artdiamondblog.com – Page 396 – Art Diamond's web log

Pollution from Refinery Producing “Earth-Friendly Fuel”

“Nelson Brooke, the executive director of Black Warrior Riverkeeper, walked along an area of the river near Moundville, Ala.” Source of the caption and photo: online version of the NYT article quoted and cited below.

(p. A12) MOUNDVILLE, Ala. — After residents of the Riverbend Farms subdivision noticed that an oily, fetid substance had begun fouling the Black Warrior River, which runs through their backyards, Mark Storey, a retired petroleum plant worker, hopped into his boat to follow it upstream to its source.
It turned out to be an old chemical factory that had been converted into Alabama’s first biodiesel plant, a refinery that intended to turn soybean oil into earth-friendly fuel.
“I’m all for the plant,” Mr. Storey said. “But I was really amazed that a plant like that would produce anything that could get into the river without taking the necessary precautions.”
But the oily sheen on the water returned again and again, and a laboratory analysis of a sample taken in March 2007 revealed that the ribbon of oil and grease being released by the plant — it resembled Italian salad dressing — was 450 times higher than permit levels typically allow, and that it had drifted at least two miles downstream.
The spills, at the Alabama Biodiesel Corporation plant outside this city about 17 miles from Tuscaloosa, are similar to others that have come from biofuel plants in the Midwest. The discharges, which can be hazardous to birds and fish, have many people scratching their heads over the seeming incongruity of pollution from an industry that sells products with the promise of blue skies and clear streams.
. . .
“They’re environmental Jimmy Swaggarts, in my opinion,” said Representative Brian P. Bilbray, Republican of California, who spoke out against the $18 billion energy package recently passed by Congress that provides tax credits for biofuels.

For the full story, see:
BRENDA GOODMAN. “Pollution Is Called a Byproduct of a ‘Clean’ Fuel.” The New York Times (Tues., March 11, 2008): A12.
(Note: ellipses added.)
(Note: At one point, the online version of the article, as quoted above, was very slightly different (and clearer) than the print version.)
“Oil and grease from a biodiesel plant had been released.” Source of the caption and photo: online version of the NYT article quoted and cited above.

Robust Dialogue Fosters Creativity and Innovation

Omaha culture puts a huge emphasis on surface politeness. (When I first arrived here, I was sometimes thought to be from New York, a thought that I took as a complement, although that was not how it was intended.)
Bossidy and Charan emphasize that harmony is an over-rated virtue–that what they call “robust dialogue” is important for getting things done.

(p. 102) You cannot have an execution culture without robust dialogue—one that brings reality to the surface through openness, candor, and informality. Robust dialogue makes an organization effective in gathering information, understanding the information, and reshaping it to produce decisions. It fosters creativity—most innovations and inventions are incubated through robust dialogue. Ultimately, it creates more competitive advantage and shareholder value.
. . .
(p. 103) . . ., harmony—sought by many leaders who wish to offend no one—can be the enemy of truth.

Source:
Bossidy, Larry, Ram Charan, and Charles Burck. Execution: The Discipline of Getting Things Done. New York: Crown Business, 2002.
(Note: ellipses added.)

Private Athenaeum Libraries Where Members Are “Proprietors”

“TRADITION; Redwood Library and Athenaeum, Newport, R.I., dates back to 1747.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. D1) A GROUP of first-time visitors to the Providence Athenaeum climbed the steep stones steps to the imposing front door. One pried open the door tentatively, peered inside and exclaimed, “Oh, this is what a library is supposed to look like!”
This scene was observed by Alison Maxell, executive director of the athenaeum, who said that time and again, she has seen this same reaction: curiosity followed by wonderment.
. . .
(p. D4) THE New England athenaeums I visited on a recent trip maintain not only active memberships, but also some peculiar terminology. Members are commonly called proprietors; some athenaeums distinguish share-holding proprietors from a second tier of members, called subscribers. At the Portsmouth Athenaeum, the director is called the keeper.
Many athenaeums maintain lists of rules that spell out consequences for offenses like writing in books. Some prohibit pens and provide pencils for notation, as well as cotton gloves for handling aged materials. Large or old books often must be rested on wedge-shaped foam cradles to protect brittle spines.
Surprisingly, the Boston Athenaeum permits dogs — those that behave, a staff member was quick to add.
These athenaeums also provide, in those areas where talking aloud is encouraged, lively opportunities for exchanging ideas with other devotees of literature, arts and sciences.
“In addition to having access to our book stock, members find intellectual stimulation in our exhibitions and by being part of discussion groups,” said Richard Wendorf, director and librarian of the Boston Athenaeum and the editor of “America’s Membership Libraries” (Oak Knoll Press, 2007), which details histories of 16 of the largest membership libraries.

For the full story, see:
ROGER MUMMERT. “Where Greek Ideals Meet New England Charm.” The New York Times (Fri., March 7, 2008): D1 & D4-D5.
(Note: ellipsis added.)

“While roaming through stacks of the Boston Athenaeum, one encounters books from completely different eras, making for random discoveries.” Source of caption and photo: online version of the NYT article quoted and cited above.

Resveratrol May Extend Life, Even at Lower Doses

(p. A1) Red wine may be much more potent than was thought in extending human lifespan, researchers say in a new report that is likely to give impetus to the rapidly growing search for longevity drugs.

The study is based on dosing mice with resveratrol, an ingredient of some red wines. Some scientists are already taking resveratrol in capsule form, but others believe it is far too early to take the drug, especially using wine as its source, until there is better data on its safety and effectiveness.
The report is part of a new wave of interest in drugs that may enhance longevity. On Monday, Sirtris, a startup founded in 2004 to develop drugs with the same effects as resveratrol, completed its sale to GlaxoSmithKline for $720 million.
. . .
(p. A16) Separately from Sirtris’s investigations, a research team led by Tomas A. Prolla and Richard Weindruch, of the University of Wisconsin, reports in the journal PLoS One on Wednesday that resveratrol may be effective in mice and people in much lower doses than previously thought necessary. In earlier studies, like Dr. Auwerx’s of mice on treadmills, the animals were fed such large amounts of resveratrol that to gain equivalent dosages people would have to drink more than 100 bottles of red wine a day.
The Wisconsin scientists used a dose on mice equivalent to just 35 bottles a day. But red wine contains many other resveratrol-like compounds that may also be beneficial. Taking these into account, as well as mice’s higher metabolic rate, a mere four, five-ounce glasses of wine “starts getting close” to the amount of resveratrol they found effective, Dr. Weindruch said.
Resveratrol can also be obtained in the form of capsules marketed by several companies. Those made by one company, Longevinex, include extracts of red wine and of a Chinese plant called giant knotweed. The Wisconsin researchers conclude that resveratrol can mimic many of the effects of a caloric-restricted diet “at doses that can readily be achieved in humans.”

For the full story, see:
NICHOLAS WADE. “New Hints Seen That Red Wine May Slow Aging.” The New York Times (Weds., June 4, 2008): A1 & A16.
(Note: ellipsis added.)

Reducing the Cost of Hotels: Prefab Rooms from China

“The Travelodge chain in Britain is building two hotels from stackable metal containers imported from China. One of the hotels, in Uxbridge in West London, is shown under construction at right and in a rendering at left.” Source of the caption and photo: online version of the NYT article quoted and cited below.

(p. 23) TRAVELODGE, one of the largest budget hotel chains in Britain, is a company in a hurry.
. . .
Once the company finds a location, it turns to a construction partner with equally aggressive plans: Verbus Systems, a London-based company that builds rooms in metal containers in factories near Shenzhen, China, and delivers them ready to be stacked into buildings up to 16 stories tall.
Verbus Systems’ commercial director, Paul Rollett, said his company “can build a 300-room hotel anywhere on the planet in 20 weeks.”
. . .
When they arrive at Heathrow, the containers will be hoisted into place by crane. The containers, which are as large as 12 by 47 feet, will support one another just as they do when they are crossing the ocean by ship, Mr. Rollett said. No additional structure is necessary.
. . .
DON CARLSON, the editor and publisher of Automated Builder, a trade magazine based in Ventura, Calif., said that in hotels, “modular is definitely the wave of the future.” Modular buildings, he said, are stronger, and more soundproof, because stacking units — each a fully enclosed room — “gives you double walls, double floors, double everything.”
Mr. Rollett agreed, saying that with the steel shipping container approach, “You could have a party in your room, and people in the next room wouldn’t hear a thing.”
. . .
He is working with his British clients, which, he said, include a Travelodge competitor, Premier Inn, to make the best possible use of the assembly-line method. “We’re increasing the degree of modularity,” he said, noting that the latest units come with fully fitted bathrooms and “even the paint on the walls.”
The only thing they don’t have, he said, “is the girl to put a chocolate on your pillow.”

For the full article, see:
FRED A. BERNSTEIN. “CHECKING IN; Arriving in London: Hotels Made in China.” The New York Times, SundayBusiness Section (Sun., May 11, 2008): 23.
(Note: ellipses added.)

“The Nature of Freedom of Choice”

Former Senator George McGovern was the Democratic candidate for president in 1972. In the commentary below, he defends our freedom of choice:

(p. A15) Economic paternalism takes its newest form with the campaign against short-term small loans, commonly known as “payday lending.”
With payday lending, people in need of immediate money can borrow against their future paychecks, allowing emergency purchases or bill payments they could not otherwise make. The service comes at the cost of a significant fee — usually $15 for every $100 borrowed for two weeks. But the cost seems reasonable when all your other options, such as bounced checks or skipped credit-card payments, are obviously more expensive and play havoc with your credit rating.
Anguished at the fact that payday lending isn’t perfect, some people would outlaw the service entirely, or cap fees at such low levels that no lender will provide the service. Anyone who’s familiar with the law of unintended consequences should be able to guess what happens next.
Researchers from the Federal Reserve Bank of New York went one step further and laid the data out: Payday lending bans simply push low-income borrowers into less pleasant options, including increased rates of bankruptcy. Net result: After a lending ban, the consumer has the same amount of debt but fewer ways to manage it.
Since leaving office I’ve written about public policy from a new perspective: outside looking in. I’ve come to realize that protecting freedom of choice in our everyday lives is essential to maintaining a healthy civil society.
. . .
The nature of freedom of choice is that some people will misuse their responsibility and hurt themselves in the process. We should do our best to educate them, but without diminishing choice for everyone else.

For the full commentary, see:
GEORGE MCGOVERN. “Freedom Means Responsibility.” The Wall Street Journal (Fri., March 7, 2008): A15.
(Note: ellipsis added.)

Price Ceilings Also Hurt Those Who Mow Lawns

“Arjun Murti at Goldman Sachs studied the 1970s’ oil spikes. One had drivers lined up at a gas station in San Jose, Calif., in 1974.” Source of caption and photo: online version of the NYT article cited below.

The best part of the article below was the photo above of a gas line caused by the government’s imposing price ceilings on the price of gas. I’ve seen other photos of gas lines, but this is the first one I remember with someone waiting to fill up a lawn mower.

For the full story, see:
LOUISE STORY. “An Oracle of Oil Predicts $200-a-Barrel Crude.” The New York Times (Weds., May 21, 2008): C1 & C4.

In Many Capitalist Companies “People Think They’re Involved in Socialism”

Empirical comparisons between capitalism and socialism are in some ways unfair to capitalism, because many capitalism managers act as though they believed in socialist ideas. The difference in productivity and economic growth would be even greater, if capitalist managers consistently acted as though they believed in capitalism. Consider the following, from a portion of Execution written by Larry Bossidy:

(p. 73) Larry: When I see companies that don’t execute, the chances are that they don’t measure, don’t reward, and don’t promote people who know how to get things done. Salary increases in terms of percentage are too close between top performers and those who are not. There’s not enough differentiation in bonus, or in stock options, or in stock grants. Leaders need the confidence to explain to a direct report why he got a lower than expected reward.
A good leader ensures that the organization makes these distinctions and that they become a way of life, down throughout the organization. Otherwise people think they’re involved in socialism. That isn’t what you want when you strive for a culture of execution. You have to make it clear to everybody that rewards and respect are based on performance.

Source:
Bossidy, Larry, Ram Charan, and Charles Burck. Execution: The Discipline of Getting Things Done. New York: Crown Business, 2002.
(Note: in the book, the quotation is presented as being Bossidy’s.)

Government Fails to Elevate

“Charles Sterrazza, left, and Matthew Benzinger, both in hard hats, worked on an escalator under the watchful eyes of passengers.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A18) New York City Transit has spent close to $1 billion to install more than 200 new elevators and escalators in the subway system since the early 1990s, and it plans to spend almost that much again for dozens more machines through the end of the next decade. It is an investment of historic dimensions, aimed at better serving millions of riders and opening more of the subway to the disabled.
. . .
These are the results:
¶One of every six elevators and escalators in the subway system was out of service for more than a month last year, according to the transit agency’s data.
¶The 169 escalators in the subway averaged 68 breakdowns or repair calls each last year, with the worst machines logging more than double that number. And some of the least reliable escalators in the system are also some of the newest, accumulating thousands of hours out of service for what officials described as a litany of mechanical flaws.
¶Two-thirds of the subway elevators — many of which travel all of 15 feet — had at least one breakdown last year in which passengers were trapped inside.
. . .
. . . the cost of all this goes beyond the hefty capital investment and the roughly $25 million spent each year on maintenance and repair. It can be calculated in terms of people delayed on their way to work, people injured in accidents, people forced to alter their travel routines. And for the disabled, it means that many areas of the subway system still cannot be reliably navigated.

For the full story, see:
WILLIAM NEUMAN. “$1 Billion Later, Subway Elevators Still Fail.” The New York Times (Mon., May 19, 2008): A1 & A18-A19.
(Note: ellipses added.)

Source of map graphic: online version of the NYT article quoted and cited above.

Optimal Size of a Firm Depends on Trial and Error and Changing Circumstances

Rosenberg and Birdzell give an uncommon reason for economies of scale. This illustrated that the common list of reasons is not written in stone. As trial and error yields new ways of organizing business, the optimal size firm will shift back and forth.

(p. 157) The increase in both size and complexity of ironworks that followed throughout the nineteenth century was motivated by a desire to achieve economies in the use of fuel. As to size, within the practical limits of construction, large furnaces lose less heat by radiation than small furnaces and so are more fuel-efficient.

Source:
Rosenberg, Nathan, and L.E. Birdzell, Jr. How the West Grew Rich: The Economic Transformation of the Industrial World. New York: Basic Books, 1986.