Charles Koch Biography

In the year, a book was seen, which 30 years later, the Americans named the second after the Bible on the scale of influence on their lives. We are talking about the novel by Ain Rand “Atlant straightened their shoulders”, who sang people of the case - inventors and industrialists who opposed state intervention in the economy. In the days when Atlant went on sale, Charles de Ganamle Koch graduated from his studies at the Massachusetts Technological Institute, where he received several degrees: a bachelor and a master of mechanical engineering, as well as a master of chemical engineering.

The young engineer was not only to become a great fan of the work of Ain Rand and the economic views of von Mizes, but also to devote all his life to the implementation of principles set forth in the book. Perhaps such conviction was due to the fact that Charles's father, Fred Chase Koch, as if he had come from the pages of this novel. The company provided the installation and repair of technological equipment for oil refineries.

Two years later, companions modernized the installation of thermal cracking - the process of obtaining gasoline from fuel oil. The installation of Winkler - Koch was much more compact and cheaper than the existing ones - even the smallest refineries, previously forced to sell fuel oil for the nothing industry giants, could use it. The reaction of the giants struck Koch and his partners: in the next five years, 44 was submitted to Winkler-Koch Engineering!

Having lost the case in the first instance, Winkler-Koch Engineering failed and was declared bankrupt. Subsequently, it was found that the judge who “sentenced” Koch to a ban on the implementation of the cracking installations was bribed. No, he did not at all become a Bolshevik and political emigrant. The fact is that in the year Winkler-Koch Engineering has entered into an agreement with the Soviet government for the supply of their attitudes.

The court decision prohibiting the implementation of cracking installations was not an obstacle: the USSR did not recognize foreign patents and decisions of American courts. Such a gift of fate could make Koch as a fan of the Soviet Union. But two circumstances prevented this. Firstly, Soviet engineers soon figured out the installation of its installations, and the USSR began to produce them on their own, without paying Koch not a penny for authorship: in this territory, American patents were not protected.

And secondly, Fred Koch saw with his own eyes at the cost of industrialization and what means of the Bolsheviks acted. In front of the eyes of the entrepreneur, the “cleaning” fell under the “cleaning”, and then his Soviet friends disappeared completely. The Soviet government inspired him with such horror and disgust that even the American press subsequently called the anti -communist views of Koch paranoid.

And when in Mred Koch died of a heart attack, his son Charles led the company, renaming it in honor of his father: now, today it is called Koch Industries. It entered the twenty major companies in the world and became one of the two largest private companies in the United States. Brother at the brother “Do not believe the Communists, do not borrow and do not sell the family business,” - three “Fred Koch Rules” have been learned by four sons since childhood.

The multi -billion dollar business has become for the Koch brothers and both. In m, 13 years after the death of his father, a court litigation began between them, stretching for two decades and having forever split the family. But I'm in war. " I would like to see Freddy's castles, and I feel deceived because I can’t rejoice at their successes and say: “They are my brothers.” Charles and Bill Kochi do not talk since the year.

They did not say a word to each other even at the funeral of their mother, and saw from that day only in the courtroom. Confessing the harsh, Puritan views, Koch Sr. was worried so that wealth would not spoil his sons, would not turn into spoiled "members of country clubs." Boys from an early age were busy with work, spending the summer holidays on a family ranch. Subsequently, Charles said that Freddy, his elder brother, once had a nervous breakdown from hard work in the ranch.

10 years later, in the town of Whitita, where Kochi lived, there was talk that Freddy was gay. Soon, the aging father accused his first -born and successor of theft of several hundred dollars and kicked out, saying that he did not want to see and deprives the inheritance anymore. So the "law of originalness" passed to Charles, who, too, by that time had been expelled from the family for many years.

Family of Kochi, the end of the xg. Bill and Frederick are sitting, Charles and David are standing. Charles turned 11 when a family psychologist said that his presence creates problems for 6-year-old Bill: for some reason, Charles played only with David and ignored his twin brother. Charles was sent to a boarding school in Arizona. When a few years later Charles was expelled from the boarding school for drinking beer, his father did not allow him to return home and sent him to live with relatives in Texas.

Nevertheless, Charles, and followed by David and Bill in the footsteps of his father and received diplomas of chemical engineers in the Massachusetsky technological.In M, after the summer “link” and the expulsion of his older brother, Charles returned to his home: his father called him to transfer the reins of the Board of the family business. If you do not do it, you will be useless.

You will disappoint me. " Charles did not disappoint. In Moch Sr., he died of a heart attack, and a year later a new head of the company, renaming her father in Koch Industries, made the first risky absorption, bringing the family business to new industry markets. David and Bill Kochi in a student basketball team. The fear of the debts of Koch Sr. was so great that in the last years of his life he deduced all the profit from the business so that the children had something to pay inheritance taxes.

As a father, Charles Koch was an engineer, but could not boast of an invention of a global scale. He decided to go down in history due to achievements in business. He worked daily for 12 hours in the office and then several hours of the house. Charles made even his future wife on the phone, and when she agreed, she listened for a long time how he clicks on a cross -line calendar to find a free day for the wedding.

A year after the occupation of the main office of the company, Charles started a fateful deal for the business. But, bless the Lord [Marshall] heart, he trusted me. " The purchase of Great Northwern Oil gave impetus to the rapid development of Kochi’s business, taking the company to the markets of polymers, synthetic fibers and the trade in raw materials.

But from this deal in the family, disagreements began, which soon almost destroyed the Koch Industries. The founder of the company Koch-Sr. was a fundamental opponent of any collective property, calling it a foot that communism sticks into your door. He single -handedly own his business, avoiding thoughts about attracting third -party investors. And even more so share capital.

Therefore, Charles needed his whole gift of belief to get the consent to the sale of a share of business to a stranger Marshall. The next idea of ​​Charles Koch met even more family resistance. Over the next few years, Koch Industries have grown by once. But Bill, receiving several million dollars a year by dividends, categorically objected. And Charles, meanwhile, uses the company's aircraft.

” The vote of the Marshall minoritarian, who, as a co -owner of Koch Industries, was decisive - Charles supported. By this time, both Bill and David worked at Koch Industries. Freddy, having received Harvard's diploma in the field of art, did not take part in the company's affairs, but invariably supported Bill’s struggle with Charles. Bill made Freddie an ally, saying that it was Charles who “opened his eyes” to his father to his homosexuality for the sake of seizing power in the company Charles himself categorically denies.

In turn, Charles more and more openly made a complaint to Bill as an employee: “He could not even get to work in time: he could not get out of bed.” Bill was allowed to lead the coal direction in the company, but he failed the work. Bill replied to the brothers' claims that he was depressed and that he had no sufficient experience to complete the work that the brothers entrusted to him.

He later asked Charles and David to appoint him the director of corporate development responsible for acquisition. They were against, but in the end they surrendered. " The conflict was growing implicitly, and on M, on the eve of thanksgiving, Bill attacked the brothers. With the support of Freddy and the group of minority shareholders, Bill initiated an extraordinary meeting of the board of directors to remove Charles and David from the company management.

David learned about the plans of his brother-twin a few days before the meeting and managed to drag a few votes to his side. The Council voted to fire Bill. After that, Bill sued two brothers in court, accusing them of an unscrupulous leadership of the company. The brothers responded with a oncoming claim for slander. Bill attracted the business bank Goldman Sachs.

In the year, Bill, Frederick Kochi and several small shareholders sold their shares to Charles and David for more than a billion. He immediately founded the company Oxbow Corp. But already 2 years after the deal with the brothers, Bill's delight from her was noticeably spoiled. He filed a lawsuit - and lost. After that, the claims from Bill were constantly. He sued with the charity funds of the brothers and mother, initiated civil lawsuits for evading the brothers from the payment of income tax.

And he played over and over again.

In terms of claims, he was supported by the elder brother of Freddy. To search for compromising evidence on Koch Industries, Bill hired detectives. By the year, they collected evidence that the company is underpaid for oil obtained in the territory of the Indians. Bill transmitted the collected information to the Senate Committee, the Great Federal Jury and the Ministry of Justice. By the beginning of the investigation, Bill hoped that it would cost Charles of the reputation, and Koch Industries - a billionth fine.

However, the essence of the claim was the nuances of the error assessment when calculating the cost of oil produced, and the process was delayed for years.George Abla, a friend of Charles, said that as soon as someone mentioned Bill’s name in the company, Charles instantly gloomy, and his wife Liz almost began to cry. Perennial barren litigation was also exhausted by Bill. And then he began to recall that Charles mocked him when he was a child, and that his mother did not love him.

George Abla believes that the cause of the conflict is completely different. I think Billy felt deceived because he was thrown before he graduated from college. There is no way to punish his father, so he punishes Charles. ”