Lutèce, Antoine’s, Arnaud’s — and Denny’s

Postings in this category recount experiences and impressions from
throughout the ecosystem.  Submissions are welcome, and can be
fact or fiction, using your real name or anonymously.

Two weeks ago, the New York Times published an obituary for Ralph Ablon.  The summary read, “After expanding a family scrap metal business into a hodgepodge of some 55 companies, he then successfully focused on the service economy.”  He was called “a pioneer of conglomerates.”

In July 1984, as an analyst with one year of experience, I flew to New York City to meet with Ablon at the offices of Ogden, the company he had been running for more than two decades.  Working for the third largest money manager in the country meant that I could have that access.  But, given my naïveté, I likely believed everything I was told.  Over time, I would learn to crack the narratives of those I interviewed (or at least try to), but then it wasn’t a fair fight.

After a while, we decamped to Lutèce, then widely considered to be the best restaurant in America.  It became apparent that Ablon was a good customer — or maybe they treated everyone that way; I wasn’t used to that level of service.

By 1984, the shine had come off of conglomerates, which had gained popularity in the 1960s.  Charles Bluhdorn of Gulf and Western had died suddenly the year before, marking the end of its sprawl, and other firms were trying to slim down and focus.

With some exceptions, conglomerates have been viewed suspiciously over the last four decades.  General Electric was lauded during Jack Welch’s two-decade tenure as CEO (now seen as a time of masterful earnings management), but the firm has been dismantled piece by piece in the subsequent twenty years.  Berkshire Hathaway has managed to retain its conglomerate form (albeit with a leaner headquarters structure), although that may change when Warren Buffett and Charlie Munger are gone.

In any case, in the mid-eighties, Ogden’s many businesses were organized into services, marine and modular construction, industrial products, and food products.  As noted in Ablon’s obituary, the company was starting a pivot to services, but at the same time it was getting into the business of building and running waste-to-energy plants.

And the company was still building ships.  Shortly after my New York visit, I was invited to go to New Orleans to see Ogden’s Avondale Shipyards.  I was one of a group of analysts in attendance.

The night before we went to the shipyard, we dined at Antoine’s, which had been (and still is) in the family of the founder since 1840, making it the oldest restaurant in the city.  Then there was some ship building to see the next day, after which we went to Arnaud’s, another high spot of New Orleans cuisine, even though the restaurant was a youngster by comparison to Antoine’s; it was founded in 1918.

In talking to others, I found out that Ogden had a reputation for wining and dining analysts, and we were fulfilling our part of the relationship.  It wasn’t my first exposure to such activities — brokers started offering dinners, concert and play tickets, and golf dates soon after I started in the business.  But I didn’t understand the human tendency toward reciprocation, which leads (often subconsciously) to providing favors in return.

That second evening in New Orleans continued with a visit to Pat O’Briens, where I vaguely remember standing and singing along to “New York, New York” with some analysts from that very city.  An even dimmer memory is a trip to a venue at the top of a hotel quite a bit later that night.

I woke up the next morning to a knock on my hotel door from the housekeeper.  A glance at the clock told me I had already missed my flight back to the Twin Cities.

Ironically, I was supposed to play in a broker golf event that afternoon, with a dinner at the club afterwards.  Of course, I never made it.  Instead, I ended up at Denny’s with my wife (who wasn’t real happy with me at that moment) and our young children.

Wherever you are in the ecosystem, there are people whose job it is to curry favor with you.  The best of them also try to give you good information and a fair deal.

I can’t say where Ralph Ablon was on that score, since I didn’t cover conglomerates for very long, so I was only with him once.  When I saw that he had died at 105, I realized that at the time of our meeting he was the age I am right now.

By the way, I never again was at Lutèce (now gone), nor have I been back to Antoine’s, Arnaud’s, or Denny’s.

By Tom Brakke, the editor of this site.