SACO gave substantial loans to Giesche’s Erben by selling $15,000,000 collateral trust sinking fund bonds that would mature on August 1, 1941.
During this time SACO was denied all income from the European Silesian-American activities and affiliates, and was hence unable to pay dividends on its outstanding bonds, which came due in 1941.
In 1941, the Swiss bank LaRoche acted jointly with Schulte to register another company in Switzerland, Internationale Kapitalanlegen Gesellschaft (Ikap).
Schulte convinced Harriman and Cornelius Kelley (president of Anaconda Copper) to sell their shares in Silesian Holding Company to Ikap.
On November 17, 1942, the Alien Property Custodian as authorized by the Trading with the Enemy Act, took over control of the German-owned shares of the Silesian-American Corporation.