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Chicago, Cook County, Illinois
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In Berlin, the Communist paper 'Rote Fahne' exposes a million-mark swindle by the Sklarek brothers at the municipal bank, implicating socialists like Kieburg and Mayor Boess in graft, forgeries, and deliberate bankruptcies. Liebert is suspended amid panic and investigations by workers' committee.
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BIG SWINDLE OF
MUNICIPAL BANK
Workers
to
Dig
Into
Socialist Graft
(Wireless to Inprecorr.)
BERLIN. Oct. 7.—Concerning the
million mark swindle of the Berlin
municipal bank
by
the
brothers
Sklarek,
the
Communist
organ,
"Rote Fahne"
publishes disclosures
proving
that
socialists introduced
the Sklareks into business and facili-
tated their swindles.
The "Rote Fahne" proves that the
socialist, Kieburg, director of the
Municipal Clothing Utilization com-
pany,
deliberately
permitted the
Sklarek firm to deliver shoddy in
the year 1921, whereby the com-
pany went bankrupt with a deficit
of 15,000,000 marks.
Kieburg then was promoted to the
post of director of the All-Berlin
Clothing undertaking, where Kieburg
and the Sklareks continued the
game, with the result that this sec-
ond company went bankrupt. with
1,300,000 marks deficit. This second
company was deliberately bank-
rup ted in order to permit the
Sklareks to buy the business cheap-
ly.
This socialist. Kieburg, also com-
mitted forgeries of large bills of ex-
change, but socialist authorities
hushed the matter up. Many other
socialists are involved, and the social
democrats are moving heaven and
earth to stop the "Rote Fahne" ex-
posures, having prohibited the past-
ing of "Rote Fahne"
posters
on
billboards.
The Communist Party, plus other
workers' organizations, have formed
a proletarian committee for investi-
gation into the Sklarek scandal in
order to find answers to the follow-
ing questions:
Who brought the Sklareks into
business? What politicians and of-
ficials were constant guests of the
Sklareks at races, hunting parties
and banquets?
Where
are
the
stolen millions?
(Wireless by Inprecorr)
BERLIN. Oct. 8.—The disclosures
in the
Communist
paper "Rote
Fahne"
concerning
the Sklarek
swindle is causing a panic among
the socialists. The paper today pub-
lishes a report of the persons who
received "presents" from the Sklarek
brothers, among whom is Berlin's
mayor Herr Boess, at present in
New York City, and a number of
other prominent socialists.
Liebert, a prominent socialist and
director of the big Berlin municipal
undertaking, is now suspended fol-
lowing the discosures in the "Rote
Fahne" accusing Liebert of gigantic
swindles with the Sklareks.
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Where did it happen?
Foreign News Details
Primary Location
Berlin
Event Date
Oct. 7 8
Key Persons
Outcome
municipal clothing utilization company bankrupt with 15,000,000 marks deficit in 1921; all-berlin clothing undertaking bankrupt with 1,300,000 marks deficit; liebert suspended; proletarian committee formed for investigation
Event Details
Communist organ 'Rote Fahne' discloses that socialists, including Kieburg, facilitated Sklarek brothers' million-mark swindle of Berlin municipal bank through shoddy deliveries, deliberate bankruptcies, forgeries, and bribes to officials like Mayor Boess; social democrats attempt to suppress exposures