KAPNAR COTTON WORKS, NATIONAL CORPORATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R006900420005-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 14, 2016
• Document Release Date: July 25, 2003
• Sequence Number: 5
• Publication Date: February 28, 1951
• Content Type: REPORT

This document is hereby regraded to
CONFIDENTIAL in accordance with the
letter of 16 October 1978 from the
Director of Central Intelligence to the
Archivist of the Uni:od States.
Next Review Date: 2008
----ApprxweLLED.E.aeleit
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ApprgitlYbrReleae 2003/0 bi-1-1?:-CIA-RDP-82-004579.00690042000
CENTRAL INT:LUGENCE AGENCY REPORT NO.
931F
COUNTRY Czechoslovakia
(#)
giNATilON FirEPORT
CONFIDEN-1 iAL
SUBJECT Kapnar Cotton ;forks, National Corporation
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THSiS UNEVALUATED NFORMATION
1. The. Kapnar Cotton jorkss National Corporations located at Vichova rad Jizorous
is directed by the following personnels
a. Vaclav Volfs plant managers who was formerly a technical employee at the
Czech Textile T;nterprises (CT7.) in Prague. Although a Communist Party
member since 1945, he le inclined to support the reactionary side and
is disliked by the cadre manager (political security officer) Antonin
Stepan? by the District Comittee of the Communist Party at tTilemnice,
and by the County National Committee at Liberec. Voir apparently has
good friends in the Central Committee of the Communist Party in Praguc.
b. Antonin Stepan, cadre manager. He is hated by all employees in the factory
for his sly activities on behalf of the party. Sometime during 1950 he
was purged from the District Committee of the Communist Party because he
employed reactionaries in the manage-lent, but he is still a member of the
National Committee in Liberec.
c. Josef Krysnars production manager. He joined the Communist Party under
compulsion in 7.1amh 1940 at Bromley. Ilecently he was accepted ao a candi-
date for one year.
d. ZderEk Svobod.a from Semily, chief of the economics department and a former
employee of the Data enterprise. He was a member of the Communist Party
from 1935 to 19.48, .d.len he was purged at Varnsdorf because he did not
approve of the coup of February 1948,
0. Frantisek Hofman, chief of the commercial administrative department and
also a former Data employee. He is not pro-Communist and he is a one-
year candidate for Communist Party merabership. Formerly he cooperated
with the National Socialist Party.
f. Vladimir Hladik? chief of the planaLng department. He is 26 years old,
a, Communist Party member since 19459 and the only leading employee whem
cadre manager Stepan trusts,
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g. J. Fisera, security officer; he is a manual worker and a reliable Caa-
munist Party member. Ha was nominated in 1950 by the District National
Committee at Jilemnice.
h. Miroslav Exner, head of the control and revision department. He is an
expert in his work, but it is not believed he will retain his position
and he is expected to be replaced at the earliest opportunity. He is
not a member of the Communist Party. One of the most dangerous Communiets
in the Kapnar management has been assigned to Damerls department:, namely:
io Frantisek Havlicek from Vichova. He returned from military service as
a political education officer with the rank of sergeant and is probably
intended to be the successor to Exner. He is a paid agent of the Ccmmurist
Party in Liberec and a nithless member of the party. He is introducing
a workers t militia into the enterprise. His daily tasks consist of eaves-
dropping in all the departments and writing denunciations for the use of .
hiener Communist circles.
j. Koldovsky from Ponikla nad Jizerou; he came into the organization in
October 1950 as educator of the Communist Party cadres. Like Havlicek,
he returned from a two-year military service and he attained the rank
of political education "lieutenant".
2. Of the 90 employees in the Xapnar works, seven are reliable Communists, 14
are unconvinced -,Jarty members, and the rerainder are reactionaries'.
3. In 1949 Kapnar weed 17 pleats. Towards the end of that year the Jilemnice
plant, formerly the Frantisek Kubanek plant, was liquidated. Technolen, the
largest weaving factory in the district of Jilemnice? is to be transferred
to the Jilemnice plant, and the Technolen factory is to be converted to an
armanent plant. In July 1950 the Vilemov plant was turned over to the wood
industry, Taft, a national corporation with its management at Albrechtice,
for the Rokytnice plant. Ie. October 1950 the plant at Burany was abolished
in accordance with the industrial reorganization. About the end of 1950 pleat
No. 12 at Ponikla and plant No. 15 at Arm:Iv/eta aear Haraehov will be abolished.
The Ministry of National Defense is interested in the buildings of the Ryzoviste
plant which are to be used as living quarters for laborers and research workers
because uranium has been discovered ir that aeaaa
4. The remaining Kapnar plants had been instructed to increase their quota fcr
the fourth quarter of 1950 by 25 percent and to introduce a second shift for
that purpose On 19 October 19500 the management was ordered to reduce the
plan by about 8-10 percent. It has been confidentially announced faam Prague
that the 1951 production of textiles, for politicalicasons will be reduced
to about one-half of the present productiol. Therefore, the abolishing of
additional plants is certain to take place although it is not yet known whicA
plants will be afTected. A. commission has already inspected the foreer Goeldner
e.cHanaey plant, which is the largest plant in aolzytnicop in order to determine
the cost of converting the plant for the metal industry. At preeent, however,
the plant is desigaated as cae of "textile evolution" (sic) and throe of its
halls are being eopippedwilia automatic machinery valued at,millione of
crowns Q It should be noted that the R. Haaaey plant had been converted for
the metal industry during the German occupation.
Sari
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5. At present the Kapnar enterprise is composed of the following factories:
a. Vichova nad Jizeroz:
b. Hrabacov
c. Vitkovice
d, riartinice
e. Roztoky,
f. -,oztoky? 11
g. Ponikla (weaving plant)
h. Rokytnice (Goeldnez-Haneey)
Horni Rokytnice
j. Dolni Rokytnice
k. Sklenarice
1. Ponikla (spinning plant)
m. Vysoke nad Jizerou
n. Ryzovice
OG Dolni Stepanice (manufacture of clothing)
6. The quality of the goods produced by the factories is becoming increasin-giy
inferior as a result of the poor quality of the raw materials which are imported
mainly from the USSR. About 40 percent o-7 the total production is exrorted,
and the remainder is either sold to the tram at reduced prices or else goes
for home consumptfLon. About 35 percent cotton is used in production, and the
rest is a mixture, mostly of artificial substances.
7. Fz-oia 2 to 7 October 19500 production in all plants averaged 63.6 percent, and
the following MECIS it was 72.9 percent. Under present conditions it is not
possible to carry out the production planned for the fourth quarter of 1950
because of the lank of manpower which had been promised but which had not
been assigned to ;112 textile industry as a result of political events. The
quota for the period beimeen 1 January and 15 October 1950 was competed
96.8 percent.
8. As of 1 October 1950, the Kapnar enterprise had the following stocks on hand:
a. Rau materials consisting of raw cotton, cuts, and mixtures of cotton and
cuts at the Ponikla weaving plant, amounting to 440000,000 Kcs,
b. Yarn in crates and being processed, 822000,000 Kcs
Finished and unfinished goods* 75,000?000 Kcs
d, Vsterials for auxiliary pl-oduction, iCs0000000 Ke8
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9. Mich chaos has been caused by the fact that as of 3 October 1950 goods are
invoiced Ly the factory to the finishing works, which invoices the goods back
to the factory, and then the factory in turn invoices the goods to the purchasor.
This procedure is to be maintained until 31 December 1950, Dcginning 1 January
1951, the goods will be invoiced by the factory to the finishing vorhs?vhich
will sell the finished goods directly to the purchaser. In the neantime large
stores w-e to be set up in the managements of the finishing works to handle
such duties. For instance, there is to be one large store at Kolora, a nrtional
enterprise at Liberec.) for the entire county.
10. The economic achievements of Kapnar have been very poor. From the time of
its nationalization in October 1949 to the end of that year, it experienced
a net loss of 7,350,000 Kcs. From 1 January to 30 SeptelAber 1950, the loss
was 12)875/2000 Kus. The greatest part of these losses results frail the price
concessions made on sbipments to the USSR because the latter blAys at world
prices and not at Czech prices. These losses are evident in spite of the fact
that the Czech Textile Enterprises in Prague compensates for SOM.? af them.
In addition the estimate of administrative expenses is not sufficient to
cover the cost of maintaining the growing number of administrative staff .
members. A third factor is the constant change in the evaluation of stock;
at the warehouses.
11. In October 1949 the credit of Kepner with the State Bank was 30,000,000 KcI.
It now amounts to 142,000,000.
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