These “Days Before Yesterday” columns have a
lot of deja vu in them. For it seems, at least to this writer,
that most everything that happens either has roots or echoes
in the past and consequences for the future. That is especially
true of this particular column.
There are only a handful of things that are ABSOLUTELY
TRUE of the stock market. Two of them are that it goes
up and down and another that anyone who knows with certainty
what it is going to do next is either an insider, a salesperson
or a fool. With the fools in a clear majority.
Another that it is sort of a science, filled with cause
and effect, and hard data rather than emotion. So, just
like betting on the ponies at the track there are systems
to beat the game. I think it is about as scientific as
falling in love.
We have come to accept Black Thursday, October 24, 1929
as “the day the depression started.” That
is another untruth. It was an event, not a cause. Everything
was not coming up roses in September of that year, nor
did everything go plumb to hell in November of that year.
There was plenty of dry rot present to fuel the conflagration,
just waiting for an event to set it in motion. Just as
with World War I, a decade earlier.
One such indicator was the now forgotten stock market
collapse of March, 1926. On March 3 of that year, Wall
Street recorded the heaviest day of trading up to that
time as rail stocks fell out of bed. And rail was very,
very important in 1926. Nonetheless the tumble was confined
to rails–just as a recent rapid descent was confined
to Nasdaq and its tech stocks. But three weeks later,
on March 24 of that year, there was another huge sell
off reaching across a broad range of securities.
As for cause and effect, the March 3 nosedive in rails
was caused by a ruling of the Interstate Commerce Commission
refusing to approve a giant merger. The second nosedive,
on March 24, was triggered by an announcement of a planned
investigation of the oil industry. Scarcely earth shaking
events in themselves. The oil industry could probably
stand to be investigated most any time.
Two days later, on March 26, American oil companies bought
190,000 tons (unusual measurement for a liquid) of kerosene
from the evil empire itself, Communist Russia. What these
three separate events had to do with one another and the
market I leave up to the likes of Louis Rukeyser. I don’t
try to explain, I just report what happened with maybe
a little bias. Anyhow, as summer wore on, the market recovered
its equilibrium and went on to new highs, becoming cockier
and cockier until the big one in November three years
later–the one everyone remembered and earned the
title of “Black Thursday.”
So it appears to me that young lovers are probably as
wise and rational as market analysts. And I’m sure
they have more fun, old ones too. Jeannine and I have
dabbled in all three; young love, old love and stocks.
But not very scientifically in any of them. We have a
minimum of regrets in all three. Let’s move on.
There is a lot of 1926 left. For instance.
In April 1926:
Moslem-Hindu riots in India took several lives and destroyed
some mighty fine temples.
An Irish woman (they have spirit you know) took a shot
at Benito Mussolini, Italy’s Fascist dictator. She
was not a sharpshooter. All she did was clip his nose
a little. Too bad.
The German Republic, desperately short of money, tried
to collect seven million marks in unpaid taxes from the
Hohenzollerns, that distinguished royal family that had
given that country (and the rest of us) Kaiser Wilhelm
himself–the juvenile who lit so many of the matches
that led to World War I. I suspect their chances of collection
were about as good as that of the State of Indiana would
be if they were to sue the Studebaker Automobile Company
up in South Bend today.
The American Association of University professors issued
a report on football, claiming that it promoted drinking,
dishonesty and neglect of academic work. But not a word
about raccoon coats. Needless to say, coaches, fans and
players all across the country were thoroughly ashamed
of themselves. So, you see, there have always been extremists.
They are nothing new–more deja vu.
That already brings us well into May and June of ‘26–also
action packed, if you know where to look.
Great Britain was an unhappy island, held in the grip
of a general strike. It had started with the coal miners
and spread to all manner of businesses until it pretty
well had the country paralyzed for a few weeks. Stanley
Baldwin, one of these resilient politicians for life,
was prime minister. He even worried out loud about civil
war. Baldwin was well into his second watch at the helm,
from 1924–29. His last one was from 1935–37.
In May of 1926 he probably wished he had chosen another
line of work. Like farming with Suffolks in East Anglia,
following the plow instead of the polls.
For some reason the world’s adventurers became
obsessed with the North Pole. Our man in that game was
Richard Byrd, a Navy flier–product of a distinguished
old Virginia family. Byrd got his first taste of polar
flying when he commanded the MacMillan Arctic Expedition
flights over Greenland. It whetted his appetite for more
of the same. So, on May 9, 1926 he (then a commander,
later an admiral) accompanied by Floyd Bennett, took off
from the Spitzbergen Islands, north of Norway, and flew
a Fokker tri-motor aircraft over the pole, returning some
16 hours later. They were the first to do so, but not
by much.
A couple days later Roald Amundsen of Norway, accompanied
by an American and an Italian, took off from the same
place and did the same thing, dropping the flags of the
three nations right on top of Santa’s Workshop.
But they were in a dirigible, not an airplane. It was
called the Norge and did not return to Spitzenburg but
continued on over Alaska, arriving safely in Nome on May
13.
But I’m not through with Byrd because there is
a livestock connection with him. In 1928 he made his first
Antarctic expedition, establishing a base on the Ross
Sea ice shelf at the Bay of Whales. They called the base
Little America. And in November of 1929 he flew over the
South Pole–the first to fly over both poles.
His second Antarctic expedition from 1933 to 1935 was
much more ambitious, complete with many scientific research
projects–not unlike some of today’s space
missions. The Admiral (by then) himself manned an advance
base most of one winter which he describes in his book,
ALONE, published in 1938.
So what is the livestock connection? Karl Musser, whom
I had the privilege to know much, much later, was the
energetic young secretary of the American Guernsey Cattle
Club in the 20s, 30s and most of the 40s. Karl was a great
promoter. Of all the breed secretaries of his time, I
think he was the most effective. He also had the kind
of board of directors that carried a lot of clout in high
places. Guernseys, in that era, seemed to attract many
men of great wealth, position and power–like J.C.
Penney and others like him. So call this a publicity stunt
if you wish. Whatever it was, there were some registered
Guernsey cows taken to Little America on Byrd’s
second expedition. They were there to provide fresh Golden
Guernsey milk to the adventurers. I’m sure by the
time feed was flown in, it was fairly high priced milk.
And I’m absolutely sure that Karl Musser milked
it for all it was worth.
It had to be a Musser project, it has all the earmarks.
I have had a hands-on (the teats) relationship with both
Guernseys and Brown Swiss. I admire both breeds for different
reasons. But if I were going to take milk cows with me
to the South Pole they would be brown–not fawn and
white. They are tougher.
This is way off the subject, but it will never fit anyplace
else. By the time I knew Karl Musser his head was as free
of hair as a billiard ball. When he presided over a meeting
he would always have a cigarette either in his mouth or
his hand. To my recollection it was never lit. At least,
not when he was presiding or making a speech.
Many years after his retirement from Guernsey, I was
interviewed by the Guernsey board for Musser’s old
job. There were four of us–they took us in one at
a time, naturally. I recall, with great affection, the
director from New York state who, with a twinkle in his
eye, and knowing of my Brown Swiss background, said, “Mr.
Telleen, are Guernseys REALLY your favorite breed?” I
conducted a short debate with myself and replied, “Not
REALLY.” To which he responded, “Well, they
COULD BE, could they not?” And I responded, “I
reckon they COULD BE.”
I was not chosen for the job, a lucky day for both the
American Guernsey Cattle Club and me. I suspect I came
in 4th in a field of four and was comfortable with it.
I also recall Jeannine taking me to the airport to fly
east for the interview. She said (lovingly, of course) “You
know we are not moving to New Hampshire.” As has
often been the case, she was right.
And I also still recall that director from New York,
with both pleasure and affection. I think he even had
a few Clydesdales and became a subscriber. He was the
inquisitor with a twinkle in his eye, which is a very
good thing to have. In all honesty I did not want the
job, but I’m sure it would have been a very good
experience to work for and with that man–and to
know him better.
Well, as usual this is getting too long. That is what
happens when something turns into too much fun. So I will
summarize and move on to the livestock end of things.
There were a great many meetings held doing things such
as drafting schemes to handle old WWI debts, solve the
ever present farm problem, shore up certain currencies,
disarmament talks, League of Nations deliberations and
on and on. They were all very important and thousands
of cigars were smoked.
With that we will move to the old BREEDER’S GAZETTES
and breed papers that were new 75 years ago.
The April 1, 1926 BREEDER’S GAZETTE announced that
Barney Heide, long time manager of the then great International
Livestock Show in Chicago, had agreed to head up the livestock
show at the Sesquicentennial Exposition in Philadelphia
in September of 1926. He wasn’t about to quit at
Chicago but figured he could handle the Philadephia job
too, on a one time basis. The exposition in Philly, as
do all so called World’s Fairs, ran for months.
But the livestock shows at such things were of short duration.
We will tell you all about it in the next issue. Stay
tuned.
There was concern expressed that a lot of seed corn was
testing low in germination. R. T. Kirkpatrick of the University
of Missouri was quoted as saying that “only a small
part of the seed corn in Missouri this spring is safe
to plant.” The GAZETTE doubted that the bulk of
the seed corn in other midwest states was any better and
planting time would soon be at hand. Remember, this was
back in the open-pollinated era when farmers–for
the most part–saved their own seed.
The livestock markets, as reported by Jim Poole, who
watched them day and night, were neither exciting nor
disastrous. Horsemen were pleased to read in that issue
that “An active draft horse market had developed.
More good animals changed hands on the Chicago market
last week than at any time in the past five years.” Most
of them were going east and it is just possible that the
drastic curtailment for farmer breeding for several years
was catching up with the trade. Poole is quoted as saying
that “Good wagon horses are so scarce that a number
of Chicago concerns have disposed of their equine holdings
to replace them with motors, being unable to get the type
required; upstanding horses with good heads and necks
with the ability to step out.”
This was no major or sustainable recovery on the commercial
horse end. Trucks were still replacing horses on the streets
and, at a slower pace, tractors were replacing them on
the farms. But it is nice to have a break in the clouds
once in awhile.
I have raised sheep for 30 years and they have, on balance,
been OK. But, all that while, the average per capita consumption
of lamb has declined, as have sheep numbers and shepherds
generally. Wool, meanwhile, has become virtually worthless,
replaced by synthetic fibers. The modest prosperity in
sheep has been based on the scarcity of critters, rather
than widespread acceptance or growth. Same way with that
little surge in the draft horse market 75 years ago. It
was driven by lack of numbers.
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The show season was just around the
corner. . .
as it is now. So this is also a bit of a jump ahead
picture from the Percheron Review. The biggest
show of 1926 was, as is often true, at the Ohio
State Fair. Tom Corwin, Coalton, Ohio won the
three mature mare classes on three daughters of
Carnot. They are, from left to right, Carthel - 1st
prize 3 year old; Carene - 1st prize 4 year old;
and Carfait - 1st prize aged mare and senior
and grand champion. When it came time to lead
out for “Get of Sire” everybody else
was
showing for 2nd prize. A very nifty trio of mares. |
| |
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In the same issue (April 1) Archibald
MacNeilage, secretary of the Clydesdale Society in Scotland
said, “In spite of a cheering demand for heavy horses
for street traffic, the year 1925 saw little substantial
revival in horse breeding generally.” Sounds like
Chicago. He also expressed disappointment in their export
trade of only 106 head, 82 of them to Canada and only 3
to the U.S. in the year just past. Those paltry numbers
were not what the Scots had grown accustomed to, early
in that century.
More deja vu, this time about urban sprawl. The April
8 issue carried news of the sale of the famous Oaklawn
Horse Farm, the time-honored estate of 1700 acres at
Wayne, Illinois, near Chicago. It was owned by Wirth
S. Dunham, having been founded some 90 plus years before
that by his grandfather and made famous world-wide by
his father, Mark W. Dunham. If one man is entitled to
be known as “The Father of the Percheron breed
in North America” it is Mark Dunham. There are
no close competitors.
The 1700 acres were purchased by a real estate combine
and “will be subdivided and artistically landscaped
in keeping with the natural beauty of the farm, according
to the prospectus. The reported price paid for the entire
tract, which includes some land in addition to Oaklawn
is two million dollars. The new community which the promoters
expect to develop includes the present town of Wayne,
and will be named Dunham Woods, in honor of the family
which established the world famous reputation there in
Percheron importing and breeding.”
There were no eviction notices. This was not a foreclosure
sale. This is indicated by Wirth’s leisurely exit
from the Percheron business. He might have even been
part of the real estate combine that bought the place.
I would guess he had a substantial part of his wealth
in other things–as well as horses.
dunham
His full page ad in the 1926 PERCHERON REVIEW listed
46 matrons and several stallions for sale at private
treaty. In 1927-28, ads in the paper were much the same
and reminded folks that “Oaklawn has shown more
grand champions at the Chicago International than any
other exhibitor.” But the 1929 ad was different.
It was a half page, not a whole, and it announced a final
dispersal sale of 10 stallions and 25 mares on February
15 of that year. And with that the curtain came down
on the greatest single family saga in American Percheron
history.
Wirth Dunham was a very young man when, just before
the turn of the century, he was thrown into the breech
due to the untimely death of his father. He proved to
be a worthy son of a famous sire, playing major roles
in the affairs of the Percheron Horse Association, the
Horse and Mule Association of America and the city of
Chicago. It was certainly not his doing that he “inherited
the kingdom of the horse” at the very same time
that Henry Ford and others were founding their kingdoms,
dedicated to putting the horse out of business. In the
1920s the farm was used, in part, as an experimental
farm for International Harvester.
Several years ago Jeannine and I were visiting our oldest
daughter in Chicago. We needed something to do on a Sunday
afternoon so we took the elevated train up to Wrigley
Field, and then walked out past the ball park, due north
to an old cemetery that came highly recommended by Melany.
Talk about getting into an exclusive and upscale neighborhood–Wow!
Joe Pullman, founder of pullman rail car fame was there
in quite an extravagant setting. There were McCormicks
of the Farmall tractor and the Chicago Tribune tribe.
Mr Pinkerton, founder of the great detective agency had
chosen it as his final earthly abode and had even found
room on his lot for some of his trusty agents who had
been killed in the line of duty. The tombstones read
like a “Who’s Who” of old Chicago money.
I can’t remember every slab of marble but I think
we even saw the ghost of former Governor, (and once would-be-president
of the U.S.–he was president of the Holstein Friesian
Cattle Association) Frank Lowden, skulking around behind
a tree. I also do recall one Adams from Massachusetts
who had taken Horace Greeley’s advice and “gone
west and married well.” And you know what? There
were a few Dunhams there too. Not the Oaklawn ones we
know about, but Dunhams nonetheless.
Another time we dawdled out at Oaklawn itself. The stables
were occupied by light horses. It appeared to be headquarters
for a Hunt/Jump club of some kind. On one of the walls
in a barn office hung the pedigree of Pink Brillante,
grand champion Percheron mare at the 1916 International,
bred and shown by Dunhams. As for Mark Dunham’s
famous old house (built to resemble one he had admired
in France), it was there too–but is now a private
residence. It was and is called Dunham’s Castle
and it looks like one. In the not too distant past it
has been featured in the Chicago Tribune.
There you have it–a low cost one day “vacation” in
Chicago’s north end and out by Elgin. A few hours
at a cemetery populated by the rich, famous and forgotten,
with elevated trains rushing by every few minutes and
then out to Dunham Woods. It can be done on the cheap.
I have half a notion to offer it to some perky little
23 year old in a travel agency just to see if she thinks
I’m certifiably insane. Of course, things may have
changed–these daring excursions of ours took place
15-20 years ago.
Professor H. H. Kildee, head of the animal husbandry
department at Iowa State sailed from New York on May
1, 1926 on a three month leave of absence. He was accompanied
by Professor Ferrin from the University of Minnesota.
The main mission was to study the Danish system of swine
production and breeding, but also included extensive
travels in Great Britain, France, Belgium, the Netherlands
and the channel islands–checking out the home lands
of nearly all breeds of livestock important to Iowa and
Minnesota farmers.
I also tossed in a little ad from W. S. Corsa’s
Gregory Farm (April 1, 1926 BREEDER’S GAZETTE)
that does not so much as mention either Percheron horses
or Berkshire hogs. He was famous for both. Corsa belongs
up there with the Dunhams in our pantheon of heroes of
the barnyard. Best known for his Percheron stallion,
Carnot, he was also involved–as president of the
Illinois Swine Producers–in developing a hog cholera
serum on his farm as well as producing great Berks. He
operated a lab on his farm for years. We livestock producers
have a great heritage, populated with our own Washingtons,
Jeffersons and Lincolns. We are not just farmers and
never were. As the rural areas of the country empty themselves
out of people, I’m not sure what we are becoming,
other than scarce.
There were a lot of sale reports, primarily of cattle,
in the May and June issues. The GAZETTE said that purebred
prices were “trending upwards” in both the
meat and milk breeds. But the best sales, in terms of
top dollar animals, were found in the Guernseys and Holsteins.
Four figure animals were plentiful in both those breeds.
The GAZETTE’s June 10 issue was jubilant. Secretary
of Agriculture Jardine announced that the federal government
was going to standards and a grading system for meat.
This was something that paper had harped on and worked
on for years. The day of prime, choice, good, etc. through
five grades of fresh meat going to the consumer had finally
arrived. During their campaign the GAZETTE had made many
references to “cat meat” for the bottom of
the ladder, but the government did not adopt that language.
Anyhow, the editors felt victorious. They were sure this
would reward the producers of the best grades, while
at the same time protecting the consumer.
I will close out 75 Years Ago with one final obscure
little note from a column called “What They Are
Doing” from the June 17, 1926 issue.
“The federal department of agriculture has announced
that on June 10, 1926 all domestic quarantines on account
of foot-and-mouth disease were revoked. This applies
particularly to California where certain areas have been
under supervision as a precautionary measure. No recurrence
of the infection has been detected in California within
the 12 months ending June 10. The United States is now
free of foot-and-mouth disease.”
The very next paragraph announced that effective on
May 7, shipments of cattle, sheep, goats, other ruminants
or swine, and hides, skins or other animal by-products,
hay, straw or other feeding materials originating in
a certain portion of Mexico or shipped through those
areas, would be denied entry into the United States,
as the disease did exist among livestock in that region
of Mexico.
My old friend from California, Clarence Dudley, says
he recalls the last outbreak of foot-and-mouth disease
in our country. It was in California and occurred in
1929. He ought to know. He was there. He does not recall
it as being widespread and was very limited geographically.
With all the current furor about the devastation that
British livestock producers are going through at this
time, I thought it timely to reproduce a couple pages
from my 75 Years Ago column of twelve years ago, concerning
our bout with it in 1914. That one broke out in the worst
possible place, the Union Stockyards in Chicago. In addition
to a good bit of financial loss and heartache, this disease
resulted in the cancellation of the 1914 and 1915 International
Livestock Shows. Everything was being shipped by rail
and it really raised hob with interstate commerce.
HERE ARE THOSE TWO PAGES FROM ‘75 YEARS AGO’ IN
THE WINTER 1989-1990 DHJ
In late October, the ninth National Dairy Show opened
at the International Amphitheater in Chicago. It was
a great show, preceding the show of beef cattle, swine,
sheep and horses in the same place by about a month and
the November 5th issue of the GAZETTE carried on for
several pages about the scope and wonder of it all.
Toward the end there was one little disturbing paragraph
in that report that read as follows: “As a precautionary
measure the Department of Agriculture placed the Union
Stockyards and all the cattle in the National Dairy show
in quarantine for a week, on account of the outbreak
of foot-and-mouth disease in Michigan and Indiana. The
disease has not been found in the stockyards, but it
is feared that quarantine was rather loose in Indiana
immediately following the outbreak, and on account of
the insidious nature of the disease, it was deemed best
to hold the show cattle in their stalls until November
7th. Release is promised on that date, unless complications
appear. A disposition to murmur was at first apparent
among exhibitors but they finally accepted the assurance
of the officials that the embargo was merely of a precautionary
nature, and realized that release at the end of the week
amounted to a clean bill of health from the Federal authorities,
which would be worth all that the detention had cost.”
That turned out to be a very long week indeed. The disease
was probably already present in the great Chicago stockyards
when the quarantine was issued– along with the
rosy promise that it was merely a “precautionary
measure” and “you can all go home with a
clean bill of health in a week.”
That show cattle quarantine proclamation was issued
on Thursday, October 29. By the following Sunday one
of the show cows was moved to the hospital as probably
infected by foot-and-mouth disease. By Tuesday the disease
was plentifully evident in the stocker section of the
yards, and the movement out of the yards of all stockers
and feeders was stopped.
In a matter of days, parts of fourteen states (all in
the Midwest) were under quarantine and the big Chicago
and St. Louis terminal markets were closed. The American
Royal in Kansas City and the International Livestock
Show in Chicago, scheduled to take place within the month,
were cancelled.
The disease had made its first appearance at Niles,
Michigan, and it was supposed to have been carried to
the great Chicago stockyards in a carload of cattle from
that area. Every shipment made from those Chicago yards
to the country for three weeks prior to the discovery
of the disease, was traced by state or federal inspectors.
Cattle from the yards were located in 50 counties in
Illinois and centers of infection had been reported from
half of them. At first only the infected farms were placed
under quarantine, then entire counties. To say that panic
reigned in the markets, and out in the country, would
be an understatement.
The policy of control was quarantine and mandatory slaughter
with the highest appraised value of $75 per head, with
the state paying half and the federal government the
other half. The 800 show cattle were exempted from the
slaughter provision due to the high regard in which the
purebred industry was held and the political clout of
the wealthy owners. Eventually virtually every one of
those 800 animals had the disease, generally in a mild
form followed by recovery.
It was a case of the animal industry “mobilizing” for
a war against the disease, not unlike what Europe was
going through militarily. The dislocations radiated out
in many ways in those confused and fearful weeks of November.
Killing plants in stockyards at places such as Detroit
and Indianapolis, outside the quarantine area, made a
quick killing. Not unlike Exxon’s price hike of
gasoline following the oil spill debacle in Alaska recently.
The GAZETTE commented that “producers have had
a taste of what commercial conditions would be if interstate
traffic were interfered with for any length of time.” In
areas that were still killing, lightweight stuff was
hurried to slaughter by many frightened feeders.
For a few weeks attention was diverted from the war
in Europe–our livestock industry had a war of its
own to wage. But our war against this disease was to
be of much shorter duration. By year’s end the
entire states of Michigan and Indiana were released from
quarantine for shipment of livestock to slaughter, but
in counties where the disease had appeared, a federal
inspection before loading on the rail cars was obligatory.
The December 24 issue reported that “The cattle
in the National Dairy Show barn were in splendid condition.
No cases of reinfection have occurred. One bull that
had gamely withstood the disease turned up a blistered
nose to inspection last week. It was about the last of
them.” Most of them had it in a mild form and quickly
recovered.
Since foot and mouth disease is fatal in only from two
to five percent of the cases, and the cooked meat and
pasteurized milk from infected cows is safe to use, and
little danger existed of the transfer of the disease
to people, you might wonder why such draconian measures
were taken. The federal inspectors decided on the slaughter
plan because it is so infectious and farm quarantines
did not work. The consensus was that it was cheaper and
safer to kill entire herds than to quarantine them until
all danger had passed. The GAZETTE concluded (on Dec.
3, in their defense of the policy) with: “the great
point is that it is not so dreadful a disease itself,
but that it spreads like wildfire.”
Most of South America, and much of Europe, simply “lived
with the disease.” Since it affects only cloven
hoofed animals, it does not afflict horses. Nonetheless,
as one writer pointed out, it was not wise to use the
same ships to bring draft stallions over as cattle and
sheep.” His point may have been well taken but
the plain fact of the matter was that the days of massive
importations of both cattle and horses were over anyhow.
In due time the National Dairy Show cattle were transferred
to special quarters at the Hawthorne Race Track. You
can be sure there was a lot of grousing from farmers
who had seen their entire herds buried in lime pits on
their farms about this “special case.” (Sort
of like a Chrysler bail-out . . . the more things change,
the more they remain the same.) Maybe that is why when
the disease appeared in E.M. Barton’s great Sedgeley
Farm Brown Swiss in Hinsdale, Illinois, the entire herd
was slaughtered on the farm in spite of vigorous protests.
It was probably the top herd of the breed at the time
and all that remained after the “plague” was
his show herd which had been in quarantine. This was
quite a setback to the Swiss breed, which was very small
in number.