Nazi Hirelings

To many a complacent U. S. citizen, Nelson Rockefeller's investigation of Nazis in Latin America has seemed little short of a witch hunt. One reason is that the Inter-American Coordinator of Commercial and Cultural Relations named no names, preferred to work quietly. He merely said there was evidence that many a U. S. company, often unknowingly, had an "anti-American" (i.e., Nazi) for agent below the Rio Grande, suggested replacement by men friendly to the U. S. (TIME, Jan. 20). But last week to TIME'S Texas Bureau Chief Holland McCombs came reports from Mexico which gave Mr. Rockefeller convincing support. The report named names, proved beyond question that Nazis are taking a cut of many a U. S. dollar.

From 1929 to 1938, Mexico's imports from Germany jumped 40%, while imports from the U. S. (though still much larger) slumped 54%. Germans in Mexico became the dominant retail and wholesale distributors in at least two fields (hardware and drugs), sold countless other products (iron, steel, chemicals, arms, machine tools, engines, etc.). Unlike most Americans, the German businessmen learned the language and manners of their Mexican customers, frequently married Mexicans. Many became Mexican citizens. But they seldom forgot the Fatherland.

For years many U. S. firms found Germans in Mexico their most successful salesmen. When World War II came, the British blockade pinched off Nazi businessmen's supplies of German goods, increased their dependence on U. S, products. Gustavo, Sommer, a powerful hardware company, solicited 60 U. S. manufacturers for agency rights. When the U. S. companies sent along a questionnaire asking for nationality, the German firm (which had only two Mexicans on its payroll) wrote "Mexican" in the blank. Other firms got U. S. merchandise through dummy corporations. Nazis in Mexico are important distributors of British merchandise too.

To their customers in Mexico some Germans have been delivering U. S. merchandise stamped "Made in Germany." In some shipments, customers found sheafs of Nazi propaganda. By last week at least 200 German firms and agencies were depending in large part on selling or representing U. S. products; over 90% of them were pro-Nazi either by choice or by duress. Almost a third of all U. S. commercial agents in Mexico today are Germans by birth. Some names:

>Casa Cram in Monterrey (largest manufacturing centre in Mexico) distributes hardware and tools for Armstrong Manufacturing Co., Peck, Stow & Wilcox Co., abrasives for Carborundum Co., etc. Its owner: Herr Hans Cram, the Nazi Consul.

> Monterrey's Herr Guido Moebius is head of the local Nazi organization, commander of 150 trained storm troopers, has a controlling interest in the new radio station XEMR. One of his companies is the Monterrey outlet for Montgomery Ward.

>Casa Holck (40% owned in Germany, 40% owned by Germans in Mexico) was last year blacklisted by some U. S. firms, but got their products anyway through dummy agents. Casa Hoick distributes for Deere & Co., Goodyear, and Cortland Grinding Wheels Corp.

> Beick, Felix y Cia., blacklisted by the British, represents about 80 American drug lines. Over strong opposition last year it squeezed into the American Chamber of Commerce in Mexico.

> So pro-Nazi is another Monterrey distributor that he cannot get a visitor's permit to the U. S. But he represents, among others, Bethlehem Steel.

Last week Nelson Rockefeller's men were still busy talking to the U. S. companies which had pro-Nazi agents in Latin America. Some changes, with or without Rockefeller prompting, have already been made. Socony-Vacuum's former Monterrey manager, Herr Wilhelm Giesecke (a regular caller at the Nazi Consulate) is "no longer employed." Joseph A. Heedles, the U. S.-born (Brooklyn, N. Y.) member of Mexico City's famed distributing firm of Heedles & Breidsprecher, longtime agents for Du Pont, Remington Arms, Fairbanks, Morse & Co., etc., this month bought out his German partner. Some U. S. exporters are naturally reluctant to break old and profitable trade relationships so long as the U. S., not being at war, has no official blacklist. Some have long made a point of neither knowing nor caring about the political complexion of their Mexican distributors, any more than they care about that of their domestic customers or employes. But most have been thoroughly cooperative when the U. S. Government has made informal representations. Apart from patriotism, they have a reason of self-interest to seek new agents below the border: Many German agents would drop American lines like hot potatoes if the Fuehrer ever settles his account with England.

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