Lujza Steam Mill Joint Stock Company

The history of the steam mills is intertwined with the history of the capital: although the steam mills were established before the unification of Buda, Pest and Óbuda in 1873, their development was influenced by the development of the capital and its economic role. The establishment of the steam mills was made possible by the favourable transport conditions created by the Danube steamship and the agricultural boom in the middle of the century, which resulted from the urbanisation of European cities. Population growth led to a greater demand for grain, which meant that there was also an adequate outlet for it. The succession of steam mills had the advantage of being steam-driven, allowing them to be sited freely, as they did not need water or wind to operate. However, the steam engine required a considerable amount of water to operate the steam mills, which is why they were built close to the Danube.

The so-called "high milling" method, which was widespread in Hungary, was as follows: the grain was first taken from the warehouse to the mill, where it was cleaned of major impurities and the husk in the milling machine. The task of the 'tarar' was to clean the wheat grain before it went to the wheat classifier, which was able to sift out the defective grains. The thresher was responsible for filtering out the kernels and the brushing machine for removing the dust. The last operation before milling was conditioning, during which water equivalent to 2-3% of the weight of the wheat grains was added to the wheat. This was followed by a resting period and then the cleaned wheat was subjected to repeated crushing to obtain a fine flour. To obtain a larger grain size, it was milled into flour using roller mills or roller pairs.

The Lujza-Gőzmalom Részvénytársaság was headed by a consortium led by the banking house Wahrmann and Fia, which in 1867 bought the Barber and Klusemann mill complex in Buda, built in 1854. The mill's founder, Mór Wahrmann, named the mill after his wife, Lujana Gold.

In the 1880s, the effects of increasing competition in the US were felt, and this can be seen in the change in the company's share price. In 1880, the steam mill made major improvements and modifications to the plant. It was mainly as a result of this that production costs were reduced and profits increased. By the middle of the decade, the problem of foreign competition had become increasingly acute and it became more and more difficult to sell Hungarian flour on the international market.

The turn of the century brought a change in the life of the mill. A closer relationship was established between the Lujza Steam Mill Joint Stock Company and the First Budapest Steam Mill Joint Stock Company. The First Budapest Steam Mill Joint Stock Company owned part of the shares of the Lujza Steam Mill Joint Stock Company and then bought the rest. Partly thanks to this, the mill was able to increase its production: from 600 000 mash/year at the beginning of the century, it had increased its output to 850 000 mash/year by the middle of the decade.

The construction of the grain elevator, started in 1906 and completed in 1907. In the same year, a social measure was taken: from then on, all years of service were taken into account when determining pension rights for former retired mill officials. On 26 August 1909, a machine broke down, forcing the mill to suspend grinding for ten weeks. In 1910, workers' strikes prevented the Budapest mills from effectively expanding their grinding capacity. This forced the mill to take a two-week break in July. By the end of the year, as a result of export difficulties, the Hungarian mills had built up their stocks, and in the first half of 1912 the mills were again closed down.

The First World War brought a fundamental change in the life of the mill. Grain and flour prices were capped by the state and in June 1915 the annual harvest was confiscated. The War Grain Stock Company and the Grain Centre were established. The supply contracts increased the supply of raw materials to the mills, so that from August 1915 production was in full day and night operation. As a result, the difficulties at the beginning of the decade intensified during the war, and production fell almost continuously until 1915.

After the First World War, a number of factors reduced the possibilities for competitive production. This was partly due to the loss of mills in the territories lost under the Treaty of Trianon and partly to the dramatic decline in the market for their absorption. Hungarian mills lost their remaining advantage over foreign competitors. The domestic absorption market has also shrunk significantly, and the lack of modernisation has led to a sharp decline in flour quality.

These difficulties led to the agony of the mill in the remaining two decades of the company's existence. The mill's flour and wheat warehouse burnt down on 18 October 1921. Presumably in connection with this, in 1926 it extended its business to include warrants. The importance of the company is shown by the fact that in that year, when the shareholder, the First Budapest Steam Mill Joint Stock Company, merged the Pesti Steam Mill, the Elizabeth Mill and the Pesti Molnars and Bakers Steam Mill Joint Stock Company, the company was a public warehouse business.

In the context of the economic crisis, the company could not be saved even by the shareholder, the First Budapest Steam Mill Joint Stock Company, and on 13 May 1936 the company was absorbed into the state. In parallel with the urban planning that was taking place at the time, the mill building and the railway tracks leading to it were demolished.

Sources

Erzsébet Juhász (1992):The Budapest Right Coast Circular Railway is (would be) one hundred years old. It would have been a hundred years ago. 32(4-6). 232-233.

Hungarian Statistical Yearbook 1906. 14. New stream, Budapest, 1907. 197.

Great Hungarian Compass 1880-1936.

Press material 1880-1936.

www.ilyenisvoltbudapest.hu

Date of foundation: 1868

Date of cessation: 1936

Founders: Mór Wahrmann

Securities issued:

Decisive leaders:

Main activity: cereal milling (wheat, barley, rye)

Main products are not set

Seats:

Locations are not set

Main milestones are not set

Author: Róbert Szabó