In light of the revelations that had brought down Marx's previous cabinet, the Reichswehr's leadership decided that it needed to cooperate more closely with the government. On 26 February 1927 it revealed to Marx and his cabinet its strategic vision and armament status, including the aspects that were illegal under the Treaty of Versailles. Marx agreed to keep the plans secret and to take responsibility for them as long as the Reichswehr remained willing to be open about its activities. In spite of the secretive nature of the cooperation, it was a step towards putting the civilian government more in control of the military. Later in the year, a Berlin newspaper revealed a secret rearmament program that was uncovered during the bankruptcy proceedings of a film production company. Called the
Lohmann Affair, it led to the dismissal of two high-ranking naval officials, including
Hans Zenker, head of the
German Navy, who had been at the 26 February meeting with the cabinet, and to the resignation of Reichswehr Minister Otto Gessler. As a result of the scandal, which the cabinet kept under wraps as much as it could, the government determined that in the future all secret military expenditures were to be dependent on governmental approval. In the policy statement for his fourth government, Chancellor Marx had said that fighting unemployment, passing unemployment insurance and shortening working hours were top priorities. The Reichstag succeeded in passing an overtime law that allowed more than eight hours of work per day only if sanctioned by a collective agreement or "official authorization". In addition, overtime had to be compensated by supplemental pay of at least 25%. There was resistance from industry to the corresponding changeover from a system of two shifts to three shifts per day, but it was nevertheless implemented in some heavy industrial concerns with the use of a binding declaration from the government. On 7 July 1927, the Reichstag overwhelmingly passed an unemployment compensation law that combined unemployment insurance and job placement into one department with local subdivisions that were made up of representatives of employers, employees and regional public authorities. It was "the last stone in the foundation of German social insurance". The Law for the Protection of the Republic, which had been passed following the assassination of Foreign Minister
Walther Rathenau by right-wing extremists on 24 June 1922, was extended for 2 years in May 1927 with the votes of the DNVP, which had originally voted against it. The law banned organizations that opposed the "constitutional republican form of government," along with their printed materials and meetings. == The school law and end of the government ==