Entrepreneurship – Page 39 – artdiamondblog.com

Edgar Speyer Was Entrepreneur Who Created Innovative London Tube Infrastructure

(p. A13) Before World War I, Edgar Speyer headed the London branch of the German-based Speyer banking conglomerate. Among other things, he was a great lover of music. His mansion on Grosvenor Square was a cynosure for composers– Debussy, Elgar, Richard Strauss, Schoenberg–all of whom availed themselves of the luxuries of the house, playing or conducting their work in private performances. “We live even more elegantly than kings and emperors,” Grieg wrote, referring to the mansion’s suite of rooms for visitors.
Not all of Edgar Speyer’s interests were so ethereal. The British Speyer branch was a key source of railroad finance, and Edgar himself was best known for creating–in partnership with Charles Yerkes, a Chicago entrepreneur–the London tube system, with its innovative “deep-tube” design. Edgar persisted in expanding the system despite its precarious finances and for many years functioned as its chief executive.
. . .
The Speyer bank, Mr. Liebmann tells us, had roots going back to the 14th century, at the threshold of a long surge in international commerce. New forms of paper–bills of exchange, letters of credit and much else–allowed traders to leverage up their businesses quite remarkably. Over time, houses like those of Baring, Rothschild and Speyer shifted out of their traditional-goods trading for the higher volumes and higher fees available from trading just the paper claims. The Speyers were known as the leading investment and trading house in Frankfurt, Germany, usually ranked just behind the Rothschilds in the Jewish financial imperium.

For the full review, see:

CHARLES R. MORRIS. “BOOKSHELF; Second Only to the Rothschilds; Speyer banks funded the London underground, placed the first Union Civil War bonds in Europe and built the Madeira-Mamore railroad.” The Wall Street Journal (Tues., Jan. 26, 2016): A11.
(Note: ellipsis added.)
(Note: the online version of the review has the date Jan. 25, 2016.)

The book under review, is:
Liebmann, George W. The Fall of the House of Speyer: The Story of a Banking Dynasty. London: I.B. Tauris & Co., 2015.

German Car Makers in No Rush to Catch Up to Tesla

(p. A7) When Elon Musk rolled out the new Tesla Model X at the end of September [2015], some grumbled that the Silicon Valley car maker’s all-electric luxury crossover was coming to market two years too late. It depends on who you ask. The Big Three German auto makers only wish they could catch the tail of Mr. Musk’s rocket.
I’m not talking about units sold, though Tesla’s target of 50,000 cars in 2015 is a respectable chunk of the global luxury-sedan market. But Tesla has taken more hide off German prestige and sense of technical primacy. I mean, the Model X was just rubbing their noses in it with those “falcon” doors, right? In executive interviews at the Frankfurt Auto Show any praise of Tesla was guaranteed to land on the table like a paternity suit.
. . .
I wonder if any traditional auto maker whose existence does not hang in the balance can ever have enough belly for the EV long game?
Even if the Germans had market-bound EVs in mass quantities, there is the concurrent problem of charging. As the estimable John Voelcker of Green Car Reports notes, the luxury incumbents have no plans to challenge Tesla on charging availability. Tesla has hundreds of charging stations in the U.S. and Europe and plans for hundreds more–all free to owners.
. . .
I am struck by the lag time. This isn’t about profit and loss but industry leadership. The Germans are headed where Tesla already is and, taking Frankfurt as the measure, they are in no great hurry to get there.

For the full commentary, see:
Dan Neil. “RUMBLE SEAT; How Tesla Leaves its Rivals Playing Catch Up.” The Wall Street Journal (Sat., Oct. 10, 2015): D11.
(Note: ellipses, and bracketed year, added.)
(Note: the online version of the commentary has the date Oct. 8, 2015.)

Standard Oil Money Funded Homage to Oz

(p. A1) Vandals are slowly destroying the Land of Oz, a small private theme park nestled atop Beech Mountain, N.C., built on land bought years ago with money from a Standard Oil fortune. Thieves and urban explorers have carted off polka-dot mushrooms, a pair of cement lions and, most hurtfully, pieces of the golden-hued path that runs through the park.
“It’s magical,” says Vicky Conley of Morganton, N.C., who took her son to Oz last year when he was six. “People should leave it alone.”
. . .
(p. A8) In 1966, Mr. Leidy’s grandfather Page Hufty–an insurance pioneer and real-estate developer in Palm Beach, Fla.–bought land on Beech Mountain. His wife, Frances Archbold Hufty, was the granddaughter of John D. Archbold, a titan of the Gilded Age and John D. Rockefeller’s right-hand man at Standard Oil, which was dissolved by the government in 1911.
Mr. Hufty leased some of the land to other developers, who wanted a summer theme park to complement their ski resort.
The Land of Oz opened in 1970, amid much fanfare about the 70th anniversary of L. Frank Baum’s classic book. Debbie Reynolds stopped by. So did Ray Bolger, who played the Scarecrow in the 1939 movie. At least 300,000 people visited the first year, says Neva Specht, a historian and a dean at the College of Arts and Sciences at Appalachian State University.
By the second year, she says, it was one of the biggest attractions in the Southeast, and it graced the cover of “Southern Living” magazine.
. . .
But the park quickly became more of a white elephant than a Merry Old Land. Attendance dropped, as families were lured away by splashier attractions like Disney World, which opened the following year in Orlando, Fla. The developers went bankrupt, and Mr. Leidy’s grandparents eventually gained ownership.
. . .
Mr. Leidy installed fences topped with barbed wire, but thieves cut through. Security cameras didn’t seem to deter anyone either. Mr. Leidy is now hiring guards.
. . .
Mr. Leidy says he doesn’t know what lies in store over the rainbow, but thinks his grandparents would be proud.
“Until we figure out a long-term plan here,” he says, “it’s important to me to protect it.”

For the full story, see:
CHRISTINA REXRODE. “Goodbye Yellow Brick Road? Even a Wizard Can’t Save Oz.” The Wall Street Journal (Fri., Sept. 18, 2015): A1 & A8.
(Note: ellipses added.)
(Note: the online version of the story has the date Sept. 17, 2016, and has the title “Goodbye Yellow Brick Road? Even a Wizard Can’t Save Oz From Vandals.”)

Rudderless Russians Admire Stalin, Jobs, Gates and Gandhi

(p. A13) What makes Chelyabinsk compelling is its people. They are largely decent and undeniably intelligent, protective of what they have achieved, wary of the unknown, and, above all, clever and flexible at adapting to changing times. In a word, they are . . . wily men (and women) . . .
. . .
Perhaps most telling is Alexander, who lives in a village five hours from the city. He admires Mr. Putin and the system the president has built, even as he complains that corruption is rife, governance is poor, and the local economy is held back by an overbearing and rapacious state. Alexander’s criticisms mirror those of the citizens in the book who consider themselves dissidents and activists, though Alexander would never consider himself either one. “He is proud of Putin,” Ms. Garrels writes, “and between him and those who dread their country’s current course, there is an unbridgeable divide.”
This sort of internal contradiction isn’t unique to Alexander. Many of the Russians Ms. Garrels meets hold views that seem impossible to reconcile. She cites polls that show that two-thirds of ethnic Russians call themselves Orthodox believers, but many of those very same people say that they do not believe in God. At one point, the author visits a prestigious state secondary school where the students offer a curious mix of heroes: Joseph Stalin, Steve Jobs, Bill Gates and Gandhi. The search for a post-Soviet ideology has, in Chelyabinsk and across Russia, led to a strange mishmash, at once faithful and mystical, distrustful and fatalistic.

For the full review, see:
JOSHUA YAFFA. “BOOKSHELF; Russia’s Wily Men and Women; Russians hold views that seem impossible to reconcile. Students at a reputable school offer a curious mix of heroes: Stalin and Steve Jobs.” The Wall Street Journal (Mon., April 18, 2016): A13.
(Note: ellipses added.)
(Note: the online version of the review has the date April 17, 2016.)

The book under review, is:
Garrels, Anne. Putin Country: A Journey into the Real Russia. New York: Farrar, Straus and Giroux, 2016.

“Robots Take Away Subhuman Jobs”

(p. A21) Joseph F. Engelberger, a visionary engineer and entrepreneur who was at the forefront of the robotics revolution, building robots for use on assembly lines and fostering another, named Seymour, to handle chores in hospitals, died on Tuesday [December 1, 2015] in Newtown, Conn. . . .
. . .
Mr. Engelberger was a force in robotics from its early days, in the 1960s, when his company, Unimation, in Danbury, Conn., developed the Unimate, a robotic arm that would greatly accelerate industrial production lines.
. . .
Labor unions and some corporate managers resisted robotics at first, worrying, as Mr. Engelberger later put it, “that the robots can take all the jobs away.”
He disagreed with that notion.
“It’s unjustified,” he told The New York Times in 1997. “The robots take away subhuman jobs which we assign to people.”
Unimate proved to be more precise than the human hand in completing some repetitive and dangerous tasks. Automobile makers employed the arm to weld and move vehicle parts, apply adhesives to windshields and spray-paint car bodies — jobs that had posed chemical hazards to workers.

For the full obituary, see:
JEREMY PEARCE. “Joseph F. Engelberger, a Leader of the Robot Revolution, Dies at 90.” The New York Times (Thurs., DEC. 3, 2015): A33.
(Note: ellipses, and bracketed date, added.)
(Note: the online version of the obituary has the date DEC. 2, 2015, and has the title “Joseph F. Engelberger, a Leader of the Robot Revolution, Dies at 90.”)

Perfect Reliability Is Not Worth the Cost

(p. B4) Say what you will about Plain Old Telephone Service, but it worked. The functionality of POTS, as it was known, was limited to making calls, and they were expensive. But many traditional phone companies offered 99.999% reliability, which allowed for about five minutes of downtime a year.
Today’s networks are far less expensive, infinitely more capable and nowhere near as reliable as the wired-to-the-wall phone, . . .
. . .
To some extent, contemporary networks suffer from inattention. The old phone system worked so well because regulators in certain countries like the U.S. said it had to, and enough money was set aside to fund an army of technicians and engineers to oversee it. That generally isn’t the case with modern, digital networks and IT infrastructure, and companies often neglect this nuts-and-bolts technology.
. . .
Underneath it all, the economics of falling prices carry a trade-off. Consumers get more for their money in the mobile, digital era, but that often leaves margin-stretched companies with fewer resources to invest in robustness and maintenance. Reliability is as much a function of business and risk management as it is about tech.
“I don’t know if people are sweating that detail as much as they used to,” said Mr. Bayer, previously CIO of the Securities and Exchange Commission.
. . .
Former NYSE Euronext Chief Operating Officer Lawrence Leibowitz told the Journal in 2013 the public shouldn’t expect market technology to function perfectly, a goal that would be too expensive to implement even if it were technically feasible.

For the full story, see:
STEVE ROSENBUSH and STEVEN NORTON. “Network Reliability, a Relic of Business?” The Wall Street Journal (Fri., July 10, 2015): B4.
(Note: ellipses added.)
(Note: the online version of the story has the date July 9, 2015 and has the title “What We Learned From the NYSE, United Airlines Tech Outages.”)

If Rapamycin Works in Humans as in Mice, We Gain 20 Years in Good Health

“Dr. Matt Kaeberlein, a biology of aging researcher, with his dog Dobby in North Bend, Wash. He helped fund a drug study using his own money.” Source of caption: p. A12 of print version of the NYT article quoted and cited below. Source of photo: online version of the NYT article quoted and cited below.

(p. A12) But scientists who champion the study of aging’s basic biology — they call it “geroscience” — say their field has received short shrift from the biomedical establishment. And it was not lost on the University of Washington researchers that exposing dog lovers to the idea that aging could be delayed might generate popular support in addition to new data.
“Many of us in the biology of aging field feel like it is underfunded relative to the potential impact on human health this could have,” said Dr. Kaeberlein, who helped pay for the study with funds he received from the university for turning down a competing job offer. “If the average pet owner sees there’s a way to significantly delay aging in their pet, maybe it will begin to impact policy decisions.”
The idea that resources might be better spent trying to delay aging rather than to cure diseases flies in the face of most disease-related philanthropy and the Obama administration’s proposal to spend $1 billion on a “cancer moonshot.” And many scientists say it is still too unproven to merit more investment.
The National Institutes of Health has long been organized around particular diseases, including the National Cancer Institute and the National Institute of Diabetes and Digestive and Kidney Diseases. There is the National Institute on Aging, but about a third of its budget last year was directed exclusively to research on Alzheimer’s disease, and its Division of Aging Biology represents a tiny fraction of the N.I.H.’s $30 billion annual budget. That is, in part, because the field is in its infancy, said the N.I.H. director, Dr. Francis Collins.
. . .
“The squirrels in my neighborhood have a 25-year life span, but they look like rats that live two years,” said Gary Ruvkun, a pioneer in aging biology at Harvard Medical School. “If you look at what nature has selected for and allowed, it suggests that you might be able to get your hands on the various levers that change things.”
. . .
Over 1,500 dog owners applied to participate in the trial of rapamycin, which has its roots in a series of studies in mice, the first of which was published in 2009. Made by a type of soil bacterium, rapamycin has extended the life spans of yeast, flies and worms by about 25 percent.
But in what proved a fortuitous accident, the researchers who set out to test it in mice had trouble formulating it for easy consumption. As a result, the mice were 20 months old — the equivalent of about 60 human years — when the trial began. That the longest-lived mice survived about 12 percent longer than the control groups was the first indication that the drug could be given later in life and still be effective.
Dr. Kaeberlein said he had since achieved similar benefits by giving 20-month-old mice the drug for only three months. (The National Institute on Aging rejected his request for funding to further test that treatment.) Younger mice, given higher doses, have lived about 25 percent longer than those not given the drug, and mice of varying ages and genetic backgrounds have been slower to develop some cancers, kidney disease, obesity and symptoms of Alzheimer’s disease. In one study, their hearts functioned better for longer.
“If you do the extrapolation for people, we’re probably talking a couple of decades, with the expectation that those years are going to be spent in relatively good health,” Dr. Kaeberlein said.
. . .
. . . what dog lovers have long considered the sad fact that their pets age about seven times as fast as they do, Dr. Kaeberlein knew, would be a boon for a study of rapamycin that would have implications for both species. An owner of two dogs himself, he was determined to scrounge up the money for the pilot phase of what he and Dr. Promislow called the Dog Aging Project.
Last month, he reported at a scientific meeting that no significant side effects had been observed in the dogs, even at the highest of three doses. And compared with the hearts of dogs in the control group, the hearts of those taking the drug pumped blood more efficiently at the end. The researchers would like to enroll 450 dogs for a more comprehensive five-year study, but do not yet have the money.
Even if the study provided positive results on all fronts, a human trial would carry risks.
Dr. Kaeberlein, for one, said they would be worth it.
“I would argue we should be willing to tolerate some level of risk if the payoff is 20 to 30 percent increase in healthy longevity,” he said. “If we don’t do anything, we know what the outcome is going to be. You’re going to get sick, and you’re going to die.”

For the full story, see:
AMY HARMON. “CHASING IMMORTALITY; Dogs Test Drug Aimed at Humans’ Biggest Killer: Age.” The New York Times (Tues., MAY 17, 2016): A1 & A12.
(Note: ellipses added.)
(Note: the online version of the story has the date MAY 16, 2016, and has the title “CHASING IMMORTALITY; Dogs Test Drug Aimed at Slowing Aging Process.”)

An academic paper that discusses the wide variability in life span of different species in the order Rodentia (which includes short-lived rats and long-lived squirrels), is:
Gorbunova, Vera, Michael J. Bozzella, and Andrei Seluanov. “Rodents for Comparative Aging Studies: From Mice to Beavers.” Age 30, no. 2-3 (June 25, 2008): 111-19.

Hidebound Banks Ride Uber, Hoping to Manage I.P.O.

(p. A1) Wall Street banks can be hidebound in their ways: insisting on suits and ties and handing out BlackBerries after everyone else has moved on to the iPhone. But if there is one thing that can push even the most conservative bank into the future, it is the prospect of business.
The latest reminder came this week when JPMorgan Chase announced that it would reimburse all of its employees for rides taken with Uber — offering access to “Uber’s expanding presence and seamless experience,” the company said in a news release.
JPMorgan made its decision long after other parts of corporate America were already hailing cars through the California start-up. But banks have recently shown a fondness for the service — with Goldman making the company part of its official travel policy in late May and Morgan Stanley putting out its own news release about its Uber use late last year.
Bank experts were quick to note that these moves come as the banks are jockeying to win a coveted spot managing Uber’s initial public offering — one that is not yet scheduled but that is assumed to be coming in the not-too-distant future. The I.P.O. for Uber, whose fund-raising so far has pegged its valuation at $50 billion, will most likely be the blockbuster I.P.O. in whatever year it takes place.

For the full story, see:
NATHANIEL POPPER. “An Uber I.P.O. Ahead, and Suddenly Bankers Are Using Uber. Coincidence?” The New York Times (Fri., JULY 10, 2015): B3.
(Note: bracketed date added.)
(Note: the online version of the story has the date JULY 9, 2015 and has the title “An Uber I.P.O. Looms, and Suddenly Bankers Are Using Uber. Coincidence?”)

How Wal-Mart Benefits Small Entrepreneurs

(p. B1) At the headquarters of Wal-Mart Stores Inc. here, dozens of its buyers held half-hour meetings earlier this month with hundreds of prospective suppliers touting products–from frozen deep-fried turkeys to toddler dirt bikes–all eager for a chance to land on the shelves of the world’s largest retailer.
Scott Bonge, a Little Rock, Ark., investor and father of three, was trying to interest Wal-Mart in his plastic shaving stencil, the GoateeSaver. With sales of shaving gear falling as more men embrace scruff and beards, Wal-Mart is looking for different shaving paraphernalia to sell.
The product “came out of my own need for something to keep my goatee looking even back in college,” Mr. Bonge told Jason Kloster, senior buyer for personal care at Wal-Mart.
Mr. Kloster then drilled down into how many American men have goatees. Without an exact answer, Mr. Bonge noted that they are popular in the South among men over 25.
“I’ve been in the category for four years and I’ve never heard of your brand,” Mr. Kloster said. “Your biggest challenge is awareness.” Mr. Kloster suggested selling the device on Walmart.com to test demand before offering it in stores.
The daylong event provides a window into the relationship between Wal-Mart and its suppliers as well as the influence retailers have both on selecting the products for their shelves and how those products appear.
These meetings serve a clear purpose for prospective suppliers–a shot at vaulting into retail’s big leagues.

For the full story, see:
SARAH NASSAUER. “Inside Wal-Mart’s ‘Shark Tank’.” The Wall Street Journal (Thurs., July 23, 2015): B1 & B7.
(Note: the online version of the story has the date July 22, 2015 and has the title “Pitching Products to Wal-Mart, in 30 Minutes.”)

Uber to Politicians: “Catch-Me-If-You-Can”

(p. B1) Last week, the home-sharing service Airbnb had more than 40,000 listings in Paris, making the French capital the company’s most popular destination for travelers looking to rent a room or an entire apartment. Paris officials applaud it for bringing innovation to the city’s hotel industry.
The ride-hailing company Uber had a much more difficult week.
Thousands of Parisian taxi drivers took to the streets to protest UberPop, the company’s low-cost service that’s similar to UberX in the United States. French politicians denounced the company for defying the country’s transport laws. And two of Uber’s top executives in France were detained by the police and accused of operating an illegal taxi business. By Friday [July 3, 2015], the company had suspended UberPop across the country.
Uber and Airbnb are similar in many ways. Both born in San Francisco, the companies are now two of the largest entrants in the so-called on-demand economy, in which services are available at the touch of a smartphone button. They are both flush with investor money — with valuations in the tens of billions of dollars — and are using the cash to expand rapidly around the world.
But the starkly different paths in France for these companies lay bare contrasting strategies as they encounter the world of global regulators. Since it began in 2009, Uber has entered city after city, in Europe and elsewhere, with a largely catch-me-if-you-can attitude. Airbnb, which offers more rooms than traditional hotel groups like Hilton and InterContinental, has instead tilted toward courting local politicians in many of its most popular markets.
So far, Uber’s approach has not significantly slowed it down. The company operates in more than 300 cities in almost 60 countries and is valued by investors at more than $40 billion.

For the full story, see:
MARK SCOTT. “The Bumps in Uber’s Fast Lane.” The New York Times (Weds., JULY 8, 2015): B1-B2.
(Note: bracketed date added.)
(Note: the online version of the story has the date JULY 7, 2015, and has the title “What Uber Can Learn From Airbnb’s Global Expansion.”)