Daniel K. Ludwig
Encyclopedia
Daniel Keith Ludwig was a US shipping magnate and billionaire
. Even though he was one of the wealthiest men of his day, his name was little known. Throughout his business life, he maintained a low profile and ceased speaking to the press in the 1950s.
Ludwig has the distinction of being #1 on the first Forbes 400
Richest Americans list published in 1982.
to live with an uncle and aunt. Ludwig's mother was left alone in South Haven without any means of support and her fate was unknown.
Ludwig's first venture into shipping was at the age of 9, when he salvaged a 26 feet (8 m) boat. He left school at the end of eighth grade to work in various shipping related jobs, directly learning such trades as machinist
, marine engineer, and ship handler. In Port Arthur, he sold supplies to sailing ships and steamers. He returned to Michigan to take a job at a marine engine plant, which sent him to the Pacific Northwest and Alaska.
around the Great Lakes
. There are rumors of his engaging in rum running during prohibition.
In the 1930s, he developed a novel approach to financing further expansion, by borrowing the construction cost of tankers and using pre-agreed charters as collateral. His National Bulk Carriers became one of the largest American shipping companies, and he eventually owned about 60 vessels. His shipyards used welding
instead of riveting — which saved time during World War II
, when there was huge demand for new ships. After the war, his ships transported oil around the world and he pioneered the construction and use of the new oil supertankers
in the 1950s.
Ludwig diversified into an oil refinery, banking, cattle ranching, insurance
, and real estate
. He invested in various mining
and exploration projects in Americas, Africa, Australia and the Middle East. He created a chain of luxury hotels in Mexico, Bermuda and the Bahamas, and developed Westlake Village, California
.
In 1971, using his foreign assets, Ludwig founded the Ludwig Institute for Cancer Research
in Switzerland, which became his primary interest in old age. Since his death, it has distributed over a billion dollars around the world for cancer research.
Several months later, Ludwig married Gertrude Virginia Higgins, a widow, (January 13, 1897 to April 8, 1993), who had three children from a previous marriage. Gertrude, nicknamed "Ginger", would remain married to Ludwig until his death. They lived in the penthouse at the Park Cinq
in Manhattan.
acquired the Xanadu Princess in 1973, and lived there for two years prior to his death.
, Ludwig founded Exportadora de Sal, SA
, which became the "Largest Salt Company in the World", at the Guerrero Negro
Lagoon. As the area was largely uninhabited, the necessary workers and materials were sent to build a large, new town in the municipality of Mulegé
. Here, the saltworks were established by pumping the brine to the surface and allowing it to dry. In 1973, with rumors that the Mexican Government would nationalize the company, Ludwig sold his interest in Exportadora de Sal, SA to Mitsubishi
, who now own 49% with the Mexican government holding the controlling interest.
, Ludwig bought 10000 acres (40.5 km²) of land in Dolega
, in the interior of Panama. He had all the land cleared and built roads and bridges. 800,000 Velencia orange trees were planted and full production was expected in 1967. It was considered the largest privately owned venture of its kind in the world. Years later it would fall into government hands. In a New York Times article, "Auction Fails in Panama," May 27, 1991, Citricos de Chriqui, SA failed to attract any bidders, the minimum asking price was 13.9 million.
. His agricultural ventures on that land, called the Jari project
, ultimately proved much less successful than his earlier shipping ventures. Large losses and mounting criticism of his business practices led him to hand over the project to Brazilian investors in 1981.
Billionaire
A billionaire, in countries that use the short scale number naming system, is a person who has a net worth of at least one billion units of a given currency, usually the United States dollar, Euro, or Pound sterling. Forbes magazine updates a complete list of U.S. dollar billionaires around the...
. Even though he was one of the wealthiest men of his day, his name was little known. Throughout his business life, he maintained a low profile and ceased speaking to the press in the 1950s.
Ludwig has the distinction of being #1 on the first Forbes 400
Forbes 400
The Forbes 400 or 400 Richest Americans is a list published by Forbes Magazine magazine of the wealthiest 400 Americans, ranked by net worth. The list is published annually in September, and 2010 marks the 29th issue. The 400 was started by Malcom Forbes in 1982 and treats those in the list like...
Richest Americans list published in 1982.
Childhood
Ludwig's parents were Daniel F. Ludwig (1873–1960), nicknamed "Lud", and Flora Belle Ludwig (1875–1961). They separated when young Daniel was 15, and he was taken, by his father, to Port Arthur, TexasPort Arthur, Texas
-Demographics:As of the 2000 census, there were 57,755 people, 21,839 households, and 14,675 families residing in the city. The population density was 696.5 people per square mile . There were 24,713 housing units at an average density of 298.0 per square mile...
to live with an uncle and aunt. Ludwig's mother was left alone in South Haven without any means of support and her fate was unknown.
Ludwig's first venture into shipping was at the age of 9, when he salvaged a 26 feet (8 m) boat. He left school at the end of eighth grade to work in various shipping related jobs, directly learning such trades as machinist
Machinist
A machinist is a person who uses machine tools to make or modify parts, primarily metal parts, a process known as machining. This is accomplished by using machine tools to cut away excess material much as a woodcarver cuts away excess wood to produce his work. In addition to metal, the parts may...
, marine engineer, and ship handler. In Port Arthur, he sold supplies to sailing ships and steamers. He returned to Michigan to take a job at a marine engine plant, which sent him to the Pacific Northwest and Alaska.
Early Business Ventures
At 19, Ludwig established himself in the shipping business when he began transporting molassesMolasses
Molasses is a viscous by-product of the processing of sugar cane, grapes or sugar beets into sugar. The word molasses comes from the Portuguese word melaço, which ultimately comes from mel, the Latin word for "honey". The quality of molasses depends on the maturity of the sugar cane or sugar beet,...
around the Great Lakes
Great Lakes
The Great Lakes are a collection of freshwater lakes located in northeastern North America, on the Canada – United States border. Consisting of Lakes Superior, Michigan, Huron, Erie, and Ontario, they form the largest group of freshwater lakes on Earth by total surface, coming in second by volume...
. There are rumors of his engaging in rum running during prohibition.
In the 1930s, he developed a novel approach to financing further expansion, by borrowing the construction cost of tankers and using pre-agreed charters as collateral. His National Bulk Carriers became one of the largest American shipping companies, and he eventually owned about 60 vessels. His shipyards used welding
Welding
Welding is a fabrication or sculptural process that joins materials, usually metals or thermoplastics, by causing coalescence. This is often done by melting the workpieces and adding a filler material to form a pool of molten material that cools to become a strong joint, with pressure sometimes...
instead of riveting — which saved time during World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, when there was huge demand for new ships. After the war, his ships transported oil around the world and he pioneered the construction and use of the new oil supertankers
Oil tanker
An oil tanker, also known as a petroleum tanker, is a merchant ship designed for the bulk transport of oil. There are two basic types of oil tankers: the crude tanker and the product tanker. Crude tankers move large quantities of unrefined crude oil from its point of extraction to refineries...
in the 1950s.
Ludwig diversified into an oil refinery, banking, cattle ranching, insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
, and real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
. He invested in various mining
Mining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...
and exploration projects in Americas, Africa, Australia and the Middle East. He created a chain of luxury hotels in Mexico, Bermuda and the Bahamas, and developed Westlake Village, California
Westlake Village, California
Westlake Village is a planned community that straddles the Los Angeles and Ventura county line. The eastern portion is the incorporated city Westlake Village, located on the western edge of Los Angeles County, California. The city, located in the region known as the Conejo Valley, encompasses half...
.
In 1971, using his foreign assets, Ludwig founded the Ludwig Institute for Cancer Research
Ludwig Institute for Cancer Research
The Ludwig Institute for Cancer Research Ltd is a global non-profit medical research institute that undertakes laboratory and clinical research into cancer, conducting and sponsoring its own early-phase clinical trials to investigate its discoveries....
in Switzerland, which became his primary interest in old age. Since his death, it has distributed over a billion dollars around the world for cancer research.
Personal life
Daniel K. Ludwig was married twice. His first marriage, to Gladys Madeline Ludwig (1904–1978), in Florida on October 29, 1928, produced a daughter, Patricia Margaret, born on October 8, 1936. They divorced in April 1937.Several months later, Ludwig married Gertrude Virginia Higgins, a widow, (January 13, 1897 to April 8, 1993), who had three children from a previous marriage. Gertrude, nicknamed "Ginger", would remain married to Ludwig until his death. They lived in the penthouse at the Park Cinq
Park Cinq
785 Fifth Avenue, usually called the Park Cinq, , is a luxury, cooperative apartment building on Fifth Avenue at the corner of 60th Street in Manhattan....
in Manhattan.
Princess International Hotels
Ludwig built or bought an impressive collection of hotels. These were: the Hamilton Princess and Southampton Princess in Bermuda; the Bahamas Princess (formerly the King's Inn) and the Xanadu Princess Tower (formerly the International) in Freeport; the Acapulco Princess and the Pierre Marques in Mexico; and the Francis Drake in San Francisco. Howard HughesHoward Hughes
Howard Robard Hughes, Jr. was an American business magnate, investor, aviator, engineer, film producer, director, and philanthropist. He was one of the wealthiest people in the world...
acquired the Xanadu Princess in 1973, and lived there for two years prior to his death.
Exportadora de Sal, SA
In 1954, on a trip to Baja California SurBaja California Sur
Baja California Sur , is one of the 31 states which, with the Federal District, comprise the 32 Federal Entities of Mexico. Before becoming a state on October 8, 1974, the area was known as the South Territory of Baja California. It has an area of , or 3.57% of the land mass of Mexico and comprises...
, Ludwig founded Exportadora de Sal, SA
Exportadora de Sal, S.A., of C.V.
The company is located in Guerrero Negro, Baja California Sur, Mexico, the settlement of which began in 1957 when a U.S. American by the name of Daniel Ludwig--who also constructed the hotel Acapulco Princess in the port of Acapulco, Guerrero--installed a salt works there to supply the demand of...
, which became the "Largest Salt Company in the World", at the Guerrero Negro
Guerrero Negro
Guerrero Negro is the largest town located in the municipality of Mulegé in the Mexican state of Baja California Sur . It had a population of 13,054 in the 2010 census. Guerrero Negro is served by Guerrero Negro Airport.- Whale Festival :...
Lagoon. As the area was largely uninhabited, the necessary workers and materials were sent to build a large, new town in the municipality of Mulegé
Mulegé
Mulegé is an oasis town in the Mexican state of Baja California Sur, situated at the mouth of the Río de Santa Rosalía. It is the fourth-largest community in Mulegé Municipality...
. Here, the saltworks were established by pumping the brine to the surface and allowing it to dry. In 1973, with rumors that the Mexican Government would nationalize the company, Ludwig sold his interest in Exportadora de Sal, SA to Mitsubishi
Mitsubishi
The Mitsubishi Group , Mitsubishi Group of Companies, or Mitsubishi Companies is a Japanese multinational conglomerate company that consists of a range of autonomous businesses which share the Mitsubishi brand, trademark and legacy...
, who now own 49% with the Mexican government holding the controlling interest.
Citricos de Chiriqui, SA
In a 25 million dollar 1960 project in PanamaPanama
Panama , officially the Republic of Panama , is the southernmost country of Central America. Situated on the isthmus connecting North and South America, it is bordered by Costa Rica to the northwest, Colombia to the southeast, the Caribbean Sea to the north and the Pacific Ocean to the south. The...
, Ludwig bought 10000 acres (40.5 km²) of land in Dolega
Dolega, Chiriquí
Dolega is a town in the Chiriquí province of Panama.- Sources :* – World-Gazetteer.com...
, in the interior of Panama. He had all the land cleared and built roads and bridges. 800,000 Velencia orange trees were planted and full production was expected in 1967. It was considered the largest privately owned venture of its kind in the world. Years later it would fall into government hands. In a New York Times article, "Auction Fails in Panama," May 27, 1991, Citricos de Chriqui, SA failed to attract any bidders, the minimum asking price was 13.9 million.
Jari Project
In 1967, Ludwig purchased about 4 million acres (16,000 km²) of land near the mouth of the Amazon RiverAmazon River
The Amazon of South America is the second longest river in the world and by far the largest by waterflow with an average discharge greater than the next seven largest rivers combined...
. His agricultural ventures on that land, called the Jari project
Jari project
The Jari project was an attempt to create a tropical tree farm in Brazil for producing pulp for paper.-Background:The Jari project was a brainchild of US entrepreneur and billionaire Daniel K. Ludwig. In the 1950s he noticed that demand for paper was rising. Since the forests of the temperate zone...
, ultimately proved much less successful than his earlier shipping ventures. Large losses and mounting criticism of his business practices led him to hand over the project to Brazilian investors in 1981.
External links
- Photos of Boyhood Home, DK's Father, DK at 15 and circa 1955
- Obituary of Charles P. Ludwig, DK's Uncle, Large Extended Family
- Photo of Capt. Lancaster Columbia Ludwig, DK's Uncle
- Photo of DK in 1971
- Photo of DK in 1959
- Photo of DK in 1965
- 10 Photos of DK at the Jari project taken by Loren McIntyre, 1980
- Photo of DK and the Jari Project from National Geographic, 1980
- Undated Photo of DK
- Capt. L.C. Ludwig's Obituary, Age 99, May 17, 1954
- Ships built by Daniel K. Ludwig
- Biography at the Ludwig Institute for Cancer Research website.
- Great American Business Leaders
- Infoplease
- Richest People in history
- Time Magazine Obituary
- Daniel Ludwig's Floating Factory
- Exportadora de Sal, SA
