reichsbahn was "to conduct its operations for the preservation of the German folk economy under business principles." In section 3, para- graph 3, the law of July 4, 1939, provided that the "Reichsm bahn is to be administered for the use of the German people; in this connection, the importance of the national defense is to be considered"o 4. After November 1923, the German Reichsbahn received no finan-s cial subsidy from the Peicho On the contrary, from 1924 to 1931 the railroad paid sums approximating 660 million 1?'.! annually for reparations under the Dswes plan, and at the same time a transportation tax averaging 290 million RM an- nually. After the end of reparations, a fixed sum of 70 million R" was.paid annually in addition to the transport tax. 'ith the expansion of German industry under the Maria, the Reichsbahn was called on to contribute even more sub- stantially to the Government. In 1937, a plan was worked out whereby 3; of a total under 4 billion RM. And 97' of any sum over 4 billion R;+, were to be turned over to the Govern- ment0 The amounts for 1937 and 1 38 were 15708 million RIP Approved For Release 2001/11/ 4fALKDP67-00059A000500050007-4 Approved For Release 2001/11/01 : CIA-RDP67-00059AO00500050007-4 RESTRICTED PRE-WAR GFP?.ANY PItIL,A i TRA! SPORTATION (A-4 i o'TT?D) and 193.4 million Rt1 respectively. In addition to these sums the leichsbahn paid the transport tax, which for 1937 was 254x7 million RY and for 1938 266.7 million iii", The law of July 4, 19390 on the assumption that with the absorption of the Austrian, Sudeten, and t'enel lines a total operating in- come of 4.6 billion R;' might be expected, provided that r,-k, of this arount--and in no case less than 100 million R`+ annually should be paid to the Nation,, This was to be treated as opera- ting expense. In addition,, it was provided that the contribu- tion should be increased or decreased by 10% of the amount of which the total income exceeded or fell below the stated level of 4.6 billion RM. 5. The use of the "Gemeinnut?liehes Tarifsystem" as an instru- ment to effect Nazi economic ideas is described in C-2. The subordination of the states to the nation was an avowed goal of the post-Bismarckian Merman Nation, As part of this policy, the eimar constitution assumed for the Reich control of all moans of transportation, but practice lagged behind the expression of intention, The states fought the Reiehs- bank on the allotment of railroad stops and stations,, and the geo;;rsphical definitions of administrative boundaries. Seven thousand local political units were involved in the adminis- tration of the roads, The transfer of waterways to the Reich set for April 1, 1921, was never effected, because the states wished to grivc up only the duty of maintenance, while re- servinc to themselves the right of administering flood control, drainn .ea reclamation and water transportation. The law of February 17, 1934, with exceptions already noted, accomplished the transport unification of Germany, to go along with the political unification proclaimed by littler on January 30, 1933. In the field of what the Germans called "Bevo1kerungspolitik" (population politics) important missions were assigned the railroad and the Autobahaeno "The state has built a series of railroads which, by private economic standards, were never worth building, because they brought in no profit. Thinly settled, economically poor districts have been tied up with industrial and cultural developments. The economy of border districts, where the populsce, because of the proximity of the foreigner, needed particular strengthening, has been supported." The decentralization of industry was stated as an official government policy as early as f'?rch 29, 19350 Transportation was also an agent of politics in the narrowest sense of that word. The canals, the Autobahnen, the com- merical air fleet were all visible symbols of the vitality of the new regime, as well as sources of employment for the work- less, "At all times the roads 1:eve been the expression of the culture and status of a people. The highways of ancient Rome, of ',:apoleon and the Chinese moire, and of the Incas bear witness to this fact. Our roads also shall exist eternally--The name Adolf :;itler obliges us to make of his roads the expression of our.new ere." Approved For Release 2001/1110'1 ds'RDPP7-00059A000500050007-4 Approved For Release 2001/14OJ i~ A-RDP67-00059AO00500050007-4 ESTR PRE-?AR 011,'R"A! Y - RAILM1AY ?ZA-ISPOP`rATION (A-5 CO9TID) r'l The German conception of the place of that country in the world georranhic structure has been popularized in the geo- political writings of Karl Haushofer0 The traffic-geographical conditions of Germany can be summarized as: (a) the almost parallel south to north course of comparatively closely situated rivers (Rhine, i''eser, Elbe, Oder, Vistula) which needed only the east west connections supplied by the yittel- land and Adolf Hitler canals; (b) the influence of river val- leys by the shaping of the mountain ran-es in the development of the railways; (c) the full opportunities provided the automobile by the extensive lowlands that make up the greater part of GGermanye The perennial aspirations of the nationalistic intelligentsia of Germany, Fiddle Europe under German domination, and the "Drang nach Osten" were undoubtedly conscious aims of the German transportation policy, An example in point is the wctersvayso "The crime consideration has been not whether the way would be a sound economic development, not whether tolls received plus income from power plants would carry the fixed charges incurred for construction, but whether the completed waterway would serve as an artery in a completely united and self-sufficient economic area, composed of Germany and the small states on the Danube, under the domination of Germany, and affording basic economic security and military powers" Be ORGA?IZATION 1, The t'ini stry of Transport was concerned only with major prob- 2 leas of policy, such as rates, status of personnel, and bud- & getarv matters, Routine control and day-to-day management 3 were effected by the 26 (in 1P38) Divisional Vanagementa (Reichsbahndirektionen), who were not limited in authority to the maintenance of way and structure and the operation of equipment, as in the American scheme of divisional organiza- tion. On certain matters of policy the 'inister had the ad- vice of a special advisory council, formed of representatives of industry, trade, and public, Directly under him there were two technical offices, at Berlin and Munich, in charge of mechanical and civil engineering, workshops, research, and other technical matters requiring common administration, Under the divisions were the local district offices for traf- fic, construction, operations, locomotives and rolling stock, responsible for their particular function in their districts. The major workshops were supervised by a board consisting of ten of the division managers, To coordinate the work of the 26 divisional mane ,eients there were three operating offices, in Berlin (Last), Essen (West), and Munich (South) o They were responsible for the harmonious coordination of train and traf- fic working in the divisions under their immediate controlo However, the divisions were on equal footing with the operating offices, and in all administrative matters were responsible only to fierlino - 5 - Approved For Release 2001/11'%6.f': bI -RD067-00059A000500050007-4 Approved For Release 2001/1115./167-00059A000500050007-4 PRE .AR GFRT.',AtIY RAIL.":AY TRANSPORTATION (B.4, 2 & 3 CO`T'D) The general regulation of private railroads was also the task of the divisional president, although tariff problems were still reserved to the Winister. In the case of light railroads, the regulatory functions were divided. Powers of administrative regulation were delegated to the state authorities, whereas technical regulation was exercised in all areas (except Bavaria) by the presidents of the divi- sion managements. Both private and light railways were members of the Reich Railways Transport Group in the Na- tional Transport Group of the German corporative system, The Railway Transport Group therefore represented the rail-. roads insofar as they remained in private, municipal or state hands, but only in a consultative sensed The centralization of power in the Reiehsverkehrsminis- terium (Linistry of Transport begun by the decree of June 21, 1919, and confirmed by the law of February 17, 1934, continued all through the prewar period. It is to be noted that two aspects of transportation were assigned to other agencies: (a) air transportation was the business of the General fir Office in the National Air Ministry, (b) the supervision of road construction and maintenance had been shifted to the Inspector General for Roads. The 11,'ini.stry of Transport was headed by a `"inister, Dr. Ing,e,ho Dorpmuller. The Undersecretary, Ur. Ing. Ganzen!rUller, was the overall head of the Railroad Divi- sions. An Advisory Council (Beirat) consisting mainly of industry representatives and transportation experts, car- ried out purely consultative functions. The various divi- sions of the Ministry will be discussed below as they were related to each form of transport. n The railroad divisions of the Reichsverkehrsministerium did not merely "supervise" or "control" the administration of the Reich railroads; they managed them directly. All organs of the Reichebarn were Reich aggencies, its em- ployees were civil servants of the Reich. The "inister of Transport was the head of the Reichsbahn, with the title of Gencraldirektor der Deutschen Reichsbahno As Assistant in this capacity, he had an Undersecretary of the ?inistr, whose title was Stellvertretender General- direktor (Deputy General ',tanager). The Railway Traffic and Rates Division (Fisenbahn-Verkehrs- und Tarifebteilung) prepared and adjusted rate schedules, organized the regular transportation services for passen- gers and shippers, and in addition handled large mass movements of persons and goods and arranged preferential rate schedules therefor, In this capacity,, it managed the transport aspects of the 1'uernberg mass meeting of "Kraft du rch Freude"; and in wartime it adapted railroad trans- port regulations to military needs, in cooperation with the. Railroad Finances and Legal Patters Division. RESTRICTED Approved For Release 2001/11/01 : CIA-RDP67-00059A000500050007-4 Approved For Release 2001/11/01 : CIA-RDP67-00059AO00500050007-4 RESTRICTED PRE `'AR GEP AIdY - RAIL'"AY TRA''SPORTATIO11 (b-i, 2 & 3 CO'JT'D) The Operational Management Division (Eisenbahnbetriebe- abteilung) controlled the operRtional coordination of the whole railroad system, including the technique of train and locomotive services, marshalling and switching, and the preparation of timetables. The 'Machine-technical patters and Purchasing Division (Eisenbahn-tlaschinentechnische=und-Einkaufsabteilung) placed orders for major new acquisitions,, and was the top administrative agency in control of workshops, stores0 locomotives and electrification works. It handled mech- anization projects, electrification, and research on the problem of substituting domestic materials for imported ones in order to save foreign exchatige. The Railroad Finances and Legal Me.tters Division (L:isen- bahn-Finanz-und Rechtsabteilung) handled the finances of the Reichsbahn, one of the world's largest single busi- ness enterprises, separately from the general finances of the Reich, The accounts of-the Reichsbahn were pre- pared from the daily reports of the 26 Divisional M.?anagements, which were treated almost as separate enter- prises. As prescribed by the Reichsbahngesetz, balance sheets and profit-and-loss accounts had to be published yearly. This Division had two sections. The Legal Sec-, tion (Rechtsabttilung) handled the Reichsbahn's day-to- day legal business, formulated rail legislation and transport regulations. The Light Railroad Section (Hleinabteilung) regulated the 136 privately-owned rail- roads, the 309 narrow-gauge railroads, and the 100 com- mercially run sidings, all totaling about 13,000 kilometers, which formed approximately 20% of the Reichsbahn's entire network. Routine technical matters for these roads were controlled by division managements. The private and light railroads were organized into a corporate system of transportation, which as a unit exercised strict control over its members and interfered radically with the manage- ment of the component enterprises, This corporate system was under the control of The Division for General Adminis- tration (Abteilung fur Vervraltung)o the Division of Personnel Matters (Eisenbahn-Personal- abtailung) handled the personnel affairs of more than 1,000,000 men and women. One section (under a Ministerial- direktor) dealt with employees; another (under a Minis- terialrat) with laborers. The Division of' Construction (Eisenbahn-Bauabteiiung) super- vised the reconstruction and expansion pro" ram. In addition, numerous Construction Offices (Neubauamter were created; these were subordinated to the Divisional Managements. The Railway Planning Division (Eisenbahn Planungsabteilung), a newcomer among the railroad divisions, seems to have assumed, before 1943, the functions of the former Railroad Approved For Release 2001/1/101 CICTED -R P67-00059AO00500050007-4 Approved For Release 2001/11 15:. 1 e ( v 7-00059AO00500050007-4 PPE-':,'rAR GFR!:`ANY RAIL:',AY TPANSPORTATI0N (I3-1, 2 & 3 C0"7T'D) Construction Division (Eisenbahn-Bauabteilung). Although no complete description of the work of this division is available, it may be assumed that the jurisdictional dif- ference between it and the Division of Construction was that the Planning Division prepared the plans for new con- struction and reconstruction projects, the execution of which was supervised by the Division of Construction. The Railway Military Matters Group (Eisenbahnwehrmachtliohe Angelegenheiten), set up long before the war as a liaison between the ::inistry of Transport and the :'ehrnacht, pre- pared the plans to meet the needs of military transporta- tion and arranged schedules to go into effect when war should begin. During the war, this division cooperated closely with the military authorities. The Audit Organization of the Reichsbahn (tiauptprufungsamt) audited the Reichsbahn accounts0 It cleared accounts with the Reehnungshof des Deutsches Reiches (Court of Accounts of the Reich). Subordinated to the above were the audit offices attached to the Central Offices and to each Divi- sion !?anagemento The chiefs of these were the accounting officers of the respective agencies. When they acted in the capacity of chief of audit offices, they reported to the Chief Audit Office; otherwise, they reported to the President of their agency. Complementing the Transport "inistry in its performance of regulatory functions were two organizations, a resume of whose workings will be given here. ,By the Act of November 27, 1934# Germany's business enter- prises were organized into self-governing groups, headed by the Reich Ftonomic Chamberso with compulsory membership. The 140,000 transportation enterprises were originally a part of this system, but by a decree of September 23, 1936, they were separated from the other Reich groups, renamed "Organization of Transport", and divided into seven func- tional groups. The Transport Groups were placed under the jurisdiction of the Linister of Transport, whereas the other Reich Groups, remained under the nominal administration of the Ministry of Economics. The Transport Groups, although referred to as "self-governing bodies"# acted as government agencies, with power to intervene in almost every aspect of the management of the transportation enterprises, including questions of expansion, transfer of officers, and personnel problems. Through interchange of delegates with the other organizations, such as the Reich Chamber of Economy, the functional and regional groupings of industry and trade, and the German Labor Front, uniformity of administration was theoretically ensured, Approved For Release 2001/1'I illq TEP67-00059AO00500050007-4 Approved For Release 2001/11/01 : CIA-RDP67-00059AO00500050007-4 RESTRICTED PRE=s.*AR GER:'ANY - RAILivAY TRANSPORTATION (B=la 2 & 3 CONT'D) Those transportation facilities which were not in the hands of the Reich were thus united into the Reich Transportation Industry (Reiehsverkehrsgewerbe) with these seven groups. 1. Ocean Transport 2. Motor Transportation 3o Private Railways 4. Inland Shipping 5 Forwarding and Storage 6, Auxiliaries of Transport 7. Hauling and Carting These groups were divided into Trade Groups (Fl chgruppen), which in their turn were divided into Sub-Trade Groups (Faohuntergruppen). The function of the National Transportation Advisory Council eras to produce a close liaison between different branches of the industry and in turn with the users of transporta- tion0 The results of their deliberations were presented to the Transport Minister to use or reject as he saw fit. The Council meetings were held irregularly at the convenience of the '?inister, who also fixed the agenda for the meetingo The broad purpose was an exchange.of ideas on the national scale between shipper and carrier. The composition of the council indicates the character of its representation; The leaders of the 7 transport groups, 6 delegates from indusa trya 2 from the National Food Chamber, and 1 each from the Air P:Tinistry, the Post Office, and the Inspector General of Roads, the Cities, the German Labor Service, and the Nntional'Cultural Chamber,, The Advisory Council was dupli- cated xll down the echelons of command so that every sub- group had an advisory council formed on the same representa- tive principle. 4. As has been said, prior to the .7eimar Republic, ltranspor- tation matters were not centralized in the Reich. The Weimar Constit ti on, however, transferred the state railroads to the Reich for uniform management. By the decree of June 21, 1919, the Reich Ministry of Transport was established. In 1934, the Reich Ministry of Transport and the Prussisn Ministry of Transport were unified under the name of the Reichs-und Preussisches Ve rkehrsministerium. After the annexation of Austria, the name again became Reie',:?verkehrsmini ste rium. when the `Ministry of Transport was created, the aim was to concentrate all supervision and control in one Reich agency. The states showed considerable resistance, which was gradually overcome to some extent Under the Nazi regime, the internal 9 - Approved For Release 2001/11/01~M-00059A000500050007-4 Approved For Release 2001/11Ra: I lfPfl67-00059A000500050007-4 PRE-:':AP R IL,kx TRA:';PoRTAIION (B-4 ,C'-T'D) organization and personnel of the ''inistry of Transport were at first left relatively unchanged* The concentration of power in the 'Ministry of Transport continued, although im. portant sectors were again taken out of its jurisdiction: (a) the ;:inistry of Air Transport took over aerial transpor- tation; (b) the construction of waterways was transferred to the Inspector General for Mater and Power; (c) the supervi- sion of road construction and maintenance was transferred to the Inspector General for Roads; and (d) maritime shipping was placed under the Reich Commissioner for Ocean Shipping in 1941. 5. In the absence of a free press or of parliamentary debate on the Anglo-American models there could be no free expres- sion of opinion in Germany on the operating efficiency of a government department or a state ~ronopolyo Taking perfor- mance as the yardstick of measurementp we have the statement of the United States Strategic Bombing Survey: "In brief', the Reichebahn was the sort of plant any railway man would like to have constructed had he been free from financial obligations. Fsprit de corps anon; German railroaders appears to have been verj food. 'r oreover, the standard of technical training and general competence was exceptionally good." "Prior to the war, Germany possessed one of the most complex, adequate and well-maintained railroad systems in the world,..A strong inland waterway a;:atem connecting the important rivers of North Germany, crisscrossing the Ruhr coal area, and pro- viding through water transportation from the Ruhr into the Berlin area, accounted for 21 to 36 per- cent of the total freight traffic movement. It was well adapted to the movement of heavy cargoes in and out. of the Ruhr district. Commercial high- way transportation of freight was of little signific- ance, accounting for less than three percent of the total, and coastwise shipping was of minor importance compared with the total inland movement. Contrary to general belief at the outbreak of the war. none of these transportation systems was underwaintained. Standards were well above those common in the :united States, an element of strength which would permit curtailment in maintenance for a period of ,oars before operating efficiency or safety would be affected." Co ADx INISTRATION 1, This question is not strictly applicable, since the govern- mental policy was one of restricting rather than expanding transport facilities and enterprises. For specific infor- mation, see the relevant sections of this report. Approved For Release 2001/11~P~~CIA-RDP67-00059A000500050007-4 Approved For Release 2001/11/#gS }iq, 7-00059A000500050007-4 PRE-77',V GL.:R".'ANY RAIL. AY 9RMNSFORTATT01`i (0-2) 2. The German rate structure was known as Gemein irtsehaf- tiliches Tarifsystem (rate structure based on the interests of the economic life of the country as a whole)0 The sub- ordination of the freight rate structure to considerations of economy, defense and politics may be illustrated by noting some of.the special adjustments. The railroad rates effective in 1937 reflected the four-year plan. Thus special rates were established for raw materials used in the manufacture of artificial wool and cotton yarns Special rates were also allowed for German raw materials where such rates stimulated their use and saved foreign exchanges examples were ores, slags, and synthetic Diesel fuel. Low rates on potash and calcium were desi;fined to help agriculture; On the other hands by way of aiding exports, iron and steel goods,, paper, glass supplies, and chemicals could be hauled to seaports at special rates. Material for the Autobahnen was carried at cost, this accomodation (rendered for an ostensible subsi- diary which was in reality a rival) amounting to a probable total sacrifice,of 100 million Rte! at the end of lp37. In addition, some arrangements were even more directly politi- cal. &iilding materials for the party grounds at Nurenberg were forwarded at a reduced rate of 30 percent. In addition, goods destined for winter help were shipped free of charged entailing a freight revenue loss to the Reichsbahn of 18 million RY. The Reichsbahn had separate rating systems in operation for wagon-load traffic and traffic in part wagon=loads, and furthers, according to whether the traffic was conveyed in ordinary freight trains. The ordinary rate classification applied only to wagonload traffic; there was no classifi- cation for part wagon-load traffic,, which was charged ac- cording to freight tables based on weight and distance, Wagon-load rates applied to wagon loads of 15 tons and up- wards, and were increased by fixed percentages, varying with the class of goods for wagon-loads of ten tons and five tons respectively, All haulage rates tapered downwards with in- crease in distance. The exceptional tariffs were not always special rates as usually understood, that is, rates applying to certain goods and to certain areas. There was a considerable number of ex- ceptional tariffs in favor of-certain commodities from all stations to all stations in Germany. Some of these so-called special rates had a general application and thus functioned merely as a new classification added to the general tariff. Thus, there was a raw materials tariff for bulk commodities such as fertilizers. potatoes, minerals, etch These general exceptional rates had no quantity restrictions and were avail- able to and from all stations in Germany. In addition, there were many genuine exceptional tariffs, These rates were subjected to a number of restrictions over and above those which would apply to the same commodity when dispatched at the normal rate. The employment by a - 11 Approved For Release 2001/11/011k00059A000500050007-4 C Approved For Release 2001/1lLSTR IIA-RDP67-00059A000500050007-4 PRE-':AR GE.R'ANY RAIL:-AY TRANSPORTATION (C-2 ClG!''T'D) trader of a given special exceptional tariff was usually de- pendent upon the observation by him of certain attendant clauses. An example was the 'producer' clause; when this was imposed the goods for dispatch must have come from a particu- lar country, district or town, This clause was generally im- posed as a discrimination between home products and imported goods, but was also employed to aid the development of an industry in an area unfavorably situated geographically. !'then the clause 'prohibiting re-export' was applied, goods were given a reduced rate to a particular foreign country on the understanding that once the goods had reached their destina- tion, they would not be re-consigned elsewhere, Exceptional tariffs were introduced on the German railways as part of a policy which aimed at adjusting the cost of transport so as to benefit the country as a whole by assisting industry and trade against foreign competition, and by de- veloping exports. The exceptional tariffs may be divided into two main categories: (a) Exceptional assistance tariffs; these were introduced in order to favor economic activities within Germany. They facilitated the transport of vital goods, the movements of exports from their place of origin to the seaport, and protection of home ;markets. They overcame temporary disadvantages by emergency measures, eogo they per- mitted the granting of rebates to retain the custom of tra- ders near s frontier, who could obtain cheaper rates by using a foreign railway, (b) Lxceptional competitive tariffs: these tariffs were designed to prevent any undue trespassing within Germany of foreign transport systems which could offer lower rates for exports and imports - seaports, railways, wntorways, air or road transport. A prominent example of such tariffs was the Seehafenausnahmetarife, which exerted a powerful influence in diverting to Bremen and aamburg from Antwerp and Rotterdam the traffic of 7estern Germany, and which to some extent diverted from Antwerp, Rotterdame ;:_nrseilles, :,enoa and Trieste the traffic of South Germany and Switzerland. 3o Since the fixing of tariff rates is the single most important instrument of regulating transport competition, this question is implicitly answered in the answers to question C-2. 4. There were no peculiarities in the German administrative system of safety regulation and inspection which require en- umeration here. The only difference from commonly accepted practices lay in the high degree of centrmlization within the `.'inistry of Transport. 5. The employees of the Reichsbahna by far the largest single element in transportation, were civil servants, and therefore subjected to the training and educational requirements of civil service. They were similarly divided into three main classes: higher civil servants (hohere Beemte), civil ser- vants of intermediate rank (mittlere Beamte), and those of lower rank (untere Beamte)o Prior to the war higher officials numbered about 1.2r, civil servants of intermediate rank 30%, and those of lower rank 68.8'u of railroad personnel. Approved For Release /01 :-C RESTVI G I P 7-00059A000500050007-4 Approved For Release 2001/1l 1 l? I i,~P67-00059AO00500050007-4 PIMp~'iA?. R:.ILNAY TRANS POPTAT I ON (C-5 CO! T4D) The higher carreer was in general open only to well recommended applicants with full university education and good scholastic records. Applicants with legal background were required to have passed the state bar examination whi'ch required, in ad- dition to graduation from a university. 3 to 4 years of train- ing in courts end law offices, Applicants with engineering background were required to have graduated from an institute of technology in mechancial or civil engineeringe and, after 3 years training in technical railroad service or in other techni- cal enterprises, to have passed a special engineering examination for higher -railroad serviced "hen admitted to railroad service,, both classes were trained for a period of 1 1/2 to 2 years in all fields of practical routine (In division managements, superintend- ents? offices, and subordinate agencies), They then started as junior section members of a division management. Promotions were based on ability, Under pre=war conditions about 45% of higher officials were civil engineers, 25f mechanical engineers, and 20;' had legal training. Only about 10" were promoted from the intermediate ranks, The intermediate career was open to boys who had completed 4 years of grammar school and 6 years of high school. Many applicants, however had a better educations and for admission to technical services graduates from technical high schools were preferred, Positions as chiefs and assistants in the agencies subordinate to the division managements and all important clerical jobs in agencies of all grades were filled with civil servants of intermediate rank. Civil servants of lower rank were usually recruited from workmen employed in railroad service or from former non"oommissioned army officers who v- after.a certain period of service had obtained a certificate for preferential admission to civil service (?ivilvereorgungsschein)n Such positions as stationmaster at small stations, clerical helper; locomotive engineer, fireman, conductor, and foreman in maintenance of way and structure and eauipment service, were occupied by servants of lower ranks The status-of workmen was similar to that which prevailed in German industry in general. The largest groups of workmen were. helpers in services usually performed by civi' servants (Hilfekrafte in Beamtendienst), workers in train and switching service (Betriebsarbeiter), track laborers (Bahnarbeiter), and shop laborers (Vierkstattearbeiter)o A small number of employees, such as typists and clerks (mostly women); had the status of olcriual workers (Angestollte)o Their status was determined by the general provisions which German legislation had established for cl-:.rical workers As of September 1, 1938 Germany had ratified these international transport conventions of the League of Nations: the transit conventions, ports convention, railways convention, the declare. tion recognizing the flag of Inland States, the hydro?electris power convention, the road and motor traffic $onventionso Germany 13 Approved For Release 200 181SIR ti `RDP67-00059A000500050007-4 Approved For Release 2001/1'RH$TRIIW67-00059A000500050007-4 PT Z,7, - KA R belonged to the following international organizations con- cerned with transportations RAI1;:':AY TRANS FOPTATION (C-6 CONTOD) The Baltic and International Association of Navigation Congresses International Shipping Conference International Shipping Federation Union for the Use of Carriages and Vans in International Traffic International Railway Congress Association Central Office for International Railway Transport International Railway Union International Railway Wagon Union International Conference for Promoting Technical Uniformity on Railways European Conference on Time.Tableao of In additions Germany was a member of the Verein '.'itteleuropaischer Eisenbahnverwaltungen (Association of Central European Railway Administrations)o he last organizations since voting representa- tion was based on mileage and its decisions were binding on all memberships, was of fundamental importanceo Approved For Release 2 CIA-RDP67-00059AO00500050007-4