FIRST SECTON
This appears in every Memo - See dick-meom.blogspot.com
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College Photo - 1954
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I penned the following at the encouragement of my only son, Daniel, after a lengthy conversation he and I had earlier this year in Orlando. He thought writing down much of what we discussed, a reflection of my almost 90 years, could be meaningful for my kids, my grandkids, and one day my growing fleet of great grand kids.
His reasoning: it would help them understand the formative experiences that make me tick (tic). The few hours we spent together getting to know one another, in many ways for the first time, I believe enriched our relationship and hope will nurture a deeper closeness between us and all my progeny.
Needless to say, the emotional world of today is different than the "men don't cry" era of my youth. As for being Lynn's husband, she has had to put up with the "one child syndrome," having parents influenced by the Great Depression; a hint of OCD, a generous sprinkling of ADD tendencies; and being a Jewish teen from Alabama attending Georgia Military Academy, 1946 to 1950. Mix it all together with therapists who, in my day, always came back to the Oedipus/Freudian complex; and you can begin to appreciate the soup of my DNA. Fortunately, I had good parentage. And, while it might not always shine through my emotional armor and baggage, I do hope my family members know I love each one of them very much.
I had the great fortune of having an old fashioned and dedicated (they don't make them like that any more) "office wife " Mary Penuel "slaved" for me for 25 years . She was devoted to making my work life easier and pleasant. The problem this created was when I came home, generally with work, I forgot Lynn was not my "office wife."
As I aged, even the very few "chores"I do around the house have become more difficult. I no longer stand on ladders to replace light bulbs so turning out lights has become a passion . After all, I missed being a "depression baby" by only 4 years,
That said, while I remain above ground, I do aspire to being a better father, grandfather, great grandfather and husband and to have/enjoy an even closer relationship with my kids, their spouses, progeny and Lynn. There still is hope but please don't hold your breath or hold it against me if I fall below your expectations..
That said, I do believe you learn from standing in the other person's shoes.
My one problem, in terms of getting closer, is my dislike of aimless phone conversations. I have a short attention span, am too impatient, hate being interrupted by unexpected calls, and my mind races so I most often know the next sentence/response before it is spoken. Lamentably, conversations must encompass a component of an appealing topic. I refuse to own a cell phone and that drives my family up the wall. I know, I need to overcome this quirk but I am just not one for idle chit chat. For almost 50 years I made my living from what I call "smiling, dialing and concentrated bottomline calls and had the great fortune, during my "Street Years," of interacting with some very bright minds, far brighter than I could ever measure up to so that has created high interest hurdles. I truly believe my own kids and older grandchildren are extremely bright and interesting and I haven't given them the opportunity to talk about their own interests and what motivates them. Admittedly, life and my personality get in the way all too often: Poor but a true self-analysis.
I feel confident they know I love them, am so proud of what they have accomplished and what good citizens they have become. It is wonderful to see how each has flourished in their own way. My emphasis on being generous, a responsible and participating citizen is important because we are blessed to have been born in this country and must pay back. My own generation failed, in my opinion. We were too busy getting and spending, allowing government to become too large, costly, distant and corrupt.
I have written many times, we saddled the next generation with our bar tab. For shame!
It is hard to believe our family now numbers 28, not including 8 dogs and soon to become 29. I am sure more will come in time. I only wish my own and Lynn's folks had been around to enjoy the pleasures.
In essence, my life has been better than I deserve and/or anticipated. We have been lucky and blessed to date. If you read this autobiography below, I hope you find it of general interest and perhaps it will cause you to reflect upon your own life and be comforted/challenged by what you discover. As previously oted, I had some bumps and we all have events we wish we could avoid but could not, so we must learn to roll with the punch, so to speak.
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"STREET PERSON_ A Kaleidoscope Autobiography"
THE EARLY YEARS - 1933 -1946:
I was born in Birmingham, Alabama, May 16, 1933 to Estelle (Reiss) and Abe Berkowitz. My mother was a housewife, my father an attorney. My mother did not attend college, my father graduated from The University of Alabama in Tuscaloosa with a double degree - a BS and LLB. I was told, long after I was born, my mother was unable to have other children so I grew up "sans" siblings.
We lived in apartments until I was 6 and then moved to our only house which was a block down the street from The Highland Public Golf Course. It was a middle class neighborhood and we were the second Jewish family within blocks. The house was built by Julian Boehm, cost $6750, was set atop a steep hill, had two bedrooms and one bath downstairs, a third bedroom with bath upstairs including a den and attic.
I began a Victory Garden during World War 2 and we lived off the produce for an entire year. Also in the backyard was an unattached, unheated shed with a toilet and an unconnected one car garage. The shed housed some garden equipment, a lawnmower and was a place where Joe, our black yardman, changed clothes, used the bathroom and where our black maid(s) also used the bathroom.
As my father's income improved we had a maid, I believe her name was Daisy, and she came 4 days a week, was off on Thursday and was paid, I believe, $20.
She cleaned, cooked sometimes, was treated well by standards of those days and was devoted. My father never drove a car and we always owned a Buick bought from Drennen Motors until I convinced my mother to buy a Mercedes. It was her last car, had 39,000 miles on it, was 15 years old and you could have a lobotomy in the back seat because it was cleaner/safer than a hospital. She made sure, when she parked in the garage, it was on two slats so its "feet" would not get cold. My father had many interests but only 5 passions /loves: family, his law practice and partners, justice for all, Birmingham and Israel.
My father was absorbed in his legal practice. Frankly, I felt we had little interaction until I was 13 and old enough to drive a car. During the war, Alabama allowed you to get a driver's license, at 13. I often drove my father around and I got a chance to know him a bit.
During the war years he was our neighborhood air raid warden and let me walk with him at night making sure everyone had dimmed their lights. Beyond that, he would come home, take off his shoes, put on slippers and continue his law/case reading until dinner around 6.
On occasion, I would make a fourth when he played golf with two other competing lawyer friends, Jimmy Permutt and Morris Sirote. However, the conversation was mostly about law matters so I was on my own, so to speak. I was self-taught, never great but had potential and was on my prep school's golf team and earned a letter but that was much later in 1949. While growing up, most of my friends lived in the neighborhood. I was the youngest, the smallest, wiry, persistent, fast and, when we played touch football, I was a solid end type and could also throw a mean spiral quite a distance.
I walked several blocks to a neighborhood grade school (Avondale), had some great old fashioned teachers who expected good behaviour and, in one grade, I was asked to report the morning news at the beginning of class. At playground, we shot marbles, engaged in the usual activities and, on occasion, I was picked on because the school drew from a, more or less, tough neighborhood where there were few Jews so I became the object of some bullies. I tried to hold my own, best as I could, and never was really in physical danger. In most of my classes there were one or two other Jews, always girls who I knew, but they lived in a somewhat fancier neighborhood abutting Avondale.
In the early 40's, Birmingham was not a hot bed of Civil unrest but into the later 40's, as I was preparing to go to Ramsay High School, my father decided I should go to Military School. It came totally out of the blue and I had no say in the matter. The reason he gave was he did not want me to experience the ugliness and possible physical danger he foresaw due to de-segregation. I believe the real reason was he did not want me to become a "Portnoy" and thought I needed toughening. In retrospect he was right.
THE GEORGIA MILITARY ACADEMY YEARS - 1946 - 1950
GMA became one of the best experiences in my lucky life.
I entered Georgia Military Academy in College Park, Georgia in 1946. GMA was near the Atlanta airport , some 10 miles from downtown Atlanta. It was and remains home of Chick-Fil-A which was located in "The Dwarf House." My four years in Military School was the best thing that ever happened to me at that time. But with good can also come bad. More later.
After a rough first year of mild hazing, I got a solid education, acquired plenty of self-discipline and because I worked out with weights, under the tutelage of Major Bill Curry, I became fairly buff. I weighed 100 lbs and was 5 ft when I entered and upon gradation weighed 150 was 5'10" and all muscle. Lynn has a picture of me in a bathing suit to show and prove that fact.
"Rock" Berkowitz at 17
I graduated with honors (Cum Laude), and received ribbons for honor roll, best dressed cadet, was my platoon's Technical Sargent and lettered in Golf. What I most remember were my fabulous professors. Among the most memorable were: Commandant Col. Burnett, Ass't. Commandant and my chemistry professor, Capt, Edwards, Math Professors: Col. West and Major. Brewster, English Professor, Col. Wilkinson, Gym Professor, Major Curry and History Professor, Maj. Paget.
Col. Wilkinson gave me my first ever A in English for an assigned book report and that gave me confidence and started me on the path of loving to write.
GMA's future president, Bill Brewster, who was then my math instructor and a former Naval Academy Graduate, a retired Marine Corps Major and pilot urged me to go to The Naval Academy. I told him, in my junior year, I had no desire to do so but we compromised and I took the West Point Physical in gym the entire year in case I changed my mind. Upon graduation, I applied to Princeton, Penn (Wharton) and was accepted at Penn. I later learned I messed up answering a question on the English part of my ACATS and thus did not get accepted to Princeton. Probably just as well. Had I gone to this more prestigious and "Waspy University" my life would have taken a different path.
A Birmingham girl, Jackie Levingston, was my Graduation Date. She came to Atlanta with my folks. That summer we decided, with her going to Sophie Newcomb and me at Penn, we should not continue our dating. Jackie was my first love. She is married to a Tulane trained psychiatrist practicing in Miami. When I graduated from The University of Miami Law School they were living in our neighborhood and I offered her our Bassett Hound, Bridget, and she was delighted to have her because I could not bring Bridget to Atlanta.
More later.
THE UNIVERSITY OF PENNSYLVANIA YEARS - WHARTON - 1950 - 1954
Those I came to know:
I entered Penn in 1950 and graduated in 1954. My memorable events at Wharton were" as follows:
a) I joined Phi Epsilon Pi Fraternity and found it not to my liking though I was elected to the position of Recording Secretary in my Sophomore Year. I thought the process of selecting members was snooty and undemocratic and was. I never really adjusted to "Frat Life." Being an only child, I guess I had adjusted to being a one on oner and did not, all of a sudden, need 40 plus brothers.
b) I met Bruce Crawford. Bruce was a transfer student from Boston, came from a middle class family and in Boston belonged to a lesser prestigious fraternity whereas at Penn the same was an elite, small fraternity and they had to let Bruce join. He could not afford the cost so became the paid overseer of their kitchen. Other "brothers" were from the Luken (steel) family, De Havilland (French Pottery) family, the Manville (asbestos) family, the DuPont (chemicals) family, among others. Bruce felt out of place. I do not remember how we met but we clicked because I felt out of place as well. Bruce and I were thick for the two years he remained at Penn and in the summer of my Junior Year he became employed as a member of Penn's Student Placement Service and arranged for me to spend the summer, as a crew member, on a cruiser owned by a prestigious white shoe Philadelphia law firm used to entertain clients and their families.
When I informed my folks I would not be coming home that summer they insisted I thank Bruce but tell him I could not accept his generous offer. I dutifully went home. The actual reason my father did not want me to accept was his concern I would not fit in being Jewish and, possibly, squiring young ladies to private exclusive country clubs where Jews were not allowed to join. I learned this by asking him had the boat been owned by the Gimbel Family would it have been alright and he admitted it would.
I believe my father, who came from a poor working family, was projecting his own insecurity or possibly trying to protect me.
Upon my return in the fall, Bruce and I were never as close as we were before that summer.
Bruce set his sights high and I always knew he would succeed. He ultimately became Chairman of Omnicom. Omnicom is one of the largest and greatest domestic advertising firms and along the way Bruce also became Chairman of The New York Opera. Bruce's favorite author was F. Scott Fitzgerald and I knew he would become one of the author's characters in real life. Bruce is a class act and I hope to see him before we both depart. I own a little Omnicom stock.
c) I met Nancy and she became my girlfriend beginning late in my Sophomore year and until we broke up .(More later). She was a year older than me, was from Cincinnati, andeventually a Penn occupational therapy graduate.
Frankly, my mother never cared for any of the very few girls I dated. She did come to love Lynn but even that took a while. They were never good enough, was her excuse, but that was far from the truth. I suspect she could not let go of her only son.
d) My Penn Professors were either great or not. The four that had the greatest impact on my future life were Professors: "Jerry" Jeremiah and Frank Parker. Both were Corporate Finance Professors. The other two were Professors Black and Harbeson, both English Literature Professors. I had some other professors who were well known, one becoming a future Ambassador and the other's daughter becoming an Ambassador as well.
Why these four? I always had a Walter Mitty Dream about Wall Street and becoming a partner in a NYSE Firm and because of Col. Harvey Wilkinson, my English Professor at GMA, I developed my love of writing and books. The math associated with corporate finance, the rational reasoning connectedd to Capitalism and making money in the stock market always appealed to me. Perhaps I saw too many movies starring Wall Street moguls/types.
e) I also met/had some wonderful classmates who became long time friends, though, post college, we seldom saw/see each other. Ross Hirshorn was my roommate until I moved off campus. Ross' mother and father (Gert and Bill now deceased) became surrogate parents. Ross became a very successful writer's agent in a renowned Los Angeles Talent Agency, did very well, retired young and lives in Carmel.
Jay Levy (deceased) was a living Howard Roark, the famous architect in Ayn Rand's Novel: "The Fountain Head." Jay was a South Philly kid from a poor family who became Dean of Penn's School of Architecture. He married a dear girl.
Larry Feldman, from Boston, spent a Thanksgiving with me and my family in Birmingham. Larry worked for Hertz Trucking, has a wonderful wife and his son visited us in Savannah. My mother loved Larry.
I stay in touch with several other former fraternity brothers. Two read my memos, a third, Don Lubin, spoke for me in Savannah during my JEA Seminar Program years. Don was Ray Kroc's personal lawyer, the founder of McDonald's. Don served on their board and became America's most prominent franchisee lawyer and partner in a prestigious Chicago Law firm. Upon retirement Don Chaired the Ronald McDonald House Foundation.
Victor Barnett, was from London and his family were among the wealthiest Jews in England. During the War, they wanted Victor out of London so he was moved to America. Victor was Chairman of Burberry for many years, retired and now is back involved with Burberry in some capacity. His wife is an activist in an official federal capacity.
I stayed in touch with Dr. Marshall Goldman until his death and he also spoke for me in Savannah. Marshall was my fraternity "big brother," taught at Wellesley, founded the Russian Institute at Harvard, was an expert on Russia and a consultant with our State Department. He wrote many books, spoke fluent Russian and when in Savannah discussed his book: "Russia - Petro-State." His wife, Merl, is an expert on China. Marshall and Merl dated while at Penn and were among the most brilliant students and were forward thinking because of their interest in Russia and China.
f) During the brief time I remained in the fraternity, our advisor was Professor Henry (Hank) Abraham. Hank was a professor in Penn's Political Science Department. He was told he would not get tenured so he left to join the Political Science Department at The University of Virginia, entering as a tenured professor. Hank, as I have often written, was the nation's expert on the history of The SCOTUS. His closest Court friends were Justices Scalia and Thomas. Hank also spoke for me in Savannah. He died several years ago near the age of 100.
Hank also warned me about Justice Roberts' prospective and favorable vote on Obamacare. I thought Hank was wrong but he proved omniscient. He told me, Roberts could not be depended upon in terms of his voting being more interested in maintaining comity and keeping The Court out of politics. How true Hank proved to be.
g) I moved downtown in my Junior year after I dropped out of my fraternity and rented a room in Sadie Gold's rundown townhouse near Rittenhouse Square on Delancey Street. Today, if her family still owns the home, it must be worth millions because it is in one of Philadelphia's swanky, rehabilitated neighborhoods. Two girls, one from Atlanta named Janet, lived in the basement apartment. I never really got to know them but when I moved to Atlanta I re-met Janet. She had become the wife of Philip Sunshine. His family owned department stores and a beach home at Tybee. Sadly enough, Janet died some years ago from cancer. She was absolutely a striking beauty, 6 degrees of separation.
Two other renters were friends of my girlfriend, Nancy. One was drop dead gorgeous, the other, Betty, was anorexic and subsequently committed suicide. So sad.
h) My father and mother came to Philadelphia to visit on their way to their first European trip and, while there, my father traded my Green Jeepster, which he had bought the summer after my Freshman year, for a black MG TD with red leather interior. While at Penn, I either made A's if I enjoyed the class and/or professor or D's and C's, if not. I will tell the story about my infamous "F" later because it shaped my life forever.
I did not understand why I was being rewarded, because of my poor grade average, but it turned out my father thought the car would diminish my involvement with Nancy. Since he never drove a car in his life he did not understand it enhanced our relationship. It even raised my status on campus. The one negative, now that I was living downtown, was that I began to get parking tickets because there was only one hour parking until 5 or 6 PM and I would come home after classes around 3PM. I dutifully moved it every hour by driving around the block and always found my former space open, so another ticket.
One day a policeman came to Gold's home and I answered the door and my heart sank. Turned out he was seeking Sadie to hand her a summons about her failure to pay property taxes. Today, including interest and penalties, I probably owe "Millions" to the Philadelphia Police Department for Parking Violations.
Because I now had reliable "wheels," Nany and I discovered Buck's County, The Towpath Inn and the Schneweiss's B and B. Mama Schneweiss took a liking to us, partly because Nancy's family background was German. Mama S always made sure we had separate rooms when we came and loved to cook her famous dumplings , etc. I am sure they are gone but what delightful weekends we would spend with them when I had spare funds. As for the Towpath Inn, it was a great local bar (still there I am told.) We were not drinkers and though underage the owner would allow us to come and be part of the local crowd.
i) There are other "happenings" I can mention like watching the McCarthy Hearings in Huston Hall, my Marine student friend who had lost a leg in the Korean War but I will end with the story about my "F" but first my Penn Football story.
In those days , as you began your Freshman year, you took a physical to determine whether you had gym or could elect some other physical activity. You will recall, I took the West Point Physical at GMA as a compromise with Major Brewster, so when I went for the mandatory gym test at Penn, I blew the socks off their records. It was basically the same type test, ie. high jump, runaround "Indian pin ball" objects, push ups, pull ups and the like. So I was free to elect another activity and chose Fencing because Professor Slazar (sp?) was the former Hungarian Olympic Fencing Master.
Several days later, I got a call from an assistant coach of the Penn Football Team. At that time Penn had an acceptable team with Bernie Lemonick, "Reds" Bagnell and Coach Charlie Munger, etc. The coach on the phone had seen my gym results and asked whether I would try out for the team. I explained why I would not and that ended any prospective football career I never contemplated.
I joined The ROTC Program figuring I had already done everything at GMA and it would keep me deferred and pay for some of my college tuition, etc. (My first year at Penn was something like $1300 up from GMA which had gone from $900 to $1150.) I also read where you could drop out of ROTC after two weeks with no penalty. I decided after one week, before I was issued uniforms, it would be stupid, during the year, to do what I already had done for 4 years so I quit. I then realized I would be subject to the draft so I joined an Active Marine Reserve Unit located at The Philadelphia Naval Yard and was assigned to a Howitzer Unit. I also liked the idea of becoming a Marine so I joined the Marine PLC program, shortly thereafter. The PLC Program was held in the summer and would keep me deferred until graduation.
The summer of my Sophomore Year I went to Camp Getchie for the first of two summers of training to become a Marine 2d Lt. Camp Getchie was in the "boonies" near Main Base Quantico. Except for the heat and map reading, which I never understood because spatial thinking is not my cup of tea, it was a "breeze." We were taught to march, salute, go on long bivouacs, exposed to some basics on marksmanship (I was terrible with an M1 but better with a stationery BAR, ) etc. I did fine and when the summer was over I drove out in uniform in my MG with one stripe which I had already earned from my Reserve Duty.
My mother had apoplexy when she heard I decided to become a Marine. I explained to both her and my father since I had to serve (it was still during the draft) and, I might one day have to kill, I should learn from the best. My logic did not convince them but the idea of being a Marine not only fit my logic but made me feel a few inches taller. To this day I think Marine Dress Uniforms are fabulous. (More later.)
On my drive home, I passed through a small town in North Carolina and saw a sign, " thoroughbred Beagle puppies for sale" and, being the compulsive person I am, purchased a beautiful 8 week (I believe) old puppy. When I got home, my mother had forgotten about my being a Marine and nearly dropped dead when she saw her new tail wagging son.
First thing she asked was how could I take him back to college and I said he was a gift and I knew she would come to love him, which she actually did. When I left for college some two weeks or so later, they had bonded except for his baying at night.
Lamentably, when I returned to college two bad things occurred. Mother did not know she needed to take her new son for a leptospirosis shot, whatever that is, and he died from that kind of infection or so the vet told her (or so she told me.) She was very distraught and I was mortified because I did not know and thought he had all the required shots.
Worst of all, I received a letter from The Commandant of The Marine Corps informing me my grade average was below C and I would no longer be allowed to remain in the PLC program. I was given an F by Penn's ROTC Department and it brought my grade average below C. I hurried to the ROTC Department and was told, because I never informed them I dropped out of the program, they reported an F and could not remove it and that ended my career in the Marine Corps. I was and remain mortified to this day. Had I been allowed to remain, I believe I would have stayed. I still have one item that hangs on the door to my "man cave" with a red Marine cap hanging there as well.
Of course, had I remained in The Marine Corps, I would never have met my first wife, had three daughters I love, met Lynn and had another daughter and son I love, 9 grandchildren and three great grandchildren I love and four sons-in law and one daughter -in-law I love and their respective families and, most important of all, The Marine Corps survived without yours truly. However, as noted above, had I remained, I wonder what rank I may have obtained, etc. Life takes funny turns and I have had my share.
Another thing happened while I was at Camp Getchie. I got weekend pass so I met Nancy in Annapolis and two things occurred. First, I discovered a College named St John's across the road and down a few shaded streets from the entrance to The Naval Academy. More later about St John's but, many years afterwards, I did become a Board of Visitor's Member of that College.
As for Nancy, she began therapy during my Junior year and before she came to Miami that summer. She also spent most of my Junior year out of town training in her field of endeavor so after meeting my mother in Miami Beach and not passing the test, followed by her absence and compounded by her therapy our relationship had weakened. The day we spent in Annapolis she told me her therapist thought she should cool the relationship because she should not put herself in a position of making any major decisions. I believe we both thought we were headed toward marriage.
Nancy was a wonderful young lady but her parents were very strict German types ( frankly I thought they physically resembled the comic book Katzenjammer Kid's parents.) She believed they worshipped her young brother and it gave her all kind of insecurities. We seldom saw each other throughout my Senior year.
I was now in a "draft" dilemma because I was still in the Active Marine Reserves so my unit could be called up and I had lost my deferment because I was no longer in the PLC. I asked my father to talk to the Draft Board and have them defer me until after I graduated and would then serve my two years in the Army and get that obligation behind me which he and they did.
I graduated, not at the top of my class, as I had at GMA, but, for the last two years, I made nothing less than "B's" and mostly "'A's'" and graduated in the top third.
I did not attend graduation because I knew I was soon to be inducted into the Army.
MILITARY SERVICE IN FRANCE - MARRIAGE TO DOROTHEA (DOLLY) LEAVITT - 1954 - 1956
I was inducted in September of 1954 and sent to Fort Jackson. in South Carolina. Because of my prior military experience, the Army waived basic training, and my Wharton education I was placed in The Finance Corps and assigned to Ft. Belvoir where I processed travel vouchers. While doing this, many of my fellow married soldiers were being sent here and there and separated from their families. I was also bored so I asked my father could he talk to his old friend, Senator John Sparkman, then Chairman of The Armed Services Committee, about being sent overseas. Dad said he would.
In the interim, I had been invited to a wedding of one of my co-workers where I met my former wife. I had never been drunk but I was seated at a table of young married couples from the north and they liked my "suthren" accent and began to offer me drinks until I was plowed under. I remember dancing with a dazzling girl in a purple dress before I got sick and was taken home. I sent my suit to the cleaners after looking for, what I remember was her telephone number, but to no avail. When my suit came back, the cleaner had pressed it without emptying the pockets and her telephone number was there. I called her, got a pass and that weekend drove to New York and we met again. I believe I did this once more and decided, since I was probably going to be sent overseas, we could get married and learn about each other somewhere in possibly Europe. She agreed and I called my folks and they flew up to meet her parents. She was all of 18, I was nearing 22.
Obviously my compulsivity was reinforced by my re-bound experience and previous relationship with Nancy.
Several weeks later, I was called in by my Captain and told I had an appointment with Sen. Sparkman and was to meet him Saturday. I asked could I get a pass and I am sure my "Boss" was wondering what was happening. I met Senator Sparkman in The Senate Office Building's Armed Service's "digs" and he was flanked by a young aide. They were both sitting at a desk in this cavernous room and I introduced myself. The Senator was handsome, every bit the part of an august Senator. He inquired how my father was and said he understood I wanted to go overseas. I started to explain why and he cut me off and said "Son, I don't have time for that, just tell me where you want to go." I had given little thought to the where so I blurted out France. He thanked me, said he had many requests asking not to be sent overseas, mine was unusual and probably the first of it's kind and sent me on my way. Two weeks later I had orders to go to France and within that time I became a married man.
We actually were married by a Rabbi named Berkowitz, no relation, in New York. The wedding was limited to respective families, a few close friends followed by a luncheon. I also used all of my vacation time for a honeymoon which entailed an overnight in a Miami Beach Hotel, followed by an overnight cruise to Nassau and a return to my base. After 4 days, my wife returned to be with her family until I was settled in France.
Our honeymoon was, I am sad to say, not an enjoyable one. Obviously my wife (Dolly was her nickname) was young, had never been out of New York, except to go to camp when, for two weeks, her father was the camp doctor. She thought New York was everything in the world and nothing could measure up to The Big Apple. After we arrived at our hotel in Miami Beach a storm occurred. The wind was so strong a little wren, or some such tiny bird, was blown or flew into our beach front glass door, and must have broken it's neck and died. Very upsetting.
Furthermore, I owned this beautiful Sunbeam Talbot Alpine, which I had bought after trading in my MG and asked my mother to please come up, drive it home and she said "no." This was the same beautiful powder blue car Grace Kelly had driven in the movie: "To Catch A Thief." I was unaware, at the time, even an enlisted man could have his car shipped overseas by the Army. I sold it for $1800 and took a small loss. I believe it cost me around $2200 less what they allowed me on my MG. Today that car would sell for 10 to 20 times that because it was not a widely produced car and was a beauty, almost as beautiful as Grace Kelly.
MILITARY LIFE IN FRANCE AND I BECOME A FATHER - 1955-1956
After landing in the Azores to refuel, we landed at Frankfurt. Then I trained to Orleans by way of Paris. I arrived at what was called The Colony Caserne in what was known as the COMMUNICATION ZONE. France was not then part of NATO and De Gaulle was President. The base had about 3 to 5,000 troops stationed in Orleans and we serviced American forces stationed in Europe. I located a small place to live in the village of Meung Sur Loire, some 8 miles from my base and negotiated the monthly rental with the owner (Madame Gennart sp?)who was able to live in Nice on what I paid in rent. I received a separate allowance to live off base because I was married, even though a low ranked enlisted man. The French knew they could charge increased sums. In those days, the Franc was 350 to one American Scrip. I forget what my salary was or the off base allowance (combined something around $225/month) but we were able to live and shopped at the PX because it was cheaper, sold American products we knew and also because we were forbidden to buy French vegetables or anything fresh. In 1954 the French were still recovering from WW 2, were engaged in losing in Indo China and were still using human waste as fertilizer.
Dolly arrived a month or so later and I met her in Paris. We spent the evening in one of the beautiful boutique Hôtel de la Trémoille which is around the corner from the Champs and near the famous Grand Hotel. Today our $30 room runs about $1000. We had dinner that evening in a close by restaurant and drove back in the VW I bought after I found the Renault, I first purchased from an MP returning home, was rusty and beyond repair. Compulsive me.
Dolly spoke a little French from her high school days and we settled into married life. When I look back, I now realize this 18 year old girl had left her family in New York to marry someone from the South she did not know, was now in France without any friends and family and had nothing to do the entire day. To her credit, she became friendly with some of the French women in the village and we became particularly close to Madame Cheneaux (sp?) whose son, Oscar, was called the "village idiot" because of some mental issues but good at fixing just about everything. Madame Cheneaux was a very dear person. We also became friends with the wealthiest man, Paul Wilhelm, in the village who owned the local flour mill. Paul was young, unmarried and wonderful.
We lived in France when Communism was strong, particularly in our Village, so having an American Soldier was not a guest worthy of a key from the Mayor.
The place I rented was triangular in shape, located on the corner across from the Local Bar and Tabac Shoppe and down the street from the Boulangerie and other stores. If memory serves me, our first floor was tiled, had no furniture, was not heated and had a toilet. The second floor was our dining room and tiny kitchen and the third floor was a bedroom with a bathroom consisting of a shower and sink. I eventually purchased a 4 cubic foot refrigerator at The PX and we were mocked by the villagers because it used so much electricity. In those days the French shopped daily and kept some food items outside on a ledge in a dish of cold water.
DEBRA BORN - I BECOME A FATHER At 23:
Dolly became pregnant and delivered our first daughter, Debra, on April 20, 1956. A few weeks later my folks visited to meet their first grandchild. They stayed two days then bid goodbye.
My wife had an American Military OB, Captain Martin "Marty" Cohen, who subsequently opened a Park Avenue practice after leaving the military. Debra was born in what had been a Nun's facility taken over by The Germans, converted into their Gestapo Headquarters for the region and subsequently re-converted into an American Military Hospital. Madame Cheneaux was a blessing and the entire village was excited to have a new birth even though they knew she would not be raised a Communist.
We now had to vacate our cramped quarters and moved to a petite chateau in another village Beaujeuncy (sp?), a few miles west and we shared it with a co-American military associate (Porter and Mary Kier) who also just had a son after years of trying to conceive. Porter was a corporal, I a private. A Captain in the French Air Force with his wife and two children lived in our unattached garage-apartment. We could afford the house and he our garage in his own country. While I am on this subject, Orleans had been drained of all French males because of the war in Indo China. Meanwhile single black American troops had a liberating experience because they had money, were fun, could dance, and most of all, were free to date white women. Could this have happened in Birmingham.?
After Debra was born and our move, things turned up for Dolly because she had Mary for company and they had infant children in common. Porter and I were already good friends and we shared a car leaving one for the wives.
I began thinking about law school and applied to The University of Alabama and was immediately accepted. A short time later I read about Cov. Wallace standing in the doorway and the Law School rejecting Arthurine Lucy's application. Hot head, compulsive me, sent a letter to the Dean asking him to withdraw my acceptance based on the fact how could the law school teach law if they disobeyed the law. I did not tell my father. The Dean replied I did not know the facts but would accept my request.
I informed my father and he suggested I apply to The University of Miami because he had a part ownership in three Miami cemeteries and would share his monthly check with me and maybe I could work in one and live in the caretaker's house. I did apply, was accepted and my discharge orders came through in time for me to return home, register for Law School, work at the cemetery in the afternoon, subject to my class schedule, and study in the evening.
RETURNING FROM FRANCE- NEW LIFE BEGINS - 1956
On the voyage home, because I was married, I was able to sleep in a cabin with other husbands and our wives were cabined with other women with babies aboard. The SS Buckner was about 500 feet in length. As we passed through the White Cliffs the seas began to churn and all aboard became sick, dishes broke and the mess became a bigger mess. I could only visit my wife and daughter at certain times and Debra developed a horrible diaper rash. I believe the trip took 7 or so days and we landed at a New York Port. Dolly was met by her folks and I had to get our VW and sign discharge documents. As I drove to the Bronx, I began taking off my uniform and throwing it off to the side of the road. I arrived in a t shirt and pants and later found out I needed to retain my uniform because I was still draft-able in the event of a re-call. Compulsive me.
Dolly's father, Jacob Leavitt (Jack), was a board certified gastro doctor and her mother (Lillian) his office manager and neither knew much about how to treat Debra's growing diaper rash. This was their first grandchild. Instead of suggesting going to the drug store and asking the pharmacist, I suggested a baking soda and water solution would do the trick. Obviously it only caused her to scream because it burned. Again, compulsive me.
UNIVERSITY OF MIAMI LAW SCHOOL YEARS: - 1956 - 1960
We made it to Miami, I entered Law School and Dolly was again left alone with a young daughter living behind a cemetery. The ground keeper's home was comfortable and even had a small backyard. Once again I had to drive to school in Coral Gables so Dolly was left without a car. I did come home around 3:00 PM, performed whatever cemetery work was required, ate dinner and studied into the late night.
During the first two years of law school we did not have much of a social life. I developed a great friendship with a brilliant classmate who was top in our class. I also made Law Review which took up more of my time. My father eventually sold his interest in the cemeteries and we moved nearer to Coral Gables and into a bigger house in a nice neighborhood so Dolly finally had friends, particularly our next door neighbor, Chris, her husband and their daughter. Chris was a polio victim, confined to a wheel chair and her husband was an independent freight pilot, a chess player and cared for his wife but needed to do freight runs to earn money so hired people twho took care of Chris in his absence. We helped where we could. On one trip to India, my next door neighbor pilot buddy bought an Indian hand carved Ivory Chess Set which was very small so we continued to use my own French hand carved set. I still own both to this day but seldom play Chess. My father taught me and was very good.
Though our social life was better we were still restricted by funds and time. I was no longer working but still had studying demands and more time to get to know my beautiful daughter and help where I could. I also bought a female Basset Hound and named her Bridget after the French Actress.
I began therapy in the hope of figuring out who I was and why I was who I was. My therapist was a handsome man, a former Airforce psychiatrist who met with pilots after their bombing runs over Germany and France. He was stationed in England and was a member of The 8th Airforce whose stupendous museum is in Savannah. Lou Rogel was a Freudian disciple and helped me gain insights but I left before we had the opportunity to probe as deep as I needed. In essence, my therapy was truncated because I was moving to Atlanta to begin my career as a retail stock broker.
Lou Rogel
I did learn, with Lou's guidance, I may have misinterpreted why my father sent me to military school. Apparently I saw it as punishment and consequently psychologically sublimated my feelings and honed my cynicism in order to protect myself from punishment. I fit the typical Oedipus Rex Complex. Though I have come a long way, as noted in the FORWARD, it is difficlt for me to allow my deeper feelings to show and has restricted my ability to be a better father and even a better husband. They say one's basic personality is formed by the time you are three. If that be so, I have spent 85 years continuing to bury my feelings under a lot of emotional top soil.
Lou actually lived close by but I never knew until the week before I was leaving for Atlanta to begin my career as a stockbroker. I had ended my therapy and he felt ethically he could invite me to go fishing in his new boat.
Again, when I look back and as I write, I never appreciated what my wife had endured considering her age, our vast personality differences, my own immaturity and the fact that she was totally cut off from family because of distance and lack of available funds. My father was still helping out and I had the GI bill but we were financially "tick tight."
COURTS & COMPANY INTERVIEW AND THE SAIL FISH: 1960-1970
I had to take another semester to finish so I graduated in January 1960 instead of June 1959. In the summer of 1959, I went to Birmingham to talk to an old neighbor who managed the Birmingham Office of Courts & Co, a NYSE firm, headquartered in Atlanta and the largest member firm in the South East. He drove me to Atlanta, thinking, as I did, I would return to Birmingham if hired and be the first Jewish stock broker in Birmingham. Mervyn Sterne was the Jewish head of Sterne, Agee and Leach but they were primarily a bond house and my interest was equities. As it turned out, I was hired and one of Court's, at that time, only Jewish partners (Al Revson) urged me to stay in Atlanta. His mother, Fannie, owned an upscale antique shop in Savannah. I accepted the offer and chose to remain in Atlanta.
Arthur, who drove me to Atlanta and thought I was joining the Birmingham office felt he had been stabbed and I now realize I had not handled the decision well. It was a long , silent drive back to Birmingham. More later.
Dolly flew to Atlanta with Debra, found an apartment on Peachtree Street down several miles from Buckhead and across the street from The Atlanta Jewish Community Center and also on a bus line.
Again, I did not attend my law school graduation because I was due to start work on Feb 1, 1960. My father flew down and drove back with me in our VW with a Sail fish I had caught and had mounted when he took me on a fishing trip in The Keys. That Sail still hangs in our garage. When I caught it, I could not afford to have it mounted ($90) but my father knew I wanted it so he financed me and told me to repay him when I could. I did the first year I was a registered broker. Al Pfleuger was the then go to taxidermist and mounted the actual fish , original scales and all. Today they make a plaster model and probably charge 3 times as much or more.
THE COURTS & COMPANY YEARS - AMY AND LISA ARE BORN - 1960 - 1970
We arrived in Atlanta a few days before I was due to start my career at Courts & Company. My father flew home and I helped set up our apartment.
The second week I was in Atlanta I received a call from Lou Rogel's wife, Louise, telling me he died while I was driving to Atlanta and shortly after we went out fishing. She did not have the heart to tell me earlier. Apparently Lou knew he had a bad heart. He smoked incessantly and put his cigarette through a peppermint while he smoked. She also said he knew his condition was tenuous but wanted to live right up to his last breath and bought the boat anyway. He left a son named Mark.
After her call, I felt like Joe Louis had hit me in the stomach. I still have Lou's picture on a library shelf and owe him so much.
Shortly after I relocated to Atlanta, I visited GMA, met with Maj. Bill Brewster, who was then President, and I suggested GMA needed to form an Alumni Association. He agreed and asked would I do it and I said I would but needed the names and addresses of living graduates so Icould write a letter informing them an alumni association was being formed if he would have it printed and mailed. He agreed to that as well.
When I attended GMA, Maj. Brewster's father was the president. His father had married the daughter of the founder and Bill succeeded his father when he died. GMA was founded in 1900 and some of Atlanta's most successful businessmen graduated from GMA, ie. Bob Woodruff of Coca Cola, the founder of Georgia Life and several others.
In the early 60's, Major Brewster also informed me, in order for GMA to survive the anti-military sentiment, the school must become co-ed and asked my opinion. I told him I understood and hoped it would remain a school where discipline was important. GMAl was re-named Woodward Academy in 1966, after GMA's founding family, and has become the largest, in terms of the number of students, private school in the nation with several campuses and classes beginning with kindergarten through high school. Subsequent to Major Brewster's retirement, Woodward has had four presidents and thrives as one of 6 top private schools in the Atlanta Area. (Parenthetically, Lisa, Daniel and Abby attended Woodward.)
Maj. Brewster's mother (Mildred) and my former English Literature professor (Col. Harvey Wilkinson) were among my earliest clients as was Wesley Sturges, the former, retired dean of Yale's Law School who was Dean at The University of Miami's Law School while I was a student. Wesley was a hero of mine. He loved bourbon and his face was lined like the Coast of Maine where he was from. He was among my many "Mr. Chips!" (More below.)
Courts & Co., as previously noted, was the largest Southeastern based Member Firm (NYSE) with offices in Georgia, Alabama, South Carolina and eventually in Tennessee. The firm was established by two brothers, Richard W, who at the time was a bachelor and Malon. Malon died playing tennis. His son, Richard Jr., was a member/eventual partner of the firm.
My first week at Courts was one of orientation and began February 1,1960. While in Law School, I had taken The La Salle extension course and thus was qualified to begin my brokerage career in a much shorter time having taken most of the required reading material and exams. I was paid a salary during my first six months and after that was on my own. The firm had 10 or 11 general partners but lacked cash capital. Our biggest southern competitor was Robinson Humphrey, also headquartered in Atlanta and located across the street from Courts and Company's home at Broad and Peachtree.
I became registered after 3 months and began making cold calls and writing brokerage reports I thought would appeal to men and women. On weekends I would slip them through doors of doctor's and other professional's offices and later call them and chat if they would speak to me. In 1960 you could actually get doctors to come to the phone as well as most professionals. I even got a few doctors who let me visit their offices to discuss their portfolios/investments and, because I had a law degree and graduated from Wharton, it worked in my favor. Many brokers in Atlanta, at that time, had graduated from UGA and were also golfers, some former football players. My mentor, Al Revson, had a very established clientele, belonged to The Standard Club, was a golfer and was a big help mentoring me, was generous in giving me ideas, leads and advice. He even picked me up some mornings in his Porsche when Dolly needed our car and we would drive to work together and talk. Al and I became thick.
Al also introduced me to Louis Montag, who established the first investment counselling firm in the Southeast. Montag and Caldwell continues to thrive to this day and their head , Ron Cnakaris, is someone I helped join the firm starting as director of their internal Research Department. They run some of our small Charitable Foundation funds and have done a marvelous job.
Again, six degrees of separation: one of Louis Montag's two sons lives at The Landings, is a dear friend and married a native of Savannah and is now a friend of Lynn.
KAY AND NELLIE HEDERI
My best clients were those who liked helping me get other clients and I had one who was a salesman with Haggar Slacks who lived in Jackson, Mississippi and traveled Georgia. Karim Hederi (Kay) became my first significant client, was married to a lovely Romance Language Professor (Nellie) at Millsaps College in Jackson and were childless. Kay was a Lebanese American, as was the founder of Haggar Slacks which was headquartered in Dallas, Texas. Kay had many retail customers in Georgia and a large family. Kay and Nellie loved Debra and eventually became like surrogate parents. Kay sold slacks and spent a good bit of his time talking me up with his own customers. As noted, he was my first large client and remained so until he died. I was a pall bearer at his funeral and handled Nellie's portfolio until she passed. During the intervening years I was a broker to some of Kay's family members, his Jackson friends and probably ten or so of his retail customers. Nellie gave me a ring Kay loved, knowing how much I treasured him.
Kay's picture is on another shelf in my den and they remain in my heart and always will.
B) The Orkin underwriting convinced me to try my hand at investment banking ( primarily mergers and acquisitions) and for the next 6 years I successfully merged a N.C company with Teledyne, brought Golden Flake Inc.(Birmingham potato chip maker) public, sold a New Jersey company to Rexall, another New York company to Automatic Retailer and I merged Dwoskin Decorating of Atlanta into Rollins Inc. which had subsequently acquired Orkin.
C) I also got the idea of working with institutional investors and introduced them to public companies located in Atlanta and in the Southeast. Many of these companies were served by Courts as their investment banker. My first success was getting Almon Manspeaker, the investment VP at Stanford University, to buy Delta. Mr. Courts was responsible for Delta going public when it was still a Louisiana crop duster. He sat on Delta's Board, was also on the Board of IBM World Trade Org., was a friend of Tom Watson and helped McChesney Martin become Chairman of The Federal Reserve. In previous years, RW, as we called him, had sold Sapelo Island (Barrier Island in McIntosh County, Georgia) to the Reynold's family. This was the banker side of the tobacco family and they owned Reynold's and Co. a NYSE Member. I mention this because that becomes relevant in 1969.
Boutique Hedge Funds were becoming the rage and I made it my business to contact several as well as mutual funds who bought Oxford Industries, Genuine Parts, even Taylor Wine (we had published a major report on this New York domiciled company) and many other such growing public southern based corporations. My first Hedge Fund Order was from Steinhardt, Fine and Berkowitz (no relationship) to purchase 100,000 shares of Oxford Industries followed by Ed Bragdon's, a PM with the Fidelity Mutual Fund Group, order to buy 50,000 Taylor Wine. Ed was subsequently criticized for buying a liquor company and sold it through us some days later. Eventually Coca Cola acquired Taylor Wine and also recanted several year's later.
I also made a trip to New York to meet with two Senior Portfolio Managers of The U.S. Trust company. One was married to Abby Rockefeller. I brought the Chairman (Milton Weinstein) of National Service Industries (A venerable Atlanta company) with me as well as introduced them to Cousin's Properties. They told me both companies' market capitalization was too small because U.S Trust Company's appetite for purchases was large. Both the PM's who met with us eventually purchased Cousins personally and made additional fortunes as the stock rose from less than 10 to well over 60 after several splits.
D) Our second daughter, Amy, who was born May 24, 1961. We had moved from our second apartment into a lovely home on Peachtree Dunwoody Road. The home was originally owned by clients of Al Revson, was built by an Atlanta builder known for unique wood interiors. Our living and dining room walls were of wormy chestnut. The kitchen cabinets were yellow pine and I hired Dwoskin to clean and seal them shortly after we took possession. Dwoskin workers were craftsmen. They made us vacate for 24 hours because they used a proprietary acid solution to remove the accumulated grease. After they finished the cabinets gleamed. (I have always been a wood nut. The door to my current man cave is Country French and the door to our master bathroom is from an English Bar with etched glass.)
Our third daughter, Lisa, was born on July 8, 1962. She was named after Dolly's mother who had passed away earlier in the year of lung cancer. This was a devastating event. Lilly was a rock, very practical and a dear woman who slaved in her husband's office and was the glue that kept their family moving. Dolly had two older sisters, all living in the state of New York, Joyce and Judy. My favorite was Judy. Joyce was sweet but tough. Dolly, as her name implied, was the baby sister. Jack, Dolly's father, was brilliant but lacked the personal characteristics you associate with a Park Avenue Doctor. He had a good heart but was on the impractical side. He was an excellent diagnostician and prided himself in finding cancers but failed in the case of his wife because, I suspect, he was too close and busy serving others. Joyce and her husband, Marty have passed on as have Judy's husband, Bob.)
I continued to work night and day in order to build my retail clientele in order to provide for my growing family. I traveled a good bit and, during these travels, met some of the most interesting businessmen and investors, among them Arthur Rock (Rock Partners) , Justin Dart (Rexall Drug), Harold Heath ( the president of Heath Tecna) and many others.
Our house was on a busy residential street with few children in the neighborhood so our then two, soon to become three daughters, had to go elsewhere to find play mates. Dolly wanted to join a country club but I did not understand the rationale of doing so, another mistake on my part, because I saw such as ostentatious and there were other ways to solve the problem. I was never a "fancy" country club, fraternity, "joiner" type. I had given up golf because it took too much time to play on a public course. Furthermore, I always thought golf was a sport and never associated it with business. Talk about being naïve. Another dumb mistake. Also, my mother never cared to join a country club in Birmingham and that influenced me, as well. My father loved to play pinochle and gin rummy and did join a Club in Birmingham. Dolly and I eventually joined a neighborhood swim and tennis club some modest distance from the house. I then began playing tennis taking lessons from a neighborhood instructor. Some fifty plus years later I still play and take lessons.
I concluded, joining this neighborhood swim and tennis community was my way of resolving the club issue so my daughters had more playmates, Dolly met more friends in her same situation and I got to spend better weekends with the family. These years, lamentably, were blurred because I am guilty of placing work above play and still remain a "work first" person.
WALTER MITTY DREAM COMES TRUE - I BECOME A PARTNER - 1967
In October of 1967, I was offered, along with 7 others, the opportunity of becoming a general partner in Courts & Co. effective November 1. I was required to put up $75,000 in cash for my 1% interest. It was virtually all the free money I had and was to be invested in U.S Treasury Bonds so I would only receive interest on that money. I was also offered a new car as well as a paid membership in The Commerce Club which was founded by Mills Lane, Chairman of the C & S Bank.
Though my Walter Mitty goal of becoming a partner in a Member Firm had come three years earlier than my dream, I asked McKee Nunnally, Court's managing partner, could I think about it because the fixed salary they were offering me was far below what I was then earning.
At this point I would like to insert some comments about some partners of Courts & Co. and two dearly beloved friends.
RW Courts was a wonderful man at heart but kept his cards close to his chest, had become protective of what he created and was not in tune with taking risks to grow. He eventually married one of Atlanta's most beautiful, wealthiest women and it was said RW had arranged a merger. Virginia Campbell's family was big in coal and their foundation is one of the largest, if not the largest, in Georgia. Virginia had all the softness RW lacked.
McKee Nunnally, was a member of the famous Nunnally candy family and married to another Atlanta beauty. McKee was firm, would listen, make a decision, tell you up front and move on and also a man of few words, principled and someone I came to admire very much.
Notwithstanding the fact McKee presided over my Birmingham neighbor who managed the Birmingham office, had driven me to Atlanta expecting I would return home, McKee hired me to stay in Atlanta. That took more guts than my own display of treachery but McKee was who he was and I respected him. As previously noted, my drive back to Birmingham with Arthur Stansel was pin drop silent and tense.
Courts' trading desk partner was Richard Harris. Dick was a world class big game hunter and was close friends with the brother of the Shah of Iran and had introduced the Pahlavi family to The U.S. Trust Company. This becomes significant later as well. While I am mentioning Courts' partners three others were socially prominent. Courts' New York partner was Rex Auchincloss (Jackie Kennedy Onasis' uncle) and two others were William Huger ( a member of a famous South Carolina family) and the other Charleston Partner, who ran the Charleston Office, was married to Owen Cheatham's daughter. Owen was the Chairman of Georgia Pacific.
John "Sonny" Ellis, was my go to partner for investment banking matters. Sonny was a scratch golfer, liked by everyone, bright as could be and a wonderful man who helped me become more professional. I drove Sonny crazy with my fertile ideas and we made many trips together, had some great and interesting times.
I also developed a wonderful friendship with one of Al Revson's best friends and the three of us lunched together frequently at The Commerce Club, where all the big mules in Atlanta were members. I was still a rebel and did not see fit or needed to belong. As I noted earlier, when I was offered my partnership it included a new car and paid Commerce Club Membership. I declined both offers because I loved my Austin Healy sport car and only ate lunch with Al, who already was a member, and Forest Rutherford.
Forest was a handsome man, had become one of our brokers and had an engaging personality. He later married a beautiful, elegant woman (Millie) who died shortly after of cancer. What a tragedy. Forest had a fabulous sense of humor and we became very close. I subsequently learned Al was resentful. I never perceived this. Obtuse me.
Most importantly of all, as noted previously, I had hired, as my "office wife" an older woman, Mary Penuel, to be my secretary in 1961. She was a former WAVE, divorced, devoted to me and her work. I worshipped Mary as did my children. Mary was a fabulous typist, came to love me as I her and she remained my trusted friend for 25 plus years. She wanted to retire after twenty so I had her chained to her desk for another five. When she retired I supplemented her modest SS check because the firm did not have a significant retirement program. Mary died of cancer and her picture remains on another book shelf. They do not make Mary's anymore!
Knowing me to be compulsive and outspoken, Al Revson told me to say nothing at the first Partner's meeting and I obeyed. However, as a General Partner, I had become concerned about our survivability but kept my mouth shut until a future Partner's Meeting at which I asked RW where he thought we would be in ten years and when RW replied: "Well right here," I knew my concern was justified and my heart sank. In response, I suggested we initiate a Planning Committee to explore our options and look inward.
Around this same time, Institutional Investor Magazine became the rage on Wall Street and began the first institutional investment conference in New York. It was a huge success and drew many hedge fund managers and other more sedate investors. I convinced Al Revson we should do the same in Atlanta and he should work on RW. Al did get RW's approval even though RW was not one to spend money and to dream big.
I was allowed to take my project on and eventually even RW caught the fever and hosted an elegant dinner at the famous and exclusive Piedmont Driving Club, where his brother, Malon, had died playing tennis. ( Ironic that a Courts had died on the courts.) RW also arranged for the economist from IBM World Trade to come and speak and he warned our august assemblage gold was going to soar because of inflation and world profligacy. His talk was anticipatory, very prescient but sort of a downer for an audience who wanted to make money buying stocks in undiscovered Southern Growth Companies.
I do not remember the price of gold at that time but it was under $100/ounce. I have the program of the Company presenters somewhere but cannot put my finger on it however, the two day program, first of it's kind ever in the South, was a "uge" success. By the following week we received enough purchase/sell orders to pay for the cost of the entire event and then some. I am sure Goldman Sachs profited more than we did because we kept our trading exposure limited. We simply facilitated orders and never positioned..
The Planning Committee I previously suggested we investigate forming, was begun and Sonny Ellis, RW, his nephew, McKee and Joe Brown, our comptroller, formed the committee. I was not included.
That summer I took an extended vacation with the family in Cape Cod, grew a beard and wrestled with my feelings about remaining a Courts partner. I also was charged with planning the second Institutional Conference but RW wanted me in Atlanta, not in Cape Cod so when I returned and was bearded he called me to his office. He asked me to shave and I refused so he appointed Jay Levine, a brilliant Harvard Business Graduate, who became a partner with me, to host the Conference. I was hurt but had myself to blame because of my obstinate compulsivity.
Meanwhile, unknown to me at the time, the planning committee was busy proving my concerns were justified and that year (1968) we could lose 1 million dollars, certainly the biggest loss we ever sustained and maybe the only one. Our basic problem was we could not handle the level of business we were generating, were way behind in internal bookkeeping and our main margin clerk was still posting in beautiful penmanship but unfinished margin documents were stacked on the floor. We basically had lost control of our business and because Courts' capital was low, around $18 million, and consisted of a variety of substitutes for cash, we were on thin ice according to NYSE capital requirements. RW had 1 million dollars in cash in the firm plus accumulated profits and other partners much less. Several, one in particular, had the assumed value of his country club membership as his capital contribution. It was probably worth a good bit but not particularly liquid.
As a general partner I feared I could be liable for everything I was worth.
The second Institutional program was successful, Jay did a superb job.
My marriage continued to suffer from our basic lack of compatibility and I had begun therapy with the dean of Atlanta psychiatrists who, too, was a Freudian devotee. I suggested Dolly should go as well but, for whatever reason, she demurred. By then she had developed friendships among a few women who were advocates of the "Women's Lib Movement" that was sweeping the nation.
I RESIGN BEFORE COURTS MERGES WITH REYNOLDS 1968- 1969
I decided to reluctantly resign my partnership and moved to our Phipps Plaza suburban office so not to be an embarrassment to my firm's downtown partners and lessen the pain to myself. (Parenthetically, no partner had ever resigned from Courts except yours truly. I know it hurt RW.) Also, I lived within two blocks of the Phipps office and had no responsibilities for it's management. My resignation was never formally acknowledged and several months later I read in the Atlanta Journal, along with every other Courts' employee, including many partners Courts had agreed to be purchased by Reynolds and Company. Atlanta was shocked as were our loyal employees, including the uninformed partners. RW had played it close to his chest and created what came to be a wave of derision, fear of job security and eventual bitterness. It was as if the captain of The Titanic had vacated the ship in the dark of night without informing the passengers.
My faithful Mary had joined me at Phipps.
I subsequently approached our Managing Partner, McKee Nunnally, and asked his permission to consider other employment without prejudice and he graciously said I could but, in turn, wanted me to meet with "Stretch" Gardiner the Head of Reynolds, in New York. I said I would and did so. Stretch was like 6' 10", very personable and urged me to remain and experience the potential benefits. I thanked him without giving him a definitive answer. (Stretch died recently.)
However, I never could accept the way the merger had been handled and all impacted loyal's were left to be informed by reading the morning newspaper. It was so harsh and disrespectful of those whose entire lives had been invested in Courts. That too was part of the problem as to why we lost control but it was not their fault, though, it became their problem.
LAYING THE FOUNDATION OF THE OPENING FOR BURNHAM & CO IN ATLANTA - 1970
While in New York, I had arranged meetings with Burnham and Company and Oppenheimer and Company.
One of my Courts partners, Massey Clarkson, was also thinking about leaving. We discussed my visit to chat with "Stretch" and my meetings with Burnham and Oppenheimer. Massey was very well known in Atlanta Football circles because he was a long time referee and had been associated with Georgia Tech's Football Team as Manager. Massey was well established in the Christian Community, had a charming wife and young daughter and a solid clientele. If I was able to arrange a deal with either Burnham or Oppenheimer, we agreed he would manage the office and I would become head of Institutional Sales. Several Courts' retail brokers, including Forrest, and one or two from other firms were also interested in joining.
The way in which the Courts/Reynolds merger was handled actually spawned several new member firms to open throughout the South. Courts' entire Gainesville, Georgia, office opened for another firm, many top producers left to join other firms. The bleeding had become serious. Reynolds did not know what they actually bought when it came to producing brokers. Brokerage producers are notorious for being independent, having shallow loyalties and solid producers are always sought after targets. Brokerage producers enter elevators at the bottom and you never know how many will exit on any given day.
As I write this, I confess the sequencing of some event dates leave me wondering do I have them dated correctly but I have done justice to the narrative part because the essence of what I have written is accurate.
THE BURNHAM YEARS - MY DIVORCE - 1970 - 1980
I know how I connected with Oppenheimer. A friend happened to be the nephew of one of my clients, had worked at Oppenheimer for many years, was living in Atlanta and arranged for me to meet some of the firm's principals.
I am not sure how I arranged a meeting with I.W. "Tubby" Burnham. Tubby's wife was from Montgomery, Alabama and their well regarded Director of Research, Walter "Wally" Stern was from Nashville but I do not know who specifically helped arrange the meeting. I knew no one in either firm.
My first visit was with the folks at Oppenheimer and they seemed uninterested in opening an office in Atlanta at that time. Oppenheimer was among the first to establish an institutional research department which was well regarded. Their airline analyst was quite well known and respected.
My meeting at Burnham went better. They were a boutique firm, also respected for their research. They had no offices in the South but subsequently branches in Dallas, Los Angeles, New Haven, San Francisco and foreign branches in Amsterdam, Brussels, Geneva, London, and Paris. Tubby was in favor of "going South" because he had roots and insights due to his wife's family connections and his own family's Kentucky ones. He turned me over to two younger partners (Sylvan Sheffler and Howard Brenner) including Walter Stern and they grilled me thoroughly. I brought my institutional/retail production records and we spoke about my investment banking exploits, Massey's connections and brokers who might join us but they had no banking department as such. I left Burnham feeling hopeful and enthused.
Over the ensuing weeks there were many calls back and forth. Massey went to visit Burnham, the two partners I had met came to Atlanta, a deal was struck and a lease for space arranged. Massey was to be the office manager, I to head Institutional Sales. We were guaranteed a fair salary for a year and were left to hire whomever we could. The process of informing my retail clients began and my trusted Mary worked night and day sending out transfer forms. Massey made arrangements for our opening and both of us held many meetings interviewing prospective brokers. Though my focus would be institutional sales I knew I should also retain a retail clientele as an anchor and Burnham encouraged me as well.
I dearly felt great about "Tubby." He was a man that most everyone in Wall Street had great affection for because he was kind, completely trustworthy, had built a respected firm with talented people and was a shrewd investor. He had a large personal clientele, lived in a well known New York hotel with apartments and his son, Jon, also worked for the firm. My personal affection for Tubby only grew in the years I remained with the firm.
My personal life, during all of this was deteriorating and several months after we opened our doors Dolly filed for divorce.
I am getting ahead of myself so let me backtrack. Except for our opening night program, everything that could go wrong did. The office formerly opened on February 1, 1970 (Ten years after I started at Courts & Co.)
OPENING NIGHT, MAYOR HARTSFIELD AND "TUBBY":
Opening night was a home run. Massey arranged for Atlanta's wonderful Mayor Hartsfield to introduce Tubby to a crowd of our clients and many well wishers among Atlanta's movers and shakers. Hartsfield, in his folksy style, introduced "Tubby," who was Chairman of Burnham, as follows:
'Folks, I have the distinct honor of introducing Chairman "Tubby" Burnham. Folks do you know the definition of who a Chairman is? He is someone too old to do anything meaningful but too rich to be ignored.'
"Tubby" loved the introduction, got into the rhythm of being in the "south," told about the firm and why he was delighted for Burnham and Company to be in Atlanta and made some nice comments about Massey and myself.
Then Walter Stern gave a presentation about our respected research department and I believe Al Sommers, our consulting economist and chief economist, with The Conference Board, gave an economic rundown.
It was an interesting evening and Massey and I felt those attending came away knowing we were a firm loaded with talent, worth a try and a firm with some heft and depth, which we both felt we were.
TURMOIL:
Then reality dawned and the dam began to leak, as the rubber hit the road:
Backtracking, earlier, Massey and I both went to tell McKee and he was gracious, urged us to reconsider though he knew we had gone too far and that turning back was hopeless. Our bridges had been burned and we were just one of the timbers on fire at that time. I felt sorry for McKee who always treated me well.
My $75,000 initial investment in Courts and Company eventually was returned plus interest earned.
Then, a broker with Smith Barney's Tampa Office, wanted to leave. He had gotten in touch, through a savvy Smith Barney broker friend in Atlanta who was widely respected as a competing institutional salesman, with one of the two Burnham Partners in charge of overseeing our office. They basically hired him to be my associate. Bruce was a nice person, married, no children, but totally not whom I would have hired. He was very conservative politically which was OK, but his personal portfolio, which was decent in terms of wealth, lacked equities. He was also very old fashioned in his mannerisms and had a dire outlook on the market in general. I was handcuffed and did not get positive vibrations after meeting him. I have suspicions, which I have never revealed till now, but I believe Bruce's Smith Barney Atlanta friend planted him with us knowingly. Here is one of Bruce's oft repeated comments when he wanted to go to the bathroom: "I need to sharpen my skates." UGH.
Second, Forrest, a retail broker, initially got cold feet and I understand why because of his close relationship with Al Revson. He eventually came aboard and to entice him I made a dumb mistake and let him work with one of the powerhouse institutions. The Chairman of that institution rightfully resented my "bribing" action.
Third, Massey had hired an exquisite young lady to be our receptionist and one of the two Burnham partners began to have a relationship with her several months later and I had to inform "Tubby." This partner was married, had several children and obviously had good taste in women but word was all over our pitifully populated office and disruptive. From that day forward our relationship was one in which I knew I had to watch my own back.
Fourth, Neither Massey nor I were producing our salary and both the two overseer partners were getting cold feet and beginning discussions that opening the office was a mistake, perhaps to cover themselves and to staunch any further bleeding and dire prospects of success.
I got a letter from "Tubby" in response to one from me assuring him we would prove him proud and not to scuttle the ship which, I acknowledged, was listing.
I have his reply framed which I will copy in part as follows:
"Dear Dick:
... We are very pleased, in fact excited about our new Atlanta Office and our association with you and your friends. It was awfully nice of Berkley Johnson at the U.S. Trust Company to speak so kindly of us and of me...
Although there are many clouds on the immediate horizon and some people may think we are crazy to open a new branch office, I look forward to it with considerable optimism...
Sincerely yours,
I.W. Burnham II "
Fifth, my divorce was taking both it's emotional as well as it's physical toll because I had moved out of the house and I felt horrible no longer seeing the kids on a scheduled basis. I was living in a nearby rented room with a few of my bare bone belongings by way of furniture and a desk chair I was due to receive had not been forthcoming. Furthermore, I had no paintings on the wall or family pictures.
To add insult to misery, Maj. Brewster asked me to serve on Woodward Academy's Board. My divorce had not surfaced publicly and I told him about my personal travails, how honored I was to be considered and, were matters different, I would gladly accept but did not believe the timing was propitious and thus, I would not be a suitable choice. Again, I was correct morally to put Woodward's interests before my own but, thinking longer term, I was stupid because clarity would occur in time and I would enhance my own personal standing as a young member of a very prestigious board of a class group of wonderful men and eventually some very prominent women. I also might have made a contribution to the prep military school I came to love.
Sixth, in time, matters settled down, several producers joined our fledgling office, New York's confidence improved, the "affair" matter had been squelched. Lamentably, but understandably, our beautiful receptionist departed and my team began to execute some institutional orders.
One of the worst days of my career was having to fire Bruce. I replaced him with another broker and eventually hired a third person. I will go into some detail later
Burnham continued to operate for almost twenty years after the Atlanta office opened.
I. W. ‘Tubby’ Burnham and Family
I want to devote some brief words to the man I very much respected who gave me a chance to prove my worth.. I hope they will prove informative.
To begin with, "Tubby" sat on the board of Continental Telephone with the elegant movie actress, Dina Merrill, who, at that time, was married to Cliff Robertson, another well regarded actor. Dina's mother was Marjorie Merriweather Post of General Foods fame and fortune. (Trump now occupies her magnificent home in Palm Beach etc.)
Several year after the Atlanta Office Opened, Continental Telephone was having a board meeting in Atlanta and "Tubby" invited me to have lunch with him and Ms. Merrill. She was sophisticated and as beautiful as in her pictures.
The name Burnham was originally Bernheim and had been Anglicized. "Tubby's" family wealth, If memory serves me correctly was connected with their involvement in the bourbon industry. "Tubby's" father was a prominent Louisville physician.
"TUBBY"S OBITUARY
I.W. "Tubby" Burnham, founder of the investment firm Burnham Financial Group, died Monday. He was 93.
Mr. Burnham began his career on Wall Street in 1931, when he joined Burnham, Herman and Co.
He became a partner in 1933 and resigned two years later to form Burnham and Co.
In addition to his work on Wall Street, Mr. Burnham served as vice president of the Securities Industry Association and was an emeritus trustee of the University of Pennsylvania, from which he graduated in 1931.
In World War II, Mr. Burnham served as a pilot and base commander in the Civil Air Patrol and received the U.S. Air Medal and Distinguished Civilian Service Award Medal.
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Again, 6 degrees of separation. "Tubby's" granddaughter, Hilary, is the wife of the present owner (Lowell Kronowitz) of Savannah's respected Levy Jewelry Store.
BBACK TO MY 20 YEARS WITH BURNHAM AND MY
DIVORCE - 1970 - 1990
Dolly had chosen a top notch, tough divorce lawyer which was truly unnecessary since I was prepared to be more than fair based on my financial ability and concern for the care of my three daughters.
I chose a friend and client to represent me who felt I would be better served if his partner handled the matter. His partner, Marvin Shoob, was well connected politically. Subsequently,when Shoob became Senator Sam Nunn's campaign treasurer he informed me he no longer could handle my matter. My $5000 advance fee went down the drain.
After I graduated from Law School, Wesley became a small client until his death. He was a treasure, a class act and fabulous teacher. Frank Love subsequently became a client as well.
I BECOME ENGAGED - THEN MARRIED 1970 - 1972
I moved to a larger apartment, Lynn left for Europe even though I begged her to stay. Europe was a dream she had to experience. It was the loneliest summer of my life. I wrote her everyday so she would have a reminder waiting for her.
My closest Court's partner friendships were Al Revson, Sonny Ellis and Dick Harris. Dick and I had a special interest in art and that interest grew over time and we became very close and thus another reason for being in our wedding as one of my groomsmen.
In terms of my work, I will highlight some key events:
JUDY HARTLEY AND THE MEGA YEARS _ 1973- 1980
2) My own institutional business was improving and I decided it was time to hire a female so I went to Emory and interviewed several candidates and offered a job to Judy Hartley. Judy was married, and soon to receive her MBA degree. I came dressed casually in slacks, a Blazer and a tie and began the interview by telling her I was going to ask her questions that were against federal laws and if she wanted to end the meeting I understood. Perhaps curiosity made her respond. She wanted to proceed. I did this in order to learn about her and whether she was suited for the job, something stupid laws prevent you from doing.
Lynn always called those the "Mega Years" because the firm treated us like royalty.
Obviously the office had finally settled down, we were reasonably staffed with some decent retail brokers and I finally had an associate, on the institutional side, who was more to my liking.
AMY, DEBRA COME TO LIVE WITH US 1975 - 1976
Obviously the office had finally settled down, we were reasonably staffed with some decent retail brokers and I finally had an associate, on the institutional side, who was more to my liking.
AMY, DEBRA COME TO LIVE WITH US 1975 - 1976
From a personal standpoint, Amy, my second daughter, wanted to come live with us and, in Georgia, a child can elect once they are 14. Amy did come a little earlier in 1974. Debra came the summer of her freshman year in college and Lisa, my third daughter, remained with her mother. Our son, Daniel, was born in 1977 and our daughter, Abby, in 1980. Thus, Lynn became responsible for two teenagers several years after we were married, at 26 years of age., in addition to raising two of her/our own.
I was busier than ever because of our expanding business and the demands of our expanding family.
Lynn was fabulous in my eyes, still is and always will be, and I was one contented soul as I turned 40.
My own folks loved Lynn and were always thankful she and her own family came into our collective lives.
Lynn and I celebrated my folk's 50th Anniversary in Atlanta and invited their friends who had moved from Birmingham to Atlanta, and friends my folks had come to know and liked as a result of their many Atlanta visits. Included that evening, was my former psychiatrist, Bill and his wife, Lena, Rottersman. We had become socially close and he became a client after I finished my sessions. That evening I roasted my parents. Like MLK, I felt free at last. I truly rose to the occasion and hit all the notes so much so my father probably wet his pants laughing and my mother was under the table totally embarrassed.THE MILKEN CONFERENCE 1986?
6) Judy and I attended a conference in New York around, I believe,1986, at which Michael Milken spoke to the institutional sales department. Michael graduated from Wharton, as had "Tubby," and was working at Drexel when we acquired the Drexel firm. He was a math whiz and was trading depressed bonds. He convinced "Tubby" there were significant profits to be made in trading them. Burnham, as I noted earlier, was not an aggressive trading firm but simply a conduit through which orders were executed much like Courts.THE BOESKY EXPLOSION - 1986 -1989
I returned to Atlanta and it was a few days before The Jewish New Year. I sat down and wrote FredJoseph a letter wishing him and his family a Happy New Year. Then I gave him my thoughts about the "Milken Conference" and wrote that I was just a southern boy who could not relate to our becoming a dynasty unless it was the TV program starring the beautiful Linda Evans. I do not remember how many days passed before the Ivan Boesky explosion hit the financial world. I never received a reply from Fred Joseph.
At Drexel Burnham we had several outside consultants:
Al Sommers was the Economist for The Conference Board and an economic advisor to our firm. Al taught me how to spell inflation. We made many travels through the territory and he was generally correct in his forecasts. Al had a droll sense of humor and loved tennis. Sadly, I never got to play him.
Al knew I had contacts within the Carter Administration and asked could I arrange an invite down to The Pond House where there was going to be an economic Pow Wow as the Administration began selecting members and advisers.
I arranged such for Al through Charles Kirbo. Mr. Kirbo was a senior partner in a very prestigious Atlanta Law Firm and, in my opinion, was a surrogate father type to Jimmy Carter.
Al attended the meeting and on his way back to New York called to thank me and I asked would he be joining the Administration in some capacity. He replied he would not because they were totally misguided when it came to understanding what was needed. I should have paid more attention to Al's observations and sold stocks and bought Government Bonds which eventually paid, if memory serves me correctly, over 10%.
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Abby Cohen worked at The Federal Reserve as an analyst before joining Burnham. She was very bright and became our market strategist. Judy and I traveled with her on her first trip south to speak with our clients. Abby is short, sort of matronly and never used much makeup. She also had a somewhat monotone delivery. Because Judy was of the same sex we agreed it would be better if she chatted with Abby to give her some "presentation pointers."
When our firm closed their doors, Abby was hired by Goldman to do for them what she had for us. Within less than a year, Abby became the public voice of Goldman, was very bullish even through several severe market corrections. Abby is still at Goldman, a partner and, though no longer enjoys as high a public profile, continues to do her thing.
The reason I mention this is in psychiatry there is an expression called "association with the aggressor." While Abby was at Drexel, she was well received among our client base, respected for her obvious talent but when she joined Goldman their reputation rubbed off on her and she became a "genius."
No doubt, at Goldman, Abby had access to, perhaps, more information and contacts but it is interesting how Wall Street reacts when one is with a more prestigious firm. Sheep are sheep wherever.
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Dave Hawkins was a native of Australia, one of their Olympic swimming champions and an accounting professor at The Harvard Business School. He was a consultant to our firm on corporate accounting matters and a consultant to G.E. I never will forget Dave said G.E had so many accounting pockets it could always beat the "whisper number" when quarterly reporting time came around, of course until G.E no longer had earnings. It is fascinating how so many Wall Street mighty fall from grace like Polaroid, Eastman Kodak, Sears etc.
I mention this because, while David was highlighting how clever G.E was accounting-wise ,the Welch Years came back to haunt them. Far too many listed companies break their necks trying to meet Wall Street short term reporting expectations and forecasts and take their eye off spending on research and staying abreast of changing markets and remaining competitive etc. They endanger their very existence for fear of reporting lower earnings and thus, impacting their stock prices.
In America far too much emphasis is placed on short term thinking. We like fast food, fast cars, and lose sight of the benefit of long term thinking and strategizing.
Asians take a longer term perspective and because China is a dictatorship, I worry that our own political system does not permit such and this places us at many distinct disadvantages.
G.E has stabilized and actually may be on its way back but it will not be like it was for decades, if ever.
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THE OPPENHEIMER YEARS BEGIN - 1980 - 2002
It must be Oppenheimer was bashert (Yiddish for "meant to be.") As you may recall, I had visited them some 20 years before and now they had an Atlanta Office and, institutionally speaking, were covering the territory from New York. I never knew their salesperson but was told he was a lavish entertainer. I never was because I put service ahead of entertaining. Socially speaking, I am awkward in a large crowd and also am not a drinker nor do I talk sports. I am not a man's man when it comes to repartee'. Neither am I a lady's man. Socially I am a quiet misfit and prefer smaller crowd interaction and settings. I am more a one on one type. Ask my dear friend Charlie Bourland and Minister Jim Giddens, among others.Parenthetically, the head trader I interviewed with in New York was eventually fired because the firm
probably came to realize he was certified insane. I never inquired but was not surprised.
Then of course we have Daniel and Abby.
Daniel is married to a lovely young lady, Tamara (Tammy), and they have given us Stella and Max so the world will have to contend with another generation of Berkowitzes. Then we round it all out with Abby who married Brian and they have given us Dagny and Blake. We are picking up Dagny and Blake, Christmas Day, 2020, in Jacksonville and bringing them back to The Landings for R and R and returning them to Orlando so we can go to dinner and celebrate their mommy and daddy's 40th mutual birthdays. Abby is a whole day older than Brian.
BACK TO OUR ATLANTA DAYS - 1972
After Lynn and I were married we lived at Middleton Arms Apartments on Buford Highway and after Abby was born we moved into a condo on Ashford Dunwoody. We loved living there because it was a small neighborhood, had a pool and tennis court but it was poorly constructed. I offered to hire a special law firm, be the point man if the community wanted to sue the builder and banks, to correct structural changes, as long as my neighbors would not interfere. They agreed and I and our attorneys worked well together. I kept my neighbors updated every month and more when there was specific news or important decisions to be made. The main issue was the external brick walls were pulling away because they had not been properly tied. After several years, we recovered enough to have scutcheons reattach the walls and pay our attorneys.Best of all, we had neighbors which became extended family. This coming summer we will go to N Litchfield Beach for the 43rd time with our Atlanta Family who are cherished. Our kids all grew up together. In fact as I write this we just returned from a glorious week of good food, conversation, tennis and fabulous weather.
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I had previously discussed, with Oppenheimer, moving to Savannah and encouraged them to let me open a small home office and they agreed. They authorized me to set up shop in my home in a dedicated room and also gave thought to opening a branch office. Then the market turned "further south" and they chose not to do so because of conditions in 2003. Having relinquished most of my institutional accounts, my level of production plummeted and we parted ways. I retained 15 accounts which I moved to Schwab and proceeded to manage money for some long time retail clients including family members. The number of 15 accounts was the legal limit if you wanted to avoid becoming a registered advisor and going through all the regulatory issues and costly structural burdens.
Also, The Landings is special, the people even more so and we cherish the many friendships we have made since moving to Savannah.
My next project is to probe the interests of my 5 older grandchildren, get to know them better and become a closer grandfather.
Finally, I will end PART ONE by recapping some of the activities I have been involved in, our travels and special interests during my adult life but in no particular order:
BOARD SERVICE AND EXTRACURRICULAR ACTIVITIES
1) I was a member of Bush 41's Presidential Finance Committee after which he selected me to become a Board member of The President's Commission on White House Fellows. I served from '90 - '92.
2) I served on the advisory board of The Woodrow Wilson International Center for Scholars from '97 - '98.
3) I served on The Board of Advisors of St John's College from '95 - 2001. St. John's is the Great Books College and third oldest College in America. Francis Scott Key Established the Alumni Association. I celebrated my 65th birthday in 1998 by inviting a close number of friends to come to the Santa Fe Campus of St John's and spend an extended weekend discussing "What It Means To Be A Good Citizen." With faculty tutor assistance, I put together select readings including Washington's Farewell Address, Lincoln's Gettysburg Address, readings from Ecclesiastes, Federalist Paper Number 10, etc. The topic I chose is one that has always meant a great deal.
Thursday we began with an elegant catered dinner at the President's Home. Formal discussions started on Friday followed by another beautiful catered dinner in the fabulous Zaplin Lampert Gallery on Canyon Road. Saturday the discussions ended and everyone went their way "touristing" and then joined for dinner that evening followed by listening to Nat King Cole's daughter, performing at a local hotel. All departed on Sunday.
Sadly, several of the attendees have passed but all enjoyed that unusual experience. I am in contact with those who remain.
4) I have been on The Advisory Board of the State of Georgia Museum of Art (GMOA) in Athens for many years and remain so currently.
5) I have served on The Savannah Jewish Education Alliance Investment Foundation Board for several years and remain so currently.
In 2007 I was selected as The JEA Board Member of The Year for starting The JEA Speaker Series.
6) I served on the Skidaway Island Republican Board for 7 Years, from 2012-2019 and, as previously noted, obtained 7 well known speakers for our annual fund raising dinner.
7) In 2012 I merged my writing skills with my political thoughts and wrote an anti- Dr Spock booklet, which my friend Charlie Bourland snidely calls a pamphlet. It was entitled: "A Conservative Capitalist Offers Eleven Lessons and A Bonus lesson, For Raising America's Youth Born and Yet To Be Born!"
My granddaughter Emma, was my illustrator, and Lisa, my third daughter, was my editor, my Canadian Computer Guru, Paul Laflamme, helped me market the work through Amazon. The purpose was to raise money for The Wounded Warrior Project which I later learned takes about a third of all donations for marketing and administrative purposes. After defraying Paul's cost and a modest sum to Emma and Lisa and Amazon's marketing costs, I only raised some $300 plus dollars.
I believe the "booklet" is still available through Amazon. Every mother in America would be wise to read it and if they did. and adhered to the advice. America would be better off as would their offspring.
8) In 2012 my infamous daily memo list included some 200 plus potential readers and today the list of readers has grown to slightly over 600. I am pleased to note some of my readers are very prominent national writers in their own right. When Bernie Marcus spoke here he made the generous comment, which I know is not true, that if the audience read my memos they need not read a lot of other mass media papers etc.
9) Lynn and I were founding members of The University of Georgia's President's Club as well as The Booth Museum of Western Art in Cartersville, Georgia. (Lynn attended and graduated from UGA.)
10) While living in Atlanta, during the period of the OLYMPIC'S, I was asked to prevent The Blackburn Park Master Plan Commission from locating the Olympic Tennis Facility in our neighborhood and was successful.
The reason being outlandish/disruptive traffic during the Olympics and post them we feared it would turn into a concert venue like Chastain.
11) Served on the Advisory Board of Savannah's Spine and Sports Company .
TRAVELS AND ART TOURS
1) Military service in France and being stationed in the LOIRE Valley allowed for extensive travel in France.
2) CRUISES
Various Caribbean trips
The Azores and Portugal
Spain to Venice including French and Italian ports
Several French Country Waterway Barge Trips in France. One with The Bourland's.
Took five grandchildren and Abby to China
Took Abby to Australia and New Zealand
Also took Abby to Japan to visit Daniel and Tamara when he was in charge of The United States
Pavilion of The World's Fair in Nagoya
Traveled to Bali, Indonesia, Viet Nam and the Orangutan Leakey Preserve sailing to the Komodo Island
to view the Dragons
An Alaskan Cruise and fished for and caught Halibut
Several Disney Cruises, one with our 5 grandchildren and Abby
Flew to Tahiti and cruised the Marquesas Islands aboard The Aranui, a dual
passenger/cargo vessel.
Several trips to Israel, including one with Daniel and Abby
A private crewed sail to several Turkish Islands preceded by a trip to Turkey proper with Daniel, Abby and Lynn's brother and his wife (Stuart and Eva.)
The Florida Keys
Crewed sailing trip out of Savannah around Georgia Barrier Islands but, due to
inclement weather, never got off the boat with Steve and Amy, Debra and Martin
Various family cruises and one in particular which included our 5 children, various spouses and children and Tammy's folks, ie. Debra and Martin, Amy and Steve, Lisa and Martin, Abby and Brian, Daniel and Tamara and her father and mother (David and Anica)
Another cruise with Frances and Julius and all their grandchildren, Stuart and Eva and ourselves
The one trip I always wanted to take was a freighter voyage but am past the age restriction limit. Oh well, you can't do everything. The Aranui was a compromise. - 100 passengers and freight
Drove coast to coast (43 days) taking the southern route to include Louisiana, Texas, Arizona, California, Nevada, New Mexico, Oklahoma, Tennessee, Alabama before returning to Savannah.
Huntsville, Alabama Space Museum with Daniel and Abby
Extensive drive through Mississippi, Louisiana, returning to Savannah by way of Alabama's Gulf Coast,
Florida's Panhandle and finally the Okefenokee's
Toured North Carolina's Outer Bank area
Motored throughout Normandy and Brittany after a barge trip ending in Alsace
Motored to the French Riviera and Provence
Began in Prague, flew to Switzerland and made an extensive drive through Italy
The Cody Dude Ranch in Wyoming with Daniel after which we drove around Colorado and Utah.
Frontier Days in Wyoming after which we drove to Montana and stayed at Glacier National Park with Daniel and AbbyMountain Sky Dude Ranch in Montana and rafted in Yellowstone with Daniel and Abby
Abby's 21st birthday in Mesa Verde, stayed at Kelly's Place in Cortez Colorado with Abby, Brian, Debra and family.While on the Board of St John's we did many trips to Santa Fe and Annapolis
Toured entire east coast of Wisconsin's Door County, including Madison and Milwaukee with the Bourland's and side trip to Chicago to visit Lisa and Martin.San Francisco with Amy.
Maine drive around including Cape Cod.
Family celebration trips to Calloway Gardens, Pine Mountain Georgia, near Warm Springs, a highly recommended place for golfers, family vacations and lovers of good "suthren" cooking and garden fresh vegetables etc.SOME EXCEPTIONAL TRIPS
To celebrate Lynn's 60th and my own 75th, to Costa Rica for a family trip in 2008- everyone, except Daniel and Tamara, who were opening their bakery, came -turned out to be a memorable trip and proved that our family could get along fine but "yes, why not", our hotel, "Si Como No " was fabulous.Camping trip to Cumberland Island
Trip to Gatlinburg, Tennessee
TWO SPECIAL ANNUAL EVENTS
As noted previously, our last home in Atlanta was near The Peachtree Golf Course. Several of our neighbors became extended family and we began to be included in an annual summer trip to North Litchfield Beach, South Carolina. Over the years many changes have taken place but initially we, the Hamilton's, and Davidson's rented a large house to accommodate not only our own children but also each could bring a guest.In the morning as many as 22 would pile out and it reminded me of circus clowns exiting a small car.
Today, we, the Majeska's, Hamilton's and other couples are still going strong. We rent a smaller home, our children have all gone off and gotten married and have their own kids so it is just parents 43 years later. The guys play tennis, each family cooks one night and then we go out for dinner the remaining nights. These are treasured times and memories.
The second special annual trip is when Lynn's mother decided to rent a house for two weeks at Tybee so Lynn's brother's family and our's could come together with the "first cousins." Over the years, Lynn says Frances rented over 13 different homes and I will not dispute her. When Lynn's folks passed away we kept up the tradition but only for one week and we have been in the same house for some 10 or more years. Frankly, we have outgrown the house but the owners have also become family, are so accommodating and flexible we don't have the heart to make a change. All family members are welcome. Lynn's brother's family no longer participate as their own children take them out west to Colorado and Washington State. We have years of photos by Lynn, Abby, Martin D, Dick Hochman and professionals. Again these memories become treasures.
Lynn does most all the cooking, we treat the kids to an evening out and during the day everyone goes to the beach. In the evening we play Left, Right, Center and do complex jig-saw puzzles. I try to watch the news but the "din" is too strong. Every year the same routine, same dishes, same activities and that is how you create traditions.
As for me, I get "nachas" (pleasure) watching the grandchildren grow and relate to each other. I still am not good or know how to get down on their level and ask questions as Lynn does and physically, were I to try, I would still be there.
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Earlier, in my travels with my three girls, we spent a lot of time going to Florida, some with my folks, mainly to Destin, Sarasota and Long Boat Key. As previously noted, when I was at Courts I took my girls with Dolly to Cape Cod and drove home with Debra to Atlanta.
MISCELLANEOUS OTHER INTERESTS
Lynn and I have been art and object collectors and always try to find something of our liking that we can afford when we travel as well as impulse purchases. We also enjoy antiquing always looking for "finds." Our collection is eclectic in nature and includes American works on paper and oils, native America Pots and Beadwork, Asian objects, African masks and carvings, Southwestern Art, including Kachinas and baskets, as well as a few furniture items, sculpture, Persian and Turkish rugs and objects from Israel and China.
My own interests in conservative politics began at Wharton and has grown over the years as well as my distaste for progressive, radical liberalism and, more currently, the entire Democrat party.
Obviously, I love reading and writing focusing on biographies, politics, economics and history and, on occasion, "beach books" like John Gresham, etc.
When I moved to Savannah, I decided to expose our friends to Georgia Art so for many years I put groups together to visit the State Museum (GMOA) located on the Univ. of Ga. campus in Athens, the Booth Western Art Museum in Cartersville,. Ga.. Space-wise The Booth is the largest Western Art museum in the nation.
I also encourage every one to visit Don Kole's African Museum in Savannah
SPECIAL INTEREST
Over 20 years ago we established a modest Charitable Foundation. Upon our respective deaths 6 of our favorite charities will receive the proceeds. They are as follows:
St John's Santa Fe Campus - Lynn and Dick Berkowitz Undergraduate Scholarships
Ga. Museum of Art - Lynn and Dick Berkowitz Print and Drawing Acquisition Fund.
Lynn and Dick Berkowitz Israel Travel Scholarships.
Abe Berkowitz Law Scholarship Foundation at Samford University
Daniel Berkowitz , Abby Berkowitz Nelson, Missy Sanchez and Suzanne Lamfalusi Scholarship Fund At Woodward Academy.
Hadassah Medical Center.
A Berkowitz Holocaust Foundation, Washington D.C.
The first section of my autobiography focused, significantly, on my own life, most particularly my work experience, first marriage and to some degree my education.
This second section, will focus more on individual family members, interaction, travels and activities with our five children and their progeny, our grandchildren and their children, ie our great grandchildren.
I will discuss our children and their offspring beginning in birth order:.
I already wrote a good bit about Debra. She came to live with Lynn and myself as she entered Keyon College. Kenyon is one of the fine, small liberal art colleges in the mid west and is located in Gambier, Ohio. The college has been heavily supported by the Gund banking family. Paul Newman attended Kenyon before Debra matriculated though she met him when he returned. My father and I visited Kenyon and Lynn and I attended her graduation.
During her time at Kenyon she also spent a year abroad in Spain and Nantes, France and is very good with languages. She also knows Hebrew and is actively involved in synagogue life.
Debra was infatuated with her political science professor, John Agresto, and that is how I came to be on St John's College Board of Visitors. When John was offered the Santa Fe Campus position of President he also was given one choice to represent him on their Board and he selected me and I readily accepted. As previously noted, St John's is the 3rd oldest college in America, the curriculum is "The Great Books" and I discovered the school one weekend when I was in Annapolis (their first campus) on a day pass when I was stationed at Camp Getchie during my PLC training.
After graduation, Debra went to New York and actually worked a while at Burnham and also for a renowned publishing firm.
She met her husband, Martin Darvick, then a member of GM's in-house legal counsel staff. Martin was from New York, graduated Brooklyn College of the City University of New York in 1969 (Cum Laude.) and earned a law degree from The University of Pennsylvania in 1972 (also Cum Laude.) He worked for the prestigious firm of Shea Gould from 1972-5, specializing in Securities Law. He moved to CIT in 1976 and to General Motors Corporation from 1976 to 2009 (specializing in Securities Law and Finance). He took early retirement some 10 or more years ago.
Martin enjoys photography, traveling, gardening, reading, walking and being with family.
They live in Birmingham, Michigan..
Martin took up photography as a hobby and is quite accomplished. Debra is a published author, extremely creative and has many diverse interests.
Below are samples of Martin's work and Debra's beauty.
Debra and Martin's second child is Emma who graduated from Trinity College in Hartford, Connecticut with an art degree and now works for a very large magazine firm and worked her way up the ladder to a senior position as an illustrator. This past November, she married our tallest grandson (6' 5"), Scott, who has his own business as an art/sculptor installer and all round craftsman. They currently live in New York but just bought a home on the Hudson River and Scott will be fixing it up and relocating his studio-woodworking operation contiguous to their house. Emma also is an independent artist whose stylized work reminds me of Alex Katz.
We own a lovely piece of her art and you can see her work at EmmaDarvick.Com I believe her art is underpriced.
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MARTIN THALER
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As for Henry, our youngest grandchild, he lives in Los Angeles, Graduated from Georgetown University and has had a variety of jobs and positions in the world of television beginning as an NBC Page and then writer's assistant as follows:
TAKEN AT HENRY'S GRADUATION
We have many albums of pictures to document our expanding family including slides from when I served in France which I recently gave to Debra who was born there.
I have every reason to believe my children, grandchildren and greatgrandchildren will do well because they have,or will have, a good educations, good parenting and benefit from a decent gene pool.
My greatest concerns: I believe I lived in the filet mignon period of America and what "choice cuts" are left for them is debatable. There is no doubt China is the great emerging power that could well surpass us and could have a significant negative impact on the remaining nations of the world. Socialism and Communism have proven empty and dangerous promises. Only radicals, the uninformed and the discontented are dumb enough to flirt with or embrace them.
I remain troubled America no longer positions education in it's rightful vaulted place and our extraordinary level of debt is frightfully dangerous. A republic form of government requires constant and informed attention. Ben Franklin was spot on with his prescient warning.
For every top there is a bottom and for every beginning there is an end. No one knows when theirs' will occur but statistically I certainly have less ahead than I have already lived.
As to my family, I leave you with this simple message - always treat others as you would like them to treat you. Perhaps trite but very powerful. It will always serve you well.
This autobiography, hopefully, will prove a meaningful/insightful extension for those whose lives I have touched. and to whom I am indebted.
I confess to the fact, this autobiography is more factual, less feeling and that too is revealing and therefore, remains constant my challenge.
Finally, I thank my son, Daniel, for suggesting I write this so those in the family who know me might learn more about who I am and why and those in the family who will never know me will learn who was their patriarch.
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I thought it might be interesting to post a synopsis of what happened to this creative firm as a result of it's involvement with Michael Milken.
For those who might be interested in the Burnham Story and it's demise I have included a synopsis of it's history below.
Burnham Becomes Drexel Burnham Lambert:
Drexel Burnham Lambert was an American investment bank that was forced into bankruptcy in 1990 due to its involvement in illegal activities in the junk bond market, driven by senior executive Michael Milken. At its height, it was a Bulge Bracket bank, as the fifth-largest investment bank in the United States.[2]
The firm had its most profitable fiscal year in 1986, netting $545.5 million—at the time, the most profitable year ever for a Wall Street firm, and equivalent to $1.1 billion in 2019. In 1986, Milken, who was Drexel's head of high-yield securities, was paid $295 million, the highest salary that an employee in the modern history of the world had ever received.[1][3][4][5]
The firm's aggressive culture led many Drexel employees to stray into unethical, and sometimes illegal, conduct. Milken and his colleagues, at the high-yield bond department, believed the securities laws hindered the free flow of trade. Eventually, Drexel's excessive ambition led it to abuse the junk bond market and become involved in insider trading. On February 1990, Drexel was forced into Chapter 11 bankruptcy by the chairmen of the New York Federal Reserve and the Securities and Exchange Commission. It was the first Wall Street firm to be forced into bankruptcy since the Great Depression.[6]
After Drexel's collapse, Kurt Eichenwald of the New York Times noted the bank "fueled many of the biggest corporate takeovers of the 1980s."[7]
I.W. "Tubby" Burnham, a 1931 graduate of the Wharton School of the University of Pennsylvania, founded the firm in 1935 as Burnham and Company, a small New York City–based retail broker.[8] Burnham started the firm with $100,000 of capital (equivalent to $1.5 million in 2019), $96,000 of which was borrowed from his grandfather, the founder of a Kentucky distillery.[6]
It became one of the more successful brokerages in the country, eventually building its capital to $1 billion.[2] While Burnham eventually branched out into investment banking, the company's ability to expand was limited by the structure of the investment banking industry of that time. A strict unwritten set of rules assured the dominance of a few large firms by controlling the order in which their names appeared in advertisements for an underwriting. Burnham, as a "sub-major" firm, needed to connect with a "major" or "special" firm in order to further expand.[6]
Burnham found a willing partner in Drexel Firestone, an ailing Philadelphia-based firm with a rich history. Drexel Firestone traced its history to 1838, when Francis Martin Drexel founded Drexel & Company. His son, Anthony Joseph Drexel, became a partner in the firm at age 21, in 1847. The company made money in the opportunities created by mid-century gold finds in California. The company was also involved in financial deals with the federal government during the Mexican–American War and the U.S. Civil War. A. J. Drexel took over the firm when his father died in 1863. He partnered with J. P. Morgan and created one of the largest banking companies in the world, Drexel, Morgan & Co.[9]
In 1940, several former Drexel partners and associates formed an investment bank and assumed the rights to the "Drexel and Company" name. The old Drexel, which chose to concentrate on commercial banking after the Glass–Steagall Act regulated the separation of commercial and investment banking, was completely absorbed into the Morgan empire. The new Drexel grew slowly, coasting on its predecessor's historic ties to the larger securities issuers. By the early 1960s, it found itself short on capital. It merged with Harriman, Ripley and Company in 1965,[6] and renamed itself Drexel Harriman Ripley. In the mid-1970s, it sold a 25 percent stake to Firestone Tire and Rubber Company, renaming itself Drexel Firestone.
Despite having only two major clients by the dawn of the 1970s, Drexel was still considered a major firm, and thus got a large chunk of the syndicates formed to sell stocks and bonds. It was a shell of its former self, however, as evidenced in 1973, when a severe drop in the stock market sent the firm reeling. Drexel management soon realized a prominent name was not nearly enough to survive, and was very receptive to a merger offer from Burnham.[1]
Even though Burnham was the surviving company, the more powerful investment banks (whose informal blessing the new firm needed to survive on Wall Street) insisted that the Drexel name come first as a condition of joining the "major" bracket. Thus, Drexel Burnham and Company, headquartered in New York, was born in 1973[10] with $44 million in capital.[6]
In 1976, it merged with William D. Witter (also known as Lambert Brussels Witter), a small "research boutique" that was the American arm of Belgian-based Groupe Bruxelles Lambert. The firm was renamed Drexel Burnham Lambert, and incorporated that year after 41 years as a limited partnership.[6] The enlarged firm was privately held; Lambert held a 26 percent stake and received six seats on the board of directors. Most of the remaining 74 percent was held by employees.[1] Burnham remained the enlarged firm's chairman. He handed the posts of president and CEO to Robert Linton, who had begun at Burnham and Company in 1945 as a stock certificate runner. Burnham handed the chairmanship to Linton as well in 1982.[8][11][6]
Burnham Becomes Drexel Burnham Lambert:
Drexel Burnham Lambert was an American investment bank that was forced into bankruptcy in 1990 due to its involvement in illegal activities in the junk bond market, driven by senior executive Michael Milken. At its height, it was a Bulge Bracket bank, as the fifth-largest investment bank in the United States.[2]
The firm had its most profitable fiscal year in 1986, netting $545.5 million—at the time, the most profitable year ever for a Wall Street firm, and equivalent to $1.1 billion in 2019. In 1986, Milken, who was Drexel's head of high-yield securities, was paid $295 million, the highest salary that an employee in the modern history of the world had ever received.[1][3][4][5]
The firm's aggressive culture led many Drexel employees to stray into unethical, and sometimes illegal, conduct. Milken and his colleagues, at the high-yield bond department, believed the securities laws hindered the free flow of trade. Eventually, Drexel's excessive ambition led it to abuse the junk bond market and become involved in insider trading. On February 1990, Drexel was forced into Chapter 11 bankruptcy by the chairmen of the New York Federal Reserve and the Securities and Exchange Commission. It was the first Wall Street firm to be forced into bankruptcy since the Great Depression.[6]
After Drexel's collapse, Kurt Eichenwald of the New York Times noted the bank "fueled many of the biggest corporate takeovers of the 1980s."[7]
I.W. "Tubby" Burnham, a 1931 graduate of the Wharton School of the University of Pennsylvania, founded the firm in 1935 as Burnham and Company, a small New York City–based retail broker.[8] Burnham started the firm with $100,000 of capital (equivalent to $1.5 million in 2019), $96,000 of which was borrowed from his grandfather, the founder of a Kentucky distillery.[6]
It became one of the more successful brokerages in the country, eventually building its capital to $1 billion.[2] While Burnham eventually branched out into investment banking, the company's ability to expand was limited by the structure of the investment banking industry of that time. A strict unwritten set of rules assured the dominance of a few large firms by controlling the order in which their names appeared in advertisements for an underwriting. Burnham, as a "sub-major" firm, needed to connect with a "major" or "special" firm in order to further expand.[6]
Burnham found a willing partner in Drexel Firestone, an ailing Philadelphia-based firm with a rich history. Drexel Firestone traced its history to 1838, when Francis Martin Drexel founded Drexel & Company. His son, Anthony Joseph Drexel, became a partner in the firm at age 21, in 1847. The company made money in the opportunities created by mid-century gold finds in California. The company was also involved in financial deals with the federal government during the Mexican–American War and the U.S. Civil War. A. J. Drexel took over the firm when his father died in 1863. He partnered with J. P. Morgan and created one of the largest banking companies in the world, Drexel, Morgan & Co.[9]
In 1940, several former Drexel partners and associates formed an investment bank and assumed the rights to the "Drexel and Company" name. The old Drexel, which chose to concentrate on commercial banking after the Glass–Steagall Act regulated the separation of commercial and investment banking, was completely absorbed into the Morgan empire. The new Drexel grew slowly, coasting on its predecessor's historic ties to the larger securities issuers. By the early 1960s, it found itself short on capital. It merged with Harriman, Ripley and Company in 1965,[6] and renamed itself Drexel Harriman Ripley. In the mid-1970s, it sold a 25 percent stake to Firestone Tire and Rubber Company, renaming itself Drexel Firestone.
Despite having only two major clients by the dawn of the 1970s, Drexel was still considered a major firm, and thus got a large chunk of the syndicates formed to sell stocks and bonds. It was a shell of its former self, however, as evidenced in 1973, when a severe drop in the stock market sent the firm reeling. Drexel management soon realized a prominent name was not nearly enough to survive, and was very receptive to a merger offer from Burnham.[1]
Even though Burnham was the surviving company, the more powerful investment banks (whose informal blessing the new firm needed to survive on Wall Street) insisted that the Drexel name come first as a condition of joining the "major" bracket. Thus, Drexel Burnham and Company, headquartered in New York, was born in 1973[10] with $44 million in capital.[6]
In 1976, it merged with William D. Witter (also known as Lambert Brussels Witter), a small "research boutique" that was the American arm of Belgian-based Groupe Bruxelles Lambert. The firm was renamed Drexel Burnham Lambert, and incorporated that year after 41 years as a limited partnership.[6] The enlarged firm was privately held; Lambert held a 26 percent stake and received six seats on the board of directors. Most of the remaining 74 percent was held by employees.[1] Burnham remained the enlarged firm's chairman. He handed the posts of president and CEO to Robert Linton, who had begun at Burnham and Company in 1945 as a stock certificate runner. Burnham handed the chairmanship to Linton as well in 1982.[8][11][6]
Business
Drexel's legacy as an advisor to both startup companies and fallen angels remains an industry model today. While Michael Milken (a holdover from the old Drexel) got most of the credit by almost single-handedly creating a junk bond market, another key architect in this strategy was Fred Joseph. Shortly after buying the old Drexel, Burnham found out Joseph, chief operating officer of Shearson Hamill, wanted to get back into the nuts and bolts of investment banking and hired him as co-head of corporate finance. Joseph, the son of a Boston taxicab driver, promised Burnham that in 10 years, he would make Drexel Burnham as powerful as Goldman Sachs.[10]
Joseph's prophecy proved accurate. The firm rose from the bottom of the pack to compete with and even top the Wall Street Bulge Bracket firms. While Milken was clearly the most powerful man in the firm (to the point that a business consultant warned Drexel that it was a "one-product company"),[3] but it was Joseph who succeeded Linton as president in 1984, adding the post of CEO in 1985.[6]
Drexel, however, was more aggressive in its business practices than most. When it entered the mergers and acquisitions field in the early 1980s, it did not shy away from backing hostile takeovers—long a taboo among the established firms. Its specialty was the "highly confident letter", in which it promised it could get the necessary financing for a hostile takeover. Although it had no legal status, Drexel's reputation for making markets for any bonds it underwrote was such that a "highly confident letter" was as good as cash to many of the corporate raiders of the 1980s.[6] Among the deals it financed during this time were T. Boone Pickens' failed runs at Gulf Oil and Unocal, Carl Icahn's bid for Phillips 66, Ted Turner's buyout of MGM/UA,[6] and Kohlberg Kravis Roberts successful bid for RJR Nabisco.[12]
Organizationally, the firm was considered the definition of a meritocracy. Divisions received bonuses based on their individual performance rather than the performance of the firm as a whole. This often led to acrimony between individual departments, who sometimes acted like independent companies rather than small parts of a larger one. Also, several employees formed limited partnerships that allowed them to invest alongside Milken. These partnerships often made more money than the firm itself did on a particular deal. For instance, many of the partnerships ended up with more warrants than the firm itself held in particular deals.[1]
The firm had its most profitable fiscal year in 1986, netting $545.5 million—at the time, the most profitable year ever for a Wall Street firm, and equivalent to $1.1 billion in 2019. In 1987, Milken was paid executive compensation of $550 million for the year.[1][3]
Joseph's prophecy proved accurate. The firm rose from the bottom of the pack to compete with and even top the Wall Street Bulge Bracket firms. While Milken was clearly the most powerful man in the firm (to the point that a business consultant warned Drexel that it was a "one-product company"),[3] but it was Joseph who succeeded Linton as president in 1984, adding the post of CEO in 1985.[6]
Drexel, however, was more aggressive in its business practices than most. When it entered the mergers and acquisitions field in the early 1980s, it did not shy away from backing hostile takeovers—long a taboo among the established firms. Its specialty was the "highly confident letter", in which it promised it could get the necessary financing for a hostile takeover. Although it had no legal status, Drexel's reputation for making markets for any bonds it underwrote was such that a "highly confident letter" was as good as cash to many of the corporate raiders of the 1980s.[6] Among the deals it financed during this time were T. Boone Pickens' failed runs at Gulf Oil and Unocal, Carl Icahn's bid for Phillips 66, Ted Turner's buyout of MGM/UA,[6] and Kohlberg Kravis Roberts successful bid for RJR Nabisco.[12]
Organizationally, the firm was considered the definition of a meritocracy. Divisions received bonuses based on their individual performance rather than the performance of the firm as a whole. This often led to acrimony between individual departments, who sometimes acted like independent companies rather than small parts of a larger one. Also, several employees formed limited partnerships that allowed them to invest alongside Milken. These partnerships often made more money than the firm itself did on a particular deal. For instance, many of the partnerships ended up with more warrants than the firm itself held in particular deals.[1]
The firm had its most profitable fiscal year in 1986, netting $545.5 million—at the time, the most profitable year ever for a Wall Street firm, and equivalent to $1.1 billion in 2019. In 1987, Milken was paid executive compensation of $550 million for the year.[1][3]
Downfall
1986-1989
According to Dan Stone, a former Drexel executive, the firm's aggressive culture led many Drexel employees to stray into unethical, and sometimes illegal, conduct. Milken himself viewed the securities laws, rules and regulations with some degree of contempt, feeling they hindered the free flow of trade. He was under nearly constant scrutiny from the Securities and Exchange Commission from 1979 onward, in part because he often condoned unethical and illegal behavior by his colleagues at Drexel's operation in Beverly Hills.[1] He personally called Joseph, however, who believed in following the rules to the letter, on several occasions with ethical questions.[3]
The firm was first rocked on May 12, 1986, when Dennis Levine, a managing director in Drexel's M&A department, was charged with insider trading. Levine had joined Drexel only a year earlier. Unknown to Drexel management, he had spent his entire Wall Street career trading on inside information. Levine pleaded guilty to four felonies, and implicated one of his recent partners, super-arbitrageur Ivan Boesky. Largely based on information Boesky promised to provide about his dealings with Milken, the SEC initiated an investigation of Drexel on November 17. Two days later, Rudy Giuliani, then the United States Attorney for the Southern District of New York, launched his own investigation. Ominously, Milken refused to cooperate with Drexel's own internal investigation, only speaking through his attorneys.[1] A year later, Martin Siegel, the co-head of M&A, pleaded guilty to sharing inside information with Boesky during his tenure at Kidder, Peabody.[10]
For two years, Drexel steadfastly denied any wrongdoing, claiming the criminal and SEC investigations into Milken's activities were based almost entirely on the statements of Boesky, an admitted felon looking to reduce his sentence. This was not enough to keep the SEC from suing Drexel in September 1988 for insider trading, stock manipulation, defrauding its clients and stock parking (buying stocks for the benefit of another). All of the transactions involved Milken and his department. The most intriguing charge was that Boesky paid Drexel $5.3 million in 1986 for Milken's share of profits from illegal trading. Earlier in the year, Boesky characterized the payment as a consulting fee to Drexel. Around the same year, Giuliani began seriously considering indicting Drexel under the powerful Racketeer Influenced and Corrupt Organizations Act. Drexel was potentially liable under the doctrine of respondeat superior, which holds that companies are responsible for an employee's crimes.[1]
The threat of a RICO indictment unnerved many at Drexel. A RICO indictment would have required the firm to put up a performance bond of as much as $1 billion in lieu of having its assets frozen. This provision was put in the law because organized crime had a habit of absconding with the funds of indicted companies, and the writers of RICO wanted to make sure there was something to seize or forfeit in the event of a guilty verdict. Most Wall Street firms, then as now, relied heavily on loans. However, 96 percent of Drexel's capital was borrowed money, by far the most of any firm. This debt would have to take second place to any performance bond. Additionally, if the bond ever had to be paid, Drexel's stockholders would have all been virtually wiped out. Due to this, banks will not extend credit to a securities firm under a RICO indictment.[1]
By this time, several Drexel executives—including Joseph—concluded Drexel could not survive a RICO indictment and would have to seek a settlement with Giuliani. Senior Drexel executives became particularly nervous after Princeton Newport Partners, a small investment partnership, was forced to close its doors in the summer of 1988. Princeton Newport had been indicted under RICO, and the prospect of having to post a huge performance bond forced its shutdown well before the trial. Indeed, the discovery of Milken's role in many of Princeton Newport's illicit doings led Joseph to conclude Milken had indeed engaged in illegal activity. Joseph said years later that he'd been told a RICO indictment would destroy Drexel within a month, if not sooner. As it turned out, even though Milken and Drexel signed a co-counsel agreement, Milken's legal team warned him Drexel would almost certainly be forced to cooperate rather than risk being driven out of business by the pressures of the investigation.[1][10]
Nonetheless, negotiations for a possible plea agreement collapsed on December 19 when Giuliani made several demands that were far too draconian even for those who advocated a settlement. Giuliani demanded Drexel waive its attorney–client privilege, and also wanted the right to arbitrarily decide the firm had violated the terms of any plea agreement. He also demanded Milken leave the firm if the government ever indicted him. Drexel's board unanimously rejected the terms. For a time, it looked like Drexel was going to fight.[1][10]
Only two days later, however, Drexel lawyers found out about a limited partnership set up by Milken's department, MacPherson Partners, they previously hadn't known about. This partnership had been involved in the issuing of bonds for Storer Broadcasting. Several equity warrants were sold to one client who sold them back to Milken's department. Milken then sold the warrants to MacPherson Partners. The limited partners included several of Milken's children, and more ominously, managers of money funds. This partnership raised the specter of self-dealing, and at worst, bribes to the money managers. At the very least, this was a serious breach of Drexel's internal regulations. Drexel immediately reported this partnership to Giuliani, and its revelation seriously hurt Milken's credibility with many at Drexel who believed in Milken's innocence—including Joseph and most of the board.[1][10]
With literally minutes to go before being indicted (according to at least one source, the grand jury was actually in the process of voting on the indictment), Drexel reached an agreement with the government in which it entered an Alford plea to six felonies—three counts of stock parking and three counts of stock manipulation.[1] It also agreed to pay a fine of $650 million—at the time, the largest fine ever levied under the Great Depression-era securities laws.
The government had dropped several of the demands that had initially angered Drexel, but continued to insist that Milken leave the firm if indicted—which he did shortly after his own indictment in March 1989.[6][10] Drexel's Alford plea allowed the firm to maintain its innocence while acknowledging that it was "not in a position to dispute the allegations" made by the government. Nonetheless, Drexel was now a convicted felon.
In April 1989, Drexel settled with the SEC, agreeing to stricter safeguards on its oversight procedures. Later that month, the firm eliminated 5,000 jobs by shuttering three departments—including the retail brokerage operation. In essence, Drexel was jettisoning the core of the old Burnham & Company.[1] The retail accounts were eventually sold to Smith Barney.[13]
According to Dan Stone, a former Drexel executive, the firm's aggressive culture led many Drexel employees to stray into unethical, and sometimes illegal, conduct. Milken himself viewed the securities laws, rules and regulations with some degree of contempt, feeling they hindered the free flow of trade. He was under nearly constant scrutiny from the Securities and Exchange Commission from 1979 onward, in part because he often condoned unethical and illegal behavior by his colleagues at Drexel's operation in Beverly Hills.[1] He personally called Joseph, however, who believed in following the rules to the letter, on several occasions with ethical questions.[3]
The firm was first rocked on May 12, 1986, when Dennis Levine, a managing director in Drexel's M&A department, was charged with insider trading. Levine had joined Drexel only a year earlier. Unknown to Drexel management, he had spent his entire Wall Street career trading on inside information. Levine pleaded guilty to four felonies, and implicated one of his recent partners, super-arbitrageur Ivan Boesky. Largely based on information Boesky promised to provide about his dealings with Milken, the SEC initiated an investigation of Drexel on November 17. Two days later, Rudy Giuliani, then the United States Attorney for the Southern District of New York, launched his own investigation. Ominously, Milken refused to cooperate with Drexel's own internal investigation, only speaking through his attorneys.[1] A year later, Martin Siegel, the co-head of M&A, pleaded guilty to sharing inside information with Boesky during his tenure at Kidder, Peabody.[10]
For two years, Drexel steadfastly denied any wrongdoing, claiming the criminal and SEC investigations into Milken's activities were based almost entirely on the statements of Boesky, an admitted felon looking to reduce his sentence. This was not enough to keep the SEC from suing Drexel in September 1988 for insider trading, stock manipulation, defrauding its clients and stock parking (buying stocks for the benefit of another). All of the transactions involved Milken and his department. The most intriguing charge was that Boesky paid Drexel $5.3 million in 1986 for Milken's share of profits from illegal trading. Earlier in the year, Boesky characterized the payment as a consulting fee to Drexel. Around the same year, Giuliani began seriously considering indicting Drexel under the powerful Racketeer Influenced and Corrupt Organizations Act. Drexel was potentially liable under the doctrine of respondeat superior, which holds that companies are responsible for an employee's crimes.[1]
The threat of a RICO indictment unnerved many at Drexel. A RICO indictment would have required the firm to put up a performance bond of as much as $1 billion in lieu of having its assets frozen. This provision was put in the law because organized crime had a habit of absconding with the funds of indicted companies, and the writers of RICO wanted to make sure there was something to seize or forfeit in the event of a guilty verdict. Most Wall Street firms, then as now, relied heavily on loans. However, 96 percent of Drexel's capital was borrowed money, by far the most of any firm. This debt would have to take second place to any performance bond. Additionally, if the bond ever had to be paid, Drexel's stockholders would have all been virtually wiped out. Due to this, banks will not extend credit to a securities firm under a RICO indictment.[1]
By this time, several Drexel executives—including Joseph—concluded Drexel could not survive a RICO indictment and would have to seek a settlement with Giuliani. Senior Drexel executives became particularly nervous after Princeton Newport Partners, a small investment partnership, was forced to close its doors in the summer of 1988. Princeton Newport had been indicted under RICO, and the prospect of having to post a huge performance bond forced its shutdown well before the trial. Indeed, the discovery of Milken's role in many of Princeton Newport's illicit doings led Joseph to conclude Milken had indeed engaged in illegal activity. Joseph said years later that he'd been told a RICO indictment would destroy Drexel within a month, if not sooner. As it turned out, even though Milken and Drexel signed a co-counsel agreement, Milken's legal team warned him Drexel would almost certainly be forced to cooperate rather than risk being driven out of business by the pressures of the investigation.[1][10]
Nonetheless, negotiations for a possible plea agreement collapsed on December 19 when Giuliani made several demands that were far too draconian even for those who advocated a settlement. Giuliani demanded Drexel waive its attorney–client privilege, and also wanted the right to arbitrarily decide the firm had violated the terms of any plea agreement. He also demanded Milken leave the firm if the government ever indicted him. Drexel's board unanimously rejected the terms. For a time, it looked like Drexel was going to fight.[1][10]
Only two days later, however, Drexel lawyers found out about a limited partnership set up by Milken's department, MacPherson Partners, they previously hadn't known about. This partnership had been involved in the issuing of bonds for Storer Broadcasting. Several equity warrants were sold to one client who sold them back to Milken's department. Milken then sold the warrants to MacPherson Partners. The limited partners included several of Milken's children, and more ominously, managers of money funds. This partnership raised the specter of self-dealing, and at worst, bribes to the money managers. At the very least, this was a serious breach of Drexel's internal regulations. Drexel immediately reported this partnership to Giuliani, and its revelation seriously hurt Milken's credibility with many at Drexel who believed in Milken's innocence—including Joseph and most of the board.[1][10]
With literally minutes to go before being indicted (according to at least one source, the grand jury was actually in the process of voting on the indictment), Drexel reached an agreement with the government in which it entered an Alford plea to six felonies—three counts of stock parking and three counts of stock manipulation.[1] It also agreed to pay a fine of $650 million—at the time, the largest fine ever levied under the Great Depression-era securities laws.
The government had dropped several of the demands that had initially angered Drexel, but continued to insist that Milken leave the firm if indicted—which he did shortly after his own indictment in March 1989.[6][10] Drexel's Alford plea allowed the firm to maintain its innocence while acknowledging that it was "not in a position to dispute the allegations" made by the government. Nonetheless, Drexel was now a convicted felon.
In April 1989, Drexel settled with the SEC, agreeing to stricter safeguards on its oversight procedures. Later that month, the firm eliminated 5,000 jobs by shuttering three departments—including the retail brokerage operation. In essence, Drexel was jettisoning the core of the old Burnham & Company.[1] The retail accounts were eventually sold to Smith Barney.[13]
1989-1990
Due to several deals that didn't work out, as well as an unexpected crash of the junk bond market, 1989 was a difficult year for Drexel even after it settled the criminal and SEC cases. Reports of an $86 million loss going into the fourth quarter resulted in the firm's commercial paper rating being cut in late November. This made it nearly impossible for Drexel to reborrow its outstanding commercial paper, and it had to be repaid. Rumors abounded that the banks could yank Drexel's lines of credit at any time. Unfortunately, Drexel had no corporate parent that could pump in cash in the event of such a crisis, unlike most American financial institutions. Groupe Bruxelles Lambert refused to even consider making an equity investment until Joseph improved the bottom line. The firm posted a $40 million loss for 1989—the first operating loss in its 54-year history.[1]
Drexel managed to survive into 1990 by transferring some of the excess capital from its regulated broker/dealer subsidiary into its holding company, Drexel Burnham Lambert Group—only to be ordered to stop by the SEC on February 9 out of concerns about the broker's solvency. This sent Joseph and other senior executives into a near-panic. After the SEC, the New York Stock Exchange, and the Federal Reserve Bank of New York cast doubts about a restructuring plan, Joseph concluded that Drexel could not stay independent. Unfortunately, concerns about possible liability to civil suits scared off an eleventh-hour attempt to find a prospective buyer.[1][10][7]
By February 12, it was obvious Drexel was headed for collapse. Its commercial paper rating was further reduced that day, and the holding company defaulted on $100 million in loans. Citibank led a group of banks that tried to put together a loan package for the reeling firm, but this came to nothing. With other firms shutting Drexel out of deals, Joseph's last resort was a bailout by the government. Unfortunately for Drexel, one of its first hostile deals came back to haunt it at this point. Unocal's investment bank at the time of Pickens' raid on it was the establishment firm of Dillon, Read—and its former chairman, Nicholas F. Brady, was now Secretary of the Treasury. Brady had never forgiven Drexel for its role in the Unocal deal, and would not even consider signing off on a bailout.[7][10]
Early on the morning of February 13, New York Fed president E. Gerald Corrigan and SEC chairman Richard Breeden called Joseph and told him that they, Brady and NYSE chairman John J. Phelan Jr. saw "no light at the end of the tunnel" for Drexel. They gave Joseph an ultimatum–unless Drexel filed for bankruptcy, the SEC would seize Drexel that morning before the markets opened. After Joseph told the board that Drexel had effectively been told to "go out of business," the board voted to file for bankruptcy. That night, Drexel officially filed for Chapter 11 bankruptcy protection.[10] Drexel was the first Wall Street firm since the Depression to be forced into bankruptcy.[6] The filing covered only the parent company, not the broker/dealer; executives and lawyers believed that confidence in Drexel had deteriorated so much that the firm was finished in its then-current form.[7]
Even before the firm's bankruptcy, Tubby Burnham spun off the firm's funds management arm as Burnham Financial Group, which currently operates as a diversified investment company. Burnham was reportedly still arranging deals until his death in 2002 at age 93.[13] The rest of Drexel emerged from bankruptcy in 1992 as New Street Capital, a small investment bank with only 20 employees (at its height, Drexel employed over 10,000 people) and strict limits on its activities.[6] In 1994, New Street merged with Green Capital, a merchant bank owned by Atlanta financier Holcombe Green.[14]
Richard A. Brenner, the brother of a president with controlling stakes stated in his memoir "My Life Seen Through Our Eyes" that other firms at Wall Street did not support Drexel or come to its aid when the company got into trouble because they were "smelling an opportunity to grab this business."[15]
Drexel managed to survive into 1990 by transferring some of the excess capital from its regulated broker/dealer subsidiary into its holding company, Drexel Burnham Lambert Group—only to be ordered to stop by the SEC on February 9 out of concerns about the broker's solvency. This sent Joseph and other senior executives into a near-panic. After the SEC, the New York Stock Exchange, and the Federal Reserve Bank of New York cast doubts about a restructuring plan, Joseph concluded that Drexel could not stay independent. Unfortunately, concerns about possible liability to civil suits scared off an eleventh-hour attempt to find a prospective buyer.[1][10][7]
By February 12, it was obvious Drexel was headed for collapse. Its commercial paper rating was further reduced that day, and the holding company defaulted on $100 million in loans. Citibank led a group of banks that tried to put together a loan package for the reeling firm, but this came to nothing. With other firms shutting Drexel out of deals, Joseph's last resort was a bailout by the government. Unfortunately for Drexel, one of its first hostile deals came back to haunt it at this point. Unocal's investment bank at the time of Pickens' raid on it was the establishment firm of Dillon, Read—and its former chairman, Nicholas F. Brady, was now Secretary of the Treasury. Brady had never forgiven Drexel for its role in the Unocal deal, and would not even consider signing off on a bailout.[7][10]
Early on the morning of February 13, New York Fed president E. Gerald Corrigan and SEC chairman Richard Breeden called Joseph and told him that they, Brady and NYSE chairman John J. Phelan Jr. saw "no light at the end of the tunnel" for Drexel. They gave Joseph an ultimatum–unless Drexel filed for bankruptcy, the SEC would seize Drexel that morning before the markets opened. After Joseph told the board that Drexel had effectively been told to "go out of business," the board voted to file for bankruptcy. That night, Drexel officially filed for Chapter 11 bankruptcy protection.[10] Drexel was the first Wall Street firm since the Depression to be forced into bankruptcy.[6] The filing covered only the parent company, not the broker/dealer; executives and lawyers believed that confidence in Drexel had deteriorated so much that the firm was finished in its then-current form.[7]
Even before the firm's bankruptcy, Tubby Burnham spun off the firm's funds management arm as Burnham Financial Group, which currently operates as a diversified investment company. Burnham was reportedly still arranging deals until his death in 2002 at age 93.[13] The rest of Drexel emerged from bankruptcy in 1992 as New Street Capital, a small investment bank with only 20 employees (at its height, Drexel employed over 10,000 people) and strict limits on its activities.[6] In 1994, New Street merged with Green Capital, a merchant bank owned by Atlanta financier Holcombe Green.[14]
Richard A. Brenner, the brother of a president with controlling stakes stated in his memoir "My Life Seen Through Our Eyes" that other firms at Wall Street did not support Drexel or come to its aid when the company got into trouble because they were "smelling an opportunity to grab this business."[15]
Criticism
By the late 1980s, public confidence in leveraged buyouts had waned, and criticism of the perceived engine of the takeover movement, the junk bond, had increased. Innovative financial instruments often generate skepticism, and few have generated more controversy than high yield debt. Some argue that the debt instrument itself, sometimes dubbed "turbo debt," was the cornerstone of the 1980s "Decade of Greed." Junk bonds were actually used in less than 25% of acquisitions, however, and hostile takeovers during that period. Nevertheless, by 1990 default rates on high yield debt had increased from 4% to 10%, further eroding confidence in this financial instrument. Without Milken's cheerleading, the liquidity of the junk bond market dried up. Drexel was forced to buy the bonds of insolvent and failing companies, which depleted their capital and would eventually bankrupt the company.
Survivors
A few other firms emerged or became more important from Drexel's collapse, besides Burnham Financial.
There was also the 1838 Group named after the founding date of Drexel established by another group of investment fund managers. The funds suffered from under performance and the group folded. Drexel Burnham Lambert Real Estate Associates II operates as a real estate management firm. Apollo Global Management, the noted private equity firm, was also founded by Drexel alumni led by Leon Black. Richard Handler joined Jefferies immediately following the Drexel bankruptcy with a number of partners and began building the firm into what today is the largest, independent, full service, global investment bank (non bank-holding company). Fred Joseph bought into a firm founded by John Adams Morgan to establish Morgan Joseph, a middle-market investment bank that caters to many of the same kinds of clients as Drexel had. In 2011, the firm merged with Tri-Artisan Partners, a merchant bank, to form Morgan Joseph TriArtisan. Although the firm carried Joseph's name and he was part-owner, he was only co-head of corporate finance until his death in 2009. In 1993, the SEC barred him from serving as president, chairman or CEO of a securities firm for life for failing to properly supervise Milken. Morgan Joseph TriArtisan's chairman and CEO is John Sorte, Joseph's successor as president and CEO of Drexel from 1990 to 1992.[16][17] In 2011, Portfolio.com and CNBC named Joseph the seventh-worst CEO in American business history, saying that "his poor management left the company without a crisis plan."[18]
A few other firms emerged or became more important from Drexel's collapse, besides Burnham Financial.
There was also the 1838 Group named after the founding date of Drexel established by another group of investment fund managers. The funds suffered from under performance and the group folded. Drexel Burnham Lambert Real Estate Associates II operates as a real estate management firm. Apollo Global Management, the noted private equity firm, was also founded by Drexel alumni led by Leon Black. Richard Handler joined Jefferies immediately following the Drexel bankruptcy with a number of partners and began building the firm into what today is the largest, independent, full service, global investment bank (non bank-holding company). Fred Joseph bought into a firm founded by John Adams Morgan to establish Morgan Joseph, a middle-market investment bank that caters to many of the same kinds of clients as Drexel had. In 2011, the firm merged with Tri-Artisan Partners, a merchant bank, to form Morgan Joseph TriArtisan. Although the firm carried Joseph's name and he was part-owner, he was only co-head of corporate finance until his death in 2009. In 1993, the SEC barred him from serving as president, chairman or CEO of a securities firm for life for failing to properly supervise Milken. Morgan Joseph TriArtisan's chairman and CEO is John Sorte, Joseph's successor as president and CEO of Drexel from 1990 to 1992.[16][17] In 2011, Portfolio.com and CNBC named Joseph the seventh-worst CEO in American business history, saying that "his poor management left the company without a crisis plan."[18]
Former employees
- Peter Ackerman, former head of Drexel's international capital markets department, also known as a political activist and co-founder of organizations such as the International Center on Nonviolent Conflict and Americans Elect
- Guy Adami, panelist on CNBC's Fast Money
- Leon Black, leader of Apollo Management
- Joseph Cassano, founder of AIG Financial Products
- Abby Joseph Cohen, partner and chief U.S. investment strategist at Goldman, Sachs & Co
- Jerry Doyle, later actor and talk radio host
- Marc Faber, formerly managing director of Drexel's Hong Kong office, famous for the Gloom Boom Doom investment report "Dr Doom"
- Nigel Farage, leader of UK Independence Party
- Steve Feinberg, Cerberus Capital Management
- Gerard Finneran, cofounder of TCW Group later arrested after 1995 air rage incident.
- James Stephen Fossett, American aviator, sailor, and adventurer
- Mark Gilbert, Major League Baseball player, and US Ambassador to New Zealand and Samoa
- Joel Greenblatt, founder of Gotham Capital
- Richard B. Handler, current CEO of Jefferies & Company
- Roderick M. Hills, former chairman of U.S. Securities and Exchange Commission (SEC)
- Frederick H. Joseph, co-founder of Morgan Joseph
- Dennis Levine, chairman & CEO, Adasar Group, Inc.
- Michael Milken, former head of the non-investment-grade bond department; almost single-handedly created the market for "high-yield bonds" (also known as "junk bonds")
- Ken Moelis, former president and head of investment banking at UBS; founder of Moelis & Company
- Anthony J. Parkinson, co-founder Kronos and current executive vice chairman of Urbix Resources
- Terren Peizer, current CEO of Hythiam Co
- Richard Sandor, current chairman of the Chicago Climate Exchange
- Rick Santelli, current on-air editor for CNBC's Squawk on the Street, known for his remarks on CNBC on February 9, 2009 which were credited with helping to ignite the Tea Party movement.
- Tom Sosnoff, founder of the thinkorswim trading platform and current CEO of tastytrade.com
- Gary Winnick, founder and former chairman of Global Crossing
References[edit]
1. ^ Jump up to: Stone, Dan G. (1990). April Fools: An Insider's Account of the Rise and Collapse of Drexel Burnham. New York City: Donald I. Fine. ISBN 1-55611-228-9.
2. ^ Jump up to: Your Best Job | MoreBusiness.com
3. ^ Jump up to: Kornbluth, Jesse (1992). Highly Confident: The Crime and Punishment of Michael Milken. New York: William Morrow and Company. ISBN 0-688-10937-3.
4. ^ Business Insider: Michael Milken invented the modern junk bond, went to prison, and then became one of the most respected people on Wall Street - May 2, 2017
5. ^ Eichenwald, Kurt (April 3, 1989). "Wages Even Wall St. Can't Stomach". The New York Times. Archived from the original on February 4, 2017. Retrieved February 11, 2017. Surely no one in American history has earned anywhere near as much in a year as Mr. Milken.
6. ^ Jump up to: New Street Capital Inc. - Company Profile, Information, Business Description, History, Background Information on New Street Capital Inc
7. ^ Jump up to: "The Collapse of Drexel Burnham Lambert". The New York Times. February 14, 1990.
8. ^ Jump up to: I.W. Burnham II, a Baron of Wall Street, Is Dead at 93. The New York Times, June 29, 2002
9. ^ The Man Who Made Wall Street: Anthony J. Drexel and the Rise of Modern Finance.
10. ^ Jump up to: Den of Thieves. Stewart, J. B. New York: Simon & Schuster, 1991. ISBN 0-671-63802-5.
11. ^ Ben Protess (April 29, 2016). "Robert Linton, Steadfast '80s Wall Street Banker, Dies at 90". The New York Times.
12. ^ "A Heap of Woe for the Junkman". Time. December 5, 1988. Retrieved May 1, 2010.
13. ^ Jump up to: A Stomping Ground for Veteran Analysts - January 6, 2006 - The New York Sun
14. ^ BW Online | March 7, 1994 | DREXEL GIVES UP THE GHOST ArchivedJanuary 3, 2008, at the Wayback Machine
15. ^ Brenner, Richard A (2012). My Life Seen Through Our Eyes. Sunstone Press. ISBN 9781611390742.
16. ^ BW Online | July 14, 2003 | Drexel's Ex-Chief Is Back in Business Archived June 23, 2010, at the Wayback Machine
17. ^ Morgan Joseph Merges With Tri-Artisan. Institutional Investor, 2011-01-09.
18. ^ "Fred Joseph". CNBC. 2009-04-30. Retrieved 2011-01-16.
·
- Peter Ackerman, former head of Drexel's international capital markets department, also known as a political activist and co-founder of organizations such as the International Center on Nonviolent Conflict and Americans Elect
- Guy Adami, panelist on CNBC's Fast Money
- Leon Black, leader of Apollo Management
- Joseph Cassano, founder of AIG Financial Products
- Abby Joseph Cohen, partner and chief U.S. investment strategist at Goldman, Sachs & Co
- Jerry Doyle, later actor and talk radio host
- Marc Faber, formerly managing director of Drexel's Hong Kong office, famous for the Gloom Boom Doom investment report "Dr Doom"
- Nigel Farage, leader of UK Independence Party
- Steve Feinberg, Cerberus Capital Management
- Gerard Finneran, cofounder of TCW Group later arrested after 1995 air rage incident.
- James Stephen Fossett, American aviator, sailor, and adventurer
- Mark Gilbert, Major League Baseball player, and US Ambassador to New Zealand and Samoa
- Joel Greenblatt, founder of Gotham Capital
- Richard B. Handler, current CEO of Jefferies & Company
- Roderick M. Hills, former chairman of U.S. Securities and Exchange Commission (SEC)
- Frederick H. Joseph, co-founder of Morgan Joseph
- Dennis Levine, chairman & CEO, Adasar Group, Inc.
- Michael Milken, former head of the non-investment-grade bond department; almost single-handedly created the market for "high-yield bonds" (also known as "junk bonds")
- Ken Moelis, former president and head of investment banking at UBS; founder of Moelis & Company
- Anthony J. Parkinson, co-founder Kronos and current executive vice chairman of Urbix Resources
- Terren Peizer, current CEO of Hythiam Co
- Richard Sandor, current chairman of the Chicago Climate Exchange
- Rick Santelli, current on-air editor for CNBC's Squawk on the Street, known for his remarks on CNBC on February 9, 2009 which were credited with helping to ignite the Tea Party movement.
- Tom Sosnoff, founder of the thinkorswim trading platform and current CEO of tastytrade.com
- Gary Winnick, founder and former chairman of Global Crossing
References[edit]
1. ^ Jump up to: Stone, Dan G. (1990). April Fools: An Insider's Account of the Rise and Collapse of Drexel Burnham. New York City: Donald I. Fine. ISBN 1-55611-228-9.
2. ^ Jump up to: Your Best Job | MoreBusiness.com
3. ^ Jump up to: Kornbluth, Jesse (1992). Highly Confident: The Crime and Punishment of Michael Milken. New York: William Morrow and Company. ISBN 0-688-10937-3.
4. ^ Business Insider: Michael Milken invented the modern junk bond, went to prison, and then became one of the most respected people on Wall Street - May 2, 2017
5. ^ Eichenwald, Kurt (April 3, 1989). "Wages Even Wall St. Can't Stomach". The New York Times. Archived from the original on February 4, 2017. Retrieved February 11, 2017. Surely no one in American history has earned anywhere near as much in a year as Mr. Milken.
6. ^ Jump up to: New Street Capital Inc. - Company Profile, Information, Business Description, History, Background Information on New Street Capital Inc
7. ^ Jump up to: "The Collapse of Drexel Burnham Lambert". The New York Times. February 14, 1990.
8. ^ Jump up to: I.W. Burnham II, a Baron of Wall Street, Is Dead at 93. The New York Times, June 29, 2002
9. ^ The Man Who Made Wall Street: Anthony J. Drexel and the Rise of Modern Finance.
10. ^ Jump up to: Den of Thieves. Stewart, J. B. New York: Simon & Schuster, 1991. ISBN 0-671-63802-5.
11. ^ Ben Protess (April 29, 2016). "Robert Linton, Steadfast '80s Wall Street Banker, Dies at 90". The New York Times.
12. ^ "A Heap of Woe for the Junkman". Time. December 5, 1988. Retrieved May 1, 2010.
13. ^ Jump up to: A Stomping Ground for Veteran Analysts - January 6, 2006 - The New York Sun
14. ^ BW Online | March 7, 1994 | DREXEL GIVES UP THE GHOST ArchivedJanuary 3, 2008, at the Wayback Machine
15. ^ Brenner, Richard A (2012). My Life Seen Through Our Eyes. Sunstone Press. ISBN 9781611390742.
16. ^ BW Online | July 14, 2003 | Drexel's Ex-Chief Is Back in Business Archived June 23, 2010, at the Wayback Machine
17. ^ Morgan Joseph Merges With Tri-Artisan. Institutional Investor, 2011-01-09.
18. ^ "Fred Joseph". CNBC. 2009-04-30. Retrieved 2011-01-16.
·
· Drexel's Fall: The Final Days. New York magazine Mar 19, 1990.
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As previously noted,the Bernheim Family made their fortune in the Bourbon Buiness and established what came to be known as The Bernheim Aboretum in Kentucky.
· Drexel's Fall: The Final Days. New York magazine Mar 19, 1990.
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
As previously noted,the Bernheim Family made their fortune in the Bourbon Buiness and established what came to be known as The Bernheim Aboretum in Kentucky.
When Isaac Bernheim made this gift, he turned to someone who had expertly managed many of his personal investments for years. His grandson, I. W. Burnham, the son of Bertram Bernheim, Isaac Bernheim’s third oldest son and a renowned physician, was that person. (Has name requires a bit of explanation, he was named after his grandfather and was Isaac Wolfe Bernheim II.
In 2019, Bernheim celebrated 90 years of connecting people with nature. At over 25 square miles, Bernheim is the largest privately held forest dedicated to conservation and education in the region. The arboretum is home to plant collections of over 8,000 varieties, public art, and educational programming for thousands of students. The pristine forest hosts hikers and outdoor adventures alongside research and conservation projects which will serve to protect the environment for future generations.
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