Manufacturing regulations in the
Treaty of Versailles (June 28, 1919) forbade Germany from developing heavy machine guns, but permitted machine pistols or submachine guns as a suitable weapon for police. This signaled the end of a 30-year cooperation between the Schmeissers and Bergmann as production was licensed to foreign weapons manufacturers. Schmeisser decided to continue work in weapons development. Together with his brother
Hans Schmeisser, he created the
"Industriewerk Auhammer Koch und Co" (Industrial Auhammer Koch and Company) in Suhl. Being at the end of World War I, he saw little business, and encumbered by the Treaty of Versailles, the future of the company was unclear. Schmeisser defied the treaty, working to continue development of automatic weapons. It was at this time that the company began cooperating with: C. G. Haenel Waffen- u. Fahrradfabrik Suhl (
C.G. Haenel), beginning a 20-year partnership. For the safety of his
patents, Schmeisser created a second company under the name of "Brothers Schmeisser" in the summer of 1922. This shrewd tactic was to prevent the loss of his patents if Auhammer went
bankrupt. In order to prevent bankruptcy on both sides, Auhammer and Haenel merged, with Haenel taking full responsibility and
liability for Auhammer business affairs. Schmeisser's attorneys who settled the deal became active
shareholders in the company. Before long, it was obvious that development of many types of automatic weapons was unaffected or even accelerated by the Treaty of Versailles. In the 1920s Schmeisser developed the
MP28, which was used extensively by the German police. Bayard signed an agreement with Schmeisser to manufacture and sell weapons to South Africa and Spain, among other countries. It is notable that these same weapons were used during the Spanish Civil War only 10 years later. Despite Schmeisser's success, the company often came within inches of bankruptcy. Berthold Geipel of Erma designed the MP 36 using Vollmer's EMP. The chief designer,
Heinrich Vollmer, revised the basic construction of Erma
MP-36 and developed from it the well-known German submachine guns of the Second World War, the
MP-38 and the
MP-40. 1.2 million pieces were manufactured for these weapons, and were among the first weapons to be manufactured with die cast parts, metal stamping, and a complete machine-assembly. This method revolutionized weapon production, allowing manufacture at an unprecedented speed. They became internationally known as "Schmeisser MP"s, mainly due to the use of the straight magazine he had patented. == After World War II ==