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With the coming up before the Historical Commission tomorrow evening, I thought it would be a good idea to write a series about the business endeavors of the Krock family. That Krock works so well in so many puns factored into this decision. Here’s part one.
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Aaron Krock The life of Aaron Krock is part Horatio Alger, part Gordon Gekko. Krock was born in Europe in 1901 (or 1899), and came to Worcester ten years later. He worked as a Telegram paperboy and a Western Union messenger boy. At age 15, he’d saved up enough money from his work as a paperboy and a messenger boy to go down to Wilmington, NC, and open a small dry goods stores.
Two years later — at age seventeen — he sold the store and became an auctioneer. (From what I can tell, I think he started in tobacco auctions and later moved on to auctioning off pretty much anything, mostly higher-end deals.) After two years as an auctioneer in North Carolina, he came back to Worcester and started Aaron Krock Auctioneers.
By the late 1930s, he was working as an agent to find buyers and operating personnel for various businesses, but he also owned various box, paper, and furniture companies. In 1945, he acquired the of In 1955, forty years after leaving Worcester to open his first business, he opened Commerce Bank & Trust with $525,000 in capital surplus and undivided profits. Whatever else one can say about the Krock family — and I think most of us have our opinions — it is pretty extraordinary for someone to come to this country with little money, work hard as a young boy, and open one’s first successful business at age 15. What is both good and bad about the Krock fortune comes from Aaron Krock and his relentless drive to make lots of money, own lots of property, and owe no one anything. After opening a bank, after buying, running, and selling numerous businesses, Krock never forgot his first love — auctioneering. Indeed, in the early 1960s, he was auctioning off fleets of planes, shoe factories, and an iron works mill. Auctioneering was certainly lucrative — he said that ‘One auction pays me more than a bank president makes in a year.’ From what I’ve read, many of these auctions were federal bankruptcy auctions (or auctions of companies that had seen better times), and his fees ran between 3 to 7.5 percent of the sale price.
(In 1996, one anonymous city official told Worcester Magazine that Aaron Krock “used to make his money on other people’s problems.”) By the early 1960s, he had also acquired one of the properties most associated with his family — the Commerce Building (340 Main Street, bought in the late 1950s when State Mutual Life Assurance Co. Moved to Lincoln Street), as well as the entire block on the corner of Main and Pleasant where the Honey Dew Donuts is now. By the time of his death in 1972, Aaron had seen Commerce Bank’s assets grow from $525,000 to more than $36 million. Whether or not Krock made his money on other people’s problems, a man was able to go from paperboy to owning whole city blocks, and build a financial foundation that continues to make his family one of the most powerful and influential in the city. Edward Krock — an aside No discussion of the Krocks would be complete without a short diversion into Aaron’s younger brother, Edward, with an equally Algerian rise to fame (Worcester newsboy to teenaged grocery store owner to personal fortune of $50 million) and a Gekko-like fall (serving on the boards of major corporations to ).