A Forgotten Stock Market Scandal from the 1920s
Publication Year: 2013
Published by: Syracuse University Press
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Front Flap, Title Page, Frontispiece, Copyright, Dedication, About the Author
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List of Illustrations
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They say that history is written by the winners, but maybe it should not always be about the winners. The losers, especially the ones who had what it takes to win, can be fascinating. That idea certainly applies to the L. R. Steel Company, founded in Buffalo in 1919 and bankrupt by 1923, leaving sixty thousand investors about twenty-six million dollars poorer. ...
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Buffalo and Erie County Public Library. The Grosvenor Room has a large and well-organized collection of newspapers, scrapbooks, and city directories that I used extensively. The local history card catalog had several items about L. R. Steel. ...
1. The Man Who Did Almost Everything Right: The Right Business at the Right Time in the Right Place
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In the early 1920s, Buffalo residents saw plenty of well-dressed “Steelites” driving new cars and eating at the best restaurants. Their offices had fresh flowers every day. And they all had a certain peppy attitude, possibly from the motivational meeting that started each day at the office. ...
2. The Creative Promise of the L. R. Steel Company: Ten Thousand Lollipops
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L. R.’s Big Idea was not his only idea. This energetic visionary was full of ideas, many of them good. But he was not just a visionary; he actually implemented many of his ideas in the company. His creativity was evident throughout his enterprise. ...
3. Inventing the Infomercial: Fifty Endings
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Leonard Rambler Steel came of age along with the motion picture industry. His birth in 1878 was almost coincidental with a technical insight that demonstrated the possibility of motion pictures. ...
4. The Life of a Salesman at the L. R. Steel Company: “How’s Yer Pep?”
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“Steelites” could be found anywhere; churches, theaters, restaurants, and, of course, at your doorstep. They gave people the opportunity to become part of a cheerful organization by owning shares in Steel’s. These “Steelites” were the heirs of the Liberty Bond Four-Minute Men who approached strangers with patriotic zeal. ...
5. The Stores: The Best Fifty-Cent Chicken Dinner in Canada
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The good things in life were never more abundant than at the start of the Roaring Twenties in North America. L. R.’s personal calling was to bring this abundance to the average family. Things that would have been unimaginable luxuries in prior days were now “everyday miracles”: radios, toasters, washing machines, electric lights. ...
6. The Denver Miracle: “Meet Me at Steel’s Corner”
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The Denver store at the northwest corner of Sixteenth and Welton was the final embodiment of his retail theory. He built a store large enough to dominate a market with low prices and surrounded it with satellite stores that were fed from the same warehouse. The product selection was so wide that there would be little need to shop elsewhere. ...
7. The Late-Night Meeting: “Well, Folks, Here We Are”
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The Lincoln Building in downtown Buffalo was the scene of a heated meeting on Friday, January 26, 1923. Steel’s was out of money. They could not pay their bills. A $250,000 payment on a loan that funded the acquisition of the F. E. Nelson stores was due, and they were unable to pay it. ...
8. L. R.’s Last Train Ride: “I Was Awakened by a Peculiar Sound”
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L. R. grew restless at Marguerite Manor. Both federal and state authorities were auditing his records for evidence of fraud, illegal use of the mails, or any other irregularities. Also, winters in Buffalo are not likely to lift the spirits of someone who has just lost his empire and is in the process of losing his reputation. ...
9. Was It a Ponzi Scheme? Would a Crook Live Next to a Chicken Farm?
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Leonard Rambler Steel and Charles Ponzi had a lot in common. They were both snappy dressers who had many loyal followers. They were both known for their personal generosity and donations to charity. They were both extremely devoted to their mothers. They were both optimists who had great faith in themselves. ...
10. What Went Wrong? Failure Is an Option
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The newspapers reported the story as if crimes were committed, but, in the end, it was a story about the failure of a very creative and aggressive business that lost money. There is nothing illegal about losing money. ...
11. The Legacy of Failure: Life Goes on . . . or Not
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At its zenith, Steel’s had seventy-five retail locations in sixty-one cities, perhaps five thousand employees, and sixty thousand investors. There were also more than one hundred offices that supported the “service” organization in its mission to sell stock. ...
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We have all heard the rags-to-riches stories told by those who succeed against the odds. We have heard the inspirational messages about how anyone can do it with hard work, frugality, honesty, perseverance, and a good heart. Everybody knows that story. ...
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Back Flap, Back Cover
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Page Count: 200
Illustrations: 144 black and white illustrations
Publication Year: 2013
Series Title: New York State
Series Editor Byline: Deanna McCay