The conditions for realizing his idea are poor to begin with. Its a time of rampant inflation. In the face of all the economic problems, Andreas Stihl embarks on going into business on his own in 1923. Together with Carl Hohl, a friend, who is also an engineer, he founds a consulting firm in Augusten-strasse 111 in Stutgart on March 1,1923. The officail registered size of the business and storage rooms is 3.5x5.7 meters, not quite 20 square meters.
Intitially, the business was run on a joint account. On August 10,1923,the firm converts into a general partnership, which is registered in the Stutgart
commercail register on August 18,1923. The purpose of the company is the planning and implementation of industrial plant as well as the sale of apporpiate machines. In the articles of partnership the partners undertake to devote their whole effort to the joint company to the best of their abilities.
(keep those last four words in mind)
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The equity put up of both partners, which was paid in cash, is 500,000 Marks each. Sounds like alot of money , but inflation is running wild in Germany. The actual value of the money shown as capital is revealed by the amounts that had to be paid for the entry in the commercail register and publication of that entry in the Imperail Gazette. It was 5,775 million Marks, plus 200,000 Marks in corporation tax.
The young engineers are very active. Among other things, they develop forehearth systems which they offer for sale as the Stihl-Hohl System.
The young company is not successful. Although inflation is ended by a currency reform in Nov. 1923, the new currency does not bennift the firm. It makes high operating costs as Andreas Stihl later reports. For this reason the partners decide in March 1926 to wind up the company without going into liquidation, as subsequently stated in the application for deregistration of the firm.
However cancellation of the firms registration in the commercial register is forgotton for the time being. Andreas Stihl was too involved with new projects. Only after receiving a warning that an administrative fine of 20
Reichsmarks will be imposed on each partner was the officially required application submitted to the Registration Court in September. On Dec.14,1926
and entry is made in the Stuttgart commercial register that Stihl&Hohl was
dissvolved. None of our creditors were harmed by the dissolution reports
Andreas Stihl, we paid back our creditors in monthly installments with interest and compound interest by 1932.
Neither the failure of Stihl&Hohl nor the repayments following the dissolution discourage Andreas Stihl from undertaking a second attempt as an enterpreneur. Alone this time, without any partners or any outside assistance. While still in 1926 the Registration Court is waiting for the deregistration of the old company, he opens A.Stihl Engineering Consultancy in Rotebuhlstrafse 43 in Stuttgart.
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