This study on the wool-spinning mill 'Pieter van Dooren' deals with the history of a family firm and covers the entire 150 years of its existence. The firm was not the prototype of a Tilburg woollen mill, specializing as it did in spinning and fulling. It was the first steam-driven Tilburg mill and as such it enjoyed some general reputation in the history of Dutch industrialization. So far, we have had to do without a thorough business-history of a Tilburg woollen mill, although a lot of publications have appeared on this important branch of industry. What has greatly contributed to a more widespread interest in and accessibility of the industrial heritage, is the fact that both the municipal archives, which include several company records, and the museum of textiles, which exhibits the movables, where rehoused some years ago.

In chapter I an outline is given of the historiography of business-history in the Netherlands. The lack of theory that is diagnosed gives rise to an analysis of time-sequences. Next the company files are discussed as a historical source. In this respect knowledge of business-economics cannot be dispensed with in order to arive at a correct interpretation. Consequently the inventory of the files of the 'Pieter van Dooren' firm which has been used here, is not error-proof. A discussion of the contents of the company files shows that commercial correspondence and accountancy have been preserved in particular. Important technical files form another constituent part. It is the basic assumption of this study that the owners of the family firm are the centre of interest.

In chapter II the theory and method used are elaborated on. 'Familism' is the designation of a social phenomenon which describes the characteristics of a family firm in the area of tension between its economic and social functions. By 'familism' the present writer understands the aspirations of the capital owning family after such a profit-earning capacity of their firm that the resources, the esteem, and the long-lasting social position of the family can be preserved and, if possible, enhanced. Bearing this in mind, one can understand not only the rise and flourishing, but also the decline and closing down of the company. For if, in days of increasing alternative possibilities of acquiring resources, the firm yields less to the family, even to the point of jeopardizing the preservation of their resources, then the continuation of the firm will get the worst of the continuation of the social position of the family.

The system of financial ratio-analysis aims at optimally using the annual statement of accounts, consisting of audit reports and profit-and-loss accounts by means of ratio's. In this connection the questions about the source, the spending and the yield of the capital are of paramount importance. An arithmetic scheme, derived from the Dupont scheme, has been devised in order to gain a clear historical understanding by way of a financial survey. In appendices 4 and 5 the ratio's used have been explained and worked out.

In chapter III the developments in the woollen industry is dealt with at great length. The introduction of the spinning range, the steam-engine, the fulling-troughs, the building of the works and, going with it, the enlargement of scale in the Tilburg production of woollen yarns originated in the English woollen industry of Yorkshire. Particulary in the latter quarter of the 19th century there was intensive trading with England. However, from 1914 on the woollen mills were thrown back on the domestic market. Thanks to the presence of the statistical data of the Dutch Central Statistical Office, CBS, we have disposal of the possibility to come to a comparison of the 'Pieter van Dooren' firm in particular with the woollen industry in general. On the whole the spinning mill followed the trends of the industry, with a single exception, however: until the very end steam remained the main source of energy. With the help of the diagrams included in this study all this can be checked.

Chapters IV, V and VI, the rise, flourishing and decline make up the firm-history proper and this periodization keeps up with the cyclical movements the business experienced. Being an up-to-date company the spinning and fulling mill found a favourable site to settle in on the Ley stream, off Tilburg. Some descriptions have been preserved of the equipment of the mill with steam engines, spinning machines and English fulling-troughs. The company originated from the firm of Van Dooren & Dams, who about 1809 had already acquired an excellent reputation as to technical innovation in the manufacture of woollen fabrics. In 1825 the spinning mill was established by Pieter van Dooren, after the English model. To finance his enterprise Pieter was first and premost dependent on relatives, next he could procure three loans from the Industrial Fund. In doing so he was supported by the political and economic Tilburg upper class. Failing a fulling mill at Tilburg, the woollen manufacturers had a personal interest in Pieter van Dooren's business getting off the ground. In a later period funds could be borrowed from a private investor as well.

As chief of a family firm the entrepreneur Pieter van Dooren was interested in the political developments of his days, took care of the works administration himself and was always innovatory without losing sight of the risks. In this way he enhanced the prestige of the family and gained social recognition. He was one of the founders of the gentlemen's club the 'Philharmonie' and in 1844 Pieter van Dooren was one of the four highest-ranking Tilburg industrialists. In 1845 the firm was taken over by his widow, who transferred its ownership to her sons in 1853. After some strife the sons had succeeded in procuring the management of the works by safeguarding the familial care for the sisters' financial security by withdrawing money lodged on deposit. In this way consolidation of the family property became one of the principal characteristics of the family firm. Up to 1875 the company was to be dependent on these deposits for its capital.

Under the management of Pieter's sons the spinning mill was considerably extended in 1860, and a partnership was entered into with the woollen manufacturer J.L. Donders, for the joint running of a weaving mill. In 1882 this cooperation, which was exceptional by Tilburg standards, was terminated as a consequence of disappointing results. Then Van Dooren started weaving on his own, at first by way of cottage weaving, and from 1891 at his mill. The capital structure of the firm was of a clearly industrial character by the preponderance of the fixed assets. As a spinning mill the firm had become an archetypic lender, so that many trading debtors occurred in the balance sheets. Ample liquid assets resulted in the firm having sufficient working capital. The net profit was able to provide a sufficient earning capacity and made investment financing the corporate policy.

In 1881 François van Dooren stepped forward as manager, discarding the hereditory successor, who had proved his inaptitude for the job. From 1891 he owned the freehold of the family firm as well. Subsidiary financing was now achieved by contracting short term debts. Next deduction of profits sufficed as a source of investment and revenue for the mill owner's relatives. François was held in high regard; for him the prosperity of the family firm was the first priority, whereas social functions were to be useful exertions, instead of honorary jobs. His firm had the support of a highly qualified bookkeeper, an overseer of the weaving mill and a commercial traveller.

In 1890 the opening up of the English market for woollen fabrics was initiated. Through the commission merchant Stanley Foss the London manufacturers of coats were supplied. However, in the beginning of the 20th century the number of orders placed dropped, and in 1909 Van Dooren decided to close down the weaving mill and to, once more, specialize in spinning woollen yarns. In the wool spinning mill manufacturing had remained level since 1887 by means of investments. The firm disposed of self-actors as well. In the fields of steam power extensions and transmission of energy the 1912-1915 extensions brought the firm into prominence again. Hired labour spinning, which used to be the basis of the firm, contributed to at most 10 per cent of the working results. In particular homespun woollen yarns were manufactured, whetter or not on the request of the woollen industry and the carpetfactories.

In 1923 François handed over the management of the firm to his three sons. For this purpose a limited partnership was established to safeguard the family character of the company. The securities portfolio that he had composed became his personal property. In this way nearly 1,000,000 Dutch guilders were withdrawn from the firm. As the result of the great 1929 extensions the wool spinning factory had an up-to-date building at its disposal on the eve of the depression of the 1930's. In it old and new systems of spinning continued to be used side by side. The drop in the sales of the 1930's effected bad working results in spite of price reductions and -control by Van Dooren's. To safeguard the continuity it was necessary for the company to forgo high salaries and to eat into their own capital. World War II started yielding high returns, but ended up having great financial losses.

In 1949 the change of the social and economic situation led to the establishment of a limited liability company, which was ruled by Frans van Dooren. The family kept providing the company with the necessary funds, so that the shareholders' meeting was a family consultation. Now the deduction of profits was laid down by statute, and in this way the reserve funds grew steadily. The spinning mill picked up quickly after the war, but the 1951 Korea-crisis hit home. The turnover was halved, and from then on was to see only slow growth, whereas the production costs remained unchanged. Modifications did take place in the production range by the use of synthetic fibres, but this development worked out too slowly. In 1960 a holding company was formed comprising a woollen spinning mill as a working company in conjunction with an investment company. The spinning mill became dependent on big customers and as a result of the decline of the woollen industry the trading results were petering out. The company, which used to be an industrial one, developed into a commercial enterprise. Particularly after 1963 the cost-effectiveness went downhill.

Although there was sufficient male offspring, what the company lacked in the 1960's was the right man to succeed to the job. Most of the members of the family sought, and found, a living outside the company. In 1968 they adapted themselves to the altered circumstances in time. The production was stopped and the family funds were invested in more profitable ventures. The family interest demanded that the spinning mill be closed down; in 1975 the monumental mill was demolished.

In this study family and business have been treated as an economic unity, the family- and businessinterests being as they were interwoven. At last the Van Doorens opted for closing down the company on rational grounds. The present writer has come to this judgement by means of financial ratio-analysis and by fitting in its findings in the theoretical framework of 'familism'.