Biography of Hugo Stinnes (1870-1924)

Industrial and German financier, born in Mülheim on February 2, 1870 and died in Berlin on April 10, 1924. He/She was one of the main German magnates in the first decades of the 20th century. Enriched thanks to contracts signed with the Government during the first world war, the power acquired at that time allowed him to open subsidiaries of their companies on several continents, as well as a wide diversification of its business.

Entered into business German through his father, since he/she was the son of one of the most important owners of mining extractions in the basin of the Ruhr. While very young integrated directive staff of his father's company, soon decided to break free of parental ties and establish its own mining company. His beginnings were within the business that most knew, that of mining, but his sights were placed in companies of higher dimension. From the outset it was clear that to become one of the most important employers in the country should diversify production. This is how, little by little, it became erect one of the most important vertical trust of all Germany, in which their companies were supplied with products of their own firms. At the beginning of its ambitious activity already had under his power shipowner industries and Mills, as well as mining and steel businesses. Its tentacles soon started to be spread not only by Germany, but all over the world. In South America it got excellent contracts with some of the States of the continent, such as the one signed with the Argentine Government for the exploitation of oil in this country.

Once Stinnes succeeded in getting enough business to maintain a position of power in Germany, decided that a good image should be among the public. To achieve its objective, I knew that the best resource was to get control of the media. Thus, began to buy different newspapers and put pressure on those that could not put directly, through the acquisition of the creditor of these banking firms. Stinnes intimidating force at that time could be encoded in a corporate heritage that exceeded the seventy-five million German marks. Stinnes maintained a position hegemonic in relation to mining and the steel industry in the Rhineland and Westphalia regions. Also in these same areas had the monopoly of the supply of gas and electricity through the Rheinisch Westfälische Elektrizitatswerk AG company, which was supposed to supply a total of twenty-five cities.

Despite everything, the zenith of the financial expansion of Stinnes did not occur until the first world war broke out. When most of the German economy suffered from the recession caused by the war, Stinnes businesses were expanding. During the war it knew to seize much of the contracts issued by the imperial government for the supply of German society and of the troops featured on different fronts. These contracts became the second most important industrial of Germany, the only one able to make shade to Walter Rathenau. The relationship between both industrial was cordial, proof of this was that Rathenau requested the collaboration of Stinnes in the Department of raw materials that in Berlin, he/she coordinated himself. Stinnes took charge of certifying the takeover of different mines and foundries that the German army was occupying in the territories French and Belgian. Also he/she oversaw the change of machinery in the busy industries, and was responsible for the shipment of labourers of the areas subjected to the German industries.

When even the artillery explosions resounded the race took most of the German and, after industry, Stinnes was able to anticipate events that they would follow to Germany after its defeat. Thus it was, until the post-war inflation would fall on the German economy, he/she bought many companies with money that was nothing more than a piece of paper a few days. He/She also managed to will give you huge State compensation for the loss of the properties he/she had in Alsace and Lorraine, granted to France under the Treaty of Versailles.

Stinnes did not hesitate to put pressure on the Weimar Republic, despite knowing the political, social and economic difficulties that the country was going through. In the turbulent and uncertain of this period atmosphere, Stinnes was considered appropriate to go down to the political arena to defend their positions of furious antidemocrata. So far, his only participation in political life was to economically sustain the fledgling National Socialist German party, however not tied politically to the nazi party, they decided to found their own training: the Deutsche Volkspartei ('German people's Party'). In the elections of 1920, it attained a seat in the Reichstag, which he/she would retain until his death in 1924. In the municipal elections of 1921, his party defended staunch royalist and ultra-nationalist positions.

The need to control and manipulate public opinion was increasing as linked more and more with the world of politics; Stinnes maintained a very aggressive with the media economic policy, so that these revolving toward their political positions. It caused a price increase the role through their logging companies and paper pulp. This blackmail made that many editors are plegasen to the dictates of Stinnes. Control of the media was not limited to Germany, they expanded their empire communicative to neighbouring countries with the control of newspapers in Prague, Budapest and Vienna. These publications served as propaganda loudspeaker to the political thoughts of Stinnes, focusing especially on attack the Treaty of Versailles. Even from those media Stinnes came to ask the German workers that leave the eight working hours up to ten.

1922 was a key date for the German industry, as Walter Rathenau was assassinated in that year. Stinnes, along with other German industrialists, decided to create the most important trust in the country, known as the Rheinelbe-Siemens-Schuchert Union, which was under its control all of the exploitation of coal in Germany and foundries for iron and steel; In addition this union managed to compete with the AEG of the Rathenau in electricity supply. The holding company led by Stinnes was formed by countless companies from different sectors and had the characteristic that the signatures of the company were not supplied products of the trust companies.

When Stinnes died, on April 10, 1924, he/she controlled a fifth of the entire industry of Germany, and his empire included more than 1.500 companies. It had under its control mines, iron and steel and metallurgical industries, hotels, restaurants, newspapers, timber factories, shipyards and steam boats lines. Interests are shared by much of the world, from European countries such as Austria, Sweden, Denmark, Italy, or Spain, to, for example, Brazil and the Netherlands East Indies. However, upon the death of Stinnes, showed that all that mighty Empire had feet of clay, already who before the lack of visible head soon enter bankruptcy. Although business began to be directed by his son, the interests were too scattered and were very difficult to manage. Many of the companies had to be liquidated and in 1925 he/she had to found a new company very different from the previous one.

Links on the Internet

http://www.dhm.de/lemo/html/biografien/StinnesHugo/; page dedicated to the biography of Stinnes (in German). http://www.idgr.de/lexikon/bio/s/stinnes-h/stinnes-h.html; page dedicated to the biography of Stinnes (in German).