Alfred I Du Pont

 

Alfred I Du Pont

Born in 1864 during the height of the Civil War, Alfred was brought into a family that was accumulating wealth has its Gun Powder Business grew horizontally to incorporate new products and chemicals. Alfred would eventually lead the company along with his two cousins through a period of quick vertical integration and growth. He would eventually leave the company losing a large portion of his fortune until he rebounded by investing in Florida real estate. Dying a multimillionaire in 1935,

Alfreds family had roots in a humble French chemist who in the early 1800s found American gunpowder lacking in consistency and quality began his own company developing gunpower and producing chemicals. The company was turned over to Eugen Dupont/s leadership, Alfred’s uncle, in the late 19^th century. Eugene turned the company towards the manufacturing of not only fun powder but also dynamite, nitroglycerin and lacquer.

Alfred was orphaned at an early age, his mother dying after a bout of hysteria and his father from tuberculous. He was sent to boarding school and separated from his sisters. After finishing at Phillips Andover in Massachusetts he went to the Massachusetts Institute of Technology (MIT) where he was a roommate of his cousin and future business partner T Coleman. By 1884 he left MIT to begin to work at the company business. Much like the then current leader of the company his uncle Euge, he started as a simple lab assistant but moved up the company’s ladder. He was hands on with the development of chemical products. His research led to the development of over 200 patents for Dupont.

Alfred biggest move came in 1902 when Eugene died, and the company was passed to T Coleman, Pierre, and Alfred. Even though Alfred had spent years working for Du Pont he and his cousins did not have the assets to purchase the company outright from the senior partners in 1902. For 700 dollars apiece and a promissory note worth 12 million dollars and 1/3 of the company’s shares the three cousins were able to purchase the company. Alfred direct role in operations led to an expansion of the gunpowder production and the business. Alfreds financial aspects turned around quickly. By the time he divorced his with in 1906 he was able to provide them with 24000 a year in support.

Coleman became sick inn 1914 and left the company. Pierre and Alfred took part in a struggle over the company’s future. This was an essential point in the company history as the growth of World War One led to the need for Dupont products. Dupont’s shares exploded in price but Coleman, seeking money after his departure sold 77000 shares mainly to Pierre and other family members. Pierre then in turn owned abut sixty percent of Dupont. Lawsuits ensued between Alfred and Pierre.

Alfred was pushed out of the family business taking is money to invest in newspapers and other companies. In 1920 Alfred was nearly bankrupt, he was deaf, partially blind, his second wife had left him, and his business prospects seemed to be at an end. After the extended family disputes Alfred moved to Florida where he started making small land and real estate investments while also gaining an interest in local banks. In 1929 he put up his own money to keep his banks afloat during the bank runs. By surviving that first run he was able to acquire six more regional banks. With his re-acquired wealth he turned to philanthropic activities supporting his new states residents through the difficulty of the depression. He died in 1935 leaving several children and a new wife Jessie Ball.

 

At the time of his death the estate was valued at around 56 million the equivalent of almost ten billion dollars today. The estate paid 30 million in taxes after his death and the 26 million remaining was dispersed to a trust. The trust exists today and is valued over 5 billion dollars.

 

 

Sources

Chandler, Alfred D., and Bruce Mazlish, eds. Leviathans: Multinational Corporations and the New Global History. Cambridge: Cambridge University Press, 2005.

Chandler, Alfred Dupont. Shaping the Industrial Century : The Remarkable Story of the Evolution of the Modern Chemical and Pharmaceutical Industries Cambridge, MA: Harvard University Press, 2009.

Hewlett, Richard Greening. Jessie Ball DuPont. Gainesville: University Press of Florida, 1992.

Hersch, Valerie. "Hostage to no One: The Du Pont Fortune Notwithstanding, Ed Ball's Tenacity, Penny-Pinching and Love of "the Game" made Him Florida's most Influential Tycoon." Florida Trend, 12, 1993.

Wall, Joseph Frazier. Alfred I. Du Pont : the Man and His Family New York: Oxford University Press, 1990.