John Hughes plant. John Hughes - founder of Donetsk

One of the most prominent industrialists of his time was John Hughes, the founder of Donetsk. Thanks to him, this one of the largest industrial cities in Ukraine appeared. What else was remarkable about the biography of John Hughes? Let's find out in more detail who he is and what he did.

Youth

First of all, let's find out in what year John Hughes was born, where and in whose family. The future major industrialist was born in 1814 in the town of Merthyr Tydfil, in Wales. He came from the Welsh family of engineer Hughes (in modern pronunciation - Hughes), who managed a local metallurgical plant.

In his early youth, John James Hughes worked at his father's enterprise, but by the age of 28 he was able to accumulate some capital and acquired his own shipyard.

Activities in the UK

In 1850, John Hughes acquired another enterprise - a foundry in Newport. However, this did not prevent him from simultaneously improving himself, working as an engineer at the Milvolsky iron rolling plant, where he moved in the late 50s of the 19th century. Already in 1860, John Hughes became the director of this enterprise.

One of his achievements during this time was the creation of a carriage for heavy guns, which he designed in 1864. This mechanism attracted the attention of many European countries, from where orders poured in. In addition, John Hughes was developing armor for ships.

The name of John Hughes has become one of the most famous in British metallurgy and shipbuilding.

Offers from Russia

The developments of John Hughes interested the Admiralty of the Russian Empire, which planned to use the armor to strengthen Fort Constantine in Kronstadt.

During negotiations for the supply of armor, Hughes developed close acquaintances with Russian officials, among whom were Colonel Ottomar Gern and General Eduard Totleben. They invited the British industrialist to implement a project in the south of the Russian Empire to build a plant for the production of iron rails, which Prince Kochubey had previously undertaken. Hughes agreed.

Reasons for accepting the offer

The main reason that prompted John Hughes to concentrate his main activity on the Russian Empire was the industrial crisis that erupted in Great Britain after the catastrophic collapse of the London Stock Exchange in 1866. This gave rise to a significant increase in the country's unemployment rate and an outflow of investment. At this time, the volume of orders from customers dropped significantly.

Russia at that time was a state whose economy was developing by leaps and bounds, trying to reduce the gap with Western countries. Therefore, it represented a rather attractive field of activity for a foreign industrialist. He intended to attract labor from Great Britain to projects implemented in Russia, for which demand in his native country had sharply fallen.

In addition, Russian officials made Yuzu a number of quite lucrative offers, which in this situation seemed even more attractive.

Start of operations in Russia

So, John Hughes became closely involved in the Russian project, which promised big profits.

In 1868, he went to Russia, leaving his wife in his homeland, since she completely refused to move.

First of all, Yuz acquired the right to mine coal on lands that belonged to Prince Pavel Lieven. In the same year, the British industrialist bought a concession to operate in metallurgical production in the Yekaterinburg province from Prince Sergei Kochubey, which was facilitated by the brother of Emperor Alexander. The deal was officially registered in April of the same year.

Thus, John Hughes prepared the ground for the development of large metallurgical production and the coal mining industry.

Novorossiysk society

But to start production, considerable financial investments were required. John Hughes decided to attract them by creating a joint stock company. With his help, he wanted to direct British capital to develop industry in the south of the Russian Empire. The organization began to be called “Novorossiysk Society”, and specialized in attracting investments in metallurgical, coal and rail production. The company was registered in 1869 in London.

The main shareholder of the company was Member of the British Parliament Daniel Gooch, and the total number of participants reached nineteen people. There were also Russians among them, in particular, the above-mentioned Sergei Kochubey and Pavel Lieven.

Founding of Donetsk

Now let's find out in what year John Hughes founded Donetsk. There is no exact dating of this event, but it is generally accepted that the founding year is 1869, when the Novorossiysk Society began building a metallurgical plant near the village of Aleksandrovka. At the same time, a working settlement arose, which was called Yuzovka, or Yuzovo, in honor of John Hughes. From this settlement the modern city of Donetsk grew.

Initially, Yuzovka had the status of a settlement with simplified urban governance, and territorially belonged to the Bakhmut district of the Yekaterinoslav province. In 1870 it had 164 inhabitants.

At the same time, in 1869, another village arose - Smolyanka. A forge and two mines belonging to Yuzu were built near it.

Production development

Although the plant was originally planned to be launched in 1870, construction of the first plant was completed only in April 1871. By 1872, the construction of the plant was completely completed. It numbered eight. At the very beginning of 1872, iron smelting began.

The workers at the plant were not only subjects of the Russian emperor, but also people recruited in Great Britain, where, due to the crisis, many free workers appeared. There was a particularly large influx of labor from South Wales' native South Wales. Most of the British workers lived in the Yuzovka quarter, which was called the English Colony.

If at first production developed rather difficultly, then over time it reached significant proportions. The Yuza plant became one of the largest metallurgical enterprises in the Russian Empire.

In 1880, a factory for the production of refractory bricks was put into operation. Nine years later, an iron foundry and machine-building enterprise also began to operate. True, this was no longer the work of Hughes, but of other industrialists - Gennefeld and Bosse. But nevertheless, it was John Hughes who was the person thanks to whom industry began to develop by leaps and bounds in the region.

To ensure transport accessibility of the developing region, the Konstantinovskaya Railway was launched in 1872.

House of Yuz

Initially, John Hughes lived on an estate purchased from the landowner Smolyaninova, where the village of Smolyanka arose. The house where he lived was a structure similar to a Ukrainian hut. Its walls were made of adobe and its roof was made of straw. However, this building has not survived to this day.

Another house of John Hughes is of significant historical and architectural value. It was built in Yuzovka specifically for the Welsh industrialist. The start of construction was timed to coincide with the second half of 1873. Already in the middle of next year the house was built. It was a one-story red brick building and consisted of eight rooms. The roof was covered with iron sheets. In addition, there were many outbuildings adjacent to the house, ranging from a basement to a kennel. There was a garden on the estate. The house also had such attributes of new times as running water and electricity.

Hughes's house was located one and a half kilometers from his factory.

John Hughes's wife moved from England to Yuzovka much later than her husband, already when the mansion was built. She was not satisfied with its appearance, in particular, the fact that the house was one-story. Therefore, it was decided to rebuild it on two floors.

But not a single project by Russian architects could satisfy the taste of the Yuzov family, so a specialist was hired in the UK. The responsibility with which the design was approached is evidenced by the fact that it lasted for several years. Moreover, in 1880, work on the project was interrupted due to a number of force majeure circumstances, namely due to the death of the son and wife of John Hughes. Work resumed only three years after its suspension. As a result, the project was a plan for a building in the Renaissance style.

Construction itself began in 1887 and ended four years later, that is, after the death of John Hughes. Neither he nor his wife lived to see the house was finally built. However, other members of the family moved into the mansion already in the fall of 1891. They lived in the house until 1903, after which they left these places for good.

Currently, the building, which was once the Yuzov house, is one of the landmarks that adorns the city of Donetsk, although it is in a dilapidated state. It is located at st. Klinicheskaya, 15. The modern appearance of the building can be seen in the photo above.

Death

As mentioned above, John Hughes (1814-1889) died before the completion of his new home. This happened in June 1889, when Yuz was in the capital of the Russian Empire, St. Petersburg. His death overtook him at the age of seventy-five at the Angleterre Hotel.

John Hughes was buried in his homeland, Great Britain, in London's West Norwood Cemetery.

Family

Now let's take a brief look at other representatives of the Yuz family.

John Hughes was married to Elizabeth Lewis. For a long time she did not dare to move from her native Britain to the south of the Russian Empire. But in the end she followed her husband and sons. She died nine years before the death of John Hughes, in November 1880.

The Yuz family had seven children: five sons and two daughters. The eldest daughter, Sarah Anna Hughes, married Lemon, was born in 1846 and died in 1929 in London. Another daughter, Margaret, died young in Yuzovka. In 1948, her grave was opened and looted.

The eldest son of the Hughes family was named John James. He was born in 1848 and died in 1917. It was John James who, after the death of his father in 1889, became the head of the Hughes family.

The second son, Arthur Hughes, was born in 1852, and died, like his brother, in 1917. He was married to Augusta James, with whom four daughters were born.

Ivor Edward, born in 1855, was the third son of John Hughes. He died in 1917 in London.

Another child in the Use household was Albert Evellyn (b. 1857), who died in 1907 in London. His daughter was Kira Hughes, who was married first to the Russian Sergei Bursak, and then to the Englishman Ambemarle Blackwood. She had children from both marriages.

The youngest children in the Hughes household were David and Owen Tudor.

In addition, John Hughes had an illegitimate son, Ivan, born in 1870 and died in 1910. He had nine children.

John Hughes' hobby

John Hughes's main hobby, in addition to engineering, was collecting. He spent a significant part of his fortune on the acquisition of various valuable relics. He constantly maintained contacts with antique shops.

By the end of his life, John Hughes had amassed quite an impressive collection of antiquities.

John Hughes' legacy

It is difficult to overestimate the legacy that John Hughes left behind. He was the first to put the metallurgical industry on an industrial footing in the Donetsk region and made a significant contribution to the development of coal mining and mechanical engineering. But, most of all, he is known to our contemporaries as the founder of the city of Donetsk.

At the same time, we must state the fact that we know too little about John Hughes’s youth, his personal life, and his motivation when making important decisions.

In memory of John Hughes

Even during the life of the British industrialist, a workers’ village was named after Yuz, which in the future became the center of the entire Donetsk region. By 1884, the population of this city numbered almost 5.5 thousand people, by 1897 - 29 thousand people, and by 1918 67,000 people already lived in Yuzovka.

But after the October Revolution, government circles tried their best to obscure the role of Yuz in the development of the region, since, in their opinion, a foreign capitalist was unworthy of people's memory. In 1924, it was decided to rename the city of Yuzovka to Stalino. In 1961, the city acquired its current name - Donetsk.

After the fall of the communist regime, it became possible to rethink the past. The British industrialist was finally able to take the place in Russian history that he deserves. In September 2001, a monument to John Hughes was unveiled in the Voroshilovsky district of Donetsk. The author of this creation is the Ukrainian sculptor Alexander Skorykh.

We continue to slowly translate and publish parts of Theodore Friedgut’s book, this bible of local historians of the 90s. Over the past years, so much has been unearthed in the history of the city that Friedgut never dreamed of. Nevertheless, the book remains a fundamental work that incorporates many sources. The translation was done on a voluntary basis by Victor Griza. We are dealing with the second part of Chapter 3, “New Russia is entering a time of maturity: economic development before 1914.” was published a little earlier...

Although steam-powered equipment became widely used in the Donbass only in the 1890s and in small units, Yuz had steam power from the very beginning. Their installation, however, took some time, for when an inspection commission of three engineers holding responsible positions in the Donbass visited Yuzovka in June 1871, they emphasized that steam engines, although present, were not yet working at the Livensky and Smolyaninovsky mines, that the horse-drawn lifts were poorly constructed, and that deliveries and loading of the blast furnace with materials and coke were done with the help of horses rather than machines. Three years later, the situation has changed markedly. Hughes had twenty-two steam engines with a total output of 791 horsepower working in the factory and mines. To understand the significance of this, we can compare it with St. Petersburg ten years earlier, when the total power of all the capital's machinery and metal factories was 1,125 horsepower. By 1884, the plant and mines were already using forty-four steam engines with a total output of 3,239 horsepower. There was a doubling of not only the number of engines, but also their maximum power. By 1908, the Novorossiysk Plant used 22,520 horsepower, or 3.72 horsepower per employee. In the years 1890-1908, the average power at the enterprise in southern Russia increased from 1530 to 8003, while at the same time the horsepower per employee increased from 1.02 to 3.23. Electricity later became a replacement for steam, and by 1916 the Novorossiysk Plant was using almost 28 million kilowatt-hours a year, and its generators were running at 68 percent capacity—the highest efficiency in the Donbass.

The first years of the new Russian plant were not always successful. Lebedev was far from alone in his criticism of the quality of Hughes's products. In September 1873, the first month of rail production at the Novorossiysk Plant, Lebedev reported that "most" of the rails produced did not meet railway standards, and again in October he wrote that "the rails have not yet been accepted." Of the first 180,000 pounds of rails produced, one third was rejected. By 1874 the failure rate had dropped to 10 percent, and by 1876 to 5 percent. The adaptation process was repeated with the transition to steel rails, but tests of a batch of 2,000 rails delivered to the Kursk-Kyiv Railway in the spring of 1892 failed only 2.65 percent. Hughes' insistence on improving quality was supported by technical investments. We have already mentioned Albert's training as a chemist. The chemical analysis laboratory was one of the first innovations of the plant. By 1902, the laboratory was housed in a two-story building with workspaces for a staff of twenty people.

The delays due to the false start of the blast furnace, predictable and understandable under the circumstances, must have caused financial and nervous strain. Yuzu was certainly aware that there were doubts about his blast furnace's ability to produce one hundred tons weekly, even though it was a greenfield operation. Critics also adamantly stated that his coal reserves were inadequate and accused Hughes of not knowing or doing enough, having deceived the Russian government. In their conclusion, they confirmed the potential of the region, the presence of coal and ore reserves, but emphasized that in any case, the economic success of the enterprise is currently based on the head of it “a person with good knowledge of the matter, having strong authority.”

Even after Hughes and his collaborators provided ample evidence of their ability to master the production of cast iron, the skeptics were not silent. The three years of difficulties associated with the transition from cast iron to steel rails were clearly reflected in the production figures as they were on the financial balance sheet. Production fluctuated dramatically from month to month as technical hiccups, equipment breakdowns and labor turnover plagued the plant and mines. Lebedev's report on production for 1878 strikes a delicate balance with striking contrast. Coal production averaged 693,000 pounds per month throughout the year, peaked at 881,871 pounds in May, and fell to a low of 490,338 pounds in October. Iron production fluctuated similarly. Rail output reached 109,121 pounds in February, then dropped to 12,609 in May, recovered to 75,961 pounds in August, and then fell to zero in October. In such conditions of financial planning and economic use of labor resources, the toughest and most experienced entrepreneurs would be at a loss. In March 1884, production slowed and credit ran out. The company was desperately looking for a loan of 200,000 rubles to fulfill its current obligations, while awaiting the arrival of an advance payment for an order for rails amounting to about two million poods.

Coupled with additional technical difficulties, these problems provided opportunities for caustic remarks about Hughes. Zilov noted that in St. Petersburg in the spring he heard only one topic: “Only from ore from Krivoy Rog or Korsak-Mogila will Yuz be able to produce steel of the quality required by the Ministry of Railways.” Ore from the vicinity of Yuzovka was considered unsuitable for the production of rail steel due to its too high phosphorus content. Lebedev's telegram with a report on the successful production and testing of rail steel resolved this dispute: "The issue of producing steel rails from local ores and coal can be considered resolved."

Although acceptance was still a long time coming, each step forward brought new respect. The successful production of steel rails from Donbass materials prompted A. F. Mevius to comment: “One cannot help but praise Mr. Yuz for his concrete achievement in his desire to improve and expand his production ... recent experiments at the Yuz plant have eradicated the opinion that our ores are not suitable for production of them steel rails. This is a very, very important fact at this point.”

Both progress and potential were evident from the very beginning. Among the points of Hughes' agreement with the Russian government was the reduction of Russia's dependence on foreign sources for strategic goods and the expenditure of foreign currency for this. The Russo-Turkish War created additional demand for metal products, and straining Russia's finances, made the growing Yuza plant even more profitable. In the first year of production, the Novorossiysk Plant ranks ninth in the Russian Empire. By 1898 it was considered the largest producer of pig iron in Russia, with production costs said to be very low for the country.

In contrast, there is an opinion that the prices set by Hughes in 1877 are quite high compared to the costs of production and that in 1880 costs and high prices are one of the factors limiting the success of Hughes in the Russian market. At the same time, speaking about Pastukhov’s production in certain years between 1874 and 1892, it must be said that Pastukhov, who had enormous technical difficulties with his technique of using anthracite in his blast furnaces, experienced great difficulties in production and at no point did not approach the achievements of Hughes.

Yuz's production was far ahead of Pastukhov's, which in 1892 produced only 614,000 pounds of pig iron, one tenth of Yuzov's finished production volume. Until 1895, Yuz employed more workers than Putilov, and the plant became the largest industrial employer in Russia. Yuz's productivity was even noticed by the young radical scientist V.I. Lenin, who studied the development of capitalism in Russia, who noted that Yuzov's industry produced twice as much as all sixty-three industrial enterprises of Yekaterinoslav, and employed twice as many workers.

Hughes based the economic health of his plant on the relatively strong demand for cast iron and rails and was hesitant to move into specialty metals, such as roofing iron, that other manufacturers found so attractive. This apparent conservatism drew sharp criticism from French analysts, one of whom noted that "from an industrial point of view, the business was poorly run, without decisiveness and even without foresight." However, Novorossiysk Society was one of the two most profitable enterprises in the Donbass. At the height of the golden decade of the 1890s, the Novorossiysk Plant boasted a balance sheet with total assets twice the value of the shares that were issued, although they had already been twice divided so that each shareholder enjoyed four times the par value. than the funds originally invested. In addition, half of the company's value was in the form of cash, accounts receivable, and materials inventory stored at the plant, and this outweighed the company's debts and liabilities.

An early visitor, noting the company's self-sufficiency in raw materials and the good quality of its labor, was surprised that the Hughes brothers, who had followed their father's policies when they began operating the plant after his death in June 1889, did not deviate in the search for new products. He wrote: “Mr Hughes recently told us that he is shying away from trying to boost his profits with new installations and large debts. The plant is operating and generating profits, which he reports with satisfaction.” The visiting analyst also managed to find out that the entire development of the plant was subordinated to the current operating cost. These comments were written just after shareholders used a stock split and the next one was around the corner, while the annual dividend was 25 percent. Even during the industrial crisis of 1900-1904, annual dividends of 10 percent were declared, as there were sufficient reserves accumulated in the second half of the 1890s to finance the necessary development, despite the decline in current profits.

Period Annual profit Annual dividends Reserve

1886-91 1,323 1,107 216

1892-96 3,331 1,357 1,331

1897-1900 7,437 1,928 4,062

1901-1904 3,188 3,000 188

The sons followed their father's policies not only in industrial policy. They learned from him to keep their mouths shut about their business affairs. Sometimes it seems, according to visitors, that the brothers had a keen sense that their visitors wanted to hear and enjoy stories about the trials, tribulations and, in particular, the achievements of the Novorossiysk Plant. But when it comes to business, the less said the better. Gonimov suggests that Yuz used folk jokes as a smokescreen to hide his commercial and industrial secrets. This technique sometimes worked like a boomerang, as in the case of the Zelentsev commission, when the commission members counted the number of persons they saw working in various parts of the enterprise and compared their observations with the figures given to them by Hughes. "Juz is not very helpful and refused to give almost any accurate information." "We had to visit the plant without a guide and were not given quantitative information. The report, published officially in the Finance Bulletin, is a balance sheet distorted by the inclusion of 'reserves' and 'miscellaneous provisions' under the heading of creditors."

Credit Lyonnais analysts visited Yuzovka almost every year, and were virtually unanimous in their disapproval of the administrative path of the Novorossiysk Society. “There are no new mining concessions, those that were acquired and reserved are being depleted, and meanwhile production is increasing... starting next year they will have to buy coal.” At the same time, the company explored the possibility of exploring iron ore in the Urals and delivering it from the Chelyabinsk-Tsaritsyn Magnetic Railway. Only a few years later, in 1903-1904, in the “Novorossiysk Society” there were more than a hundred people (which was about 1/5 of the figures in Krivoy Rog), who were geological exploration workers needed to develop new ore deposits and increase its iron ore base. As a result of this far-sighted policy, the Krivoi Rog ore deposits were revalued upward throughout this period, new mining methods were introduced and new ore deposits were discovered. As for coal, the statistical yearbooks of the mining industry show a sharp decline in production after the turn of the century, but also show the further development of Russia's new coal mines, from eight coal shafts in 1899 to eleven in 1905, while power rose from 5,400 horsepower in 1899 to 7,435 in 1905, and the labor force from 5,658 miners to 6,524. Coal production increased from 43,598,376 pounds in 1899 to 46,536,881 pounds in 1905, at the same time that the industrial crisis caused a decline one quarter of pig iron production. Without a doubt, the company's development policy was consistent and promising, which was supported by the self-sufficiency of the Novorossiysk Society.

During the first ten years, Novorossiysk Society was declared without dividends. This was attributed to the use of low-grade local iron ore and unskilled labor, both of which contributed to high production costs. However, when we look at Hughes' economic development strategy, we see that it was his policy to reinvest profits in development, avoiding as much as possible any savings and the burden of paying interest or wider capitalization. He was not a “cash cow” in the form of Novorossiysk Company for shareholders. The company's shares were not listed on the stock exchange, and there were no additional shares available to the public, although the shareholder register grew slightly during the year, with some British and Russian individuals opting to purchase a small number of shares from the company's unallocated balance.

In 1895 and again in 1900, shareholders used stock splits so that each shareholder who had an initial share now had four shares. It was not until 1898 and 1899, at the height of the Witte Decade and its frantic industrial expansion, that the Novorossiysk Society would issue a twenty-year, 5% bond issue totaling £300,000. In 1910, a new issue of bonds for 600,000 pounds sterling with a yield of 6 percent, with early repayment of old bonds, and preparation of the company for renewal of development. During the decade 1903 - 1912, over nine million rubles were invested in the Novorossiysk Society, more than half of this in the period 1910-1912 - due to funds raised through new bond issues. Previously, half, during the seven lean years of a difficult decade, had been financed from current revenues and reserves, despite recession and revolution.

Although other factories in the Donbass were now producing more than the Novorossiysk Society, its economy was loud and continued to grow. Much of this was due to the personal involvement of John James Hughes and his sons after him, as well as his active partners, members of the Balfour family, who helped raise capital for the Novorossiysk Plant and remained associated with the company throughout its history. A.M. Balfour was the director of the company until his death and lived in Yuzovka as the company's commercial director until 1912. His son, Montague, also lived in Yuzovka, and took a special interest in the Novorossiysk Society model farm, having studied agriculture in Canada before settling in Yuzovka. The Balfours' participation in the development of the Novorossiysk Society plant was reflected in the name of one of the railway stations near the plant, Balforovo. Until 1905, brothers Yuz and Montague Balfour lived in Yuzovka, managing a factory. They then moved to St. Petersburg, where three of them remained almost until the revolution, while John Anderson, an Englishman born in Russia, who had considerable experience in the metallurgy of Donbass, and later a Russian manager, Adam Alexandrovich, took over the management of the plant. Svitsyn, who remained the head of the plant in 1917 through both the revolution and the civil war, leaving his post only after the Bolsheviks took control of Yuzovka in mid-1919. But his connection with Donbass metallurgy did not end after that. There are archival documents testifying to a meeting at the Moscow headquarters of Yugostal on September 9, 1926, at which the proposal of an American entrepreneur to modernize the Makeyevka steel plant was discussed, chaired by A. A. Svitsyn. The coincidence of the surname, initials, and profession gives a high probability that it was the same person.

“Novorossiysk society,” one might say, came of age in 1896. Having made a major contribution to the development of the Russian coal and metallurgical industries, it was recognized for its excellence at the All-Russian Industrial Exhibition in Nizhny Novgorod in the same year. The recognition was formulated as follows: "For the development and production of high-quality steel rails; for the large scale of coal mining and the rational development of the coal industry in all respects; for underground unloading with the help of compressed air, as well as for the ventilation of mine workings using working panels that promote, thus evacuating explosive gases." In addition, which we will discuss later, Hughes received high marks for housing for its workers.

Participants in the mining industry congress, among them the Yuz brothers, invested considerable funds to create an impressive exhibition. Everyone could use this event for self-education. E.N. Taskin, at that time the head of the mining administration of the South of Russia, arranged for the entire Donbass exposition to be illuminated with electric light, which was used only in a very limited number of mines at that time. Thus, he thought to impress industrialists with the superior qualities of electric lighting.

In the 1890s, the Novorossiysk Plant lagged behind firms such as the South Russian Coal Company and the Donetsk-Yuryev Steel Plant in its use of electricity. In 1887, a 350-horsepower engine was running in a rolling mill, and one was twice as powerful. By 1898, the plant's machine shops were illuminated by electric light as part of the solution. By 1916, the plant was using only 10,346 horsepower of electric motors, half of its total power source. In the Shcherbinovka mine, electric motors were used to move coal cars in the workings, as well as to operate pumps and fans at depths of up to 180 meters.

The "Novorossiysk Society" at the exhibition had its own display, a kind of Greek temple, whose fluted columns of vertical steel rails supported a ceiling of layers of iron beams, and there was ample wrought iron decoration. Here, the housings of mine lamps were built from folded ingots of graded iron, and with pieces of coal. Inside the temple was a platform with an elaborate wrought iron panel, topped with the company name and the symbol of crossed hammers on a shield. This holy of holies was guarded by two elves, reminiscent of the mascots of Russian industry - one a miner producing output, the other a blacksmith with a hammer and anvil. Photographs of factories and mines hung everywhere, and there were large-scale models of factories and coal mines. At the entrance to the exhibition there was also a potted palm tree made of iron.

Eight groups of fifteen workers were selected based on outstanding performance to stay at the fair for two weeks and were given half a ruble daily allowance. It was later stated that some of these workers contacted revolutionaries in Nizhny Novgorod and brought illegal literature to Yuzovka.

In the description of Yuzovka given in the exhibition catalogue, the idyllic features of the settlement are perhaps overestimated: a park with an artificial lake for fishing, an orchestra, sewerage on the village's facilities - are described in vivid detail and in the best light. The decent burgher who took the catalog hardly felt the smoke, dirt and poverty that still remained signs of the settlement. However, Yuzovka was a living and growing village in which the population was united by pride and common interests. By the turn of the century the economy began to diversify. Yuzovka was still a factory town, and the Novorossiysk Company was the only determining factor in its growth. Of the 23,076 residents of the village, 12,782 worked at the Novorossiysk plant and mines. The company's annual payroll amounted to about 4,000,000 rubles.

As soon as Yuzovka became the “central nerve” of Donbass, more and more enterprises operating at the intersection of the mining and metallurgical industries began to establish their branches here. For example, a branch of the Moscow firm Dynamo offered electric and pneumatic jackhammers to the market, and Russia's only licensee of Wolf lamps, used safely by miners throughout Europe and America, also established its headquarters for the distributor. Mine cables, first imported from Britain and then from a plant in Poland, began to be produced in Yuzovka at the Lobasov brothers’ enterprise, one of the six largest in Ukraine. In addition to the establishment of mining and plant equipment firms, commercial organizations such as the Singer Sewing Machine Co. also emerged. They were motivated not only by growing domestic demand among the population and rising living standards, but also by the existence of a local clothing factory and the production of leather aprons, work gloves and boots, which were in active demand throughout the Donbass. The lumber trade was also important, serving housing construction and the production of mine supports; there were two and later three sawmills in Yuzovka. The twenty-six stores that existed in 1884 grew to more than a hundred in less than a decade. By 1891, in Yuzovka there was also trade and repair of agricultural implements, production of their simplest types, but most of such work was carried out in Bakhmut.

Arthur Yuz presented the following list of commercial, industrial and cultural prerequisites existing in Yuzovka according to the 1897 census, from which we can imagine the character of the city and the cultural and material needs of its inhabitants. Religious institutions consisted of one church, one chapel, three houses of worship and two synagogues. The Novorossiysk Society maintained three schools in addition to a church school, a Brotherhood school, one private school, and two Jewish schools. In addition to the NRO plant and mines, there were: horse breeding (on the farm of the Novorossiysk Society in Peski), 3 soap factories, 3 baths, 3 kerosene warehouses, 3 lumber warehouses, 3 warehouses for sewing machines, 1 carbonated water production, 1 printing house , 3 photo studios, 3 warehouses for agricultural machinery, 57 permanent stores, 155 temporary stores, 112 stalls, 12 shoe stores, 2 cooperatives, 5 inns, 1 vodka wholesale warehouse, 1 hotel, 10 wine cellars and 4 pubs. Yuz also celebrates a market every Sunday and two annual fairs, one held after Easter and the other on September 14th. Weekly bazaars attracted up to ten thousand visitors from nearby communities. From this list one can easily understand the reverence and enthusiasm with which workers and travelers perceived this “Metropolis” in comparison with the bare steppe, poor villages, and isolated mining settlements scattered for tens of kilometers around. The poverty and dirt that existed in Yuzovka, however, remained signs of the growth of the capital of Donbass.

The commercial turnover of Yuzovka in 1884, excluding alcohol, amounted to 347,400 rubles. At the turn of the century it was one million rubles, and in 1910-1913, significant prosperity came: the annual commercial turnover averaged more than eight million rubles. The Bosse and Gennefeld plant employed 50 workers in 1889 to employ 210 workers a decade later. Two fairs, at which manufacturers offered leather goods, clothing, agricultural products and livestock for sale, had a turnover of 315 thousand rubles in 1904.

With the outbreak of World War I, a large-scale extraction of various by-products of coal coking - oil, benzene, creosote, etc. - began on a large scale. Evans Koppe Co. created such a plant in Yuzovka, and the South Russian Company had an installation for the production of lubricants. It was natural that the Novorossiysk Plant expanded during the war, adding workshops for artillery shells, which provided additional jobs for women in the village.

Zemstvo documents of 1884 noted that Yuzovka did not have banks or credit institutions of any kind. But as a result of trade and industrialization, banks came, first of all the State Bank, then commercial banks, so that by 1914 there were already five of them. In 1904, Yuzovka was removed from the zemstvo justice system, when, despite the uncertain status of the village, the City Court was created.

Communications moved forward quickly. Postal and telegraph offices came with the railroad. The railroad was the main artery of communication, and "railroad stations, so rare in other regions of Russia, are found here like bazaars. In the third class they discuss the latest strike, and how the contractors and technicians and the police are robbing the workers."

During 1908, 32,205 workers were transported by train to Yuzovka and Mushketovo stations (to which a railway line was built), 15,641 to Gorlovka, and 30,000 to Yenakievo. For Yuzovka this was comparable to the entire population of the village; for the other two stations it was much more than the entire local population. It is obvious that the movement of human resources and social communication generated by the growth of Donbass was a serious step towards the modernization of Russian society. A look at the map shows what the specific density of the railway network around Yuzovka was at that time. In addition to the original branch to the Konstantinovskaya line, a new four-verst line was built to Mushketovo to the southeast. A report from 1902 states that the Novorossiysk Society had 89 miles of internal communications railways and was connected to Yuzovka and Mushketovo. The company's own rolling stock consisted of 25 locomotives and 250 flatcars and gondola cars, as well as nine narrow-gauge locomotives at the plant. Traffic in and out of the plant was so heavy that the main lines leading through Yuzovo had to be rerouted to bypass the station and thereby help avoid congestion caused by Novorossiysk Society's freight traffic.

The phone also added improvements to communications in Donbass. Many of the mines and factories had their own internal telephone systems, and by 1900 a comprehensive telephone network was planned for Bakhmut County into which they were to be integrated. 146 potential subscribers could be connected with each other and with Kharkov and this project cost 387,080 rubles. He demanded an annual service fee of approximately 30,000 rubles, that is, 1,736 rubles from each subscriber to create the system and 134.50 rubles per subscriber per year for service. Of course, this was an important step in overcoming the isolation of mining communities and strengthening the network of social communication, which until then had relied on railways and telegraphs. It should be noted, however, that the telephone served only the commercial and industrial class of society and was still far from being a means of mass communication.

While developing and diversifying throughout this period, Yuzovka remained virtually unchanged in terms of its political, economic and social structure. Its growth was subordinated to the will of the Novorossiysk Society, and, ultimately, to the Yuz brothers. The generally accepted view in the Donbass was that personally governing local directors with full decision-making powers were critical to success in Russia's unstable financial and political environment. This type of management was dominant in the NRO. As noted in 1889, "The Yuza plant is characteristically English, and you may get the impression that it has been carried over from one of the mining districts of South Wales. With the English comes business first, and beauty and elegance are secondary." Anthony Wallace proposed a general framework for the social structure most conducive to innovation, consisting of three specific and two general characteristics.

Three specific characteristics:

1) the presence of surviving two or more generations of continuous personnel allows the accumulation of technical knowledge and information;

2) control over resources - capital, land and labor,

3) reinvestment in “best practices” related to supporting innovation.

Two general characteristics:

1) general atmosphere of technical innovation,

2) a porous social structure in which one can rise from a lower class to an upper class and can take part in innovative activities.

Without a doubt, the Novorossiysk Society existed within such a framework of work.

For twenty years Hughes personally directed the company and an additional twenty-five years of active participation by his sons were marked by a clear continuity of policy. As we have seen, self-sufficiency of resources and the creation of an experienced, stable workforce were Yuz's main goals when founding Yuzovka.

As a pioneer in the Donbass, Yuz introduced the technology, transforming the dominant mode of production in the region. Moreover, his support for innovation is not limited to production technology, but also includes the social structure of Yuzovka. As we will see in the following chapters, where other industrialists faltered in trying to preserve the peasant way of life while employing those peasants in industry, Hughes' practices in housing, health, and education laid the foundations for an urban culture. Although many of the coal producers ignored technology, there can be no dispute that the general atmosphere in Russia at this time was one of the most dynamic in technological progress. The railroads, created by coal and steel, did replace the flesh and blood of peasant labor. This change was all the more dramatic because it occurred against the backdrop of concerted efforts to prevent this kind of social change. Thousands of peasants became workers, and some of them actually entered society. However, great efforts were made by the regime to retain them and preserve the old structure. The preservation of the values ​​and structure of the old regime was largely due to the inadequacy of the upper classes in turn in relation to industrial production. Too often they brought into this new field of enterprise all the indolence of the narrow worldview which was so harshly criticized in the affairs of the Russian landowners. The rigidity of the social structure was the weakest link in the chain of development of the industrial Donbass.

In 1870, a new “City Regulation” was introduced, which gave municipal self-government new rights and beginnings. Ale, as before, behind the marriage of pennies, the new Duma and the City Council could not earn much for the improvement of the place. “Being an ordinary provincial town, almost weak, it suddenly and unexpectedly comes to life.”
Who and how has he revived?
He was revived by two figures who were good in the history of our region. They were the Englishman Hughes and the local citizen Alexander Pol.
D.I. Yavornitsky

Hughes, John James
(1814, Merthyr Tydfil - 1889, St. Petersburg) - British industrialist, founder of Donetsk, which was called Yuzovka until 1924 in honor of the founder.

The son of an engineer who heads one of the metallurgical plants in Merthyr.
In his youth he worked under his father. At the age of 28 he bought a shipyard.
At the age of 36, he acquired a foundry in New Port. At the end of the 50s he entered as an engineer at the Millwall Iron-Rolling Plant in Great Britain and in 1960 became its director. In 1864 he designed a carriage for heavy guns; this artillery installation entered service with the navies of a number of European countries. Develops armor recipes for plating ships and fortifications.

At the age of 55 he appears in Russia. In 1869, Yuz bought land from the Russian prince Kochubey in the Yekaterinoslav province on the banks of the Kalmius River and began construction of a metallurgical plant with a workers’ village near the village of Aleksandrovka. To develop coal, he founded the Novorossiysk Society of Coal, Iron and Rail Production. The first cast iron began to be smelted in 1872. The plant operates on a full metallurgical cycle, here, for the first time in Russia, 8 coke ovens were launched, and hot blast was mastered. The plant founded by Yuz became one of the industrial centers of Russia and then Ukraine.

In 2001, a monument to John Hughes was erected in Donetsk.
Also in Donetsk, the dilapidated house of Yuz has been preserved.

Wales, the fertile land of the United Kingdom, in addition to its countless reserves of coal, has also become famous for its remarkable Welsh eccentrics...

But for us, Ukrainians, perhaps most interesting will be the resourceful entrepreneur John James Hughes (Hughes), who in 1869, at the age of 55, with his entire large family (wife and eight children), servants, and belongings, settled in the naked Donetsk steppes. He buried several million silver rubles there and built a village with a metallurgical plant in two years. Now this settlement is nothing more than the capital of the mining region, Donetsk.

What made the British subject in a hurry to leave dear, kind England and stake out a place in the wide Ukrainian steppe? Of course, her wealth! An inquisitive Welshman learns about the ore treasures of Donbass from a monograph on the exploration of the subsoil of the Le Play region. Absolutely trusting the French geologist, Hughes nevertheless decides to double-check the results of his scientific research with his own hands. He takes as his assistant the local shepherd, an expert on the surrounding area and local attractions, I. Drevitsky. Together they shovel more than one ton of rock and drink more than one drink of vodka. As a result, a plant project with a full metallurgical cycle arises.

Yuz did not like to hesitate. Therefore, right off the bat, I set about implementing my plans. With amazing ease, he overcomes bureaucratic barriers and receives permission from the tsarist government to build a metallurgical plant. The Chairman of the State Council, Grand Duke Konstantin Petrovich, provides him with considerable service in this regard. The prince already had contact with the Welshman when he supplied the Russian government with weapons and armored steel for the warships of the autocracy.

It must be said that Sir John appeared in the Russian Empire already burdened with the fame of a talented entrepreneur. At the age of 28, he buys a shipyard on occasion and, much to the chagrin of his competitors, proves himself to be a very energetic and extremely efficient businessman. After a couple of months, Yuzu barely manages to place orders for the construction and repair of English ships in his capacious portfolio. At the age of 36, the restless Welshman acquired the Ukside Engineering foundry in the south-east of Wales in Newport. From that moment on, all his attention was absorbed by the production of metals and alloys, their mechanical and chemical processing.

And yet, John Hughes gained fame as a talented inventor thanks to the carriage he designed for heavy guns in 1864, called the “Hughes stringer.” Subsequently, this artillery installation entered service with the navies of a number of European countries. This fact forces Russia to modernize its fleet. The famous Welshman is invited to Northern Palmyra. They put the rearmament and armoring of military ships on his shoulders. Hughes copes. The foreigner’s unusually conscientious attitude towards the assigned work and zeal for work conquer the tsarist government and the Grand Duke. At the highest level, a decision is immediately made to further use the experience and capital of the enterprising Welshman.

This time, John Hughes is offered to strengthen the Constantine fort under construction in Kronstadt, improve the Kolpino foundry in St. Petersburg, and create a modern metallurgical production in the Donbass. In its joy, it even forgets that a concession for the construction of mining and metallurgical enterprises in the Donbass has long been promised to local businessman Prince Kochubey. Many believe that Sir John will back down, but no, the presence of a competitor only speeds up the implementation of his plans.

In 1864, the founding conference of the Novorossiysk Autonomous Okrug took place. John James Hughes is appointed managing director of the company by a majority vote. His personal contribution to the joint stock company account is 50 thousand pounds sterling.

The market conditions prevailing in the autocracy forces the Welsh to fork out money. The Empire is sorely lacking cast iron (railroad) and high-quality metal. Therefore, the tsarist government strongly encourages entrepreneurs who founded metallurgical plants. They are freely provided with government orders for railways being built throughout the kingdom. Sir John, as a man with sober calculations and the ability to guess the future, understands perfectly well that all his expenses will soon pay off with interest. The presence of mines with high-quality coking coals, limestone, the close location of Krivoy Rog iron ore, cheap labor - all this promised him high profits at moderate costs. Looking ahead, let's say that in 1889 John Hughes's personal fortune exceeded 90 thousand pounds sterling.

Sir John shows the abilities of a psychologist. Knowing about the uncontrollable passion of officials for cash, he successfully uses this sinful attraction for the benefit of the development of the national economy and the development of the natural resources of the region. The gratitude of the authorities was not long in coming. In mid-April 1869, the tsarist government gave the green light to the appointment of John Hughes as managing director of the above company in the Russian Empire. As a result, Sir John becomes a monopolist in metal production in the south of the country.

Yuz decides not to delay the revitalization of the vast feather grass steppes of Donetsk. Less than six months have passed when, on behalf of an impatient Welshman, a blast furnace master, together with a hundred skilled workers, brings factory equipment from Foggy Albion to the Donetsk region. In April 1871, the first furnace of the Yuzovsky metallurgical enterprise was blown out. Unfortunately, due to the imperfection of the system, the blast furnace had to be stopped after three days. It needed a complete rebuild. But, as they say, there would be no happiness, but misfortune helped. During the reconstruction, Yuz managed to improve the operating mode of the furnace, adjust the blast, improve the composition of the charge, and, most importantly, he was the first in Ukraine and Russia to use coke in the metallurgical industry. But the full implementation of his grandiose plans was prevented by a bony woman with a scythe.

John James Hughes died in the summer of 1889 at the Angliter Hotel in St. Petersburg. His sons inherited a good inheritance: a metallurgical plant, ten coal mines, a railway line connecting to the Catherine Iron Works, a brick factory with quarries of limestone, crushed stone, sand and clay, a coking factory, and 90,000 pounds sterling. Well, to us, grateful descendants, he left an entire industrial village called (until 1924) Yuzovka, which has now grown to the capital of the mining region, the city of Donetsk, equally known to the whole planet for its industrial, sports and cultural potential.

“Gentlemen, local historians, I have seen a lot of different things over the years that I have been studying the history of Donetsk. But I have never seen anything like this before! Some people are haunted by the laurels of REN-TV, but in order to say smart things, you need to have smart things in your head knowledge, not bullshit!

You won't find anything on the Internet. For example, two videos about the alternative history of Novorossiysk society. It proves that in fact, the history of the Donetsk Metallurgical Plant began not in 1872, or even in 1869, but much earlier. And that John Hughes dug up some more ancient production, on the skeleton of which he created everything for which he became famous. I'm not kidding.
The total duration of the video is 69 minutes 10 seconds. For those who want to save an hour of their life, I will briefly retell the content of both episodes. Well, more precisely, not the content, but the concept. Unfortunately, I still don’t understand the author’s name. On YouTube, his channel is designated as “Circle of Life”.
The main idea that the author promotes is that on the territory of Donetsk, even before Yuz (and, most likely, long before Yuz), there was some kind of production (possibly also metallurgical).
Otherwise, it is absolutely incomprehensible to the author why Yuzu would come to mind to found a plant in a place where there are no iron ore deposits. Well, everything is clear.
Yuz went to the banks of Kalmius because he already knew: there used to be some kind of production here.
Where did it go? It was buried under the layers of time. The author defends this idea, using well-known photographs from Yuzov’s times and interpreting them in his own way. Proving, in particular, that the buildings, pipes and other objects depicted on them sit too deep in the ground - which means they were built before the South.
How did Hughes know about the existence of this buried plant? First of all, from ancient manuscripts, which were a great hunter to collect. Developing his idea, the author proves in every possible way that the entire history of Novorossiysk society known to us was falsified.
Defending his thoughts, he shows enviable energy and assertiveness, not particularly paying attention to the rough edges that arise along his path. We did not intend to do a serious analysis of his video, but we will note two points - just for the sake of example.
In the first episode, demonstrating the action of the Novorossiysk Society, he draws attention to the fact that the date there is 1862. This serves him as further proof that the history of the NRO is a complete falsification (after all, they have always proven to us that the NRO was founded in 1869). At the same time, the author simply ignores the point that 1862 for shares is just the date of a parliamentary decree regulating the functioning of companies in the UK.

In the second series, the author makes a reference to the area, starting from a photograph of Yuz’s house. At the same time, he takes a photograph of Yuz’s old house, and makes a reference, starting on a modern map from the new one - that is, from the Yuz/Svitsyn house. Well, that's it, little things. But the idea - yes! Impressive. So, overall, the film is useful, primarily because it can truly entertain you!

There is even more nonsense about the buried houses. The author is unimaginably far from architecture and from construction and from the architecture of industrial villages. Looking at a photograph of Hughes's first brick factory, he manages to compare the height of its pipes with the height of the pipes of coke oven batteries built much later.

Secondly, he is clearly not aware of such a construction method as a dugout. Nobody BURIED the house. A hole was simply dug in the earthen slope, the roof was covered and one end wall was laid - that’s it, the building is ready! Cheap and cheerful!. Later, some of these dugouts were lined from the inside and raised above the ground, but this is not necessary.
Thirdly, the author is clearly not aware that the plant was originally built in a basin through which a number of beams flowed.
Those. all these kochugurs, which he calls excavated soil, are:
1) natural slope,
2) soil removed during the construction of dugouts,
3) blast furnace slag, which was poured around the plant very chaotically.

Fourthly, the author uses photographs of the plant when a radical modernization was carried out. Rows of old workshops were demolished and new ones were built. Even Yuz's first house did not survive.
Fifthly, you can’t talk nonsense about construction technologies using your own feelings. If no one told the “builders” he personally knew about the technology of construction from rubble stone, this does not mean that half of the houses in the city were built by Atlanteans.
If necessary, I can tell you how it was built from rubble, all the pros and cons of this technology, and also why it was later abandoned and forgotten as outdated.
There are no terrible secrets here. It’s just that the author of the video is a narrow-minded person!”

- founder and director of the plant of the Novorossiysk Society (Yuzovsky Plant), a major figure in the establishment of iron production in Russia.
An Englishman by birth, Yu was born in 1814 in the city. Merthyr, in South Wallis, and was the son of an engineer who was in charge of one of the metallurgical works.
Having received an excellent education at home, Yu entered the Cafarter plant, where his father served at that time. Having become practically acquainted with the metallurgical business at this plant, he moved to the Ebbewell plant, and then founded his own mechanical factory in Newport.
With his remarkable abilities, he quickly put the matter on a solid footing. By this time, he built the first direct-acting lifting machine in England.
Having then entered the Millwall iron rolling mill in the late 1850s, he was already appointed director in 1800.
Here, by the way, he invented the famous “Yuzov” carriages for long-range guns.
Then, according to Yu’s thoughts, the Millwall plant began preparing armor for plating ships and fortifications.
Around that time, the Russian government decided to strengthen the fort “Constantine” in Kronstadt with armor and entered into negotiations with the English Millwall plant on this issue.
During these negotiations, Yu became close friends with General Totleben and Colonel Gern.
The latter invited him to take over the execution of the contract concluded in 1868 with Prince. Kochubey, according to which the book. Kochubey undertook to build a plant for the production of iron rails in the south of Russia.
Yu went to Novorossiya, inspected deposits of coal and iron ore, then returned to London, formed a solid company of English and Russian capitalists and began setting up a plant in Bakhmut district, Ekaterinoslav province.
In January 1872, the first blast furnace began operating, and a year later the production of iron rails began.
Meanwhile, the Ministry of Communications decided not to use iron rails anymore and decided to replace them with steel ones.
The new plant, or rather its director Yu., set about making steel rails from local materials and in 1879 produced rails that were not only not inferior, but even superior in quality to the rails of English factories.
Having moved to Russia with his entire family, Yu soon fell in love with his new fatherland and sincerely wished it industrial success.
He especially tried to revive the south of Russia, taking the most energetic measures to expand the development of coal and iron ore. His constant dream was to ensure that Russian coal could successfully compete with English in the Mediterranean, and Russian pig iron in St. Petersburg.
For this purpose, he already intended to expand the production of his plant and increase the production of coal to 45 million poods per year, and the smelting of cast iron to 15 million.
However, he did not have to carry out this plan.
Having arrived in St. Petersburg in June 1889 on business related to the above-mentioned plan, on the 16th of the same month he suddenly fell ill and died the next day, being 74 years old.
A monument to his 20 years of activity in the south of Russia remains the beautifully arranged plant of the Novorossiysk Society, around which an entire city with a population of 15,000 grew up during this period. “News and Exchange Newspaper”, 1889, No. 168. – “Son of the Fatherland”, 1889, No. 163. – “New Time”, 1889, No. 4779. – “Russian Calendar” for 1890, p. 254. – “Universal Calendar” for 1890, p. 501. E. Yastrebtsev. (Polovtsov)

Biography of Hughes John

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