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Max Carol Auschnitt,Cerasela Moldoveanu, "În căutarea lui Schwartz... Contribuția evreilor la Războiul de Întregire Națională a României (1916–1919)", in ''Revista de Istorie Militară'', Issues 5–6/2017, p. 90 also known as Ausschnitt, Auschnit or Aușnit (February 14, 1888 – January 18, 1957),
in ''
The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
'', January 19, 1957
was a Romanian businessman and political figure, one of his country's most prominent industrialists during the interwar period. Born to Ukrainian Jewish immigrants, he spent much of his youth abroad, returning in the 1910s to set up business as an importer of sheet iron, greatly expanding his father's fortune after
World War I World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was List of wars and anthropogenic disasters by death toll, one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, ...
. Auschnitt was caretaker, and from 1929 managing director, of the Iron Domains and Factory (UDR) of
Reșița Reșița (; german: link=no, Reschitz; hu, Resicabánya; hr, Ričica; cz, Rešice; sr, Решица/Rešica; tr, Reşçe) is a city in western Romania and the capital of Caraș-Severin County. It is located in the Banat region. The city ha ...
, as well as founder of Titan-Nădrag-Călan (TNC), regional partner of
Vickers-Armstrongs Vickers-Armstrongs Limited was a British engineering conglomerate formed by the merger of the assets of Vickers Limited and Sir W G Armstrong Whitworth & Company in 1927. The majority of the company was nationalised in the 1960s and 1970s, w ...
, and investor in many other fields. Primarily known as the "iron king" of
Greater Romania The term Greater Romania ( ro, România Mare) usually refers to the borders of the Kingdom of Romania in the interwar period, achieved after the Great Union. It also refers to a pan-nationalist idea. As a concept, its main goal is the creatio ...
, he had a business connection, and later a consuming rivalry, with manufacturer
Nicolae Malaxa Nicolae Malaxa ( – 1965) was a Romanian engineer and industrialist. Biography Born in a family of Greek origin in Huşi, Malaxa studied engineering in Iaşi (at the University of Iaşi) and Karlsruhe (at the Polytechnic University). Lat ...
. The two were associate owners of
Creditanstalt The Creditanstalt (sometimes Credit-Anstalt, abbreviated as CA), full original name k. k. priv. Österreichische Credit-Anstalt für Handel und Gewerbe (), was a major Austrian bank, founded in 1855 in Vienna. From its founding until 1931, th ...
, which established their presence in Europe. First elected to the
Senate A senate is a deliberative assembly, often the upper house or chamber of a bicameral legislature. The name comes from the ancient Roman Senate (Latin: ''Senatus''), so-called as an assembly of the senior (Latin: ''senex'' meaning "the e ...
as an independent corporate member, Auschnitt turned to partisan politics as a financial backer of the
National Peasants' Party The National Peasants' Party (also known as the National Peasant Party or National Farmers' Party; ro, Partidul Național Țărănesc, or ''Partidul Național-Țărănist'', PNȚ) was an agrarian political party in the Kingdom of Romania. It w ...
; he had enduring collaborations with Virgil Madgearu and Dem I. Dobrescu. In tandem, he joined a ''
camarilla A camarilla is a group of courtiers or favourites who surround a king or ruler. Usually, they do not hold any office or have any official authority at the royal court but influence their ruler behind the scenes. Consequently, they also escape havi ...
'' formed around
King King is the title given to a male monarch in a variety of contexts. The female equivalent is queen, which title is also given to the consort of a king. *In the context of prehistory, antiquity and contemporary indigenous peoples, the ...
Carol II, constantly bribing him and his mistress, Elena Lupescu. Such behavior drew negative attention to his businesses, particularly since Auschnitt used his political connections to secure Romanian state contracts, on which his fortune largely rested. His alleged corruption, along with his ethnicity and his publicized
anti-fascism Anti-fascism is a political movement in opposition to fascist ideologies, groups and individuals. Beginning in European countries in the 1920s, it was at its most significant shortly before and during World War II, where the Axis powers were ...
, made him a target for verbal and physical attacks by the far-right movements, in particular the
Iron Guard The Iron Guard ( ro, Garda de Fier) was a Romanian militant revolutionary fascist movement and political party founded in 1927 by Corneliu Zelea Codreanu as the Legion of the Archangel Michael () or the Legionnaire Movement (). It was strong ...
. Auschnitt attempted to diffuse this threat by paying public tributes to
Romanian nationalism Romanian nationalism is the nationalism which asserts that Romanians are a nation and promotes the cultural unity of Romanians. Its extremist variation is the Romanian ultranationalism.Aristotle KallisGenocide and Fascism: The Eliminationist Drive ...
and, more discreetly, by sponsoring the Guardist network. His 1935 marriage to
Augustin Pordea Augustin may refer to: * Augustin (name), male name, variant of Augustine * Augustin (typography), English or 14-point type * Augustin, Brașov, a commune in Brașov County, Romania * Dacian fortress of Augustin, ruined Dacian fortified town ...
's daughter, and his conversion to
Roman Catholicism The Catholic Church, also known as the Roman Catholic Church, is the largest Christian church, with 1.3 billion baptized Catholics worldwide . It is among the world's oldest and largest international institutions, and has played a ...
, elicited additional controversy. Auschnitt found himself at odds with Carol after a string of matrimonial, economic, and geopolitical disputes. Marginalized by the passage of racial laws in 1937, he was further maligned when Carol's
National Renaissance Front The National Renaissance Front ( ro, Frontul Renașterii Naționale, FRN; also translated as ''Front of National Regeneration'', ''Front of National Rebirth'', ''Front of National Resurrection'', or ''Front of National Renaissance'') was a Romani ...
pursued a rapprochement with
Nazi Germany Nazi Germany (lit. "National Socialist State"), ' (lit. "Nazi State") for short; also ' (lit. "National Socialist Germany") (officially known as the German Reich from 1933 until 1943, and the Greater German Reich from 1943 to 1945) was ...
. He was arrested shortly after the start of
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the World War II by country, vast majority of the world's countries—including all of the great power ...
, and imprisoned following a show trial. In the process, he lost his UDR shares, which went to Malaxa and Albert Göring, and then his citizenship. Carol himself fell from power in 1940, with
Ion Antonescu Ion Antonescu (; ; – 1 June 1946) was a Romanian military officer and marshal who presided over two successive wartime dictatorships as Prime Minister and '' Conducător'' during most of World War II. A Romanian Army career officer who ma ...
replacing him as dictator. Despite being antisemitic, this new regime bargained over TNC shares, and finally cleared Auschnitt of all charges in 1942. Once freed, he turned to sponsoring opposition groups, and was also involved in helping fellow Jews to escape the
Holocaust The Holocaust, also known as the Shoah, was the genocide of European Jews during World War II. Between 1941 and 1945, Nazi Germany and its collaborators systematically murdered some six million Jews across German-occupied Europe; ...
. He had a minor role in plotting the anti-fascist coup of 1944, though he himself had to flee Romania before the event, and was
sentenced to death Capital punishment, also known as the death penalty, is the state-sanctioned practice of deliberately killing a person as a punishment for an actual or supposed crime, usually following an authorized, rule-governed process to conclude that t ...
''
in absentia is Latin for absence. , a legal term, is Latin for "in the absence" or "while absent". may also refer to: * Award in absentia * Declared death in absentia, or simply, death in absentia, legally declared death without a body * Election in abse ...
''. Returning to assist the
Allied Commission Following the termination of hostilities in World War II, the Allies were in control of the defeated Axis countries. Anticipating the defeat of Germany and Japan, they had already set up the European Advisory Commission and a proposed Far Easte ...
, he was slowly pushed back into exile by signs that the
Romanian Communist Party The Romanian Communist Party ( ro, Partidul Comunist Român, , PCR) was a communist party in Romania. The successor to the pro-Bolshevik wing of the Socialist Party of Romania, it gave ideological endorsement to a communist revolution that wou ...
was establishing a new dictatorship. The new
communist regime A communist state, also known as a Marxist–Leninist state, is a one-party state that is administered and governed by a communist party guided by Marxism–Leninism. Marxism–Leninism was the state ideology of the Soviet Union, the Com ...
again withdrew Auschnitt's citizenship, before pronouncing him guilty of treason. This charge referred to Auschnitt's involvement with anti-communist resistance groups, including his allegedly financing Nicolae Petrașcu's Iron Guard cells. Stripped of his Romanian properties, Auschnitt relaunched himself as an entrepreneur in the
plastics industry The plastics industry manufactures polymer materials—commonly called plastics—and offers services in plastics important to a range of industries, including packaging, building and construction, electronics, aerospace, and transportation. It is ...
, and obtained American citizenship. His final political activities were as a sponsor of the
Romanian National Committee Several political organisations have been called Romanian National Committee: * Romanian National Committee (1848), made to coordinate the 1848 revolutions of Romanians in Transylvania * Romanian National Committee (1918), with the aim of unifying ...
, which split into pro-Auschnitt and pro-Malaxa factions, respectively led by Constantin Vișoianu and Nicolae Rădescu.


Biography


Beginnings

Auschnitt was the scion of Ukrainian Jewish immigrantsRomulus Damian, "Cetățenii noștri clandestini", in '' Gazeta Transilvaniei'', Issue 97/1939, p. 4 Dani Dancea
"Fiul marelui industriaș Max Aușnit a primit cheia orașului în care a construit cea mai modernă parcare de camioane din România"
in ''
Adevărul ''Adevărul'' (; meaning "The Truth", formerly spelled ''Adevĕrul'') is a Romanian daily newspaper, based in Bucharest. Founded in Iași, in 1871, and reestablished in 1888, in Bucharest, it was the main left-wing press venue to be published du ...
'' (Timișoara edition), July 18, 2014
listed as nationals of
Austria-Hungary Austria-Hungary, often referred to as the Austro-Hungarian Empire,, the Dual Monarchy, or Austria, was a constitutional monarchy and great power in Central Europe between 1867 and 1918. It was formed with the Austro-Hungarian Compromise of ...
,"Jurnale ale Consiliului de Miniștri. Ministerul de Justiție", in ''
Monitorul Oficial ''Monitorul Oficial al României'' is the official gazette of Romania, in which all the promulgated bills, presidential decrees, governmental A government is the system or group of people governing an organized community, genera ...
'', Issue 286/1939, pp. 7135–7136
though he may have claimed Sephardic ancestry. A hostile piece by journalist Romulus Damian claims that the Auschnitts, including Max's father Olias, his mother Clara, and his elder brother Edgar, had illegally crossed into the
Romanian Kingdom The Kingdom of Romania ( ro, Regatul României) was a constitutional monarchy that existed in Romania from 13 March ( O.S.) / 25 March 1881 with the crowning of prince Karl of Hohenzollern-Sigmaringen as King Carol I (thus beginning the Romania ...
from
Galicia Galicia may refer to: Geographic regions * Galicia (Spain), a region and autonomous community of northwestern Spain ** Gallaecia, a Roman province ** The post-Roman Kingdom of the Suebi, also called the Kingdom of Gallaecia ** The medieval King ...
, and then bribed the authorities into obtaining citizenship. This claim was repeated in 1939 by Justice Minister
Istrate Micescu Istrate N. Micescu (22 May 1881 – 22 May 1951) was a Romanian lawyer, Law and Political Science professor at the University of Bucharest's Law Department, and politician who served as the Minister of Foreign Affairs of Romania. Early life Mices ...
, who described the Auschnitts' naturalization as based on "dubious certificates". Known in early records as "Osias Ausschnitt", Max's father had a background in the iron trade. He registered his own import–export firm in the port city of
Galați Galați (, , ; also known by other alternative names) is the capital city of Galați County in the historical region of Western Moldavia, in eastern Romania. Galați is a port town on the Danube River. It has been the only port for the most pa ...
on June 14, 1884. Olias steadily amassed a large fortune, which in 1908 included one of Romania's two largest ''
entrepôt An ''entrepôt'' (; ) or transshipment port is a port, city, or trading post where merchandise may be imported, stored, or traded, usually to be exported again. Such cities often sprang up and such ports and trading posts often developed into c ...
s'', and which Max would later treble."El rey de las tres mujeres", in ''Mundial'', Vol. IV, Issue 48, April 1943, . p./ref> The family home in Galați was situated across from that of Panait Malaxa, uncle of Auschnitt's lifelong business rival,
Nicolae Malaxa Nicolae Malaxa ( – 1965) was a Romanian engineer and industrialist. Biography Born in a family of Greek origin in Huşi, Malaxa studied engineering in Iaşi (at the University of Iaşi) and Karlsruhe (at the Polytechnic University). Lat ...
.Mihai Sorin Rădulescu, "Aperçu sur la généalogie de la famille Malaxa", in ''Archiva Moldaviae'', Vol. VI, 2014, p. 61 According to one account, Max grew up in Galați, his native city, and attended the same school as Virgil Madgearu, who was to become his political associate. This is contradicted by other records, which note that Olias had been moved back into Austria-Hungary "shortly after Max's birth", meaning that the latter spent all his childhood years in
Vienna en, Viennese , iso_code = AT-9 , registration_plate = W , postal_code_type = Postal code , postal_code = , timezone = CET , utc_offset = +1 , timezone_DST ...
, only returning to Galați in 1910. It is known that he studied abroad, in Vienna and
London London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...
,"Max Auschnitt, Zaharov 1938. L'homme le plus riche de Roumanie s'exile volontairement en Angleterre", in ''Ce Soir'', February 2, 1938, p. 7 graduating from the Academy for Advanced Commercial Studies. Upon regaining Romania, he formed a commercial firm dealing in Austrian sheet-iron imports, and then set up the Kingdom's first wire manufacturing plant. Rumors surfaced that such ventures were being propped up financially by the Austrian secret police. Several members of the Auschnitt family, including Max, served in the
Romanian Army The Romanian Land Forces ( ro, Forțele Terestre Române) is the army of Romania, and the main component of the Romanian Armed Forces. In recent years, full professionalisation and a major equipment overhaul have transformed the nature of the La ...
during the campaigns of World War I, which resulted in the establishment of
Greater Romania The term Greater Romania ( ro, România Mare) usually refers to the borders of the Kingdom of Romania in the interwar period, achieved after the Great Union. It also refers to a pan-nationalist idea. As a concept, its main goal is the creatio ...
; Edgar had been bypassed for the 1915 draft, after presenting himself as an Austro-Hungarian subject. Economist Nicolae Păvălucă suggests that Max Auschnitt built his personal wealth around the Galați nails factory that was sold to him by Niță Caltofeanu "not long after the first world war". He moved his offices to the
Banat Banat (, ; hu, Bánság; sr, Банат, Banat) is a geographical and historical region that straddles Central and Eastern Europe and which is currently divided among three countries: the eastern part lies in western Romania (the counties of ...
once that region united with Romania, entrusted with the administration of the Iron Domains and Factory (UDR). According to his own account, he was asked to become full manager of that company in 1929, after stocks had plummeted. Ioan Scurtu
"Max Auschnitt, de la pocherul regal la închisoarea Văcărești"
in ''Historia'', January 2012
He established an empire that included the UDR, as well as smaller factories or mines in such places as
Anina Anina (; German: ''Steierdorf''; Hungarian: ''Stájerlakanina'') is a town in the Banat region of Romania, in Caraș-Severin County, with a population of 10,886 in 2000. The town administers one village, Steierdorf (German: ''Steierdorf'', Hung ...
, Armeniș, and Bocșa. His land property was said to cover 150,000
acre The acre is a unit of land area used in the imperial and US customary systems. It is traditionally defined as the area of one chain by one furlong (66 by 660 feet), which is exactly equal to 10 square chains, of a square mile, 4,840 square ...
s,"La fille du rajah de Sarawak va épouser un millionaire roumain", in '' La Liberté'', September 24, 1932, p. 3 including 11,000
hectare The hectare (; SI symbol: ha) is a non-SI metric unit of area equal to a square with 100- metre sides (1 hm2), or 10,000 m2, and is primarily used in the measurement of land. There are 100 hectares in one square kilometre. An acre is ...
s of forest outside Nădrag. Romulus Căplescu
"Richard Nixon a intervenit pentru Malaxa în războiul cu Auschnitt"
in ''Historia'', February 2012
Auschnitt went on to serve as President of the Banat's General Association of Industry and Vice General of the Union of Industrialists of Romania. Dubbed "iron king"
Petru Groza Petru Groza (7 December 1884 – 7 January 1958) was an Austro-Hungarian-born Romanian politician, best known as the first Prime Minister of the Communist Party-dominated government under Soviet occupation during the early stages of the Commu ...
, ''În umbra celulei. Malmaison, 1943–1944, iarna'', p. 83. Bucharest: Editura Cartea Rusă, 1945
and "Romania's Zaharoff", he was overall "the greatest power in Rumania's armament, mining and metal industries.""Arms Mogul Defies Iron Guard, Weds Rumanian Girl Secretly"
in the ''Jewish Daily Bulletin'', June 21, 1935, pp. 1, 3
Together with his brother Edgar, Max owned several steel and munitions businesses including the Titan-Nădrag-Călan (TNC) chain, which is claimed to have employed over 4,900 workers. Through this group, formed in 1924, Max was connected to
Vickers-Armstrongs Vickers-Armstrongs Limited was a British engineering conglomerate formed by the merger of the assets of Vickers Limited and Sir W G Armstrong Whitworth & Company in 1927. The majority of the company was nationalised in the 1960s and 1970s, w ...
, making him a participant in the European arms trade. This reflected his
Anglophile An Anglophile is a person who admires or loves England, its people, its culture, its language, and/or its various accents. Etymology The word is derived from the Latin word '' Anglii'' and Ancient Greek word φίλος ''philos'', meaning "frie ...
outlook, first brought up when he defended Vickers against rivals at
Škoda Works The Škoda Works ( cs, Škodovy závody, ) was one of the largest European industrial conglomerates of the 20th century, founded by Czech engineer Emil Škoda in 1859 in Plzeň, then in the Kingdom of Bohemia, Austrian Empire. It is the prede ...
. Auschnitt was especially successful as owner of the UDR, which had amassed 1 billion lei in capital. This enterprise alone had 17,000 salaried workers, covering 80% of Romania's steel production, and 50% of locomotives, while acquiring most of Astra Brașov, an automotive plant, and minority shares in
Galați shipyard __NOTOC__ The Galați shipyard ( ro, Șantierul naval Galați), formally Damen Shipyards Galați, is a shipyard located on the Danube in Galați, a city located in the Moldavia region of Romania. History Origins through communism Shipbuilding is a ...
. From 1930, a syndicate comprising the TNC,
Creditanstalt The Creditanstalt (sometimes Credit-Anstalt, abbreviated as CA), full original name k. k. priv. Österreichische Credit-Anstalt für Handel und Gewerbe (), was a major Austrian bank, founded in 1855 in Vienna. From its founding until 1931, th ...
, and Chrissoveloni Bank controlled 60% of UDR shares, while Vickers had an additional 13%. From 1934, the UDR agreed to co-sponsor all state orders for Vickers canons and ammunition. Auschnitt claimed that Edgar alone ran TNC from 1929, but his connections to that company surfaced in later talk about his
conflicts of interest A conflict of interest (COI) is a situation in which a person or organization is involved in multiple interests, financial or otherwise, and serving one interest could involve working against another. Typically, this relates to situations ...
. He was also among the managers of various foreign companies in Central Europe, as well as of Romanian-based companies, including Chrissoveloni and the Romanian Telephone Company. In 1931, he allied himself to Malaxa in order to acquire
controlling interest A controlling interest is an ownership interest in a corporation with enough voting stock shares to prevail in any stockholders' motion. A majority of voting shares (over 50%) is always a controlling interest. When a party holds less than the majo ...
in Creditanstalt. This business was overseen through their consortium, the ''Compagnie Européenne de Participations Industrielles'' (CEPI), which operated out of
Monaco Monaco (; ), officially the Principality of Monaco (french: Principauté de Monaco; Ligurian: ; oc, Principat de Mónegue), is a sovereign ''Sovereign'' is a title which can be applied to the highest leader in various categories. The word ...
. A "brainchild of the Aușnit brothers", CEPI also provided security for Vickers' return on investments, which, in Monaco, were "free of currency restrictions and political danger". Journalists circulated rumors according to which Auschnitt had enjoyed a close connection to Carol Caraiman, who, in 1930, became Carol II, King of the Romanians. According to such reports, it was he who arranged for Carol to meet and fall in love with Elena Lupescu, while also sponsoring him during his 1920s exile. Auschnitt belonged to a branch of Romanian Freemasonry, frequenting Meșterul Manole Lodge alongside Malaxa and
Aristide Blank Aristide or Aristid Blank, also spelled Blanc or Blanck (January 1, 1883 – January 1, 1960), was a Romanian financier, economist, arts patron and playwright. His father, Mauriciu Blank, an assimilated and naturalized Romanian Jew, was manager ...
, and, through it, sponsoring ''
Revista Fundațiilor Regale ''Revista Fundațiilor Regale'' ("The Review of Royal Foundations") was a monthly literary, art and culture magazine published in Romania Romania ( ; ro, România ) is a country located at the crossroads of Central, Eastern, and Southe ...
'', a political-cultural journal. All three financiers were also visible members of Carol's ''
camarilla A camarilla is a group of courtiers or favourites who surround a king or ruler. Usually, they do not hold any office or have any official authority at the royal court but influence their ruler behind the scenes. Consequently, they also escape havi ...
''—although Auschnitt's inclusion was comparatively late. By January 1936, six former Finance Ministers, including two of the
National Peasants' Party The National Peasants' Party (also known as the National Peasant Party or National Farmers' Party; ro, Partidul Național Țărănesc, or ''Partidul Național-Țărănist'', PNȚ) was an agrarian political party in the Kingdom of Romania. It w ...
(PNȚ), were reportedly serving on the TNC's executive board. Such connections became the source of controversy, since Auschnitt, like Malaxa and
Dumitru Mociornița Dumitru is a Romanian surname and given name. Notable people with the surname include: * Alina Alexandra Dumitru (born 1982), Romanian judoka * Alexe Dumitru (1935–1971), Romanian sprint canoer * Ion Dumitru (born 1950), Romanian footballer * Ni ...
, thrived on government contracts. As noted by economic historian Horațiu Dan, these figures "prospered strictly from contracts involving the state." Horațiu Dan
"Economia românească interbelică și rolul sistemului bancar în dezvoltarea economică"
in ''Revista Hiperboreea'', Issue 3/2013, p. 39
Similarly, historian Ioan Scurtu mentions the "huge profits" collected by Auschnitt and Malaxa from such ventures, and how these were shared with Carol and his courtiers, including Ernest Urdăreanu. According to Scurtu, Carol was first persuaded to form this ring in June 1931, when Malaxa and Auschnitt presented him with a large bag of cash.


Iron Guard and wedding affair

From 1929 to 1933, Auschnitt represented Galați Chamber of Commerce and Industry in the
Senate of Romania ) is the upper house in the bicameral Parliament of Romania. It has 136 seats (before the 2016 Romanian legislative election the total number of elected representatives was 176), to which members are elected by direct popular vote using party-li ...
.Octavian Roske ''et al.'', ''Mecanisme represive în România, 1945–1989. Dicționar biografic, I: A–C'', p. 160. Bucharest: National Institute for the Study of Totalitarianism, 2001. Although he ran and won as an independent, he received official backing from the PNȚ administration in the July 1932 reelection, running unopposed. In that context, Auschnitt was becoming noted as the PNȚ's financial backer."Cine nu știe?!", in '' Gazeta Transilvaniei'', Issue 97/1937, p. 1Elizabeth Hazard, "Războiul Rece a început în România", in '' Magazin Istoric'', August 1996, p. 51 Lawyer-memoirist Petre Pandrea alleges that Auschnitt had corrupted his old friend Madgearu, who was by then the PNȚ ideologue, ensuring that Madgearu never acted in the interest of Romanian peasants. According to files kept by agents of the ''
Siguranța Siguranța was the generic name for the successive secret police services in the Kingdom of Romania. The official title of the organization changed throughout its history, with names including Directorate of the Police and General Safety ( ro, Di ...
'', Auschnitt was also especially close to politician Dem I. Dobrescu. At a time when 32% of Romanian commercial enterprises were owned by
Romanian Jews The history of the Jews in Romania concerns the Jews both of Romania and of Romanian origins, from their first mention on what is present-day Romanian territory. Minimal until the 18th century, the size of the Jewish population increased after ...
, ethnicity and a high profile in financial life made Auschnitt a topic of antisemitic libel, including blackmail by the
Iron Guard The Iron Guard ( ro, Garda de Fier) was a Romanian militant revolutionary fascist movement and political party founded in 1927 by Corneliu Zelea Codreanu as the Legion of the Archangel Michael () or the Legionnaire Movement (). It was strong ...
. Already in the late 1920s, Auschnitt allegedly purchased scrap iron from Iron Guard cooperatives, as a means to disguise his purchase of influence. However, protection remained uncertain: according to one report, an associate of the Guard, Gheorghe Beza, received 20,000 lei from Constantin C. Orghidan, manager of TNC, to assassinate his boss. ''Siguranța'' records also include allegations that Auschnitt, Malaxa and Dobrescu were behind the magazines ''Credința'' and ''Floarea de Foc'', launched by
Sandu Tudor Sandu Tudor (; born Alexandru Al. Teodorescu, known in church records as Brother Agathon, later Daniil Teodorescu, Daniil Sandu Tudor, Daniil de la Rarău; December 22 or December 24, 1896 – November 17, 1962) was a Romanian poet, journalist, th ...
in an attempt to promote Christian anti-fascism. It remains more credibly attested that Auschnitt was by then a sponsor of anti-fascist campaigns in various other newspapers and journals. However, the outlawed
Romanian Communist Party The Romanian Communist Party ( ro, Partidul Comunist Român, , PCR) was a communist party in Romania. The successor to the pro-Bolshevik wing of the Socialist Party of Romania, it gave ideological endorsement to a communist revolution that wou ...
cited Auschnitt exclusively as a "warmonger"—a charge which appears for instance in a February 1934 article by
Gheorghe Gheorghiu-Dej Gheorghe Gheorghiu-Dej (; 8 November 1901 – 19 March 1965) was a Romanian communist politician and electrician. He was the first Communist leader of Romania from 1947 to 1965, serving as first secretary of the Romanian Communist Party ...
. In late 1933, a Guardist death squad murdered
Prime Minister A prime minister, premier or chief of cabinet is the head of the cabinet and the leader of the ministers in the executive branch of government, often in a parliamentary or semi-presidential system. Under those systems, a prime minister is ...
Ion G. Duca, exposing the movement to Carol's violent retaliation. As reported by writer R. G. Waldeck, the Guardist leader
Corneliu Zelea Codreanu Corneliu Zelea Codreanu (; born Corneliu Codreanu, according to his birth certificate; 13 September 1899 – 30 November 1938) was a Romanian politician of the far right, the founder and charismatic leader of the Iron Guard or ''The Legion o ...
, fearing for his life, messaged Auschnitt the warning: "If you don't find a way to save me, you'll be bumped off next." According to this account, Auschnitt and Lupescu, by then a royal mistress, hid Codreanu from the authorities, and also negotiated a truce; Waldeck also claims that Auschnitt and Malaxa agreed to finance the Iron Guard, thus ensuring its political survival into the post-Duca era. The allegation was also publicized by Panait Istrati, who sympathized with the anti-Codreanu group, the Crusade of Romanianism. He noted that Guardists took Auschnitt's money while still reining violence on lower-class Jews, who were powerless. According to historian Grigore Traian Pop, the claim that Auschnitt was Codreanu's sponsor is fundamentally inaccurate, and planted in the public arena by Blank and
Victor Iamandi Victor Iamandi (February 15, 1891 – 26 November 1940) was a Romanian politician who served as the Romanian Minister of Justice in 1938–1939, in several successive cabinets. He was born in Hodora, Iași County, the son of Ion and Lucreția ...
, who were Auschnitt's rivals at the court. Several Guardists have independently confirmed that Auschnitt advanced sizable contributions to their cause over an unspecified period—though, as noted by historian Roland Clark, these merely showed that he wanted his business protected from harm. The conflict between Codreanu and Auschnitt was finally resumed in 1934, when the Guard's press referred to "Max Auschnitt the kike", "national bloodsucker", as the power behind the throne. This notion was also embraced by the
Romanian Front The Romanian Front ( ro, Frontul Românesc, FR) was a moderate fascist party created in Romania in 1935. Led by former Prime Minister Alexandru Vaida-Voevod, it originated as a right-wing splinter group from the mainstream National Peasants' Part ...
(FR), a far-right dissidence of the PNȚ, whose newspapers claimed that "the kike Max Auschnit" had steadily raised the price of iron after 1930. As Damian argued: "He, the Jew from Galicia, determined whether of not the Romanian peasant deserved to own a plow .. He dictated the price of nails, of corrugation, of iron, or heating stoves, of gutter pipes, of anything iron-related". Auschnitt's first marriage was to a Jewish woman,"Entre os detidos encontra-se o governador geral das fabricas de aço 'Titan'", in '' Diário Carioca'', November 15, 1939, p. 5 Nelly, who in March 1924 gave birth to a son, later known as Steve Aușnit.''In Memory of Steve Ausnit, TOLI Board Member''
The Olga Lengyel Institute for Holocaust Studies and Human Rights, November 18, 2019
Her father, the banker Arnold Aronovici, cemented Auschnitt's links with British capital, and allegedly plotted with him to bring in a small British firm, Stewart & Partners, as builders of the Bucharest–Brașov highway; this scheme also involved some in the PNȚ, in particular Madgearu. Nelly died "after brief suffering" on February 16, 1927, aged 26. Max was then engaged to Leonora Brooke, daughter of the
White Rajah The White Rajahs were a dynastic monarchy of the British Brooke family, who founded and ruled the Raj of Sarawak, located on the north west coast of the island of Borneo, from 1841 to 1946. The first ruler was Briton James Brooke. As a reward f ...
,
Charles Vyner Brooke Vyner, Rajah of Sarawak, GCMG, full name Charles Vyner de Windt Brooke (26 September 1874 – 9 May 1963) was the third and last White Rajah of the Raj of Sarawak. Early life The son of Charles Brooke and his wife Margaret de Windt ( Ranee ...
, whom he was set to marry in September 1933. The wedding was called off, allegedly because Lenore favored another lover.Marius Ionescu, "Pași în trecut. O vilă la șosea", in ''Bună Dimineața, București!'', Issue 5/2013, p. 7 Auschnitt remained noted for his escapades with film stars and high-society ladies, before finally marrying Livia Pordea (also rendered as Prodea or Pordeanu), from a political family of
Cluj ; hu, kincses város) , official_name=Cluj-Napoca , native_name= , image_skyline= , subdivision_type1 = County , subdivision_name1 = Cluj County , subdivision_type2 = Status , subdivision_name2 = County seat , settlement_type = City , le ...
. His father-in-law was
Augustin Pordea Augustin may refer to: * Augustin (name), male name, variant of Augustine * Augustin (typography), English or 14-point type * Augustin, Brașov, a commune in Brașov County, Romania * Dacian fortress of Augustin, ruined Dacian fortified town ...
, at the time a serving as Vice President in the Senate. Romulus Căplescu
"Ginerele lui Malaxa, George Emil Palade, primul român laureat al Premiului Nobel"
in ''Historia'', March 2017
The wedding came in January 1935, at the same time as Auschnitt's conflict with the Iron Guard, and therefore had to take place in secrecy, at Augustin Pacha's chapel in
Timișoara ), City of Roses ( ro, Orașul florilor), City of Parks ( ro, Orașul parcurilor) , image_map = Timisoara jud Timis.svg , map_caption = Location in Timiș County , pushpin_map = Romania#Europe , pushpin_ ...
. Respecting the wishes of his in-laws, Auschnitt abandoned Judaism and converted to Catholicism. Reputedly, the issue of his conversion only served to enrage his Guardist adversaries. It also caused a polemic in religious circles, sparked by the observation that the Pordeas were
Greek Catholics The term Greek Catholic Church can refer to a number of Eastern Catholic Churches following the Byzantine (Greek) liturgy, considered collectively or individually. The terms Greek Catholic, Greek Catholic church or Byzantine Catholic, Byzantine Ca ...
, whereas Auschnitt had opted for the
Roman Catholic Church The Catholic Church, also known as the Roman Catholic Church, is the largest Christian church, with 1.3 billion baptized Catholics worldwide . It is among the world's oldest and largest international institutions, and has played a ...
. Pandrea claims that Madgearu became the Auschnitts' godfather, though other sources contrarily allege that he was their godson. Auschnitt bought his family the
Gheorghe Manu Gheorghe Manu (26 July 1833, Bucharest, Wallachia – 16 May 1911, Bucharest, Kingdom of Romania) was a Romanian Army general, artillery inspector and statesman. He served as Prime Minister (1889–1891), Minister of War, Minister of the Inter ...
villa on Aleea Alexandru, Dorobanți,
Bucharest Bucharest ( , ; ro, București ) is the capital and largest city of Romania, as well as its cultural, industrial, and financial centre. It is located in the southeast of the country, on the banks of the Dâmbovița River, less than north ...
. Designed by Grigore Cerchez, and partly redecorated by Auschnitt himself, it was situated very near to Malaxa's residence. The Billionaires' Club, which reunited Auschnitt with Malaxa and Constantin Argetoianu, was housed at this location until 1937, when its members rented
Elisabeta Palace Elisabeta Palace () is a palace on Kiseleff Road in Bucharest, Romania. Built in 1936, it is the official residence in Romania of Margareta of Romania, her husband Prince Radu, and her sister Princess Maria. The Palace was designed in 1930 ...
. Argetoianu reports that, in 1937, Auschnitt also attempted to buy a portion of Romania's sugar industry from Creditanstalt, which had foreclosed various Romanian
refineries A refinery is a production facility composed of a group of chemical engineering unit processes and unit operations refining certain materials or converting raw material into products of value. Types of refineries Different types of refineries ...
. He found himself overwhelmed by liabilities and resold his shares to Carol II, who immediately obtained a
debt restructuring Debt restructuring is a process that allows a private or public company or a sovereign entity facing cash flow problems and financial distress to reduce and renegotiate its delinquent debts to improve or restore liquidity so that it can contin ...
. For a while, the new couple was especially close to Lupescu, for whom Auschnitt and other ''camarilla'' businessmen obtained villas in Dorobanți and
Sinaia Sinaia () is a town and a mountain resort in Prahova County, Romania. It is situated in the historical region of Muntenia. The town was named after the Sinaia Monastery of 1695, around which it was built. The monastery, in turn, is named afte ...
. Auschnitt alone purchased from the
Aga Khan Aga Khan ( fa, آقاخان, ar, آغا خان; also transliterated as ''Aqa Khan'' and ''Agha Khan'') is a title held by the Imām of the Nizari Ismāʿīli Shias. Since 1957, the holder of the title has been the 49th Imām, Prince Shah Kari ...
the steed Firdussi, which he then presented as a gift for Carol. According to reports by Carol's lawyer George de Berea, Auschnitt and Malaxa met in Lupescu's house for poker matches, using gold coins as tokens. Argetoianu notes that Auschnitt made sure to play a losing hand. Auschnitt's extreme wealth made him into a patron of the arts. Though a Catholic, he donated to the Orthodox parishes in Hăuzești and
Săceni Săceni is a commune in Teleorman County, Muntenia, Romania Romania ( ; ro, România ) is a country located at the crossroads of Central, Eastern, and Southeastern Europe. It borders Bulgaria to the south, Ukraine to the north, Hungary ...
. From 1935, his donations helped Gavrilă Marinescu build an administrative palace for the
Romanian Police The Romanian Police ( ro, Poliția Română, ) is the national police force and main civil law enforcement agency in Romania. It is subordinated to the Ministry of Internal Affairs and it is led by a General Inspector with the rank of Secretary ...
. One anecdote suggests that Auschnitt also heard actors Grigore Vasiliu Birlic and
Ion Iancovescu An ion () is an atom or molecule with a net electrical charge. The charge of an electron is considered to be negative by convention and this charge is equal and opposite to the charge of a proton, which is considered to be positive by conven ...
plead for financial assistance, before presenting them with a literal wall of cash, and asking them to pick out a layer of money. His social advancement also raised the profile of Livia's brother, August "Gustave" Pordea, who took as his lover the actress
Elvira Godeanu Elvira Godeanu (1904–1991) was a Romanian stage actress.Modorcea p.292 She also appeared in four films. Selected filmography * '' Povara'' (1928) * '' A Lost Letter'' (1953) References Bibliography * Grid Modorcea. ''Istoria gândirii e ...
.


Marginalization

Auschnitt also remained discreetly involved in political life, a sponsor of less radical nationalist platforms, leading to paradoxes. One such "incongruity" is noted by Pandrea, according to whom the PNȚ used Auschnitt's "recent subsidies" to publish
Ernest Ene Ernest is a given name derived from Germanic word ''ernst'', meaning "serious". Notable people and fictional characters with the name include: People *Archduke Ernest of Austria (1553–1595), son of Maximilian II, Holy Roman Emperor * Ernest, ...
's calls to
nationalize Nationalization (nationalisation in British English) is the process of transforming privately-owned assets into public assets by bringing them under the public ownership of a national government or state. Nationalization usually refers to priv ...
Romania's heavy industry. At a meeting of the General Union of Industrialists in November 1935, Auschnitt himself argued for
tariff A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and p ...
s on Romanian exports as a means of preventing "weak-currency countries" from competing with local factories. In August 1936, he published in ''La Roumanie Nouvelle'' a favorable review of Romania's industrial "
autarky Autarky is the characteristic of self-sufficiency, usually applied to societies, communities, states, and their economic systems. Autarky as an ideal or method has been embraced by a wide range of political ideologies and movements, especiall ...
", demanding protectionist measures in agriculture and mining. Later that year, rumors that Auschnitt had attended a hunting party with PNȚ leaders
Iuliu Maniu Iuliu Maniu (; 8 January 1873 – 5 February 1953) was an Austro-Hungarian-born lawyer and Romanian politician. He was a leader of the National Party of Transylvania and Banat before and after World War I, playing an important role in the U ...
and
Ion Mihalache Ion Mihalache (; March 3, 1882 – February 5, 1963) was a Romanian agrarian politician, the founder and leader of the Peasants' Party (PȚ) and a main figure of its successor, the National Peasants' Party (PNȚ). Early life A schoolteacher bor ...
were dismissed by the party press as "intended to stoke the people's animosity". With the outbreak of the
Spanish Civil War The Spanish Civil War ( es, Guerra Civil Española)) or The Revolution ( es, La Revolución, link=no) among Nationalists, the Fourth Carlist War ( es, Cuarta Guerra Carlista, link=no) among Carlism, Carlists, and The Rebellion ( es, La Rebeli ...
, Auschnitt maintained a personal friendship with the
Francoist Francoist Spain ( es, España franquista), or the Francoist dictatorship (), was the period of Spanish history between 1939 and 1975, when Francisco Franco ruled Spain after the Spanish Civil War with the title . After his death in 1975, Spai ...
ambassador, Pedro Prat y Soutzo. Prat claimed that Auschnitt sponsored his diplomatic mission, though, as noted by scholar Judith Keene, this too was an attempt by the businessman to appease the Romanian fascists. In August 1937, the FR's
Alexandru Vaida-Voevod Alexandru Vaida-Voevod or Vaida-Voievod (27 February 1872 – 19 March 1950) was an Austro-Hungarian-born Romanian politician who was a supporter and promoter of the union of Transylvania (before 1920 part of Hungary) with the Romanian Old King ...
claimed that Auschnitt had even acknowledged
employment discrimination Employment discrimination is a form of illegal discrimination in the workplace based on legally protected characteristics. In the U.S., federal anti-discrimination law prohibits discrimination by employers against employees based on age, race, ...
favoring Romanians as a positive. Vaida hypothesized that Auschnitt's baptism had changed his perspective on
Romanianization Romanianization is the series of policies aimed toward ethnic assimilation implemented by the Romanian authorities during the 20th and 21st century. The most noteworthy policies were those aimed at the Hungarian minority in Romania, Jews and as ...
; he also hinted that such messaging was vetted by the PNȚ, which was courting the far-right. During that same interval,
Octavian Goga Octavian Goga (; 1 April 1881 – 7 May 1938) was a Romanian politician, poet, playwright, journalist, and translator. Life and politics Goga was born in Rășinari, near Sibiu. Goga was an active member in the Romanian nationalis ...
noted that PNȚ figures were borrowing ideas from his own
National Christian Party The National Christian Party ( ro, Partidul Național Creștin) was a radical-right authoritarian and strongly antisemitic political party in Romania active between 1935 and 1938. It was formed by a merger of Octavian Goga's National Agrarian Pa ...
, and "posing as nationalist reformers, presumably with Mr. Auschnitt's blessing". From September, Auschnitt's activities became a main topic of scrutiny for the pro-fascist daily ''
Universul ''Universul'' was a mass-circulation newspaper in Romania. It existed from 1884 to 1953, and was run by Stelian Popescu from 1914 to 1943 (with a two-year break during World War I World War I (28 July 1914 11 November 1918), often abbrev ...
'', whose staff believed that he was behind
Zaharia Stancu Zaharia Stancu (; October 7, 1902 – December 5, 1974) was a Romanian prose writer, novelist, poet, and philosopher. He was also the director of the National Theatre Bucharest, the President of the Writers' Union of Romania, and a titular memb ...
's left-wing newspaper, ''Lumea Românească''. Ahead of national elections in December, Auschnitt became a Senate candidate for the PNȚ. As noted by Argetoianu, the Iron Guard believed that Auschnitt was maneuvering to set up a new government team under
Ion Mihalache Ion Mihalache (; March 3, 1882 – February 5, 1963) was a Romanian agrarian politician, the founder and leader of the Peasants' Party (PȚ) and a main figure of its successor, the National Peasants' Party (PNȚ). Early life A schoolteacher bor ...
, which greatly enraged Codreanu and his followers; however, the allegation was dismissed by Edgar, according to whom Max was "not up to anything". Eventually, Auschnitt retook a Senate seat in Romania's 1937 legislature. During the conflicts of that year, the Iron Guard reportedly threw an explosive device at the Aleea Alexandru villa; after this incident, Auschnitt dispatched Steve to safety in England. Auschnitt confessed being taken by surprise when Carol appointed Goga as Premier, as the king never mentioned his plans to his poker partners. Early in 1937, he and Blank, together with
Wilhelm Filderman Wilhelm Filderman (last name also spelled Fieldermann; 14 November 1882 – 1963) was a lawyer and the leader of the Romanian-Jewish community between 1919 and 1947; in addition, he was a representative of the Jews in the Romanian parliament. E ...
and Armand Călinescu, had drafted a plan for the mass emigration of Romanian Jews to
Mandatory Palestine Mandatory Palestine ( ar, فلسطين الانتدابية '; he, פָּלֶשְׂתִּינָה (א״י) ', where "E.Y." indicates ''’Eretz Yiśrā’ēl'', the Land of Israel) was a geopolitical entity established between 1920 and 1948 i ...
. This attempt was foiled by opposition from both Britain and
Nazi Germany Nazi Germany (lit. "National Socialist State"), ' (lit. "Nazi State") for short; also ' (lit. "National Socialist Germany") (officially known as the German Reich from 1933 until 1943, and the Greater German Reich from 1943 to 1945) was ...
. In February 1938, Auschnitt announced that he was giving up on politics and moving abroad, sparking alarm that he was going to create chaos by also giving up on his managerial duties. As he explained at the time, he only pondered exile because of Goga's racial laws, which were specifically targeted at Jews. Only days after, Carol II staged a
self-coup A self-coup, also called autocoup (from the es, autogolpe), is a form of coup d'état in which a nation's head, having come to power through legal means, tries to stay in power through illegal means. The leader may dissolve or render powerless ...
, outlawing all political parties and replacing them with the
National Renaissance Front The National Renaissance Front ( ro, Frontul Renașterii Naționale, FRN; also translated as ''Front of National Regeneration'', ''Front of National Rebirth'', ''Front of National Resurrection'', or ''Front of National Renaissance'') was a Romani ...
; the antisemitic legislation, passed in 1937, was tightened and extended. This regime also formalized Carol's growing disdain for Auschnitt, which reportedly began when Livia refused Carol's sexual advances, or when Lupescu grew jealous that she would not.Toma Roman Jr, Dinu Zamfirescu, "Mata Hari a României", in ''
Jurnalul Național ''Jurnalul Național'' is a Romanian newspaper, part of the INTACT Media Group led by Dan Voiculescu, which also includes the popular television station Antena 1. The newspaper was launched in 1993. Its headquarters is in Bucharest Buchares ...
'', August 8, 2008
Pandrea alleges that "the Transylvanian tease Pordea" was publicly known as Carol's second mistress, and tolerated as such by Lupescu. He believes that the conflict between Malaxa and Auschnitt exploded when Malaxa's young daughter, seduced by Carol, came to usurp Livia's role at the court. Auschnitt himself was notoriously unfaithful to his wife, spending his money on sexual escapades in Vienna. As reported by Jovan Dučić, in late 1938 Auschnitt and Malaxa were involved in undermining the Polish–Romanian alliance, favoring instead
Czechoslovakia , rue, Чеськословеньско, , yi, טשעכאסלאוואקיי, , common_name = Czechoslovakia , life_span = 1918–19391945–1992 , p1 = Austria-Hungary , image_p1 ...
and the
Little Entente The Little Entente was an alliance formed in 1920 and 1921 by Czechoslovakia, Romania and the Kingdom of Serbs, Croats and Slovenes (since 1929 Yugoslavia) with the purpose of common defense against Hungarian revanchism and the prospect of a Ha ...
; this was because of
Poland Poland, officially the Republic of Poland, , is a country in Central Europe. Poland is divided into Voivodeships of Poland, sixteen voivodeships and is the fifth most populous member state of the European Union (EU), with over 38 mill ...
's role in the partition of Czechoslovakia, and because of both industrialists being suppliers for
Škoda Works The Škoda Works ( cs, Škodovy závody, ) was one of the largest European industrial conglomerates of the 20th century, founded by Czech engineer Emil Škoda in 1859 in Plzeň, then in the Kingdom of Bohemia, Austrian Empire. It is the prede ...
. Dučić alleges that the two men played a crucial part in preventing Romania from annexing
Carpatho-Ukraine Carpatho-Ukraine or Carpathian Ukraine ( uk, Карпа́тська Украї́на, Karpats’ka Ukrayina, ) was an autonomous region within the Second Czechoslovak Republic, created in December 1938 by renaming Subcarpathian Rus' whose full ...
, as proposed to Carol by the Polish government. From March 1939, Carol directed Romania's political and economic rapprochement with Germany. This move alienated Auschnitt, who feared Nazi racial policies. His memorandum on the matter reached Carol and Madgearu, but had no success. The same month, Romanian diplomat
Viorel Tilea Viorel Virgil Tilea C.B.E. (6 April 1896 – 20 September 1972) was a Romanian diplomat, most noted for his ambassadorship in the United Kingdom during the Second World War. He died in London. During the Second World War, Tilea lived at Holton Pla ...
, who had once served as Auschnitt'e employee, attempted to engineer a government reshuffle and steer Romania back into the anti-German camp. Auschnitt was often credited as the mastermind behind Tilea's action, though Tilea himself later revealed that he was urged on by people close to Malaxa. In July, Carol shelved the plan for an Anglo–Franco–Romanian joint venture, reportedly objecting that its two would-be managers, Auschnitt and Oskar Kaufmann, were Jewish. Later that month, Orghidan, who was seen as "Auschnit's man", was voted off the UDR board. Soon after this, Auschnitt was no longer invited to Lupescu's poker evenings. On August 18, he resigned from the UDR, citing no explicit reason. The pretext was offered by his alleged conflict of interest: Auschnitt was claimed to have tampered with a signed UDR contract in order to obtain state compensation for TNC budgetary losses. Auschnitt is cited by Argetoianu as emotionally shaken by the interpretation of facts, openly denying that the document in question was ever modified. The diarist notes that Urdăreanu, who "has a nose for these things", had come to openly disrespect Auschnitt long before heading the investigation at Reșița. This issue is attested in other records, which, Scurtu notes, show Urdăreanu constantly engaged in undermining Auschnitt's reputation. Pandrea reports that Livia Auschnitt once insulted Urdăreanu, who enjoyed Lupescu's protection. Commenting on Max Auschnitt's character in his own diary, Carol surmises: "A Yid is still a Yid, no matter how nice he might be as a man." Urdăreanu allegedly concluded that Auschnitt had also "clogged" the UDR with Jews and
Hungarians Hungarians, also known as Magyars ( ; hu, magyarok ), are a nation and ethnic group native to Hungary () and historical Hungarian lands who share a common culture, history, ancestry, and language. The Hungarian language belongs to the Ural ...
, and insisted that this was additional proof of malfeasance. Argetoianu additionally reports that both Auschnitt and Kaufmann had by then been involved in
insider trading Insider trading is the trading of a public company's stock or other securities (such as bonds or stock options) based on material, nonpublic information about the company. In various countries, some kinds of trading based on insider informati ...
at the Credit Bank, from which they drew a profit of 6 million lei between them. Their momentary success was offset by Edgar Auschnitt, who lost 3 million lei playing
backgammon Backgammon is a two-player board game played with counters and dice on tables boards. It is the most widespread Western member of the large family of tables games, whose ancestors date back nearly 5,000 years to the regions of Mesopotamia an ...
against Constantin Cantacuzino.


First trial

News of Auschnitt's defeat by Malaxa were recorded by socialite
Marthe Bibesco Princess Martha Bibescu (Martha Lucia; ''née'' Lahovary; 28 January 1886 – 28 November 1973) also known outside of Romania as Marthe Bibesco, was a celebrated Romanian-French writer, socialite, style icon and political hostess. She spent her ...
as evidence that a "British pawn" had lost to a "pawn or half-pawn of the German financiers". Similarly, economist Kurt Lachmann places blame for Auschnitt's ouster on the "antisemitic campaign in Rumania, financed by the Nazis." In Germany, the ''
Völkischer Beobachter The ''Völkischer Beobachter'' (; "'' Völkisch'' Observer") was the newspaper of the Nazi Party (NSDAP) from 25 December 1920. It first appeared weekly, then daily from 8 February 1923. For twenty-four years it formed part of the official pub ...
'' openly celebrated the Auschnitts' downfall. Auschnitt's opposition to Nazi policies entered a new stage in March 1939, just before the Allied Powers renewed their commitment to defending Poland from Nazi encroachment. Historian R. P. T. Davenport-Hines suggests that Auschnitt may have been responsible for strengthening the Anglo-Polish military alliance in that he circulated an alarmist claim, namely that Germany had issued an ultimatum for Romania to join the
Axis An axis (plural ''axes'') is an imaginary line around which an object rotates or is symmetrical. Axis may also refer to: Mathematics * Axis of rotation: see rotation around a fixed axis * Axis (mathematics), a designator for a Cartesian-coordinat ...
. In September, during the
Nazi invasion of Poland The invasion of Poland (1 September – 6 October 1939) was a joint attack on the Republic of Poland by Nazi Germany and the Soviet Union which marked the beginning of World War II. The German invasion began on 1 September 1939, one week after ...
, Auschnitt retaliated against the Nazis by assisting
Polish refugees Polish may refer to: * Anything from or related to Poland, a country in Europe * Polish language * Poles Poles,, ; singular masculine: ''Polak'', singular feminine: ''Polka'' or Polish people, are a West Slavic nation and ethnic group, w ...
. In October, the king allowed Iamandi to draft new regulations for '' sociétés anonymes'', specifically designed to harm Auschnitt; the latter was being interrogated by prosecutors regarding his UDR contracts. Business rivals where then allowed to engineer a trial against Auschnitt, who was accused of fraud and
money laundering Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdiction ...
. Various observers believed that he was no longer willing to share his profits with the ''camarilla'', which made him a target for retribution. Argetoianu adds speculation that Carol was resentful because his stocks in the Lujani sugar refineries, obtained from Auschnitt, had been subject to litigation; or that the king intended to please
Adolf Hitler Adolf Hitler (; 20 April 188930 April 1945) was an Austrian-born German politician who was dictator of Nazi Germany, Germany from 1933 until Death of Adolf Hitler, his death in 1945. Adolf Hitler's rise to power, He rose to power as the le ...
by "sacrificing his own kikes". The interpretation is partly backed by sociologist Mictat Gârlan, according to whom "Max Auschnitt, a man close to the Royal House", was arrested "only because he was Jewish." The disgraced courtier kept in his desk a document showing that Carol was fully responsible for the sugar debacle. A "public enemy number 1", Auschnitt was also expected to relinquish his UDR shares. According to one account, he agreed to sell only if he was guaranteed immunity from prosecution and allowed to settle in France, where Livia had already relocated. A deal was reached, but Auschnitt was still arrested on the border. Argetoianu partly backs this rumor, by relaying a story allegedly told by Iamandi, according to which Auschnitt agreed to cede his stock if promised immunity from prosecution. His proposal, Argetoianu notes, was simply denied. Though selected by Carol to serve as Prime Minister during the same interval, Argetoianu still viewed the affair as a settling of scores, and asked not to be involved on either side. With Auschnitt's taking into police custody on the evening of November 8, the censorship office was instructed to allow the publication of "any reportage that would detail the reasons behind isarrest." As he was being relocated to Văcărești prison that same day, Argetoianu read his grounds for indictment and concluded that his friend was not in fact innocent, though the trial he faced was likely to be unfair. The matter was personally handled by Gavrilă Marinescu, who was Argetoianu's
Minister of Internal Affairs Minister may refer to: * Minister (Christianity), a Christian cleric ** Minister (Catholic Church) * Minister (government), a member of government who heads a ministry (government department) ** Minister without portfolio, a member of government ...
. He cited his "moral debt" to Auschnitt in an attempt to recuse himself, but Carol insisted that he pursue the investigation, noting that Auschnitt was symptomatic for a "corrupt system", and that a show trial would commence "the purge" of Romanian industry. On November 14, the authorities raided TNC offices, arresting general manager Constantin Naghi and four other directors who, they claimed, were "controlled by Aușnit". They also detained an unnamed witness, whose testimony allowed them to recover 10 million
French franc The franc (, ; sign: F or Fr), also commonly distinguished as the (FF), was a currency of France. Between 1360 and 1641, it was the name of coins worth 1 livre tournois and it remained in common parlance as a term for this amount of money. It ...
s that Auschnitt had deposited with his former father-in-law, Aronovici. Prosecutors also looked into another issue of conflicting interests, noting that Auschnitt had used CEPI to buy off UDR assets. On December 5, a new cabinet, headed by
Gheorghe Tătărescu : ''For the artist, see Gheorghe Tattarescu.'' Gheorghe I. Tătărescu (also known as ''Guță Tătărescu'', with a slightly antiquated pet form of his given name; 2 November 1886 – 28 March 1957) was a Romanian politician who served twice as P ...
, stripped Edgar Auschnitt of his citizenship; Max lost his four days later."Rumania Liquidating the Property of Edgar Ausnit, Brother of Jailed Arms Magnate"
in the ''News from All Over the World. By the Jewish Telegraphic Agency'', Vol. VI, Issue 198, April 1940, p. 5
Edgar had by then escaped to London, which allowed government to confiscate and redistribute his assets in Romania. Livia, meanwhile, was spotted on the
French Riviera The French Riviera (known in French as the ; oc, Còsta d'Azur ; literal translation "Azure Coast") is the Mediterranean coastline of the southeast corner of France. There is no official boundary, but it is usually considered to extend from ...
, allegedly pursuing an affair with Kurt von Haugwitz-Reventlow. Argetoianu assesses that Auschnitt's imprisonment had by then brought a great surge in the king's popularity, since the public, especially the "nationalist and antisemitic circles", could now believe that the tide was turning on his ''camarilla''. He comments on demonstrative gestures by the authorities, which included forcing Auschnitt into the regular
police van A police van (also known as a paddy wagon, meat wagon, divisional van, patrol van, patrol wagon, police wagon, Black Mariah/Maria, police carrier, or in old-fashioned usage, pie wagon) is a type of vehicle operated by police forces. Police vans ...
. Argetoianu also writes that " philosemites" were baffled by Carol's clampdown, and exaggerated its meaning. He illustrates this with a quote from General Eugeniu Vârtejanu, who was reportedly Auschnitt's friend: "This is the
Dreyfus affair The Dreyfus affair (french: affaire Dreyfus, ) was a political scandal that divided the French Third Republic from 1894 until its resolution in 1906. "L'Affaire", as it is known in French, has come to symbolise modern injustice in the Francop ...
in its Romanian version". For all his subjects' enthusiasm, the king never agreed to have other ''camarilla'' men prosecuted for their alleged misdeeds. As noted by researcher George Enache, the affair showed the power that of Romanian secret services had in influencing legal procedures, especially so since Malaxa, whose name had been cited in similar allegations, was never convicted. In February 1940, an I. D. Dumitrescu publicized a full record of illegal deals involving Malaxa (who had left the country on an extended leave), but Carol ordered Marinescu not to follow up on this lead. On March 14, Auschnitt was sentenced to a six-year term in labor camps, and ordered to pay back 200 million lei (approximately 140,000
British pound Sterling (abbreviation: stg; Other spelling styles, such as STG and Stg, are also seen. ISO code: GBP) is the currency of the United Kingdom and nine of its associated territories. The pound ( sign: £) is the main unit of sterling, and th ...
s in 2016 rates). In June, while filing his appeal from Doftana prison, he made a final attempt at placating the ''camarilla'', offering to split his UDR shares between CEPI and Malaxa's companies. This message failed to impress. His UDR stock was confiscated without him being involved. Auschnitt's shares were reportedly split between the Reichswerke Hermann Göring, Nazi iron conglomerate and Malaxa. According to Lachmann, Albert Göring "terrorized the Rumanian government" into issuing more shares that his firm then acquired.


Antonescu years

In September 1940, following public outrage over the Second Vienna Award, Carol was deposed and exiled, alongside his mistress; the "National Legionary State" was established as a partnership between the Iron Guard and General
Ion Antonescu Ion Antonescu (; ; – 1 June 1946) was a Romanian military officer and marshal who presided over two successive wartime dictatorships as Prime Minister and '' Conducător'' during most of World War II. A Romanian Army career officer who ma ...
. The Guard opened up Lupescu's residence, reportedly showing that she still kept Livia Auschnitt's portrait. According to
Petru Groza Petru Groza (7 December 1884 – 7 January 1958) was an Austro-Hungarian-born Romanian politician, best known as the first Prime Minister of the Communist Party-dominated government under Soviet occupation during the early stages of the Commu ...
, who served time in Malmaison prison in 1943–1944, Max Auschnitt had spent some time there, and had been allowed to refurbish a bathroom, which became the communal laundry room. Antonescu was lenient toward Auschnitt, dispatching him to a sanitarium, but also continued to enforce and enhance antisemitic laws. Such policies remained unchanged when the Guard was Legionnaires' rebellion and Bucharest pogrom, ousted in January 1941, as Romania remained closely aligned with Germany. In April, Livia obtained that the seal be lifted on her Bucharest home, but the regime used this occasion to inspect the premises. Prosecutors reportedly found a trove of foreign currency, which they confiscated, preparing to have Max Auschnitt placed on trial for tax evasion. In December 1941, Antonescu noted of Auschnitt: "once a kike, always a kike". He openly acknowledged that Auschnitt was in fact innocent of any crime, and favored allowing him to leave Romania if he would transfer all his property to the state; this attempt was foiled by protests from Joachim von Ribbentrop, the Minister for Foreign Affairs (Germany), German Foreign Minister. Despite further outrage from such circles, Antonescu's courts commuted Auschnitt's sentence into forced labor at the TNC, meaning that he was effectively on parole. In October 1941, Auschnitt had offered to donate his share of the TNC to a state company. His proposal caused much embarrassment for Antonescu's ministers, since accepting under the circumstances would have looked like their blackmailing a prisoner. Ciprian Stoleru
"Guvernul Antonescu, pus în dificultate de o donație a lui Max Auschnitt"
in ''Historia'', March 2012
Antonescu himself intervened to chide Orghidan and Alexandru Ottulescu for stalling. In January 1942, Auschnitt sorted the issue by appointing Orghidan as caretaker of his estate, which allowed for TNC stock to be issued and bought by the state using Auschnitt's money. In May 1943, the UDR, managed at the time by Göring and physicist Horia Hulubei, reported capital gains of 37.8 million lei obtained from the Auschnitt and CEPI transactions. Meanwhile, operating through the Cisatlantic and Cisoceanic consortia, Edgar was able to purchase an interest in the Romanian munitions manufacturer, IRMC.L. M. Lamm, "Windows on Washington. Roumanian-Owned Forge Equipment Seized by U. S.", in ''Steel'', Vol. 111, Issue 2, July 1942, p. 57 He finally moved to the United States in early 1942. Here, a forge equipment he had ordered in 1939 was confiscated by the Office of Alien Property Custodian, and made available for use by the United States Navy. Eventually, Antonescu's review of previous court verdicts reached Auschnitt's case. Unusually for a Jew in that context, he was cleared of the charges and released on July 3, 1942. Around that time, Auschnitt managed to transfer money from his accounts with the Swiss Bank Corporation to a cell of anti-fascist exiles in England, which was overseen by Grigore Gafencu. This stipend of 6,000 British pounds was Gafencu's main source of revenue in 1943. During August 1942, Antonescu was informed that the UDR management was running a 16-bed clinic for its 11,000 employees, and gave orders to remedy this situation. In recounting the episode, Gelu Vifor of ''Țara'' newspaper commented: "Max Aușnit and the racketeering politicians financed by that dastardly kike should take note of this truth: ''Something'' has sure changed in this country" (Vifor's emphasis). That same month, Auschnitt and Ferenc Neumann of Végvár, Franz von Neumann donated 50 million Swiss francs to a charity managed by Maria Antonescu. This was a precautionary measure against the planned transport of Banat Jews to Nazi extermination camps, and may have contributed to the halting of all such transports. Auschnitt also partnered with Arthur Tester, whom he himself described as "naturally an anti-Semite, but a civilized one"; Tester organized transports of Romanian Jews to Palestine in exchange for Auschnitt's cash. Auschnitt also donated for a "makeshift healthcare center" at the Jewish labor camp in Cotroceni, after Colonel Agapiescu allowed Maximilian Popper to provide medical treatment for the inmates. In early 1943, Auschnitt was interned at the camp in Târgu Jiu, which also held leading members of the
Romanian Communist Party The Romanian Communist Party ( ro, Partidul Comunist Român, , PCR) was a communist party in Romania. The successor to the pro-Bolshevik wing of the Socialist Party of Romania, it gave ideological endorsement to a communist revolution that wou ...
(PCR). One of these was Lucrețiu Pătrășcanu, who became close friends with the industrialist. Upon release, the latter began financing the underground movement, Stelian Tănase
"Belu Zilber (II)"
in ''Revista 22'', Vol. XIV, Issue 701, August 2003
which now intended to topple Antonescu. His donations, formally presented as humanitarian contributions for jailed militants, reached Pătrășcanu through PCR proxies Belu Zilber and Remus Koffler. Auschnitt's relative freedom still irked Nazi observers. In May 1943, the genocidal ''Obersturmbannführer'' Adolf Eichmann was working on the case, insisting that Nazi spies were to prevent Auschnitt from leaving Romania. During the early months of 1944, Auschnitt was reportedly allowed access into the Ministry of National Economy, alongside Orghidan. He was allegedly spotted there by jurist Constantin C. Stoicescu, who exclaimed: "There is that con artist Aușnit, walking about like it's nobody's business." A piece in ''The Jewish Herald'' described Auschnitt as: "an apostate Jew, close friend of the Nazi Puppet Premier of Romania General Antonescu"."Death 'In Absentia' for Antonescu Friend", in ''The Jewish Herald'', Issue 22/1944, p. 1


Second trial and August coup

Also in early 1944, Auschnitt was reportedly dragged into the power struggles within the Communist Party—assisting Emil Bodnăraș in ousting its disgraced general secretary, Ștefan Foriș. He eventually caught news that Nazi envoys wanted him included in what was to be the final stage of Holocaust in Romania, Holocaust crimes in Romania. One report additionally suggests that he was briefly held at a concentration camp in Kingdom of Hungary (1920–1946), Hungary. Aviator Matei Ghika-Cantacuzino, who was Auschnitt's personal friend, agreed to fly him into Allied territory. They used Ghika's Heinkel He 111, which had been ordered to Ianca. The flight, which landed in British Cyprus on June 15, 1944, Sorin Turturică
"Aripile libertății: aviatorii români fug din raiul comunist"
in ''Historia'', April 2014
also transported businessmen Alexandru Racotă and Radu Hurmuzescu. In British records, their group was code-named "Yardam", and Auschnitt was "Cocoon". Their escape served to prepare the King Michael's Coup, anti-fascist coup of August 23. Auschnitt had brought with him messages sent by PNȚ leader
Iuliu Maniu Iuliu Maniu (; 8 January 1873 – 5 February 1953) was an Austro-Hungarian-born lawyer and Romanian politician. He was a leader of the National Party of Transylvania and Banat before and after World War I, playing an important role in the U ...
, agreeing to Antonescu's overthrow, as well as a letter from Pătrășcanu. Protected by the Royal Air Force, Ghika then flew his passengers to Aleppo, where they met Maniu's liaison, Constantin Vișoianu. Auschnitt was then transported to Kingdom of Egypt, Egypt, as he and Hurmuzescu still had to be screened by Security Intelligence Middle East, as potential Nazi spies. This referred to their links with Tester, which, Auschnitt convincingly explained, had reaped humanitarian benefits for Romanian Jews. Auschnitt was released at Cairo, but his "lavishness with money" remained a point of contention for the remainder of his stay. On July 5, a military court of the Third Army (Romania), Third Romanian Army issued warrants for all fugitives. Auschnitt was charged with defection to the enemy and instigating desertion. He was then tried ''
in absentia is Latin for absence. , a legal term, is Latin for "in the absence" or "while absent". may also refer to: * Award in absentia * Declared death in absentia, or simply, death in absentia, legally declared death without a body * Election in abse ...
'', and sentenced to death; the same verdict was pronounced against Ghika. During the coup, Auschnitt's car was reportedly borrowed by Pătrășcanu, who used it to transport Groza out of Deva, Romania, Deva. Immediately following these events, Auschnitt sent letters home demanding that Antonescu aide Valentin Georgescu face punishment for his wartime activities. He also asked to purchase the archives captured from Antonescu's spy chief, Eugen Cristescu, which included minute details on communist networks active in Romania. Signaling his anticipation of a communist takeover, Auschnitt "mapped out a plan of action", including the creation of a pro-capitalist "information service within the workers' world". In September, the United States Army Air Forces flew him back to Bucharest, where he was awarded protection by the
Allied Commission Following the termination of hostilities in World War II, the Allies were in control of the defeated Axis countries. Anticipating the defeat of Germany and Japan, they had already set up the European Advisory Commission and a proposed Far Easte ...
, and allowed to assist in reconstruction. His 1940 trial was again up for review in November, when another court confirmed his innocence. In December, Nicolae Rădescu took over as Prime Minister, noting with alarm that Auschnitt had resumed his conflict with Malaxa, to the point of paralyzing Romania's transport industry. Florin Șperlea
"Malaxa 'încinge' exilul românesc"
in ''Historia'' (online edition)
In December 1944, when he founded a Swiss Balkan Finance and Trading Company, he was registered as residing on Câmpineanu Street, 2. He and Malaxa both entered a new Masonic Lodge, called Lanțul de Unire, where, in 1945, they initiated Hulubei. Auschnitt was secretly backing Rădescu's coalition against the rising PCR, who wanted Groza as Prime Minister. In early 1945, the two rival camps clashed in the streets of Bucharest, leading to a communist takeover. As reported by Pandrea, Auschnitt unsuccessfully supported an anti-communist counter-coup, and was identified by other participants as Romania's would-be Ministry of Public Finance (Romania), Finance Minister. On March 9, 1945, as Groza formed a communized cabinet, Auschnitt catered champagne for a pro-communist group, the Romanian Society for Friendship with the Soviet Union, later becoming Vice President of its Economic Section. He claimed to have been approached by Soviet General Ivan Susaykov, whom he advised to recruit economic experts from outside the PCR. According to Auschnitt's own data, the Soviet state took over 30% of UDR shares as part of the reparations plan, their assistance actually preventing the factories from going bankrupt. He and Malaxa were considered for a partnership in the forestry SovRom (Soviet–Romanian joint venture), until Groza vetoed the proposal. Auschnitt, who expressed his disdain for SovRoms and for Malaxa's willingness to participate in them, had recovered some of his UDR stock. He was still prevented from reusing his villa, which was requisitioned by the Red Army in 1946. In tandem, Auschnitt served as Vice President of a rival club, called "Friends of America". General Cortlandt V.R. Schuyler also viewed him as a trusted adviser; together, they met with Constantin Titel Petrescu of the Romanian Social Democratic Party (1927–48), Social Democratic Party, who reassured them that he was only allied with Groza and the PCR until a change of setting would allow him to break away. Resuming his lifestyle, Auschnitt organized a lavish party for New Year's Eve, serving crouchen and caviar to his 200 guests."Darurile d-lui Aușnit", in ''Informația Prahovei'', January 7, 1946, p. 1 These included General Schuyler and Kathleen Harriman Mortimer, Kathleen Harriman, daughter of diplomat W. Averell Harriman. ''Informația Prahovei'' journalists commented that the event was in poor taste, at a time when Romania's children were starving; they appealed to Auschnitt's Christianity, asking him to donate more to charities.


Third trial

Auschnitt still hoped that the Potsdam Conference would push back Soviet occupation of Romania, Soviet hegemony in Romania, but reassured Schuyler that he was prepared to leave the country at a moment's notice. His offices on Câmpineanu Street was frequented by British spies Archibald Gibson and Ted Masterson, both of whom were also Freemasons; Auschnitt allegedly informed them on the state of Romania's economy. In a November 1945 interview with Mark Foster Ethridge, he spoke about the communists' zeal and incompetence as being responsible for the massive inflation. He also contended that industrial workers and peasants, wishing to be left alone, had turned virulently anti-communist. He claimed to have personally solved a labor dispute at Astra Brașov once he prevented workers from sacking the managerial staff. Under interrogation by communist authorities, several Freemasons reported that Auschnitt and Reșița engineer Alexandru Popp (engineer), Alexandru Popp, as members of the Big Finance Club, had agreed to sponsor opposition groups, including the PNȚ, in preparation for 1946 Romanian general election, parliamentary elections in November 1946. Also to these sources, the effort was coordinated by American envoys. Alexandru Grigoriu, himself an industrialist and a Mason, noted that Auschnitt personally handled grants for Titel Petrescu and Anton Dumitriu, who had by then formed an Independent Social Democratic Party. Auschnitt reportedly approached Mihai Ralea, who served as Romanian ambassador to the US, and whom he mistakenly identified as an anti-communist, with a plan to sabotage Romania's maize production; when his offer was rejected, Auschnitt "tried to demoralize Ralea, telling him that he held information [...] that Ralea was viewed with suspicion by the Soviets." Working as a diplomat, Gustave Pordea sensed the changing of fortunes, and opted to defect in 1947. According to historian Dinu Zamfirescu, the Pordeas were actually protected by Groza, who allowed both Gustave and Livia safe passage when their father promised to donate all his assets to the Romanian state. Gustave was sent to an "obscure post" in The Hague precisely because he could then escape, together with his "many children". Sources differ as to where his brother-in-law was living at the time. A report by the Soviet spy S. Pivovarov, issued in June 1947, claims that Auschnitt "has been in the US for over a year", and that, with Malaxa, he was attempting to channel American funding for Romania's industrial effort. Other accounts suggest that Auschnitt remained in Romania for several years, although being singled out by Groza's government as a sponsor of the Romanian anti-communist resistance movement, anti-communist underground. As such, he was briefly detained in 1947. Schuyler finally warned him that his life was in danger, prompting Auschnitt to relocate in France at some point before August 15, 1947. Records kept by the new
communist regime A communist state, also known as a Marxist–Leninist state, is a one-party state that is administered and governed by a communist party guided by Marxism–Leninism. Marxism–Leninism was the state ideology of the Soviet Union, the Com ...
suggest that Auschnitt, like Malaxa, successfully persuaded communist ministers to let him leave for the United States as a negotiator of trade deals. The allegation was stated by Ana Pauker, who represented the PCR's Proletarian internationalism, internationalist circles, against National communism in Romania, national-communists such as
Gheorghe Gheorghiu-Dej Gheorghe Gheorghiu-Dej (; 8 November 1901 – 19 March 1965) was a Romanian communist politician and electrician. He was the first Communist leader of Romania from 1947 to 1965, serving as first secretary of the Romanian Communist Party ...
; she implied that Auschnitt had won them over with his patriotic rhetoric. Pauker's faction believed that Ion Gheorghe Maurer was particularly at fault for the gaffe. In August 1948, Auschnitt was included on a list of exiles who were stripped of their Romanian citizenship—alongside Lupescu, Mociornița, Ioan Pangal, Ion Sân-Giorgiu, and some others. On June 11, the UDR had been Nationalization in Romania, nationalized, before most of it was transformed into a SovRomMetal in August 1949. In September 1948, Titan was taken over by communist workers, and renamed after Nicolae Cristea (communist), Nicolae Cristea. A Jewish worker, Simion Schwartz, announced this in the wall newspaper; one of the readers approached him to ask: "Aușnit is a Jew, and so are you. Does this mean that you Jews also fight with each other?"; Schwartz responded in writing, arguing that Auschnitt sided with the "capitalist Jews", engaged in class struggle with the proletarians—Romanians and Jews alike. A full confiscation of all property owned by Auschnitt and Malaxa, and a confirmation of their loss of citizenship, was rendered official by the Great National Assembly (Socialist Republic of Romania), Great National Assembly on October 5, 1948. On October 12, Auschnitt was formally indicted for various crimes, including high treason and conspiracy against the constitutional order, at Bucharest's Military Tribunal. A mandate was issued for his arrest, but he could not be located. Auschnitt's defection happened just before he could be implicated in a show trial against engineer Popp, himself accused of having masterminded a terrorist plot. As noted by memoirist Aurel Savin, the "judicial fabrication" was visible from the list of defendants, which included Auschnitt, a Jew, alongside the Iron Guard's Nicolae Petrașcu and wartime admiral Horia Macellariu. Contrarily, historian Lucian Nastasă believes that the prosecutors were correct in describing Auschnitt as a Petrașcu supporter, and also in identifying Auschnitt as the UDR sponsor behind a large Zionism, Zionist network transporting Jews out of Romania. This clampdown was closely followed by a purge of Social Democrats from the UDR's trade union. Traian Cercega and Georg Hromadka were arrested, while Eftimie Gherman managed to escape. ''Scînteia'', the communist party organ, depicted Popp and Auschnitt as "common criminals who, for years on end, have been robbing and demeaning thousands of working men and women, exploiting the blood out of them." Although Auschnitt was the richest among alleged conspirators, and therefore "afforded great attention by prosecutors", his name was not included on the spurious list of would-be coup leaders. He was also the only ''in absentia'' defendant at that trial, and was sentenced to life imprisonment "for the crime of high treason" on November 2, 1948 (though believed by some authors to have received a second death sentence). Speaking at a public rally on November 1, Finance Minister Vasile Luca proclaimed that the trial had exposed Romanian capitalists for colluding against the Soviet Union and "our democratic regime's economy". This, Luca inferred, made Romanian–Soviet economic cooperation all the more imperative. In July 1952, a UDR trade unionist wrote in ''Scînteia'' that he and his colleagues had been liberated from being "exploited by Auschnitt and other bandits". Auschnitt's entire estate had by then been confiscated, and the villa on Aleea Alexandru was assigned to Groza, who lived there for the rest of his life; it later housed the Argentinian Embassy. ''Gazeta Literară'', the communist literary magazine, took over Edgar's flat outside Piața Romană, including its furniture. The brothers' Galați home was also taken over by the state, and from 1968 was used as a museum, showcasing the labor movement in Romania.


RNC and later years

After his departure, Max Auschnitt was mentioned in the 1954 show trial of Pătrășcanu, whom the communist leadership now identified as an enemy of the regime; his "trusted man" inside the Communist Party, Samuel Margulies, was brought in as a celebrity witness for the prosecution. The exiled industrialist lived for a while with Livia and Gustave's family in Biarritz, but grew estranged from his wife, and decided to settle as a bachelor in the US. He joined Edgar and Steve in New York City, where he acquired American citizenship, though he continued to send money to Livia and his child by her. Malaxa also headed for America, but Auschnitt repeatedly sought to prevent him from settling there. As part of this conflict, he directed a press campaign which alleged that Malaxa was a communist asset. The press he sponsored overstated Malaxa's links with the Iron Guard, including unsubstantiated charges that Malaxa's home had been a mass-murder hub for the Legionnaires' rebellion and Bucharest pogrom, 1941 pogrom. According to journalist Romulus Căplescu, this allegation was not proffered by Auschnitt ("a decent, common-sense person"), but was rather the product of spontaneous sensationalism. Malaxa was finally admitted to the US in 1953, after purchasing support from United States Senate, US Senator Richard Nixon. Auschnitt's allegations were partly successful, in that Malaxa never applied for naturalization. Both rivals became engaged with the anti-communist Romanian diaspora, though from different angles: Auschnitt sought to align the
Romanian National Committee Several political organisations have been called Romanian National Committee: * Romanian National Committee (1848), made to coordinate the 1848 revolutions of Romanians in Transylvania * Romanian National Committee (1918), with the aim of unifying ...
(RNC) as an outlet for the PNȚ, while Malaxa backed the more right-wing Rădescu as leader of the movement. After negotiations overseen by the exiled king Michael I of Romania, Michael I, the two wings reached an agreement in May 1949, but again quarreled and split up in December 1950. During the subsequent row, Rădescu opened a civil lawsuit against members of Michael's retinue, alleging that, on Auschnitt's orders, they had dilapidated 3 million Swiss francs from the RNC's pool. In parallel, the RNC successfully called in the Central Intelligence Agency to examine Nixon's deals with Malaxa, until Walter Bedell Smith ordered his agents to step down. The dispute was closely followed by Romania's new secret police, the Securitate. In 1953, it took clues from a piece in the ''Washington Times-Herald'' that Auschnitt was a "guardian angel" for the RNC Chairman—his old acquaintance Constantin Vișoianu. According to Pandrea, Auschnitt had purchased Vișoianu's services, preventing him from returning to Romania, and was using "such political beggars" for personal gain. As seen by Pandrea, "Max I is the real king, having formed his own tiny court in New York." The connection was seen as scandalous by Rădescu's League of Free Romanians. Its sources indicated that there was reason to view Auschnitt as a liability, since he had been "recently implicated in a scandal with loose women." Edgar was also noted for picking up girls from Barbizon 63 and getting them to attend "impromptu parties in his Fifth Avenue penthouse, where he would entertain pals such as Cary Grant." During his final years, Auschnitt reoriented himself toward the budding
plastics industry The plastics industry manufactures polymer materials—commonly called plastics—and offers services in plastics important to a range of industries, including packaging, building and construction, electronics, aerospace, and transportation. It is ...
. He and his son Steve worked on improving Zipper storage bag, plastic-bag zippers (originally a Danish invention) by founding Minigrip, Inc., which, from 1951, was under contract with Dow Chemical Company. According to Căplescu, it remained a "modest enterprise", never matching the success of his earlier ventures in iron and steel. Auschnitt spent the remainder of his life at a luxurious home on Park Avenue. He died there after a prolonged illness, on January 18, 1957 (though several sources cite 1959). His death was closely followed by the publication of Olivia Manning's ''Balkan Trilogy'', where he probably appears as the banker Druker, and by I. Peltz's novel, ''Max și lumea lui'' ("Max and His World"), where he is caricatured as the eponymous Max Gros. Gustave Pordea was left destitute by his brother-in-law's departure, and for a while only made a living selling Romanian icons of his own make. As argued by Zamfirescu, this precariousness led to his recruitment by Securitate agents, who used him to influence public opinion in favor of Communist Romania. In 1984, he became the first Romanian to serve in the European Parliament, where he represented the far-right National Rally (France), National Front. During his tenure, accounts emerge that he was a covert agent, and that he had used Securitate funds to bribe Jean-Marie Le Pen and make his way into politics. The allegations, carried by ''Le Matin de Paris'', were also supported by various members of the Romanian exile, including Ion Mihai Pacepa. Pordea took his accusers to court, and the claim was dropped once Pacepa refused to testify. Zamfirescu, who appeared as a witness, argues that the case was also harmed by a technicality: since journalist Agathe Lojard had called Pordea a spy, under French law she needed to prove that he had actually stolen military or economic secrets. Minigrip, Inc. became a subsidiary of Illinois Tool Works, and was consequently re-baptized ITW Zippak. Steve Aușnit, who provided a scholarship for Romanian students at Harvard University, made returns to Romania following the Romanian Revolution of 1989, fall of communism in 1989. He sponsored a Max Auschnitt Cycling Cup and promoted Holocaust studies through a Memorial Library. He was awarded the golden key of Lugoj for his investments in that city's industry, which include a freight terminal. Together with his brother Robert, he sued Fondul Proprietatea for ownership of his father's TNC, which resulted in some compensation for property lost during the nationalization.Wallersteiner, p. 12 He also received back the family villa, but sold it to politician Gigi Becali in 2009; it is now noted for featuring a monument-sized gilded crucifix. Steve continued to work in the plastics industry, filing his last patent in 2017, two years before his death in New York.


Notes


References


External links

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