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Murder, Mystery and Egon Schieles Dead City Swiss laundering of stolen Austrian art Judisches Museum, Berlin 18 May 2009 7:30 pm Raymond J. Dowd Partner Dunnington Bartholow & Miller LLP New York NY Entartete Kunst Degenerate


  1. Art Collection Spoliation Timeline • April 26, 1938 – Jewish Property Declaration Law gives Marshal Hermann Goering control over Jewish assets • September 8, 1938 – Grunbaum’s collection deposited with Nazi storage company (Schenker) • November 12, 1938 – Jewish Property Declared “available” to the Reich • January 31, 1939 – Aryan trustee appointed to control and liquidate Grunbaum property • June 30, 1939 – Lily declares intact art collection to Nazis • November 14, 1941 – Fritz is dead, Lily’s only remaining property is estate in Slovakia • October 5, 1942 – Lily murdered penniless in death camp in Minsk, Belarus 30

  2. Power of Attorney Used To Steal Fritz’s Property • Art collection listed as Fritz’s in Jewish Property Declarations • Lily needed power of attorney from Fritz to liquidate property and life insurance policy • Power of attorney executed in Dachau • Powers of attorney void as a matter of Austrian law - used to systematically force Jews in concentration camps to liquidate property • Thus, during Fritz’s stay in Dachau, any transfers by illegal power of attorney were void 31

  3. Minsk Lily Grunbaum was deported to Minsk where she died on October 5, 1942. Minsk was a death camp. 32

  4. Powers of Attorney “There is a curious respect for legal formalities. The signature of the person despoiled is always obtained, even if the person in question has to be sent to Dachau in order to break down his resistance.” - U.S. Consul General in Vienna 33

  5. Grunbaum’s Dachau Power of Attorney • July 1938 - Fritz Grunbaum executes a power of attorney permitting his wife to liquidate his property, including life insurance policies • 1946 Austrian Nullification Act – Austria nullifies all transactions flowing from powers of attorney executed by concentration camp inmates 34

  6. Additional Evidence Grunbaum Collection Stolen By Nazis • Franz Kieslinger connoisseur and fan of Schiele • Nazis valued Schiele during war – auction prices high – officially displayed in Austria • BDA Employee Otto Demus inventoried Grunbaum collection in Nazi employ • According to Austrian government, no export license for Grunbaum Schiele’s ever obtained 1938-1960’s 35

  7. Schenker Export Application September 8, 1938 • Elizabeth Grunbaum submits while Fritz in Dachau • Stamped with Swastikas by Nazi functionary Otto Demus on or around September 8, 1938 • Roughly same number of artworks as Kieslinger Inventory (three envelopes of graphics) • Export license expired December 8, 1938 • No customs stamps indicating collection left Vienna during WWII • No Bundesdenkmalamt (“BDA”) export licenses during Nazi era, indicating collection did not leave Austria during WW II 36

  8. Lily’s Schenker Inventory 21 Oil Paintings 15 Water Colors 2 Pastel s 6 Miniatures 2 Oil Miniatures 10 Drawings 278 Drawings (some in color) 7 graphics 3 envelopes with misc. graphics 66 graphic prints 1 collage 37

  9. Edmund Veesenmayer: Board of Directors of Schenker Nazi War Criminal 38

  10. What is Schenker? • World’s largest freight forwarding company • Purchased secretly in Switzerland in early 1930’s by Germany • Controlled centrally from Berlin from early ’30’s • Edmund Veesenmayer used Schenker to prepare for Anschluss • Schenker used to export Jews to Palestine • Thoroughly Nazified entity • Refused to account for Fritz Grunbaum’s property • Official freight forwarder of the Beijing Olympics 39

  11. Where is Fritz Grunbaum’s Stolen Dead City? 40

  12. 41 Now in Leopold Museum in Vienna Egon Schiele’s Dead City

  13. What is the Leopold Museum? • Created as “private foundation” by Austria to purchase Rudolph Leopold’s collection of art looted from Jewish victims • Austria pretends that this “private foundation” (owned by Austrian government) is exempt from ban on Austria owning looted Jewish art • Austria owns major portion of museum during Rudolph Leopold’s lifetime, will inherit upon Leopold’s death 42

  14. Who is Rudoph Leopold? • Protégé of Franz Kieslinger • Kieslinger convinced Leopold to collect Schieles at a Dorotheum auction • Austria investigating collection for looted artworks 43

  15. How Did Leopold Get Dead City? • Austria to Switzerland (early 1956) • Switzerland to New York (September 1956) • 1958 - New York to Austria (Leopold swap with Otto Kallir for eight Schieles and a Klimt) • 1997 - Austrian loan to MoMA in New York • 1999 - Morgenthau/MoMA – Dead City given to Leopold Museum Austria 44

  16. Dead City’s Journey Through Austrian Corruption Egon Schiele Arthur Roessler Fritz Grunbaum – 3/22/38 Edmund Veesenmayer’s Schenker? Otto Demus’ BDA? 9/8/38 – 4/24/56 Eberhard Kornfeld (Switzerland) 4/24/56 Otto Kallir (9/18/56 Invoice, Possession of Drawing Delivered in New York) 1958 – Swapped to Rudolph Leopold for 8 Schieles and a Klimt 45

  17. 46 Swiss Financing of Nazi Art Sales

  18. 47

  19. Nazi Reich Laundered Artworks Through FIDES • FIDES – Treuhand of Zurich • Established 1910 • Subsidiary of Credit Suisse • Offered 30% discounts to Americans and British • Laundered sales of Nazi art • Attempted to buy all degenerate art from Nazis • Never investigated by the Swiss • Visit www.fides.ch • Bergier Report mentioning FIDES laundering www.uek.ch (best information in Vol. 1 not online) 48

  20. Why Has The Massive Swiss Laundering of Nazi Art Not Been Investigated? 49

  21. 50 April 24, 1956 Switzerland Bern,

  22. Eberhard Kornfeld Gutekunst & Klipstein Kornfeld & Klipstein Klipstein & Assocs. Galerie Kornfeld 51

  23. Significance of 81 Schieles in Weighing the Evidence • Rare and exotic collection • Each artwork unique • JK identifies only 76 Schiele collectors and dealers who knew the artist • JK Identifies only 26 Major collectors and dealers after Schiele’s death (including Grunbaum) • Small competitive group of collectors who knew each other • Provenance paperwork critical to establish value of these artworks • Rare stolen works cannot be sold while witnesses are alive Egon Schiele’s “Dead City” 1911 52

  24. Pre-War Publications Showing Fritz Grunbaum’s Schiele Collection Known to Kornfeld and Kallir • 1928 Hagenbund/Neue Galerie Correspondence • 1925 Wurthle Gallery Catalog • 1930 Otto Kallir Catalog Raisonnee • Famous art collection of famous political dissident would surely not escape Nazi scrutiny 53

  25. Kornfeld 1956 Schiele Catalog #1 Dead City with provenance from Otto Kallir’s 1930 catalogue raisonnée 53 other Schieles with no provenance listed Kornfeld testifies that all Schieles in ’56 catalog came from Grunbaum 54

  26. Dead City’s Provenance Published in ’56 Kornfeld Catalog Shows: 1925 Wurthle Exhibition, 1928 Hagenbund Exhibition and Fritz Grunbaum’s Ownership • K 01 H DBM(06366) OK30 94 H DBM(06366) 55

  27. Gutekunst & Klipstein • According to Swiss government’s Bergier Report, Gutekunst & Klipstein selling confiscated works for Nazis • Selling Nazi confiscated Kandinskys to Solomon Guggenheim in New York • German govt report – Gutekunst & Klipstein major seller of Nazi looted art • Bergier Commission never used subpoena powers – a true whitewash 56

  28. Galerie Kornfeld to Sotheby’s Legant February 14, 2005 • Kornfeld claims no written documentation of acquisition P. Ex. 120 at DBM 2400 57

  29. Kornfeld’s Sworn Deposition • Kornfeld swore his gallery has all documentation since 1919 • Thus Kornfeld’s claims to Sotheby’s that all documents destroyed was false 58

  30. Kornfeld’s Ludicrous New Claim • Fritz Grunbaum’s sister-in-law allegedly sold him 54 Schieles • Kornfeld never asked where she got them • Sister-in-law had no heirship rights under Austrian law • Thus, Dead City stolen while Fritz in Dachau, never given to any heir 59

  31. Evidence Kornfeld Forged Lukacs’ Signatures • Lukacs misspelled own name • Handwriting expert expressed “massive doubts” writings came from same hand • Kornfeld blocked access of heirs to handwriting expert for inspection of original signatures • Kornfeld hiding in Switzerland • Artworks mentioned in correspondence don’t match up 60

  32. Dead City Entry in Kornfeld Inventory 61

  33. 5/22/56 Bound Inventory Volume There is no seller listed in ink 62

  34. 63 Pencil Receipt for Two Deliveries

  35. Receipt dated April 24, 1956 Excluded notation No invoice Pencil signature 64

  36. Purported Acquisition of Dead City April 24, 1956 • 4/24/1956 – Kornfeld claims he paid cash for Dead City and 45 other Schieles • Receipt signed in pencil • Receipt was payment for “4/24/1956 Invoice” (Kornfeld refused to provide this document) • Payment was for 2/7/1956 delivery of 20 Schieles and 25 additional Schieles including Dead City entered in EK inventory on 5/22/1956 with 23 other Schieles • Seller’s name not recorded 65 • “Lukacs” added later in pencil by Kornfeld

  37. Kornfeld’s Acquisitions for Personal Collection - Red Blouse - JK 1394 • K 28 66

  38. Chief Inspector Benesch - JK 2098 • K 43 H20 DBM(06366) 67

  39. Portrait of the Art Critic Arthur Roessler JK 1631 Female Nude with Raised dress -JK 1308 • K 31 68

  40. Evidence of Kornfeld’s Bad Faith • Warned not to acquire art from Nazi-occupied Austria by Swiss government • Swiss art dealers are a profession requiring due diligence under Swiss law • Schiele’s works (Austrian artist whose collectors murdered) a “red flag” to Kornfeld • Kornfeld knew of Grunbaum provenance of Dead City and was on notice of contents of 1925 Wurthle catalog showing other ’56 sale items as Grunbaum’s • No Austrian export license • No Swiss import documents • Failed to record seller’s name in ink in business records • Lukacs had no ownership documents • Concealment of Lukacs name until late 1990’s until 69 Lukacs conveniently dead

  41. Why Did Kornfeld Keep Images of Benesch and Roessler? 70

  42. How Did Leopold Get Dead City? Egon Schiele’s 71 Chief Inspector Heinrich Benesch and His Son Otto (1913

  43. Otto Benesch • Knew Egon Schiele • Art dealer and Schiele expert • Knew Otto Kallir in Vienna • Taught at Harvard When Kallir in New York • Director of Albertina Post-WW II • Conducted major sale of Albertina works on paper through Gutekunst & Klipstein in May 1956 • Wrote introduction to 1956 Kornfeld Schiele Catalog containing Grunbaum works • Wrote introduction for Kallir’s 1957 Galerie St. Etienne Catalog containing Grunbaum works • Knew Schieles illegally exported from Austria and belonged to Grunbaum • Personal friend of Eberhard Kornfeld 72

  44. 73 Egon Schiele’s Portrait of Arthur Roessler Arthur Roessler

  45. Arthur Roessler • Knew Egon Schiele • Owned Dead City before Fritz Grunbaum • Knew Otto Kallir in Vienna • Wrote essay for 1956 Kornfeld Schiele Catalog • Knew artworks stolen from Fritz Grunbaum 74

  46. 75 President, Bundesdenkmalamt 1946-1964 Otto Demus

  47. Otto Demus • Inventoried Fritz Grunbaum’s Schiele collection for Schenker in September 1938 • In charge of BDA which required export licenses for Schieles 1946-1964 • Would have had to approve May 1956 sale of Albertina’s works on paper through Gutekunst & Klipstein • Would have had to approve export of Schieles in 1956 to Switzerland • Worked closely with Albertina head Otto Benesch following World War II • Impossible Demus was ignorant of Swiss Schiele laundering • Postwar Demus persecuted Jews by forcing them to make donations to Austrian museums in exchange for export licenses 76

  48. Mathilde Lukacs: Red Herring? Why the Sister-in-law Story Fails Under Austrian Law • Mathilde Lukacs story complete fabrication • Even if Mathilde Lukacs had managed to come into possession of Fritz Grunbaum’s art collection she would have had no authority to sell it under Austrian inheritance law • Mathilde Lukacs story irrelevant under Austrian Civil Code 77

  49. Otto Kallir 1923 - Neue Galerie, Vienna 1939 – Galerie St. Etienne, New York 78

  50. Otto Kallir’s 1930 Catalogue Raisonée Shows Grunbaum’s Ownership • Kallir was Fritz Grunbaum’s Vienna Dealer, founder Neue Galerie • Borrowed Dead City and 25 Schieles including Girl with Black Hair from FG’s collection in 1928 for Hagenbund Show Egon Schiele’s “Dead City” 1911 79

  51. 9/18/1956 Kornfeld Invoice K 1 Fritz Grunbaum’s Dead City 80

  52. Otto Kallir’s Direct Knowledge Dead City and Other Artworks Were Grunbaum’s 81

  53. 82

  54. Kallir/Kornfeld Connection • Kallir Moved to New York in 1939 • Tried to do business with Nazis 1939 • 1955 Kallir co-published Kollwitz catalogue raisonnée with Kornfeld • 1956 Kallir bought 20 Schieles from 1956 Kornfeld catalog including Dead City • Not an arm’s-length transaction 83

  55. Kornfeld and Kallir: World’s Largest Collections of Unprovenanced Kaethe Kollwitz Works • Dr. August Klipstein of Gutekunst & Klipstein published Kaethe Kollwitz catalogue raisonnée • Kaethe Kollwitz artworks stripped from German museums by Nazis • 1955 Kollwitz catalog republished jointly between Otto Kallir and Eberhard Kornfeld • Today, Kallir’s Galerie St. Etienne in New York has world’s largest inventory of Kollwitz works • Today, Kollwitzs sold freely without provenances 84

  56. U.S. Museums Falsifying Provenance - Example Oberlin College – Egon Schiele’s Girl With Black Hair 85

  57. Kornfeld 1956 Schiele Catalog #14 – Girl With Black Hair 86

  58. 87

  59. Litt, Steven: Paintings In Oberlin Linked to War Looting The Plain Dealer, March 1, 1998 • “The Schiele drawing, which depicts a young woman nude from the waist up, may have been looted by the Nazis from the collection of Fritz Grunbaum, who died in Dachau in 1940” • “Rudolph Leopold, benefactor of the Leopold Museum, has said that in addition to Dead City, 16 other Schieles in American museums, including Girl With Black Hair in Oberlin, share the same ownership history.” (emphasis supplied) 88

  60. Art Loss Register • Oberlin asked Art Loss Register to check provenance of Girl With Black Hair in 2003 • ALR reported to Oberlin that Girl was possibly Grunbaum’s • ALR told Oberlin that the Mathilde Lukacs/Switzerland story was doubtful • Told Oberlin to research pre-war catalogs • Oberlin did nothing 89

  61. Art Loss Register • Private organization • Owned/formed by auction houses to operate at a profit • Conflicts of interest inherent leave advice tainted • Not necessarily an impartial organization 90

  62. 1925 Wurthle and 1928 Hagenbund Provenances of Girl with Black Hair 1928 Neue Galerie Receipt List of Works 1925 Wurthle Catalog Provenance from Fritz Grunbaum

  63. Sale of Girl with Black Hair on the same September 18, 1956 Invoice with Dead City K 14 Girl with Black Hair 92

  64. 93 Austria’s Reaction To This Terrible Scandal?

  65. 2008 Birthday Party/Exhibition of Kornfeld Private Collection at Albertina ROUTES THROUGH MODERN ART. FROM THE COLLECTION OF EBERHARD W. KORNFELD 7 November 2008 - 8 February 2009 In honour of the 85th birthday of Swiss art dealer Eberhard W. Kornfeld, some 200 works from his remarkable private art collection are on exhibit at the Albertina. The auction house owner and art publisher is a distinguished expert on prints and the author of catalogues raisonnés on Ernst Ludwig Kirchner, Paul Klee, Marc Chagall, Käthe Kollwitz and numerous other artists. Like the collection as a whole, the exhibition focuses on multifaceted selections of their works, as well as works by the collector’s close friends Pablo Picasso, Sam Francis and Alberto Giacometti. 94

  66. Grunbaum Works in Austria

  67. Two Standing Female Nudes • JK 1084 • Currently at the Leopold Museum in Vienna 96

  68. Verchlungene Akte (Umarmung) • JK 1147 • Currently at the Leopold Museum in Vienna 97

  69. Seated Girl with Yellow Cloth • JK 1278 • Currently at the Leopold Museum in Vienna 98

  70. Devotion • JK 1418 • Currently in the Leopold Collection 99

  71. Standing Girl with Orange Stockings • JK 1488 • Currently in the Leopold Collection 100

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