Lipót Aschner

One of the most successful Hungarian managers of the first half of the 20th century, he was the CEO of the United Incandescent Lamps and Electricity Company (Tungsram).

 

 

His life

 

He was born on 27 January 1872 in Assakürt, Nyitra County (now Slovakia), the second of nine children of Ármin Aschner, a tavern-keeper, and Emma Wertheimer. Due to the family's financial situation, he completed only 4 civics and then a commercial apprenticeship. He started working at the age of 15, working for several companies, e.g. Rimamurány-Salgótarján Ironworks or Tausig J. and Sons, Bratislava.

In 1892, he joined Tungsram's predecessor company, the Electric Light Bulb Factory Ltd, as an apprentice. He held progressively higher positions in the United Electricity Co. and then United Filament and Electricity Co. General Manager from 1921, General Manager and Vice President from 1931 to 1947.

He married Jolán Czettel in September 1901. Their son Pál Aschner, who was a member of the Hungarian Davis Cup team and won the Hungarian tennis title as a player for UTE, reached adulthood. From 1939 Pál was director of the Neményi Brothers Paper Factory Rt. in Csepel, which was owned by Tungsram, and from 1942 he was a member of the board and managing director. He emigrated with his family in 1956.[1]

He was responsible for the rescue of Tungsram's foreign companies into British and then Swiss holdings, but he himself did not flee abroad at a time of rising anti-Semitism. On 19 March 1944, the first day of the German occupation of the country, he was deported along with many of the country's economic, political and cultural leaders to Mauthausen. In December 1944, Tungsram ransomed him from the concentration camp for 100,000 Swiss francs.[2] In Geneva, while restoring his health, he was in contact with Tungsram's foreign factories and sales representatives, assisted in the blacklisting of Tungsram and some of its subsidiaries, and restored their commercial relations.[3] At the end of May 1947, he was allowed to return home, but his person was already serving the nationalisation of Tungsram. He served as vice-president of the United Glow until his death in January 1952, but was no longer able to exercise any real power.[4]

 

 Professional activity:At the head of Tungsram

 

His work focused on the continuous modernisation of Tungsram's product range and production technology, and the further development of its international relations. During his tenure as CEO, Tungsram became the leading company in the Hungarian low-current electrical engineering industry, one of the country's most important convertible export companies during the Great Depression and later during the Second World War.

Aschner's language skills (German, Russian, English), his great work ethic, diligence and excellent organisational skills helped him to excel. He was quick to recognise the importance of up-to-date market information, for example, his data on the market position of competitors improved the company's negotiating position at the time of the formation of the first international light bulb cartel. During his time as CEO, he concentrated the company's strengths on a few products (specialisation) and continued to build a vertical production and sales chain.

Of decisive importance for the future of the company was Aschner's mature realisation, based on his experience in the industry, that Tungsram would only be able to remain competitive in the long term if it placed product and production development on a solid foundation. Ignác Pfeifer, a former professor in the Department of Chemical Technology at the József Nádor University of Technology and Economics (1912-1920), organised a team of excellent scientists and engineers, and Aschner defended the research laboratory's budget against some members of the board of directors even during the Great Depression. Dr. Zoltán Bay, professor of theoretical physics at the University of Szeged, was invited to succeed Pfeifer as head of the research group in 1936 and was given permission to continue purely scientific research and two collaborators.[5] As a result of Aschner's decision, at the end of 1936 Tungsram offered 300,000 forints to the University of Technology for the establishment of a department and institute to support research in nuclear physics.[6] Zoltán Bay was appointed by the university to head the department, which was established in 1938, and he worked as a researcher and teacher in parallel with the Tungsram research laboratory.

Aschner sought to deepen relations with the leading American companies in the industry (General Electric, ITT/ISEC, RCA), thus strengthening Tungsram's position vis-à-vis its European competitors. He was deeply influenced by his contacts in the US, including a trip in 1929 to visit the General Electric (GE) and Ford plants. In particular, he cited the wide-ranging technical knowledge of the managers of American companies, the 'large-scale and standardised organisation', the speed and accuracy of statistics in private and public administration, and the support given by the administration to private economic operators as examples to be followed. Describing his experience of other controversial economic policy issues in Hungary, he recommended that all those in positions of responsibility in the private and public sectors should study the US situation on the ground.[7] GE's equity stake in Tungsram (1921) paved the way for the modernisation of Tungsram's manufacturing technology, which was based on the licensed production of GE's automatic lamp-making equipment.[8]

 

Professional activities in other companies

 

He was a board member of several companies with interests in Tungsram. For example, he was a member of the board of Budafok Electricity Ltd. from 1904 to 1909, and held the same position at Clara Losonc Electricity Ltd. from 1906 to 1909, at Fast Telegraph Ltd. from 1906 to 1915, at International Tungsten Lamp Ltd. from 1906 to 1913 and from 1916 to 1926, until the liquidation of the company., at the Hungarian glassworks of József Inwald Ltd. between 1915-1927. He resigned from the board of directors of the Tokod Glass Factory Ltd. in 1937, from the board of directors of the Neményi Brothers Paper Factory Ltd. in 1941, after the company was converted into a joint-stock company in 1923, and from the board of directors of the Hydoxigen gas separator, oxygen, nitrogen, hydrogen and other gases producer Ltd. in 1918, and from 1936 to March 1944, from the Ajka coal mine. From 1928 to 1934 he was a member of the board of directors of Standard Electricity Ltd., which was formed from the telegraph, telephone and radio division of Tungsram, and from 1928 to 1932 he was also its general manager. From 1922 to 1928 he was a member of the Supervisory Board of the Hungarian Commercial Bank of Pest, and from 1937 until the bank's nationalisation.[9]

 

Sports sponsorship

 

Certainly the example of GE and Tungsram's main European competitors (Philips, Osram, Telefunken) encouraged Aschner to build up a healthy working environment for its employees (with decent changing rooms and canteens, bright, clean workplaces, support for sports) and a system of further training. It has encouraged sports and recreation for its employees, thus enabling them to work more efficiently, by providing tennis and skating rinks, a sports centre, a swimming pool and a recreation park.[10] In 1930, a culture house was built on the factory site, which housed a sports hall, a factory kitchen and restaurant for 1500 people, and the factory library. The restaurant was the venue for performances by the factory drama group, social events such as the traditional Tungsram ball, training courses for employees and courses for radio dealers and fitters.[11]

In 1911 he founded the Ampère (later Tungsram) Sports Club for Tungsram employees. From 1895 he was the secretary of the UTE (Újpest Gymnastics Association), and between 1921 and 1934 he was its president. During his presidency, the football stadium on Megyeri Road, designed by Alfréd Hajós, was completed, with bicycle, throwing and jumping tracks, and in 1929-30 the Tungsram bathing and sports complex was built, which was also used by UTE athletes.[12] In 1937, as president of the Hungarian National Football League, he successfully organised a social fundraising campaign to support the participation of clubs in the World Cup.[13]

 

Public activities

 

It has not taken a political role. Its social functions were closely linked to the development of the electrotechnical industry and the representation of its interests. A Hungarian Electrotechnical Association (MEE) for some four decades. In 1913, he was elected a member of the Association's Factory and Trade Section, together with his brother David. Lipót Aschner was a member of the MEE's Board of Trustees from 1913 to 1917, re-elected in 1924 and 1927, and elected co-chairman in 1918. In 1932 he resigned his membership of the Electoral Committee.[14] A National Association of Hungarian Industrialists (GYOSZ) member of the executive board of directors between 1921-1943, member of the GYOSZ member organisation between 1931-1940 National Association of Hungarian Ironworks and Machine Factoriesvice-presidents of.[15] Organised on the basis of Article 33 of Act VII of 1936. National Industry Council, he was a member of the Department of the Manufacturing Industry of the Minister of Trade and the Minister of Welfare and Labour.[16] In 1931, on the initiative of the Ministry of Finance Hungarian Warranty Bank alleviated the liquidity problems of financial institutions by lending to support the stability of the banking system, which was shaken by the global economic crisis. Eight members of the Syndicate Committee represented the financial institutions and eight members of the Syndicate Committee represented the industrial companies, one of whom was Lipót Aschner, nominated by the GYOSZ.[17]

  

In memory of

 

Like all outstanding leaders, Aschner's person was not without controversy. On one side of the coin was the image of a true self-made man, "one of the most powerful pillars of Hungarian economic life", who "had beaten Tungsram to world success", "who "builds even when he destroys".[18] However, some articles at the time accused Tungsram and Asscher of taking over the Just light bulb company, thus eliminating jobs and driving down prices through cartels.[19] According to Zoltán Bay, Aschner was happy to spend his fortune on great projects, such as the founding of the nuclear physics department at the University of Technology or the creation of sports facilities, "but he was also stubbornly attached to pennies in the factory and in his private life".[20]

His memory is commemorated by a memorial plaque in Újpest and a bust erected on Aschner Lipót Square on the 150th anniversary of his birth, 27 January 2022. The Lipót Aschner Foundation, established in 1989 by Tungsram Ltd. and Magyar Hitel Bank Rt., awarded the Lipót Aschner Prize, one of the most prestigious managerial awards after the regime change.

 

Notes:

 

[1] Rojkó Annamária, Episodes from the life of Lipót Aschner 14. Újpest Local Historical Bulletin (ÚHÉ) 18 (2011) 3, pp. 18-20.

[2] Bay 1990, p. 30-31.; Hungarian National Archives (MNL) Z601_294_1053 Based on a letter from Neufina AG, Glarus, dated 08.09.1954, addressed to Lipóth Aschner, he granted him a loan of 100,000 Swiss francs on 19.12.1944.

[3] E.g. MNL Z601_24_174 Letter from Lipót Aschner to his wife. Hotel Richmond, Geneva, 20.06.1945.

[4] Annamária Rojkó, Episodes from the life of Lipót Aschner. Part 10: An unexpected turn. ÚTÉ 17 (2010) 3, pp. 19-20. http://www.ujpest.hu/galeria/intezmenyek/helytorteneti_ertesito/uhe-201003.pdf

[5] Conversation with Zoltán Bay. Interview by Annamária Inzelt. Reality 32 (1989) 2, 80-92. o.

[6] MNL Z602_1_7 "Foundation of the United Incandescent Lamp and Electricity Co. for the University Department of Nuclear Physics".

[7]. A presentation by Lipót Aschner on his experiences in the US. Hungarian manufacturing industry 20 (01.12.1929) 12, pp. 7-8; Lipót Aschner's interesting lecture on American industry. Pest Stock Exchange 10 (1929. 12. 12.), 21. o.

[8] Koroknai 2004, pp. 30-31.

[9] The data in this paragraph are taken from the relevant volumes of the Great Hungarian Compass, Sándor Galánthai Nagy (ed.), Mihók's Hungarian Compass 1904-1905 XXXII. évf. Budapest, 1905. Budapest, 1944; Rojkó Annamária, Epizódok Aschner Lipót életéből, Teil 9. ÚHÉ 17 (June 2010) 2, pp. 20-22. http://www.ujpest.hu/galeria/intezmenyek/helytorteneti_ertesito/uhe-201002.pdf

[10] See Ottó Sugár, He Who Builds Even When Destroyed. Honi Ipar 29 (1936) 24, p. 10; Aga, Lipót Aschner, CEO, talks about himself as a fan, Sabaria and Hungaria, the audience in Pest and practical sports social philosophy. National Sport 22 (1930. 11. 16.) 224, 7. o.

[11] United Glow and Standard Ball. Pesti Napló 82 (27.01.1931) 21, p. 10; Radio course in the Tungsram Palace for merchants and craftsmen. Newspaper 7 (1931. 01. 15.) 11, 10. o.

[12] Rojkó 2011, pp. 80-94.

[13] Ferencváros's tribute to Lipót Aschner. Estonian Kurir 16 (1938. 06. 01.) 122, 8. o.

[14] Association news from the Electrical engineering c. in the relevant issues: 3 (15.05.1910) 10, p. 141; 6 (01.06.1913) 11, p. 169; 7 (01.06.1914) 11, p. 172; 7 (24.12.1914) 18, p. 275; 10 (01.12.1917) 23, p. 191; 11 (15.12.1918) 23-24, p. 176, 19 (15/09/1926) 17-18, p. 119; 21 (15/10/1928) 19-20, p. 194; 26 (01/08/1933) 15-18, p. 187-188; https://www.mee.hu/files/files/ssd2/ET/index.php

[15] Nagy Sándor Galánthai Nagy (ed.), Nagy magyar Compass 1922-1924 (49/2), p. 1334 - Nagy magyar Compass 1943-1944 (67/2), p. 68;. General Assembly of the Association. Hungarian manufacturing industry 11 (01.06.1921) 11-12, p. 12; The machinery industry expects the economy to improve. Budapesti Hírlap 51 (1931. 07. 05.) 150, 27. o.

[16] Personal news. Electrical engineering 29 (01.12.1936) 23-24, p. 239; MNL documents Z601_27_192.

[17] https://mek.oszk.hu/02100/02185/html/371.html; Documents of MNL Z601_27_190 lot.

[18] Miklós Vécsey, One Hundred Precious Hungarians. Hungária Hírlapnyomda, Budapest, 1931, pp. 24-25; Újpest's Great Day. Sports programme. The official gazette of the Hungarian Football Association 8 (1928. 03. 04.) 5, p. 1; Ottó Sugár, Aki rubolva is épít. Honi Ipar 29 (1936) 24, 10. o.

[19] A national uproar over the incandescent lamp company's product line. Sosa 7 (17.07.1925) 158, p. 14; Hungarian industrial tragedy. Hungarian Finance 44 (12.11.1924) 91, pp. 1-2; Why must paper prices rise!? Country World 58 (1937. 05. 03.) 11-12, 2. o.

[20] Bay 1990, p. 206-207.

 

Sources:

 

Zoltán Bay, Life is stronger. Csokonai/Püski, Debrecen/Budapest, 1990.

Mária Hidvégi, Connecting to the world market. Hungary's leading electrical engineering companies 1867-1949. Vandenhoeck & Ruprecht, Göttingen, 2016.

Ákos Koroknai (ed.), The History of Tungsram Ltd. 1896-1996, Aschner Lipót Foundation, Budapest, 2004.

Géza Kadlecovits (ed.), Lipót Aschner Foundation, 1989-2003. Trustees of the Lipót Aschner Foundation, Budapest, 2003.

Annamária Rojkó, Who was ahead of his time. Kossuth Publishing House, Budapest, 2011.