Evening star., 1946-11-06
Black Market Melted
Army Ring S5O0,O0O,
Secret Report Shows
By Dovid N. NichoI
Foreign Correspondent Of The stor and
the Chicoqo Dolly News


BERLIN, Nov. 6.-Army investi-
gators attached to the inspector
generals Office, who have been
probing black market operations
here, under authorization of Gen.
Joseph T. McNarney, military gov
ernor of the American occupation
zone. have completed voluminous
secret report. parts of which can
now be revealed.
The inquiry, distinct from routine
Investigations carried out by the
Army's criminal investigation divi-
sion, has produced an amazing ac-
count of the activities of two high
ranking former United States Army
officers and about 20 others in a
black market ring which netted a
profit for itself of between $4,000
and 100000.
According to revealed details of
the account, one of these officers,
who had wide powers, organized a
gang of enlisted men to break into
wine shops art dealers and jewelry
stores. They had quarters outside
the regular compound and enjoyed
all kinds of extra privileges. They
called themselves privately the
''-'s Night Raiders
Accumulated Loot.
Their accumulated loot was stored
in several places in Berlin. Some
wine stocks were repeatedly placed
in the basement of the American
RED Cross headquarters, one of
whose officials left suddenly for the
United States about three months
ago.
The valuables were sent to the
United States, it is understood, in
the plane of another high officer,
who is not personally involved. The
report, it is said, places the full
blame on the pilot, a member of
the ring who made regular routine
trips.
What happens next is not quite
clear. One relatively Junior officer
is under house arrest here. Two
principals are already in the United
States. About IS enlisted men, also
involved, have been redeployed. The
whole subject Is causing consider
able embarrassment.
Girl Given Bracelet.
In addition to robbery the ring
is reported to have INDUCED in mas
siye cigarette dealings, first getting
marks for tobacco and then buying
silver, rugs, jewels, and other art
objects, A German girl, friend of
one of these men is said to have
been given a diamond bracelet
valued at $4,500.
Cigarettes were obtained in most
instances, it was reported, by one
of these high officers. who sent
weapons carriers regularly to the
post exchange with orders to cart
away four or five cases for ENTER
tainment purposes" Most of these
dealings are said to have occurred
in the autumn of 1945 when Gig
arettes were worth about $3.50 a car
ton, i'll German marks.
Penicillin obtained from Army hos
pitfalls and watches from post ex-
changes were also converted into
German currency and then into
valuabies. One post exchange
officer was accused of selling 200 to
300 watches. For this he received
no more than an official reprimand.
No Charges Filed.
The report, it is said. contains a
number of bank statements which
were obtained in the United States.
One, for example, shows a first
lieutenant with several accounts, in
each of which there are large sums.
Because no charges have been
filed, it would probably be libelous
to name these men. However, they
are we'll known among almost all
American personnel in Berlin. There
is strong feeling among the CTS be-
cause no charges have been pre-
ferred, when a CT can draw a stiff
penalty for minor violation.
lCopyright 1946D