The Hershey Heritage

Milton S. Hershey is a real-life American hero, a true rags to riches story. He was a man who cared enough about others to give it all back to children and the community he loved. Milton S. Hershey was born on September 13, 1857, in an old fieldstone farmhouse near Hockersville, Pennsylvania. His great-grandparents, Isaac and Anna Hershey, had come to America from the German-speaking part of Switzerland. Milton Hershey’s family on both sides had been Mennonites for many generations. Although Milton was not a member of a Mennonite church himself, the qualities of his religious and family heritage made a deep impact upon him and remained with him throughout his life.

Milton’s parents, Henry and Fanny Hershey, moved often. By 1870, when he was not yet fourteen years old, Milton had attended six or seven different schools. These frequent relocations made school and childhood experiences very difficult for him.

After a brief try as a newspaper apprentice at age 14, Milton’s mother decided, “Milton oughtn’t to be spending his time with printing and newspapers ... he ought to be learning to make something - something that would bring him a good living.” Not long afterward, she paid a sum of money and signed papers apprenticing her son to Joseph A. Royer, a confectioner in Lancaster, Pennsylvania.

Milton was almost 19 when he took his dream for his own business to Philadelphia. It was here that he set up his first shop, making candy by night and selling it by day. After six years’ effort, however, he had to give it all up and ended owing his relatives hundreds of dollars.

Milton’s journey to success would be marked by more failures. He left Philadelphia for Denver, Colorado, to join his father, who was already there, in a silver mining venture.

Unfortunately, the silver boom had recently gone bust. For Milton, this left no alternative but to find a job, which he did, working for a candy maker. Here, he learned a lesson which proved to be invaluable—the use of fresh milk in making caramels. It seemed that fresh milk made caramels more chewy and delicious and also provided a longer shelf life. Milton would remember this lesson. Fresh milk would later become a hallmark of his now world-famous formula for chocolate.

From Denver, Milton traveled to New York City. New York at that time was the biggest candy market of them all. In New York, Milton Hershey tried to make his fortune manufacturing candy and cough drops. This time, he learned the importance of not depending upon others for the essential steps in the manufacturing process. But once again, the business collapsed.

Like the prodigal son, Milton Hershey returned home to Lancaster, Pennsylvania. Thanks to the support of an old employee, Harry Lebkicher, and additional financial support from his Aunt Mattie, Milton was able to buy a bag or two of sugar and rent a room in town. Once again, he started making candy by night and selling it by day. This was the start of the Lancaster Caramel Company, making confections he called “Crystal A” caramels. “Give them quality,” Milton Hershey said. “That’s the best kind of advertising in the world.” All the different confections were Milton Hershey’s own creations. He worked out the formulas for every one of them. He would take a caramel made by a competitor, chew it thoughtfully, and determine what it was made of. Then he set to work to improve on it, to give it a better flavor, better texture and more lasting quality.

Though his caramels were selling well and the business grew steadily, Milton Hershey felt that the market for caramels was a temporary one. “Caramels are just a fad,” he said, “but chocolate is a permanent thing.” He wanted to concentrate on making chocolate. So on August 10, 1900, Milton Hershey sold the Lancaster Caramel Company for $1 million. Hershey surrendered his Lancaster factory, the machinery, his formulas, and the “Crystal A” trademark. But he kept his right to make chocolate and all his chocolate-making machinery, and he rented a wing of the factory to continue making chocolate. At the time, milk chocolate was considered a luxury item - it was handmade, expensive and only sold in specialty shops. Milton Hershey was confident that he could not only mass-produce chocolate, but make it affordable for everybody.

Ground was broken for his new chocolate factory on March 2, 1903, at Derry Church (later to become part of Hershey). As the chocolate business grew, Mr. Hershey set about building a community where his employees could live independent lives, where they could be self-reliant and free, where they could own their own houses and buy where they pleased. The community he planned made provision for safety, health, education, recreation, numerous churches, schools, an inn, a bank and a store. Later, he added the park (1907), the hotel (1933) and the sports arena (1936).

Milton Hershey married Catherine (Kitty) Sweeney in 1898. Milton and Kitty never had children. Though supportive of Milton, Kitty never took an active interest in the business.

Sometime before 1909, Milton and Kitty realized their money was accumulating faster than they could spend it. Kitty suggested that they provide a home for boys who were unfortunate. Milton seized on the idea eagerly. Childhood security and good schooling he could never recover for himself, but this was an opportunity to secure them for other boys. On November 15, 1909, Milton and Catherine signed the document that deeded 486 acres of farm land to Hershey Trust Company as trustee “with the purpose of founding and endowing in perpetuity an institution to be known as Hershey Industrial School (later renamed Milton Hershey School) to be located in Derry Township for the benefit of orphan boys.” On November 13, 1918, Milton Hershey gifted Hershey Chocolate Company stock (valued at $60 million) to the trust. In addition to the Milton Hershey School Trust, Mr. Hershey also established two other trusts - one for the benefit of the Derry Township School District (a public school system) and another to the M.S. Hershey Foundation. The Hershey Theatre, Hershey Museum, Hershey Gardens and the Hershey Community Archives currently benefit from the Foundation’s support. Using these three trusts, Milton and Catherine Hershey dedicated their entire estate for the benefit of the children and community they loved.

Catherine Hershey died in 1915, just seventeen years after they were married in 1898. Milton Hershey remained a widower until his death on October 13, 1945. He is buried beside his beloved wife and his parents in the Hershey Cemetery.

Mr. Hershey’s legacy is one of:

Vision — having a dream and doggedly pursuing its realization;

Quality — providing value for the customer as the best form of advertising;

Risk — attainable rewards require acceptance of prudent risks;

Innovation — a commitment to do it better than the competition;

Caring — caring for customers, employees, the community and disadvantaged youth;

Work Ethic — there was and is no substitute for hard work!

Hershey Trust Company embraces the qualities and legacy of our founder! And as Mr. Hershey said so many years ago, delivering value to customers is the best kind of advertising. During a client survey in May, 2000, 87% of our responding clients said they would refer Hershey Trust Company to their family, friends and associates for asset management and trust services. And our commitment and caring for our clients, our employees, our community and disadvantaged youth remains as strong as ever!