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In its early years, and during the Nazi era, it was strongly associated with theories of Nazi eugenics and racial hygiene advocated by its leading theorists Fritz Lenz, (first director)Eugen Fischer, and by its second director Otmar von Verschuer.
Organized under Dr. Eugen Fischer of the Kaiser Wilhelm Institute of Anthropology, Human Heredity, and Eugenics, it was decided that the children would be sterilized under the 1933 Law for the Prevention of Hereditarily Diseased Offspring.