Nicolás Mihanovich
Encyclopedia
Nicolás Mihanovich was a Croatian Argentine
businessman closely linked to the development of the Argentine merchant marine.
, in 1844. Self-educated, he arrived in Buenos Aires
in the 1860s and formed a partnership with two of his countrymen: Gerónimo Zuanich and Octavio Cosulich. Operating five steam ships by 1879, the group initiated scheduled transports from Buenos Aires to the then-remote outposts of Bahía Blanca
and Carmen de Patagones
. The new route's success led to the purchase of the 1,500-ton Watergeus, which received a materials transport contract from the rapidly-expanding Buenos Aires Great Southern Railway
, and to the 1887 establishment of the first ferry
service between Buenos Aires and Colonia del Sacramento
(Uruguay
).
Already the majority stakeholder in Nicolás Mihanovich y Compañía, he bought out his partners in 1888. Facing increasing competition in the late 1880s, the Mihanovich Company's strong financial base put it in a position of great advantage following the ruinous Panic of 1890
, which began in Argentina when the overissuance of local bond
s by the Barings Bank
led to their collapse in value. The first major steam ship operator to fold was La Platense, whose assets of over 1.2 million gold pesos (a similar amount in US$) Mihanovich was able to purchase in 1894 for only 92,000.
arrangement between the two, whereby Mihanovich ceded control of Uruguay River
shipping to Ribes, who was given control of the Paraná
. Ribes' death in 1897, however, left Las Mensajerías in the hands of heirs opposed to the previous arrangement, though the Mihanovich Company's strength forced the Ribes heirs to sell the company. Purchasing Las Mensajerías for 450,000 gold pesos, and smaller rivals Giuliani and Balparado as well, the massive Sociedad Anónima Nicolás Mihanovich was incorporated in 1898; by then, the group operated over 200 steamers.
Mihanovich would operate not only Latin America's largest shipping company, but also the region's premier shipyard
, allowing the group to dispanse with the outsourcing
of repairs. The company began to issue stock and by 1907, the company's market capitalization
reached 7 million gold pesos (Mihanovich's brother, Miguel, sons (Pedro y Nicolás) and other relatives remained majority stakeholders). British
investors then quickly brought its capitalization to £2.1 million (US$10 million), leading to the company's registration in London
as the Argentina Navigation Company - Nicolás Mihanovich Ltd. in 1909; the group, by then, had become a local monopoly of 350 steamers.
Freed of competition in waterborne shipping, the group increasingly lost business in his riverboat
unit to the nation's fast-growing railways
. Enjoying the advantages of speed and inland access, the Entre Ríos Railway
became enough of an obstacle to prompt Mihanovich to negotiate personally with the line's British owners (though with little success). Mihanovich then diversified into other sectors. He also purchased an extensive quebracho
forest to take part in the growing furniture market, a wheat mill, the Banco de Italia (over half of the 6 million immigrants in Argentina were from that nation), and an abbatoir, among others.
Mihanovich also joined German
developer Otto Wulff in the construction of what became known as the Otto Wulff building. Completed in 1914, the Montserrat
neighborhood landmark housed the Embassy of the Austro-Hungarian Empire, by which Emperor Franz Joseph I named Mihanovich Honorary Consul and Edler
in 1899. Later on the emperor
granted him the title of Baron
(Nikolaus Freiherr Mihanovich von Dolskidol ) in 1912 with the right of transmission for his dedicated efforts towards the empire.
He also received honours and condecorations from others european monarchs, among them; the Cross of Second Order to Naval Merit and Alfonso XIII's Order from Alfonso XIII
of Spain and The Order of Saint Stanislaus with stars from Czar Nicholas II
of Russia.
The company, however, remained closest to the British Empire, and although the Mihanovich family owned a 70% share, the company was registered in London. Every new steamer was, moreover, purchased from England
's famed shipbuilders, including the 6,177-ton freighter
Centenario (one of the largest at that time in the world).
During his active life, Mihanovich was involved in many charity activities and support various associations. He purchased 800 square kilometres of land in the Chaco
where he founded a colony called Colonia Dalmacia. He and his brother Miguel create a foundation for the development of their home town Doli that still exists today called zaklada-mihanovic.
). The perceived conflict of interest
in having Mihanovich, an Austro-Hungarian citizen and official, direct a British-controlled shipper led to his retirement from the board of directors, in 1916. His elder son, Pedro, briefly succeeded him, though in 1918, Mihanovich sold his family's stake in the group to a consortium led by a British shipping magnate, Lord Kylsant
, and an Argentine investor, Alberto Dodero.
Mihanovich's heir, Pedro, died in 1925 and ultimately, the patriarch outlived all his sons. Later in the decade, he had a 21-story, eclecticist apartment-office complex built in Buenos Aires' Retiro
area. Inaugurated in 1929, the structure was named the Mihanovich building
in honor of its developer, who had recently died at age 85.
Croatian Argentine
Croatians in Argentina or Croatian Argentine are Argentine of Croatian descent. Croats and their descendants have made valuable contributions to their new country...
businessman closely linked to the development of the Argentine merchant marine.
The Beginnings
Nicolás Mihanovich (Mihanović) was born in the Austro-Hungarian Empire, in what is today CroatiaCroatia
Croatia , officially the Republic of Croatia , is a unitary democratic parliamentary republic in Europe at the crossroads of the Mitteleuropa, the Balkans, and the Mediterranean. Its capital and largest city is Zagreb. The country is divided into 20 counties and the city of Zagreb. Croatia covers ...
, in 1844. Self-educated, he arrived in Buenos Aires
Buenos Aires
Buenos Aires is the capital and largest city of Argentina, and the second-largest metropolitan area in South America, after São Paulo. It is located on the western shore of the estuary of the Río de la Plata, on the southeastern coast of the South American continent...
in the 1860s and formed a partnership with two of his countrymen: Gerónimo Zuanich and Octavio Cosulich. Operating five steam ships by 1879, the group initiated scheduled transports from Buenos Aires to the then-remote outposts of Bahía Blanca
Bahía Blanca
Bahía Blanca is a city located in the south-west of the province of Buenos Aires, Argentina, by the Atlantic Ocean, and seat of government of Bahía Blanca Partido. It has a population of 274,509 inhabitants according to the...
and Carmen de Patagones
Carmen de Patagones
- Geography :It is located 937 km from the city of Buenos Aires, on the north bank of the Río Negro , near the Atlantic Ocean, and opposite Viedma, capital of the province of Río Negro...
. The new route's success led to the purchase of the 1,500-ton Watergeus, which received a materials transport contract from the rapidly-expanding Buenos Aires Great Southern Railway
Buenos Aires Great Southern Railway
The Buenos Aires Great Southern Railway was one of the Big Four broad gauge, , British-owned companies that built and operated railway networks in Argentina...
, and to the 1887 establishment of the first ferry
Ferry
A ferry is a form of transportation, usually a boat, but sometimes a ship, used to carry primarily passengers, and sometimes vehicles and cargo as well, across a body of water. Most ferries operate on regular, frequent, return services...
service between Buenos Aires and Colonia del Sacramento
Colonia del Sacramento
Colonia del Sacramento is a city in southwestern Uruguay, by the Río de la Plata, facing Buenos Aires, Argentina. It is the oldest town in Uruguay and capital of the departamento of Colonia. It has a population of around 22,000.It is renowned for its historic quarter, a World Heritage Site...
(Uruguay
Uruguay
Uruguay ,officially the Oriental Republic of Uruguay,sometimes the Eastern Republic of Uruguay; ) is a country in the southeastern part of South America. It is home to some 3.5 million people, of whom 1.8 million live in the capital Montevideo and its metropolitan area...
).
Already the majority stakeholder in Nicolás Mihanovich y Compañía, he bought out his partners in 1888. Facing increasing competition in the late 1880s, the Mihanovich Company's strong financial base put it in a position of great advantage following the ruinous Panic of 1890
Panic of 1890
The Panic of 1890 was an acute depression, although less serious than other panics of the era. It was precipitated by the near insolvency of Barings Bank in London. Barings, led by Edward Baring, 1st Baron Revelstoke, faced bankruptcy in November 1890 due mainly to excessive risk-taking on poor...
, which began in Argentina when the overissuance of local bond
Bond (finance)
In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...
s by the Barings Bank
Barings Bank
Barings Bank was the oldest merchant bank in London until its collapse in 1995 after one of the bank's employees, Nick Leeson, lost £827 million due to speculative investing, primarily in futures contracts, at the bank's Singapore office.-History:-1762–1890:Barings Bank was founded in 1762 as the...
led to their collapse in value. The first major steam ship operator to fold was La Platense, whose assets of over 1.2 million gold pesos (a similar amount in US$) Mihanovich was able to purchase in 1894 for only 92,000.
The king of Argentine shipping
An ongoing rivalry with Saturnino Ribes' Las Mensajerías (so named for its prominence in the mail transport business) led to a trustTrust (19th century)
A special trust or business trust is a business entity formed with intent to monopolize business, to restrain trade, or to fix prices. Trusts gained economic power in the U.S. in the late 19th and early 20th centuries. Some, but not all, were organized as trusts in the legal sense...
arrangement between the two, whereby Mihanovich ceded control of Uruguay River
Uruguay River
The Uruguay River is a river in South America. It flows from north to south and makes boundary with Brazil, Argentina, and Uruguay, separating some of the Argentine provinces of the Mesopotamia from the other two countries...
shipping to Ribes, who was given control of the Paraná
Paraná River
The Paraná River is a river in south Central South America, running through Brazil, Paraguay and Argentina for some . It is second in length only to the Amazon River among South American rivers. The name Paraná is an abbreviation of the phrase "para rehe onáva", which comes from the Tupi language...
. Ribes' death in 1897, however, left Las Mensajerías in the hands of heirs opposed to the previous arrangement, though the Mihanovich Company's strength forced the Ribes heirs to sell the company. Purchasing Las Mensajerías for 450,000 gold pesos, and smaller rivals Giuliani and Balparado as well, the massive Sociedad Anónima Nicolás Mihanovich was incorporated in 1898; by then, the group operated over 200 steamers.
Mihanovich would operate not only Latin America's largest shipping company, but also the region's premier shipyard
Shipyard
Shipyards and dockyards are places which repair and build ships. These can be yachts, military vessels, cruise liners or other cargo or passenger ships. Dockyards are sometimes more associated with maintenance and basing activities than shipyards, which are sometimes associated more with initial...
, allowing the group to dispanse with the outsourcing
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
of repairs. The company began to issue stock and by 1907, the company's market capitalization
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
reached 7 million gold pesos (Mihanovich's brother, Miguel, sons (Pedro y Nicolás) and other relatives remained majority stakeholders). British
British Empire
The British Empire comprised the dominions, colonies, protectorates, mandates and other territories ruled or administered by the United Kingdom. It originated with the overseas colonies and trading posts established by England in the late 16th and early 17th centuries. At its height, it was the...
investors then quickly brought its capitalization to £2.1 million (US$10 million), leading to the company's registration in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
as the Argentina Navigation Company - Nicolás Mihanovich Ltd. in 1909; the group, by then, had become a local monopoly of 350 steamers.
Freed of competition in waterborne shipping, the group increasingly lost business in his riverboat
Riverboat
A riverboat is a ship built boat designed for inland navigation on lakes, rivers, and artificial waterways. They are generally equipped and outfitted as work boats in one of the carrying trades, for freight or people transport, including luxury units constructed for entertainment enterprises, such...
unit to the nation's fast-growing railways
Rail transport in Argentina
The Argentine railway network comprised of track at the end of the Second World War and was, in its time, one of the most extensive and prosperous in South America. However, with the increase in highway construction, there followed a sharp decline in railway profitability, leading to the break-up...
. Enjoying the advantages of speed and inland access, the Entre Ríos Railway
Entre Ríos Railway
The Entre Ríos Railway was a British-owned railway company that built and operated a railway network in Entre Ríos Province, between the rivers Uruguay and Paraná, in Argentina...
became enough of an obstacle to prompt Mihanovich to negotiate personally with the line's British owners (though with little success). Mihanovich then diversified into other sectors. He also purchased an extensive quebracho
Quebracho tree
Quebracho is a common name in Spanish to describe very hard wood tree species. The etymology of the name derived from quiebrahacha, or quebrar hacha, meaning "axe-breaker".-Species:...
forest to take part in the growing furniture market, a wheat mill, the Banco de Italia (over half of the 6 million immigrants in Argentina were from that nation), and an abbatoir, among others.
Mihanovich also joined German
German Empire
The German Empire refers to Germany during the "Second Reich" period from the unification of Germany and proclamation of Wilhelm I as German Emperor on 18 January 1871, to 1918, when it became a federal republic after defeat in World War I and the abdication of the Emperor, Wilhelm II.The German...
developer Otto Wulff in the construction of what became known as the Otto Wulff building. Completed in 1914, the Montserrat
Montserrat, Buenos Aires
Monserrat is a neighbourhood located in the east of the Buenos Aires CBD. The district features some of the most important public buildings in Buenos Aires, including city hall, the city legislature, Casa Rosada, the Colegio Nacional de Buenos Aires and the Libertador Building , among...
neighborhood landmark housed the Embassy of the Austro-Hungarian Empire, by which Emperor Franz Joseph I named Mihanovich Honorary Consul and Edler
Edler
Edler was until 1919 the lowest title of nobility in Austria-Hungary and Germany, just beneath a Ritter, but above nobles without title who used only the preposition von before their surname. It was mostly given to civil servants and military officers, as well as those upon whom the second rank of...
in 1899. Later on the emperor
Emperor
An emperor is a monarch, usually the sovereign ruler of an empire or another type of imperial realm. Empress, the female equivalent, may indicate an emperor's wife or a woman who rules in her own right...
granted him the title of Baron
Baron
Baron is a title of nobility. The word baron comes from Old French baron, itself from Old High German and Latin baro meaning " man, warrior"; it merged with cognate Old English beorn meaning "nobleman"...
(Nikolaus Freiherr Mihanovich von Dolskidol ) in 1912 with the right of transmission for his dedicated efforts towards the empire.
He also received honours and condecorations from others european monarchs, among them; the Cross of Second Order to Naval Merit and Alfonso XIII's Order from Alfonso XIII
Alfonso XIII of Spain
Alfonso XIII was King of Spain from 1886 until 1931. His mother, Maria Christina of Austria, was appointed regent during his minority...
of Spain and The Order of Saint Stanislaus with stars from Czar Nicholas II
Nicholas II of Russia
Nicholas II was the last Emperor of Russia, Grand Prince of Finland, and titular King of Poland. His official short title was Nicholas II, Emperor and Autocrat of All the Russias and he is known as Saint Nicholas the Passion-Bearer by the Russian Orthodox Church.Nicholas II ruled from 1894 until...
of Russia.
The company, however, remained closest to the British Empire, and although the Mihanovich family owned a 70% share, the company was registered in London. Every new steamer was, moreover, purchased from England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
's famed shipbuilders, including the 6,177-ton freighter
Cargo ship
A cargo ship or freighter is any sort of ship or vessel that carries cargo, goods, and materials from one port to another. Thousands of cargo carriers ply the world's seas and oceans each year; they handle the bulk of international trade...
Centenario (one of the largest at that time in the world).
During his active life, Mihanovich was involved in many charity activities and support various associations. He purchased 800 square kilometres of land in the Chaco
Chaco Province
Chaco is an Argentine province located in the north of the country, near the border with Paraguay. Its capital is Resistencia on the Paraná River opposite the city of Corrientes...
where he founded a colony called Colonia Dalmacia. He and his brother Miguel create a foundation for the development of their home town Doli that still exists today called zaklada-mihanovic.
Twilight
Competition from the railways helped prompt Mihanovich to sell a number of his surplus freighters to European governments (newly embroiled in World War IWorld War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
). The perceived conflict of interest
Conflict of interest
A conflict of interest occurs when an individual or organization is involved in multiple interests, one of which could possibly corrupt the motivation for an act in the other....
in having Mihanovich, an Austro-Hungarian citizen and official, direct a British-controlled shipper led to his retirement from the board of directors, in 1916. His elder son, Pedro, briefly succeeded him, though in 1918, Mihanovich sold his family's stake in the group to a consortium led by a British shipping magnate, Lord Kylsant
Owen Philipps, 1st Baron Kylsant
Owen Cosby Philipps, 1st Baron Kylsant was a British businessman and politician, later jailed for producing a document with intent to deceive.-Background:...
, and an Argentine investor, Alberto Dodero.
Mihanovich's heir, Pedro, died in 1925 and ultimately, the patriarch outlived all his sons. Later in the decade, he had a 21-story, eclecticist apartment-office complex built in Buenos Aires' Retiro
Retiro, Buenos Aires
Retiro is a barrio in Buenos Aires, Argentina. Located in the northeast end of the city, Retiro is bordered on the south by the Puerto Madero and San Nicolás wards, and on the west by the Recoleta ward.-Urban character:...
area. Inaugurated in 1929, the structure was named the Mihanovich building
Sofitel Buenos Aires
Sofitel Buenos Aires is a five star hotel in the Retiro section of Buenos Aires.-Overview:Commissioned by local shipping magnate Nicolás Mihanovich, a 20-story office complex was built which would allow him to look out towards the Río de la Plata, where his steam ships could be seen plying the...
in honor of its developer, who had recently died at age 85.