Figure 1.--I think this is the Krupp family with Gustav and Bertha. Alfred is the oldest boy at the right. We think this portrait was taken about 1912, just before World war I. |
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Friedrich Krupp (1787–1826) founded the Krupp family dynasty. He built a small steel foundry in Essen while the Germans states were still controlled by Napoleon (1811). This was before the the onset of the industrial revolution in Germany which lagged behind industrial developmebt in Britain. It was his son Alfred (1812-87) who turned the small family foundary with five mployees into a huge industrial enterprise. He became known as "the Cannon King" and "Alfred the Great". It was Alfred that made the decesion to invest in new technology to become a major manufacturer of railway material and locomotives and the time when Germany began building a major railway system. He also mde a major commitment to the Bessemer process. He acquired mines in Germany and France to supply his factories. Along with astute business and technical decesions, Alfred made an important commitment to his workers. He subsidized worker housing and offered health and retirement benefits. Krupp entered the armaments business (1840s). They sold steel cannons to the Russian, Turkish, and Prussian armies. The demand and high margins for armaments led the compazny to increasing commit its efforts to weapons manufacture. About half the company output was weapons (1880s). Krupp became the world's largest industrial company. And tht was before the European arms race began in earnest.
The Krupp industrial enterprise began when Friedrich Krupp, the family patriarch, founded a steel foundary in Essen. The Krupps beca,e famous for manufacturing arms, especially heavy arms like artillery. This was not what Friederix=ch Krupp or his descendents had in mind in founding and expanding the company. The manufacrture of civikian goods is what they planned to do, especially railroad equipment. It was the Prussian/German Government that pressured the Krupps to manufacture arms. The founder not only wanted to buld a family enterprise, but to work for the 'common good'. And here the Government helped define the common good. As industry developed in Germany a somewhat different system developed than the free market capitaism that developed in Brirain and America. The Government played a much stringer role, directing development in areas needed to support the national power of first the Prussian Kingdom and then the German empire. And the national need fior the instruments of power ciorresponded to Krupp's need for lucrative long-term contracts. Thus the Krupp industrial enterprise gradually began to focus on emaments. Profit is important for any industrial enterprise, but important to the Krupps from the beginning was creating a d=sound enterprise within an overal framework of social responsibility. [James] At a very early point the Krupps offerd a voluntary health insurance ptohram (1836). And soon after ther were life insurabce and pension plans offered. These were very advanced programs at the time. And there were worker hostels and hospitals. In exchange for good wahes and these benefits, the Krupps epected complete loyalty and strongly discouraged union organization and poliical activism. The Krupp works played a major role in arming Germany during both world wars. It was not until the NAZIs and World war II with the conscription of workers did the Krupp work force involved slave labor.his in particular tarnished the nane if the firm. [Manchester]
Friedrich Krupp founded the Krupp family dynasty. He built a small steel foundry in Essen while the Germans states were still controlled by Napoleon (1811). This was before the the onset of the industrial revolution in Germany which lagged behind industrial developmebt in Britain.
It was Friedrich's son Alfred who turned the small family foundary with five mployees into a huge industrial enterprise. He became known as "the Cannon King" and "Alfred the Great". It was Alfred that made the decesion to invest in new technology to become a major manufacturer of railway material and locomotives and the time when Germany began building a major railway system. He also mde a major commitment to the Bessemer process. He acquired mines in Germany and France to supply his factories. Along with astute business and technical decesions, Alfred made an important commitment to his workers. He subsidized worker housing and offered health and retirement benefits. Krupp entered the armaments business (1840s). They sold steel cannons to the Russian, Turkish, and Prussian armies. The demand and high margins for armaments led the compazny to increasing commit its efforts to weapons manufacture. About half the company output was weapons (1880s). Krupp became the world's largest industrial company. And tht was before the European arms race began in earnest. One historuan writes, :"Alfred Krupp perfectly fits the mold of the heroic entrepreneur. Profoundly skeptical of joint-stock companies, banks, and capitalism in general, but also od big-scale science and modern research methods, he was a genius at extendig to its utmost limits the possibilities of the craft entreprenuer." [James]
Alfred's son Fritz inherited control of the Krupp complex when his father died (1887). Alfred had been a very stern man. He was also referred to as "Herr Krupp" even as a young man. His son was much more lsaid back, often referred to as "Fritz", even as an older man. While commited to the family concern, he was also a philanthropist. The idea of philsantropy was not common among Ruhr industrialists at the time. He was especially interested in eugenics. He had a genius of his own. It was Fritz who oversaw Krupp during the years leadingup to Workd war I. Germany had the best equipped armybin Europe. Krupp supplied most of the artillery used by the Imperial German Army. This was especially the case for the Army's heavy artillery.
Fritz had two daughters, but left no msale heir.
Fritz's daughter Bertha inherited control of the Krupp complex. At the time, it was not thought possible for a woman to run a giant industrial cinplex the suize of Krupp. Kaiser Wilhelm II personsally intervened and arranged for Bertha Krupp to marry Gustav Krupp von Bohlen und Halbach, a courtier and career diplomat. He took the additional surname of Krupp. It was passed to his oldest son Alfred, not to the couple's other children.
Gustav Krupp von Bohlen und Halbach led the Krupp family and indistrial complex during much of the first half of the 20th century. He was not a Krupp son, but married into the family. He married Krupp heiress, Bertha Krupp. Gustav very quickly emersed himself into the family business. Gustav led the Krupp complex during World War I. He shifted production almost entirely to producing artillery. The compsany wwas adversely ffected by the the loss of its overseas markets. The Allied naval blockade made it impossible tto export and the War created a vast demand for artillery. The Allies after the Armistice named Gustav as one of the German industrialists to be tried as a war criminal. The charges were specious, basically that he supplied arms to the German Army. On that basis, industrial concerns in Allied countries were also guilty. Germany was not occupied after the War and these trials never occurred. Adolf Hitler and the NAZIs seized power in Germany (1933). Hitler launvched on a massive armament program. The Krupp complex was key to German rearmament. Krupp arms were vital in German military victories duruing the early years of World war II. And Krupp factories began using slave labor from the occupied countrides.
Gustav's son Alfred took over management of the company duruing the last years of World War II. Hitler personally ordered the Krupp complex become a family concern again (1943). After the War with Germany's defeat, the Allies endited war criminals. Gustav because of senility could not be tried. Rather Alfred was indited by the Nuremberg Military Tribunal. He was convicted in the Krupp Trial for the extendsive use and abuse of slave labor. He was sentenced to 12 years in prison and ordered to sell 75 percent of his personal holdings in the firm. No buyers, however, could be found. With the instensification of the Cold War, adittudes began to change. He was released (1951). He was allowed to resume control of the Krupp complex (1953).
The Krupp Group merged with its largest German competitor, Thyssen AG (1999). The new combined company was ThyssenKrupp AG. It became Germany's fifth-largest corporation and one of the largest steel producers in the world. It is majority owned by the Krupp family non-profit foundation. This foundation is by chrter dedicated to the 'common good'.
James, Harold. Krupp: A History of the Legendary Family (2012). James is less censirial than Manhester..
Manchester, William. The Arms of Krupp (Prentice Hall, 1968). Manchester's book was extremely inflential incementing the sinsiter reputation of the Krupps.
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