The Random Nature of It All

Hat tip (again) to Barry Ritholtz who as a "financial guy" (actually schooled in law) has a logical way of looking at the inexplicable. He puts his spotlight on the recent gyrations of the stock market and the blather of the financial channels --  all constructing a "story" to "explain" sudden up or down moves in what, short term, is really a guessing game.  Media noise --  a  form of cognitive dissonance, contradictory "explanations" some of which appeal to investors and therefore feed the furnace of their convictions.  Which begets even more gyrations. As Ritholtz so accurately puts it: "people create a happy little bubble of delusion."  His article "What's Your Stock Market Story?" is well worth reading and keeping in mind when making one's next trade.

Speaking of the inexplicable, how do we mere mortals understand the consequences of a term that suddenly surfaced on the waters of our online lives: Heartbleed?  Perhaps a binary Loch Ness Monster?  How vulnerable is any online financial transaction or, for that matter, routine things like writing emails or even posting this innocuous blog?  And all of this the result "of a two-year-old programming error?"  Two years and we've all been lulled into a "happy little bubble of delusion" that all those "Secure Sockets Layer" web sites to which we've committed sign-ons, passwords, credit cards, etc. might have all been vulnerable and no one seems to have a full understanding of the consequence.  No consequences?  Armageddon? Somewhere between? A random programming error -- or an intentional one  -- that could have been silently exploited for two years?  Talk about a potential Black Swan. Here's Scientific American's take on it.

On to the random nature of one's career.  Looking back from the so called "golden years" how many can say that his/her career and how it unfolded was one of unsullied choice?  Choices do have to be made, but those are ones circumstances concoct, almost like one's DNA randomly assigned at birth.  I could have ended up as a photographer, a librarian, or even in the insurance business -- there were paths in front of me to each of the foregoing, but I choose publishing, my first job being the result of a chance interview.  From there, I was able to make choices over the next 35 years, but, even then, I was given a random set of options.  Do I choose from behind door #1, #2 or #3?

Once I was running a publishing company, one of the choices I made was to pursue international opportunities.  Japan became one of our largest overseas markets and so I occasionally made trips to Japan, sometimes alone, sometimes with Ann and eventually both of us with our son, Jonathan.  The Japanese culture had a profound impact on us all. 

Fast forward to last night.  All those random choices.  No wonder when our gourmet club was deciding on the next "theme" -- one that was to be held at our home -- we suggested Japanese.  What a feast it was.  Our friend Lois made 3 platters of sushi: delicious fish, tuna, grouper and salmon.  We served a very good chilled saké with that and during dinner which everyone drank and  enjoyed.  Then Susan made authentic Miso soup along with tasty shrimp gyoza.  Gail brought short ribs with a Japanese barbecue sauce and a very refreshing side of cucumber salad. 

Ann made one of my favorites -- a genuine yaki udon dish with a homemade yakisoba sauce, tender pieces of chicken, red pepper, onion, bean sprouts, broccoli, shiitake mushrooms and scallions and of course udon noodles!  She also made traditional sticky rice (enough for twenty people!) along with glazed chicken drumsticks, serving it with a very nice Green Tea in beautiful tea cups that Susan brought.  For dessert, Ann served sweet pineapple and John made Green Tea Ice Cream that was out of this world.  Ann was in her authentic Japanese Happy Coat while our son, Jonathan, had given me some traditional bamboo flute music to play in the background, greatly adding to the evening's atmosphere.

Arigatou!

Passing the Baton

Only a few years older than I was at the time, my son Jonathan is making his first business trip to Japan and China (having traveled extensively on his own in those regions, and having lived there as well).  The confluence of his eduction, business experience, and language abilities has led to this moment.  I had no such language skills and whenever I traveled in Japan I needed a translator.  This left me at a disadvantage when it came to negotiations which usually entailed a team of Japanese executives on the one side and me on the other, they free to converse among themselves in my presence without my being able to understand a word.  It was the collective "them" against lonely "me."

While my son is there on a business mission that doesn't directly involve negotiating, his language abilities are key to his success there.  He reports on the number of Japanese women that are now in the executive ranks, a far cry from when I first went there in the 1970s.  The photograph below (circa 1977) shows me in a meeting with all male executives, a translator to my left.  When tea was served, it was brought by women but they were not allowed to cross into the conference room -- a sacred domain of the men -- instead handing us the cups at the door.  Oh, how things have changed there.  The Japanese are finally becoming a more heterogeneous society.

From the depth of my files, I unexpectedly came across the speech I had referred to in this entry about a trip I made at the turn of the New Year, 1990 (I had presumed the speech lost to time).

I've reread that speech and am amused by many of its observations.  Japan was the economic juggernaut at the time, reveling in a sense of exuberant nationalism that comes with that territory.  To an extent I bought into that then, but Japan since --- when the Nikkei 225 reached its peak of 40,000, certainly a genuine case of irrational exuberance -- has paid an economic price for that incredible bubble, and, making matters worse, their government "zigged" (raising interest rates) when it should have "zagged" (monetary accommodation).  It only made their recession, and deflation a multi decade affair.

They too have been impacted by the economic rise of China and the creative destruction of the Internet.  When I review this speech which I delivered to Tokyo's Rotary Club, consisting of executives of leading Japanese companies at the time, I'm now fully conscious of those two giant forces no one at the time could have fully anticipated. I'm also acutely aware of how China is now in the position of Japan -- an economic juggernaut that is also flexing its nationalistic muscles.  Just witness its recent landing on the moon, a highly symbolic statement of where it stands today and the rise of its navy.

And the Internet has forged forces of incredible change, breaking down trade barriers that had stood for scores of years, "flattening" the world's labor forces, allowing manufacturing to follow where it might be done best and cheapest.  When one looks at the components of a car or a cell phone, one needs a world map to track the many places they come from.  And the impact of the Internet on the publishing industry in which I worked for decades are self evident, rendering some of the observations I made in the speech about the future of huge multinational publishing conglomerates more a figment of past imagination.   Google and Amazon rule!

So, completing the entry I wrote in March, 2011, I can now add that speech itself which I made at the end of 1989.  Still many of these issues exist, although, now, the trade battle, and our trade deficit, relate to China.  The more things change, the more things do indeed seem to stay the same.  Over to you, the next generation!

Speech to the Tokyo Koishikawa Rotary Club on December 29, 1989

by Robert Hagelstein

It is truly an honor for me to stand before you today and to have an opportunity to discuss Japan and United States economic relations as viewed by an American academic publisher. By Japanese standards, our business is a fledgling one, established only 23 years ago. During that time, we have grown both internally and by acquisition and we have very successfully sold our books in Japan. This sales success is attributable to the excellent work of our Japanese business partner and the continued expansion of Japan's fine educational system.

Thus, I have had some first-hand business experience dealing with Japan, and I have watched it emerge as a leading economic power. One of the reasons I am particularly honored to speak on the topic of Japan-U.S. economic relations as the decade closes, is because we may be on the eve of a new stage in world economic development. Not only will there be an economically unified Western Europe in 1992, but the recent move away from communism in Eastern Europe and the embracement of democratic and capitalistic philosophies, even in the Soviet Union, will create a completely new political environment and new economic opportunities.

Unfortunately, with the opportunities come the danger of political instability, and we need to make the right decisions. What evolves over the next decade very much depends on whether Japan, the economic community of Europe, and the United States trade in harmony or whether splinter groups succeed in creating an environment of mutual suspicion.

Therefore it is important that Japanese business leaders, like yourselves, understand how many Americans perceive past Japanese growth to an economic superpower status and how Japanese relations with the United States are perceived. Incidentally, I do believe that many of these same perceptions are gaining ground in the European community, an arena where Japanese exports and Japanese investments are becoming significant.

But please let me underscore that I am talking about perceptions, how people think things are, not necessarily how they really are. If steel is the raw commodity most widely used in the business of selling automobiles, ideas are the main commodity of my industry, publishing. Therefore it is fitting, although perhaps unfortunate, that two recently published books may have a significant impact on U.S. - Japan economic relations. The first, The Japan Which Can Say No by Akio Morita and Shintaro Ishihara, is not available in the United States except in a bootleg translated edition, but it is already having quite an effect. The book is seen as a strong expression of burgeoning Japanese nationalism which views America's present trade dilemma as being rooted in bigotry and the decline of the American will and competitive ability. It argues that Japan can say "No" to any American suggestion by simply playing the U.S. off against the Soviet Union for technology components.

The second book that will undoubtedly have an impact on American policymakers and the media is one that was recently published in the United States, and which was named one of the outstanding business books by Business Week, The Enigma of Japanese Power by a Dutch journalist, Karel van Wolferen. This book argues that Japan is actually an oligarchy and while Japan professes to be engaged in free market trade and to have democracy, it is run by a tiny group of huge mega-corporations. These corporations have access to cheap capital and compliant labor, and they are protected by the government. Van Wolferen also contends that the Japanese standard of living is not much above that of some Eastern European nations, even though the Japanese worker is enormously productive.

As I said these books may very well have a negative effect on how Japan is perceived by the broader American public; they may give intellectual support to those who want to raise barriers to Japanese imports and Japanese investments in the United States. While even the vociferous protectionists recognize that Japanese workers are among the most productive in the world, and that Japanese industry has succeeded all too well in producing well engineered durable consumer goods, many Americans perceive that the transformation of Japan in the decades after 1945 into an economic superpower occurred, not because of hard work, sacrifices and ingenuity, but, rather, because the United States and Western Europe were left with the responsibility to blunt the threat of Communist aggression, thereby having to put extensive human and monetary resources into defense.

Even today, while the United States spends six percent of its gross national product on defense, Japan spends only one percent. Many in the West cite such figures (as well as the comparatively low--at least until recently--levels of Japanese foreign aid to developing nations) as one of the primary reasons for Japan's rise to economic power. By having been able to concentrate on internal industrial investment and foreign trade, Japan is perceived to have captured--unfairly to some extent--our overseas markets and thereby transforming itself into the economic power it is today.

The argument continues that while the United States was forced to play the role of the world's policeman, making the huge miscalculation of becoming involved in the Vietnam War in the 1960s and then having to pay for it in the 1970s, Japan, under the leadership of Prime Minister Tanaka, methodically pursued its strategy of building exports. Automobile exports to the United States, for instance, rose from some 381,000 units in 1970 to 2,527,000 by 1985. By 1985, the U.S. - Japanese trade balance, which had been tilted in the U.S. favor in the early 1970s, became a U. S. deficit of some $46 billion.

Fortunately, as I said at the onset, we may well be on the eve of a new stage of world economic cooperation, and the widely held negative perception of how Japan got to where it is today may become far less important. The major changes, of course, are the rapid disintegration of the Eastern European military bloc and the continued steps toward military disengagement and disarmament. If these changes continue, tremendous amounts of capital and technical manpower can be shifted from creating new generations of advanced weaponry, and maintaining large military forces, into devising new generations of industrial and consumer products as well as rebuilding America's infrastructure, from schools and-hospitals on the one hand, to highways and housing on the other.

You and I recognize, that these economic and political changes will not be completed overnight. But they are underway, and they will help to strengthen very significant economic changes already occurring in the United States.

This change began when America's self-image reached its nadir in 1979. American military and civilian personnel were seized by radical elements in Iran and held hostage for more than a year. The Carter administration appeared to be impotent and American feelings about themselves were at an all time low. The United States was completing a decade of inflation, stagflation, and high interest rates. Most of this pain was inevitable, as the United States had to pay for its policy of guns and butter in the 1960s and for the enormous cost of putting a man on the moon.

When Ronald Reagan became president in 1980, the stage was set for a significant turnaround. President Reagan promised to lower the inflation rate and restore American values while maintaining a strong military presence, and to promote capitalism throughout the world. It is remarkable that, in his decade, he accomplished many of his objectives with the very notable exception of balancing the federal budget.

We also began to recognize that American schools, in contrast to Japanese schools, were graduating poorly trained students, who, in contrast to Japanese students, were inefficient workers. American industry, also in contrast to Japanese firms, could not design quality goods, could not organize their work forces efficiently, and would not invest for future growth.

However, it seems to be coming clear, at least to Americans, that our own "American bashing" has gone on for too long. Paul Craig Roberts, who is with the Center for Strategic and International Studies in Washington, said that it is America's own self-loathing that is giving Japan the mistaken message that we are really a declining economic power. He said that if we, ourselves, give the mistaken message that the 1980s were a failure from an American economic perspective, we will be failing to recognize the stunning accomplishments achieved in this decade by the United States. It will also be unlikely that our trading partners will also recognize those accomplishments.

In fact, while there are still many problems, such as the trade imbalance, lack of savings and a growing national debt, counterbalancing these are improvements such as more productive workers, lower levels of unemployment, stable inflation, and leadership in industries that have become truly global: software, entertainment and service industries. For instance, American engineers may have transformed the entire debate over high definition television, an area perceived in the United States to be a prime area for technology spinoffs in the 1990s and beyond, by devising a digital, not analog, approach. And even in the automobile industry, Detroit is now being seen, at least in the United States, as able to design and build a moderately priced and well-engineered durable product. Confidence in the long term prospects for the American economy is growing.

Perhaps of equal importance, in the fall President Bush convened a domestic summit conference in Williamsburg, Va., only the third such domestic conference in American history. It was specifically concerned with finding ways to improve American education. While no tangible improvements in education have emerged from that conference yet, as with reductions in military spending, this meeting could be the beginning of a movement that will have a significant impact on American economic growth in the 1990s.

Speaking in regard to my own industry, publishing, I believe that the global opportunities will also be significant in the coming decade. In the 1980s, two very significant trends emerged: one, a trend of consolidation through acquisitions by large multinational firms and, two, an explosion of information publishing which has now become even more dominant in the U.S. than trade publishing. In fact, by 1988, according to an estimate prepared by Veronis Suhler & Associates, gross expenditures on business information services was 19.7 billion dollars in the United States, surpassing book publishing's 18.4 billion dollars. Multinational companies, for example Reed Communications, Pearson, International Thompson, Elsevier, and McGraw Hill, are positioning themselves to become dominant forces in the 1990s. These companies are dedicated to information and scientific publishing. Meanwhile, the trade publishers have been teaming up with entertainment and consumer magazine conglomerates. John Suhler recently speculated that Japanese publishing firms may soon begin to acquire Western publishing properties, following the lead of Japanese investment in recording and film companies. Global giants will emerge in the publishing, entertainment and communications industries.

I have talked about how Japan's economic stature is perceived, how the United States (and perhaps others as well) perceived American economic power in the 1980s, and how Americans are beginning to perceive a stronger economic future for themselves in the 1990s. How Japan is perceived as an economic superpower in the 1990s is something that the leaders in this room can affect.

With a reduction in international tensions, I suspect few in the United States and Western Europe will be calling for Japan to shoulder the burden of increased military spending. But you can anticipate that calls for Japanese aid to the developing world will increase. Then calls for Japan to streamline its distribution system, to open them more to Western influences and to diminish the influence which its large business cartels have will also increase. But, by working to create the same conditions and environment for foreign goods and investment that you enjoy, or that you want for your goods and investment abroad, you will ensure that Japan is recognized as a responsible economic superpower. You will also help to ensure that Japanese workers will enjoy more of the material rewards of their decades of hard work.

Indeed, there are epochal opportunities in the 1990s and we must all decide how we can develop common interests and common goals. If the leaders in this room apply the same ingenuity and hard work you applied to transform Japan, you can be a very positive force in transforming U.S. - Japanese business relations and the world economy. Thank you.

Publishing Roots and Anecdotes

There was a time in my life when reading professional books and journals was nearly a full time job onto itself, especially when I was starting out in my career.  The books seemed to come first and then the journals, particularly Publishers Weekly and it's UK counterpart, The Bookseller.  Added to the mix were academic and library publications such as The Chronicle of Higher Education, Library Journal, Kirkus Reviews, Choice: Current Reviews for Academic Libraries, and a number of related newsletters.  Weekends and nights were reserved for professional reading.

Now retired, I haven't read a professional book in years, although I try keep my eye on the publishing industry via the Web.  Nonetheless I've been remiss; it was only recently that I came across a book published some four years ago, a very important one to me and, I think, to the history of publishing, Immigrant Publishers: The Impact of Expatriate Publishers in Britain and America in the 20th Century (Transaction Publishers, 2009).  One of the co-editors, Richard Abel, was the founder of Richard Abel and Co., a major bookseller to academic and research libraries during my career.  Perhaps not too coincidentally, the book was published by Transaction Publishers which was headed by the late Irving Louis Horowitz, a sociologist who was a great publisher in his own right, publishing important works that others would have deemed too unprofitable to tackle.  I competed with Horowitz at times for authors but we had a cordial relationship.

Naturally, I was able to access large chunks of the book on Google Books but through one of Amazon's "partners" I was able to buy a new copy, still shrink wrapped for half the price.  Probably this was a review copy that had been sold.  Some things never change.  I wanted the hard cover for my collection of publishing books, particularly as it covers my own publishing roots.

Immigrant Publishers portrays a number of individuals I knew, worked with, and/or competed with.  For me personally, the most influential person was Walter J. Johnson, who was my first employer at the Johnson Reprint Division of Academic Press.  He was my "accidental mentor" and I would like to think that some of his better attributes, his intensely productive and entrepreneurial nature, became part of my working demeanor and without that subliminal tutelage, my career might have been very different. 

Two chapters are devoted to Walter Johnson, one by Edwin Beschler covering Johnson and his brother in law / partner Kurt Jacoby and their flight from Nazi dominated Europe to New York (with various stops between), establishing Academic Press (AP) in 1942. Johnson arrived with his wife, Thekla, after he had spent some time in a concentration camp but won his release. The other chapter is by Albert Henderson covering Johnson Reprint Corporation (JRC), run exclusively by Johnson (as was Walter J. Johnson, Inc., his antiquarian firm) and JRC's trailblazing accomplishments in the world of scholarly reprints.  I vaguely knew Beschler who was an AP editor but I worked closely with Henderson. 

Walter Johnson was an enigma to me when I joined the firm in 1964, straight out of college, winding up in the Production Department of JRC. On the one hand he could be charming, even endearing, but he also managed his businesses through fear and divisiveness, and constantly displayed a high level of distrustfulness.  But it was "justified paranoia" given his path to the United States (along with other publishers covered in the book) to escape (just barely) the encroaching threat of Nazi ideology inspired genocide (a fate of many of the family members of Johnson, nee' Jolowicz, changing his name and his religion "to never again be victimized"). 

Henderson recounts a meeting in the conference room of JRC which perfectly illustrates Johnson's suspicious personality, one that I also attended. It was a meeting called by my immediate boss, Fred Rappaport (another important influence on my career who is still a friend of ours after all these years).  Johnson was out of town but had placed a call to Fred waiting impatiently on the phone while the switchboard operators attempted to locate him.  At first they were unable to find him, until he was finally traced to the conference room. Johnson was incredulous and furious -- "what do you mean having a meeting without me?" -- you could hear Fred desperately trying to defend himself.

I also vividly remember another incident when Johnson stormed into the accounting department which was opposite my production department.  He was again furious, yelling at the accounting manager (whose name I've forgotten).  He picked up a calculator from a nearby desk (bear in mind, a 1960's calculator would weigh in at almost 40 pounds). raised it over his head, and smashed it to the floor, storming out of the department, leaving stunned silence in his wake. 

Yet, I had a different relationship with him.  He could never quite figure me out.  If he needed someone to come in all day Saturday to work on an "emergency" production project, normally no one would volunteer, something he pretty much expected (I think some of those projects were "tests", simply to demonstrate his willingness to be in on a Saturday while no one else was).  Well, in each and every case I said OK, I'll come in.  He eyed me suspiciously.  You want to come in to work?  Sure, I said.  (Actually, I needed the overtime -- my first wife was pregnant and about to retire from her lowly paying job -- and as I was on the clock early in my career, overtime was a gift.)

So I would see Walter in the office some Saturdays early in my career, and he began to depend on me to handle the  more difficult reprint projects.  Which leads to one of my favorite Johnson stories.  One such "rush" project (the rush was always to beat Kraus Reprint to the punch), was a large serial set of some public domain title, involving scores of volumes.  We needed to get 50 complete sets out of Arnold's Book Bindery (in Reading PA ASAP) and towards that end (and for other projects as well), I had to go to Arnolds from time to time on a small plane from Newark Airport.  I was also in frequent contact with them via phone from the office (remember, this is thirty years before emails and twenty before faxes).

Well, one of Johnson's favorite "management techniques" was to monitor activities through the two  Doberman Pinschers he had as receptionists/telephone operators. (There was no direct dial long distance -- all such calls had to be placed through the operators.) One morning I had to speak to Arnolds about that rush project and I asked one of the watch dogs to place the call and she said no.  I said, no? What do you mean?  And she said, Mr. Johnson said no long distance phone calls without his personal approval because our long distance bills were getting too high, goodbye.  I saw red and I grabbed the entire file on the project (everything was on paper of course so these files could be several inches thick), and I levitated (at least it seemed to me) down the stairs (his office was on the 10th floor, mine on the 11th) which meant passing the dogs at the desk (who smilingly glared at me, relishing their brief moment of power) and I approached Johnson's office, which had two doors, one from the hallway which had a red light over it and if the light was lit it meant he was in a meeting (the light was on that day) and could not be disturbed, and the other door from the editorial department (where Al Henderson was sitting).  I went through the editorial department and threw open Johnson's door and indeed he was meeting with some people I didn't know, and as I entered, he started to mutter, slightly outraged,  Bob, what is this?  I slammed the file on his desk and said, you want the books, you call Arnold's Bookbindery!  I walked out to the refrains of Bob, Bob, Bob! following my back out the door.

Of course by the time I returned to my office the thought occurred to me that I better start packing up my personal stuff as probably I'd be losing my job that very day.  Indeed, ten minutes later he called and demanded that I come back to the office, which I did.  But there he was at the switchboard castigating (mostly for my benefit) the Dobermans at the desk, saying over and over again "I didn't mean Bob!"  Although it was a vivid illustration of his divisive management techniques, I also think the incident was a lesson for him that his rough tactics did not intimidate me.  From then on, I never had any difficulty with him and if anything,  he treated me solicitously.

There was no question that Johnson was a brilliant publisher, from a publishing family, and Academic Press and Johnson Reprint, addressed a real need for scientific and academic information, producing new research material and bringing back out of print works to fulfill the insatiable appetite for such information, particularly by libraries who at that time enjoyed very lucrative government funded budgets. 

Although I learned a lot from my "accidental mentor" my relationship with Johnson and his firm was doomed as I had learned everything I could in production, moved on to head up the editorial department, and even though he named me an "Assistant Vice President" in November 1969, I could see the handwriting on the wall when Harcourt Brace Jovanovich entered the picture at the end of that decade.  I was solicited by a start-up competitor, Greenwood Press, headed by Harold Mason, a librarian who had briefly worked for Johnson's antiquarian division.  Johnson offered me raises, promotions, anything to keep me from the competition.  What he could not offer me was any kind of career path into original publishing, which is where I was trying to take some new JRC programs, but Harcourt blocked the way and even Academic Press was moving into the humanities and the social sciences where I was trying to go with their new "Seminar Press" (which Harcourt squashed anyhow).

My soon-to-be new wife, Ann, headed up customer service for JRC and Johnson's knee jerk reaction was to be suspicious of her -- she remaining at JRC while I went to a competitor.  He called her into his office to be interrogated and in the end we both had to assure him of the ethical standards we both adhered to and remarkably he accepted it.  As it turned out, it was only a couple years later that JRC was closed in spite of Bill Jovanovich's reassurances of continuing everything as before.  My decision was the right one and within a few years I was President of Greenwood Press and as I said, I would like to think that the better aspects of Walter's work ethic materialized in my own management techniques. 

At first we had little contact, but later he begrudgingly acknowledged my career progress and we used to chat regularly at Frankfurt, long after he left Academic but remained the largest shareholder of Harcourt which purchased Academic in 1969.  I think Ann and I were among the very few former employees at his funeral service in 1996, his working until he died at the age of 88, on the day of my 54th birthday.

Whereas Johnson had his redeeming virtues, another "publishing expatriate" that I dealt with during my career, Robert Maxwell, seemed to have none.  In fact he very much reminded me of Walter, but without the charm. He too ruled those who let him by fear and intimidation.  I had the unpleasant and totally unscheduled task of "debating" him -- I think it was 1972 or 1973 -- at one of the American Library Association's annual meetings

His company, Pergamon Press and ours were both caught up in heady days of microfiche reproduction of public domain government documents.  We had been filming all the Congressional Hearings to 1969 and we had rolled out a similar program for municipal documents.  Both Pergamon and Greenwood had started to tackle State Documents, so we were head to head competitors although both programs were still in their formative stages.  Each company had produced promotional literature describing its forthcoming program and the American Library Association had asked us to speak about them at one of their government documents sessions.  The editor of our program, however, was also the editor of our municipal project and he discovered, sort of at the last minute, that he had a conflicting speaking engagement about the municipal documents program and as that was much further along (and perhaps he didn't relish the thought of taking on Robert Maxwell who was to speak on behalf of Pergamon), I was thrown to the sharks with only a couple hours notice.  I had written the promotion piece myself so I was familiar with many of the details, but not all.  In any event, there I was, a thirty year old utterly inexperienced public speaker, having to face someone whose public speaking ability was legendary,  a former Member of Parliament with a booming voice, whose reputation preceded him.

The dreaded time finally arrived and I was shocked at the sea of faces attending this meeting, maybe a couple of hundred, a far larger crowd than I imagined.  Perhaps Maxwell was the draw and he was invited to speak first.  OK I said to myself, that will give me time to prepare any rejoinders if I need them.  He stood at the podium and held up the very brochure I wrote (not his own), the cover of which heralded "Solve All Your State Documents Problems -- acquisitions, claims, checking-in, cataloging, binding, shelving, retrieval." He silently held it up (it seemed like hours to me, but it was only for about 15 seconds) waving it back and forth so all could see.  (It was a June meeting, in Detroit as I recall. I had worn a Haspel Wash and Wear suit and I could feel the sweat trickling down my back.  I felt certain that pits of stain were forming under my arms.  Why was he holding up our brochure, not saying anything?)  Suddenly, in his bass English voice he boomed "Huckster!"  I blinked in astonishment (never having been called a huckster before, but thinking it must take one to know one).  He then went on tearing our program apart, saying nearly nothing about their own.  In a way it didn't surprise me, given his reputation and given both programs were "announcements" and in fact did not yet exist.  Easier to criticize ours than say something about their own.  He looked at me sitting in the first row with every thrust of his voice.

After about ten or fifteen minutes of my verbal whipping, it was my turn. I remembered the fear of whether my anxiety-induced sweat would be evident on my way up to the podium.  The crowd was clearly agitated by the tension Maxwell had created, some librarians uncomfortable about a verbal confrontation between the two of us.  Well, they didn't have to worry about me as I knew there was no way I could win that battle.  Maxwell knew it too and the smirk on his face showed his pleasure at having me where he wanted me.  

So instead of saying anything about the attack he levied, or defending our program in any way, or, forbid, attacking his, I basically went about my business of explaining our program, how it would work, the tentative nature of it at that point, and we would be eager to have their input as to the directions we should take.  In other words, I completely ignored Maxwell, as if he had never spoken.  Afterwards, librarians came up to me to thank me for not responding in kind. 

Any future contact between Maxwell and myself was confined to merely passing by one another in the aisles of Frankfurt or some other ALA meetings, one not acknowledging the other.  He died a mysterious death, presumably having fallen off his yacht in the Atlantic, after which it was discovered he had raided his company's pension fund to keep his publishing empire floating.

Another publisher profiled in the book is Fred Praeger whose parents failed to escape Nazi Germany and died in the gas chambers at Auschwitz, leaving a profound impact on Fred.  He ultimately formed Praeger Publishers and, with the help of CIA funds, began to publish the very successful "Special Studies" series that was squarely aimed at the threat of the Soviet Union.  One of his early successes was the publication of Milovan Djilas' The New Class which sold 50,000 copies, a work I had read in college and have a copy on my bookshelf ever since. 

In fact, to digress somewhat, many of these "immigrant publishers" shared a kind of Ayn Rand prospective on business and viewed any totalitarian regime with revulsion, particularly the Soviet Union at the time. I remember an amusing anecdote involving Walter Johnson in that regard.  On November 9, 1965 I was waiting for the elevator on the 11th Floor of 111 Fifth Avenue.  It was about 5.20 PM and out the window in front of the elevators, I was gazing north at the top of the Empire State Building as darkness gathered but the city and the Empire State were still ablaze in lights.  Suddenly those lights started to go out until the city was in darkness, the elevators had stopped and all lights in the building were extinguished.  I asked if anyone had a flashlight. No, no one did.  Then, I made my way downstairs in the dark to the 10th Floor.  Surely, I thought,  Mr. Johnson would know where there was a flashlight and perhaps what was going on.  He was frantic, listening to a portable radio and indeed, he had a flashlight and offered to lead everyone down the eleven flights to the street.  I remember going down the stairs with Mr. Johnson, the two of us leading a couple of dozen other employees, Johnson turning to me and moaning over and over again:  The Russians! The Russians!  It's an attack!  They've done this! Set in the context of how these immigrant publishers landed on the shores of the United States, the reaction was quite understandable.

So in light of that, it is utterly plausible for a Fred Praeger to embrace anti Soviet studies while conveniently accepting CIA funding.

My first personal encounter with Fred Praeger -  other than running into him at Frankfurt or some of the scholarly association meetings we both regularly attended -  was a day I spent with him at his Westview Press office in Boulder Co.  It was sometime in the Fall of 1984, not long after Publisher's Weekly had published a long article about me and I think Fred was curious about the competition but basically I think he wanted me to see his operation and pay homage.  Of course I was curious as well.  We competed with one another but had chosen different paths -- he trying to control all aspects of the business, including manufacturing, whereas my philosophical approach to publishing was to focus on bringing authors and markets together, leaving all manufacturing to subcontractors. 

We had a good day together and our relationship remained cordial until the end of 1985 when CBS Publishing put his former business, the eponymous Praeger Publishers, Inc. on the market.  We did preliminary due diligence on the business and so did Fred.  Sealed bids were submitted.  We won the right to complete the due diligence process and to negotiate a final price based on our findings.  During that process I had my regularly scheduled Frankfurt Bookfair rendezvous in October.  I ran into Fred. He was furious with me.  What right did I have to buy a company with his name?  What right!!!????  (The name of course was an inseparable part of the company.)

He stormed off and my contacts with him from then on at meetings were his menacing glares. He was a creative publisher, and I respected him, but he, too, could be a intimidating and difficult person. He sold Westview only a few years later.

There are other individuals mentioned or portrayed in Immigrant Publishers who I knew or dealt with, but not to the extent of the three I talk about here.  They were exiles from their homelands who immigrated to the US or the UK in search of security and entrepreneurial opportunities in publishing.  They were on the cusp of the information age and instinctively they seized that opening for new, thriving scientific, technical and social science publishing businesses.  They indirectly paved the way for what we now know as the Internet age (one wonders what they would have done with today's technology).  But it all harkens back to what constitutes knowledge.  As Charles Kegan Paul (publisher of Kegan Paul & Trench) said towards the end of the 19th century,  "It is by books that mind speaks to mind, by books the world's intelligence grows, books are the tree of knowledge, which has grown into and twined its branches with those of the tree of life, and of the common fruit men eat and become as gods knowing good and evil." 

These "immigrant publishers" gave rise to another generation of publishers -- I was among them -- ones that learned the ropes from these pioneers.  We in turn laid down the groundwork for the ubiquitous use of computers in publishing and anticipated on demand and on line publishing.  As that May 25, 1984 Publisher's Weekly profile concluded its article..."We're working on disseminating online information," says Hagelstein -- derived at first from books, but ultimately, he believes, to be online only....What Greenwood's whole approach seems to be leading to is that so-far elusive development we are always being told is in our future: books on demand.... Perhaps, in its own way and with all deliberate speed, [it] is pointing the way to the future of the book."