U.S. Supreme Court upholds Germany’s plea to State immunity in the “Welfenschatz” case
Published: 09 February 2021 Author: Stefan Talmon
On 5 October 1929, the three Jewish-owned Frankfurt-based art dealer firms of J.&S. Goldschmidt, I. Rosenbaum, and Z.M. Hackenbroch formed a consortium to purchase a unique collection of 82 medieval relics and devotional objects known as the Welfenschatz, or Guelph treasure, from the Duke of Brunswick-Lüneburg. The treasure of the German Guelph dynasty dates back to the early days of the Holy Roman Empire and occupies a unique position in German history and culture. The consortium intended to resell the Welfenschatz for a profit. However, several weeks after the consortium had bought the treasure, the U.S. stock market crashed leading to a worldwide economic depression which, in turn, caused a fall in art prices. Giving up its initial hope of selling the collection as a whole, the consortium began to sell off pieces to individual collectors. By 1931, about half the treasure had been sold to museums and individuals in Europe and the United States. The rest of the Welfenschatz was stored in Amsterdam. In 1934, about a year after the Nazi party rose to power in Germany, the Dresdner Bank approached the consortium with an offer for the remaining pieces on behalf of the German state of Prussia, which was headed by Nazi leader Hermann Göring – Adolf Hitler’s designated successor. The consortium and the bank negotiated for over a year before agreeing on 14 June 1935 on a price of 4,250,000 Reichsmark, about halfway between the two sides’ initial offers. (more…)