J.R. Simplot, agribusiness giant, dies in Idaho
BOISE, Idaho - J.R. Simplot left home in 1923 at age 14 with four gold coins given to him by his mother. He ended his life as the spud king of America and one of the nation's richest men.
...
In 1980, at age 71, Simplot took a gamble on the next generation of businessmen, giving Ward and Joe Parkinson $1 million for 40 percent of what would become computer chip maker Micron Technology Inc. Over the years, he pumped in $20 million more to help Micron build its first manufacturing plant and to stay afloat. Micron went on to become a major producer of DRAM memory chips, which are used to store information in personal computers.
Born John Richard Simplot in Dubuque, Iowa, he was raised with five siblings on a hardscrabble homestead in Declo in south-central Idaho.
In 1923, he left home with four $20 gold coins and paid $1 a day for room and board at Declo's only hotel. As a shrewd young businessman, Simplot bought interest-bearing scrip paid to teachers who also were boarding there for 50 cents on the dollar.
He used it as for collateral on a bank loan to buy 600 hogs at $1 each. When pork prices jumped the next year, he brought some rare fat hogs to market for a whopping $7,500.
That was Simplot's stake for the potato business. He leased land and from an early partner learned to plant certified seed, not cull potatoes as was common then. Idaho's dominance in potatoes grew with the innovation.
Simplot bought an early electric potato sorter and by 1940 had bought or built 33 potato warehouses along the rich Snake River plains from Idaho Falls to Vale, Ore.
A chance encounter with a Chicago businessman led Simplot into the onion-drying business in Caldwell in 1941. He made $500,000 the first year and soon was supplying much of the dried potatoes and vegetables consumed by U.S. troops during World War II.
The headstrong young man then started buying ranches, cattle and timberland. Taking notice of the wartime shortage of fertilizer, he bought phosphate reserves and built a fertilizer production plant at Pocatello.
After the war, his food production business expanded into freezing and canning, developing the product that would become the company's mainstay: the frozen french fry.
Simplot struck a deal with McDonald's Corp. founder Ray Kroc, and his fry business grew with Americans' love for fast food.
More:
http://news.yahoo.com/s/ap/20080526/ap_on_re_us/obit_simplot
Printer-friendly format
Email this thread to a friend
Bookmark this thread
(1000+ posts)
Send PM |
Profile |
Ignore
