hotels articles

Are you happy with your Lexus RX330, but you’d like a little more power–maybe enough to dust off the guy down the street in the Mercedes ML 500.

How about a luxury Lexus SUV that goes from 0 to 60 in 7.3 seconds? That’s about three-tenths of a second faster than your 330 and puts you on par with your neighbor’s ML 500, or 3.4 seconds 30 to 50 mph, a second quicker than competitive vehicles. What if it had 650 lb.ft. of torque at launch, and on top of all that performance, it got about 28 to 30 mpg. No, it’s not some kind of super diesel, it’s a hybrid-electric SUV. Hybrid isn’t just for fuel economy anymore.

In fact, Denny Clements, group vice president and general manager, Lexus division, says that the RX400h won’t be sold on fuel economy at all.

“We’re going to market it on the basis of performance, package and quality,” says Clements, “and exceed the buyer’s expectations on fuel economy.”

Clements says that research shows the fuel economy is not even on the list when buying luxury SUVs, though it does show up as a post purchase complaint.

With an expected average of 28 miles per gallon, fuel mileage should no longer be a factor.

Hybrid Changes

At first glance the 400h doesn’t look much different from its sister 330. There are three principle differences in the front of the vehicle. The grille was redesigned and an extra cooling inlet was added for the hybrid components, which required a redesign of the front fascia. Round fog lamps replace the rectangular fog lamps of the 330.

The changes to the rear of the vehicle are even more subtle. The tail lamps now have horizontal trim pieces and the bulbs have been replaced with LEDs. LEDs use less energy while giving off a brighter light and are also a lot more durable than incandescent bulbs, requiring less maintenance.

The extra cooling inlet in front caused an addition in drag that needed to be offset. Fairings were installed behind the front and rear wheels to split up the airflow coming off the tires. Some new underbody shields were also added to the vehicle. These tweaks brought the coefficient of drag back in line with the RX330.

Interior differences consist of brushed-aluminum inserts replacing the wood inserts on the 330 and a modified IP cluster that replaces the tachometer with a power meter.

This RX400h rides on specific 18-in. by 7-in. aluminum wheels fitted with P235/55R 18-in. tires. Lexus chose not to go with rolling resistance tires. Because of the vehicle’s power and performance characteristics, it was felt that the vehicle needed sufficient rubber underneath it and a rolling resistant tire would have been too much of a compromise.

The 400h has front struts with internal rebound springs and linear control valves, tuned for sportier handling.

Safety First

In the active safety area, the 400h’s Electronically Controlled Braking (ECB) system combines the regenerative braking of a hybrid vehicle with the cooperative hydraulic braking system into what is essentially a brake-by-wire system. ECB becomes an integral component of both the powertrain system and the handling system.

The RX400h is equipped with Vehicle Dynamics Integrated Management (VDIM).

VDIM is a proactive stability control system that anticipates vehicle instability in virtually any direction. The system integrates a yaw rate sensor, deceleration sensor, speed sensor and steering sensor that send data to the Electronically Controlled Braking system (ECB). The ECB system translates brake stroke speed and pressure and generates the precise amount of combined electric regeneration and hydraulic pressure needed for virtually any driving condition. VDIM interfaces with the ABS, brake assist, vehicle stability control and traction control, allowing more precise control of these systems. It also uses a new electronic power steering system to optimize steering assist. The system uses a 42 VDC electric motor, wrapped around the rack Power is supplied by a DC/DC converter.

An additional sensor has been added to the vehicle that senses both side collision and rollover due to side collision, and triggers the front and rear side curtain airbags. Modifications have also been made to the body reinforcements and structural geometry to account for the additional 300 pounds of mass in the event of a collision.

Quiet Please

Several NVH improvements were made to the 400h. The extra weight, extra torque and improved handling characteristics required additional torsional rigidity. Several gussets and reinforcements were added to stiffen up the body.

The windshield is made of an acoustic damping laminated glass to keep out unwanted noise when the engine is shut off at rest. The cooling fan blade tips and shroud were redesigned to reduce the noise signature and keep it from being transmitted into the cabin. The 400h also uses direct gear drive on the front transaxle, which further reduces noise.

Powertrain

The 400h uses the same 3MZ-FE 3.3L 24-valve, V-6 engine that’s found in the RX330. It puts out 208 hp, about 10 percent less than the 330 due primarily to changes in the intake and exhaust systems for hybridization.

Sheri Winter Clarry, a top-selling broker with The Corcoran Group, will now be based out of its Westhampton Beach office.

Prior to entering real estate, she worked as director of Public Relations and Special Projects Ralph Lauren Media.

Clarry studied business management and communications at Rampano State College.

Being interviewed on one of the more than 10,000 radio stations in the United States can be your chance to get your message out to thousands of consumers. The key is to tell radio producers something they don’t already know, says Betty Hoeffner, president of Hoeffner PR Group Ltd. in Chicago, who specializes in media training and has gotten clients on radio programs nationwide. “You won’t get airtime talking about your great auto repair shop. Instead, try pitching ‘10 easy ways to keep your car from overheating in the summer.’ ”

Once you land the interview, practice, practice, practice. Listen to other radio interviews to get the Q&A format down. Always answer the interviewer’s questions and don’t say your company name 20 times. You may even be invited back.

Visit the SBA Women’s Business Center) for more details on how to prepare for a radio interview. Also, try How to Handle Media Interviews (Mercury Books) by Andrew Boyd.

Show Me Love

Stop listening. Don’t trust research. And never mind what clients say they want–instead, ask “What would people love?” That’s a taste of the advice Harry Beckwith offers in What Clients Love (Warner Books).

The author of Selling the Invisible argues that consumers are bombarded with so much advertising that they tune it out. Instead, they make purchasing decisions based on a few criteria: Is your company competent? Trustworthy? Most important, lovable?

What Clients Love is packed with ideas on how to earn that love. Beckwith offers a provocative take on topics such as branding and customer service. You’ll find out why prospects who say yes are really saying no; why it doesn’t matter if 96 percent of potential clients hate your product; and what the movie Pretty Woman can teach you about wooing clients.

Written in short sections, the book is ideal for even the busiest business owners to dip into at any free moment. Read one section a day as a daily “marketing inspiration.” The only problem: What Clients Love is so interesting, you won’t be able to put it down.

Think managing your 4,000-square-foot showroom can be a little overwhelming? Try operating a 130,000-square-foot superstore such as Watson’s of Indianapolis. It takes a sophisticated, well-oiled machine working behind the scenes to make sure the wheels don’t fall off. The store’s general manager, Kevin Prefontaine, is an important spoke in that wheel.

PERSONAL BESTS:

While working as a sales associate at Watson’s of Nashville (Tenn.) in 1999, Prefontaine was part of a team that set a sales record for the month of June. Then in 2002, while working as the store’s sales manager, he led Watson’s of Indianapolis to break the company’s spa sales record. He also simultaneously became a Top 5 Dealer for Cal Spas and Viking Spas. With simple tactics such as cleaning and displaying the spas properly, the outlet shipped more than 100 units than the previous year. It has also enjoyed 5 percent to 10 percent growth every year since.

After completing his degree in business and communications, Prefontaine wanted to rejoin Watson’s. He felt nostalgic about the company where he got his start at just 12 years old, but he also thought he needed to grow professionally before returning to Indianapolis. So as opportunities to work at other Watson’s locations arose, he jumped at the chance. Over the course of three years, he worked his way from Nashville to Kansas City, Mo., and then to Minneapolis, eventually arriving back in Indianapolis.

His hands-on education taught him the difference between consumer expectations and the time it takes to get from sales pitch to point of sale.

BEST BUSINESS DECISION MADE IN 2005:

Tired of unloading overstocked inventory at lower margins or watching “sales dogs” collect dust in his warehouse, Prefontaine knew he needed a new strategy. Last year, he decided to limit the franchise’s early buys and “put the burden on the manufacturers to ship in time whenever possible,” he says.

The move freed up space in the warehouse and helped the company’s cash flow.

BEST BUSINESS DECISION EVER MADE:

Two years ago, Watson’s of Indianapolis embarked on a massive store remodel that more than doubled the size of its showroom. Don Oeters and Jim Kathmann, owners of Watson’s Inc., began experimenting with the new superstore concept in 1996 with the remodel its headquarters in Cincinnati.

When the pair purchased the business in 1984 from the company’s namesake, Bill Watson, revenues totaled about $4 million annually. Since then, Watson’s of Cincinnati has experienced 750 percent growth, in large part due to its bigger-is-better approach.

By 2004, most of the Watson’s locations had already undergone the conversion to superstores, with the exception of Indianapolis. This gave Prefontaine the ability to pick and choose what he liked from the other stores, which had already been through their trials and errors. Indianapolis’ redesign was complete in 2005 and the old 30,000-square-foot showroom has been transformed into a 65,000-square-foot pool and retail Mecca.

For many owners, the sale of their company is the largest, most complex transaction of their career. Owing to its magnitude and impact on their future, it also is one of the most stressful. A seller will often find security with an experienced, determined, compassionate acquisition advisor who can provide guidance during this process. It can be especially helpful for a seller if a self-made person heads the advisory firm. Usually this advisor will fully understand the intensity and depth of emotions an owner is facing.

Middle-market transactions are defined as deals valued between $2 and $250 million. There is little information available on these deals to enable a potential seller to know what is involved in the sale process. Correspondingly, prospective sellers are often under numerous harmful misconceptions. During my many years in acquisitions, I have talked to thousands of owners/entrepreneurs. From these conversations I have found the following seven pitfalls to be the most common erroneous beliefs of middle market owners.

The answers to the following questions correct these misconceptions.

1. Is a valuation basically a “numbers crunching” process? Nothing could be further from the truth. A properly conducted valuation involves the complete investigation of a company’s business foundation. It includes defining the company’s future opportunities and major risks, along with their projected impact. The following factors must be evaluated during this process:

A. The strength of the company’s marketing program, including the diversity and control of its customer base.

B. For manufacturing companies, the ability to produce a high-quality, low-cost product, and the caliber and productivity of their research and development function.

C. For distribution or service businesses, the demographics of their trading area, the quality of their product and/or service line, the attractiveness of their locations and the ability to run their operation on a cost-effective basis.

D. The quality of the management team and the presence of a reasonably paid, well-motivated work force.

These factors become a prime determinant of the multiple to apply to the company’s expected future earnings.

2. Will planning and timing the sale of a company increase the transaction price?

Prudence dictates that a seller plans and times the sale to maximize the transaction price. As part of the planning process, all factors defined in Question one are evaluated and suggestions are made to strengthen the business foundation. The solidifying of the business foundation will increase the transaction price. In addition, the planning of the sale will enable a company to be prepared to “go to market” at the appropriate time to generate the maximum price. It also enables an owner to be capable of responding intelligently to the unsolicited interest of a prospective acquirer.

3. Is the deal fundamentally completed when a preliminary price is established at the letter of intent (LOI)?

The execution of an LOI is merely the start of the negotiating process. Unless you have a sophisticated, experienced advisory firm that has a strong personality and the ability to control the deal, it is not unusual for an acquirer to demand a price reduction between the LOI and the closing. A good acquirer knows that will never be productive. The negotiation of the Definitive Purchase Agreement (DPA) is a difficult, confrontational and time-consuming process. The DPA includes all the critical representations, warranties and indemnifications that are of potentially equal financial importance to the deal price itself. If not negotiated to provide the seller maximum protection, it can give the acquirer a post-closing opportunity to recover a considerable portion of a seller’s deal proceeds.

4. Should owners only sell their company when they are at or near the end of their business career?

The answer is definitely no. Most owners do not understand many of the benefits that can arise from a sale. Usually owners of closely held corporations have a vast majority of their personal wealth concentrated in the business. This is poor financial planning, but it is a typical byproduct of owning a closely held corporation. By selling all or part of the company, owners can reduce their concentration of wealth in the business. In addition, it puts their estate in more liquid condition. I have advised many younger owners recently in the sale of their business who have wanted to put their financial condition in that shape. They also wanted to enjoy the finer points of life for a few years, while still in prime health. After their covenant not to compete expires, which could occur after a five year period, they can get back in business. However, they will commit only a small portion of their sale proceeds to the new business endeavor. This will assure they have lifetime financial security. They will be refreshed and might be eager to pursue a new business endeavor. From a personal standpoint, this is an attractive alternative for a number of owners.

NEW YORK — The story is pretty simple: a ravishing beauty envisions herself walking down a big city street and all the posters and billboards in view, even a Jumbotron and newsstand magazine covers, morph into her smiling image as she passes. What’s not so simple is telling and selling–the product that provides our heroine’s dazzling smile is Crest’s Vivid White Night, a new toothpaste that works its whitening magic while the user sleeps. What makes it tougher still is revealing that the raven-haired actress is actually dreaming during all this, underscoring the product’s claim of overnight whitening.

“Sleeping is always the toughest thing to act out,” says Joe DeFranco, a producer for Saatchi & Saatchi, who produced both Star Smile and another fantasy-driven :30 for Crest on location in Buenos Aires. But DeFranco and company, working with hot director Sanji Senaka, ultimately got what they wanted, and what the client wanted, for this national campaign.

The challenge was maintaining the delicate balance between storytelling and product-selling. A good commercial must do both, DeFranco says, and often the ratio we see on TV tends to be 20 seconds of telling with :10 of selling However, the introduction of Crest’s new whitening product called for more explanation and consumer information than the norm, so what to do?

“It’s very easy for the editor to deal with how long it takes to whiten your smile. It’s different when your editor just has 12 seconds to tell a story when you really need 24,” says DeFranco of his experience working with Avid editor Bruce Ashley at Fluid, here. “In this case, Bruce was great–it’s tough to build that sequence up in a small amount of time. Bruce was really good at narrowing the story down as quickly as possible and still giving as much time as possible to the benefits of the brand and the product itself.”

DeFranco says a big part of the process was to run the spot by test audiences to make sure they were getting the message–both the story of the young woman’s dream of a dazzling smile and the new product’s benefits. “Most important to the brand is, are you getting the sell? Are you getting the benefits, the points that we’re trying to give you?” DeFranco says.

CUTTING AWAY IN NEW YORK

Fluid’s Ashley edits on both Avid Adrenaline, on a PC, and Avid Xpress Pro on a Mac. “I get my dailies on DVCAM these days and it was transferred in Buenos Aires.” Ashley says. “DVCAM is great, much more compact, great quality, it’s portable, and more cost effective–cheaper stock and decks, and also useful if one is editing ‘on the move.’ I created mock composites in the Avid for the greenscreen shots. The process in this case was as much about editing and selecting shots as it was about special effects. The special effects enhanced the dream notion. Bottom line, the cut still needs to work in its own right.”

Ashley collaborates closely with everyone on the production team, and created a director’s cut for Sanji Senaka, but he says, “The more intimate collaboration tends to be between the producer, art director and copywriter as that is who we spend most of our time with day to day. We had to make a decision as to which scene to drop in order to create the best spot. Joe’s input on this was important as he and the other creatives are privy to the client’s needs and these factors, in addition to the creative and aesthetic factors, influence this type of decision.”

Ashley brainstormed ideas with DeFranco and the agency team to portray the transitions of the greenscreen billboards and posters into the star’s smiling face and he helped design the look of the spot’s (virtual) Jumbotron all of which was ultimately executed at Zoic in LA. The lead Flame artist on the job was Marguerite Cargill.

Back in NYC, Lez Rudge, colorist at Nice Shoes, where Grass Valley DataCine and da Vinci 2K color correction rule, provided color-graded transfers in HD.

BEAUTIFUL DREAMER

With all the images of Star Smile’s beautiful dreamer in need of compositing. Bruce Ashley often ran interference for DeFranco regarding the Flame operations under way at Zoic.

“Bruce is very meticulous and doesn’t let anything slip through the cracks.” DeFranco says. “I have no worries when I’m working with Bruce. He was basically covering my butt–he initiated and handled a lot of work that passed between us and Zoic. Even with the Internet, it’s not that easy. Bruce made sure all our conversions were done correctly, just hanging in there with me–it’s been a long road.”

That road led all the way to Argentina, but the favorable exchange rate and the help of Buenos Aires production services company Altana Films made the trip worth it.

This was DeFranco’s first venture with Fluid (www.fluidny.com) “and I intend to go back to those guys,” he says. “Bruce’s handling of all the tech aspects of things and keeping a clear head and his skill at being able to edit down a story to the shortest time possible was huge for me so we could give more time to the sell. Of course, us creatives never want to have to compromise and he helped us find a way to a balance even though we gave more time to the sell than to the story.”

Editors’ Synopsis: Part I of this Article provides an introduction and history of how the real estate auction has been used to sell non-distressed properties as an alternative to negotiated sales. Part II analyzes, from a legal perspective, auction practices that allegedly undercut the reputation of the industry, including complaints of both buyers and sellers. Part III reviews existing legal and ethical rules that affect the real estate auction process, and considers why existing rules are not adequate and are in need of reform.

According to estimates of the National Association of Realtors (NAR), thirty percent of all real estate will be sold through auctions by 2010.1 There has been a tremendous increase in the use of auctions between 1980, when $10 billion was sold in the United States, and 1999, when $49.5 billion was sold.2 Good and Weinstein thoroughly discuss the auction advantage.3 Auctions might be the most efficient method of sale, especially for properties that are not easily valued.4 Yet, there is little understanding of the auction process. Additionally, some players involved in the auction industry have sullied the public’s view of selling real estate by auction, which has led to allegations of ethical and legal shortcomings.5 More important, proposals for reform are forthcoming to insure that this method of selling real property is a win-win situation for both sellers and buyers.6

I. INTRODUCTION AND HISTORY OF THE AUCTION INDUSTRY AND AN ALTERNATIVE TO NEGOTIATED SALES OF NON-DISTRESSED REAL PROPERTY

A. History of Using the Auction to Sell Real Property

In the United States,7 real estate auctions were used almost exclusively to sell distressed properties involved in mortgage foreclosures, property tax foreclosures, and bankruptcy lawsuits until the mid-1970s.8 Because of the perception that auction prices were much below the fair market value, brokers and other advisers to owners of real estate discouraged the use of auctions except in dire circumstances.9 Professors Grant Nelson and Dale Whitman, scholars reviewing the proposed Uniform Non-Judicial Foreclosure Act, have recently given thoughtful attention to the inadequacies of auctions held pursuant to court order in foreclosures.10 The law often uses auctions to extinguish a debtor’s rights as opposed to maximizing the value of the property being sold. These legal complexities often create a negative perception that real estate auctions are a way to sell distressed properties and they no doubt discourage prospective buyers, a fact that in itself affects the selling price. Thus, for purposes of this Article, the authors are concerned only with real estate auctions as an alternative to negotiated nondistress sales.

Throughout the 1980s and 1990s, real estate auction companies worked diligently to demonstrate that the real estate auction was a legitimate means of selling real estate, regardless of the category (such as residential, commercial, or “trophy home”). Thanks to intense marketing efforts, hundreds of thousands of successful sales, and positive word-of-mouth, those first auction companies are now seen as pioneers.” The first auction companies are knowledgeable organizations that revitalized an age-old sales approach to sell their clients’ properties expeditiously and for fair value.

With the indisputable triumph of the real estate auction format, a few national real estate companies have become industry titans.12 Numerous upstart companies have entered the industry in an effort to gain some of the real estate auction selling business. Charges of increasing legal and ethical violations on the margins or in the gray areas of existing rules have come with the increased competition among the auction companies to get sellers of real estate to hire them. What the rules are, and what they should be, is unclear in many instances, because courts respond to issues about sales of personal property, not real estate, when interpreting auction rules.13

Because widespread use of auctions to sell nondistressed real estate is so new, the legal and ethical rules have not caught up with the issues facing the industry.14 An exhaustive analysis of past claims and disputes, or those currently pending, is challenging. Research in this field is difficult because so many of the cases have been settled, often with confidentiality agreements, before they reach appellate courts or have been resolved through arbitration.15 The absence of reported appellate cases makes it difficult to find specific examples of the gray areas and to suggest how to avoid these problems. To investigate cases at earlier stages of litigation would require in-person reviews of pending and resolved cases on a state by state basis-an impracticable task.

Furthermore, there is not a consistent, clear body of case law or legislation in this area.16 Different courts often make different rulings on the same issues. Little scholarly attention has been given to the problems here. Yet, there is a serious concern that the questionable conduct of some industry players threatens the entire industry and may stifle the recent progress to make auctions an acceptable, if not yet preferred, process for selling real estate.

Avoid these common pitfalls and get top dollar for your practice.

For most optometrists, whole or partial ownership of a private practice is highly prized. Why? Equity gives you some level of control and most owners believe that some day they will be able to sell their share and reap a cash windfall.

Plan ahead

Yet, I know many doctors near retirement who put more energy into shopping for low prices on disposable lenses and lab work than planning for the sale of their practice. That’s certainly not a savvy way to spend your time. Even a so-called average practice, with $400,000 to $600,000 in annual revenues, is an asset that can be worth several hundred thousand dollars in a sale. And there are things you can do to maximize that sale price, as long as you avoid some common mistakes.

Don’t…

1 Try to sell a practice in a short time frame. Whether it’s due to death, old age, poor health or retirement, the reality is we are all going to leave practice eventually. Since exiting your practice is a “known event,” doesn’t it make sense to plan in advance so you can depart on your own terms? In my opinion, three to five years is a good planning cycle. Anything less than one year will not give you enough time to prepare your practice for sale at an optimum price.

2 Try to sell your practice for an unrealistic price. It generally pays to have your practice professionally appraised so you can establish a third-party opinion of the value before you put it up for sale. I know more than one O.D. who has had a practice on the market for over ten years. In most cases these practices haven’t sold because the asking price was totally out of line with the economics of the practice. Yes, there are a few uninformed buyers out there. But if they borrow money, their lender will be very good at valuing the business. On the other hand, if you sell at an inflated price and finance the deal yourself, you run the risk that the buyer may not be able to make his payments. I’ve seen it happen.

3 Fail to consult a CPA or tax attorney before agreeing to the deal structure. This is important because a poorly structured deal can cost you thousands of dollars in unexpected taxes. That’s because the buyer and seller have conflicting interests in terms of how the assets of the business are allocated in the contract. As a rule, the seller wants to allocate as much as possible to intangibles, such as good will and a non-compete agreement. The buyer, on the other hand, wants to pay as much as possible for hard assets he I can readily deduct such as inventory, equipment and accounts receivable. The IRS has definite rules to guide you, but tax issues are complex and there are always gray areas a smart lawyer or CPA can help you negotiate.

Getting the most for your practice

When it’s time for you to move on, I want you to sell your practice for as much as you possibly can. But that’s only going to happen if you start planning years in advance so you can avoid the most common pitfalls.

The Chinese gross domestic product (GDP) grew 10% last year. China is now the world’s second largest economy.

The automation industry will see China invest in distributed control systems (DCS) at an even faster growth rate.

The ARC Advisory Forum reported increased consumer demand and foreign direct investment continue to propel the growth of China’s manufacturing industry. The DCS market in China will grow at a compound average growth rate (CAGR) of nearly 14% between 2005 and 2010.

he study opined, “The substantial growth in grassroots construction of plants in the traditional heavy process industries, such as power, refining, oil and gas, power, and petrochemicals, is driving significant growth in the market for distributed control systems. Explosive growth is also expected in industries that have not yet adopted more advanced forms of automation including pharmaceuticals, food and beverage, and water and wastewater.”

When we look back on great historical events, we often ascribe an inevitability to things that were, in fact, anything but. In this lucid and comprehensive study of the formulation and enactment of the Marshall Plan, John Bonds recounts how this great pillar of American post-World War II policy was anything but inevitable. Bonds, a retired captain of the U.S. Navy and professor of history at the Citadel in Charlestown, South Carolina, concludes his penultimate chapter on the final legislative approval of what was to be Public Law 793 with the words: “So it was finally done. The country had made a significant commitment to Europe and to internationalism in general, consciously and with conviction, despite some difficult holdouts like Mr. John Taber, Chairman, House Appropriations Committee. But to the last the issue had been in doubt.” On that last sentence (emphasis added) hangs the tale of this study.

The Republicans controlled Congress, the president was seen as weak and was opposed by prominent members of his own party, and the Republicans smelled a White House victory in 1948, for the first time since 1928. On partisan grounds alone, then, 1947-48 did not seem a propitious time for a major bipartisan initiative. Beyond considerations of party, however, there were large substantive policy issues that divided the nation: how best to deal with the erstwhile ally, the Soviet Union; fear of inflation and the ultimate cost of European recovery; concern for balancing the budget; and how to meet the public desire for “normalcy” after years of depression and war.

Bonds gives an impressive account of the extraordinary skill of the Truman administration and the rightly celebrated Senator Arthur H. Vandenberg, Republican chairman of the Senate Foreign Relations Committee, in mobilizing business, labor, intellectuals, and public opinion in support of what many correctly perceived as a decisive break with traditional American foreign policy. In this mobilization of external opinion and lobbying of congressional support (at a time when such lobbying was seen as improper), there were mutually countervailing pressures tending to minimize President Truman’s public engagement, which was seen as raising partisan hackles, but also to maximize the president’s public role, the better to position him for the 1948 election. Bonds correctly concludes, however, that such considerations and skills were insufficient to account for the final enactment.

A fundamental change of perspective was required, and skillful alliance building and sales strategies were inadequate. Indeed, the administration understood this and sought to justify the shift in American peacetime engagement by the need to restore the European balance of power and the international trading system, ravaged by depression and war. At the same time, there was a desire to establish for the first time in American history a program of universal military training. In the mind of the president, Secretary of State George C. Marshall, and Secretary of Defense James V. Forrestal, the European Recovery Program and a new foundation for national defense were inextricably linked.

In the event, none of these arguments, or the general campaign to weld an alliance of business, labor, academia, and the public in support of America’s new role, generated sufficient votes in Congress to pass the Marshall Plan. Soviet actions in Finland, Czechoslovakia, and Berlin did.

All of this is particularly remarkable in view of the fact that the administration had consciously sought to downplay the Soviet menace as the motive for its initiative. More abstract discussions of the balance of power and international commerce were consistently favored. This stemmed from the desire neither to slam the door on some renewed understanding with the Soviet Union (a position favored by some influential opinions in the United States) nor to create trouble for the French government, seemingly both dependent on and threatened by the French Communist Party.

The Soviet-menace card was played on several occasions in the unfolding debate, but in general it was subordinated to more abstract arguments of enlightened self-interest. Moreover, it was clear to many in the administration that too great an emphasis on the imminence of war with Russia would scuttle both the recovery program and universal military training in favor of a general wartime mobilization. In effect, although Soviet pressures certainly provided the needed ingredient for legislative success, they also bad the potential to divert the country from the recovery program itself. Later events would ultimately modify the balance between economic assistance and military mobilization–but that is another story, beyond the scope of this fine book.

Finally, it should be noted that Bonds has the ability to tell a story clearly, at times even breezily, and analyze without cumbersome jargon. For clarity and sophistication, this is likely to be a standard reference for some time to come.