1930: Strafella Affair

Dr Franz Georg Strafella (3 March 1891–26 February 1968) had returned from the First World War an officer and made a considerable fortune in the early 1920s. Politically he was active within the Styrian Christian Social Party under Anton Rintelen. Strafella was a staunch ‘anti-Marxist’ and shareholder in various private railways, he was director general of the Graz Tramway Company, a member of the Chamber of Commerce, the owner of a private bus company, and a committee member of the Federation of Industry – as such the Social Democrats viewed his political activities as exemplifying a combination of political Catholicism and corruption.

When, in March 1930, it became known that Strafella was to be appointed director general of the Federal Railways, the left-wing “Arbeiterzeitung” newspaper was not the only one to raise objections. Members of the committee of the Federal Railways, accused Strafella of a conflict of interest and a lack of competence – among them even some with close ties to the government. Strafella subsequently sued the “Arbeiterzeitung” for defamation but the court ruled that the accusations of corruption were valid. However, the Christian Socials continued to insist on Strafella’s appointment. This resulted in the resignation of the Schober government in September 1930. Schober’s successor, the former vice chancellor Vaugoin, working together with later chancellor Dollfuss, finally appointed the controversial Strafella president of the Federal Railways on 2 October 1930. However, Strafella took a leave of absence until the conclusion of the appeal proceedings against the “Arbeiterzeitung”.
 
When the accusations of corruption were upheld in the second instance, Strafella was removed from office on 6 June 1931 – but scandalously he remained an active player in the Austrian economy. The lack of trust engendered by the Christian Socials played a decisive role in future political developments. The ‘conservative block’ crumbled and, in the elections of 9 November 1930, the moderate Christian Socials lost 9 seats, while the leaders of the paramilitary Heimwehr organisations were able to strengthen their influence in the government.