Fred Trump
Frederick Christ Trump was an American real estate developer and businessman. He was the father of Donald Trump, the 45th and 47th president of the United States, along with four other children.
Born in the Bronx in New York City to German immigrant parents, Trump began working in home construction and sales in the 1920s before heading the real-estate business started by his parents. His company rose to success, building and managing single-family houses in Queens, apartments for war workers on the East Coast during World War II, and more than 27,000 apartments in New York overall. Trump was investigated for profiteering by a U.S. Senate committee in 1954 and again by New York State in 1966. Donald Trump became the president of his father's real-estate business in 1971. Two years later, they were sued by the U.S. Justice Department's Civil Rights Division for racial discrimination against black people.
According to The New York Times, Fred and his wife, Mary, provided over $1 billion to their children, avoiding over $500 million in gift taxes. In 1992, Fred and Donald set up a subsidiary which was used to funnel Fred's fortune to his progeny. Shortly before his death, Fred transferred the ownership of most of his buildings to his surviving children, who several years later sold them for over 16 times their previously declared worth.
In 1927, Trump [|was arrested] at a Ku Klux Klan demonstration, but there is no conclusive evidence that he supported the organization. From World War II onward, to avoid associations with Nazism, Trump denied his German ancestry and also supported Jewish causes.
Early life and career
Trump's father, the German-born Frederick Trump, amassed considerable wealth during the Klondike Gold Rush by running a restaurant and brothel for miners. Friedrich returned to Kallstadt in 1901, and, by the next year, met and married Elizabeth Christ. They moved to New York City, where their first child, Elizabeth, was born in 1904. Later that year, the family returned to Kallstadt. Fred was conceived in Bavaria, where his parents wished to residency, but Friedrich was banished for dodging the draft. The family returned to New York on July 1, 1905, and moved to the Bronx, where Frederick Christ Trump was born on October 11. Fred's younger brother, John G. Trump, was born in 1907. All three children were raised speaking German at home. In September 1908, the family moved to Woodhaven, Queens.Many details of Trump's childhood come from autobiographical accounts and emphasize independence, learning and especially hard workto the point of being somewhat fictionalized. At the age of 10, Trump worked as a delivery boy for a butcher. About two years later, on Memorial Day, his father died in the 1918 flu pandemic, quite suddenly according to Fred. From 1918 to 1923, Fred attended Richmond Hill High School in Queens, while working as a caddy, curb whitewasher, delivery boy, and newspaper hawker. Meanwhile, his mother continued the real-estate business Friedrich had begun. Interested in becoming a builder, Fred put up a garage for a neighbor and took night classes in carpentry and reading blueprints; he reputedly studied plumbing, masonry, and electrical wiring via correspondence courses, although other biographical sources limit his construction education to the period after high school when he was also working in the field.
After graduating in January 1923, Trump obtained full-time work pulling lumber to construction sites. He studied carpentry and became a carpenter's assistant. Trump's mother held the business in her name until he reached 21, the age of majority. The company name "E. Trump & Son" appeared in advertising by 1924, by which year Trump ostensibly used an $800 loan from his mother to complete and sell his first house. Public records, however, do not support him building until 1927, the year the company was incorporated. Trump purportedly built 19 more homes by 1926 in Hollis, Queens, selling some before they were finished to finance others. Investigative journalist Wayne Barrett posits that Trump exaggerated the length of his career in 1934 while arguing to a federal court why he should deserve to obtain a dissolved company's mortgage servicer and respective assets.
In 1927, Trump was arrested at a Ku Klux Klan demonstration, although there is no conclusive evidence that he supported the organization.
Rise to success
In 1933, Trump built one of New York City's first modern supermarkets, called Trump Market, in Woodhaven, Queens. It was modeled on Long Island's King Kullen, a self-service supermarket chain. Trump's store advertised "Serve Yourself and Save!" and quickly became popular. After six months, Trump sold it to King Kullen.In federal court in 1934, Trump and a partner acquired the mortgage-servicing subsidiary of Brooklyn's J. Lehrenkrauss Corporation, which had gone bankrupt and had subsequently been broken up. This gave Trump access to the titles of many properties nearing foreclosure, which he bought at low cost and sold at a profit. This and similar real-estate ventures quickly brought him fame as one of New York City's most successful businessmen.
Trump made use of loan subsidies created by the Federal Housing Administration not long after the program was initiated via the National Housing Act of 1934, which also enabled the discriminatory practice of redlining. By 1936, Trump had 400 workers digging foundations for houses that would be sold at prices ranging from $3,000 to $6,250. Trump used his father's psychological tactic of listing properties at prices ending in "... 9.99". In the late 1930s, he used a boat to advertise off Coney Island's shore; it played patriotic music and floated out swordfish-shaped balloons which could be redeemed for $25 or $250 towards one of his properties. In 1938, the Brooklyn Daily Eagle referred to Trump as "the Henry Ford of the home building industry". During this period, Trump predicted that he would profit from World War II. By 1942, he had built 2,000 homes in Brooklyn using FHA funds.
During the war, the federal Office of Production Management allowed the use of FHA funding for defense housing in Bensonhurst, Brooklyn, owing to the proximity of the Brooklyn Navy Yard. Trump planned to build 700 houses there, which would have been both his and the state FHA office's biggest project to date, but following the attack on Pearl Harbor and the United States's declaration of war on Japan, the project was dissolved in favor of defense housing at the East Coast's naval nexus, Hampton Roads by Norfolk, Virginia, where Trump was already working on an apartment complex. Congress added a provision to the National Housing Act generating mortgage insurance for defense apartments, through which Trump was allowed to own the properties he built for war workers. By 1944, he had constructed 1,360 wartime apartments, almost 10% of the total created in Norfolk. He also built barracks and garden apartments for U.S. Navy personnel near major shipyards in Norfolk and Newport News, Virginia, as well as Chester, Pennsylvania.
Following the war, Trump expanded into middle-income housing for the families of returning veterans. From 1947 to 1949, he built Shore Haven in Bensonhurst, which included 32 six-story buildings and a shopping center, covering some and procuring him $9 million in FHA funding. In 1950, he built the 23-building Beach Haven Apartments over near Coney Island, procuring him $16 million in FHA funds. The total number of apartments included in these projects exceeded 2,700.
Decades after hiring PR man Howard Rubenstein to generate press about his life story mirroring the rags-to-riches novels of 19th-century author Horatio Alger, in 1985, Fred was awarded the Horatio Alger Award. Radio and television personality Art Linkletter introduced Trump at the ceremony, with Protestant minister Norman Vincent Peale's wife, Ruth Peale, presenting him the award. During his speech, Trump stated that the key to his success was enthusiasm for his work and that he "used to watch other successful people ... that did good and that did bad and ... followed the good qualities that they had". He then attributed to William Shakespeare the saying "Never follow an empty wagon because", pointing to his cranium, "nothing ever falls off". He went on to introduce his surviving family.
Further enterprises
In early 1954, President Dwight D. Eisenhower and other federal leaders began denouncing real-estate profiteers. That June, The New York Times included Trump on a list of 35 city builders accused of profiteering from government contracts. He and others were investigated by a U.S. Senate banking committee for windfall gains. Trump and his partner William Tomasello were cited as examples of how profits were made by builders using the FHA. The two paid $34,200 for a piece of land which they rented to their corporation for $76,960 annually in a 99-year lease, so that if the apartment they built on it ever defaulted, the FHA would owe them $1.924 million. Trump and Tomasello evidently obtained loans for $3.5 million more than Beach Haven Apartments had cost. Trump argued that because he had not withdrawn the money, he had not literally pocketed the profits. He further argued that due to rising costs, he would have had to invest more than the 10% of the mortgage loan not provided by the FHA, and therefore suffer a loss if he built under those conditions.In 1961, Trump donated $2,500 to the re-election campaign of New York mayor Robert F. Wagner Jr., helping him gain favor for the construction of Trump Village, a large apartment complex in Coney Island. The project was constructed in 1963–64 for $70 million. It was one of Trump's biggest and last major projects, and the only one to bear his name. He built more than 27,000 low-income apartments and row houses in the New York area altogether, including Brooklyn and Queens.
In 1966, Trump was again investigated for windfall profiteering, this time by New York State investigators. After Trump overestimated building costs sponsored by a state program, he profited $598,000 on equipment rentals in the construction of Trump Village, which was then spent on other projects. Under testimony on January 27, 1966, Trump said that he had personally done nothing wrong and praised the success of his building project. The commission called Trump "a pretty shrewd character" with a "talent for getting every ounce of profit out of his housing project", but no indictments were made. It was suggested instead that the state's housing program was in need of tighter administration protocols and accountability. A deputy attorney general corresponded with the Federal Bureau of Investigation regarding any reports it had about Trump before he was set to be deposed on March 31, 1966.