Milton Hershey's Legacy

 

Hershey's father, who had a reputation as a dreamer, but not a doer, was mostly an absent father.  Thus, Hershey's childhood in Lancaster, PA was not a happy one. 

 

Later, he would create a residential school for orphans hoping to give them as much of  a normal childhood as possible. His school would provide free education, foster parents, and those activities that make for productive adults.  Even as late as 1987, Hershey's residential children were still milking cows before and after school.

 

Thanks to John D. Rockefeller, young Milton entered the candy business. Hershey's father, bought land around Titusville, Pa. had started refining oil from the first American oil gusher in 1859.

 

Although Hershey and his father didn't get along all that well, Milton said yes to his father's request to join him in the oil business.

 

After being swindled by Rockefeller, Milton Hershey started several candy business in his 20's.  All failed.  He then traveled to the Colorado mountains to find his "gold". 

 

When he struck out again, he went to work for a Denver candy company where he learned the secret of keeping caramels from going rancid.  

 

Hershey had found his "gold".

 

He returned to Lancaster, PA to establish the Lancaster Caramel Company which became profitable immediately.  However, after visiting the Chicago Columbia World's Fair, he proclaimed that the future was in "chocolate and not caramels".

 

Hershey made his first million by selling the Lancaster Caramel Company which he 

then used to begin the legendary Hershey, PA  and the Hershey Chocolate Company.

 

Hershey, growing up in Pennsylvania, a state founded by Quakers, undoubtedly was influenced by them.  As a youngster growing up in the Reformed Mennonite Church which had similar beliefs as the Quakers, he became aware of "Quaker Capitalism".

 

English firms such as Cadbury and Fry's, combining a social conscience along with business practices of honesty and transparency, rose to prominence and profitability. 

 

Hershey, Pa, a company town paralleled a town started by George and Richard Cadbury outside of Birmingham England.  The Cadbury's with their parental attitude toward their workers, along with a product breakthrough, rose to become the largest chocolate company in England and possibly the world.

 

When he died in 1945, Hershey left behind a company with its products and employees that were well known and well respected.  

 

Hershey left his shares to the Hershey Trust that would govern the company and to use the profits to fund Hershey's Industrial School for Orphans.

 

However, in 2002, a Wall Street Journal report announced that Hershey Trust members had secretly been seeking to sell the company.  

 

WSJ headline screamed:  "Hershey is about to lose their sugar daddy."

 

Not surprisingly, the backlash was enormous and quick.  Three generations of Hershey residents had worked in the chocolate town. They combined with the thousands of Hershey's Industrial School for Orphans graduates and with people all across the United States to force Hershey Trustees to back down.

 

The Pennsylvania Attorney General looked into the matter and forced The Hershey Trust to make significant governance changes that would affect any under the table actions that would lead to any undesirable outcome.

 

Milton Hershey would be proud to know that his ideals, his town, and his school continue to be much loved.  

 

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