Milton Hershey School & Herco

[Guest SalG (Sal Grenci)]

Who saw the 60 minutes story on the Milton Hershey School and Herco? According to 60 minutes they have some $500 Million in assets. The Alumni are upset that the poor kids have to be smart, well behaved and headed for collage and not vocations and they are not helping all that they can.

[Ron Green]

Sal, this is a real ugly battle here. Me and the company I work for have had various projects on campus for many years. I believe many years ago they made the kids stop milking the cows and doing the farm work as it was to much work (up early?) they claimed and not fair to the kids? Milton would roll over if he knew the farms for the most part are closed.<P>The Alumni is against just about everything. The campus has not had any major upgrades for 25 years, so 5 years ago they started spending some of the 5 billion dollars that the Hershey Trust has on new schools, houses, librarys, etc. This really tripped there trigger.<P>Hershey Foods and HERCO are given a budget each year and there profits are put in the Hershey Trust for the school to spend. The problem being that there is more money and interest that can be spent. Milton had it set up that the money can only be spent for the kids, perioid. <P>The Alumni wants to make the enrollment larger and take in all kids regardless of behavior, intelligence, etc. This would also make old Milton roll over.<P>They are trying to control all this money with rules that no longer apply to todays world and the rules can not be changed. <P>I learned not to take sides in this ugly battle however I was in the Alumni offices one day to see that they had Hersheys largest competitors snicker bars in the candy dish in lieu of some Hershey candies. This is going a little to far! <P>My 2 cents.

[Guest]

Ron -<BR>Just to set the record straight, Herco's profits apparently go directly to the Hershey Foundation (funding source for the School) and Hershey Foods pays dividends on the 31% of the common stock owned by the Foundation.<P>Hershey Foods is a NYSE listed common stock. The company is engaged not only in making and marketing confections, but a host of other comsumer products classified as grocery products. It is unlikely that the Foundation, the School or Herco set any kind of budgets for the Foods corporation. Hershey Foods, Herco and the Foundation are all sepatate legal entities. <P>Why should anyone be surprised that there are so many activists with all that money just sitting there and growing. On the subject of Snickers, maybe those Alumni like the taste of superior candy!

[Ron Green]

You are right Ted, however it is my understanding that budgets are set in regards to construction projects and new products. Some projects or new buildings may wait a few years until construction can start due to the yearly budgets. At least that is what I have been told and witnessed.

[Guest SalG (Sal Grenci)]

I knew if I posted something here those in the know would respond. It is wise not to take sides when you are involved as a contractor. That guy Max & wonderstruck human in the buy/sell under "note" will now can see we are talking about a candy bar company. a school and a charity. <p>[ 12-10-2001: Message edited by: SalG ]