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Case file s174 · Foundations · 1945
1945
The Hershey Company: Hershey Factory
The Hershey Company. Antarctic96. CC BY-SA 3.0, Wikimedia Commons.
Died
13 October 1945 (Milton S. Hershey)
Place
Hershey, Pennsylvania · United States
Field
chocolate · Business and finance on the timeline
Legal tradition
Pennsylvania charitable trust law (Orphans' Court; attorney general as parens patriae)
Historical event
2002 corporate scandals (Enron, WorldCom)

The Hershey school trust voted to sell Hershey Foods to Wrigley for $12.5 billion in 2002, and a Pennsylvania court stopped it

In 1909 Milton and Catherine Hershey deeded 486 acres for a school for orphan boys. In 1918 Milton put most of his fortune, including his company stock, into its trust, about $60 million then. The Hershey Trust Company, whose board is also the school's board, is trustee. In 2002 the trust held $5.5 billion, about one-third of Hershey Foods' equity and three-fourths of its votes. On 25 July 2002 the trust announced it was exploring sale of its controlling interest to diversify. Alumni and townspeople objected; alumni president Ric Fouad called the trust "the charitable-trust Enron." Attorney General Mike Fisher asked the Dauphin County Orphans' Court to block a sale, and Senior Judge Warren G. Morgan issued an injunction. On 17 September 2002 the board voted to sell to Wrigley for $12.5 billion†. On 18 September the Commonwealth Court affirmed the injunction, holding that a sale would be irreversible. The sale was dropped. In November 2002, 10 board members agreed to leave the trust. In August 2016 the trust's objections ended a Mondelez bid. The trust still controls Hershey in 2026†.

What the law took from it

A trustee's duty to diversify can collide with a state's interest in keeping a hometown company, and the attorney general can stop the sale.

Sources
  1. Internet ArchiveGovernment record
  2. edweek.orgPress
  3. The New York TimesPress
  4. CNBCPress

Cite as: celebrity.estate, “The Hershey school trust voted to sell Hershey Foods to Wrigley for $12.5 billion in 2002, and a Pennsylvania court stopped it,” story s174, https://www.celebrity.estate/hershey-1945, updated 30 October 2026.

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