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Home , 1920s Berlin, Golden Twenties, Oscar Troplowitz, Reichsmark

CHRONICLE 05

The crisis manager The Jacobsohn era, 1914 –1938 INTRODUCTION

From the First World War to National Socialism

A world in turmoil

“Carpe diem” – seize the day. This Latin motto is carved over their positions. Beyond the factory gates, things on the gravestone of Dr. Willy Jacobsohn in Los Angeles were also far from peaceful: German society took a long and captures the essence of his life admirably. Given time to recover from the war. The period up until the the decades spanned by Jacobsohn’s career, this out- end of 1923 was scourged by unemployment, food and look on everyday life made a lot of sense: after all, housing shortages, and high inflation. The “Golden his career at took place during what was Twenties” offered a brief respite, but even in the heyday arguably the most turbulent period in European history. of ’s first democracy, racist and anti-Semitic In fact, there are quite a few historians who describe feelings were simmering below the surface in society the period between 1914 and 1945 as the “second and politics, erupting in 1933 when the National Socia- Thirty Years War.” lists came to power. Jewish businessman Jacobsohn The First World War broke out shortly after Jacob- was no longer able to remain in Germany and, five years sohn joined the company in 1914. Although the war later, was even forced to leave Europe for America. ended four years later, Beiersdorf continued to suffer However, by then he had succeeded in stabilizing the crisis after crisis. Dr. Oscar Troplowitz and Dr. Otto company during the trying times, setting up several Hanns Mankiewicz died in the same year and the com- companies abroad and increasing employee and sales pany had no one at the helm until Jacobsohn took figures substantially.

Beiersdorf Chronicle · 05 3

FOCUS

“This trip is for business purposes …

… and is not for the purposes of emigrating.”

This is the clear wording that P. Beiersdorf & Co. AG needed to use in a letter to the American consulate regarding an eight-month stay by Willy Jacobsohn in the USA in 1927. This was not a one-off: Jacobsohn spent many months of each year traveling around the world, setting up affiliates and maneuvering Beiersdorf skillfully through its many crises.

Beiersdorf Chronicle · 05 7 BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB knowledge and skills that they offered him a newly created position in their company. They believed that BACKGROUND 1914 – 1918 the high level of sales in justified setting up a production facility there and founded P. Beiersdorf & Co. Life before Beiersdorf Ges.m.b.H., its first foreign affiliate, in January 1914. From desk to battlefield The plan was for Willy Jacobsohn to be the Managing Director of this company, but the outbreak of the First Willy Jacobsohn was born to Gustav and Margarethe World War prevented Beiersdorf from commencing Jacobsohn in the Pomeranian town of Stolp (today business operations in Austria. As well as this, Jacob- Słupsk in ) on January 6, 1884. As a young man, sohn had been drafted by the German army and, after he trained as a pharmacist in , before studying being deployed in Belgium, was stationed in Berlin from chemistry and natural sciences at the universities of 1917 until the end of the war as a consultant in the Kaiser and Berlin (including under Hahn, Alzheimer, Wilhelm Society (now the Max Planck Society). Röntgen, and Mendel). In 1909, he attained his doc- After the war, in which millions of people lost their toral degree. After working briefly in smaller companies lives, Willy Jacobsohn returned to in Novem- in Hamburg, Jacobsohn joined Beiersdorf in January ber 1918 at the age of 34. Departing from the original 1914. plan, he was appointed to the Executive Board in Ham- After signing his contract, almost five years passed burg. A new beginning. BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB before Willy Jacobsohn was able to start working in Hamburg in 1918.

The Beiersdorf headquarters on what is now Unnastraße, around 1913.

Text: Thorsten Finke / Daniel Wallburg Early days at Beiersdorf

>> When Willy Jacobsohn signed up to work for Jacobsohn had made the acquaintance of Beiersdorf’s Beiersdorf in December 1913, the 29-year-old pharma- then owners, Oscar Troplowitz and Otto Hanns cist with a doctorate in chemistry had no idea what a Mankiewicz, through his active involvement in the turbulent life he was going to lead over the following 25 German trade association, or Markenverband years. The was flourishing, people were (then known as Verband der Fabrikanten von Marken- relatively prosperous and no one could have predicted artikeln), which had been founded in Berlin at the the approaching horrors that would plunge Europe into beginning of the 20th century. Although he cut a chaos for decades. Before joining Beiersdorf, Willy somewhat inconspicuous figure, he was able to win Jacobsohn had been the manager of a small pharma- them over with his charismatic personality, creativity, ceutical factory in Hamburg. At the time, his new and work ethic. Troplowitz and Mankiewicz were employer already had a workforce of over 500 people. evidently so impressed by the young pharmacist’s

1914 1916/17 1917 1918

On June 28, the heir to the In August, the German Famine in Germany The revolution in Russia brings On April 6, the USA The First World War ends on November revolution in Austrian throne Archduke Reich declares war on (“Turnip Winter”). Oscar an end to czardom. declares war on November 11 with the signing Germany. End of the German Franz Ferdinand is Russia, France, and Great Troplowitz sets up a soup Germany. of a ceasefire agreement. Empire, proclamation of the assassinated in Sarajevo. Britain. The First World kitchen to feed hungry Around 17 million people died by Philipp War begins. local people. in the war. Scheidemann.

8 Beiersdorf Chronicle · 05 Beiersdorf Chronicle · 05 9 To begin with, Jacobsohn focused his energies primar- ily on Beiersdorf’s international business, which had 1918 – 1922 been hit badly during the war. There was also the painstaking task of building up foreign contacts again. In fact, Jacobsohn virtually had to start from scratch A new beginning in uncertain times again: In 1914, Beiersdorf was still generating some 42 % of its sales outside Germany, but this figure had plummeted ever since. In 1919 and 1920, the com- pany’s revenues were just enough to cover the cost of raw materials and wages. As well as this, there were problems sourcing raw materials and it was still difficult to procure food supplies. However, another problem was the uncertain social and political situation in the first months after the end of the war, when Germany was without a constitution, parliament, and government. The personnel situation at Beiersdorf made things even more complicated: Oscar Troplowitz, the man

who had established the company globally with inter- In 1921, Beiersdorf founded its first American affiliate nationally recognized brands, died in April 1918. Just on New York’s Hudson Street. seven months later, shortly after Willy Jacobsohn return- ed from Berlin, the second Managing Director Otto Hanns Mankiewicz died in December 1918. Officially, Oscar Troplowitz’s widow Gertrud was the owner of Troplowitz: both were pharmaceutical experts and prag- generally required him to travel extensively: in order the company, but she was not able to manage it. matic businessmen with a strong affinity for techno- to stave off export difficulties and high import duties, logy. An extremely important and urgent international he established several affiliates in the period up to A new Managing Director for Beiersdorf matter was already clamoring for his attention – the 1922 – in Switzerland (1919), the Netherlands (1921), “[Regarding how] to harness fight against the expropriation of Pebeco’s trademark and the USA (1921). However, not even this could your very valuable input Enter Willy Jacobsohn, who at this point was already rights in the USA. At the time, Pebeco toothpaste was make up for the lost export revenues, given that there familiar with the areas in which his predecessors Beiersdorf’s most important product, making up the was no longer a demand for German products in the later on [...] we very much had operated. Although he had spent a lot of time in bulk of overseas revenue, chiefly in the USA. This former Allied countries, particularly in Great Britain, hope that you will be involved Berlin during the war, he had remained in close contact meant that its expropriation was to be avoided at all France, and Eastern Europe. For the first time in its in building up our business with Hamburg. In the months following Oscar Troplo- costs. history, Beiersdorf needed large bank loans. witz’s death, Otto Hanns Mankiewicz always consulted Jacobsohn found out about this threat in May 1919. This was further exacerbated by a highly complicated in other ways after the war.” Jacobsohn – the sole authorized signatory with man- Shortly afterwards, he sailed to New York to demand and paralyzing situation regarding the division of the

Letter from Beiersdorf’s management to Willy Jacobsohn agement experience – before taking any important the return of the rights, not yet suspecting that this pro- company following the death of Gertrud Troplowitz on January 28, 1915 decisions. His profile was very similar to that of Oscar cess would take many years. Jacobsohn’s new position in 1920.

1919 1921 1922 On June 28, the peace treaty Germany’s post-war industrial is elected leader Germany is required to pay Benito Mussolini’s fascist is negotiated and signed at production falls to the same of the National Socialist 132 billion gold marks as reparations regime begins in Italy. the Peace Conference at level as 1888. It will not reach German Workers’ Party to the victorious Allies. the Palace of Versailles, 1913 levels again until 1927. (NSDAP) on July 29. bringing the First World War definitively to an end.

10 Beiersdorf Chronicle · 05 Beiersdorf Chronicle · 05 11 future. One of the consequences of this was that the the winter of 1932. Thanks to the company’s strong In 1925 was given company was set up in the USA without formal ties to brands and prudent leadership, Beiersdorf’s workforce a new design under Jacobsohn’s management. 1922 – 1933 the German headquarters. However, other Beiersdorf remained relatively stable during this time. In 1932, The blue tin was born. companies were set up with a view to protecting spe- the company even celebrated its 50th anniversary, cific company values or regaining lost rights. marking the occasion by gifting each Hamburg-based Events unfold rapidly employee 50 – the equivalent of half the The next crisis is always around the average monthly wage. At this time, Beiersdorf already corner employed more than 1,400 people worldwide. Between 1929 and 1931, Willy Jacobsohn founded At the same time, the Weimar Republic experienced nine new companies abroad. NIVEA, and the plaster a period of severe inflation, culminating in brands Hansaplast and Leukoplast, were the main driv- in 1923, when money lost value virtually by the minute. ing forces behind the company’s international success For Beiersdorf, this meant that fewer and fewer people during this period. However, this was to take a back were able to buy the company’s products – they barely seat as the political crisis engulfing the Weimar Repub- had enough money to cover their basic needs. It was lic became increasingly virulent: when the National only with the introduction of the Reichsmark in 1924 Socialists and Reich Chancellor Adolf Hitler came to that prices stabilized again. In addition, the Dawes Plan power in 1933, the Jewish members of the Beiersdorf aligned the reparation payments set out in the Treaty Executive Board stepped down, including Chairman of Versailles with the economic power of the Weimar Willy Jacobsohn. Republic, and German companies were given access to loans based on an international bond issue. The had begun and consumption was on Willy Jacobsohn in 1933 the increase again in Germany. In 1925, under Jacobsohn’s direction, NIVEA arrived on the market in its new blue-and-white garb. As a result, the company’s domestic sales increased three- As P. Beiersdorf & Co. GmbH had already been founded fold by 1929, while its employee headcount in Hamburg back in 1920, the strategy for continuing the company passed the 1,000 mark. At this point, Jacobsohn con- was now focused on a further change in its legal form: centrated on building up the company’s international Beiersdorf became a German stock corporation – or business and spent most of his time traveling. Aktiengesellschaft – on June 1, 1922, with Willy Jacob- This steady growth ended abruptly in 1929 following sohn as Chairman of the five-man Executive Board. In the catastrophic stock market crash in the USA. Among the early , Beiersdorf was still in danger of losing the effects of the crash was that loans to Germany the trademark rights for Pebeco. The lack of licensing were recalled and massive restrictions placed on US revenues led to sizable financial losses from the compa- imports from Europe. Unemployment figures in the Beiersdorf celebrated its 50th anniversary on March 24, 1932. ny’s international business. Jacobsohn gave extensive German Reich went through the roof: Between 1929 The entire Hamburg workforce assembled in the factory thought to how such occurrences could be avoided in and 1931, it rose from 10 % to 24 %, peaking at 34 % in courtyard.

1923 1924 1925 1929 1932 1933 Hyperinflation takes hold in The Reichsmark is introduced Adolf Hitler publishes “Mein “Black Thursday” on October In January, more than 6 million people are The National Socialists come Germany in August. At its in Germany in August, ending Kampf.” The book contains 24 marks the beginning of the registered as unemployed in Germany. to power on January 30. peak, a loaf of bread costs the period of inflation. Hitler’s stylized autobiogra- . Adolf Hitler is appointed Reich over 5 billion marks. Political phy, but for the most part is Chancellor. street battles are fought polemic propaganda with a between National Socialists very specific agenda. and Communists.

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BACKGROUND 1933 – 1938 Willy Jacobsohn and Beiersdorf’s international business Forced departure from Hamburg

As soon as the National Socialists took over power, up, they needed funding. Companies helped each Beiersdorf was subject to anti-Semitic attacks. In 1933, other out. Jacobsohn established a network consist- three of the six Executive Board members – Willy ing of 13 foreign companies. In practical terms, Jacobsohn, Hans Gradenwitz, and Eugen Unna – were Beiersdorf now had two people at the helm – Willy . Jacobsohn declared in a memorandum that Jacobsohn and the new Executive Board Chairman “[…] all members of the Jewish faith and baptized in Hamburg – a fact that immediately led to tensions, Jews are to be removed from our Supervisory Board particularly in financial matters. It was necessary and Executive Board, otherwise our company will be to clearly divide responsibility between the foreign reduced to rubble very soon.” In doing so, he pro- headquarters and the stock company in Hamburg. posed his own removal as Chairman of the Executive To this end, the chain of command for overseas Board. This timely move enabled Beiersdorf to sur- business needed to be completely restructured. vive the National Socialist era in Germany, while Willy Willy Jacobsohn operated in this tense environment Jacobsohn himself relocated to the Netherlands. up until 1938. At the same time, the political and economic situa- A new beginning in the Netherlands tion in the German Reich was becoming increasingly difficult and its Ministry of Economics demanded that From his new base in Amsterdam, he initially began to Beiersdorf part company with Jacobsohn. The Super- set up the company’s foreign headquarters at Beiers- visory Board complied with this in June 1938 by failing dorf N.V. Such a construct had become necessary given to extend Jacobsohn’s contract. When Willy Jacobsohn came on board in 1913, Beiers- Affiliates set up under Willy Jacobsohn: the extent to which the export business of all German Nonetheless, he had left a lasting mark on Beiers- dorf already had over 30 international agents and sales 1914 Austria 1931 Great Britain companies had suffered. It was not just reservations dorf: under Jacobsohn’s leadership, the company had offices, but no active international affiliate as yet. After 1919 Switzerland France about the political situation in the German Reich that not only expanded the Hamburg production facilities the First World War and throughout his career, 1921 The Netherlands Italy weakened sales, there were also emergency decrees on following the First World War but, above all, had taken he set up 17 companies with a view to expanding the USA Hungary 1925 Poland Romania the procurement of foreign and far-reaching its foreign business to a new level. In September 1938, company’s international business in the protectionist 1927 Australia 1933 Argentina measures preventing the transfer of capital between Willy Jacobsohn moved to Los Angeles at the age climate of the 1920s and 1930s and in order to hone 1929 Yugoslavia Finland Germany and other countries. of 54 to begin a new life after some 25 years of service Beiersdorf’s international competitive edge. 1930 Latvia 1934 Sweden However, as many companies were still being set to Beiersdorf. BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB

1933 1935 1938 The boycotting of Jewish Hitler announces the On March 12, German troops A pogrom throughout the businesses begins on April 1. “Nuremberg Laws” at the march into Austria, annexing it German Reich – known as the This was systematically Nuremberg Rally on Septem- into the German Reich. November Pogroms – takes planned by the Nazi regime ber 15, giving a legal basis to place on November 9, 1938. and introduced throughout the discrimination of Jews This event marks the transition the German Reich. based on racial-biological to the systematic persecution criteria. and murder of Jews.

14 Beiersdorf Chronicle · 05 Beiersdorf Chronicle · 05 15 BLUEPRINT April 8, 1933 April 24, 1933 Willy Jacobsohn to Supervisory Supervisory Board to Jacobsohn Board Effective April 18 of this year, we 1938 – 1963 “[…] all members of the Jewish have removed you from the posi- faith and baptized Jews are to be tion of Executive Board Chairman removed from our Supervisory of the Hamburg company given The decision to leave Europe was one that Willy Jacob- Board and Executive Board, that the presence of Jewish From Amsterdam to California sohn considered very carefully. The years following his Farsighted otherwise our company will be persons on the Executive Board departure saw Europe experience the most dreadful reduced to rubble very soon. […] now jeopardizes the continued After all, we can still save the existence of the company. […] At events that it has ever seen. For minorities that did not decisions German business and the perfectly the same time, we are relocating fit into the National Socialist world view, emigration was healthy overseas enterprises in you from Hamburg to Amsterdam often their only chance of survival. Beiersdorf AG’s their entirety.” […] so that you can take over at When the National Socialists come to power in the helm of Beiersdorf N.V. […] company archive only contains a few snippets of Germany in 1933, Willy Jacobsohn is quick to realize and devote your particular atten- information about Willy Jacobsohn’s life after 1938. – and is one of the few members of the Executive tion to the Western European However, he retained close ties with “his” company Board to realize – what this will mean for Beiersdorf: countries. the company would not be able to survive the until the end of his days, as evidenced by an exchange following years with Jewish people on its Executive of letters in the 1950s with then Executive Board Board and Supervisory Board. He takes the nec- Chairman Georg W. Claussen: these letters concerned essary steps and “removes” himself as Executive Board Chairman. Jacobsohn’s planned trip to Hamburg following his 75th birthday. On January 4, 1959, he wrote: “My dear Between 1933 and 1938, he oversees the interna- Beiersdorf friends, one and all […] I know it and you tional companies from his Amsterdam base and is still instrumental in much of the decision-making – know it, too: our mutual affection will remain intact and a fact that must be kept under wraps and that is Jacobsohn with then Executive Board Chairman that is exactly as it should be.” Claussen responded a deliberately misrepresented to the general public Georg W. Claussen at Beiersdorf’s few days later on January 22: “My dear Jacobsohn […] in order to preserve Beiersdorf’s independence. 75th anniversary celebrations in Hamburg in 1957 We still feel very strongly that our gift to you [editor’s note: a plane ticket] was not very generous and in fact was barely enough to convey even a fraction of the affection that we all have for you here at Beiersdorf.” “Everyone who came into contact with him felt the sheer A bond for life February 16, 1938 force of his personality. His Ministry of Economics to A letter written by Willy Jacobsohn to one of his for- Beiersdorf achievements and his character mer staff members five years before his death “It has come to our attention have secured him a place contains a sentence that sums up everything that he that […] directors Claussen and Behrens are both receiv- had felt for Beiersdorf: “Once a Beiersdorfer, always in the annals of our company ing instructions from Jacob- a Beiersdorfer! Active or inactive!” In his years as a sohn regarding the running forever.” “Beiersdorfer” and for the rest of his life, Willy Jacob- of domestic business. We request that this be investi- sohn always saw himself as part of the company. He Obituary of Willy Jacobsohn in Beiersdorf’s employee gated so that the necessary newsletter, 1963 died in Los Angeles in 1963 at the age of 79. steps can be undertaken.”

February 18, 1938 Beiersdorf Supervisory Board 1939 1941 1945 1949 to chamber of industry and commerce Germany invades Poland on Germany attacks the Soviet Germany and Japan surrender. Federal Republic of Germany September 1. The Second Union and declares war The Second World War ends. founded. In the 1950s, the “Under no circumstances World War begins. on the USA. More than 60 million people “economic miracle” goes from does […] Dr. Jacobsohn have died in total, including as many strength to strength. any influence on the running as 6 million Jews. of the […] business […] Dr. Jacobsohn’s five-year contract […] will not be extended.”

16 Beiersdorf Chronicle · 05 Beiersdorf Chronicle · 05 17 PERSPECTIVES The Golden Twenties

In spite of the overwhelming crises 01 (1919 – 1933) Art and architecture were heavily influenced by the Bauhaus that shaped the Willy Jacobsohn era, movement, which took the name of the state art school founded by Walter Gropius. The modern designs focused primarily on the period is still referred to as the function and simple aesthetics, raising the profile of German design worldwide. In 1933, repressive measures by the National IMPRINT “Golden Twenties.” In Germany, the Socialists caused the school to close. term applies only to the short period Publisher: 02 New media /nightlife Beiersdorf AG between 1924 and 1929, which was Corporate Communications In the 1920s, cinema and radio held sway in Germany’s cities. Corporate & Brand History characterized by a moderate, rather Germany boasted more cinemas then any other European Unnastraße 48 country, their number increasing from 2,300 to 5,000 between 20245 Hamburg unstable economic upswing. Art and 1918 and 1930. City dwellers who could afford such luxuries could also enjoy music and nightclubs until the early hours of the [email protected] culture flourished briefly, only to morning. In Berlin, the buildings around and many railway bridges sported neon signs, turning night into day. Editorial and text: founder again for the most part in the Thorsten Finke, Daniel Wallburg economic crisis and under the Nazi 03 Major changes in society Concept and creation: Significantly outnumbering men in the post-war years, women Factor, Hamburg regime. moved into new professions. In 1919, German women were afforded the right to vote and to stand for election. They defined Print: a new role for themselves and secured their position in the Beisner Druck GmbH & Co. KG, Buchholz i. d. N. workplace. Smoking in public was an important expression of What factors made the 1920s a this new freedom. Image credits Focus: All images owned by Beiersdorf AG, Corporate & Brand History “golden” decade? Archive 04 Embracing technology Even though many people could not afford the new technologi- Image credits Timeline: cal wonders, devices such as telephones – as well as general Adolf Hitler (page 11) shutterstock.com / ID 382267171, power supply in cities – were a clear indication of an increasing- unemployed man (page 13) Deutsches Historisches Museum, ly modernized society. At the end of the 1920s, Berlin had the Berlin / Inv.-Nr.: F73 / 422, Adolf Hitler (page 13) Bundesarchiv, highest telephone density in the world. picture 102-14271B / CC-BY-SA 3.0, Austria (page 15) Bundes- archiv, picture 146-1972-028-14 / CC-BY-SA, Poland (page 16) Bundesarchiv, picture 183-1987-1210-502 / Hoffmann, Heinrich / CC-BY-SA 3.0, Economic Miracle (page 16) Bundesarchiv, B 145 Bild-F004204-0003 / Adrian, Doris / CC-BY-SA 3.0. 02 All other images are in the public domain. 04 Image credits Perspectives: 01 Pebeco (page 18) owned by Beiersdorf AG, Corporate & Brand History Archive. All other images are in the public domain.

03 Illustrations: Gregory Gilbert-Lodge, Zürich

Photography: Henning Rogge (page 17)

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