Bernstein Tried

Greying Arnold Bernstein, 47, son of an oldtime Saxon shipper, served with distinction as a German artillery officer during the War, was decorated with the Iron Cross, First Class. Back in Germany after the War he evolved the scheme of fitting modern freighters with automobile elevators so that U. S. cars could be exported to Europe uncrated and unscratched. So successful was this that Bernstein "floating garages'' have long carried over 60% of all U. S. automobile exports, made enough money for sole Owner Arnold Bernstein to allow him to buy out the American-Belgian-British Red Star Line and incidentally bring into Nazi Germany thousands of dollars yearly in much needed foreign exchange. Bernstein passenger agents find their boats are "very popular with intellectuals who object to the snobbishness of Cabin Class."

Partly because of his personal popularity and War record, Shipper Arnold Bernstein was left in control of his business much longer than most Jewish tycoons. Finally last January, Nazi extremists forced the Government's hand. Arnold Bernstein and four of his managers (three Jewish), were clapped into jail, charged with "economic sabotage" through infringing German foreign exchange regulations. While he sat in jail Bernstein's 21-month-old Palestine Shipping Co. went into receivership "because the Jews deserted me," says Prisoner Bernstein, and Japanese bought for $150,000 its auctioned steamer Tel Aviv. Last week in Hamburg the trial of Arnold Bernstein began. Of all the eight charges in a 88-page indictment against Shipper Bernstein the gravest was that several years ago he set aside in Manhattan banks a fund from the Arnold Bernstein & Red Star Lines' profits to be held for a rainy day of the two lines (whose two chief creditors are the Erie R. R. and Chemical Bank & Trust Co.). This entire sum was returned to Germany some months ago. Hamburg lawyers scoffed at news stories that Bernstein "faces death," expected him to get anything from a five-year jail sentence to pardon.

Since the arrest of Arnold Bernstein, Herman Kollmar, the director of his Red Star Line and his executor, has been in amicable contact with Minister President & Economic Director Hermann Goring, seeking a pardon, showing Ford and Studebaker company letters urging clemency. Mr. Kollmar denied rumors that the German Government has taken or plans to take over the Bernstein Line, admitted these rumors have caused many cancellations.

Meanwhile Prisoner Bernstein has had a far happier lot in jail than most political prisoners. His clothes and laundry are sent in from his home, his food from restaurants. He is allowed a glass of beer daily and a full bottle of burgundy on Sundays, permitted to receive the London Times, and TIME, a privilege few free Germans enjoy. His wife, whose passport was at first seized, later restored, may visit him for 20 minutes each Wednesday, other prisoners' wives having the same privilege.

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