Greg Sabin
10 People Who Made a Fortune During the Depression
by Greg Sabin - March 22, 2011 - 4:32 PM

Note: This article was originally published in 2009. We’re knee deep in server migration this week, so forgive us for reposting a few oldies/goodies.

Even during our country’s worst economic downturn, some folks still knew how to make a buck—many bucks, in fact.

1. Babe Ruth

ruth-30s

The Sultan of Swat was never shy about conspicuous consumption. While baseball players’ salaries were nowhere near as high in the ’30s as they are today (adjusted for inflation), Ruth was at the top of the heap. While possibly apocryphal, when Ruth found out that his $80,000 (more than $1 mil today) a year salary was $5,000 more than that of President Hoover, he is reported to have said, “Well, I had a better year than he did.”

2. John Dillinger

While not using methods we’d endorse, John Dillinger and his compatriots managed to compile more than $3 million in today’s dollars. Robbing dozens of banks and killing police officers in the process, Dillinger is not exactly what we’d call “successful,” but the brash, charming, and audacious Dillinger became just the type of anti-hero that the bedraggled, unemployed masses loved. He was shot to death in Chicago by FBI agents in 1934.

3. Michael J. Cullen

A man unfamiliar to most, yet whose modern ideas revolutionized American life, Cullen changed our retail landscape by creating the modern supermarket. A former executive at Kroger Grocery & Bakery Co., Cullen struck out on his own in 1930 after higher-ups rejected his ideas for more suburban, larger, self-serve food markets with room for automobile parking and allowances for new-fangled home refrigeration. Within two years, Cullen’s stores (known as King Kullen Grocery) were doing more than $6 million in revenue (more than $75 million today). His motto: “Pile it high: sell it cheap.”

4. James Cagney

The diminutive song-and-dance man turned tough guy turned song-and-dance man rose like a rocket through Hollywood in the 1930s. He went from a $500-a-week contract player in 1930 to one of the top ten moneymakers in Hollywood during 1935. In 1933 he was making the equivalent of $40,000 a week. His rise was so fast that he offered to do a few movies for free just to get out of a five-year contract with Warner Brothers.

5. Charles Darrow

monopoly

Finding himself out of work after the crash of ’29, Darrow spent a few years perfecting—though some would say pilfering—a little parlor game that eventually came to be known as Monopoly. Within a year of registering the patent, Parker Brothers was selling 20,000 units a year, and Darrow became the world’s first millionaire game designer.

6. Glenn Miller

The King of Swing may have been Benny Goodman, but the King of Pop in the 1930s was Glenn Miller. From his humble beginnings as a traveling trombone player—and superb high school football player being named “best left end in Colorado”—Miller rose to put together his first band in 1937. The band fell apart. Undaunted as any good left end would be, he reorganized a new group in 1938 and quickly found success. With hits like “In the Mood,” “String Of Pearls,” and “Moonlight Serenade,” Miller and his band found themselves on radio, in the movies and commanding a salary of nearly $20k a week . In 1942, just at the height of his popularity, Miller disbanded his group and volunteered for the U.S. Army, where he formed a military band to help build morale during the war. He was lost during a flight over the channel from England to France in 1944. The plane was never found.

7. Howard Hughes

hughesSure, all we remember of Hughes is the insanely long fingernails, Kleenex box hats, and storing his own urine in mayonnaise jars, but there was a whole crazy stellar career before that. After the ’29 crash, seemingly unfazed, he made Hell’s Angels–then the most expensive movie ever–at a cost of $3.8 million. In 1932, at the height of the nation’s economic woes, he formed the Hughes Aircraft Company. He built the company into a major-league defense supplier and by the time he died in 1976, his fortune totaled a reported $2.5 billion. Maybe there’s something to that whole urine saving thing.

8. J. Paul Getty

An amazing beneficiary of good timing and great business acumen, Getty created an oil empire out an inheritance of $500,000 received in 1930. With oil stocks massively depressed, he snatched them up at bargain prices and created an oil conglomerate to rival Rockefeller. Throughout the 20th century he became a billionaire many times over.

9. Gene Autry

The Great Depression was Gene Autry’s golden era. Rising from a local radio yodeler (nearly every station had their own yodeler back then) to a hit machine throughout the decade, Autry appeared in over 40 movies, becoming the top western draw at the box office. The singing cowboy, not content to be just a yodeler, albeit a very successful one, later created a TV and radio broadcasting empire in the Western United States and bought the California Angels.

10. Joe Kennedy

Joe Kennedy, Sr., patriarch of the Camelot clan, built up a tidy sum in the 1920s with a hearty amount of speculation, peppered with insider trading and market manipulation. Unlike many other of his ilk who helped to create the unstable markets that brought about the financial calamities of the ’30s however, Kennedy knew when to get out. Out of the stock market, Old Joe invested his money in real estate, liquor, and movie studios, generating gaudy profits and cementing his family’s place in the highest financial echelon of American society.

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Comments (15)
  1. Slight mistake on your last example. Joe Kennedy made his initial fortune as a bootlegger, and he was, by all reports, a particularly vicious one. The market manipulation may have come later, but he started as a gangster running illegal goods – and came close to being nominated for President some twenty years later. Given his starts, it’s not surprising the whole clan is dysfunctional to this day.

  2. Wouldn’t the bootlegging have happened in the 1920′s? The Great Depression happened afterwards. Because of that, I could see Kennedy making a lot more money investing in alcohol because of the 21st amendment in combination with the general population drowning their sorrows in a bottle. At the same time, property values were probably at their lowest, so a long-term investment in real estate could have made a nice turn-around by the 40′s. Not to mention that movie theaters were one of the ways to get the news to the public aside from the papers, so money could be made there and Kennedy knew that.

    So in response to Drew, seeing how Greg stated that Kennedy already had a decent sum going into the Depression and how the topic is about making money within a specific time period, Greg did a good job of staying within the perimeters while still explaining how Kennedy was able to do it inthe first place. (also, i would consider bootlegging in the 20′s a form of market manipulation lol)

  3. Glenn Miller is spelled with two Ns.

    And my favorite Joe Kennedy story, from Time magazine:

    “When Franklin Roosevelt called Joe to Washington to clean up the Securities and Exchange Commission, somebody asked F.D.R. why he had tapped such a crook. ‘Takes one to catch one,’ replied Roosevelt. Kennedy did a superb job.”

  4. I remember reading something a few years ago about Glenn Miller’s plane.

    He and others in his unit were flying back to England after a mission and that is when the plane was lost. What I read a few years ago was that possibly one of the other planes in the unit had a bomb left over and needed to release it before landing. Since they were over the ocean, they just dropped it, and it may have unknowingly hit Glenn Miller’s plane on the way down.

  5. Just reading this makes me think about how the majority of their children and grandchildren ended up…

  6. Walt Disney didn’t do so bad either. He made a fortune when he licensed Mickey Mouse to the Ingersoll watch company in 1933. They both rode thru the depression on top of the wave. Then he released “Snow White” in 1937. The money from that baby carried him through WWII and all the losses from PInocchio (1938), and Fantasia (1939).

  7. “The first millionaire game designer”- does that have a double meaning?

  8. What, there were no successful ladies at this time?

  9. great post…what about a post on what some people did to help others during the depression? For instance: Milton Hershey built the Hershey Hotel basically to just give the people in the town of Hershey a place to work.

    Come to think of it, a post about “Ten Things You Didn’t Know About Milton Hershey” would be really interesting…

  10. I second the Milton Hershey suggestion, please! :)

  11. Jack Benny (Bennny Kubelski) earned $5k per week making depressed people laugh.

  12. Hey, if you’re going to mention that J. Paul Getty got a head start with a $500,000 inheritance, you ought to also mention the facts about good ol’ Howard Hughes.

    Unlike everybody on your list, Howard Hughes inherited 75 percent stake in perhaps most profitable private corporation in the United States — Hughes Tool Company — when he was barely 20 years old.

    And that ‘most expensive movie’ thing — that’s an example of spending, NOT making money.

    Even after the movies and aviation, the core of Howard Hughes’ wealth was Hughes Tool Company, which his daddy built.

    Hell’s Angels and the Spruce Goose were how he SPENT Hughes Tool money. Now how he made any.

    HH smartest business move was to pick the right parents.

  13. Charles Darrow pfilfered the game from the Amish community.

  14. I think it is usual for those already well off going into a depression or recession to make out better due to the economic down fall. Assuming all your assets wern’t in the market, and had cash to be liquid which I know isn’t the case for many.
    A good example is the current US economy, there are many that have benefitted by the housing market tank and Wallstreet dips by buying up the things that’ll recover in spades, while those at the bottom will end up worse. The resultant wider rich to poor gap is also a mechanism giving the wealthy more power due to the economic downturn.

  15. @ Steven-
    I believe you mean 18th Amendment. The 21st Amendment, in 1933, was the repeal of Prohibition

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