by Ed Nelson
“Rick, now that your movie has fallen through, what are your intentions.”
That was a good start. It appeared as if my choices might count.
“I’ve considered doubling up on my studies the first half of next year and try to complete the eleventh and twelfth grades.”
“Mum and I wondered about that, and after that?”
“That’s where I’m lost. My finances are such that I don’t need to do anything. Now I have to figure out what I want to do. “
“It’s amazing Rick, so many people go through life being pushed by events, never having to make real decisions. They dream about your situation, not realizing that it has its own set of problems.”
“I know that I want a useful life, not be like Tommy Manville.”
“I don’t think you have to worry about that Rick. Now what about college, have you given any thought as what you want to major in?”
“I haven’t given any real thought about going to college. Most people get a degree so they can get a job.”
“You will need the knowledge not the degree.”
‘I’ve read that college teaches you how to learn, I think I already know that.”
“Yes you do, but depending on what direction you want to go the information gained lets you head in the right directions. I’m talking about a degree in the sciences not a general liberal arts degree.”
“It would definitely be a science degree, preferably engineering of some sort.”
“What sort?”
“Electrical or mechanical,”
“Why not both?”
“Uh.”
Changing tactics Dad asked, “Where would you go for a double engineering degree?”
“I don’t know, I know the names of MIT, Stanford, Georgia Tech, Princeton and Purdue. Which is the best for me, I have no idea. There might be others that I don’t know about.”
“There is the Imperial College of London. It has a good engineering reputation. Studying in England would please your Mum, and maybe even your Godmum.”
“That’s food for thought.”
About that time we arrived at the office so that conversation ended. Of course the mice got busier than ever.
The first meeting we had was attended by Roberta Grimes, Sam Wingate, Dad and I. We were the newly created compensation committee. Frankly I had dodged several bullets recently with jobs and increases given on the spur of the moment.
Newly created committee was an understatement, after talking with Dad last night I had to make several calls to form the group. I was hoping he would call for me, but I knew it was part of my learning experience.
Mr. Wingate our Corporate Council had done the needed investigation as to where we should be. He had a presentation on a flip chart that looked at the organization from the top down and the bottom up. He also had comparisons for similar jobs in other companies and industries.
It quickly became apparent that the entertainment industry pay scales were toxic to the rest of the organization. They were different worlds. We could have very few if any employees working in both. Paying prevailing rates in entertainment would destroy the profit margins in the other operations.
Once that point was driven home it was easy to come up with proper pay in each business segment. I had no problems with any of it until they started talking about what my pay should be.
I like my toys, I work hard, but no sixteen year old is worth one and a half million dollars a year!”
Pay rates from public companies with similar positions was presented until I finally yielded. My arguments against paying me so much took us an hour over on the schedule. It was lunch time.
Lunch was brought in to save time. While we ate I brought up my concern about the movie workers who were depending on the surfing movie and now would have to scramble for a job.
Dad aske, “Do you have a plan?”
“I would like to make a movie/television production on what is going on to make the containerized shipping business a reality. That includes container manufacturing, shipbuilding, port conversions, railroad and truck line interfaces and setting up a network of brokers to use it.”
“The way I see it several things will be accomplished, a chance to make money off the film, provide employment to the surfing movie crew, give Jackson Enterprises good publicity, and most important of all make the world aware of containerized shipping and its possibilities.”
Of all the responses to my statement Mr. Wingate surprised me the most.
“Rick, that is one of the most well thought out and succinctly put plans I have heard in a long time.”
“Thank you.”
This is what I had been thinking about last night.
“Bring it up as new business when we have the official board meeting and we will approve.”
This was from Dad.
After lunch the first group we met with was Jackson Personal Products. This was the hairdryer and the new curling iron patent that we had purchased. Don Pearson presented his charts, graphs, and spread sheets with projections for the next five years. He showed us his plans to arrive at sales agreements with companies in South America, South Africa, Australia, New Zealand and most of Europe.
Altogether he was projecting ten million dollars a year profit; based on that we agreed to his request to invest a million dollars in a R&D group for Personal Products.
I asked him to let me know when R&D was up and running, so I could visit them.
Next was Jackson Home Products which included the shower heads and flexible shower hose.
Mark Downing was there to present, but to my surprise Sharon Bronson accompanied him. Apparently they were still together. I saw how together when I noticed the diamond ring she was wearing on her ring finger. I had to play a little.
“I see you are engaged Sharon, anyone I know?”
She opened and closed her mouth before responding.
“I’m going to get you for that Rick.”
I quickly stood and shook Mark’s hand while congratulating him and Sharon. At least she didn’t hit me when I hugged her. After all the handshaking and hugging settled down we got down to business.
Things were going great to put it mildly. Profits were way up. Mark was ready to either expand the plant or buy another company for their equipment and infrastructure. This was a recent conclusion so he was just starting to price an expansion and to look at what was on the market.
Sharon brought us up to date on her venture with Anna Romanov. Things were going so well with them they were talking to some other named stars to represent them at specific home designs and the resulting parties. They were calling them ‘reveals’. That was a new way to use the word, at least to me.
When all was said and done this Division was adding three million dollars a year to the bottom line.
The Entertainment Division was presented by Susan Wallace along with Mr. Baxter. There were still residuals from Bandits of Sherwood and Sir Nickalous. For some reason they loved Sir Nickalous in India. Go figure.
The failed surfing movie had little discussion other than a close eye would be kept on legal actions. It would be sometime before my money would be released from escrow by the Judge assigned to the bankruptcy.
I brought up my thoughts on producing a show about the building of the container business. I made a point that everyone who thought they had a job on the surfing movie was to be given first right of refusal on a job with us on this project.
Susan was all excited, both about the new production and the fact that I would be ensuring employment for those who lost out.
Mr. Baxter while smiling about taking care of my fellow workers didn’t show the same degree of excitement as Susan. I uncharitably thought it was that he would not be getting a percentage off me. Instead he asked me.
“Rick, should I be soliciting scripts now?”
“I don’t think so. I’m going to spend until next summer completing high school.”
That statement sort of brought t
hings to a halt. Here we were discussing a multi-million dollar business and I was talking about completing high school!
“This timing makes it easier for me,” Mr. Baxter responded.
“I’ve been ready to retire for some time. I think the time is right.”
We all made supportive noises. I mean what do you say to that? I made a mental note to come up with some sort of retirement gift. I think he deserved more than a gold watch from me. It also made me feel bad about my earlier thoughts.
No sooner had I thought that then Mr. Baxter brought up, “Of course if Rick does any narration I will expect my commission on his salary.”
I hadn’t thought about narration, but Susan said that it was a given. I would also be appearing with various heads of state in which port expansions would be occurring and the opportunities for their countries.
Mr. Baxter then asked who in accounting that he should talk to about my remuneration and his commission. Roberta told him she would be his contact.
Hurray for human nature, so much for my uncharitable thoughts.
The most surprising item to me; was there was still money coming in from my song with the Beach Boys and Brothers.
Chapter 7
Last and longest was the session on Jackson Transportation. Present for that were Todd Goodson, Luke Harding, and Popeye. New to the group was Mr. John Churchill (very distant relation), from the Scottish Lines and Mr. Robert Wilson (Bob) from Narrow Freight. We had just bought both of those operations.
Each group gave a presentation in which they all made requests for expansion funds.
In my thinking during my daily runs and session last night I had given consideration to one thought about this Division.
“Before we address specific requests for funding I have one question for this group. Where are we going to be making money in the long term? I don’t mean maintaining constant income in a mature market. I mean long term continuing growth?”
I wish I could claim credit for that question. Actually it was in one of the economic books I had read. It said all businesses had to face that question.
Each person made a pitch that there would be a continuing need for more ships, trucks and containers. Roberta made a point that while the economy would continue to grow there would be times that it would be flat and growth income would slow down.
I sat there and listened while the group discussed how growth or at least income could continue if we weren’t building more trucks, ships or containers.
The shipping and trucking lines were continuing income. So were replacement containers. But overall a stagnant economy would cause a significant loss of income. We would have a shipyard idle, and I shuddered to think of layoffs in Pittsburg.
Of all people, Helen, Dad’s secretary brought up the fact that the people arranging shipping would continue to have income while their costs wouldn’t go up.
Popeye expanded on that with the fact he didn’t know of a world-wide brokerage firm. At most there were national companies some were in several countries but nothing truly world-wide.
That broke the conversation wide open. Should we start a new brokerage or buy existing ones to set up a new network?
Again those books I had been reading came in handy.
“Why don’t we buy an existing high-end brokerage and then set up correspondents with brokerages in each country we have or will have an interest in? As we see how each country progresses we can then buy out the brokerages where we can. That will get us in the market without a huge initial outlay and position us for the future.”
“It’s sort of like we are building razors, but the real money is in the razor blades.”
After that statement the room became very quiet. The silence continued until Dad broke it.
“Rick, you just reminded us whose ideas got this business going. We had fallen back into thinking of you as a teenager at the table. Well you are a teenager, but you also own this table.”
There were some head nods, but no further conversation on the subject. It took a few minutes but it was decided that Dad would detail a person to get up to speed on the brokerage business. Their job would to be to find someone who knew the business internationally. We could go from there.
The last discussion was money. There was a ton coming in and a ton going out. All that would be left this year was a mere ninety-three million dollars. Maybe a million and half dollars wasn’t out of line.
The very last item on the agenda was an official board meeting. Mum joined us and we voted on making the decisions of the day official. We would start a production unit to make a movie about the container business. Mark would be supported in growing his Division. Money would be invested in expanding production in Jackson Transportation, but not unlimited.
We would open an international brokerage firm.
Also I wouldn’t let Eddie juggle pool balls in the house. That was from Mum. Helen actually started to write it in the minutes until she heard the laughter.
Afterwards we went out as a group to dinner. It was fun getting to know the people better that were actually running my business. Mr. Wingate turned out to be a really funny guy, not the dry stuffed shirt I thought he was.
He and I also had a nice side conversation about idea people vs. doers. It was a variation of what I had learned in my economics books. Those who had the original ideas could take them so far.
The successful ones were those who knew when to turn over the leadership to those with the skill set of running a larger business. Even then there were those who could run a business at a certain level, like under ten million a year, ten to fifty million a year and then true big business.
At each step there was a different level of engagement within the organization. Many a good idea had failed the first time through because the idea man didn’t have the business acumen required for that level. If it was truly a good idea some other person or group would pick it up.
Then were the ideas whose time had come and gone. How would you like to invent the perfect buggy whip the day the first model T came off the line?
That was the only serious discussion of the evening. I heard Dad and Popeye talking about the Order of the Purple Porpoise, both putting it in their bucket list. I was glad to see that Dad wasn’t drinking tonight. The alcoholism in our family was a real concern.
After my morning workout and breakfast I got ready to accompany Mary for her show and tell. At the table she drilled into me how I was to relate Misty’s heroism in rescuing her from those thugs. Her words not mine.
We were driven to the school in Mary’s limo, well not really her limo, just the one she usually rode in. I knew it was the one she usually rode in because she had drawings pinned to the back of the seats in front of her.
I was flattered by a small movie poster from Bandits. Well it was one from one scene in which Mary appeared, so maybe it wasn’t about me.
I didn’t know that we had two at the house and others on call as needed. The security firm provided the drivers.
As we rode over Mary continued prepping me for the event. Her teacher Mrs. Boynton couldn’t be called by her first name Connie. She was new at the school, just having come from Miss Nestor’s. Her husband Philip was a dreamboat.
I was to remember that even though Patti’s grandfather owned a newspaper chain larger than ours and their house was bigger that she didn’t have her own pony, so she had no right to be nasty.
Female logic is beyond me, five year old female logic is beyond Einstein.
Mrs. Boynton was nice, but I wouldn’t want to be on the end of her sharp tongue. The kids took my relating Misty’s heroics as hoped for by Mary.
Apparently Mary had told the class a few things about me because the boys all pretended to be gunfighters or swordsmen. The girls just sat there with big eyes.
I never even figured out who the dreaded Patti was, so it was a nonissue.
Rather than have the limo driver make an extra trip I waited in the car until class was over then
went home. Planning ahead I had my English literature book along.
I was rereading the story about the puritan lady who had to wear a badge of shame on her dress. I liked the fact she embraced it rather than let it shame her. I had first read it several years previously, but was not taking chances with my upcoming exams.
Chapter 8
Saturday and Sunday were golf days at Calabasas. I called ahead for tee times and arranged for John Jacobs to be my caddy. We were comfortable together and he really knew the course.
I was allowed to play by myself, so I had time to work on shots out of the rough and sand traps. I normally avoided trouble, but it wouldn’t hurt to know how to make a long shot while your club was impeded by a tree branch.
All in all I had a good two days. It even helped my tan for the movie I wasn’t going to be in.
My morning routine was getting more complex all the time. I was doing pushups, chin-ups, sit-ups, then running and now riding. I limited it all to two and half hours finishing by eight every morning. That still had me up at 5:30 which had me in bed by ten or eleven every night.
A quick shower and shave had me down to breakfast with the rest of the family. Popeye and Aunt Sybil left for London early this morning. Mum told me she had several houses at the beach to look at. We could also stop at the dry cleaners on the way there.
She also reminded me about Fridays fund raiser for Deputy Burrill’s sheriff’s campaign. Then I got a new assignment. Saturday there was to be a charity fund raiser at the house. The whole family was expected to be there in costume.
“Mum I’m too old to wear one of those cheesy Halloween costumes from Murphy’s Five & Dime.”
“I agree Dear, I’m certain you can arrange something from the studio wardrobe department.”
“Oh, I will just wear my own cowboy gear.”
“I knew you would think of something.”
Why did that come across as sarcastic?
“Mary, are you going to be a Princess or a Fairy?”
