Part X
MY LIFE STORY
My HRD Years
(1990-1995)
Launching HRD as a public company –
The 1990s was to be a significant decade in our lives.
I began a new job as CEO of a company which we
successfully launched as a public company via an Initial Public
Offering (IPO), was fired from it some three years later,
engaged in various consulting gigs for a couple of years and
signed on with my largest employment assignment for the final
five years.
All of this resulted in
three residential relocations.
Our Davis
family summer reunion was again held at The Sportsman Resort at
the Lake of the Ozarks in the summer of 1990.
Dad’s friendship with
Velda Dunn, the widow of our next door farm neighbor when we
were growing up on the farm, blossomed into wonderful
relationship. This continued the close relationship that both
mom and dad had with Velda when mom was living.
Velda and dad traveled together and socialized jointly
with friends, family and neighbors. The family gathered in Iowa
for our Iowa Davis family Christmas, although it was not the
same with mom gone.
The “girls”, with Velda’s help, prepared the usual Christmas
feasts and the Hartland Church Christmas program was its usual
annual attraction.
Our grandsons joined in singing Christmas Carols - even our
Jewish grandsons.
Velda continued to be a valued family member after dad died in
1996. Velda was
stricken with dementia/Alzheimers and was confined to memory
care in her later years.
See died November 7, 2012.
My assignment
as President of Horsehead Resources Development Company (HRD)
resulted in a relocation from our Connecticut home to eastern
Pennsylvania, ultimately, to Lake Harmony, PA a small town 25
miles north of Palmerton.
I chose to office in Palmerton, in HRD’s office which was
close to its major plant and most of its employees.
I did not want to office in the NYC HI office and to
spend considerable time commuting.
I reported to David Carpenter on all aspects of my job,
however, Bill Flaherty directed the IPO planning and
implementation.
David was in the process of relocating from a home he had built
in Palmerton to a lovely small estate in Connecticut located on
the shore of Long Island Sound.
Our second
custom home building experience and our ninth home (and
thirteenth
residence) for Karen and me -
Karen worked
with a local realtor to find our next home.
In the end she wanted to purchase a building lot in a
small resort named Split Rock in the really small village of
Lake Harmony – basically a post office and a general store.
It was on the shore of a beautiful small fresh water lake
of about one fifth of a square mile in size.
Split Rock
Resort was an old resort which catered to business men and their
families, basically from New York City and Philadelphia
metropolitan areas.
In the summers these families would live in their second homes
or rentals in Split Rock to enjoy the cooler climate of this
rural, wooded, 1500
feet of elevation, eighteen hole golf course community which had
some 100 second homes/cabins.
The business men would commute from and to their offices
on the weekends to join their families in Lake Harmony.
A new area in the resort was opened with building lots
for personal homes.
Karen found a lot that she liked and envisioned building a home
somewhat similar to what we had built in Kentucky in 1970.
The realtor Karen worked with referred us to a builder
with whom she was familiar. Karen drove me to the lot the
evening after she first saw it.
I thought that the lot had real possibilities and it was
reasonably priced.
The utilities were already in place and the wooded one acre lot
needed little preparation for construction of a house.
We met with
the builder and discussed
designing and
building a
three story, four bedroom plus office,
full finished basement recreation room and a three car
garage house on this lot.
We worked with the builder and his draftsman to design
the house we wanted.
We reached preliminary agreement on the design, estimated
cost and timing prior to purchasing the lot.
The construction industry in
Pennsylvania was slow at that time and the conventional
framed, wooden-sided house was finished in June 1991.
We had invested about $500,000 in the house and lot. We
sold the Connecticut home quickly and moved to Lake Harmony. I
had been commuting almost a year to/from Stamford and Palmerton.
The Davis family summer
reunion was again held at the Sportsman Resort in 1991.
The highlight of that reunion, was para-sailing in which
Kindra, Velda and Dad all participated.
The three of them were particularly thrilled with the
experience, especially Kindra who was a paraplegic since her
accident some thirty-one years previous.
The Lake
Harmony house was a
wonderful house with a combined kitchen, casual dining and great
room, a library, a formal dining room, a laundry room and a
master bedroom suite on the main level. The great room, the
casual dining area and part of the kitchen had an eighteen feet
high ceiling. Contiguous with the master bedroom and the casual
dining area was a “swim spa room” which contained a fiberglass
pool, some 16 feet long, 8 feet wide and three feet deep, in
which powerful jets pumped water to form a water current against
which one swims without physically changing position in the
pool. This entire
room was finished in cedar and it totally with stood our six
very active grandsons simultaneously playing/splashing in the
pool. Outside the swim spa and casual dining was a very
large cedar deck of about 2000 square feet. The laundry room
connected the living space to a three car garage.
The second level
had a wonderful office with a small outdoor deck, two
bedrooms and a sitting area on a balcony overlooking the great
room. It also had a
large unfinished storage area over the garage accessed through
one of the bedrooms.
(On one of my site visits during construction, I saw this
open unfinished space above the garage and asked the builder to
place plywood on top of the garage ceiling trusses and to
provide an access door from the contiguous bedroom on the second
floor. This provided us
great storage for seasonal items and other “stuff”, which
someone told me meant “some things under feet forever”! This was
our attic! The lower walk-out level had a very large recreation
room with a bar, a huge stone fireplace - that
incorporated the great room fireplace directly above it
and in total was some thirty feet tall, including the chimney-,
another bedroom as well as a bunk room (a large bedroom with
three bunkbeds) to sleep our six grandsons, a three-quarter bath
and a large utility/mechanical room.
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The Great Room from the Balcony |
The Great Room and Kitchen |
The house
was located on a three-quarter acre wooded lot which
bordered on the fifth hole of the golf course and was on the
cul-de-sac at the end of a short street. There were two other
houses on the street, one belonged to a full-time resident and
one to a weekend resident as well as two other than empty
building lots. We
were able to landscape the house with about a dozen pine trees
which eventually grew to twenty feet in height.
I installed a twenty feet flag pole in the front of the
house and Karen purchased a hand carved bear standing upright to
guard the front door of the house.
The local deer population was large and they frequently
came past our house looking for handouts.
We did not feed the deer but they continued looking or
handouts. We placed
two large bird feeders above the railing on the outdoor deck,
which the squirrels soon found and enjoyed raiding.
One evening when I was not home, Karen was reading in the
great room a bit before it was totally dark outside.
Karen had the door opened onto the deck with only the
screen door closed.
She looked up and there was a black bear on our deck moving
toward the bird feeders.
The bear
climbed upon the built-in-seat on the railing and proceed to
knock the bird feeders down so he could eat the seed.
I repaired the feeders and we
never experienced
another incident
with the bears at our
house, however there were frequent community bear sightings.
On another
occasion, one of our Lake Harmony acquaintances who were in
Split Rock only on weekends invited us over to see the bears
that frequented their back yard, which was fairly heavily
wooded. They had
mounted spot lights on the roof of their house to illuminate the
area in their property where the bears visited.
To further attract the bears this couple, against all
wild game rules fed the bears.
The housewife would even bake berry pies for the bears.
Fortunately, the occupants stayed inside the house to
observe the bears. To the best of my knowledge, they were never
attacked by the bears and never did I hear of the wildlife game
wardens visiting them to address this bad behavior.
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Karen’s Irish Pub Ladies Bar
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The Grandson’s Bunk Room |
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The
Library |
The Family Kitchen |
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The House from the Golf Course |
The Swim Spa
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The house
proved to be a great hit with our growing family. Each
daughter’s family lived
a short days
drive from Lake Harmony.
They particularly enjoyed the swim spa and driving the
golf cart which we had purchased to “putter around” the resort.
The outside maintenance was minimal, no grass, some mulch
spreading in the spring, wood cutting in the summer for the two
very large fireplaces, plus leaf raking and roof gutter cleaning
in the autumn. Also
of course, some
significant snow blowing/shoveling in the winter. We installed
many strings of Christmas lights on the roof each year.
We truly enjoyed the house for twelve years as it was a
wonderful home for casual living, family gatherings and
entertaining.
In 1973 cell
phones were invented by Motorola, however it took a decade to
build out the beginnings of an infrastructure
- primarily cell phone towers and software to improve the
phones and the communications - to support cell phones outside
the cities. In 1990
I acquired my first cell phone primarily because I was
frequently commuting to and from NYC and
Palmerton. I
sometimes road a bus from the Lake Harmony bus terminal to the
NYC bus terminal on
34th Street.
I could use the cell phone on portions of that drive.
My first cell phone was a clunky AT&T model.
and I used AT&T service.
The service in Palmerton was terrible, the service in New
Jersey was hit or miss but the service in NYC was quite
satisfactory. One
of the problems in those days was dropped calls when you left
the service of one cell tower and picked up service from a
different tower.
At HRD, I
focused on preparing HRD for an IPO.
Horsehead Industries hired Robert (Bob) Hoguet as our HRD
CFO at the time I was appointed President and CEO of HRD.
Bob was a NYC resident experienced in corporate finance,
whose wife was a partner in a NYC based litigation law firm.
Bob did not relocate to Palmerton.
He commuted to spend several days a week in the Palmerton
office. HRD received the nearly full-time services of an
experienced HI environmental attorney who was located in the
Palmerton office.
He was quite familiar with the history of the Palmerton site,
which had been declared a U.S. Superfund site a number of years
previously. The
contamination from zinc smelting throughout the years resulted
in two thousand acres of the nearby mountain sides being
contaminated with lead and cadmium particles and the sulfur from
the smelting operation had destroyed all of the vegetation as
well. This was a major issue with the U.S. EPA and the PA
Department of Natural Resources (DNR).
At this time the Palmerton site was exclusively an HRD
facility, processing the hazardous waste electric arc furnace (EAF)
steel making dust and recovering valuable zinc metal as zinc
oxide.
The HRD
business -
The receiving
and processing of the EAF dust, was a very dusty operation as
the fine dust was
difficult to contain.
It was a challenge to control the dust from escaping from
all parts of the operation, the dust receiving, the dust
conveying and the kilns.
Controlling this dust containing lead and cadmium was a
continuing challenge for the plant operations. All of the
processes were permitted by the EPA/DNR thereby requiring
periodic inspections and permit renewals.
There were frequent complaints by the residents of
Palmerton and nearby communities. We were in almost weekly
communication with the PA DNR and occasionally with the U.S.
EPA.
The EAF
operating steel companies were charged about $100
per ton of
EAF dust disposed
in a hazardous waste landfills in addition to the transportation
cost to the landfill. Occasionally, the transportation charge
was equal to the landfill fee.
Horsehead Resource Development
charged a processing fee less than the hazardous waste
landfills charged, consequently, with the large number of
electric arc steel making facilities in the surrounding
geographic area it was difficult for HRD to process the amount
of dust our customers wanted HRD to process despite the plant
operating 24 hours a day 7 days a week.
We were hard pressed to expand our capacity, despite
activating a third kiln for the primary processing operation.
Processing
this dust was a two step operation.
The EAF dust was introduced into the into the elevated
end of an approximately eighty feet long, six feet in diameter,
horizontally - inclined at about ten degrees -rotary kiln which
heated the dust to the temperature at which the zinc, cadmium
and lead all vaporized.
These vaporized particles immediately became oxidized in
the kiln. The
exhaust air from the kiln containing these oxide particles was
swept into a dust collector in which the zinc oxide concentrate
with the contaminant cadmium and lead oxides were captured for
further processing.
The residual material discharging from the lower end of
the kiln in this step of processing
was basically inert calcium, silicon, iron and other metallic
components. This
residual material was non-hazardous and was used as road base
and fill material.
The “fumed”
metal oxides, which
was a fine dust, was refined in second rotary gas fired kiln
similar to the initial processing kiln in which the temperature
was closely controlled to vaporize the cadmium and lead oxides
which vaporize at about 1200 and 1500 degrees Celsius
respectfully leaving the zinc oxide which sublimates at 1800
degrees Celsius.
The zinc oxide concentrate was then sold to HRD’s sister company
Zinc Corporation of America (ZCA) which refined it into
commercial zinc oxide, an important component in white paints
and sunscreen lotions,
an additive in vehicular rubber tires and a myriad of
other commercial uses.
The ZCA
plant to which we shipped the raw zinc oxide concentrate was in
Monaca, PA near Pittsburgh.
The combined lead and cadmium oxides was further
processed into commercial grade lead oxide and cadmium oxide at
a sister plant of ZCA.
Horsehead Resources Development had a
minimal administrative staff, as HI had previously
provided these administrative support requirements.
In preparation for the IPO, HRD needed to be fully
staffed to handle the various administrative responsibilities.
We had an experienced manufacturing manager, Bill Smelas,
who was a long time HI employee and
knew the Palmerton Plant, the employees and the
processing technology. In addition, we had a plant accountant
and plant personnel manager in place.
It was our responsibility to strengthen the HRD staff in
preparation for the IPO.
At the time HRD particularly needed increased human
resources expertise.
I had remained in contact with Gene Krause (my ADM recruiter who
convinced me to join ADM in 1965). His family and mine continued
to be in reasonably close contact even after
he departed Ashland Oil
in 1969. Gene and
his wife had retired to Sarasota, FL.
I hired Gene as a consultant to HRD to help us build our
human resource and administrative staffing and to provide me
with advice on preparing HRD for the IPO.
With Gene’s help we hired a fulltime attorney to work
with HRD, supplementing the legal help we received from HI as
well as to be our human resource manager.
Gene worked with us for about six months and provided
valuable help and advice to our embryonic company.
Our labor relations were generally good with little
involvement from the national Steelworkers Union.
In the middle of January 1991, before Karen and my house was
finished, Gene and I were staying in a neat old hotel in Jim
Thorpe, PA (about fifteen miles from Palmerton). We had a late
dinner sitting at the hotel’s bar when the U.S. answered Iraq’s
attempt to take over their neighbor, the oil rich country of
Kuwait. The ariel
bombardment of Bagdad was broadcast live on CNN by their Bagdad
reporter located in a Bagdad hotel room.
I think that it was the first time I heard the term
“Shock and Awe” when referring to military action, but I can’t
confirm it.
Regardless, it was quite impressive TV coverage.
The HRD IPO -
Bill Flaherty, established the timeframe and selected the
investment advisor which would take HRD public.
He directed HI’s outside
corporate lawyer to work with us to prepare the IPO documents.
Bob Hoguet was our primarily contact with the outside IPO team.
I knew that I would be making the presentations to various
investment firms in the IPO road trip and stayed close to this
work. Bill Flaherty
decided that only 20% of an expected $100
million dollar valuation would be offered to the public
at this time.
Environmental firms were enjoying relatively high valuations,
i.e., stock price to earnings per share multiples, at
this time.
The balance of the ownership and control would still be in the
hands of HI’s owners for later sale at hoped-for even higher
price.
The road trip and IPO were a success with presentations made in
New York City, Chicago and San Francisco.
The initial valuation was indeed $100 million and the
offered shares were fully subscribed by various investment
firms. The
management and ownership of HI were very happy. My personal
disappointment was that although we HRD executives were given an
opportunity to purchase stock at the offering price, we were
granted no HRD stock options prior to the IPO.
Nor were any granted at the end of the first year
anniversary of the IPO.
Of course, I
was still very happy with the bonus upon the completion of the
Pony Industries final liquidation.
As it turned out the Chemlink Group stock was worthless,
as Chemlink was not successful as an operating company.
After the IPO, I continued making presentations about HRD to
security analysts, particularly at environmental conferences.
Bill Flaherty was very happy with my presentations and
complimented me several times for my presentations.
Cindie and Kim’s families again joined us as we celebrated our
Thanksgiving and Christmas holidays
in our new Lake Harmony home.
Cindie was expecting our sixth grandchild in February.
We decorated the house to the “tees”, with a twelve feet
tall Christmas Tree in the great room and an eight feet tall
Christmas Tree in the recreation room.
We had Christmas lights hanging from the eves of the
roof, a large wreath of the front door, garland strung around
the upstairs balcony overlooking the great room.
The five grandsons loved the bunkroom which Karen had the
beds made with Walt Disney bed sheets, pillow cases and
blankets. It was a
wonderful Thanksgiving and Christmas.
There was plenty of snow at Christmas time and the
grandsons enjoyed building snow men on our deck.
Brian was a very proud Eagle Scout and his three (soon to be
four with the birth of Adam in 1992) sons were each introduced
into scouting at their first opportunity.
Brian served as an assistant scout leader for a number of
years.
Additionally, Cindie insured that “the boys” were provided
opportunities for any sporting activity in which they might be
interested. All of
them participated in Tai Kwon Do and earned various relatively
high level belts. All of them played league soccer in which both
Kevin and Adam excelled. Brad was attracted to Rugby and enjoyed
the rough and tumble sport.
None of the boys participated in school athletics, except
for Andrew who led the high school pole vaulting for a couple of
years. Brian
accompanied each of his sons on a week-long scouting outing as a
culmination of each boy’s scouting adventure.
Brad, Kevin and Adam all went with Brian in separate
years to a Boy
Scout Ranch in New Mexico, (Philmont) for a hiking and camping
experience none of them would forget. Andrew and Brian went to
Key West, FL for an
ocean experience.
Adam Scott Holub is born -
As we were very busy in making the IPO preparations, our family
increased by one more grandson, Adam Scott Holub, was born on
February 9, 1992 – 2992 for ease of memory.
Cindie and Adam were doing well and like Cindie’s
previous deliveries, she and Adam were home from the hospital in
almost record time.
Karen and I drove to Westford, MA to meet Adam and to visit
Cindie’s family on several different weekends that spring.
Karen and I hosted our Davis family summer reunion in July at
our Lake Harmony home.
We were able to accommodate everyone who attended, which
was the majority of the family although some slept on the floor.
Dad and Velda were able to join us, as was Dick and
Judy’s daughter-in-law, Bonnie, who drove to Lake Harmony from
Roanoke, VA.
Bonnie’s husband Richard, an U.S. Navy officer, having
been commissioned upon graduation from VPI/Virginia Tech, was
deployed at the
time. The weather was cooperative and all of us enjoyed a float
trip of about 12 miles down the Lehigh River.
At home, we put our
spacious deck to good use cooking and eating outside. The
younger generation thoroughly enjoyed the swim spa.
It was a very enjoyable
reunion, although it was a somewhat difficult for those
traveling to Lake Harmony from Iowa and other places some
distance away.
On August 22, 1992 Karen’s
younger niece Lynn Swanson married an English professor, David
Fite who once taught Lynn in an undergraduate class.
Lynn asked me to walk her down the aisle at her wedding,
which I joyously accepted.
It was a wonderful wedding to which Karen, I, Cindie,
Brian, Kim and David all attended.
Lynn who has suffered with Cystic Fibrosus from birth,
continued to do well outliving most of her contemporary Cystic
Fibrosis sufferers. In 1998, Lynn had a double lung transplant
as her lungs had become almost totally incapable of providing
her small body its needed oxygen.
In early 2023, Lynn
celebrate her 64rd birthday, quite a
remarkable achievement.
Karen continued her habits of smoking and alcohol consumption,
although she had switched to bourbon and then to vodka, instead
of wine and began drinking in excess.
She did little physical work and had added some weight.
She began a diet which was limited to food, but little or
no diminishment in the alcohol consumption and lost some twenty
pounds as a result.
However, she continued to be concerned about the size of her
thighs and legs in general – an inherited feature - and resorted
to a lipo-suction treatment on her legs.
The operation was successful; however, it left her legs
appearing thin and to her, unsightly.
This added to her mental concern over her unhealthy
habits and physical condition.
I traveled to Japan and to Poland with Dave Carpenter on two
different trips to explore the possibility of establishing joint
venture operations to process electric arc furnace dust with
local metals companies. While
neither effort resulted in any venture, the trip to Poland was
eerily similar to my trip to East Berlin in 1985.
The plants and other facilities we visited in Poland were
severely antiquated, very labor intensive, energy inefficient
and major polluters.
These operations were so inferior to the competing plants
in modernized Europe and the U.S. it was almost unbelievable.
At HRD we made progress in satisfying the neighbors and
environmental agencies with our dust control measures and
gradually increased the plant’s capacity.
We were meeting our financial target objectives.
An experimental remediation effort to re-vegetate the
nearby baron mountains was undertaken in conjunction with the PA
DNR. This effort
involved the use of metropolitan sewage sludge in which the
seeds or seedlings of various indigenous area plants were
incorporated. This
mixture was then spread over the baron soil using a wagon
equipped spreader mechanism which was towed by a tracked power
source. The
ingenious approach was supported by both the state and U.S. EPA
as a way of recovering at
least some of the
original landscape which had
been denuded for some 90 years.
The experiment which was funded by HI as part of the
Superfund remediation effort was successful as native plant
vegetation began to appear on the nearby mountain where we had
revegetated it. We
planned to commercialize this service and to market it to
industrial companies who had similar vegetation denuded areas.
I prepared monthly letters to HI management on HRD’s operations
and progress toward our financial and operational objectives.
Bob Hoguet coordinated the release of public information
about HRD’s operations in satisfaction of the various
disclosure requirements of a public company.
We had monthly meetings with the HI board of directors to
report on HRD’s progress.
Being a private company,
HI had no public reporting requirements.
That autumn, Karen and I traveled to Kenya and Tanzania for wild
game tours. She
found a trip organized by Abercrombie and Kent which included
ten days in country.
As it turned out there were only 13 persons on the tour,
so we traveled in a caravan of five Toyota Land Cruisers rigged
for game watching with places to stand and look out over the top
of the vehicle. We
saw the “big five” wild animals of Africa which are the
lion, elephant, leopard, cape buffalo and the rhino, several
times. When we were
in these vehicles we were able to almost mingle with herds of
elephants, to move very close to prides of lions sleeping in the
shade and to ride along
parallel to running leopards. We were able to get reasonably
close to the Cape Buffalo however we were never able to get
close to the rhinos – probably at least a quarter of a mile
away. I took some
30 rolls of 35 mm pictures, primarily of the wild animals.
However, my photographic skills were abysmal and the
photos were not
decent quality.
Abercrombie and Kent did a wonderful job of scheduling the tour
and the guides were excellent.
The U.S. domestic economy was struggling a bit as the 1992 U.S.
Presidential election was underway. George Bush was running for
re-election. Bill
Clinton, the ex-governor of Arkansas was the Democratic nominee.
Clinton was a charismatic, young Democrat who postured
himself much in the mold of John F. Kennedy.
The economy was a major election issue and Clinton
grabbed the headlines and the votes with the slogan “It is the
economy, stupid”.
Clinton won the election.
Christmas 1992, we again celebrated at our Lake Harmony home.
Both Cindie and Kim’s
families were able to join us for several days.
The year 1993 brought some unanticipated changes as things
progressed satisfactorily at HRD to the best of my
knowledge. However,
in September as related later in this chapter, I learned that I
was being given another challenge.
Otherwise, our family was doing well, our six grandsons
were all doing well in school and both sons-in-law were doing
very well in their respective careers. Karen and I were
thoroughly enjoying our Lake Harmony home and playing some golf
at the Split Rock Country Club.
We had become fast friends with Don and Pat Todd, who
also lived full-time at Split Rock and cared for about 20
homes/cabins in the development for the unit’s absentee owners.
They were true friends but unfortunately Don had dementia
and died in 2022.
Pat has moved into a independent living retirement community.
HRD continued to do well, utilizing the Palmerton facility to
its full capacity, completing capital expenditure investments to
both control environmental issues and to maximize the plant’s
processing capacity.
Dan Brendon the young attorney we hired made great
progress in managing the human resource and other non-financial
administrative operations that we promoted him to Vice President
of HRD. He was
preparing for labor negotiations as our existing agreement was
expiring later in the year.
Dan was given an employment contract similar to Bob
Hoguet’s and mine.
The only difference was in salary and the length of the
severance period.
Bob and Dan’s contract provided for one year upon termination,
if not for cause, while mine provided for two years.
I traveled about twenty percent of the business time, not
counting the almost biweekly trips to the HI’s NYC office.
Primarily my travels took me to the Monaca offices of
ZCA, to our major EAF dust suppliers and to Environmental
Conferences. This
was a nice change from being away from home much of the time the
prior four years.
Colin McLemore graduated from Washington State University (WSU)
in June. Dad and
Bob traveled to Washington State to attend Colin’s graduation.
Janie remembers dad had lost some weight however he
jokingly told her that he was trying to keep in shape.
The Davis family summer reunion was held in Breckenridge, CO
this summer. We
rented a number of adjacent rooms in an apartment building and
enjoyed visiting this beautiful area, getting reacquainted with
our growing family, Cindie and Kim had eleven first cousins on
the Davis family side and there were already fourteen in the
next (our grandson’s) generation.
When we were all together it was a big group.
One of the really fun side trips at this reunion was a
white water rafting trip on the head waters of the Arkansas
River. It was
genuine white water.
We had about a dozen of my generation and a few of the
older ones from the next generation.
I was riding in the front of one raft when we hit some
particularly rough water.
The front of the raft drop abruptly
and I
found myself in some very cold water.
Fortunately, I had grasped a rope secured to the raft as
I let the raft and was able to pull myself back into the raft
fairly quickly. I
was the only one of our party who fell out on the
rafting trip.
The Breckenridge venue for our reunion was not what we
wanted so the hunt was again on for a venue which would better
accommodate us, essentially one where we could prepare our own
meals and eat as a group, in addition to having a variety of
activities for all ages.
We were pretty much finished with the Lake of The Ozarks,
as the central U.S. location was no longer a significant factor,
since our family was spread throughout the U.S.
I was fired by the ownership of HRD -
In September, I traveled to NYC to meet with David Carpenter at
his request.
When I arrived, he asked
me to come
with him to Bill Flaherty’s office where the three of us met.
Bill took over the meeting telling me that “they wanted
to make a change in leadership” at HRD and that Bill Quirk who
had no management experience would be replacing me as President
of HRD immediately.
I was shocked and not prepared for this change
with no warning what so ever.
I had not a hint of any
problem, any displeasure with my leadership or other reason for
my being replaced.
I asked Flaherty “may I ask why?”
To which David Carpenter then said “you work too hard and
we think that it might be time for you to take it a bit easier,
even retire”. I
commented to both of them, in as calm and respectful voice as I
could muster, that I respected their right to make this
decision, but I thought that I should be given a better reason
for the decision than that.
Flaherty just reiterated that they (meaning I am sure,
“he”) made this decision.
I thanked them for the opportunities that they had given
me and asked about the compensation plan had been widely
discussed with the two others and me.
Flaherty responded that it was never approved.
I then prepared to leave and said that while they thought
that it was time for me to retire, that I would make that
decision and that I thought I had a capability in which other
companies might be interested.
As I left Flaherty’s office he directed me to contact
Bill Flatley the HI CFO by phone the next day to coordinate my
severance arrangements.
I left the meeting in a bit of a daze and drove the two
and one-half hours to Palmerton, arriving after work hours so
the HRD office was deserted.
I cleaned out all of my personal belongings from my
office, including the African pictures which I had proudly hung
in my office (I never displayed my diplomas, certificates or
photos of me with celebrities in my office.)
I then went home and shared the news with Karen.
She, like I was very surprised and a bit concerned about
what we do now. My
response was that I would begin contacting executive search
firms immediately as
well as well-placed friends, colleagues and my HBS
class-mates, to spread the word that I was in the job market.
I was not “depressed” but I was “deflated”. I was not
angry nor feeling the need to “hit back” at HI for my dismissal.
My conversation with Bill Flatley the next day was pleasant but
business-like. He
advised me that HI was honoring my two years of severance and
health benefits including the use of my company car. He asked me
to remove my personal belongings from my office, to which I
responded that I had already done so and that I had talked to no
one at HRD about my change in status.
Another new beginning -
Karen and I called Cindie and Brian and then Kim and Dave to
break the news about these developments.
Their comments were comforting.
The next day I made a comprehensive list of all my
contacts who might be helpful in my search for another executive
position. I updated
my resume’ and prepared an e-mail
which I would customize for each recipient
I began an e-mail
campaign that would last almost two years.
I reached out to many of my contacts with phone calls and
if I was not successful in reaching them, I promptly followed up
with an e-mail referencing the call.
I spent nearly all day, every day during the week in my
home office reaching out to my contacts and executive search
firms. I sent my
updated resume to all of the executive search firms that I could
find. I limited my search to the U.S. as I was not anxious to
relocate abroad and I had few contacts abroad that I thought
would be helpful. I
followed up every lead that I had or learned of
on a possible executive management opportunity.
I formed Jim Davis & Associates, complete with an EIN and
offered my services as a general business and environmental
consultant. The
consulting services were an intended bridging activity to an
executive position.
I took advantage of several business consulting offers, one of
which was for an environmental firm in the environmental
remediation services, based in Pittsburgh, PA.
It provided several months of part time work.
I was an expert witness for the plaintiff in a lawsuit.
I was a bit surprised how hard it was to get executive
recruiting firms to engage with me, unless they had specific
search underway which
might be a fit with me.
I was in these firm’s
data base however. I was
almost 60 years old and most searches were for younger
executives.
After launching my search and reaching a bit of a lull waiting
for responses, Karen and I took advantage of not having a fixed
business schedule and visited family and friends.
My salary continued as expected and the use of the
company car spared us from buying a second car.
I worked on a couple of consulting gigs which required
travel. We
celebrated Christmas and New Years at our Lake Harmony home
again. Cindie and
Kim’s families were with us the week between Christmas and New
Year. We were
looking forward to 1994 with optimism.
I was confident that I would be successful in my search
for an executive position..
Dave is recruited to a major job with greatly expanded
opportunity -
Dave was recruited to be Senior Vice President Store Operations
of Zales Jewelers a national chain with some 500
stores. In May, 1994, he
accepted the job, in part because he would be reporting to the
supervisor/mentor he had a JB Robinson, a close friend of
David’s, who was then Executive Vice President of Zales.
He and Kim made plans to relocate to the Dallas-Ft. Worth
area. They
purchased a lovely home in Southlake, TX near the Zales
headquarters in Irving, TX.
Kyle and Brett were being introduced to Jujitsu and both
of them excelled at it.
Eventually, they each earned a high level belt.
Karen’s uncle George Stephens, her mother’s baby brother who
flew B-17s and B-24s bombing Germany in WWII, died May 4,1994 of
a heart attack. He
was 75 years old and a retired high school science and math
teacher in Buckeye, AZ.
Unfortunately, uncle George did not do a very good job of
taking care of himself. He was over-weight and did no
exercising. He is
buried in the Veteran’s Cemetery in Phoenix, AZ.
Karen traveled to AZ to attend his services and to meet
up with her sister-in-law, Lee Swanson.
I unfortunately had some business commitments which
precluded my attending George’s services.
Throughout 1994 I followed up with executive search firms, HBS
classmates and other business associates. I continued working
several consulting gigs, one of which was working with my great
friend and HBS study group member, John Hobbs.
John was very successful financially and was very
actively supporting a number of charities.
One charity was a private elementary school in western
Massachusetts, near his country home.
The school was heavily dependent on John to subsidize the
tuition paid by the couple dozen students who attended the
school. I
worked with the founder and head master of the school to improve
the financial performance of the school.
John also referred me to friends of his who might be
interested in my background and talent, however none of these
leads proved out.
The Republicans handily took control of both the U.S. Senate and
House in the 1994 elections, as the Clinton administration had
mishandled a number of key issues, including, handing his wife,
Hilary, responsibility for fixing the national healthcare
problems. The
Republicans united behind Congressman Newt Gingrich with a
program for governing, titled “Contract With America” which
promised a number of actions for the voters IF the Republicans
took control of the Congress.
It was a very significant success.
I continued to attend as many of the WPU board meetings as I
could, frequently scheduling business trips to the Midwest and
piggybacking the WPU meeting with that trip.
The university continued struggling financially.
Karen and I had continued to make sizeable donations as
did several other donors which kept the doors open.
John Wagoner continued to serve as President although he
had survived one cancer experience.
The current chair was a talented, dedicated WPU donor who
after serving several years wanted to step down as Chair of the
Board. I was asked
to assume that role and accepted.
I served from early 1994 to 1996.
I worked hard with President Wagoner to locate additional
sources of funding.
We were successful in recruiting the primary owner of a local
manufacturing company to join the board and to
commit significant resources to WPU.
In October 1995, President Wagoner advised me that he
would like to retire at the end of the academic year in May
1996. I appointed
another long time board member, who was a WPU graduate and a
successful business man to head a search committee and advised
him that I would nominate him to become the board chair upon the
appointment of a new WPU President.
The search was successful and I stepped down as chair of
the board, but continued as a member of the board until I
resigned in 2006, since I had retired and moved to Arizona,
making the travel to Iowa to attend board meetings somewhat
difficult.
I was contacted by
George Skakel, the previous treasurer of GLC, who left GLC when
HI purchased GLC and began investing in small companies with the
idea of increasing the companies’ size and profitability and
then selling them.
He had just sold a house manufacturing business and was
entertaining purchasing a small Florida company which installed
and serviced automobile service stations fuel pumps.
The company was privately owned by two cousins who did
most of the work themselves.
It was a growing business with Florida’s booming economy
and population growth.
Additionally, the business
was frequently boosted by
the several hurricanes Florida experiences which damaged these
service stations forcing frequent repairs and or up-grading.
George asked me to work with him in evaluating the
company and possibly investing in it with him.
I spent several months working with George and learning about
this company and its business.
Most of this time I spent in the Palm Beach area of
Florida where the company was located.
The business had a
promising future, although it was dependent on the productivity
and continued involvement of the two owners who wanted to expand
the business throughout Florida.
In the end, George agreed to purchase the company with me
owning a ten percent share of the ownership as the two then
owners agreed to sign both a non-compete and a
two year employment commitment with the new company as
well as a commitment to purchase the company back within one
year if the plans did not work out..
George expected me to basically manage the two previous
owners and help them expand the company into other parts of
Florida. I
committed to George to work with him at a minimum of six months
to help him expand the business.
We worked diligently, but decided after six months that
the opportunity was not sufficiently attractive to pursue it
further. George and
I divested the business back to the two previous owners and left
Florida.
Karen and I pretty much limited our travel to see family.
I travelled for consulting opportunities or for
employment interviews.
I walked/ran the golf course early in the mornings but
otherwise did little physical fitness.
Karen and I played some golf on the Split Rock Golf
Course, but seldom played with any other residents or golf
course guests. We
spent quality time with Don and Pat Todd, our best friends in
Split Rock. I fielded
very few inquiries about executive employment.
All in all, 1994 was a
slow year.
We did however, participate in the Davis Family summer reunion,
which was held in Estes Park, CO for the first time.
We booked a wonderful venue named Glacier Lodge.
We rented the one very large cabin which slept about 25
people, and had a large kitchen with ample refrigerators,
freezers, range and other kitchen equipment. It also, had a
large dining/gathering area with a number of long tables and
chairs. There was
seating and dining for some 50 persons. Since we were
all or at
least nearly all, in attendance we
filled this common area. The resort was moderately sized,
with possibly a dozen other one and two bedroom cabins
surrounding the big cabin. We
used the big cabin for
all of our meals and for
gathering and remembering.
We rented a number of the additional cabins for those who
could not be accommodated in the large cabin.
Outside the cabins was ample grassed area for lawn games,
and for sitting and relaxing. There were the usual western
activities, a daily trail ride, a weekly chuckwagon breakfast, a
decent sized swimming pool and fishing in the rapidly flowing,
very cold Big Thompson River which ran beside the lodge
property. The river
originated about ten miles higher in the snow melt of the Rocky
Mountains. The river was about ten feet wide and very fast
moving. The reunion
was a very enjoyable experience and we decided that we would
return again in 1995.
We gathered at our Lake Harmony home for Christmas.
Again, we had a wonderful time. The grandson’s really
enjoyed the swim spa.
We had roaring fires
in both fireplaces - the great room and the recreation
room. We played
many games of monopoly, particularly with Adam who at three
years old was already a monopoly addict, and billiards.
Life was good for our family and we all looked forward to
an even better 1995.
The six grandsons thoroughly enjoyed the bunkroom.
The new year began much as had the previous year.
I continued pursuing that elusive executive position and
doing a modest amount of consulting.
Our family was healthy, prospering and busy.
Life in Lake Harmony was low key.
Travel, except on business and to immediate family was
minimal.
A second significant consulting assignment started off, I
thought, with an executive recruiter call late in the spring of
1995, advising me that he had an assignment for the CEO of an
environmental company which was a start-up working on capturing
energy currently being discarded from power plants.
The company was a concept of a distant relative of one of
our country’s early titans of industry.
This man owned the company outright, however, the company
had very limited financial resources and it’s major possible
asset was a partially completed energy recovery plant in the UK.
He offered me the opportunity to be CEO with compensation
of a small portion of the company’s equity.
I countered that I would work with him as the start-up
CEO – basically a consultant to assess the opportunities, in
exchange for the start-up to pay my travel expenses and for
ownership shares to compensate me for my time and expertise.
I worked with this entrepreneur several months, studying his
facility in the UK to determine its possibility for success and
with his Washington, D.C. attorneys who were attempting to win
financial support for his start-up from U.S. EPA grants .
Further to all of this I was attempting to see what the
real possibility might be for this start-up.
Several months into the process, the promoter, who
disagreed with me on some of my assessments, informed me that he
was reclaiming the CEO title and I would have the title of EVP.
I responded that such a move was unsatisfactory.
Shortly afterwards, as covered a bit later I was
recruited to be the President and COO of a publicly traded
manufacturing company with sales of $1 billion annually.
When I advised the now CEO/owner of this start-up about
this change so he would have our new mailing address, he said “I
thought that you told me you would not be second fiddle to
another CEO”. My
response to him was there was just a slight difference between a
start-up and a billion dollar publicly traded company! He really
was a bit of a pompous jerk and I was glad to be past him
although I was never compensated for my time as his venture
shortly thereafter folded.
Jill Aiken graduated from high school that May.
Dad and Bob traveled to Twin Falls, ID to attend Jill’s
commencement.
Dad had attended all thirteen of his grandchildren’s high school
commencements except for his 10th grandchild, Richard
(Dick and Judy’s older son) who graduated in Italy
during the time of some civil unrest and mom and dad
decided not to travel to Italy at that time.
A very nice
accomplishment of which he was exceedingly proud.
Dad and mom cherished, loved, encouraged and nurtured
their family thorough a lifetime of accomplishment for all of
us. Janie,
remembers dad being too thin at that time and that he had some
medical tests, including a colonoscopy. She was very concerned
about his health.
Our Davis Family summer reunion was again held at Glacier Lodge
in Estes Park. It
was very well attended and it was a joyous time.
Some of the second generation rented a ski boat on Carter
Lake Reservoir in Loveland, CO some twenty five miles from
Glacier Lodge and enjoyed boating and water skiing.
Others of us swam and sun bathed on the lovely beach.
Most of our younger generation again did a trail ride.
The Thursday morning campfire breakfast for all Glacier
Lodge guests was a big hit.
Dad did not attend this reunion, the first one he had
missed. His and our
dear friend Velda had heart surgery earlier in the summer and he
wanted to stay near her to be of any help and companionship that
he could.
Dad is diagnosed with prostate cancer -
A few weeks later dad and we learned that he had prostate cancer
which upon further examination the doctors learned
had metastasized into his bones.
We all were stunned to know
that he had
not a PSA screen in all of the blood work he had done over the
past several years. The doctors advised him there was no
medical treatment recommended other than an
orchiectomy (removal of the
testicles) to reduce the testosterone in his body and to slow
the progress of the cancer.
That surgery was done promptly.
Dad was not in significant pain, was
ambulatory, reasonably
active but certainly physically diminished.
His medications included a drug to kill/reduce hormones
that were facilitating the spread of the cancer.
In late August, I received a phone call from an executive
recruiter with whom I had not previously conversed.
He was given my name from Harry Skilton a close personal
friend from my HBS class of ’65 Section C.
It was a call which
changed our lives these upcoming next five years and beyond.
Click HERE to go to Part
XI
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