All posts by Phil Gibbons

Johnny Carson, The King Of Comedy (Volume Six, Episode Five) Part Two

The dark reality behind the persona of one of America’s most beloved public figures.

Johnny’s second wife, Joanne, 1960

On August 17, 1963, Carson, possibly feeling more secure professionally with more than a year under his belt at the new show, married his longtime girlfriend, Joanne Carson.  This despite years of fighting publicly, acrimonious vacations in which one of them left and went home early and numerous friends and acquaintances advising them not to tie the knot.  Even the ceremony and reception were odd.  Only a tiny number of participants witnessed the actual marriage, the couple’s parents not even invited.  The reception included only a few more individuals and was held at Johnny’s apartment, the guests mostly Tonight Show related staff like bandleader Skitch Henderson and producer Art Stark. 

Johnny’s third wife, Joanna

Joanna Carson was a former fashion model who had spent much of her life in the rarified company of extremely wealthy, sophisticated, older men.  Her companion before Johnny was the CEO and chairman of the Hertz Rent a Car corporation.  Johnny, still essentially a scotch drinking steak and potatoes Midwesterner, began to acquire a more diverse outlook courtesy of his latest wife.  Completely uninterested up to that point in travel, he began his annual pilgrimage to the Wimbledon tennis championships, featured prominently on the NBC broadcast back to the US.  He typically followed that up with several weeks on the Cap D’Antibes along the French Riviera, enjoying the fact that he went mostly unrecognized.  Instead of hard liquor he began to temper his alcohol intake with a fine Bordeaux or Montrachet.  But one constant, despite a well appointed Bel Air residence on St. Cloud Road, the Carsons never threw parties and were rarely seen socially, their house again a secluded refuge to escape from public exposure.

Johnny and frequent guest, Angie Dickinson

It was hard to feel sorry for Carson, whose womanizing was so blatant that when Joanna convened a meeting in her home of the women’s Beverly Hills charity that she participated in, Johnny would single out at least one of the participants and strongly come on to them.  Upon signing the divorce papers, Johnny turned to his now ex-wife and said, “What I’ll miss most is not being able to talk to you.”  Carson certainly made good on his word, never speaking with Joanna Carson again.

Henry Bushkin, 2014, discussing his memoir about his relationship with Carson

By then, the Bombastic Bushkin had also been reduced to non-person status.  In his tell all memoir, written in 2014, Henry Bushkin claimed that this was all due to a specific misunderstanding over the possible sale of Carson Productions without the involvement of Johnny Carson in the specific details.  Johnny was told by another business advisor that Bushkin was attempting to enrich himself at Johnny’s expense and in a very brief, intense exchange lasting only a few minutes Carson fired his advisor of eighteen years and negotiated his severance package.  This insured that the two men did not have to interact again, and they did not, with not so much as a phone call for the rest of Johnny’s life.  This, the man that Johnny Carson once described as his best friend. 

Joan Rivers got her big break on the Tonight Show, but ultimately was exiled.

Joan Rivers also was exiled when, in 1987, she accepted an offer from Fox Television to host a late night talk show that would compete with Johnny.  Rivers was already frustrated by NBC’s refusal to both offer her a contract as Johnny’s replacement host, and especially that she was not on an NBC list of stars to even be considered when and if Johnny retired.  Although other hosts and comedians attempted to compete with Johnny and still remained in Carson’s good graces, most notably Joey Bishop, Joan Rivers made the unforgivable sin of negotiating with Fox, putting together her show and never even telling Johnny about it in advance.  Her eleventh hour attempt to reach out to him on the eve of the program was rejected, assistants told that he would not take her call at any time in the future. 

NBC President Fred Silverman, 1979

If Silverman thought confronting Johnny publicly and even implying that his show was somehow deficient were effective negotiating tools, he was sorely mistaken.  Having never formally even met Carson as network president, Silverman did so on March 17, 1979.  Carson not only refused to work additional hours, he also told Silverman that he wanted off the show as soon as possible.  Although Silverman did remind him at this meeting that he had a contract through 1981, Carson publicly announced that he would be leaving the show on September 30, 1979, the seventeenth anniversary of the program.  Whether this was his actual intent, a negotiating ploy or merely a gesture designed to put an arrogant egotistical network executive in his place, the negotiations dragged on into May of 1980.  When they concluded, Johnny Carson had extracted the most favorable contract in the history of network television.  

Johnny and fourth wife, Alexis Maas

Following his retirement, Johnny Carson became even more reclusive, spending most of his time behind the gates of his massive Malibu mansion that overlooked Point Dume.  He spent a great deal of time on his private tennis court, especially built for him by NBC, one of the few of its kind in the vicinity.  His only companion, his fourth wife, who he married in 1987, Alexis Maas, a stunning blue eyed blonde he met while she was walking by his other Malibu beach house, which he eventually sold to John McEnroe. 

Johnny Carson, The King of Comedy (Volume Six, Episode Five) Book and Music Information

The books used to prepare this program included:

“King of the Night,” by Laurence Leamer

“Johnny Carson,” by Henry Bushkin

The music used during this podcast included:

Part One Intro: “Apolllo,” by Patrick Patrikios

Part One Outro: “Smokey’s Lounge,” by Track Tribe

Part Two Intro: “Namaster Trip,” by Ofshane

Part Two Outro: “A Kiss for Amanda,” by DJ Williams

Bernard Madoff and the Largest Fraud in Financial History (Volume Six, Episode Four) Part One

The shocking story behind the biggest swindle in the history of Wall Street.

Madoff leaving Federal District Court during his prosecution.

Agent Cacioppi was so taken aback by Madoff’s candor and unusual cooperation he called his office to determine what he should do next.  Typically, a subject with Bernie’s sophistication and community stature would refuse to answer questions and stall, at least requesting time to speak with or even have an attorney present before answering any questions.  Madoff’s admissions to the agents were an unexpected response.  The agent was told to arrest Madoff and bring him to FBI offices at 26 Federal Plaza. 

Ruth Madoff

Upon graduation from college, Madoff briefly attended Brooklyn Law School but unlike his brother Peter, who graduated from Fordham Law School, he dropped out after a year.  He did pass the requisite exams to not only sell financial securities but to also operate his own securities brokerage firm, which he formed in 1960, calling it Bernard L. Madoff Investment Securities.  By then, Madoff was already married to Ruth Alpern, the daughter of a successful accountant, Saul Alpern.  Another occasional fable that Madoff spun was that his working capital came from his summer jobs installing sprinklers and as a lifeguard.  He frequently left out the fact that his father in law not only lent him fifty thousand dollars, he also gave him a desk in his firm’s office and referrals of all of Saul’s client base.

Bernie Madoff’s brother, Peter Madoff

By the early seventies, several personal events greatly affected Madoff, the sudden and relatively early death of both of his parents and the inclusion of his brother Peter into his growing business entity.  Between July 1972 and December 1974, Ralph and Sylvia would both die suddenly before their sixty-fifth birthdays an event that probably prompted the elder Bernie to take his younger brother under his business wing.  Peter was a critical employee who became more operations and technology oriented, helping to keep the firm’s broker dealership on the cutting edge of upgraded technology in a securities market environment that was undergoing a technological revolution.  And Peter would also assume the role of chief operations officer, a critical responsibility in any brokerage firm but even more so within Bernard L. Madoff investment securities.

Andrew Madoff
Mark Madoff

His sons, Mark and Andrew, newly minted graduates of the University of Michigan and Wharton respectively were both now working for the firm, albeit on the broker dealer side of the business.  

Official mug shot on day of arrest

Avellino claimed that all of the money was there and was in the hands of his money manager, Bernard Madoff.  As soon as he had heard of the SEC inquiry, Madoff tried to get ahead of what he knew was coming.  Not only an SEC demand for the return of the assets but a possible scrutiny of his trading history to determine whether or not he in fact was running a legitimate money management firm, with ongoing investment in the markets.  To do this he tasked one of his employees, Frank DiPascali, the individual who already was involved in producing investor statements that were most likely either distorted if not out right falsified, to reconstruct trades for all of the Avellino and Bienes accounts that would demonstrate the profits necessary to generate the claimed returns.  These fictitious trades also had to stand up to SEC scrutiny.  Amazingly, Madoff’s conversations concerning his trading strategies and DiPascali’s creation satisfied the SEC, however they did get a court order to force Madoff to return what were illicitly collected funds. 

Bernard Madoff and the Largest Fraud in Financial History (Volume Six, Episode Four) Part Two

The shocking story behind the biggest swindle in the history of Wall Street.

Harry Markopolos, testifying before Congress

But, if many of Madoff’s clients were happy to not question  his returns and process, the cynical, highly competitive and data driven world of Wall Street always invited scrutiny of its biggest stars, even if this was the result of envy or alienation.  In Harry Markopolos, one found an individual motivated by both market place rejection and a competitively brilliant grasp of financial marketplace analytics.  In 1999, Markopolos was employed as a portfolio manager by Rampart Investment Management, a small Boston, Massachusetts options trading shop that managed a modest amount of money.  Markopolos was quite familiar with Bernie Madoff, his firm having marketed a split-strike conversion product that he helped develop.  Unfortunately, the product did not generate particularly good returns and was eventually scrapped, Markopolos additionally both intrigued and frustrated by repeated stories of the phenomenal performance generated by Bernie Madoff.  If you’re so smart, why the hell can’t you do what Bernie does? His hard boiled, Boston sales compatriots constantly needled him.  To a quant like Harry Markopolos this was the ultimate put down and challenge, but there wasn’t much he could substantively do about it.

Rene-Thierry Magon de la Villehuchet

That changed when a senior co-worker named Frank Casey, returned from a New York sales call he had taken with Rene-Thierry Magon de la Villehuchet at Access International Advisers.  Villehuchet not only managed money for some of Europe’s most high profile aristocrats he was literally a member of the French nobility himself.  In his sixties, he was a client of Bernie Madoff’s since 1985, and rebuffed Casey’s sales pitch with glowing accounts of Madoff’s consistent high returns and reporting process that purported to send daily updates of all transactions performed on behalf of Access’s accounts.  Casey then played the only sales card he had left, asking why Rene-Thierry allowed Madoff to hold the securities he purchased on Access’s behalf himself, as opposed to a third party custodian which was required for registered investment managers.  Villehuchet’s answer was simple.  Bernie Madoff wasn’t a registered money manager, so he was not required to do so and the Frenchman was dismissive of any of Casey’s concern, saying he trusted Madoff implicitly.  The meeting quickly terminated with at least Villehuchet providing a copy of his returns and portfolio performance.  Casey subsequently got seven years of such performance from Broyhill Securities’ All Weather Fund, another Madoff feeder fund and tossed this information on Markopolos’ desk.

Madoff conspirator Frank DiPascali

This article was quickly followed up by another piece in the much more formidable business publication, Barrons, written by Erin Arvedlund.  Again, although not accusatory, it was certainly skeptical of Madoff with similarly specific questions.  Madoff’s response to these articles was to have Frank DiPascali construct a fake in-house computer terminal that supposedly was a trading platform connected to other trading counter parties, in fact it was connected to another employee’s in house terminal, hidden in another part of the office, all of these simulated trades completely bogus.  Another DiPascali creation was a supposed live screen of an account at the Depository Trust and Clearing Corporation, known as the DTC, where securities owned by Madoff purchased during alleged trades were being held in his account.  The fake reproduced the DTC’s logo, fonts, formats even the type of paper used for actual DTC reports.

Mark Madoff’s Nantucket home

On December 11, 2010, on the second anniversary of his father’s arrest, Mark Madoff committed suicide by hanging himself from his apartment ceiling with a dog leash.  At the time of his death he was the subject of nine federal lawsuits, including suits brought by trustee Picard.  His wife had already changed her and their childrens’ last name to Morgan.  Unlike Andrew he seemed deeply sensitive to allegations that he knew about the fraud.  His body was discovered by his stepfather in law when he rushed to the apartment after Mark’s wife received some alarming e-mails, Madoff’s 22 month old son and pet dog left alone in the apartment.  This suicide, did not stop the relentless Picard, who then filed suits against Mark’s ex-wife and current spouse to recover funds deemed ill gotten gains. 

Bernie Madoff in prison, 2017

Upon sentencing Bernie Madoff was sent to the Federal Correctional Institution at Butner, North Carolina.  He occasionally granted interviews that were mostly self-serving with Madoff blaming his behavior on the culture of Wall Street or getting in over his head on something he never meant to pursue on a long term basis.  He expressed exasperation with his clients who he labeled as greedy, especially the big four, three of whom were now dead.  Although he continued to correspond with his wife, his two sons allegedly never spoke to him again, after he confessed his role in the fraud, one of few developments in his life that actually seemed to disturb him.  Although initially accounts of him being assaulted in prison circulated in the media, he eventually referred to Butner as a relatively pleasant place akin to a college campus, his main objection to prison the sheer boredom it entailed. 

Bernard Madoff and the Largest Fraud in Financial History (Volume Six, Episode Four) Book and Music Information

The books used to produce this podcast included:

“The Wizard of Lies: Bernie Madoff and the Death of Trust,” by Diana Henriquez

“Betrayal: The Life and Lies of Bernie Madoff,” by Andrew Kirtzman

“Madoff With the Money,” by Jerry Oppenheimer

The music that appeared on this podcast included:

Intro, Part One and Outro, Part Two was:

“The Loner,” by DJ Williams and

Outro, Part One and Intro, Part Two was:

Cover Charge by Track Tribe

The Duke and Duchess of Windsor (Volume Six, Episode Three) Part One

Long before Harry and Meghan, a much more serious crisis and scandal enveloped the British monarchy and the House of Windsor, the abdication of Edward VIII

King George V and his royal family, the future Edward VIII is at left

The future Edward VIII, known within his immediate family by the nickname of David, was born on June 23, 1894.  His father, George V, did not become the king until 1910, then anointing David, his eldest son, with the title of Prince of Wales, next in the line of royal succession. David was educated as a cadet at the Royal Naval College, went on to Oxford and also joined the Royal Navy.  When war broke out in 1914 he was assigned to a safe but extremely tedious post at Allied headquarters in France.  Although on paper Great Britain emerged victorious from the Great War, the cost in both casualties and expense was enormous. Across Europe, many royal dynasties were either rendered obsolete or even completely destroyed including the ruling houses of Germany, Austria-Hungary and Imperial Russia, the latter most disturbing as the Romanovs were literally exterminated by the Bolsheviks. 

Wallis, aged ten

Actually born Bessie Wallis Warfield, on June 19, 1896, Wallis’ parents came from prominent Maryland families.  Unfortunately, Wallis’ father died of tuberculosis only months after her birth and her mother Alice’s family had disowned her as a result of the marriage, probably because her daughter was conceived out of wedlock.  The infant and her mother then were supported by her deceased husband’s wealthy brother and her mother’s sister Bessie, until 1908 when Wallis’ mother remarried.  Her uncle paid for a prep school education and Wallis was socially prominent and attractive enough to be designated as a Baltimore debutante, although the outbreak of World War I suspended such frivolity.  Not wild about some of the suitors hanging around Wallis in Maryland, her mother decided it might be a good idea to send her to Pensacola, Florida, where her cousin, Corinne was married to an officer who was the commander of the Naval Air Station in Pensacola.  Also feeling that Wallis was competitively trying to get married, her mother also figured that dropping her daughter into a brand new environment might slow Wallis down.

The Prince of Wales, 1919

As early as the age of sixteen, discussion concerning an appropriate mate for the Prince of Wales began.  An obvious candidate, the daughter of Kaiser Wilhelm, eighteen year old Viktoria Luise, rejected him as too young.  He received some additional leeway when George V issued a 1917 proclamation allowing royalty to marry a non-royal subject, the first time even the potential for a commoner to achieve such status became possible.  This edict, at the height of World War I, also originated the term , “the House of Windsor,” changing the dynasty name from Saxe-Coburg-Gotha, an attempt to obfuscate the British monarchy’s German connection and to encourage future relationships outside of the German nobility.  

Edward VIII’s last public appearance as king, with his mother Queen Mary

Things came to a head in mid-November when Baldwin also informed Edward that if he insisted on the marriage, the government would resign.  Edward responded by threatening to abdicate if he was not allowed to marry Wallis Simpson.  On November 16, at a private dinner he informed his mother Queen Mary of his intention, a revelation that shocked her, no one in the Windsor family really believing that Edward would seriously consider such a drastic course of action, over a common, American divorcee. 

Wallis Warfield Simpson, Herman Rogers chateau, days before the abdication

But, after thinking it over, Wallis decided to head for France, believing that if she appeared to be involved in any final decisions, she would be blamed for any fallout.  Two days later, she arrived at the chateau, above the city of Cannes in southern France, the world press nipping at her heels.  Any attempts to speak directly to the king were difficult, connections poor to the extent that the conversations consisted of Wallis yelling:  Do Not abdicate. Do nothing reckless.  Listen to your friends!

Edward with Churchill

Only a few miles out of Fort Belvedere, Brownlow attempted to persuade Wallis to head for his manor house in Lincolnshire, explaining that she might better influence the king if she could maintain some reasonable proximity.  In actuality, this was a desperate attempt to keep Wallis Simpson involved, officials like Churchill understanding how persuasive she could be.  

The Duke and Duchess with Hitler at the Berghof, Obersalzberg

The Duke and Duchess were greeted on October 11 in Berlin and escorted by ministers like Robert Ley and Joachim Von Ribbentrop.  That evening they dined with both Albert Speer and Joseph Goebbels.  Everywhere, the couple went they were treated with extreme deference, including Wallis Simpson who was continually addressed as your Royal Highness, a title she did not officially deserve as well as the subsequent curtsies.  Other meetings followed with Herman Goering and even Hitler himself, photos from this historic event splashed on front pages all over the world.  Several times the couple engaged in the Nazi salute, behavior they would come to regret.  To any members still part of her inner circle Wallis maintained that they were merely tourists and the Duke insisted that the visit was not official.  Throughout the visit, British consular officials were instructed that they were not to meet or assist the couple in any official capacity.

The Duke And Duchess of Windsor (Volume Six, Episode Two) Part Two

Long before Harry and Meghan, a much more serious crisis and scandal enveloped the British monarchy and the House of Windsor, the abdication of Edward VIII

The Prince of Wales and Wallis Simpson, Switerzerland, 1935

By mid-1934, even British high society insiders were aghast at what, “the little man,” as David was scornfully known as behind his back, had actually taken up with.  When the Royal family deliberately deleted the Simpsons from the Royal guest list for the wedding of David’s brother, George, in November of 1934, the Prince of Wales personally interceded to get them reinvited.  Probably thinking that a good offense is the best defense, Wallis showed up in expensive jewelry and a tiara that certainly her husband could not afford and could have only been gifted by David.  Outraged, King George V then personally barred the couple from any subsequent, official Royal events but the relationship blatantly continued, with Wallis receiving cash and gifts, usually gems that today would be on the order of tens of millions of dollars.  

Edward VIII’s letter of abdication, 1936

Finally, Edward called her back and personally told her that the abdication was inevitable.  Wallis Simpson’s unromantic and blunt response, recorded by French secret police, was predictable.  “You goddamned fool!”  Inexplicably, Edward decided to give up his throne, allegedly over Wallis Simpson, without even involving her in the decision or even formally asking her to marry him during this time period or even subsequently.  On December 11, he proceeded with his famous speech, explaining his decision to abdicate, allegedly over his relationship with Wallis Simpson.  Even his subsequent departure from Britain was haphazard, Edward now officially the Duke of Windsor, winding up at an Austrian mansion owned by a Rothschild, a personal favor to Lord Brownlow.  Because Wallis Simpson was still technically married, the Duke and Wallis would have to remain separated until the Simpson divorce was final.

Chateau de la Croe, Cap D’Antibes

With no diplomatic or professional responsibilities, the Windsors than turned to figuring out exactly where they wanted to live, eventually settling upon the the Chateau de la Croe, a large mansion sized estate on the Cap D’Antibes.  Initially, this was where Wallis had wanted to get married, in May of 1938, they leased the property.  Shortly thereafter they began the process of ingratiating themselves with whatever local members of French and American members of high society would accept their dinner invitations, the Duchess spending most of her time planning these dinner events.  For a year and a half, life revolved around furnishing their new home and their socializing, events that always began with a formal introduction by servants of Wallis Simpson as Her Royal Highness.  If the Duke and Duchess were living the lives of the idle rich this was essentially on someone else’s dime.

The Duke and Duchess, 1963

As the sixties dawned, shunned by the British aristocracy, no longer of much interest to anyone in the US other than facilitators of best dressed lists, on the eve of a generation more interested in personalities like the Beatles, the Windsors began to fade from public relevance.  Other than the occasional White House invitation, they became politically invisible.

The Duke of Windsor, playing golf.

As the sixties ticked by the Windsors devolved from world famous celebrity status to an existence seemingly out of a Dickens novel.  Despite their immense wealth, they openly paid their servants twenty per cent less than the going rate stating that it was a privilege to work for them.  This despite homes crammed with every possibly amenity for both the Duke and Duchess and their guests, toilet tissue literally unrolled and folded into squares. 

The Duke and Duchess at the Nixon White House

By then the Duke’s health was deteriorating rapidly.  One eye was mostly closed due to complications from cataracts, circulatory issues were now pronounced after a lifetime of heavy smoking which also eventually caused throat cancer, arthritis forcing him to limp along with a cane and preventing him from golf or even working in the garden.  By May of 1972, the end was clearly approaching, signaled by the first and only visit to the Duke’s Paris home by Queen Elizabeth II, her husband Prince Phillip and accompanied by Prince Charles.  It lasted a perfunctory thirty minutes.  To one of the last of the many American socialites who spent time with the Windsors in their last years he reflected, “The duchess gave me everything that I lacked from my family.  She gave me comfort and love and kindness.”

The Duke of Windsor’s Grave, Frogmore Royal Burial Ground

The Duke of Windsor’s body was flown to Great Britain and dignified with the usual ceremonies, including lying publicly in state at St. George’s Chapel, on the grounds of Windsor Castle the traditional burial place for British Kings and Queens since Henry VIII.  The Duchess of Windsor was flown to these ceremonies separately where she interacted with the rest of the Royal family who treated her with chilly dignity.  Although as a former King of England the Duke of Windsor was entitled to burial at St. George’s, he was instead interred by previous agreement at the Royal Burial Ground at Frogmore Estate.  This cemetery was established to handle the overflow from the Royal Vault at St. George’s as space there became restricted for actual monarchs and those in direct succession.  Frogmore Estate is owned by the British Royal family and is only open to the public six days out of the year.  In addition, the royal burial ground which contains the Duke of Windsor’s gravestone is restricted from public access by a high iron fence, for the former Edward VIII a kind of British Royal Siberia. 

The Duchess of Windsor’s grave, Frogmore Royal Burial Ground

The Duchess of Windsor’s modest April 29, 1986 funeral ceremony at St. George’s Chapel was well attended by members of the royal family.  However, her coffin had no flag or standard and its plaque omitted the HRH title before her name inscribed as Wallis, Duchess of Windsor-1896-1986.  The hearse containing her coffin proceeded along private roads to exclude any public acknowledgement.  Only fifteen individuals were present at her graveside ceremony, including the Queen, Prince Philip, Prince Charles and Princess Diana, but the Queen Mother on the advice of Queen Elizabeth did not attend.  The Duchess of Windsor was buried side by side with her husband at Frogmore, the only commoner in the cemetery, her headstone also omitted the HRH title, the Duke and Duchess of Windsors’ social, political and geographic exile now eternally complete.

The Duke and Duchess of Windsor (Volume Six, Episode Three) Book and Music Information

The books used in this podcast included:

“Traitor King: The Scandalous Exile of the Duke and Duchess of Windsor,” by Andrew Lownie.

“Wallis In Love: The Untold Life of the Duchess of Windsor, the Woman Who Changed the Monarchy,” by Andrew Morton.

“17 Carnations: The Royals, the Nazis, and the Biggest Cover-Up in History,” by Andrew Morton.

The music intro for this episode was: “High Noon,” by Track Tribe, and the outro was, “Savior,” by Telecasted.

Ray Kroc, McDonald’s Mastermind (Volume Six, Episode Two) Part One

In July of 1954, an obscure milk shake mixer salesman walked into a fast food restaurant in San Bernardino, CA. The restaurant was operated by two brothers named McDonald, the result of this interaction profoundly changed American culture, business and nutrition forever.

Ray Kroc in the Twenties.

Ray Kroc first interacted with Prince Castle as the Chicago based account manager for Lily-Tulip and sensing the enormous potential of the Multimixer device, he secured the national distribution rights for the machine in 1939.  For two years he rapidly increased sales, his customers mostly the corner drug stores and soda fountains that were a mainstay of urban America.

Ray Kroc, Chairman, McDonald’s Corporation

Just as Kroc began to build national momentum for his sales distribution company, America entered World War II, a development that cut off two staples necessary for his continued growth.  Civilian access to copper, a critical element of his Multimixer motors was halted, any supplies of this metal earmarked for military consumption.  Sugar was also heavily rationed so that products like ice cream were virtually unavailable during wartime.  Rather than shutting down, Kroc improvised, determined to tough it out until the end of the war.  He found two additive products, consisting of mostly corn syrup and a chemical stabilizer that when mixed with chilled milk resulted in something that mimicked ice cream. 

Richard McDonald

The McDonalds were not even the first to market specialty hamburgers in southern California.  In 1937, a Glendale, California owner of a drive-in restaurant , Robert Wian, invented a double decker hamburger sandwich slathered with various condiments and toppings that was so successful, he called it the Big Boy, and prompted a restaurant name change to Bob’s Big Boy, eventually another successful nationwide hamburger chain.  The McDonalds brothers would impact the rapidly evolving American fast food landscape by implementing some concepts that were, at the time, revolutionary.  Although quite successful, their drive-in restaurant incorporated the car-hop delivery system, in which individuals, usually teenaged females offered curb or parking lot service on a tray, which was popular with teenagers but turned their location into a hangout where the parking lot was filled with leather jacketed youngsters who took up space for hours and also alienated older families with children who did not like such an atmosphere.

The Multimixer

It was in early 1954 that Kroc decided that at the very least, to try and buck up his sales numbers, he wanted to learn more about a restaurant run by two brothers in San Bernadino, California who had ordered ten Multimixers for their small Southern California location.  He even asked his West coast rep how such a small restaurant could need enough machines to prepare as many as sixty shakes at a time and then decided he would go see for himself.  If nothing else, this restaurant was generating orders from other hamburger joints that were trying to copy this business, called McDonalds, to duplicate their wild success.  

The Original Mcdonald’s, San Bernardino, CA

As the carhop-hangout atmosphere dissipated, working class families began to descend on the restaurant in greater numbers, eating at a restaurant now a viable economic alternative.  Children also enjoyed going up to the window, ordering and then bringing back the food to their car, all under the watchful eyes of their parents, a lesson in independence.  The building itself was different with an octagonal shape and glassed in design from the roof to the countertop, the always immaculate kitchen, with its stainless steel, grills and efficient employees a revelation to most customers who had never set eyes on a restaurant’s interior.  On the roof was a huge neon sign with the MacDonald’s name, and their mascot Speedy, the symbol for what they dubbed the, “Speedy Delivery System.”  Within a year, the restaurant regained the same volume it had before its realignment.  It further streamlined its production line process with customized tools, and extremely specific guidelines.  And, perhaps to maintain a focused, completely businesslike approach, especially among younger employees, only males were hired.  McDonalds mushroomed into a high volume, unique operation with eventually spectacular results.

Oldest McDonald’s still operating in the US, third outlet ever, built in 1953,

Ray Kroc was also not the first individual to discuss potentially franchising the McDonald’s name and concept.  In fact, by the time Kroc approached them the brothers had actually sold fifteen franchises. Well, sort of.  What they sold was a manual describing the Speedy Delivery Service, some building plans, one week of training with a store manager and the McDonald’s name for a fee of $1,000.  They specifically did not provide any financial or business connection on any ongoing basis, the franchisee strictly on their own.  Even this process was something that Mac and Dick did not pursue aggressively.  

Ray Kroc, McDonald’s Mastermind (Volume Six, Episode Two) Part Two

In July of 1954, an obscure milk shake mixer salesman walked into a fast food restaurant in San Bernardino, CA. The restaurant was operated by two brothers named McDonald, the result of this interaction profoundly changed American culture, business and nutrition forever.

Joan Kroc

Despite four decades and many years of dealing with a virtual absentee husband and serious anxiety over their household debt, Eleanor Kroc was still hanging in on the marriage.  That is until, in 1961, when Kroc said he wanted a divorce.  Ethel settled for the house, the Lincoln automobile and 30,000 dollars a year in alimony.  Part of Kroc’s decision to divorce stemmed from a relationship that began when he met a potential licensee at an upscale restaurant.  The keyboard player and singer at this restaurant was a stunning blonde named Joan Smith.  Kroc was so smitten that he could barely focus on the meeting, with Bob Zien, who owned this restaurant, the Criterion.  Zien hired Joan Smith’s husband Rawley Smith to manage his first McDonalds and entered into a partnership with Smith when Zien purchased a second franchise.  Because the Smith’s were then part of the McDonalds corporate family, they frequently interacted with Ray Kroc, who eventually verbalized his romantic feelings to Joan directly.  They agreed to leave their spouses, Kroc and Joan relocating to Woodland Hills, CA in late 1961.  They needed to cohabitate for six weeks to be able to get a quickie Nevada divorce but five weeks into the arrangement, Joan balked.  Her daughter disliked Kroc immediately and her mother was appalled.  Kroc had already sold his ownership of his Prince Castle distribution company to senior executives for 150,000 dollars, essentially a loan, and was committed to relocating to the West Coast, anyway, to personally spearhead McDonald’s West Coast expansion.            Joan eventually had second thoughts about breaking off the engagement, but by then Kroc had moved on. 

Fred Turner, Ray Kroc’s protege and successor.

Kroc’s McDonald’s operation was mushrooming in size and he realized both his own personal limitations and that he needed to assemble a corporate structure to manage such a fast growing entity.  He already identified Fred Turner as an individual he wanted to include in his inner management circle. 

Ray Kroc, with Padres logo on polo shirt

Once he delegated the operation of McDonalds to Fred Turner, Ray Kroc became as much of a media personality and company spokesman as opposed to a serious hands on administrator, something he never really enjoyed anyway.  He no longer had to worry much about business in any case. 

Padres home during Kroc’s tenure, Jack Murphy Stadium

In 1973, a golden opportunity presented itself to Kroc that for him was the perfect outlet.  Based on his mid-western middle class Chicago roots, Kroc loved baseball and the Chicago Cubs and once his net worth became considerable, he made several inquiries into actually buying the team.  The long time owners, the Wrigley family were not interested in selling but in San Diego, the owner of baseball’s Padres, C. Arnholt Smith was battling his own bank’s failure, IRS demands for back taxes and fraud and embezzlement allegations.  He quickly sold off the Padres to a group intent on moving the team to Washington, DC but when the city of San Diego sued to block the deal, Smith couldn’t afford to wait.  Ray Kroc emerged as a civic hero quickly ponying up 12 million dollars for the team.  

Swimming meet, Kroc Center, San Diego, CA

After many years of very visible philanthropy, Joan Kroc began to step out of the limelight finding that with each gift or charity event, she was besieged by countless requests and pleas from thousands of determined individuals and organizations.  She never stopped giving money away, she just became much more spontaneous and anonymous, not wishing to spend her time fending off the public and frequently inspired by some news report of a particularly dreadful event.  She also spent much of the late nineties working with the San Diego chapter of the Salvation Army to create a community center, a kind of athletic and fitness facility, library auditorium, outdoor swimming pool and even an ice rink all rolled into one.  In 2002, 87 million dollars later, this 12 acre, 132,000 square foot facility became a reality, the Salvation Army Kroc Center.