Just About Everybody vs. Howard Hughes

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The Book of the Week is “Just About Everybody vs. Howard Hughes, The Inside Story of The TWA-Howard Hughes Trial” by David B. Tinnin, published in 1973.

In the 1930’s, Howard Hughes inherited his father’s oil-industry-equipment company, Toolco, which sold a unique, patented, lucrative drill. By the early 1950’s, Hughes had become a pilot passionate about acquiring jets (whose engines had technology that was obsolescing pistons) for his airline, TWA. He was an alpha male whose desire for control of his company led to decades of complex litigation involving age-old economic and political issues.

As American society became ever more capitalistic in the Postwar Era, businessmen hired more and more attorneys to wield more and more power and influence. They sought to change the tax laws to make more and more money.

Hughes was a victim of his own success in that he was using highly leveraged, deficit financing to purchase the new jets through his Toolco. Into the 1950’s, individuals (rather than their companies or employers) were the ones responsible for debts if they needed to borrow money for their businesses. This economic condition has come full circle with tech startups.

Hughes borrowed from banks and insurance companies, but by the late 1950’s, his debt was so high, they refused to give him special treatment. He used dirty tricks (which arguably weren’t illegal but were unethical, at best) to order jets from a few different suppliers.

Hughes’ incestuous business transactions generated an escalation of commitment among various parties, who were averse to losing even more money if they withdrew from their ongoing deals with him. Need it be said, there is nothing new under the son (or sun– either one). In the early 1960’s, his creditors terminated his borrowing privileges and created a voting trust that took control of TWA. Neither side wanted to see TWA go bankrupt. There were, of course, other wrenches in the works, which are too numerous to mention here.

The orgy of litigation resulting from Hughes’ business activities triggered a very controversial legal and economic issue. Hughes owned 78.23% of the voting stock of TWA, which was financially affiliated with his Toolco. At that time, TWA shares were not owned by the general public. His side argued that he should be allowed to control his companies as he saw fit, because he had a controlling interest in them. On the other hand, he really didn’t own them– his creditors did!

Besides that, if TWA went belly-up, there would be far-reaching economic consequences for many stakeholders. All employees of TWA would lose their jobs, competing airlines would benefit financially, contractors supplying jets and their parts to TWA would lose a customer, Hughes’ lenders would lose megabucks, etc., etc., etc.

According to the book (which appeared to be credible although it lacked Notes, Sources, References, and Bibliography), in June 1961, the big lawsuit initially launched in federal court in the Southern District of New York against Hughes was named TWA v. Howard Hughes. TWA charged Hughes with making special deals with third parties that led to financial harm for TWA. He tried to keep competing airlines from buying jets he wanted for TWA, through monopolistic practices.

BUT, due to disastrous losses (from a downturn in air travel that prompted proposals of various airline mergers, and his tax-evasion tricks), Hughes chose to cancel a portion of jet orders for TWA. Under his crushing debt load, he couldn’t afford to pay for all of his purchases. So the airline couldn’t stay competitive in the commercial airline industry. Other airlines were purchasing jets sooner at lower cost. Hughes’ series of attorneys through the years, of course used all manner of shenanigans (through: filing a blizzard of documents with creative legal arguments, counter-suing and appealing rulings) to delay the case.

One last-minute development that aided Hughes’ attorney before Hughes would be charged with contempt of court yet again, was a curious January 1963 Supreme Court ruling regarding jurisdiction in connection with a monopolistic entity. There was a little federal agency called the Civil Aeronautics Board (CAB), that had been regulating the airlines. The attorney repeatedly tried to get the case against Hughes dismissed– by arguing that CAB, rather than a federal court, should have been trying Hughes’ case.

Read the book to learn every last detail of this suspenseful story that spawned reams of tabloid fodder, but also greatly impacted the legal, economic and tax cultures of corporate America.

Our House – BONUS POST

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Here’s a little ditty that summarizes events of the past week or so in the United States House of Representatives.

OUR HOUSE

sung to the tune of “Our House” with apologies to “Madness” (the band).

McCarthy sold-his-SOUL, feeling pressed.

Reps are tired, they need a rest.

The committees are plotting beHIND closed doors.

The Caucus’s power took a LEAP. [ah-ah-ah]

Biden holds an olive branch, his legacy is now.

Our House, in the middle of the heat.

Our House, in the middle of the–

The Caucus was uncowed.

Males are always power-struggling and they’re usually quite proud.

The Speaker went-fifTEEN-rounds.

Only concessions slowed him down but defeat was not allowed.

Our House, in the middle of the heat.
Our House, in the middle of the–

Our House, in the middle of the heat.

Our House [Tabloids tell us that the radicals took hold of it.]

in the middle of the–

McCarthy rejected-the-Jan.-6 panel’s work.

His base didn’t know, whom to desert.

Then he wanted to probe the probers.

See him long-to-stay where Trump’s YOKE is. [ah ah ah]

Pelosi’s the one they’re going to miss in lots of ways.

Our House, in the middle of the heat.
Our House, in the middle of the–

[I remember way back when, men had honor

and the world didn’t have so very MANY spies.

No more PRIvate lives.

Such a FREE time.

And I remember how we’d live, simply face to face,

used our brains.

Software wouldn’t come between us.

No Tweeters.]

McCarthy sold-his-SOUL, feeling pressed.
Reps are tired, they need a rest.
The committees are plotting beHIND closed doors.
The Caucus’s power took a LEAP. [ah-ah-ah]
Biden holds an olive branch, his legacy is now.

Our House, in the middle of the heat.

Our House, in the middle of the heat.

Our House, in the middle of the heat.

Our House, in the middle of the–

Our House, we need IT for demo-cracy.

Our House, in the middle of the heat.

Our House, that is where some people sleep.

Our House…

Black Box Thinking

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The Book of the Week is “Black Box Thinking, Why Most People Never Learn From Their Mistakes– But Some Do” by Matthew Syed, published in 2015. This volume attempted to answer the question: “How does failure-denial become so deeply entrenched in human minds and systems?”

The author described two ways of thinking:

1. Some people believe their abilities are fixed, so they won’t improve with practice. They have fear of failure, and make excuses and / or blame others for their failures.

2. Other people believe they can get better with practice, and they are honest about admitting they have made errors. They learn from them. Success is achieved only through trial and error, hard work and persistence.

Number 1 above is also described in the following quote from Bertrand Russell: “There is something feeble and a little contemptible about a man who cannot face the perils of life without the help of comfortable myths. Almost inevitably some part of him is aware that they are myths and that he believes them only because they are comforting. But he dare not face this thought! Moreover, since he is aware, however dimly, that his opinions are not rational, he becomes furious when they are disputed.” Yet another way of putting it is “hubris syndrome.”

Two of America’s recent presidents– George W. Bush and Donald Trump– were this kind of thinker. According to the author’s thesis, they succeeded against the odds (if success is defined as getting elected president), considering that they were blind to their own character flaws.

BUT– their common beginnings saw them through: They both began with the special advantages of inheriting money, mentors, lawyers, and valuable career and political contacts. They proceeded to fail upwards until they reached their peak “Peter principle” level, kind of like the joke: How do you make a small fortune in Israel? Answer: Come with a large one.

The author drew parallels between the topic-areas of aviation and healthcare delivery. These involve life-and-death scenarios when things go extremely wrong. However, that is where the similarities stop. People who have shaped the evolution of aviation have built up a knowledge-base that has served to produce lower and lower death tolls when catastrophes have occurred; powerful, influential people working in healthcare have been stubbornly resistant to adopting measures that would result in a drastic reduction in unnecessary deaths.

The author cited real-life examples from Great Britain and the United States. But there are other major reasons why his comparison is mostly invalid. These involve lawsuits, unions, government regulations and the political climate at the time of the disasters, and the following:

Obviously, workers in aviation have more of an incentive to improve safety, because in a disaster, many more people might die all at once in a plane crash, compared to the one patient on an operating table or examination table. Even if members of the flight crew survive a disaster, their careers are likely over. Even when doctors are at fault, they usually continue their careers.

The author discussed the pros and cons of just-culture versus blame-culture. He described the latter thusly: “It may be intellectually satisfying to have a culprit, someone to hang their disaster on. And it certainly makes life simple.”

The author recounted how a public-relations campaign can fool even intelligent people into believing a particular method of crime-prevention among young people, works wonders. The only way to debunk such a myth is through numerous Randomized Control Trials.

Read the book to learn about additional concepts surrounding psychological self-deceptions that humans employ in order to avoid admitting failures: cognitive dissonance, narrative fallacy, top-down versus bottom-up product development, various biases, and others.

The Courage to Survive – BONUS POST

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The Bonus Book of the Week is “The Courage to Survive” by Dennis J. Kucinich, published in 2007. This raw, emotional, personal story was similar to those of: journalist Joe Queenan (Closing Time), and teacher Tara Westover (Educated).

Born in October 1946 in Cleveland, the author had a difficult childhood in an ever-growing, poverty-stricken family. His mother was of Irish ancestry; his father, Croatian. The latter was a mean, physically abusive drunk. In his daily life, the author was fortunate to receive guidance and life-lessons from community role models such as his parents, teachers, coaches, his many relatives, (Catholic) priests, godparents, etc.

Nevertheless, the author’s take on life by the time he reached his teens was as follows: “The violence I witnessed at home percolated … I was ready to unleash it, but not in the street… What do you do when you are a kid and you feel violent? Do you look in your neighborhood for people to beat up? Do you vandalize? Do you just plain raise hell?”

More and more in America, such young males who feel like powder kegs pick up firearms and shoot innocent strangers or rival gang members, or engage in cyber attacks and fraud. Instead, if they are lucky– their anger is channeled into competitive sports, the military, performing arts, or politics.

Read the book to learn about the forces that shaped the author’s start in politics.

Sandworm

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The Book of the Week is “Sandworm, A New Era of Cyberwar and the hunt for the Kremlin’s Most Dangerous Hackers” by Andy Greenberg, published in 2019. In this eye-opening volume, the author provided the backstory (out of chronological order, in a confusing, cherry-picked way) on how and why Russia has become the world’s biggest disrupter of society yet again through a new method. “Sandworm” refers to the Russian hackers who perpetrated cyberattacks. The author implied that knocking out power grids was one new way to destabilize target nations. But this is NOT a new idea.

Anyway, as is well known, in recent decades, for various reasons, Russia’s leader, Vladimir Putin, ordered his military to attack Estonia (in 1999 and later), Georgia in 2008 (yes, Soviet Georgia– not the American state), and Ukraine. These offensives were accomplished not just on the ground, but also through technology. Ukraine’s election process and electric power were both seriously damaged through the Internet.

In the United States, various federal agencies fight for the power to set policy on the country’s cybersecurity: FBI, Department of Energy, Department of Homeland Security; plus the U.S. military, North American Electric Reliability Corporation, and SANS Institute.

During the George W. Bush administration, America and Israel started a secret project to develop virulent malware that could wreak cyberwar on their enemies, but whose main purpose was to stop Iran from making nuclear weapons.

During the Obama administration, a young, bright Air Force officer was hired to build a cyber-security department from the ground up, within the NSA. However, he got disgusted with the abusive hierarchy of the American military, as new recruits’ talent was wasted because the status quo dictated that they pay their dues.

Meanwhile, after years of work, investigators found evidence that the Russians were to blame for penetrating America’s technology infrastructure in 2016. Even conservative radio-show host Rush Limbaugh jumped on the bandwagon, saying, “It was an acrylic [sic] keyboard!” [He meant Cyrillic].

In 2017, Britain’s National Health Service was disabled via malicious software code that demanded a small amount of bitcoins as ransom. Other entities hit included a German railway, a Russian bank , colleges in China, police departments in India, and malware called “NotPetya” that did a number on Ukrainian civilians who were really inconvenienced in living their everyday lives.

In sum, it’s deju vu all over again in terms of a Cold War arms race involving Russia, China, North Korea, Iran and the U.S. This time, though, the weapon is technology and the threats are made by numerous worldwide terrorist cells who can hack a target’s infrastructure and its political system (like with online voting in Arizona and Illinois) whenever their territory’s leader commands them to do so. Another difference is that the kinds of cyberattacks seen thus far are akin to one aspect of Nazism: sowing social unrest (rather than killing people; not that the Nazis didn’t also do that) to bring a nation down. Damage done by psychological harassment from foul play via the Internet is economically incalculable and extremely difficult to regulate because it is international.

As is well known, through the twentieth century into the new millennium, information sources evolved from newspapers, magazines, books, and radio, to television, cable television, and then the Internet. Currently, Google and social media can serve as news aggregators, but more often, they are for-profit propaganda tools, just like all the aforementioned media. Most Americans think of movies as entertainment rather than as a source of news or education, but in the Postwar Era, they have also become for-profit propaganda tools.

But take heart, America! There is at least one area of optimism that will help this country’s democracy continue:

Compared to now, there was as much as or even more social unrest in this country in 1968. Before and after, the nation suffered through two dictatorial presidents in a row— LBJ and Nixon– who were recruiting all men of military age; many against their will, to fight in Vietnam, Cambodia and Laos in a war that was extremely expensive in so many ways. They sowed social unrest among their own people. America has not had two such presidents in a row since.

Even so, LBJ was kind of schizophrenic because he helped pass major civil-rights legislation. However, his ego wouldn’t let him order a stop to the war. Nixon went all-out on lies and deception, wreaking vicious political vengeance on his perceived enemies because he didn’t think he’d ever get punished. As journalist P.J. O’Rourke commented, beginning in the mid-1960’s, the Baby Boomers threw “a decade-long temper tantrum.” But now, their generation is wise to political shenanigans of decades past.

In 1972, voter apathy was so severe that Nixon was reelected in a landslide. Nowadays, voter turnout is at an all-time high. This is cause for celebration. Americans are starting to understand why voting is so important: it shows they believe in the democratic process (regardless of for whom they vote). A significant number of voters are required in order for democracy to work. When a dictatorial leader senses the people aren’t paying attention to what he’s doing, he will take advantage of that to acquire more power. He’s more likely to do the people’s will when he sees their anger is close to reaching critical mass.

On that note, read the book to learn much more about the author’s alarmist take on the global cybersecurity situation.

The Emergency

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The Book of the Week is “The Emergency, A Year of Healing and Heartbreak in A Chicago ER” by Thomas Fisher, published in 2022.

At the start of the COVID-19 pandemic in 2020, friendly bedside manner disappeared in the Emergency Room of the author’s employer, a medical center affiliated with the University of Chicago, on Chicago’s South Side. The author, a medical doctor, was tasked with judging whether to put newly arrived patients on ventilators.

Already a stressful place, the Emergency Department was put under excessive tension when an edict was issued that everyone entering the building was required to cover his or her mouth and nose (with any old piece of germy fabric or a plastic shield; most wore the fabric). The authorities perpetuated the scientifically questionable assertion that covering one’s face (with anything) would stem the spread of disease.

BUT, requiring the country’s entire population to wear medical masks would be impractical and unenforceable. There wouldn’t be enough medical masks for everyone; meaning, masks that would filter one’s toxic exhalations, allow one to breathe relatively easily, while presumably, disallowing most germs from entering and exiting one’s mouth and nose. So, instead, across the country, there was rampant abuse of power by numerous officials in controlling the population with petty, dishonest mask-orders.

Anyway, a nearby Chicago hospital had no more ventilators, and another had only three on hand. A patient might not have COVID, but still might be struggling to breathe because she had heart failure from postpartum cardiomyopathy. The author decided to treat a young patient such as this one with magnesium, additional Lasix and nitroglycerin instead of a ventilator, because she would be more likely to survive than an older patient in poor health who had severe COVID.

“Still, too many physicians and scientists accept that the inequities around us emerge from inside the body we treat, rather than in relation to prevailing societal structures or systems… But it is society that shapes the population-wide patterns we see.”

This volume presented, in a series of anecdotes on the patients admitted and treated by the author, reasons why this country desperately needs NATIONAL HEALTHCARE. It is the right thing to do at this time in history. Other reasons can be found in this blog’s posts:

Morphine, Ice Cream, and Tears. (sic); Chasing My Cure; Clinging to the Wreckage; and I Shall Not Hate.

Read the book to learn of the physical and psychological traumas suffered by not just patients, but also caregivers, that could be prevented or minimized by improving policies in national healthcare in the United States.

The Vortex

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The Book of the Week is “The Vortex, A True Story of History’s Deadliest Storm, an Unspeakable War, and Liberation” by Scott Carney and Jason Miklian, published in 2022. This multi-faceted story involved a massive number of deaths due to (cue the dramatic music): the Great Bhola cyclone (what would be called a hurricane in the Western Hemisphere), a cholera epidemic, dictatorial political shenanigans, atrocities and genocide; plus heroic international aid workers who were horribly hindered in their disaster-relief efforts. Sorry, no romantic subplot– this wasn’t a movie; all of this actually happened within the space of about three years. But at the end, there was the founding of a new nation, called Bangladesh.

Even decades after geographic separation of various religious and ethnic groups into: A) India, and B) a sovereignty of two discrete land masses (East and West) that comprised newly formed Pakistan in 1947– hostility still reigned. In Pakistan, anger and resentment simmered between the Muslim Punjabis in West Pakistan who spoke Urdu, and the Hindu Bengalis in East Pakistan (which became Bangladesh), who spoke their own language.

In the mid-1960’s, general Ayub (“Yahya”) Khan, who became Pakistan’s leader in 1969 [For more information, see this blog’s post, “The Rape of Bangla Desh”], ordered Pakistan’s military to attack India. The United States imposed economic sanctions on both Pakistan and India for childishly fighting. Pakistan allied with China. India allied with the then-USSR.

In August 1969, American president Richard Nixon tapped Yahya to be the contact to introduce him to China’s leader Mao Tse Tung. In exchange, Yahya wanted to purchase arms for Pakistan. Nixon violated the then-arms embargo against Pakistan to sell it armored personnel carriers and B-57 bombers.

In 1970, there occurred a quantum leap in hurricane-forecasting technology what with a new satellite called ITOS 1 that gathered real-time data on the Northern Hemisphere for the National Hurricane Center. Nevertheless, because they had no clue a storm was coming (the new forecasting technology had yet to reach Central Asia), almost all local residents drowned when the Great Bhola cyclone hit the delta near Manpura island in November 1970. A month later, fifty million Pakistanis were voting for the first time in their lives.

A few months later, American weapons were killing the Bengali people. Nixon was supporting Yahya. The latter’s military leader whipped up a Nazi-level frenzy of hatred against the Hindus, massacring them with .50 caliber machine guns and destroying– via American M-24 Chaffee tanks, jeeps and F-86 jets– key communication, political, educational and law enforcement structures in the city of Dacca in East Pakistan.

Unsurprisingly, all of the above was accompanied by a boatload of radio propaganda put out by Yahya’s side. But later, radio broadcasts helped the Bengalis. Anyway, Nixon aided and abetted Yahya in various additional ways to achieve his own political aims. Refugees fled to India, and where, counterintuitively, military camps trained Bengalis (technically Pakistanis) to resist the Pakistan Army. Indians had always been sworn enemies of Pakistanis. Still, it was in India’s best interest to see the Bengalis win the war and break up Pakistan.

There have occurred countless historical tapestries such as the aforementioned in which a complex bunch of circumstances resulted in millions of deaths; one thing led to another. The authors argued that the especially severe cyclone played a major role in giving scheming politicians an excuse to abuse their power even more. They asserted that more severe storms are occurring due to the earth’s changing atmosphere, and such natural disasters in turn trigger a series of events that increase global conflicts.

BUT, arguably, global conflicts have waxed and waned throughout history, regardless of natural disasters. There are four major causes of global conflicts (that are present in different combinations):

  • fighting over limited (and /or exploited) resources;
  • tribal hatreds;
  • religious hatreds; and
  • territorial disputes.

Present-day events (!) have shown that humanity is making slow, slow, slow progress towards a total net amount of good versus evil on earth– even with all the advances in early-warning systems for disasters and the striving for more widespread humanitarian activities. Cases in point: once-Communist countries have changed for the better in certain ways in the last thirty years, and there is less colonialism in the world than there used to be.

Unfortunately, advances in technology and charitable aid still trigger profiteering and political exploitation with their attendant propaganda. Alpha males with hubris syndrome with their greed and power-hunger still rule most of the world. Bottom line: human nature doesn’t change, but globally, human beings overall, are evolving.

Anyway, read the book to learn many more story-details, involving: how Nixon (and his evil sidekick Kissinger) came extremely close to instigating a nuclear war against the USSR in the Bay of Bengal; the fates of various political and military leaders; and the hapless common people of Pakistan, and the aid workers who passionately tried to help them.