F. Scott Fitzgerald – The Intelligent Collector Magazine

Empire State Building Remains One of World’s Great Wonders

Guy Carleton Wiggins’ oil on canvas board *The Empire State Building, Winter* sold for $44,812 at a May 2011 Heritage auction.

By Jim O’Neal

“From the ruins, lonely and inexplicable as the Sphinx,” F. Scott Fitzgerald once wrote, “rose the Empire State Building.”

The “ruins” was an oblique reference to the stock market crash in 1929. Completed on May 1, 1931, on the site where the Waldorf Astoria had stood, no building ever reached so high, so fast; 102 stories tall and with a 200-foot mast to hitch your dirigible. It was built in just over a year, during what would become the nation’s worst depression.

Just a short two years earlier on May 1, 1929, architect William Van Alen had broken ground on the Chrysler Building. He had been commissioned by Chrysler to design and construct the tallest building in the world. When the Chrysler Building opened in April 1930, it was indeed the tallest at a magnificent 925 feet – a world record that would only stand for a fleeting 28 days! Then the Manhattan Bank Tower completed its construction and opened at a height of 927 feet, which allowed it to lay claim to the World’s Tallest title by a measly 2 feet.

Hang on. The race wasn’t over. In the history of high wire, where one-upmanship is the oxygen that fuels architectural competition, the Chrysler Building’s William Van Alen had kept a surprise hidden up his sleeve that would allow him to reclaim this prestigious crown.

Van Alen had designed a stainless spire of five sections, which was lowered through the top of the building. At a fixed time, before a highly appreciative audience, Van Alen delivered his coup de grâce to the Manhattan Bank. A huge derrick, its gears slowly turning, raised the spire from the innards of the Chrysler Building. “It gradually emerged,” Van Alen wrote, “from the top of the dome like a butterfly from its cocoon.” At 1,046 feet, the Chrysler Building was suddenly, once again, the World’s Tallest Building.

Alas, it only remained so for less than a year, when the Empire State Building – topping out at 1,250 feet – grabbed the title for itself. It would retain the crown until 1971 when the World Trade Center towers opened. Fittingly, the group behind the Empire State Building included the Happy Warrior himself, Al Smith, former governor of New York (four times) and the Democratic candidate for president in the 1928 election (won by Herbert Hoover). Smith’s grandchildren cut the ribbon when the world’s (newest) tallest skyscraper opened May 1, 1931, and President Hoover turned on the building’s lights using a remote push button in Washington, D.C.

Subsequently, the building has become a worldwide icon and in 1994 it was named one of the “Seven Wonders of the Modern World” by the American Society of Civil Engineers … joining the Golden Gate Bridge and the Panama Canal, all American architectural marvels. Plus, who can forget Fay Wray as Ann Darrow in the 1933 classic King Kong, when the beast from Skull Island plucks her from the building?

The Empire State Building took only 410 days to build since the architectural firm used design plans for the (similar but smaller) Reynolds Building in Winston-Salem, N.C., a project they had worked on earlier. The staff at the Empire State Building sends a Father’s Day card to the Reynolds Building each year to honor the contribution it made to their existence.

Although long since surrendering its crown for height, the Empire State Building is a “must see” for all tourists to New York and, amazingly, revenue from ticket sales for admission to the observation decks exceeds office space rental income.

Its place in history seems quite secure.

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is president and CEO of Frito-Lay International [retired] and earlier served as chair and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

Gilded Age Created Super-Wealthy Americans and their Extremely Large Homes

Cornelius Vanderbilt at one point controlled 10 percent of all the money in circulation in the United States.

By Jim O’Neal

A recent New York Times edition has a follow-up story on America’s most expensive house – a 38,000-square-foot beauty listed at $250 million. The current all-time record is believed to be an East Hampton estate that sold for $147 million in 2014, followed by a California house that sold for $117.5 million in 2013. Apparently, there is another Bel Air project under construction that would dwarf all of these at $500 million.

This may seem like a modern-day phenomenon, but it hardly compares with the late 19th century – “The Gilded Age” – when truly vast fortunes were accumulated to the point it required “creative spending,” and real estate was a favored target. The Vanderbilts were a prime example, as shipping and railroad magnate Cornelius Vanderbilt stood out among other famous names of the day, such as Morgan, Astor, Rockefeller, Mellon and Carnegie. At one point, “Commodore” Vanderbilt (as he liked to be called) personally controlled 10 percent of all the money in circulation in the United States.

Naturally, all these wealthy Americans built homes on a grand scale. Grandest of all were the Vanderbilts. They built 10 mansions in New York alone, all on 5th Avenue, one with 137 rooms. And everyone built more palatial homes outside the city, particularly in Newport, R.I. The super-rich even had the nonchalance to call them “cottages,” despite the fact that they were so big even the servants needed to have servants.

This gaudy ostentation generated such widespread disapproval that a Senate committee seriously considered introducing legislation to limit how much a person could spend on a house (but not how many). These were the days when John D. Rockefeller made $1 billion a year (adjusted for inflation) and paid no income tax. No one did. Congress tried to introduce a 2 percent income tax over $4,000 in 1894 and the Supreme Court promptly ruled it unconstitutional.

Warren Buffet thinks we are better off today since rich folks back then couldn’t buy televisions, luxury cars (with GPS), cellphones, jet travel, microwaves, talking movies, air conditioners, Starbucks lattes … or lifesaving CT scans, organ transplants or statins/vaccines – since they didn’t exist. All they had was money.

So like the Commodore’s grandson George Washington Vanderbilt, they turned to real estate and homes. This Vanderbilt heir decided to build a cottage of his own in 1888, when he was still in his 20s. He bought 130,000 acres in North Carolina and built a rambling 250-room mansion. He hired 1,000 workers to build a dining room with a 75-foot ceiling that seated 76. The estate had 200 miles of road and included a town complete with schools, a hospital, churches, banks, a railroad station and shops for 2,000 employees and their families. The surrounding forests were logged for timber and the many farms produced fruit, vegetables, eggs, poultry and livestock.

He had planned to live there part-time with his mother, but she died before it was complete. So he lived there alone until he finally married and had a daughter. Then he died.

As F. Scott Fitzgerald supposedly once said to Ernest Hemingway: “The rich are different from you and me.” To which Hemingway replied, “Yes, they have more money.” (And thus a famous quote/counter-quote myth was born … with many variations.)

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is president and CEO of Frito-Lay International [retired] and earlier served as chairman and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

Americans Have Turned Inward Before, in the Days of Richard Nixon

*Chicago Sun-Times* political cartoonist Bill Mauldin drew this piece shortly before President Nixon resigned in 1974. The original art sold for $2,748.50 at a November 2014 Heritage auction.

By Jim O’Neal

On Jan. 20, 1973, surrounded by happy perjurers, Richard M. Nixon celebrated his second inauguration in a three-day, $4 million extravaganza, organized by political operative Jeb Stuart Magruder. Named by his Civil War-buff father after Southern General J.E.B. Stuart, Magruder would later serve seven months in prison for perjury involving Watergate.

The rhetoric of the inaugural address was less a promise of what the government would do than what it wouldn’t. Twelve years earlier, another president of the same generation had vowed that “We’ll pay any price, bear any burden, meet any hardship, support any friend, oppose any foe, to assure the survival of liberty.”

Now, Nixon declared that, “The time has passed when America will make every other nation’s conflict our own … or presume to tell the people of other nations how to manage their own affairs.” At the same time, he prepared to liquidate the domestic programs of liberal administrations. Paraphrasing President Kennedy’s most memorable line, Nixon said, “Let each of us ask — not just what will government do for me, but what can I do for myself?” (Lyndon B. Johnson would die two days later, but presumably from other causes).

As Nixon paused for effect, a faint sound could be heard from several blocks away. A group of youths was chanting “Murderer,” “Out now,” and “End racism.” A woman from Iowa told a New York Times reporter, “Just disgusting. Why can’t they do something about those kids!”

It was certainly indecorous, yet these demonstrations, like the counterculture of the time, were an expression of the deep divisions in America and they had to be endured. There is no practical way to stifle dissent in an open society; if there was, I suspect Magruder and his allies would have tried to use it.

The chanters – about 500 to 1,000 that included yippies, militants and Maoist activists – were the smallest and rudest protestors in the multitude of demonstrators.

So it was – after intervening in foreign conflicts for a third of a century – that the people of the United States turned inward once more, seeking comfort and renewal in isolation. “So we beat on, boats against the current, borne back ceaselessly into the past.” (Last line from The Great Gatsby by F. Scott Fitzgerald.)

Maybe someday.