Krupp - Pioneer of the Steel Age, 1811 - 1895

The Czech book of Z. Jindra about Krupp with a German-Austrian theme is based on the Historical Archives of Krupp/ Essen, partly on Viennese material. Three chapters concentrating on the period from 1851 to 1873 and 21 sub-chapters thematically deal with Krupp`s astonishing rise (respectively that of the Berndorfer Metallwarenfabrik near Vienna) in the time, when the firm developed into a pioneer of the steel age. The firm had three advantages: it developed in one of the main industrial regions of Germany (Ruhrgebiet), it helped the German heavy industry to become the leading sector of industry, and through the original production of seamless railway-tires and steel guns Krupp supported the economic and national unification of Germany. The first chapter describes the growth of the firm from a small steel-foundry (1811) under Friedrich Krupp up to the technical and financial stabilization of the factory 1827-1851 under Alfred Krupp. The quality of steel was improved, with the help of silent capital companions new machines were installed, the assortment of products and sales was expanded, turnover and earnings increased. The foundry moved to large-scale production and reached great success at the First World Exhibition in London. Research questions: the origin and functions of entrepreneurs, providing of know-how in England, new investments and their financing, "discovery" of a steel gun. In the classical period of joint-stock companies 1852-1873, described in the second chapter, Krupp remained a family enterprise, but nonetheless developped to the largest firm in heavy industry in Germany. This was due to the inauguration of the gun-production, creating their own selling-organizations at home and abroad and the formation of a combined metallurgical concern with its own raw material basis and iron-works. Enormous profits because of the participation in the expansion of railways and the privileged production of seamless railway-tires allowed Krupp to make the best use of the simultaneous revolution in the technology of fire arms and to pass to mass production of steel (Bessemer process). Also the warlike preparations in the time of German unification helped him. This all enabled Krupp with the help of lobbyism in Berlin to defeat both the followers of the "bronze-party" in the army and the competing firm (Bochumer Verein). Research questions: transformation of factory into a concern in form of an "entrepreneurial enterprise", specialities of the private armaments industry, structure and situation of workers, creating of privileged group "Kruppianer". The third chapter shows Krupp`s transformation into a "state within the state", the military indispensable "Nationalwerk" with unprecedented economis power. The first place among Krupps production got Bessemer- and Siemens-Martin-steel, crucible steel dropped to third place, but was continually used to produce arms. While the economic crisis and the great depression of the 1870s and 80s struck mainly the departments producing peaceful goods, the financial crisis of 1873-74 was much worse. The book deals with its causes and its overcome with a bank loan mediated by government, with Krupp`s armament export policy and structure in the world. The efforts to conquer the arms market of Austria-Hungary failed, when Uchatius-steelbronze was used for artillery armament of the monarchy. Krupp solved the fierce social issue partly by introducing social facilities, partly by persecution of social democrats ("Standpoint of landlord"). Research questions: transition to "organized capitalism", internal organization of the firm and its management, methods, structure and extent of arms export and its state support. Compared to older publications the third part of the book is concentrating on Krupps trade relations to Austria and has a focus on the correlation of workers and employer.