Farben's High-Flying Heirs

Three of the hottest stocks on West Germany's stock exchange last week, avidly sought by German and foreign investors alike, were close cousins known by the tongue-twisting names of Farbenfabriken Bayer, Badische Anilin & Soda-Fabrik (B.A.S.F.), and Farbwerke Hoechst. Each was selling not far from $200 a share, and Bayer briefly outdistanced (in total market value) even the shares of Daimler, long the most popular stock on West German markets.

The three companies are the chief heirs' of I. G. Farben, once the largest corporation in Nazi Germany, which was broken up by the Allied occupiers in 1945. The $2.8 billion chemical trust was stripped of $1 billion worth of assets and 30,000 patents, deprived of 60% of its properties by the Russians and Poles, divided into 44 separate companies in the Western zone--including the three major chemical firms now sparking the West German market. In their remarkable comeback, the three companies last year rang up sales of $1.7 billion--more than three times the sales of the entire I. G. Farben trust in 1938.

Betaefigungsdrang. The high-riding success of the three Farben heirs is due to a combination of West German economic recovery and a spirit of free enterprise that was lacking in the cartel-minded Farben. While West Germany's other industries had a sales increase of 9.5% last year, the chemical industry's sales rose 14.7%, even though prices were lower than in 1952. To compete, Farben successors have put in new production techniques, developed new products, and effected operating efficiencies that enable them to produce twice as much with 145,000 workers as the parent firm did with 200,000.

Spurred by West Germany's most valuable resource. Betaetigungsdrang (urge to work), productivity per employee increased from $10,158 in goods produced in 1959 to $11,586 last year. All three firms have invested extensively in overseas plants, are spending heavily for research and development.

Greater Efficiency. Chances of West Germany's chemical Big Three regrouping are highly unlikely because the managements think that the free-enterprising new companies are more efficient than Farben. Besides, neither Bayer Boss Ulrich Haberland, 59, nor Hoechst Head Karl Winnacker, 56, nor B.A.S.F. Chief Carl Wurster, 59, is willing to give up the new empire he commands. Explained B.A.S.F. Boss Wurster: "We don't see any reason for reconcentrating. In our opinion, a return to the old I. G. Farben would be unwise, economically and politically."

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