Business Stories

We’ve talked before here about the point that most fiction seems to be about people who are lawyers, policemen, criminals, soldiers, spies, students, politicians, and noble but struggling writers. But there are indeed some works of fiction, and some vivid personal memoirs, in which business plays a central role without being portrayed simplistically or as stereotypically evil. Here are some that I like…please add your own favorites in the comments.   (I posted this at Ricochet, in slightly different form, about a week ago)

The Current War, a recent movie about the late-1800s power struggle to determine which technology…AC or DC…will dominate America’s electrical distribution system. Edison, Westinghouse, and Tesla are the key characters, played by Benedict Cumberbatch, Michael Shannon, and Nicholas Hoult respectively. My review is  here.

The Big Short, a 2015 film about the 2007-2008 financial crisis, based on Michael Lewis’s book. A hedge fund manager concludes that the subprime-loan market is not sustainable, and makes a billion-dollar bet against the relevant mortgage-backed securities. Based on real events. I thought it was very well done.

God is an Englishman, R F Delderfield. Following his return to England from the Crimean War, Adam Swann identifies a business opportunity: although railroads are being built throughout the country, there will always be sources and destinations of freight which are not on the tracks. Hence, the potential for a nationwide gap-filling road haulage business based on the systematic use of horse-drawn wagons. (This is the first book of a three-book series called the Swann Family Saga.)   Reviewed here.

Oil for the Lamps of China, Alice Tisdale Hobart. This 1933 novel is about a young American working as a sales rep in China, focused on selling oil for his employer (unnamed, but clearly based on Standard Oil) and increasing volumes by promoting the kerosene lamp as a better alternative to traditional lighting methods. The book was the basis for a 1935 movie of the same name…the film has its moments, but overall is not worthy of the book.

Father, Son, and Company, by Thomas Watson Jr. This is the best business autobiography I’ve read. It’s about Watson Jr (the long-time CEO of IBM), his difficult relationship with his father, the company they built, and the emergence of the computing industry. It is an emotional, reflective, and self-critical book, without the kind of “here’s how brilliant I was” tone that afflicts too many executive autobiographies. I reviewed it  here.

A Man in Full, by Tom Wolfe. The central character of this 1988 novel is Charlie Croker, an Atlanta real-estate developer who has gotten himself into way too much debt. Other characters include Charlie’s current and former wives, the Black mayor of Atlanta, the bankers who must deal with the debt problem, and a warehouse worker at one of the Croker enterprises. The book also casts a not-very-complimentary light on the Atlanta society/arts scene.

Trial by Fire, Stephen Buck. The adventures of a Honeywell field engineer in the early days of process-control computing. The book’s title reflects the point that the industrial processes being controlled frequently involved combustion, sometimes in scary circumstances. Much of the author’s work took place outside the US, in countries ranging from Poland to Brazil.

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Regular and Irregular Channels

Some of the witnesses at the ongoing Congressional hearings seem quite disturbed at the use of “irregular channels” for decision-making and implementation, supplementing and bypassing the “regular” channels. (here, for example) Reminds me of a Churchill story…

In February 1940, Churchill was not yet Prime Minister but rather was First Lord of the Admiralty. He received a letter from a father disappointed that his son had been turned down for a commission, despite his qualifications and his record. Churchill suspected class prejudice and wrote to the Second Sea Lord, saying that “Unless some better reasons are given to me, I shall have to ask my Naval Secretary to interview the boy on my behalf.”

The Second Sea Lord, unhappy with the meddling from above, responded to the effect that it was inappropriate to question the decisions of “a board duly constituted.” To which Churchill replied:

I do not at all mind “going behind the opinion of a board duly constituted” or even changing the board or its chairman if I think injustice has been done. How long is it since this board was re-modeled?… Who are the naval representatives on the board of selection? Naval officers should be well-represented. Action accordingly. Let me have a list of the whole board with the full record of each member and his date of appointment.

General Louis Spears was present when Churchill, after taking the above hard-line, saw the candidates. After chatting with the boys, Churchill explained the matter to Spears:

“They have been turned down for the very reason that should have gained them admission. They are mad keen on the Navy, they have it in their blood, they will make splendid officers. What could be better than that they should rise higher than their fathers did? It is in their fathers’ homes that they grew to love the Navy, yet they have been turned down because their fathers came from the lower deck,” and he pouted and glared with fury.

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How the Conservative Party has sold out Britain.

King George III and Lord North have been blamed for botching negotiations with the American colonies. Now, the same Conservative Party seems determined to botch another negotiation; with the EU. In both cases, the party and negotiators were determined to keep the relationship intact, no matter how unequal.
An excellent piece in the claremont Review explains.

Many statesmen warned from the outset that British ideas of liberty would not survive a merger with the E.U. The most eloquent early diagnoses came from the Labour Party, not the Tories. That is because the fundamental disposition of the E.U. is to favor technocratic expertise over representative government, and the Tories have not generally been the British party that placed the highest priority on the passions of the masses. In 1962, as Tory Prime Minister Harold Macmillan was eying EEC membership, Labour leader Hugh Gaitskell warned, “[I]t does mean the end of Britain as an independent nation state…. It means the end of a thousand years of history. You may say ‘Let it end’ but, my goodness, it is a decision that needs a little care and thought.”

Interesting that Labour saw the danger first. In the US, the party of the Administrative State is the Democrats although both parties are heavily invested as Angelo Codevilla has pointed out.

Eventually even the reliably anti-Brexit Economist came to see that some of Britain’s major problems had arisen from constitutional meddling. David Cameron’s 2011 Fixed-Term Parliaments Act, in particular, made it much more difficult to call the general elections that would ordinarily have been provoked by the resounding repudiation of Theresa May’s withdrawal package. Blair and Cameron, the magazine noted, “came to power when history was said to have come to an end. They saw no need to take particular care of the constitution.” E.U. membership hid these problems—if Britain wasn’t paying attention to its constitution at the time, it was partly because it had been using someone else’s.

I had not realized that “Judicial Review” of laws was an American phenomenon. John Marshall has reached far into the future with his ruling in Marbury vs Madison.

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Labor Day Rerun: Technology, Work, and Society

Here is an intriguing book concerned with the exponential advances in technology and the impact thereof on human society.  The author believes that the displacement of human labor by technology is in its very early stages, and sees little limit to the process.  He is concerned with how this will affectindeed, has already affectedthe relationship between the sexes and of parents and children, as well as the ability of ordinary people to earn a decent living.  It’s a thoughtful analysis by someone who clearly cares a great deal about the well-being of his fellow citizens.

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How Allied Planes Got Their D-Day Invasion Stripes and other “Retro-High Tech” Secrets of the Normandy Invasion

There have been literally hundreds of books and thousands of articles on the June 6th 1944 invasion of Normandy.   Almost every facet of the invasion has been examined in the last 75 years.   Yet for all that, there are simply some subjects related to the Normandy invasion that professional military historians won’t deal with.

There are a lot of reasons for this, but at it’s heart, it is simply the case many, if not most, academic military historians got into history because they didn’t want to do math.   When you start talking about bandwidth, frequency, wavelength, quartz crystal radio control, atmospheric transmissiblity, radio ducting, and how all this related to the command, control, communications and intelligence (C3I) systems of the Normandy Invasion.   When   you bring up all this “Retro-High Technology,” the vast majority run screaming from the subject.

This is a real shame as it has left out the story of how the Allies created a C3I system to control all it’s air and sea forces. Projected this C3I system across the English Channel while destroying/stunning/jamming the German C3I system. And then implanted that C3I system in France.   All the while making sure thousands of Allied fighters and anti-aircraft gunners didn’t shoot at each other or down dozens of troop laden transport planes filled with paratroopers or towing gliders, as happened in Operation Husky, the Invasion of Sicily.   It simply hasn’t been addressed.

This post is my attempt to fill this gap in the historical record by explaining the problems the Western Allies faced. The Operation’s Neptune and Overlord planning process they used to overcome them with cunning yet simple ideas like invasion stripes, and a broad brush outline of how they executed those plans.

Figure 1. The Allied Operation Neptune Radar Jamming Plan for D-Day Invasion in Normandy. Source: Radar No. 6, page 10, 15 Nov 1944, Office of the Air Communications Officer, Headquarters Army Air Forces, Washington.

 

RETRO-HIGH TECH BACKGROUND

World War 2’s “Retro-High Tech” warfare was defined on the ground, in the air and on the sea by the use of electronic signals intelligence (SIGINT)  with the addition of RADAR for land or sea based airpower.      Both SIGINT and RADAR had to be tied together  to an effective radio and wire telecommunications network in order to provide both intelligence services the necessary data for evaluation and the military commanders the processed intelligence to act upon in order to be effective.

The effective use of RADAR required a very rapid gathering, processing, decision making and dissemination of those decisions over a vast geographic area by radio, telegraph and telephone.     During World War 2 (WW2)   RADAR networks had the addition of first radio direction finding and then “low level” signals intercepts of voice and Morse code in the clear, simple, easy to use, but quickly breakable codes — Organizations doing this were called “Y-Service” by the British — followed eventually by higher level cryptographic code breaking (or “ULTRA”) being added into this network.

This four legged stool of military sensors, communications, intelligence, and decision making by military commanders is normally referred to as Command, Control, Communications and Intelligence or “C3I”.    In particular, RADAR played the role of “Keystone Military Technology.”     And by “Keystone” I mean an analogy to the biological concept of a “Keystone species” in an ecosystem, not unlike the role of algae in the ocean ecosystem or grass for a prairie ecosystem. This military C3I ecosystem model is far more developed in the 21st century especially with the arrival of digital electronic computers — but it is simply a conceptual embellishment of this 1940’s “Revolution in Military Affairs.”

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