Fred Koch and the USSR

[PC LOAD LETTER]

Does anyone have any information on how Fred Koch, out of business and unable to compete in the US, was able to begin his fortune in the USSR circa 1929? How exactly did this happen?

All I seem to be able to find on my own are articles deifying the Koch family.

[Grenzer]

The Koch empire's fortune began in the USSR? I hadn't heard about that. Extremely ironic, perhaps even appropriate.

After doing some searching I can't find anything substantial.

[Prometeo liberado]

Wikipedia kinda gives the impression that he invented the "cracking" method of turning oil into gas, so the soviets purchased his services for $5 million (american). As to how he got in touch with them or vice versa I couldn't tell you?

[PC LOAD LETTER]

The Koch empire's fortune began in the USSR? I hadn't heard about that. Extremely ironic, perhaps even appropriate.

After doing some searching I can't find anything substantial.
Same here. I find references to it, but nothing solid.

Wikipedia kinda gives the impression that he invented the "cracking" method of turning oil into gas, so the soviets purchased his services for $5 million (american). As to how he got in touch with them or vice versa I couldn't tell you?
From what I understand (and this could be distorted or incorrect), they paid him to train their engineers and techs, but the facilities in the USSR were built a couple years before that.

At least, that's my understanding. I can't find any concrete sources. :confused:

[commieathighnoon]

Koch wasn't just anybody. He was a wiz-kid chemical engineer. He developed a revolutionizing "cracking" method in petrochemicals, but his patent was fought by established interests in oh-so-competitive-and-dynamic-Western-capitalism-par-excellence, oh, no siree. Instead he shopped his wares in lieu of competitive marketplaces and a major world economic depression, in the USSR. He was there for years actually. He wrote a self-righteous memoir (apparently un-ironically considering the sacrifices by peasants and workers to realize what became his nascent fortune) about how awful Stalin was to Russians. His sons are the libertarian financiers of libertarian financiers, silverspoon, from the capital gains on Uncle Joe's principal.

[thriller]

Most answers here are correct from my understanding. The soviets offered him opportunity to try his ideas, and the US didn't, so he went over there are collected a fortune. With examples like this (people becoming filthy rich in the USSR under Stalin) I still don't see how anyone can argue it was communist :/

[Grenzer]

Most answers here are correct from my understanding. The soviets offered him opportunity to try his ideas, and the US didn't, so he went over there are collected a fortune. With examples like this (people becoming filthy rich in the USSR under Stalin) I still don't see how anyone can argue it was communist :/

Dogma and wishful thinking. Though we don't want to start going down that path in this thread. Seems like there is a new tendency war over Stalin every day.

To be perfectly fair, I don't think you can equate the use of foreign services to allowing foreign capital investment. They might have allowed that as well, but I'm not really sure.

[thriller]

Dogma and wishful thinking. Though we don't want to start going down that path in this thread. Seems like there is a new tendency war over Stalin every day.

To be perfectly fair, I don't think you can equate the use of foreign services to allowing foreign capital investment. They might have allowed that as well, but I'm not really sure.

You know what?

Yeah that's true.

As for the topic at hand I should note that these are articles online and radio shows that I have my info from.

[Prometeo liberado]

I heard "Stalinist tendency war" and got here as soon as I could!

j/k You may have something here as far as who reached out to whom. The Economist had an article years ago about instances in which the Soviet Union had to contract out to foreign capitalist. I believe that Armand Hammer was one such person. I can't seem to find the article though.:(