Books – Page 139 – artdiamondblog.com

Did Bell, or Gray, Invent the Telephone?

Source of book image: http://www.xconomy.com/wordpress/wp-content/images/2008/01/telephone-gambit.jpg

A great and important debate is occurring about the desirability of the patent system. Should it be abolished, or reformed? If The Telephone Gambit book is right, one of the spectacular failures of the system is in the awarding of a patent to Bell for the telephone.
That’s a big “if”: some of the reviewers on Amazon give reasons for doubting Shulman’s story.
I hope to have time to look into this further.

(p. D10) It was a brilliant concept. But was it Bell’s? What had happened during his trip to Washington that allowed Bell to abandon the blind alleys he had been exploring and to suddenly, not incrementally, find the technological solution?

The answer to that question is a tale involving high-powered Washington lawyers, political influence, a patent clerk with a booze problem, and improper access to Elisha Gray’s patent filing, where Bell found the secret to making the telephone work. Mr. Shulman lays out the evidence — documentary, scientific, chronological and psychological — piece by damning piece. He shows most impressively how Bell’s subsequent behavior and actions are entirely in keeping with those of a decent and honorable man having to live most of his long life (Bell died in 1924) with the knowledge that behind his fortune and his fame lay a single instance of brazen dishonesty, of intellectual theft.
“The Telephone Gambit” is solid history, and Seth Shulman makes it as much fun to read as an Agatha Christie whodunit by using the techniques of historiography the way Hercule Poirot used his “little gray cells.” That’s no small accomplishment.

For the full review, see:
JOHN STEELE GORDON. “False Claim, Future Fortune.” The Wall Street Journal (Fri., JANUARY 16, 2008): D10.
(Note: ellipsis added.)

The book being reviewed, is:
Shulman, Seth. The Telephone Gambit: Chasing Alexander Graham Bell’s Secret. hardback ed. New York: W. W. Norton & Company, 2008.

“A Great Artisan Can Make a Family Prosperous; A Great Inventor Can Enrich an Entire Nation”

(p. 247) We feel real poignancy when we recall the bucolic life (even if we do so through the soft focus of nostalgia) of a country weaver happy in his work skills and content with his life. But those skills, like those of a medieval goldsmith or an ancient carpenter, could not, by their very nature, reproduce themselves outside the closed community of the initiates. One lesson of the Luddite rebellion specifically, and the Industrial Revolution generally, is that maintaining the prosperity of those closed communities–their pride in workmanship as well as their economic well-being—-can only be paid for by those outside the communities: by society at large. A great artisan can make a family prosperous; a great inventor can enrich an entire nation.

Source:
Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

Insider Training Increases the Efficiency of Markets

(p. W2) As argued forcefully by Henry Manne in his 1966 book “Insider Trading and the Stock Market,” prohibitions on insider trading prevent asset prices from adjusting in this way. Mr. Manne, dean emeritus at George Mason University School of Law, pointed out that when insiders trade on their nonpublic, nonproprietary information, they cause asset prices to reflect that information sooner than otherwise and therefore prompt other market participants to make better decisions.

This achievement can have ramifications beyond a few percentage-point increases in productivity growth.
According to Mr. Manne, corporate scandals such as Enron and Global Crossing would occur much less frequently and impose fewer costs if the government didn’t prohibit insider trading. As Mr. Manne said a few years ago in a radio interview, “I don’t think the scandals would ever have erupted if we had allowed insider trading because there would be plenty of people in those companies who would know exactly what was going on, and who couldn’t resist the temptation to get rich by trading on the information, and the stock market would have reflected those problems months and months earlier than they did under this cockamamie regulatory system we have.”
Another potential benefit of lifting the ban on insider trading is explained by Harvard University economist Jeffrey Miron: “In a world with no ban, small investors might fear to trade individual stocks and would face a greater incentive to diversify; that is also a good thing.”

For the full commentary, see:
DONALD J. BOUDREAUX. “Learning to Love Insider Trading; Here’s a hot tip: Want to keep companies honest, make the markets work more efficiently and encourage investors to diversify? Let insiders buy and sell, argues Donald J. Boudreaux.” The Wall Street Journal (Sat., OCTOBER 24, 2009): W1-W2.

The book mentioned is:
Manne, Henry. Insider Trading and the Stock Market. New York: The Free Press, 1966.

Luddism in 1811 England

(p. 243) The stockingers began in the town of Arnold, where weaving frames were being used to make cut-ups and, even worse, were being operated by weavers who had not yet completed the seven-year apprenticeship that the law required. They moved next to Nottingham and the weaver-heavy villages surrounding it, attacking virtually every night for weeks, a few dozen men carrying torches and using prybars and hammers to turn wooden frames–and any doors, walls, or windows that surrounded them–into kindling. None of the perpetrators were arrested, much less convicted and punished.

The attacks continued throughout the spring of’ 1811, and after a brief summertime lull started up again in the fall, by which time nearly one thousand weaving frames had been destroyed (out of the 25.000 to 29,000 then in Nottingham, Leicestershire, and Derbyshire), resulting in damages of between £6,000 and £10.000. That November, a commander using the nom de sabotage of Ned Ludd (sometimes Lud)–the name was supposedly derived from an apprentice to a Leicester stockinger named Ned Ludham whose reaction to a reprimand was to hammer the nearest stocking frame to splinters–led a series of increasingly daring attacks throughout the Midlands. On November 13, a letter to the Home Office demanded action against the “2000 men, many of them armed, [who] were riotously traversing the County of Nottingham.”
By December 1811, rioters appeared in the cotton manufacturing capital of Manchester, where Luddites smashed both weaving and spinning machinery. Because Manchester was further down the path to industrialization, and therefore housed such machines in large factories as opposed to small shops, the destruction demanded larger, and better organized, mobs.

Source:
Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.
(Note: italics and bracketed word in original.)

Salesforce.com Needed More than New Economy Cockiness to Succeed

Source of book image: online version of the WSJ review quoted and cited below.

(p. A25) Mr. Benioff tells the story of his success in “Behind the Cloud,” a triumphalist memoir and business self-help manual. He makes it clear that, when he was starting out, he followed the standard dot-com playbook: Get some high-profile tech-industry backers and mentors–Mr. Benioff’s former boss, Oracle chief executive Larry Ellison, was one–create buzz and let the revenues flow in. Salesforce.com might have been launched with New Economy cockiness, but success followed for solid, old-fashioned reasons: The company’s products filled a market gap.

For the full review, see:

JESSICA HODGSON. “Selling and Software; How a start-up found a new way to deliver computer products to salespeople.” The Wall Street Journal (Thurs., DECEMBER 17, 2009): A25.
(Note: the online version of the article is dated DECEMBER 16, 2009.)

The book being reviewed, is:
Benioff, Marc. Behind the Cloud: The Untold Story of How Salesforce.Com Went from Idea to Billion-Dollar Company-and Revolutionized an Industry. San Francisco, CA: Jossey-Bass, 2009.

“Powerful Pressure for Scientists to Conform”

Source of book image: online version of the WSJ review quoted and cited below.

(p. A13) In “Hyping Health Risks,” Geoffrey Kabat, an epidemiologist himself, shows how activists, regulators and scientists distort or magnify minuscule environmental risks. He duly notes the accomplishments of epidemiology, such as uncovering the risks of tobacco smoking and the dangers of exposure to vinyl chloride and asbestos. And he acknowledges that industry has attempted to manipulate science. But he is concerned about a less reported problem: “The highly charged climate surrounding environmental health risks can create powerful pressure for scientists to conform and to fall into line with a particular position.”

Mr. Kabat looks at four claims — those trying to link cancer to man-made chemicals, electromagnetic fields and radon and to link cancer and heart disease to passive smoking. In each, he finds more bias than biology — until further research, years later, corrects exaggeration or error.
. . .
I know whereof Mr. Kabat speaks. In 1992, as the producer of a PBS program, I interviewed an epidemiologist who was on the EPA’s passive-smoking scientific advisory board. He admitted to me that the EPA had put its thumb on the evidentiary scales to come to its conclusion. He had lent his name to this process because, he said, he wanted “to remain relevant to the policy process.” Naturally, he didn’t want to appear on TV contradicting the EPA.

For the full review, see:
RONALD BAILEY. “Bookshelf; Scared Senseless.” The Wall Street Journal (Mon., AUGUST 11, 2008): A13.
(Note: ellipsis added.)
(Note: the first paragraph quoted above has slightly different wording in the online version than the print version; the second paragraph quoted is the same in both.)

The book under review is:
Kabat, Geoffrey C. Hyping Health Risks: Environmental Hazards in Daily Life and the Science of Epidemiology. New York: Columbia University Press, 2008.

Luddism in France

(p. 240) Not only was Richard Hargreaves’s original spinningjenny destroyed in 1767, but so also was his new and improved version in 1769.

Nor was the phenomenon exclusively British. Machine breaking in France was at least as frequent. and probably even more consequential, though it can be hard to tease out whether the phenomenon contributed to, or was a symptom of, some of the uglier aspects of the French Revolution. Normandy in particular, which was not only close to England but the most “English” region of France, was the site of dozens of incidents in 1789 alone. In July, hundreds of spinnigjennys were destroyed, along with a French version of Arkwright’s water frame. In October, an attorney in Rouen applauded the destruction of “the machines used in cotton-spinning that have deprived many workers of their jobs.” In Troyes, spinners rioted, killing the mayor and mutilating his body because he had favored machines.” The carders of Lille destroyed machines in 1790; in 1791, the spinning jennies of Roanne were hacked up and burned. By 1796, administrators in the Department of the Somme were complaining, it turns out presciently, that the prejudice against machinery has led the commercial classes . . . to abandon their interest in the cotton industry.

Source:
Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.
(Note: ellipsis in original.)

After a Series of Anonymous Threats, Cartwright Power Looms Were Burned Down

(p. 239) Cartwright constructed twenty looms using his design and put them to work in a weaving “shed” in Doncaster. He further agreed to license the design to a cotton manufacturer named Robert Grimshaw, who started building five hundred Cartwright looms at a new mill in Manchester in the spring of 1792. By summertime, only a few dozen had been built and installed, but that was enough to provoke Manchester’s weavers, who accurately saw the threat they represented. Whether their anger flamed hot enough to burn down Grimshaw’s mill remains unknown, but something certainly did: In March 1792, after a series of anonymous threats, the mill was destroyed.

Cartwright’s power looms were not the first textile machines to be attacked, and they would not be the last.

Source:
Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

Ronald Reagan Would Be 100 Today; He Got the Job Done

A couple of years ago, I read a collection of recollections of Ronald Reagan by some of those who had known him. I jotted down a few notes on what was important in the collection:
Mike Wallace’s entry is a good one. He has a telling exchange with Reagan where Reagan says he is not a politician. Wallace is flabbergasted. He says to the effect: Mr. Reagan, how can you say you are not a politician when you are planning to run for the highest political office in the land?
Reagan’s response is that he’s not seeking the office for glory or self-aggrandizement; rather he’s seeking it because there’s a job that needs to get done.
In a later entry, someone (Cap Weinberger, maybe?) recounts an episode while Governor where someone warns Reagan that if he vetoes a certain bill (on teacher pay, maybe?) he will not get re-elected. Reagan’s response was: ‘I didn’t come here to get re-elected.’
Years ago I remember reading in a newspaper somewhere that an ordinary citizen saw Reagan in a park, at a time well after his announcement about having Alzheimer’s. The citizen went up to Reagan and thanked him for what he had done to preserve freedom. Reagan smiled and responded ‘that is my job.’

The book of recollections is:
Hannaford, Peter, ed. Recollections of Reagan: A Portrait of Ronald Reagan: William Morrow & Company, 1997.

Carlyle (and Rosen) on Arkwright

(p. 236) The greatest hero-worshipper of them all, Thomas Carlyle. described Arkwright as

A plain, almost gross, bag-checked, potbellied, much enduring, much inventing man and barber… . French Revolutions were a-brewing: to resist the same in any measure, imperial Kaisers were impotent without the cotton and cloth of England, and it was this man that had to give England the power of cotton…. It is said ideas produce revolutions, and truly they do; not spiritual ideas only, but even mechanical. In this clanging clashing universal Sword-dance which the European world now dances for the last half-century, Voltaire is but one choragus [leader of a movement, from the old Greek word for the sponsor of a chorus] where Richard Arkwright is another.

. . .
Arkwright was not a great inven-(p. 237)tor, but he was a visionary, who saw, better than any man alive, how to convert useful knowledge into cotton apparel and ultimately into wealth: for himself, and for Britain.

Source:
Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.
(Note: internal ellipses in original; ellipsis between paragraphs added.)

REVISE THIS ONE: Patents Needed to Provide Money for “the Many Fruitless Experiments”

(p. 234) . . . ; together, Watt and Arkwright wrote a manuscript entitled “Heads of a Bill to explain and amend the laws relative to Letters Patent and grants of privileges for new inventions,” essentially a reworking of Coke’s Statute of 1623 that had created England’s first patent law. In addition to its policy prescriptions, which were largely an unsuccessful argument against the requirement that patent applications be (p. 235) as specific as possible, the manuscript offered a remarkable insight into Watt’s perspective on the life of the inventor, who should, in Watt’s own (perhaps inadvertently revealing) words, “be considered an Infant, who cannot guard his own Rights”:

An engineer’s life without patent is not worthwhile . . . few men of ingenuity make fortunes without suffering to think seriously whether the article he manufactures might, or might not, be Improved. The man of ingenuity in order to succeed must seclude himself from Society, he must devote the whole powers of his mind to that one object, he must persevere in spite of the many fruitless experiments he makes, and he must apply money to the expenses of these experiments, which strict Prudence would dedicate to other purposes. By seclusion from the world he becomes ignorant of its manners, and unable to grapple with the more artful tradesman, who has applied the powers of his mind, not to the improvement of the commodity he deals in, but to the means of buying cheap and selling dear, or to the still less laudable purpose of oppressing such ingenious workmen as their ill fate may have thrown into his power.

Source:
Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.
(Note: the second ellipsis and the italics in original; the first ellipsis added.)