Friday, September 28, 2012

Consequences


As soon as we are old enough, we are taught to discern the difference between “right” and “wrong”. Since humans are in reality only sophisticated mammals, it is necessary to establish boundaries of decent behavior in order for society to function smoothly. Otherwise we might revert to our basest animal instincts, and then all hell would break loose.

There are various methods used to establish what behaviors are acceptable in our culture, and what is taboo. As small children, it was once enough for us to know that bad behavior would be promptly punished, usually with a quick whack, so our primary point of reference was whatever our parents or other adult authority figures told us constituted good or bad. The primary lesson was that doing something that was unacceptable resulted in swift and sure punishment. As our society has become more enlightened (although many might argue that it does not really represent progress), this has changed to the concept of rewarding good behavior, and discouraging bad behavior. We have been introduced to the concept that our actions have consequences, and should behave accordingly.

We also painfully learn that not all consequences in our young lives are enforced through adult authority. Jumping off of the garage roof can swiftly and painfully lead to a broken arm or leg. Riding a bicycle too fast down a steep hill can result in scrapes, bruises, a destroyed bicycle, or worse. Thus we learn that we must pay careful attention to the physical laws of nature as well as the metaphysical laws imposed by our parents. An additional layer is imposed in the metaphysical realm as well. Philosophy, generally in the form of religion, is usually added to the mix.

Right and wrong, and the consequences of improper behavior, attain a whole new level of punishment under the laws imposed by religion. A bad Christian will suffer the damnation of hell’s fire. A bad Buddhist could be reincarnated as a bug. Morality is imposed in the most theoretical of universes, but apparently is not enough. At the same time that we are taught the moral aspects of society, we are made aware of legal limits to our actions: the laws imposed by the state. Punishment for violation of the laws of man range from monetary fines, through involuntary incarceration, to the ultimate forfeiture, loss of life.

At some point in our maturation process, many of us open our eyes to see the world as it really exists. It is not a pretty picture for the most part. Some of us choose to remain ethical human beings, content to do what is right and behave with civility toward our fellow beings. Some perceive, perhaps correctly, that society actually rewards those who do injury to others.

When we think of Eli Whitney, the inventor of the cotton gin, we think of a man whose advancement of technology freed people from a difficult and time-consuming task. The actual result of this laborsaving device was to make upland short cotton into a profitable
crop, which strengthened the economic foundation of slavery in the United States. The mass production of the automobile put many wagon manufacturers out of business, however, many companies simply joined the transformation to the new technology and displaced workers found ready employment in the new industries. The innovators were rewarded and society overlooked the short-term consequences for the greater good. In this case, the rewards for innovation were justified. Modern innovators have also been rewarded by society. The advances in computer technology have increased productivity in the business world and the innovators have been correctly rewarded despite a dislocation of some workers. Progress appears to be the most important god in our culture.

Recent history has provided new examples of behaviors that are rewarded despite adverse economic consequences. The masters of the leveraged buyout gain great personal financial rewards while leaving economic misery in their wake in the form of displaced workers and ruined companies. I’m not talking about corset makers or buggy whip manufacturers, but viable firms whose only problem was being at the right place at the wrong time. The wizards of Wall Street finagle laws and capital markets, skirting regulation or having it eliminated entirely through political lobbying (what used to be referred to simply as bribery). In the process they may reduce the value of the life savings entrusted to them by gullible investors, but their own rewards are enormous.

Thus it is that we learn the morality of the rich. Anything that increases their personal wealth is good. Too bad if others get hurt in the process. I may not be considered a good Christian or an ethical Buddhist by my society, but I try to remain a morally civilized human being, and such behavior by the rich bothers me greatly. I have been personally wronged by a wealthy individual who has suffered no adverse financial setbacks while I have suffered greatly. There may be other, less tangible consequences to his behavior but superficial observation of his current status reveals that he has been richly rewarded for taking advantage of others and myself.

Obviously, morality and religion have failed to protect us from the all-powerful human desire for more. The laws that we have implemented to protect our personal interests are no longer effective or enforceable. The wealthy scream that if we would only unshackle them from ruinous regulations they would be able to grow our economy more efficiently, providing new employment opportunities for the little guy, the working poor and our rapidly vanishing middle class. I think their position is utter nonsense and ask if you, kind reader, believe that they really have the best interests of their country, or humankind as a whole, in mind when they make these statements?

While we may not need more regulations, we certainly do not need less. We need to adjust the consequences of violation so that they are no longer taken lightly. Corporations are known to regularly violate environmental and financial regulations. If they are caught, they typically face a fine. Such fines, sometimes representing only a minor fraction of their net income, are regarded simply as a cost of doing business. Just as the legal prohibition against suicide rarely has any meaningful consequence to the successful violator, monetary fines levied against the corporation have no impact on those who decided to violate regulations. Like the child of old that faced a whipping if caught stealing, we need to put some teeth into the consequences of violating economic regulations. Fines should have a significant impact on the personal fortunes of the decision-makers. Tear aside the veil of protection offered by the corporation and punish the individuals responsible. Let us devise new laws that prevent the looting of companies for personal gain, eliminating the adverse consequences of the leveraged buyout.

All great societies in history have reached a zenith and then declined. If that is your vision for the future of our country then elect to office those who would maintain the status quo and increase the advantages that the immoral usurpers currently enjoy. Personally, I have a grander vision of the type of country we should have. We need to tell our elected officials what is expected of them when we vote them into office, and what the consequences will be if they fail. Remember that failure on their part may only cost them an elected position, but the cost to our nation will be too terrible to contemplate.

“It has always seemed strange to me... the things we admire in men, kindness and generosity, openness, honesty, understanding and feeling, are the concomitants of failure in our system. And those traits we detest, sharpness, greed, acquisitiveness, meanness, egotism and self-interest, are the traits of success. And while men admire the quality of the first they love the produce of the second.”
 -John Steinbeck

“Anyway, no drug, not even alcohol, causes the fundamental ills of society. If we're looking for the source of our troubles, we shouldn't test people for drugs, we should test them for stupidity, ignorance, greed and love of power.” 
 -P.J. O’Rourke




Wednesday, September 26, 2012

Censorship and Man's Best Friend


A friend of mine asked me to sign a petition to remove a page called “I Hate Dogs” from Facebook. Now the person that made the request is someone that I have known for decades, although we don’t really socialize much anymore. In fact, I haven’t seen her for years, although if she were to call to ask a favor that was in my power to grant, I would most likely do it. I’m a firm believer in the Golden Rule, and also in old friends. I also like dogs, although I don’t have one right now, and don’t really understand how anyone could possibly hate a dog. They mostly just want to please us.

But I just couldn't bring myself to sign the petition. For one thing, I doubt if it would work. Considering the plunge in the value of Facebook’s stock, I don’t think they can afford to get rid of anyone at this point, even if the group in question espouses an asinine philosophy involving hatred of a species that is commonly known as “Man’s Best Friend”. In the spirit of fair play, I went to the page in question. I didn't spend too much time there; most posts included a variety of misspellings, bad grammar, and basic mental vomitus. But the sad truth is this: you have the right to be an idiot in this country (indeed, viewing the slate of people vying for political office in our fair land, it may even be a prerequisite). Furthermore, I support your right to idiocy wholeheartedly.

Not that I wish it weren't so. Imagine what a fabulous world this would be if all of its inhabitants shared my views of fair play, equality, justice and pursuit of the truth! However, I know for a fact that there are people who do not share my views (heretics and fools to be sure, but they do exist and their numbers are large). If their aim is to remove me, or remove my voice from the general conversation, rest assured that I would fight them to my last breath. But they have the same right to their opinion as I have to mine. The one thing that I cannot support is censorship.

Ay, there’s the rub, as The Bard of Avon would say. There’s a whole lot of people that I wish would just shut-the-f**k-up. Take my district’s current U.S. Congressman for example. I just watched his ad on TV where he speaks of being a cancer survivor, and how it’s personal for him to see that all Americans with cancer are treated. Yet he has also said that he wants to repeal the Affordable Care Act, which might just be the only way that millions of Americans have a ghost of a chance to receive needed treatment. I’ll tell you what’s personal, dude. My brother, who worked for years as a self-employed paint contractor and couldn't afford health insurance, died from cancer a little over four years ago. That’s personal you moron! Not that I’m bitter about it or anything. But my Congressman (who has much better health insurance than almost everyone else) has the right to spew nonsense across the airwaves, just as I have the right to do my best to make sure that he is no longer my Congressman next year.

In fact, politicians have more opportunity than ever to spew whatever they think (or at least what they think will get them elected) thanks to the Supreme Court ruling in the Citizens United v. FEC case that says anonymous money is free speech. I tend to think that free speech is one thing and well-funded propaganda is something else entirely. But where is the line drawn? Who should be able to make the call? The Supreme Court has clearly demonstrated that it is no longer an impartial body of jurists, but has been undermined by political philosophy. In reality it has always been swayed by the underlying beliefs of the nine justices since they must, by necessity, interpret the Constitution, deciding how new laws and situations fit into that cherished document’s guidelines. It is clear to me that one of our President’s most important jobs is making appointments to the Supreme Court. Therefore it is extremely important to choose the person that will make the best choices possible, since it is typical for Supreme Court justices to far outlast the President that appointed them.

Our system of government is becoming an increasingly polarized institution that appears to have forgotten that they are elected to serve the people of our country. Unfortunately, our citizens include groups of illiterate dog-haters as well as billionaires that favor tax cuts for the extremely wealthy, even if it shatters the economy in the process. Our citizenry also includes millions of kind, thoughtful people, but we don’t hear much from them. That’s too bad, because it’s this group that needs to express itself more forcefully.

Maybe we should start a new political party. Call it the Dog Party, designed to serve the needs of those whose hearts are big enough to provide care and comfort for our canine companions. But we’d probably need another name for it, since these folks should be kind enough to see the need to include cat owners as well. Of course we can’t forget tropical fish…and ferrets…hamsters…ah hell, it’s tough to please everyone.

“The better I get to know men, the more I find myself loving dogs.” 
―Charles de Gaulle


Monday, September 24, 2012

Paying Our Best and Brightest


E. Gordon Gee, the energetic, 68-year old, bow-tie-wearing president of The Ohio State University was the subject of a news article in today’s paper. The story seemed to be critical of Gee’s lavish spending for travel and entertaining over the past five years, and made comments about “his” 9,600 square foot mansion. I’ve been critical in the past regarding excessive compensation for America’s Chief Executive Officers, and being president of a major university is very similar to running a large corporation. Since I’m an OSU graduate, the article caught my attention and caused a wince of shame. We think of academics being more like the impoverished Mr. Chips than the wealthy Daddy Warbucks.

However, my finance degrees from OSU gave me a strong foundation in analyzing the underlying numbers, which I did. The paper reported that Gee’s compensation was $8.6 million, but buried the fact that it was over a five-year period, so he earned an average of $1.72 million per year in salary and benefits. He had travel and entertaining expenses of $7.7 million over the same period, so $1.54 million per year. During a 38-month period approximately $895,000 was spent entertaining guests at the residence, which numbered about 16,000 over a five-year period. As close as I can figure, that’s a little over $88 per guest. Gee’s 9,600 square foot residence is not really “his”, it belongs to The Ohio State University Foundation, and was donated by a local resident. The foundation is not funded by taxpayers, but with private donations.

During the five-year period, the popular university president presided over an increase in the university’s endowment of $2.6 billion dollars. In other words, for every dollar spent by Gee, he brought in almost $160. Too bad my stock portfolio never achieved that kind of gain. It doesn’t really seem like Gee has been terribly over-compensated.

Compare that with the performance of the CEO of Home Depot in 2006. Over a five year term he had been paid $123.7 million, excluding stock options, or almost $25 million per year. During that period, Home Depot’s stock price decreased by 10%. When he was finally ousted, he left with a wonderful "golden parachute" whereas the company was left with a financial mess. Last year, the Bureau of Labor Statistics reported that median CEO pay had increased 27%, while median worker’s overall pay increased only 2.1%. The rich are truly getting richer, while the rest of us are getting screwed.

A story produced by ABC News last year showed 26 CEOs received more in compensation than the company paid in income taxes, and added that tax breaks that contribute to excessive executive pay cost taxpayers $14.4 billion annually.

How can we change this? There is already a limit of $1,000,000 on executive pay that can be deducted for tax purposes. Companies have already circumvented this problem by compensating executives with stock options, allowing them to purchase stock in the future at below market prices. Even if they mess-up the company, they can still profit.

Famous management consultant/economist/professor Peter Drucker said that CEO pay should be no more than 20 times the rate of worker’s compensation. Higher CEO pay tends to erode worker morale and productivity. The CEO of the company that I work for made well over 350 times what I’ll make this year, and there’s lots of people in the company that earn less than I do. Incidentally, the morale at our company really sucks.

Again I ask, how do we remedy this situation? It is argued that CEOs must have large compensation packages in order to bring in the “best and brightest”, executive compensation is a market-based figure, and “the market” always knows best. Obviously, companies like Home Depot in the situation described above were not correctly gauging the market. I’ve always wondered what the effect on such things would be if corporate income taxes were eliminated entirely.

The argument is that corporate income taxes are simply another cost passed along to consumers. One way or another, we end up paying the tax. The ability of corporate accountants to play the system and allow CEOs to be paid more than the company pays in taxes is already documented. If all business decisions were made based on the immediate impact on the bottom-line profits, instead of being based on an after-tax basis, would the decisions change? I don’t know, but I think they might. There are a whole lot of other effects to consider, and major changes to individual income tax laws would have to be made in order to compensate for the loss of corporate taxes. Corporate income taxes remain popular with the government simply because they’re easier to collect than personal income taxes. But large companies are playing games with accounting to escape paying significant taxes anyway.

I would love to hear your take on the matter. Leave a comment. The issue is complex, but any idea could have merit. Should we continue to allow our country to morph into an oligarchy, where the richest rule over all, or should we implement laws to return power to the electorate? It is no longer an issue of the merits of capitalism over collectivism; I’m still a firm believer in capitalism. It’s really a matter of civilization over…I don’t even want to imagine the eventual alternative.

“ When a man tells you he got rich through hard work, ask him: Whose? ”
— Don Marquis
   

E. Gordon Gee
President, The Ohio State University

Wednesday, September 19, 2012

Civilization and Government Housing


United States Congressman Paul Ryan spoke out today in defense of his running mate’s earlier comments, which had not been well received by…well, apparently no one liked them, not even the guy that said them. Romney, upon reviewing his remarks, didn’t really like what he had said, primarily because he angered almost half of American voters. No doubt one of his strategists told him that he would need to get more than 50% of the votes in order to win. Pity that you can’t simply buy this one, isn’t it?

Ryan stated that “…what we’re trying to achieve is getting people off of government dependency and back to a job that pays well and gets them onto a path of prosperity.” Then he added “We have too many people becoming too dependent upon government because of the poor economic policies of the Obama administration.” Perhaps the young man needs to glance at his own resume. Too many people are dependent on government? Like…um…a certain U.S. Congressman who would like to get promoted to Vice-President? Dude, it’s a government job. Taxpayers pay your salary, provide you with the best health care insurance available, much better than most plans available to the millions of Americans that you would like to have vote for you (so that you can spearhead the drive to deny an inferior level of health care coverage to them), and offers a host of other perquisites. If you get elected to the job of Vice-President, it includes some pretty swanky government housing as well.

What was totally ignored in Ryan’s remarks is that our current President has been trying to put more Americans back to work in the private sector (through his proposed jobs bill), and has been trying to do so for some time now. The problem is that the opposition party has been blocking his initiative in the U.S. Senate, in order to make him look weak. What nonsense, what hypocrisy, what lies are these idiots willing to spew in order to attract the votes of other fools? If you guys want real change, use real facts to support your position because the BS ain’t flyin’.

Ryan went on to say “President Obama said that he believes in redistribution, Mitt Romney and I are not running to redistribute the wealth, Mitt Romney and I are running to help Americans create wealth.”

Well, first things first, as my old Economics professor used to say. The redistribution of wealth through the use of a progressive income tax has been considered a very sound and equitable arrangement for many years. By the way, it is called a "progressive income tax" not because it is favored by liberals, but because the percentage of tax paid increases slightly as one earns a higher income. Personally, I’ve never been opposed to paying a little more than someone else that couldn’t afford it as well as I could at the time. Call it a basic tenant of Judaism, Christianity or Islamic tradition, or call it good Karma, or just call it being civilized. It has always seemed to me to be the right thing to do. I’ve also had the great good fortune to have friends do the same for me in my time of need. A progressive income tax has been considered reasonable for many, many years. It isn’t socialism---it’s called civilization.

What kind of wealth are Romney and Ryan seeking to create? If history is any judge, they seek to enrich the few at the expense of normal, hard working Americans. Romney’s wealth is the result of money made through leveraged buy-outs (I was going to say earned, but he really didn’t earn it through hard work, or even spectacular insight, did he?) He figured out how to scam the system by borrowing heavily, and bankrupting frequently, that all too often left the company they acquired no longer productive.

We need an economically strong middle class and a healthy, functional economic climate. We don’t need people to screw-up functional enterprises. True, not every company deserves to survive. The first ones we need to get rid of are the ones that prey off of the misery of others. One such company is named Bain Capital and it was started by a guy who wants to be our next President. These guys already don’t pay as much tax (as a percentage of income) as a good secretary or a store manager, and yet they whine that they have to pay too much. Boo-freakin’-hoo. America’s top marginal tax rate is lower than it has been for many decades. That means that the very wealthy in this country pay lower taxes than their parents or grandparents ever did. I never heard my grandfather bitch about taxes.

Our country provides opportunity at unequal levels, and likely always will do so. The children of wealthy parents are far more likely to succeed at whatever they try than the offspring of poor parents, or at least have an easier time if they fail. Our system of taxing people who can afford to pay more has been considered fair for a long time. Why is there such a sudden need to change that? A civilized society considers it greedy to desire more than one really needs, especially if you have to hurt someone else to get it.


“Thus did a handful of rapacious citizens come to control all that was worth controlling in America. Thus was the savage and stupid and entirely inappropriate and unnecessary and humorless American class system created. Honest, industrious, peaceful citizens were classed as bloodsuckers, if they asked to be paid a living wage. And they saw that praise was reserved henceforth for those who devised means of getting paid enormously for committing crimes against which no laws had been passed. Thus the American dream turned belly up, turned green, bobbed to the scummy surface of cupidity unlimited, filled with gas, went bang in the noonday sun.” 
           –Kurt Vonnegut, Jr., God Bless You Mr. Rosewater: A Novel


One Observatory Circle
Official Residence of the U.S. Vice President

Friday, September 14, 2012

Poor Fishing


This Wednesday the U.S. Census Bureau released a report saying that the poverty rate in 2011 was at 15% of American households, representing roughly 46.2 million of our fellow citizens. It called the change in the rate from last year’s 15.1% “statistically insignificant” and further stated that median household incomes fell to $50,054, representing a 1.5% decrease from 2010 levels, the second straight annual decline. Additionally, the report indicated a slight easing of the unemployment rate between 2010 and 2011. During the same period the gap between rich and poor increased and there was a small decline in the number of people without health insurance. In a blog post, the White House said the data showed that government policies can help the poor, middle class and uninsured, while more work needs to be done. No shit Dick Tracy.

Speaking from a fundraising event in Florida (does he ever just talk to people, or must he also constantly get money from them?), W. Mitt Romney said that Obama “is the candidate that’s pushed the middle class into poverty.” Um, apparently Mitt was on vacation somewhere (probably somewhere nice and expensive) when George W. Bush and his Republican pals pushed the economy into the abyss during the Financial Meltdown of 2008. It must be a wonderful feeling to be able to awake each morning and invent a sparklingly bright new reality out of whole cloth. True reality bites the big one.

Willard went on to say that his party was not “…the party of the rich. We’re the party of the people who want to get rich.” Um, again…no shit famous-comic-strip-detective-named-Dick. It doesn’t take a genius to figure out that a party cannot survive on the 1% of rich Americans for support. It depends on support from a gullible electorate that believes their own ship of prosperity is about to dock any minute, courtesy of a party that really wants to keep them dumb and wanting.

I used to love to go fishing as often as possible, and it was pretty easy to do so when I once lived 60 feet from the shore of a lovely lake in east central Ohio. I fish for relaxation, not for food (I find it difficult to refer to it as “sport” since the lake was stocked with fish annually). Although I lack conclusive evidence (I don’t bother with DNA testing while engaging in catch and release fishing), I’m almost positive that I caught the same bass twice in one day, in fact the second catch was within a half hour of the first one. He (or she, like I said, I don’t do tests) must have been really hungry, or the artificial lure that I was using must have been exceptionally alluring that day.

But today I had a new insight about fishing, and it was from the fish’s side of the water. We as voters tend to swim along under the surface. We are hungry, not for mere illusory bait, but for actual substance. As we seek our elusive prey, we are given the opportunity of biting on false substitutes time and again. Like the hungry bass, eventually we take the bait and we’re hooked. What a terrible shock it must be to be hooked by the lip and forcefully pulled from our natural environment. Probably like going to bed as a comfortable middle-class American and waking to discover that your investments have evaporated and your family has slipped below the poverty line.

As I prowl along underwater (millions of homeowners know another meaning of that term these days), I see two twinkles just beneath surface in the distance. Warily approaching the first, I see a highly polished spoon bait, and know immediately that I would find no sustenance were I to bite. Above the surface I spy the fisherman. His fishing tackle is of the highest quality and his clothing is tailor-made. Behind him are a small group of supporters, laughing and sipping champagne. Occasionally, they hand him new rods and reels of the finest quality, or slip him a pocketful of gold so that he might purchase more of his own. Farther behind him is another group, sipping tea and shouting slogans of divisiveness sprung from minds unschooled in rationality or facts. I am hungry, yet wary, so I swim on.

The next bait that I encounter is so lifelike that I must check my hunger before I swallow it whole in an instant. Above the surface I spot another angler, not quite so well tailored but certainly no slouch. His fishing tackle is of good quality, certainly equal to the task at hand but yet a bit below that of his opponent. A small group stands close behind him as well, urging him on and supplying occasional gifts of silver. Farther back on the shore is a highly diverse group of people. It’s immediately clear that although they stand in support of the fisherman, they do not always stand in agreement with each other. Perhaps if they didn't shout at each other and point blame their fisherman would have an easier task. I remain wary and continue on.

Down the shore are a line of children with cane poles and unbaited hooks dangling in the water without hope. I cannot waste my time there. My hunger grows, yet there are no other offerings to consider. I circle back and eye the baits again as instinct tells me that I must choose one or the other. I want more, but what? It would be nice if I could find a fisherman using live bait. At least I’d have a chance to fill my belly before I am caught again.


"Many men go fishing all of their lives without knowing that it is not fish they are after."

 -Henry David Thoreau


Wednesday, September 12, 2012

Robber Barons-Old and New


I just finished reading an interesting article and I think you owe it to yourself to read it too. It’s titled: “Greed and Debt: The True Story of Mitt Romney and Bain Capital” by Matt Taibbai, and appears in the latest issue of Rolling Stone Magazine. Here’s the link if you would like to read it online:
 http://www.rollingstone.com/politics/news/greed-and-debt-the-true-story-of-mitt-romney-and-bain-capital-20120829#ixzz26Go2IfOK

I’ve often mentioned my love for our cultural history, as well as the importance of understanding the past so that we may improve upon the results for our collective benefit in the future. One period of American history that has always fascinated me was the time in the mid to late-19th and early-20th century known as “The Gilded Age.” It was a time when industrialization took over the nation’s economy. Railroads, factories, and businesses flourished during this time and a new ruling class emerged: we named them “Robber Barons.” Like royalty of old, these men accumulated huge personal fortunes and built palatial mansions for themselves. Many of their homes are now tourist destinations, owned by historic trust organizations, because for years after the end of the Gilded Age, no one could afford to maintain such homes on their own. My own community has such as place, known as Stan Hywet Hall and located in Akron, Ohio. Built late in the age (1916), it was for years the home of the Seiberling Family, founders of Goodyear Tire & Rubber Company as well as the Seiberling Rubber Company. A member of the family still lived in the gatehouse on the property when I first visited the property on a school field trip in the 1960’s. Originally built on about 3,000 acres, the 65 room main Manor House was quite impressive, and much more than one family really needed.

Of course the Robber Barons got a much earlier start. In the mid-1800’s, Cornelius Vanderbilt started out in the new field of steamships and eventually moved into railroads to amass what was at the time the world’s greatest private fortune. Men like Jay Gould and James Fisk made money in railroads and stock speculation, John Rockefeller cornered the market in oil, Andrew Carnegie built the world’s largest steel works. These men were both revered and reviled in our history. The accumulation of such wealth usually does bring out detractors, since it usually requires some ruthless acts on the part of the mogul in order to become tops in a chosen endeavor. In the case of the Gilded Age Robber Barons workers were exploited, worked to destruction or death and cast aside without aid. Financial markets were manipulated, often crushing smaller investors along the way. In the end, facing the cold eye of history, guilt caused many of these men to establish philanthropical foundations to give away their tainted money to the less fortunate of the world.

It has been said that we are in the midst of a New Gilded Age with a new class of Robber Barons, and it’s probably true. However, one thing can be said for the Robber Barons of old that isn’t true of the modern version: for the most part, those guys actually built something. We have infrastructure like roads and railroads, oil refineries and factories, enterprises that actually employed people and added to the general wealth of all, even if it enriched the founder more than anyone. Now I am not opposed in theory to the rich reaping the rewards of their efforts. People like Steve Jobs and Bill Gates built massive companies based on their ideas and efforts, and leave behind useful items that make the world a more productive and enjoyable place. Such people are entitled to the fruits of their labors. However, many of today’s wealthy have taken a different route.

If you don’t understand the basic mechanics of the process known as a “leveraged buyout” there are many excellent reference sources on the subject, including the article mentioned above and videos on YouTube.com. In essence, an investor group buys a company using a little bit of its own money and lots of borrowed money. Then, several things can happen, like the investor group can actually make improvements to company’s management and operations, making it a more profitable enterprise then sell it based on the value added. Most such companies, like Mitt Romney’s Bain Capital, would like you to believe that’s what always happens. Truth is, that scenario is the exception rather than the rule, but it has happened.

Typically, after buying control of a company with largely borrowed funds, saddling the firm with a huge amount of excess debt, the LBO firm guts the company. Key employees are fired, assets are sold-off, and new, unwarranted management fees are charged to the company for the advice that will eventually destroy the company. Most of these firms are bankrupted, but not before the LBO company has recouped all of its investment plus a huge profit through the use of management fees. One such recent example that I witnessed up-close and personal is what happened to the company known as Hostess Brands.

Hostess Brands is the company that makes Wonder Bread and Hostess Twinkies, among many other products. It has gone bankrupt twice in recent history. How could a company that makes such ubiquitously popular products as white bread and cream-filled goodies possibly go bankrupt in our increasing obese American society you may ask? Give yourself an “A” if you answered Leveraged Buy Out. I listened to the tales of woe told by drivers that delivered these products to grocery stores over the past few years. Stories were told of benefits stripped from or denied to longtime, loyal employees. Mismanagement of pension funds took place. However, the top managers of the firm were handsomely rewarded all along for allowing the company to fail. Something is very wrong here. Shouldn’t this be a crime? Let’s make it one.

Our current tax laws allow LBOs to write-off interest on debt payments as a normal course of doing business, just as the interest on your home mortgage is tax-deductible. Unlike you, who own a home where you and your family can live when your mortgage is finally paid, the new Robber Barons of the LBOs are long gone. They’ve bankrupted and liquidated the company, destroying lives in the process, and weakening our economy too.

When I was studying real estate in college during the mid-70's, we used to judge any proposed project on both a before and after-tax basis. The analysis included the effects of the marginal tax rate of around 70% on proposed real estate investments. Because mortgage interest was tax deductible, and non-cash expenses like depreciation also lowered the income tax burden (real estate typically increased in value, although you were allowed to assume for tax purposes that it decreased in value-which the buildings do, but the land doesn't-really confusing if you haven't studied it.). Anyway, the result was that many projects that weren't feasible on a before tax basis became must do projects when income taxes were included in the equation. What resulted were some famous cases like the "see-through" office buildings in Texas and other places. They got their name because the buildings had no tenants, and therefore no interior office walls-you could see right through them. In one memorable case, the developer/owner of an empty skyscraper in Texas moved his home to the top floor of his empty high-rise office building, and then declared bankruptcy. Under Texas bankruptcy law, he was allowed to keep his personal residence (without paying his creditors), which in this case was a giant office building! Real estate tax laws changed significantly in 1986. I remember being very busy at the end of the year in '86 as a commercial appraiser. Tax laws for real estate were changed at that time for the benefit of the economy. We need to do the same thing with regard to Leveraged Buy Outs. They wreck the economy and shouldn't be allowed to happen.

Romney and his ilk like to talk about how they understand business, and their economic model will work for America. Do you really think so? While screaming about the evils of our nation’s increasing debt, they have used debt to enrich themselves. I believe the proper term is “hypocrisy.” There are those who argue for necessity of unharnessing American capitalism from the yolk of excessive regulations for the good of the country. History has shown us the results during the first Gilded Age, but I doubt if it can survive the results from the second one.

Most likely we need a Constitutional Amendment to stop this practice, and those are hard to get. Simple changes to the tax laws are possible, but unlikely in the current corporate controlled legislative bodies of our country. Actually, nothing is likely to happen unless we stop living in a dream world where everything will be OK if we just work hard and persevere as best we can, like our parents told us to do. They wouldn’t recognize the new business model as having anything to do with making the world a better place to live. You shouldn’t either. People who commit such acts of brutality should be labeled as financial terrorists and incarcerated for the overall good of society and our economy. Sure as hell they shouldn’t be asking us for our vote to allow one of them to become the leader of the free world.

“The seemingly religious flavor of Bain's culture smacks of the generally cultish ethos on Wall Street, in which all sorts of ethically questionable behaviors are justified as being necessary in service of the church of making money. Romney belongs to a true-believer subset within that cult, with a revolutionary's faith in the wisdom of the pure free market, in which destroying companies and sucking the value out of them for personal gain is part of the greater good, and governments should 'stand aside and allow the creative destruction inherent in the free economy.' "
 - Matt Taibbai, from “Greed and Debt: The True Story of Mitt Romney and Bain Capital”


Cornelius Vanderbilt

Monday, September 10, 2012

Low Information Voters and Other Birds


I've had the opportunity to get to know a wide range of people over the course of my life, from the homeless to CEOs of Fortune 500 companies, and everyone in between. Despite a vast difference in socio-economic conditions, there is a trait that many people share. They don’t pay enough attention to what is happening in their various government bodies. I’d like to tell you a story that represents the kind of person I’m talking about: the Low Information Voter.

Let me introduce you to Sid (it’s not his real name), one of the guys I met while working in a grocery store. Sid delivered soda pop for one of the major beverage companies. He is a naturally gregarious sort, usually with a fresh joke to recite, and always wanting to talk about whatever was the major topic of the day. In November, a little less than two years ago, right after the elections, he came into the store with his delivery and asked me if I had picked the winners with my vote.

“Not really,” I told him, “most of the guys I wanted to win lost.”

“Not me,” he replied, “most of the guys I voted for won. I used a system. If they were in office, I voted ‘em out. Time to give the new guys a chance.”

I was a little stunned by his choices, especially since our new Governor-elect and new Congressman were both strongly anti-union. Sid held some elected office in his own local union, and had once favored me with a lecture about how minimum wage laws and medical benefits all came about in the workplace because of unions. I told him about the anti-union rhetoric that his candidates had been spouting before the election.

“Didn’t know that,” he said. “But the Governor’s TV ads made him sound a lot better than the other guy.” I was stunned, but I shouldn’t have been. He voted based on TV ads, and the winner had a bigger war chest. His ads played twice as often as his opponent’s ads.

Several months later, I was talking to him out back of the store, as he unloaded his truck. He said that he respected my opinion, and had a question that he wanted to ask. How could I refuse? “Do you think Obama is a socialist?” he asked.

I laughed. Of course I had heard our President called a socialist by the Tea Party extremists and other right wing rabble-rousers, but I couldn’t imagine that anyone took them seriously. I explained that I felt the President was a fairly pragmatic centrist, and then gave him a similar example. “President Obama is politically pretty similar to Richard Nixon,” (well, minus the rampant paranoia) “and I don’t think anyone ever called Nixon a socialist." Sure, Obama wants the really rich people to pay more taxes than the [struggling and disappearing] middle class do now, but the top marginal tax rate under Nixon was a lot higher than what Obama proposed.” I explained that a system with progressive tax rates does redistribute wealth to a certain extent, but doesn’t really qualify as socialism. We’ve had progressive income tax rates for a long time.

Then he asked, “What is a socialist?” It wasn’t the kind of information you get from TV ads, but it is a term brandished on some of the less informative infotainment shows for the purpose of causing unwarranted damage. Apparently because some jerk on TV had said the president was a socialist, it must be true. Obviously he didn’t understand the way that modern American media works.

Recently, I encountered an older man who spoke proudly of his union; he told me that everything he had in life was derived from his involvement with the union at the steel mill where he’d spent his life. He then told me that the company he’d worked for went bankrupt shortly before his planned retirement and was purchased by another company that had been freed of the previous firm’s pension obligations. I joked with him that we now have a candidate for president with lots of experience doing the same thing. When he told me he supported Romney for president, I was more than a bit confused. As a businessman, Mitt had never been a friend to unions.

Then the old man informed me with a single word of his deep-seated bigotry, told me of his fear of a coming uprising of blacks in this country, and how he was convinced that Obama intended to get us into a war with Iran and Russia. I had already quit listening. Racism, paranoia, and most likely large doses of watching Fox News tainted his logic. Sadly, bigotry in his generation was largely the result of institutionalized “education” at an early age, and won’t really disappear until the generation passes away. This guy wasn’t really a Low Information Voter; he was a Misinformation Voter.

Some older voters are rooted in the past, where President Eisenhower was typical of the Republican Party, standing for smaller government when possible while allowing it to provide for the people when necessary. Protecting the rights of citizens as best he could, while warning us of the dangers of a sprawling military-industrial complex that remains a threat to us all. They think that men like LBJ still exist, who could cajole, sweet-talk, and arm-twist the Senate into actually taking action, instead of hiding behind the wall of a threatened filibuster in order to make the opposition look weak. They may half-listen to talk radio and TV pundits, but real information rarely finds its way into their thought process. Sadly, they have become the Old Information Voters.

Then I had an encounter that simultaneously blew my mind and broke my heart. A few days ago, I gave a fellow employee a ride home from work. Ken is a thirty-something year old black man. He lives with his mother and other family members, and takes the bus to work (apparently he doesn’t own a car or drive), although his mother picks him up after work because our city buses don’t run that late. Having just listened to Bill Clinton’s speech at the Democratic National Convention, and appreciating his message and delivery, I asked Ken if he followed politics as we headed toward his home. “Let’s see,” he said, “I know Romney, and Bush-Cheney, and Obama too. Oh yeah, and John McCain and what’s-her-name…Palin.”

I told him Bush and Cheney hadn’t been around for a while, and that McCain-Palin had lost the last election, and weren’t currently running, although McCain was still a senator. He told me that he had seen a video on TV about McCain during the last election that he had liked. The video told McCain’s history, including his time as a POW in Vietnam. Ken told me that he thought it was pretty cool that the North Vietnamese had offered John McCain an early release because “He had some relative in the military,” but he had refused. I explained that John’s father was a Navy four-star admiral at the time, and had been given command over all U.S. troops in Vietnam.

“Yeah,” he agreed, without comprehension. “I thought that was pretty cool. I was going to vote for him, but…ya know, I didn’t.” As it turned out, Ken didn’t bother voting for anyone. I was amazed that as a young black man, living on the brink of poverty, working a part-time job without benefits, would consider voting for the guy running against the first serious black presidential candidate in history. The candidate that offered the most hope for people like him. It didn’t make sense to me. I had encountered my first No-Information Non-Voter. It made me want to scream. In the end, I said nothing. What could I say that would change anything? Here was a guy who just went through life taking whatever was offered, and giving nothing in return. He had no real sense of the issues. McCain’s video had been sufficiently persuasive to influence his decision, because he thought of the Senator as an American hero, and that was enough. Apparently he was doing something else when the Democrats met, and played Obama’s biographical video. Maybe Ken would have been inspired enough to register and actually cast a vote. I doubt that it would have really made a difference.

As I think about it, I begin to wonder if Ken was representative of a significant amount of Americans who just don’t bother to vote at all. Does it really make a difference? I’d like to think that it does. I’d like to think that eventually someone would stand up to the moneyed interests and fight for the vision of America that we were taught to believe in as children. It doesn’t seem to be happening, does it? After all, I voted for change in the last election, and things really haven’t changed that much. The President did manage to get health care reform legislation passed, but it faces repeal after the next election. The Supreme Court has allowed unrestrained money to flow into the election process under the guise of free speech, even if it means that everyone is free to lie.

I had thought that Ken was the ultimate mind-blower. That was until I met a customer that came into the store today. Wearing a dirty and ripped M*A*S*H T-shirt and buying lots of canned goods, she told me that the interest on the $16 billion that America owed (maybe she meant trillions) was coming due and we couldn’t afford to pay it. She said that the elections this year might be canceled. I told her that there had been reports before the last presidential election of the same thing, but it didn’t happen. She said that the drought was going to make it impossible to find food, then added that Social Security was stockpiling ammo, but later (she came back in for more canned goods) she said that maybe it was really Homeland Security that was buying bullets. She said that it was important that I had enough ammo. I assured her that I did have enough ammunition. What I didn’t tell her was that if the shit really hit the fan and anarchy was the rule, the first victim that I would seek was a crazy lady with lots of canned goods. Perhaps it’s better that such people don’t understand the real truth. It would be even better if they would log-off the Internet, shut-off Fox News, and maybe go outside and tend their garden, or maybe try to educate themselves on what is transpiring in the world where real people live. I don’t know if she bothered to vote or not. I don’t even want to come up with a term to describe a voter like her. The only thing that came to mind when she finally left was “Cockoo-Cockoo-Cockoo.”

So what kind of voter are you? Do you even bother to vote? Do TV ads influence you, or do you tune them out completely, focusing on what a candidate's past actions tell you about him or her? Is there anyone running for office that really deserves your vote? Maybe that's the big question.  

“If you are bored and disgusted by politics and don't bother to vote, you are in effect voting for the entrenched Establishments of the two major parties, who please rest assured are not dumb, and who are keenly aware that it is in their interests to keep you disgusted and bored and cynical and to give you every possible reason to stay at home doing one-hitters and watching MTV on primary day. By all means stay home if you want, but don't bullshit yourself that you're not voting. In reality, there is no such thing as not voting: you either vote by voting, or you vote by staying home and tacitly doubling the value of some Diehard's vote.”
                                                                          -David Foster Wallace



Thursday, September 6, 2012

A Good Talk With Friends


Former President of the United States of America William Jefferson Clinton gave a speech last night at the DNC in Charlotte. It was a very good speech, but it was more than just a speech. The way it was delivered, it was like a good talk with a friend that you care about. I believe our former President does care deeply for all Americans, and in last night’s speech it showed. If you didn’t get a chance to see it for yourself, bring it up on YouTube.com and watch it in its entirety. Clinton used facts to support his position that we must reelect our current President. He made a lot of sense. Unlike the speeches at the RNC, he didn’t have to resort to lies to make his case to the American people, or even talk to an empty chair. He also refuted many of the lies told by Republicans about the so-called cuts to Medicare and wrongly charged abandonment of the work rule for welfare. The truth is a powerful weapon and I hope that more than a few undecided voters listened.

Clinton looked rather proud of himself when he had finished his talk, and it was certainly deserved. However you may feel about the man personally, it is hard to deny his positive impact on the American economy during his tenure as President. He attributed his success with the economy due to his reliance on “arithmetic.” Perhaps the opposition should take note. Romney would like to cut taxes for the very wealthy because they would use the extra money to create jobs (perhaps an upstairs maid and a downstairs maid?) despite all historic evidence that this simply will not happen. Romney would also increase military spending by a couple of trillion dollars above what the Department of Defense has requested in its budget (that would likely increase employment in the military-industrial complex, but I’m not sure that’s a great idea for sustainable economic growth). Unfortunately, the arithmetic doesn’t add up. If we lower our tax revenues (the planned tax increase for the middle class won’t make up the difference) and increase government spending (Romney would also like to trim other government programs that give aid to the poor and middle class, but will he have enough Congressional support? I hope not.). More spending and less income—oh yeah, and less banking regulation—that’ll really help. You can see why it doesn’t add up. It fails the simple arithmetic test.

No one is perfect. President Obama isn’t perfect, Bill Clinton isn’t perfect, and the Romney-Ryan ticket isn’t perfect either. All of mankind is flawed. Likewise, all systems of government are flawed. Winston Churchill said it best in the quote about democracy included below. There are no perfect answers, but some proposed solutions are better than others. Like I said, you need to watch the speech. Do it with an open mind. When you’re finished, please feel free to post any comments on where you see a failure in the logic of what was said. Please don’t resort to lies or even small misstatements of fact. We don’t need those and they won’t help. The airwaves are currently full of such nonsense, and I can’t bear to hear them anymore. Stick to the facts. I’ll listen, but first, you need to listen.

 “It has been said that democracy is the worst form of government except all the others that have been tried.” 
                           -Sir Winston Leonard Spencer Churchill (1874-1965)

 “The truth is incontrovertible, malice may attack it, ignorance may deride it, but in the end; there it is.” 
                           -Sir Winston Leonard Spencer Churchill (1874-1965)


Sunday, September 2, 2012

The Old Pros (from Tales of New Canaan)


“Dr. Butterfield died last night,” my secretary Laurie announced as she entered the coffee room of my office, where I was pouring my third cup of the morning, and Laurie was fixing her first.

“I heard he was in the hospital,” I replied with a shrug of my shoulders. “It had to happen sometime.” Now this may seem callous to you, a rather cynical view of life on my part, but in truth Dr. Herman Butterfield was one hundred and eight years old, and had outlived two wives, three of his five children, and at least two dozen of his former mistresses. Not to mention a string of twenty or so German Shepherds, all of them named Champ.

“Should I get the file for you?” Laurie asked as she poured far more sugar in her cup than Dr. B would have ever allowed.

“No, I got it out last week when he was admitted to the hospital.” I always believed in being well prepared, especially for a client with whom I shared a nearly four decade relationship. “When Bob Samuel calls, put him right through,” I added as I headed down the hall to my corner office. I knew Bob would be calling, because A. Robert Samuel, JD, had been the attorney for Herman B. Butterfield, MD, Ph.D., for at least as long as I had been appraising the property for them.

My name is Steve Larson by the way. I am a professional real estate appraiser, which other professionals such as doctors, lawyers and accountants sneer at, especially when they have to pay one of us. I suppose I could add the initials of my college degrees after my name, like the attorneys and doctors do, but BS and MBA aren’t really all that impressive in those circles. The only initials that matter are the ones that do appear after my name on my business cards: MAI. No, that doesn’t stand for ‘missing in action’, look again, it’s not in the right order. Some real estate developers think (or hope) it stands for ‘made as instructed’ and choose appraisers who fulfill that promise. I’ve always tried to maintain my integrity. The initials stand for Member of the Appraisal Institute, which is the top designation that a real estate appraiser can get. It is issued by the Appraisal Institute, which oddly enough used to have a longer name before it merged with a rival professional organization. But I won’t bore you with those details. What it really means is that I get to charge more money for my appraisal reports that my competition can get. It also means that I’ve been around long enough to know my shit. Excuse me, I should say that it means that I demonstrate an exceptional level of knowledge in the area of real estate valuation.

The call that Laurie put through about fifteen minutes later was a bit of a surprise, but not too much of a shock. Byron Jacobs, CPA, was a senior partner of the accounting firm that handled the books for The New Canaan Wellness Center, which was Herm Butterfield’s brain child as well as his pride and joy. Byron explained that Bob Samuel had called him from Logan Airport in Boston, Massachusetts. Byron told me that Bob had been in Boston (Cambridge actually, but Byron was an Ohio State graduate, like me, and didn’t really know exactly where Harvard University was located) and was heading back to New Canaan after seeing his grandson’s college graduation. They were hoping to get together first thing in the morning, the day after tomorrow. Dr. Butterfield would be buried tomorrow, and Byron also correctly assumed that he would see me at the service. I try to avoid as many funerals as I can, especially Catholic, or, as in this case, Jewish ones, but it’s getting increasingly more difficult as I get older. Too many good friends and long time acquaintances have been dying lately. Besides, Dr. Herman Butterfield was a full-blown legend in this little corner of Ohio, a truly remarkable visionary, and I suppose I really wanted to make sure that the crazy old bastard was really dead.

After I ended the conversation with Byron, I sipped my now lukewarm coffee as I stared at the huge file on my desk. I don’t like to throw things away. There’s often some old piece of information hiding in an appraiser’s files, and as soon as you clean out your files, someone calls looking for data from the 60’s or 70’s in order to do some crazy ass assignment that calls for a value from half a century ago. They’re rare, to be sure, but if you get one, you can charge an arm and a leg for it, because even with the Internet, the kids just don’t have the relevant information. Anyway, my file on the New Canaan Wellness Center was in one of the biggest expandable folders you can get. There were at least thirty full blown appraisal reports in there, along with some older letter updates, and other stuff that we appraisers just don’t do anymore, either because of federal regulations, professional standards, or since we hate to get sued as much as anybody. Sadly, there’s far more licensed attorneys than there are certified commercial property appraisers. The reason there were so many reports is that Herm Butterfield operated the NCWC as a general partnership. He refused to incorporate, thus new partners that were brought into the constantly expanding practice were forced to buy into the real estate as well, and since the facility itself was constantly expanding, new valuations were needed at regular intervals. I thought it was a bit crazy, but it paid my bills for too many years. Who was I to argue?

The funeral went as I expected, long and boring, with a ton of praise for the dear departed, who was remembered as a visionary. There were lots of folks I recognized, and many more that I didn’t. Included in this second set were a group of attractive women, with a wide range of ages, from around mid-forties to well past eighty. They seemed to know one another, or just congregated together because they sensed their connection to each other. They had all been Dr. Butterfield’s mistresses. Herm Butterfield’s philandering was a widely known, yet oddly, seldom discussed secret in New Canaan. Apparently, you get a little more slack if you’re considered a genius. I’m sure I wouldn’t be so lucky, not that I’ve ever really been tempted. I’m very happy with my wife. She’s a keeper.

Unlike the funeral, the meeting of the ‘old pros’ the next morning had a few surprises. The meeting was held in the large conference room at the New Canaan Wellness Center and started early, at 7AM. This was the reason I traveled alone. Normally I would bring one of my associates, since they mostly did all of the work anyway. For important clients such as this one, that would typically have been my son, Ryan, who is very talented in the field of appraisal, and is also a terrific schmoozer, which really isn’t one of my strong suits.  I’m much too old and too blunt to care much about being tactful these days. Ryan got his start in a large corporation before he was forced out in some power play and decided that it wasn’t a bad idea to be your own boss. Unfortunately, Ryan is not noted as an early riser. He wouldn’t be in the office for another couple of hours, but to his credit, he would be the last one to leave. I didn’t really need his help right now anyway. We wouldn’t be covering any new ground here. Just more of the same old stuff for the old pros.

I entered the room and noticed the new face immediately, well not a new face, but one that didn’t usually congregate with the old pros.  Dr. Jack Butterfield was sitting along the side of the table, talking with Byron and Martin Curtis, a senior VP and member of the Board of Directors for the bank that had provided Herm his initial funding to start the clinic, and had prospered along with the rest of New Canaan and the Wellness Center over the years. Marty had surpassed the bank’s mandatory retirement age last year, but he had proved so indispensable that the bank had to alter their official policy for him. Jack Butterfield was Herm’s son from his second marriage, and the only child that ever followed the famous father into medicine. Apparently, he was also the only one of Herm’s children able to function in society.  He was talented and very intelligent, but utterly lacking in social graces. Following me into the meeting was Bob Samuel, the lead attorney for NCWC, and Daniel Bernstein, the managing partner of the Wellness Center. I don’t know why, but Dan didn’t like me. Probably hated paying my fees. Most doctors do. Unlike Jack Butterfield, Dan had tons of social grace, he just preferred not to use it. He’s a jerk.

Dan Bernstein took a new position for him at the head of table, Herman Butterfield’s usual seat. I suppose he wanted to make it clear who was now in charge. It was just his typical sort of power play. I would have left the seat vacant, to pay a last bit of respect for Dr. Butterfield, but that wasn’t how Daniel Bernstein operated. He nodded to everyone around the table. It was a mostly familiar group of faces. The old pros were together again.

“I assume you all know Jack?” Dan asked, nodding in young Dr. Butterfield’s direction. Brief smiles and accompanying nods in Jack’s direction conveyed what would pass as condolences from the group for the moment. “Is Todd Jackson joining us?” His question was directed to Jack, and his overt glance at his watch told us all what he thought of the young attorney’s tardiness.

“Yes,” Jack replied, “he should be here soon.” Jack Butterfield then explained to the group who they were waiting for. “Todd is my father’s personal attorney. He’s handling all the personal matters for the estate.” Just then the conference room door was opened by a young man who looked completely out of place in this room. From his crisp and conservative suit he was clearly a lawyer, but his puffy eyes and disheveled hair told us that he was not accustomed to such early meetings.

“Sorry I’m late,” he explained to the room, as Dan Bernstein waved him toward an empty chair with a look of utter contempt. Dan liked lawyers even less than real estate appraisers. The young man sat as he searched the room for a coffeepot, which he didn’t find. Most of us had brought our own with us. We knew that Bernstein didn’t give anything away for free. Have I mentioned that he’s a jerk?

As Bernstein made introductions for the benefit of the tardy young attorney, I did some quick calculations in my head. At our last meeting with Herman Butterfield, the average age in the room had been just over 71 years. Taking away Herm and adding Jack (41) and Todd (about 31, I guessed correctly) to the mix had lowered the average age to just shy of 56 years. I felt younger already.

Dr. Bernstein then got down to the heart of the matter at hand. The purpose of the meeting was to undertake all necessary steps to convert the partnership that owned the Wellness Center to a corporation. He turned to me with a cruel smile. “Sorry, Steve,” he snarled, “but I’m afraid we’re killing your golden goose. No more appraisals after this one.” He seemed to take genuine pleasure in the statement. Personally, I thought it was a great idea. Herman should have done it years ago. It’s just that I couldn’t let the remark pass without comment.

“Dan,” I smiled with just the proper hint of sarcasm in my voice and a smirk on my face, “not that I don’t enjoy seeing most of you on a regular basis, but you don’t think I really enjoy this assignment do you?” Like most of the old pros at the table, I was becoming a bit weary of my chosen profession, and was looking forward to a well-earned rest as my career slowed down.

“Well if that’s the case, I’m sure we can find a new appraiser to take on the job.” Dan thought he could intimidate me, but he didn’t. I really don’t need the money. I noticed Byron Jacobs, the firm’s long time accountant, and my old college roommate at OSU, stiffen uncomfortably in his chair.

“Uh, Dan,” Byron never liked to challenge authority, but he was gifted at saving money. “If we bring in a new appraiser at this point, the fee’s likely to run into five figures. I’m sure Steve’s fee will be, what,” he looked across the table at me with a hopeful raise of his eyebrows, “a quarter of that?” I nodded my acceptance. Of course I would add at least a thousand dollars to my normal fee. I called it my ‘Daniel Bernstein jerk surcharge’. It was non-negotiable.

Bernstein grumbled his reluctant acceptance. He was beyond merely gifted at saving money. It was an obsession for him. Young Todd Jackson seemed to need to throw me a bone at that point. “Our firm is going to need to have you do some additional appraisal work on Dr. Butterfield’s personal real estate as well, Mr. Larson.” He seemed to think of something important for a moment, then added, “assuming that wouldn’t cause any conflict of interest?”

“Not as long as everyone agrees,” I smiled at the earnest young man. He seemed like a nice kid. “Can I assume that’s the case here, Dan?”

Jack Butterfield fielded the question, earning himself a glare from Bernstein. “Oh, I’m sure that’s OK. You can even send a copy of the report on the Wellness Center to Todd at no charge.” I’m sure Bernstein had planned to charge the estate a marked-up fee. Dan smoldered at the head of table.

“You three can discuss that at your own convenience, after we’re done here,” Dan included Jack and Todd in his contempt for me. “Now let’s get this thing over with.” The meeting progressed along its usual lines. Each member was assigned the appropriate task for his profession. It wasn’t really necessary for all of us to be privy to everyone else’s assignments, but as experienced professionals, we were often able to point out a requirement from the point of view of our area of expertise that added to the assignments, or even in a few cases, made our jobs easier. It was a group dynamic that had worked well over the years, and continued to function as it should. After all, we were the old pros.

After the meeting, Todd, Jack and I walked together to the parking lot, discussing the next part of my assignment relative to Herman Butterfield’s estate. He owned various medical office buildings, strictly as an income source, as well as a few apartment buildings. I had already appraised most of them at one time or another. As we gazed back toward the Wellness Center, Jack asked a valid question. “So why would a new appraisal of this facility cost so much more to complete than what you’re willing to charge, Mr. Larson?”
I explained all of the unique aspects of the property, including its size, layout and other features that made finding comparable properties so difficult. A new appraiser would have to recalculate square footage, reanalyze the various highest and best uses of the component parts, and spend considerable time and effort on the task, while I already had most of data in my files. We turned to behold the hillside rising behind the parking lot, where dozens of lilac bushes were in full bloom, while the rose bushes between them were just beginning to show signs of budding. “And then there’s ‘The Contemplation Garden’,” I smiled as I extended my arms to encompass the flowering hillside. “Most appraisers would be stymied to come up with a value for that. What kind of value does a parklike garden covering more than an acre that includes a gazebo, restroom facilities and a state-of-the-art garden shed add to a medical facility?” I asked the question rhetorically. No one, including myself, knew the answer.

“Dad was always so proud of the garden. He planted most of that himself, you know.” I nodded and smiled at Jack. I had many conversations about the garden with Herman. He never liked what I had to say. “In fact, that’s why we had to put in the restroom facilities. As dad got older, he hated to be too far from a restroom. Probably had something to do with all of the baby food he ate.” Jack then had to explain to Todd about his father’s unique diet that consisted mainly of over-steamed vegetables and jars of baby food. It might have been weird, but it was hard to argue with the results. Did I mention that Herman Butterfield was 108 years old when he died?

“So how do you handle putting a value on ‘The Contemplation Garden’?” Todd asked. I shrugged. “It’s really just excess land. Can’t really divide it and sell it off separately, or it would be surplus land, and have a higher value. The improvements don’t really add to the value, so they’re considered to be merged with the land. Herm always argued the point with me. He considered meditation in the garden to have healing properties. He told me there was one at his own home, and said that I’d be surprised to find out how much his garden was really worth.”

“We added complete wi-fi coverage so that the doctors can take their laptops up there and work now,” Jack added, thinking that the change must have added some value, since it added cost. It didn’t, of course.  Jack was about to stick up for his father’s vision of the garden, and Todd saw a time-wasting argument brewing. He deftly changed the subject. “I know an attorney in Columbus named Larson, Andrea Larson. Any relation to you, Steve?”

I smiled. Thinking of my Andy always made me smile. “My daughter, Andrea, is an attorney in Columbus. She kept her maiden name for professional purposes. She works in family law. Is that who you mean?” Todd had worked with her in the past, and spoke highly of her abilities. I basked in the warm glow of paternal pride while we discussed my older child for a few minutes, and Todd revealed a few details of his own practice.

“I’m what’s known as a ‘wealth-keeper’ in my profession. My firm transferred me up here because there’s still quite a bit of old money in this area from some of the old manufacturing concerns.” While many of those old manufacturing facilities were now gone, or relocated to other parts of the world, many of the original family members remained in the area. Thank goodness there were competent young professionals like Todd to look after their money for them, or they might do something foolish with it, like spend it. “Of course, that’s assuming that we find all of the money in the first place, right Jack?” Jack Butterfield nodded glumly at Todd’s remark.

Todd and Jack then took turns explaining that while Jack’s father had left a sizable estate, it wasn’t nearly as large as they thought it should have been. I was wondering if perhaps Herm’s mistresses had taken a larger portion of his wealth than the younger men realized was possible. I’m sure it wasn’t Herm’s sparkling personality or physical prowess that had captivated his string of mistresses, especially during the last four decades or so. Although the man was charismatic, there was no denying that.

“What about your half sister,” I asked, “did she receive a large inheritance when your father’s first wife died?”

“No, Arlene got a modest trust fund when her mother passed away,” Jack replied. “About the same as I did when my mother died. Dad believed that we should make our own way in this world. Something that my brother never seemed to grasp.” Jack’s older brother died young, from a self-administered overdose of heroin. No one was ever able to determine if it was intentional on his part, or whether he had simply tried to take too much. The remark seemed to linger too long in the air. What could you say after that? Thankfully, Todd managed to change the subject again.

Todd told me that he had files on Herm’s assets that he needed appraised for the estate, and asked how soon we could get together. I told him that I had time right now, if he wanted to follow me over to my office, which was just about a mile up the road. I then made arrangements with Jack to tour the entire property again and take pictures the following evening. I planned to bring Ryan along, since he would be doing most of the work. I’ve pretty much had my fill of the New Canaan Wellness center.

Laurie was flirting with Todd as she showed him into my office, even though she was at least 15 years older. The term ‘cougar’ flashed through my mind as Laurie wiggled her still shapely form from the room, while smiling at the handsome young attorney, who was blushing as he took his seat. We settled into the small conference table in the corner of my spacious office, and were joined by my son Ryan, who was delighted to renew his acquaintance with Todd. They had both prepped at Phillips Academy Andover, and hadn’t seen each other since graduation. Disney was right; it’s a small world after all. We went over all of the properties, gave Todd a list of information that we would need in order to complete the assignments, and got the name of the person to contact at the property management company in order to schedule physical inspections. It was an impressive list of properties, worth millions of dollars. I pointed the fact out to Todd.

“I know you said you thought there was money missing from Herman Butterfield’s estate, but this is a pretty valuable group of properties. I’m sure he had other financial assets as well. He was a very wealthy man.” Todd nodded his agreement. “Surely, Herm’s…attraction to the ladies…must have cost him a healthy chunk of money over the years?”

“Oh, I’m sure it did,” Todd agreed, “but not as much as you might believe. We’ve done some investigative work already. I’ve been able to interview five or six of the mistresses so far. Their stories are pretty similar. Seems that the good doctor never really gave them much in terms of material goods. He seemed to offer them more of a…how would you put this…a supreme physical satisfaction? They got nice places to live, in Herman’s apartments, which didn’t cost him much. Some of them got cars, but mostly inexpensive used ones. Things like that. I have some expertise in forensic accounting, and I’m sure there’s a good deal of money missing.”

“How about jewelry?” I was no expert, but a few diamonds here and there would add up quickly, I thought.

“Well, that’s the strangest part. Jack has an older cousin, Saul, who’s a diamond merchant with offices in Amsterdam and New York. Saul says that he, and his father before him, had been selling Herm investment grade diamonds for years. Seems the Butterfield family lost some of their money in banks during the Great Depression, and Herm didn’t entirely trust them. But we haven’t found any diamonds. Well, that’s not entirely true. We found a baby food jar in his safe deposit box that had two nice diamonds in it. But that’s all. When I asked the mistresses if Herman ever gave them diamonds, they laughed. Some of them were very insulted. They said it was never about money with Herman. One of the old broads actually slapped me, and asked me ‘What kind of woman do you take me for?’”

We wrapped up the meeting, and I wished Todd luck with his search for the missing diamonds. Despite their protests, I still suspected that the mistresses must have ended up with some pretty baubles over the years. I’m sure that they were just engaging in some self-denial concerning the exchange of sex for money. Not that I’m an expert in these things. I’m a happily married man.

The next evening, Ryan and I took a tour of the New Canaan Wellness Center. Ryan had a copy of the floorplans and descriptions from the most recent report, and made few, if any notes. We then adjourned to the outside after Jack had excused himself so that we could take a few photos for the report. We didn’t need as many as we would typically put in a report that would be used for financing purposes, just a few wide angle shots from the four corners of the main complex, plus street views to show what type of development was located around the subject property. As we were heading to my Lincoln SUV for the short drive back to the office, I noticed two men digging up a lilac bush on the hillside at the edge of the ‘Contemplation Garden.’

I motioned for Ryan to follow me as we strolled the short distance up the hill. We were surprised to find Dan Bernstein and his son, Doug, a junior physician’s assistant at the center, furiously digging around the roots of the bush, which now lay on its side. Dan was mostly directing his son’s work, as they used a rake to knock dirt from the plant’s roots. Dan exhorted his son to be careful. They seemed to be searching for something in particular as they poked and prodded the lilac’s roots.

I knew that the pair hadn’t noticed our approach. “Did that bush do something to piss you off, Dan?” I asked loudly as we walked up behind them. The look on his face as he turned around included the rage of a man who didn’t like to be trifled with, combined with the guilt of a little boy who had just been discovered with his hand in the cookie jar. I savored the moment for a few seconds before Bernstein could work up a plausible explanation.

“These damn bushes have been aggravating my allergies for years. I can hardly breath outside around here this time of year when they’re in bloom,” Dan explained to me, looking remarkably clear-eyed for someone who claimed such an affliction. “I’m thinking of ripping them all out.” My bullshit detector is in excellent working order, and has served me faithfully for years. It was now ringing loudly in my head.

“I see,” I said, allowing my voice to reflect the fact that I didn’t believe a word that he said. “Might save yourself some aggravation if you call Roger’s Nursery and have them do it for you. They’ve got the right equipment, and all of those strong, young, illegal immigrants to do the work.” Roger’s had the landscaping contract for the Wellness Center for the last 30 years or more. They were the best firm in town, and charged accordingly. Herman Butterfield insisted that they were the only landscapers ever used on the property. I could see that changing soon, too. I quickly grew tired of annoying the Bernstein family, and turned toward my car with Ryan in my wake.

I was laughing softly as I climbed into the driver’s seat. “What the hell was that, Dad?” Ryan asked as he fastened his seat belt. “I mean you don’t often find a doctor doing landscaping work after hours, do you?”

“Well,” I reflected on Herman Butterfield’s career, “Dr. Butterfield planted most of the lilacs in The Contemplation Garden, or so I’ve been told. But I think he was the exception to the rule. My guess is that they were looking for diamonds.” Ryan’s expression told me that more of an explanation would be required, so I explained to him about the possibility that Butterfield may have converted large sums of money into diamonds. “Todd thinks he may have hidden them somewhere. I guess Dan Bernstein found out, and had a good idea where he might find them. Look in folder there, and see if I stapled Todd’s card to the flap of the file. I think we should give him a call and let him know what Bernstein is doing.”

Ryan, of course, being younger and more tech savvy than his old man, already had his old buddy’s number programmed into his iPhone.  By the time we made the short drive back to the office, Ryan and I had reported our suspicions, and left the next move to Todd. From what I understand, he blasted straight over to the Wellness Center in his Porsche, followed closely by Jack Butterfield, and the after hours gardening was abruptly terminated. Roger’s Nursery was called-in to restore the damaged lilac to its proper place.

Several weeks had passed and we had made all of the inspections of Herman’s real estate investments. I had divided the properties between Ryan and my other two associates, and the reports were beginning to trickle in for my personal review. I would wait until they were all done, then categorize them by property type, and make sure that we were being consistent in our observations about the current real estate market. Appraisers typically drag their feet when it comes to doing estate work. It’s not like the property owner is going anywhere at that point, since they’re dead. Dan Bernstein had called rather early in the process, anxious for the report on the Wellness Center, since he had a different purpose for the report than estate valuation. He wanted to establish the corporation. His only real obstacle was Jack Butterfield, who was going to inherit his father’s share, and end up as the majority stockholder.

Todd had also called several times. I had assumed that like most lawyers, he needed to add some notations to his own file that proved he was working on it, and could rack up some billing. However, it became clear that he liked bouncing ideas off of me relative to Dr. Butterfield’s missing diamonds. I have some career-related experience, since researching real estate often involves some detective work. He told me that he suspected Bernstein might have been on to something when he dug up the lilac bush. When the landscapers showed up to repair Dan’s damage, he and Jack actually had them dig up a few others, ostensibly to give the bushes some more growing room, but in reality they were searching the roots for buried treasure. The diamonds remained missing.

The month of June progressed. The firm had mostly finished up its assignments with regard to the Butterfield Estate, and we were preparing the final reports. Andy and her husband had come up from Columbus for the day. I took my wife Jill, Ryan and his wife Melissa, and Andrea and her husband Justin, out to dinner at an expensive new Japanese steak house that had recently opened. We had a delightful dinner. The conversation drifted to Herman Butterfield’s life and times. Ryan and I expressed our outrage at Herm’s many mistresses. It was the prudent thing to do in this situation. I explained to them that the good doctor had once confided in me that he ‘had married for procreation, but fornicated for recreation.’ Apparently, his choice of wives made sense to him, but I don’t think that it produced the caliber of offspring that he had initially sought.

His first wife was a brilliant woman, a talented musician, and a Catholic as well. The marriage was considered quite scandalous at the time, since Herm was Jewish (not that he was ever very religious). That union had produced two sons and a daughter. The children were raised as Catholics, and the oldest boy became a priest, where he drank himself to death before the age of forty. The middle child, the second son, entered college with the intent of studying medicine, but had switched to a major in English Literature early on. He managed to kill himself in his brand new 1951 Lincoln Convertible as he was driving around New Haven one rainy evening, very drunk. The daughter, Arlene, was a local artist of some talent, but minimal ambition, and was considered to be eccentric. Had she been poor, she would have likely been called crazy. Thankfully, she abstained from the consumption of alcohol, but reportedly smoked marijuana, which was most unusual in the early 1950’s. She was still alive, and lived in a retirement home near Santa Fe, New Mexico. Their mother’s mental health had declined over the years, and eventually Herm had her institutionalized, where she died several years before her oldest son.

Herman remarried shortly after his first wife died, when he was already 64 years old. This time he chose a nice Jewish girl, not that anyone really cared by then. She was 35 years younger than he was, perhaps a bit more unstable than the first, and produced two sons in rapid succession. Benny Butterfield made it to college, but soon dropped out, becoming a drug addict. The new Mrs. Butterfield committed suicide shortly after Jack’s tenth birthday. He was sent off to boarding school in New England, which may have saved his life, or at least his sanity. Herman was a very wealthy doctor by that time, and was also a world-class philanderer.

In the late 1960’s, Butterfield established the Wellness Center at the outskirts of the small city called New Canaan. He developed a holistic approach to medicine, which was considered cutting edge thinking at the time. He prospered, taking care of the medical needs of almost half of the community. Jayne Baughman, daughter of one of the city’s premier families, sang his praises, and he became the fashionable doctor of the well to do. Shortly after the NCWC was built, Butterfield planted his first lilac bush, along with some roses, and the Contemplation Garden was born.

My wife became fixated on the Contemplation Garden, and pointed out that aromatherapy has gained widespread acceptance and use in some areas of the medical community. Andrea pointed out that eastern philosophies have recognized the health benefits of meditation for thousands of years. Melissa added that Herman had combined the two, and could be considered a visionary. I just love smart women, especially the three at my table.

After dinner, we said our good-byes to Andy and Justin, who were driving back to Columbus, and to my son and his wife, who were on their way to catch a late movie. Jill and I were heading home when she asked if we could see the Contemplation Garden. The Wellness Center was just down the street, and it was a lovely evening, the sun beginning its final decent as a golden orb amid purple clouds and pink sky. What the heck, I always indulge my wife’s wishes whenever possible.

We turned into the driveway of the NCWC, and headed to the back of the almost empty parking lot. A single car, a newer Buick sedan, was parked at the rear edge of the lot, near the northern path that led to the garden. We gave it plenty of space, and parked close to the southern path. The lilacs had faded, but the roses were in full bloom, deliciously scenting the warm evening air as Jill and I strolled into the garden, and wound our way along the path that led to the gazebo near the center.

We were smiling and holding hands, and contemplating using the gazebo for the same purpose that Herm Butterfield had reportedly used it for on numerous occasions, when we caught sight of an elderly woman in the distance. She was bending over a bush full of white rose blooms, cradling a large flower, and deeply inhaling its scent. She sensed our approach, stood up, and gave a very warm, welcoming smile. We walked over and introduced ourselves.

Her name was Elizabeth Sanders, and was a strikingly handsome woman, with a certain grace to her movements. I told her that I thought she looked familiar, but couldn’t quite place her. She asked if I had been at Herman’s funeral, which I had, and then it hit me. She had been among the group of Herman’s former mistresses. She saw the spark of recognition in my eyes, and smiled, slowly nodding her head.

“Yes,” she said, “I was one of Herman’s girls. Long before I was married, of course. He was a widower at the time.” She bent again toward the rose bush, cradling the huge white flower in her slender fingers. “This one was my rose bush.” Jill and I exchanged questioning glances, and she graciously elaborated. “Herman planted a rose bush for each of ‘his girls’, as he referred to us.” I looked around toward the dozens of rosebushes that covered the garden, trying to quickly do the math. Elizabeth noted my gaze, and gave a soft laugh. “Yes, I’m afraid it was a rather large club.”

We sat together in the gazebo, where she shared her story with us, and I explained my own involvement with the late doctor. After she left Butterfield’s employ, she married a young doctor and had relocated to Chicago, where she had raised a family and had a very wonderful life. Her children were all grown, and her beloved husband had passed away several years ago. She was in town, enjoying an extended visit with her sister, when she read of Dr. Butterfield’s demise. Like dozens of other members of her sorority, she had gone to the funeral to say goodbye to her dear friend, Herman.

During the course of our conversation, I had noticed a large diamond ring, glittering on the finger of her right hand. She wore a smaller engagement ring and wedding band set on her left ring finger. I searched for a tactful opening to question her about the ring, but tact has never been my strong suit. I’m a real estate appraiser, and we spend all day prying into other people’s business. Finally, I took the opportunity of a slight lull in the conversation, and asked her about it. “That’s a beautiful ring, Elizabeth,” I observed with a smile. “That wasn’t by chance, a gift from Herman was it?” I felt the sharp kick against my left ankle from Jill’s size seven sandal, and ignored the daggers from her gaze.

Ever gracious, Elizabeth held out her hand and gazed wistfully at the ring. Sighing with a slight smile on her lips, she told us that the ring had been an anniversary present from her husband, David. She was still smiling at me as she raised her head to meet my gaze. “It was never about money, or gifts, or that sort of thing with Herman,” she explained. “He was a very kind and considerate man.” She blushed slightly as she continued, “Herman was also the most extraordinary lover that I’ve ever had.” She seemed to shudder in a pleasant sort of way as she made that last statement.

We walked Elizabeth back to her car, and wished her well as Jill and I strolled together across the parking lot toward our Lincoln. Jill quietly told me that my question about the ring had been totally inappropriate, then I explained about Todd and Jack’s concern about the missing diamonds. She forgave me on the ride home. It seemed that she was always forgiving me for one thing or another. That’s another reason that she’s a keeper.

That evening, I had a thought. Herman had planted a rose bush for each of his mistresses. Maybe Dan Bernstein was on the right track when he dug up the lilac bush. Maybe he just had the wrong plant. The next morning, I telephoned Todd Jackson.

Todd explained to me that when they had examined the lilac that Bernstein and his son had dug up, they also examined a few other lilacs, as well as a few of the rose bushes. There was nothing buried in the Contemplation Garden other than Herm Butterfield’s fond memories. We agreed to meet for lunch the next day, where I would provide him with all of the reports, along with a summary sheet of values, which was something that I had put together for my own benefit, but thought might be of use to Todd as well.

As Todd, Ryan and I were walking out of the restaurant the next day, we bumped into Elizabeth Sanders and her sister, as they were waiting in the foyer for their table. I made introductions all around and Elizabeth’s eyes brightened when I introduced Todd as the lawyer for Herman’s estate. She took Todd and I aside.

“I know it might sound strange to you,” she asked with obvious embarrassment, “but I was wondering if it would be possible to dig up my rosebush, to take with me back to Chicago? I’ll have it replaced, of course,” she added. “Either the one at the clinic or the one he planted at his house would be fine with me.” Todd took her telephone number and promised to ask Jack Butterfield about her request. I vaguely recalled having to appraise Herm’s personal residence several decades ago, when the clinic was still a relatively small enterprise. I remembered the extensive rose garden in back of the house. Butterfield had referred to it as his contemplation garden.

After she left, I asked Todd about Herman’s house. He had kept an apartment at the clinic for the past twenty years or so, and I had forgotten all about the stately old Victorian home that sat on a separate, heavily wooded parcel next door to the Wellness Center. We hadn’t appraised the property as part of Herman’s estate.

“The house is owned in the name of a family trust,” Todd explained. “It passed to Jack at the time of Herman’s death without having to go through probate. Jack’s planning a massive renovation of the place. In fact, I believe he’s meeting with a group of architects and contractors at the house right now.” I sent Ryan back to the office in my vehicle and squeezed into Todd’s Porsche as we raced over to the house.
We arrived at the house as Jack was standing outside, bidding farewell to the architect. He looked crestfallen. The property had been barely maintained over the past two decades and the experts he had just met with had been ballparking cost estimates for the renovations that he wanted. Planting areas were choked with weeds, paint was peeling, and the house looked like no one had touched it for a long time. “Do you know that the paint job for just the exterior of the house is going to cost more than Dad paid for the entire house and all of this land back in the ‘50’s?” he asked. Doctors, even those facing substantial inheritances, hate to spend money. I asked him about the rose garden. “Yes,” he nodded his head, “Dad had a rose garden way out back, where you can’t see it from the house. He called it his original meditation garden.”

We hurried around the back of the house, explaining the reason for our visit as we walked. There was a large detached garage structure out back, with a shed addition where we found a set of garden tools, all lovingly preserved, along with pots, gloves, wheelbarrows, and a box of small metal signs, often used in Victorian gardens to identify plant species. With tools in hand, we set off down the overgrown path to what was left of the rose garden. Nature was slowly working to completely conceal all of Herman Butterfield’s gardening efforts. Weeds were plentiful, and small maple trees grew everywhere.

We could still identify most of the rosebushes. They all had a little metal sign in front of them, although the signs did not indicate the species of each bush. Instead, each sign simply had a girl’s first name, hand painted in a flowing black script. I saw two or three that were labeled “Elizabeth,” but only one of them had white flowers. I sunk my spade into the ground around the base of the bush, and continued around until I had an adequate root ball available. I used the shovel to pry the rosebush from the ground, and laid it carefully on its side. Then I used a spud bar to scrape away chunks of dirt from the root ball. As I reached the center of the roots, I heard the tinkling noise of metal striking glass. I reached my gloved hand into the root system, retrieved an old baby food jar, with a black cloth stuffed inside, and handed it to Jack.

Jack’s hands trembled as he opened the jar. He pulled out a small piece of black velvet, carefully unfolding it in the palm of his hand. Resting in the middle of the cloth were five very large cut diamonds that sparkled in the sunlight, and took our breath away.

Everyone grabbed a shovel. Rose bushes were quickly unearthed and more and more baby food jars were revealed. Several hours later, with three dozen or so jars resting in a pile, we paused from our frenzied search. I took the opportunity to get a pot from the shed, filled it with dirt, and planted the white rosebush in it, adding the sign that said “Elizabeth” to the dirt. I would make sure that she got it before she returned home. Jack went to the house and poured us a pitcher of water, and brought out three glasses. It’s supposed to be bad luck to make a toast with water, but we were feeling immune from bad luck at the moment, and toasted our success.

I typically dress casually in the summer, usually chinos and a cotton shirt, but I was very dirty and sweaty after our excavation project. Todd was wearing a very nice suit, with the jacket removed, and his expensive tie loose around his neck. Jack looked at him and laughed. “You’re going to need a new suit, Todd,” he observed correctly, and tossed him one of the baby food jars. “Probably new shoes, too,” he added, tossing him another. He turned to me. “Steve, Dad always told me that I’d never regret working with the most experienced professionals. He advised me to ‘stick with the old pros.’ He always trusted his group of advisers to come up with the best solutions to whatever problems he faced. I see now that the trust was well founded. I can’t thank you enough.” There were tears in his eyes as he handed me two of the jars.

We put off digging up the rest of the roses until the weekend. The jars had remained safe where they were for many long years, and we had no doubt that they would be waiting for us to return on Saturday. As I rode back to the office with Todd, I recalled the conversation that I had with Herm Butterfield in 1968, after he had planted the Contemplation Garden at the Wellness Center. I told Todd the story as we drove. Herman read my appraisal report and noted correctly that it did not include any additional value for the garden. He demanded an explanation.

“Doctor Butterfield,” I told him, “gardens at medical facilities add little or no value to the property. I have data that basically supports that position. Of course, I can’t find any comparable properties that have a garden as extensive as yours. But from my experience, as well as the opinions of more experienced colleagues that I have consulted with, gardens just aren’t worth much. I’ve learned to trust the old pros in these situations.” Sitting in the passenger seat of Todd’s car, I smiled at the thought of just how young I had been at the time, and how sure I was of myself.

Herm just shrugged, acquiescing to my professional opinion. What else could he do? I was the professional in that case, and it was my opinion that carried the weight. Then he cocked his head and gave me a crooked smile. “Mr. Larson, you’re going to be surprised to find out just how much my garden is worth.” OK, now I finally get what he meant. Todd was laughing at my story as I extracted myself from his car.

“See you on Saturday,” he said as I closed the door and watched him drive off. I guess the old pros have some room for a little new blood. I waved goodbye as I stuffed my baby food jars in my pocket, and headed for home.


Note to readers: The Old Pros is a work of fiction. Names, characters, places, and incidents either are the product of the author’s imagination or are used fictitiously. Any similarity of the characters to persons alive or dead, events, or locales is purely coincidental, and not intended.