Here s WHat s InsIde - triadinformation.com · We’ve tried to put together a spectacular book ... there is arguably more detail placed on the corian- ... the rich and powerful nightly

4 www.eleglancemagazine.com The Magazine oF WealTh and STyle

Here’s WHat’s InsIde Interviews

Sure, the woman who won a Best Actress Oscar for The Hours has made some questionable career choices (Bewitched, anyone?); still, she has always dusted off and reappeared as elegant and poised as ever. Maybe it’s her pleas-ant outlook on life. Maybe it’s thick skin. Maybe it’s simply knowing which socks are best for the day. Page 49

Destined for the traditional career path of the German aristocracy to which he was born, Andreas von Zadora-Gerlof was saved from the military by a crip-pling hunting accident and a Haida Indian. For the next thirty six years, the world benefited from a display of some of the most beautiful, exotic, and tech-nically advanced art ever produced. Page 65


Here’s WHat’s InsIde Interviews

The difference between artistry and being an artist is money. You can have all the talent in the world, but, if you can’t sell your work you have nothing more than a really cool hobby. Page 121

Articles

54 living a Five-STar liFeSTyle… aT hoMe Have you ever found yourself indulging in the service nirvana of a five-star hotel only to ask

yourself, why don’t the people in my home work like this? by Travis Dommert

58 oil aT $100!! you ain’T Seen noThing yeT!! There is probably nothing more bewildering these days than the gyrations of the global oil markets. by M. Ray Perryman

62 The alTernaTive air SySTeM Corporate travel, like all your other choices, is no different. It still boils down to value. by Walter Knapp

78 Who really oWnS your naMe Cyber-Squatting and the Advent of the Nerd Mafia by Sterling Brown

94 haraSSMenT: Who do you Call? It was a quiet time of the day. It made sense

for me to work late after everyone was gone for the day. by M. Sandi Aigoro, M.B.A.

102 robb CaMpbell: eChoeS oF The greaTeST generaTion

If children of the 40’s through 50’s represent the Baby Boom, then Robb Campbell, at age 40, can easily be called The Aftershock.

by Sterling Brown

54

78

February 2008 www.eleglancemagazine.com 9


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First… Congratulations!

Congratulations to the staff of ÉleGlance Magazine for enduring through the madness of trying to get this book out to press.

We’ve tried to put together a spectacular book for you, the reader. I hope you’ll be impressed. And congratulations to you, our

readers for being selected to receive this complimentary issue of ÉleGlance Magazine.

When Kay and Todd and I first came up with the idea of this magazine, the whole idea was to create a great magazine that was

different from everything out there. We wanted our magazine to be timely without being a news magazine, stylish without being

a fashion magazine, and informative without duplicating the format of weekly magazines. Our decision was to try to publish five

interviews per month. One from each of the genres; Sports, Business, Music, and The Arts. And we left one space open as a Wild

Card for that person who doesn’t really fit into any of the other molds or may span more than one of them. Then we decided to

give each of the interviewees a gatefold to not only show them off photographically but by giving them plenty of space it would

encourage them to give us a complete and broad-based story. Walter Knapp, Sterling Brown, and DeMarco Williams (our inter-

viewers) gave us exactly the style of interview that I believe the audience wants; an easy-flowing question and answer, but allowing

themselves to interject additional facts when the interviewee’s answers needed to be clarified or summarized. Great work guys!

The photography in this book is terrific. Ron Hart’s portfolio of woodcutter Chad Awalt’s scupltures gets only a few spaces on

these pages. But, you’ll be happy to know those shots are from a soon to be published book on Chad’s artwork. Ron’s additional

shots for the interview are no less than spectacular. But, the real story here is Chad’s view of his work, his marketing, and the

business of being in business. How as an artist are you expected to shut down the creativity gears when you’re in the mood to

chisel and and in the next moment start up the marketing engine to satisfy (hmmmmm) an interviewer?

Photography from David Behl is no less spectacular on the artwork of Andreas Zadora. And I know you’ll be intrigued by his

story. Severly injured in his childhood, Andreas has become one of the most sought after artists in the world; and yet you don’t

know his name. Are his commissioned pieces, his very life’s work, the problem?

We’ve got great articles for you. Stories that will make you think, possibly make you change the way in which you operate.

Well… at least they will give you ideas on how other people do things. Bruce Salehi, Fair Tax, Shakir, Alternative Air Systems,

Harassment in the Workplace, Nicole Kidman, Nerd Mafia; we’ve got a lot of information for you.

So, welcome to our Premier Issue. We hope that your coffee tables will be always be adorned with our magazine.

First…A Few Words from Our Publisher

PUBLISHER

JiM Canada

CONTRIBUTING FEATURES WRITERS

Sandi aigoroSTerling broWn

ThoMaS Jay CanadaWalTer J. knappMarCelle long

deMarCo WilliaMS

CONTRIBUTING PHOTOGRAPHERS

david behlCeSSna airCraFT CorporaTion

ron harT, ronhartphoto.comhaWker beeChCraFT CorporaTion

JoSe arMando rioS

vICE PRESIDENT OF MANUFACTURING

Todd nollner

DIRECTOR OF OFFICE RELATIONS

JaeMi king-grahaM

PRODUCTION INTERNS

aTeeT paTelkenneTh daviS

NATIONAL ADvERTISING SALES MANAGER

kay nikookary

For Advertising Sales and Subscription Services, Call (404) 492-9680

CaNN Publishing Group, L.L.C.3324 Peachtree Road, N.E., Suite 2418, Atlanta, GA 30326

(404) 492-9680

CHIEF EXECUTIvE OFFICER

kay nikookary

CHIEF OPERATIONS OFFICER

Todd nollner

CHIEF MARKETING OFFICER

Todd x. Cobb

CHIEF PUBLICATIONS OFFICER

JiM Canada

ÉleglanCe Magazine™Copyright ©2008 CaNN Publishing LLC, a subsidiary of CaNN Holding Group,

3324 Peachtree Road, N.E., Suite 2418, Atlanta, GA 30326All rights reserved. Published monthly for 12 issues per year. Reproduction in whole or in part of any text, photograph, or illustration without written permission from the publisher is strictly prohibited. ÉleGlance

Magazine claims rights to trademarks contained in the magazine. The one-year domestic subscription rate is free. Back issues are $7. Bulk rates on request. Postmaster: send change of address to ÉleGlance Magazine,

Subscriptions, 3324 Peachtree Road, N.E., Suite 2418, Atlanta, GA 30326. Allow four weeks for change of address. Send both old and new address. Subscribers: If the Postal Service alerts us that your magazine is

undeliverable, we have no further obligation unless we receive a corrected address within two years. Produced and printed in the United States of America.

Publisher, ÉleGlance Magazine Chief Publishing Officer - CaNN Publishing Group




10 FInest… Lists from DeMarco Williams

The Ocean ROOm, chaRlesTOn

Kiawah Island is one of the most radiant vacation spots in the Carolinas. So to say that the Ocean Room, the signature restaurant at The Sanctuary resort, only extends all the visual majesty is a compliment in of itself. Upon an initial glance, you’ll think that declaration is from the look of the place the Charleston Post and Courier called its 2006 restaurant of the year. Cool lighting and warm mahogany throughout indicate as much. But for every delicate intricacy in the fur-nishings, there is arguably more detail placed on the corian-der encrusted swordfish, four-peppered spiced strip loin of beef and other North African-inspired entrees on the menu. (843) 768-6260 or www.kiawahresort.com.

Jean-GeORGes, new YORk ciTY

Of the thousands of restaurants that call the Big Apple home, only an elite few receive the AAA five diamond, the Mobile Travel Guide five star and the New York Times four star ratings. Jean-Georges earns its place in the delectable frater-nity primarily because of celebrity chef/owner Jean-Georges vongerichten, a worldly man of meticulous taste who feeds the rich and powerful nightly from his stunning French es-tablishment inside the Trump International Hotel and Tower. Some come for the intricate three-course prix fixe menu. Others for the seven-course selection. All return for the near-heavenly experience of seeing that perfect plate arrive at their table. (212) 299-3900 or www.jean-georges.com.

The ResTauRanT aT The seTai, miami

South Florida has a reputation for being sexy, though not necessarily romantic. For those feeling touchy feely this valen-tine’s, Miami has a place that breaks the mold and meets the well-heeled somewhere comfortably in the middle. Located at The Setai, one of the city’s swankiest hotels, The Restaurant not only serves up premium Asian-influenced cuisine, it also provides plenty for the eyes to feast on. Couples can either get a choice spot near the dining room’s exhibition kitchen or a more secluded table to enjoy the mouth-tingling flavors in private. (305) 520-6402 or www.setai.com/dining/theres-taurant.

It’s a tough assignment, but somebody had to take it. DeMarco Williams steps up every month, to give his top ten. This month, it’s his ten finest…

romantIc restaurants on tHe east coast

The Ocean Room, Charlestoncontinued on page xx


inn @ liTTle washinGTOn, washinGTOn Dc

For the culinary conscious in our nati on’s capitol, any ballot with Patrick O’Connell’s name attached would be a landslide victor. As the head chef at the Inn’s world-renowned restaurant, O’Connell has a way of making even the most dis-criminate of tongues decide in his favor. A D.C. staple for deli-cious perfection since the late 1970s, O’Connell’s quaint Inn packs them in so steadily you’d think that Barack and Oprah were hosting nightly chats there. The pan-seared Pacific hali-but gets our vote any night of the week. But for those really special nights, there’s no harm in undecideds going all out with the medallions of rabbit loin wrapped in house cured pancetta. (540) 675-3800 or www.theinnatlittlewashington.com.

The Black Olive, BalTimORe

Locals already know this, but one of the best-kept secrets is the growing number of fine dining experiences in Baltimore. Even more shocking to non-Maryland residents is the memo-rable time to be had at The Black Olive, a Mediterranean-en-thused establishment critics at The Baltimore Sun and Gour-met Magazine haven’t stopped gushing over since the 1990s. Housed in a small building that certainly can be overlooked if you’re not careful, The Black Olive is an authentic hideaway both in décor and in the kitchen’s effort in making whole fish and veal chops taste as if they arrived from Athens only mo-ments ago. The staff is knowledgeable and sweet. The car-rot cake is just sweet. (410) 276-7141 or www.theblackolive.com.

summeR winTeR, BOsTOn

The same attention to dining forks, fabrics and fennel ap-plied to Mark Gaier and Clark Frasier’s award-winning Arrows Restaurant in Maine is lovingly applied to this new dining des-tination at the Marriott Boston Burlington as well. Couples won’t help but feel the warmth of the place from the dark wood paneling and inviting smiles of the hosts. Who knows, by the time you get to the seafood kebobs and free range prime beef tenderloin -All dishes are flavored with herbs picked fresh from the nearby garden- your guest may have already melted in your arms. Dine near the windows, with the bottle of the finest Sauvignon, just to show off. (781) 221-6643 or www.summerwinterrestaurant.com.

le Bec-Fin, PhilaDelPhia

Easily the finest stop in Philly for French cuisine, Georges Perrier’s institution may very well be the most fascinating of its class on the entire right coast. But don’t take our word for it (or those of AAA, the Mobil Travel Guide and Philadelphia Magazine); reserve a table for two this special holiday, order Perrier’s signature crab cakes or raisin-filled quail and have your taste buds see for themselves. Majestically adorned in gold silk wall covering and massive chandeliers, Le Bec-Fin screams 19th century opulence. With a wine selection the size of the Allegheny River, it drinks it, too. (215) 567-1000 or www.lebecfin.com.

Bacchanalia, aTlanTa

After opening its doors over eight years ago in a renovated factory to more critical and commercial acclaim than it knew what to do with, this glitzy Atlanta staple continues to dazzle. Zagat can’t help drooling over the place. The receptionist still tells you, “Sorry, we’re all booked for 7:30 next Saturday.” Don’t expect either to change anytime soon. Chefs/owners Anna Quatrano and Clifford Harrison have a winning philoso-phy on preparing contemporary American cuisine. Eat in the tidy, high-ceilinged dining room this February and you may find Texas gulf white shrimp with gnocchi on the menu. Re-turn in three months and the selections will be totally differ-ent. (404) 365-0410 or www.starprovisions.com.

auJOuRD’hui, BOsTOn

Refined French cuisine doesn’t have to be the clichéd, unimaginative fare it finds itself on too many menus across the country. The experience should be awe-inspiring to the palate, much like the moment would be were you dining at Paris’ Restaurant Du Palais-Royal or Le Pre verre. Aujourd’hui (French for “today”) does just that with ambiance (soft blue and yellow fabrics compliment hardwood flooring) and an ex-ceptional menu of artsy seafood selections that will have you exclaiming “Magnifique!” long before the dessert wines and sweets arrive. Oh, but when they do, pray to the heavens that you have room in your tummy for the apricot and vanilla bean parfait. (617) 351-2172 or www.fourseasons.com/boston.

PeR se, new YORk ciTY

The whole feel of the Time Warner Building can strike as overwhelming and a bit chilly. Still, somehow amongst all the lights and commerce Per Se manages to deflect the surround-ing commotion wonderfully. Led by one-time proud chef of California’s famous French Laundry, Thomas Keller, this ultra elegant restaurant knows how to juggle modern chic and age-old pampering better than anyone in the 212 area code. And if that bit of multitasking wasn’t impressive enough, the way the intimate spot (there are only 15 tables) handles everything from lobster to potato salad with such a gentle hand would make a Cirque du Soleil acrobat envious. (212) 823-9335 or www.perseny.com.

Ten FineSTcontinued from page xx

Aujourd’hui, Boston

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Photo: Courtesy of DwightCarter.com





WIdgets compiled by Thomas Jay Canada

euricaseAs far as most people are concerned, it’s about what is inside the jewelry box more than the box itself but a company called Euricase seeks to change that. Their ring box has an LCD display that will play a video, picture slideshow, or audio when opened and even have its own soft mood lighting. The box’s multimedia display can be updated through a USB port and holds more than 500 pictures or an hour of video. The box comes in a variety of colors and metallic finishes. The interior is done in either velvet or leather and the two-inch LCD includes a clock, alarm, calendar and a photo album display. The box sells for $198.95.

sonim XP1 Gsm Companies like Sprint have been moving tough phones at a nice pace for years, particularly with people who work in rough environments; however, it’s hard to anticipate a phone with rudimentary media options (no touchscreen) and looks like something straight out of 1998.The Sonim XP1 can handle heavy water, wind, and dust exposure as well as extreme temperatures, and a classic beer dive dumping. According to the manufacturer, it comes with an unconditional 3 year warranty and a lifetime warranty for the phone housing with in-store replacement.



adidas 1Adidas has introduced the most advanced shoe ever. Called “1”, the shoe provides intelligent cushioning by automatically and continuously adjusting itself. It does so by sensing the cushioning level, using a sensor and a magnet. It then understands whether the cushioning level is too soft or too firm via a small computer. It adapts with a motor-driven cable system to provide the correct cushioning throughout the run.

It works like a human reflex nerve. The nerve is a magnetic sensing system, where the sensor sits just below the runner’s heel and the magnet is placed at the bottom of the midsole. On each impact, this sensor measures the distance from top to bottom of the midsole (accurate to .1 mm) gauging the compression and therefore the amount of cushioning being used. About 1,000 readings per second are taken and relayed to the shoe’s brain.

Underneath the arch is the shoe’s brain, a microprocessor capable of making five million calculations per second. Software written specifically for the shoe compares the compression messages received from the sensor to a preset zone and understands if the shoe is too soft or too firm.

Once it has determined if the cushioning level is appropriate, it sends a command to the shoe’s muscle to make a change.

A motor-driven cable system is the shoe’s muscle. The motor, housed in the midfoot, receives the brain’s instructions and adapts by turning a screw, which lengthens or shortens a cable. This cable is secured to the walls of a plastic cushioning element. When the cable is shortened, the cushioning element is tensed and compresses very little. When the cable is longer, it allows the cushioning element to compress further, making the shoe’s ride softer. A small battery, which is replaceable and lasts for 100 hours of running (the normal life of a shoe), provides the motor’s power. The changes are gradual and happen automatically, so all the runner notices is that the shoe feels right during an entire run.


WIdgets continued

apple Tv The basic concept of this product is straightforward: It can wirelessly stream content from the iTunes libraries of up to five computers as well as play content directly from the box’s 40 GB hard drive. This means you can enjoy almost anything on your PC, be it movies, photos, podcasts, or music, on your enhanced-definition and high-definition widescreen televisions. Apple’s slogan says, “if it’s on iTunes, it’s on Apple TV” — and this is mostly true. Those who don’t mind hooking up a few cables and thinking a little about the setup will enjoy this wireless extension to iTunes. Overall, it does a pretty darn good job.

ceiva Digital Photo FrameCEIVA, Inc is the inventor of the digital photo frame and provider of the world’s first and only connected Digital Photo Frames™. Designed for the centralpark™ connection, the frame is wi-fi ready and features an 8” high-resolution LCD screen with a built-in card reader. With on-screen menus, the frame is easy to use and capable of automatically receiving photos sent by camera phone or though an online CEIVA account. The CEIVA digital picture frame is available by ordering through their website, CEIVA.com, or at Best Buy for about $249.


ZuneThe Zune is back for its sophomore revenge, and the iPod has every reason to be frightened. With a new design, higher capacity, wireless sync capability, larger screen, and integrated support for audio and video podcasts, the new 80GB Zune is finally giving everyone a true alternative to the iPod.

Measuring 4.3 inches high by 2.4 inches wide by 0.5 inch deep, Microsoft shaved some considerable bulk off the Zune’s thickness, while nearly tripling its capacity.

The first major improvement engineered into the new fleet of Zune MP3 players is a completely unique navigation control that Microsoft dubs the Zune Pad. You can think of the Zune Pad as a cross between a standard four-direction navigation pad and a laptop’s touch pad. With the Zune Pad, users can navigate menus by either pressing or sliding their finger in four directions, and select items by clicking on the middle of the pad. Navigating lengthy song lists is a breeze, especially with an accelerated scroll kicking in when

the pad is held down. The new Zune Pad interface also lets you skip through songs, photos, and radio stations with just a light brush of the finger. Buttons for play/pause and menu still flank each side of the Zune’s control pad and behave exactly as they did in the first-generation Zune.

The second major addition to the Zune’s set of features is the ability to wirelessly sync content from your PC over your home Wi-Fi network. The feature requires a one-time setup to familiarize the Zune with your home network, after which it will remember to look for the network automatically each time it is plugged in for a recharge. If you’re within range of your wireless network but don’t feel like recharging your player to trigger the wireless sync, you can also initiate the sync manually by digging through the Zune’s settings. Of course, you can always connect the Zune directly to your computer using the included proprietary USB cable, but the wireless option is a neat trick.


WIdgets continued

Zoombak™The Zoombak™ Advanced GPS Dog Locator is a dependable and accurate way to help you locate your dog and bring her home safely if she runs away or is stolen.

Our small, lightweight, water-resistant locator attaches comfortably to your dog’s collar with a durable and secure pouch. You can pinpoint your dog’s location on-demand via Zoombak.com, mobile phone, or live customer care. You can also determine your dog’s location in real time using our continuous tracking option. Simply log on to Zoombak.com to view a map of her current location, as well as her path taken since leaving home. Once you create and activate your own customized safety zones, you can be promptly notified by text message and/or email when your dog leaves the zone. With Assisted GPS technology (A-GPS), which utilizes both satellite and cellular technologies, Zoombak can help to more precisely and reliably determine the location of your locator.

Unlimited on-demand location requests, an easy-to-use website, and a 24/7 toll-free phone number for live customer care and location support, will provide you with the peace of mind you are looking for in pet safety.

life|ware Life|ware solutions provide instant and easy access to all of your digital entertainment — photos, home videos, recorded TV, movies, music and more — as well as comprehensive home automation, delivered with at-a-glance views of home subsystems such as lights, security, thermostats, and more. By replicating the distinctive Microsoft Windows Vista Media Center interface look, feel, and navigation, Life|ware 2.0.3 presents a crisp interface that is intuitive, simple to learn and easy to use.Life|ware version 2.0.3 makes the Life|ware system more accessible and functional than ever before. Want an e-mail or a text message whenever someone rings the doorbell at your home? It’s a snap with the refined scripting abilities in version 2.0.3, which also ushers in new user interfaces for satellite radio and enhanced IR control of audio video components.


iPTusB With the iPTUSB, ION has created a revolutionary battery operated portable USB turntable enabling you to convert your old vinyl collection to CD or MP3 using included recording software. (NO SPECIAL DRIVERS NEEDED)

The iPTUSB turntable also has a line level output for connecting to any home stereo with an AUX input and a built-in speaker for stand-alone operation.It comes bundled with EZ Vinyl Converter by MixMeister and provides the easiest way to convert your records to your computer’s digital music library. Simply plug in your iPTUSB turntable, specify track information and in a few mouse clicks you’re done! EZ Vinyl Converter automatically imports your songs directly into your iTunes library.

Once digitally converted, you can sort your music, make custom playlists, and easily take songs with you on an iPod or play them directly from your computer. Finally your record collection can be available wherever you are.

Or if all of your music is stored on cassette tapes Tape2PC is what you’ll be looking for. Both are available from ION AUDIO, www.ion-audio.com.


WIdgets continued

Pk20 leD DlP® PocketProjector™This is the second generation of our award-winning, micro-sized portable projector. With an ultra-wide lens, the PK20 has one of the shortest image throw distances of mobile projectors on the market today. Powerful enough to project a 60-inch image, you can easily create a 20-inch diagonal screen with just over a foot of projection distance. If you’re a sales executive, trainer, gamer, traveler, or camper, you can take the “big screen” right along with you. Or use it at home for digital photo or video shows.

electronics mediaGate T1 Enjoy all your Favorite Recorded TiVo® Programs, Photos, Videos, Music, Anywhere and Anytime you like with the PoGo! Electronics MediaGate T1!

This device can be used as a media server for your network providing an easy way to upload or download media.

It can playback directly to a television, LCD or plasma screen

High quality audio and video is transferred to your home theater system via optical, coaxial, s-video, or analog RCA connections. MediaGate T1 can playback a variety of audio and video codecs currently available and is firmware upgradeable for future codec releases.

A full function remote control is provided which allows “DVD style” on-screen menu navigation of all video, music and photo files available. You can even use the remote control to browse your network for additional files on your PC or TiVo® (if available). Prices range from $169.99 for a 160GB HD to $339.99 for the 750GB model.



WIdgets continued

magellan Roadmate 3050T GPs The Magellan RoadMate 3050T GPS is one of the newest additions to Magellan’s line of auto navigation systems. Featuring built-in maps of the U.S. and Canada, the 30050T also includes a digital music player (MP3 and WMA compatible), and a photo viewer. A built in li-ion rechargeable battery makes it easier to use these features away from your car. Also included is the Magellan TrafficKitTM receiver and a 3-month starter subscription, which provides live traffic incident reports to avoid accidents, road work and more.

Biovault 2.0 is the ultimate solution for access control. Invented and developed by Sequiam, BioVault 2.0 provides safe storage and easily controlled access for handguns, weapons, ammunition, jewelry and other valuable items including: pharmaceuticals, coins, stamps, stocks, bonds, critical data and personal documents.

BioVault 2.0 uses proprietary fingerprint technology to verify identification and permit access, is easily programmable and can store up to 50 authorized fingerprints in its flash memory.

BioVault 2.0 requires no external computer or power to function, no key or card to provide override. The BioVault 2.0 power management system allows 3 common household D-cell batteries to last up to one year under normal use. An auxiliary AC/DC adapter conveniently plugs into an electrical outlet to provide an alternate source of power. Flash memory retains fingerprint data even during complete battery or electrical failure. 12.5” wide, 17.75” long, and 6” deep



WIdgets continued

Unlike most other trolleys on the market, the stewart Golf X3R Remote Golf caddie was specifically designed to be remotely controlled. This means that it has the ability to remain stable on the most challenging courses without help from you, meaning that you can just concentrate on your game. After three years on the market, the X3 Remote is the clear leader. After recieving rave reviews by the leading golf magazines, the X3R was crowned ‘Best Trolley’ by the readers of Today’s Golfer in their 2007 Awards. The compact handset allows you to move the machine forwards, backwards, faster, slower, left and right from up to 50 metres away. You can also program up to 4 walking speeds into the handset so that the X3R always runs at your pace. A high-performance 12V 30 Ah battery provides enough juice to play up to 27 holes on a single charge — a healthy walk of over 8 miles. It folds down to easily fit in most car trunks. And the charging station plugs into standard outlet. $1,995 from Sharper Image.



some stage. There’s a number of directors like Joe Wright. I’m very curious about a number of directors. I could name a huge list. But whether our paths will cross, I don’t know.

You’ve largely avoided the typical career path of your aver-age, run-of-the-mill Hollywood actress, making some fairly in-triguing project choices along the way. To what do you at-tribute your eclectic taste in roles?

I think it comes from be-ing a strange child and just having a slightly different view of the world. I think it’s very complicated, whatever it is that makes you what you are. I’m not a psychologist, but I know about my existence within my head when I was little. A lot of the same obsessions or ideas I had when I was six, seven, eight and nine are still being played out now.

You move from sublime roles such as legendary photog-rapher Diane Arbus in Fur to larger-than-life characters such as Marisa Coulter in The Golden Compass seemingly at will. Do you prefer one over the other?

No, I like the balance. I wouldn’t want to do all of one. So much of what I do now is instinct. I get drawn to different things at different times, and sometimes go against the advice of what I should be doing. But if it’s in your gut, you’ve gotta do what you want to do, and if it doesn’t work then I’ll take the rap for that. If it does work, great! But I’m fortunate in the sense that the stuff I’ve been doing recently has been so diverse.

You’re notorious for submerging yourself so deeply into your roles that it’s often difficult to discern where Nicole Kidman ends and the characters begin. Where does that sort of intensity come from?

The lines between life and art get blurred at times, but I think that’s a good thing. If you take what exists within you and put it into your work, in some ways you’re feeding some-thing that’s not so indulgent. You’re taking it to a different level, expressing yourself but also trying to reach out to a broader group of people. You look at somebody’s work as an actor and you can see their emotional life being fed into it and you can kind of feel them through it.

You obviously have to give completely of yourself to in-habit these parts so thoroughly. What do you take away from them after filming wraps?

I think every role has an effect on me. I took something

from [working on The Golden

Compass] just like I took s o m e t h i n g from working

with Stanley Ku-brick and Hen-ry James [on The Portrait of a Lady]. E v e r y t h i n g feeds you, even if you

don’t quite know how in

the moment, but there are certain

things that have more relevance to you or

speak to you more clearly. I think that’s kind of what The Hours was about – this writer who’s now dead influenc-ing other lives on a

very profound level through a novel. That’s so beautiful, but it’s something we don’t get to experience every day.

Nicole Kidman was born on June 20, 1967 in Hawaii. The ballet adorer who moved to her parents’ native Australia about three years later started acting on television and movies in the Outback in 1983. Some 30 movies and three Golden Globes later, Kidman is set to star in the earlier-mentioned Austra-lia and The Reader later this year. A quick Google search re-veals as much. But what of the stuff linking these benchmark events? “People expect a beginning, a middle and an end,” Kidman says of the viewing public. “Obviously, we’re born and we die. With everything that happens in between, there isn’t a beginning, a middle and an end that we’re able to follow in a linear way.”

We are able to gather this much about Kidman: When the starlet speaks of her loved ones, you can almost hear a glow in her voice. From the picture Nic paints, for every paparazzi flash pop, there are at least 10 warm moments involving her as a sister, wife or mother. Kidman’s two adopted children, Conor, 13, and Isabella, 15, come from her headline-making, decade-long marriage to actor Tom Cruise. Kidman has previ-ously spoken out about wanting to expand her family with current husband, country singing star Keith Urban. No fur-ther details on the subject are revealed here. Nicole does, however, say loads about being loved, being a workaholic and

sometimes wanting to become anonymous. Do you bring anything from the relationships with your

family into your roles?I don’t want to do the things that I know. I’m interested in

that psychology that I don’t know. I’m interested in learning and the maze of the human mind and different people’s na-ture and the way in which we play that out. That fascinates me and continues to fascinate me. Human beings fascinate me. My own references are probably less interesting to me. My re-lationship with my sister, I’ve talked about it. We’re very, very joined I would say. We’re twin-like in our relationship. She’s a huge part of my life. There’s an enormous amount of support there. I wouldn’t have gotten through parts of my life without her. I’m sure she’d say the same thing about me. The com-bativeness of this relationship is what interested me. I think it’s fascinating that you have this expectation because you are family that you should be getting along. A lot of people in this room, and in the world, that would say, “Umm, I don’t get along with my family. I should and I’m trying. But for what-ever reason, just because we have the same blood running through us, doesn’t mean that we necessarily have chemistry together.” That’s fascinating to me. I love being a part of sto-rytelling that sort of explores human psychology.

You and co-star Jennifer Jason Leigh really acted like sisters in Margot at the Wedding. How did you do it?

We’ve both done a lot of work. We are both very passionate about what we do. We both take it really seriously. We honor it. I do. I used to sort of diss it a little bit, but now I say, “Oh, I’m an actor.” That’s okay. I don’t have to apologize for that. You step into the rehearsal process and [for this movie] you know you have two weeks. We immediately started by being tactile and opening up secrets to each other. It’s so lovely to work with someone who just gets it and works on that deep level and willing to work on that level. She isn’t freaked out by it. She has such an enormous knowledge of her craft and is willing to share it. It’s rare that you’re giving two female characters in a movie that require that kind of commitment. It was just lovely to be able to watch her and stand back and go, “You’re just so talented. I’m so glad that your husband has written you such a great role.” It was so lovely. And to see [Noah Baumbach, Margot director and Leigh’s husband] sup-porting her in that way. I think they’re going to make some wonderful films in the future as well. Hopefully, we’ve got an-other union like [Nick] Cassavetes and Gena Rowlands.

Your kids are 13 and 15. Do you see them going into the business?

My daughter would say that she’s 21 to get anything. I actu-ally started acting when I was 14. I didn’t have stage parents or anything. That was just me saying that I wanna do this. I was reading The Seagull in my bed and my mom was like, “Who is this child?”

You’ve always seemed very determined in your career, even when your personal life seemed to be coming apart at the seams. Why do you think you’re so driven to suc-ceed as an actress?

niColecontinued from page 49

some stage. There’s a number of directors like Joe Wright. I’m very curious about a number of directors. I could name a huge list. But whether our paths will

You’ve largely avoided the typical career path of your aver-typical career path of your aver-typical career path of your average, run-of-the-mill Hollywood actress, making some fairly in-triguing project choices along the way. To what do you at-the way. To what do you at-the way. To what do you attribute your eclectic taste in

or ideas I had when I was six, seven, eight and nine are still being played out now.

You move from sublime roles such as legendary photog-You move from sublime roles such as legendary photog-You move from sublime roles such as legendary photographer Diane Arbus in Fur to larger-than-life characters

The Golden Compass seemingly

I think every role has an effect on me. I took something

from [working on The Golden

Compasslike I took s o m e t h i n g from working

with Stanley Kubrick and Henry James [on The Portrait of a LadyE v e r y t h i n g feeds you, even if you

don’t quite know how in

the moment, but there are certain

things that have more relevance to you or

speak to you more clearly. I think that’s kind of what The Hours was about – this writer who’s now dead influencing other lives on a

very profound level through a novel. That’s so beautiful, but it’s something we

continued on page 52


It’s a weird thing, because it’s not about going to parties or driving or getting an award, but about you having something inside you that you need to express. I don’t know any other way to explain it. I’m glad that I’m getting to tell stories, or part of stories, that I feel are important. I’ve been in the place where you’ve been dying to express yourself or dying to have some sort of outlet and you’re not being given the chance. So much of being an actor is being given the opportunity, be-cause you’re not the writer and you’re not the director. It’s really nice to be given that chance now.

You’ve been accused in the past of being something of a workaholic. At what point does it go from being a creative passion to being an obsession?

I suppose it doesn’t really feel like work to me. It doesn’t feel like a drive, but more like I’ve had these opportunities. Everyone seems to talk about filmmaking as work, but I don’t see it as work!

So how would you describe it? I just see it as something I love to do that’s a form of artis-

tic expression. It’s more about the joy of being asked to play

these roles with extraordinary directors. For me, acting is not a business. It’s about trying to make pieces of art that I believe in and that I can feel proud of, and the journey behind that. There’s no drive, but more of an acceptance of what my life is, which is that of an actress, and somebody who absolutely loves what they do and would continue to do it whether you paid me or not, because I’m dedicated to it.

Is it difficult to balance the demands of your busy pro-fessional life with your responsibilities as a mom?

Sure. But it’s important for me that my kids are a part of my life. That means they come to the film sets, they’re aware of what I’m doing and they get to give their own opinions in terms of the different characters I play. But they do have a somewhat complicated life, and it’s something you feel guilty for and something you apologize for. It’s the kind of thing where you say [to yourself], “Well, they’re going to get an education out of this that will be slightly different.” But I just think that anything you can do to stimulate a child artistically is really important. So who knows how it will all turn out in the end? But I’m trying my best to incorporate them and keep them around me so that their memories will be very vivid in relation to the work I do.

You earned an Oscar for your portrayal of Virginia Woolf, a role in which you were virtually unrecognizable.

Do you ever wish you still had that prosthetic nose, so you could put it on and not get recognized as Nicole Kidman for a while?

Yeah, that was amazing. When I had it on I wouldn’t get rec-ognized. The paparazzi would be outside my trailer, and I’d use a different name when I walked out, so they had no idea it was me. It was great because I love to go to flea markets, and that’s one thing that has become a little more difficult for me now. So yeah, I’d love to have a disguise, but I think it’s not really becoming when [celebrities] complain about that. In terms of me as an actor, the directors that I’m working with and the roles that I’m working on are just glorious, and I know it doesn’t last forever. So I just have to learn to smell the roses a little bit.

Is the price you’ve had to pay — your anonymity — ul-timately worth it?

Once it’s not, I simply won’t do it anymore. I have children. I have a husband. I have a whole other life. I have many other interests, so I don’t really see myself as an actor for the rest of my life. When that creative drive dries up, I’ll walk away. I think there are times in your life when you don’t even know why, but you just have to do these things that come out of you. You can’t even control it, so you just succumb to it and see where it takes you.

niColecontinued from page 49


Have you ever found yourself indulging in the service nirvana of a five-star hotel only to ask yourself, why don’t the people in my home work like this? Why isn’t my room

prepped perfectly each day, my favorite newspaper and breakfast awaiting me each morning, my needs anticipated, my instructions followed the first time? Most of all, why isn’t my staff as polished

and cheerful and constantly striving to exceed my expectations? Could it be that such world class service simply isn’t realistic in a private home?

lIvIng a FIve-star

lIFestyle…at Home

by Travis Dommert


Ask a fine hotelier. Tell him he has but one resident to please, only occasional guests, fewer than 50 rooms, and several weeks a year he can close for maintenance while the guest is out of town. That hotelier would likely tell you he could deliver five-star service with one hand tied behind his back!

So what is it that the fine hoteliers know that most house-hold employers do not? The biggest secret, which probably comes as little surprise, is that there is a method to their mad-ness. There is a process behind their seamless guest experi-ence that transcends chance. There is a team of profession-als working from a carefully-crafted playbook, who doggedly drive mistakes from their operation and solve problems be-fore they happen. And, there is a five-star rating they strive to achieve and tirelessly defend.

And in this assessment, we stumble upon the key to their success… they run a professional operation. Do you? Do you have a home whose service objectives are quite literally cast in stone? Do your staff members know what behavior is expect-ed of them at all times? Are the daily aspects of their jobs writ-ten, rehearsed, and executed so well they could recite them? Do they have incentives to perform as a team? Are they recog-nized and appreciated for being the best at what they do?

If you answered no to any of these questions, fret not. You are hardly alone. We estimate that less than one percent of homes operate at a world class level. Fewer than five percent have the written service standards, training, and performance management necessary to deliver even modestly consistent service. That is not, however, to say that you should accept this in your own fine home.

casT YOuR visiOn

The first step toward your five-star lifestyle can be done by no one but you. Spend a few moments thinking about your lifestyle. What is important to you and your family? What things (large and small) make you happy or infuriated in the course of a given day in your home? Take notes. Until you can put in writing the unique vision of service that would make you happy, no one on earth will successfully deliver it to you.

If this feels akin to the painful exercise of writing your com-pany mission and vision statement, you are on the right track. The upside is that there is no board of directors or committee (less perhaps your spouse) to tell you your vision is too grand or too simple. There is no one to water it down or tell you what to say or how to say it.

The key is that it truly reflects how you want to live. Say it in ten words or ten pages… but say it. Whimsically… We like a clean house, but we don’t take ourselves too seriously... or more formally… Our household values excellence in all en-deavors. We are gracious to one another, but most of all to our guests. Protocol is to be adhered to at all times. (Of course, you will have to define that protocol, teach it, and measure adherence to it if you expect it to be followed.)

esTaBlish values anD sTanDaRDs

With a vision in place, you can move to values and the ser-vice and behavior standards that reflect them. What key ac-tivities or behaviors… three, five, ten, or more are absolutes

in your household? How should people behave? …always or never? Again, you can insist that people laugh at every oppor-tunity or refrain from displays of emotion. The curtains may need to be drawn every day at precisely 7:00am or perhaps you ask that no one touch the draperies, ever. If you could care less about draperies, maybe there is a particular bottle of wine you want on hand in the cellar.

After all, this world class service experience is only for you. If you are fair, reasonable, respectful… and most of all, spe-cific, you will be able to attract people to your household who fit your brand of service. We will get to finding those people shortly.

DeFine ROles anD ResPOnsiBiliTies

The most important factor in attracting and retaining top performers in any occupation is clarifying exactly what is ex-pected of them. While this may take time and involve a painful iteration or two, the time you invest in planning will pay divi-dends. Free yourself from the confines of what you have, and instead think logically about what you want done and who would mostly likely possess those skills and talents.

If you are unsure how much responsibility a housekeeper or governess can handle or what types of activities might be too much to ask of a personal assistant, seek professional in-put from a reputable estate staffing service or domestic con-sultancy.

If you want spotless cleaning for a 10,000 square foot home, precise pressing, and professional-caliber child care, the odds are high that the housekeeper your neighbor hired through the club probably won’t do. You may need three or more pro-fessionals… a housekeeper, a laundress, and a nanny.

On the other hand, if you just want a healthy meal pre-pared each day, someone to keep your home tidy, and the occasional errand run, don’t feel it necessary to hire a chef, butler, and personal assistant. A strong housekeeper should do the trick (perhaps after a culinary class or two.)

hiRe TOP TalenT

Clear direction is essential for success, but without the right people on the team, you will be left trying to explain your service vision to staff simply showing up for a paycheck. In the popular words of author Jim Collins in his best seller Good to Great, you need to get the ‘right people on the bus.’

As you probably know from hiring professional staff at work, top talent rarely spends the weekends pouring over the classified ads. To attract top talent you need a well thought out and holistic selection process. How do the hotels do it? They recruit 24/7, 365 days a year… constantly sifting candidates. They use phone screening, psychological assess-ments, behavioral interviews, and thorough background checks.

If you are going to be as thorough, you may want to carefully consider a professional recruiting service with experience staffing estates, but if you choose to do it yourself, be patient. Expect to review 5-10 candidates to identify some-

one you want to interview and 5-10 interviews to find the per-son you want to hire for any position, unless candidates come prescreened.

Assess candidates based on both their teachable skills and experience working in a home like yours (or an environment similar to the one you envision), as well as their unteachable talents. Check references (note: if a reference says someone was just okay, keep looking… you want to hear former em-ployers say the person was ‘excellent’ or ‘beyond excellent’!)

Plan for your interviews and be sure to do more listening than talking. Most household employers spend their inter-view time explaining what they want done and simply ask-ing, “Can you do this?” (Of course, the most common answer among people who need a job is “yes”.) Instead, ask them in what type of environment they perform their best? What type of employer do they prefer? You can always bring back your finalist(s) to explain to them more about your expectations.

sTaRT sTROnG

The single most important day in the tenure of an em-ployee is day one… your opportunity to cast your vision, set high expectations, and establish the tone for the household is largely won or lost on the first day.

Explain your household values and service standards. Give examples. Introduce the new staff to the existing team, and explain in detail (and in writing) who everyone is, what each person does, and what makes each person unique.

Next, provide explicit training on every key responsibility against which the employee will be measured. Either provide the training yourself, have a qualified existing employee lead the training, or hire a professional.

Remember to put the training essentials in writing. What items in what rooms are cleaned on what days using what sup-plies? At what supply level should a reorder be placed? Who




orders the supplies from where paid for by whom? Success is in the details. The more you invest now, the more frequently you can simply say “take a look in the household manual”.

ReTain YOuR PeOPle

Your professional household staff is really no different than the professional staff at your office. They are top performers, and like other top performers, they are in demand. Take the necessary measures to keep them happy and focused on serv-ing your family.

For one thing, make sure your total compensation package is at or above the market average. There will always be some-one out there willing to pay a little more, so as long as your

compensation plan is fair and subject to review annually, you can check this box and move on.

Note: Healthcare benefits, a car, and car insurance are of-ten strong incentives in the domestic employment industry. If you can, offer them… even if you choose to take a little bit of salary off the table. If you can not or would rather not bother, offer a monthly stipend that is earmarked for these expen-ditures. After all, you don’t want your staff to avoid routine medical care or driving an unreliable vehicle to work due to the cost. A lack of medical care could contribute to a health crisis later and an unsafe or unreliable vehicle could result late arrivals, absenteeism or accidents.

Utilize a domestic tax and payroll service to make sure both your taxes and those of the candidate are withheld and sub-mitted properly. These services give you access to employ-ment law and tax expertise, as well as automate the payroll

process so you don’t have to spend time cutting checks every pay period. They can also identify any applicable tax breaks for which you qualify.

In addition to it being law, paying employees on the books also helps your employees. It establishes an earnings history so they can apply for loans and allows them to earn social security benefits in retirement.

Aside from compensation, invest in your employees’ abili-ties and feelings of worth. Suggest classes or seminars at your local college, chamber of commerce, library, or culinary insti-tute to help employees sharpen their skills. Encourage them to read and offer an incentive for outside development ini-tiatives. As well, help them connect to resources in the local community to help them feel a part of their surroundings.

Recognize and reward them publicly when they do well… and do it often. Offer cash and non-cash incentives that re-

ward both personal and team achievement in your home and don’t wait for a holiday to show your appreciation.

Meet with them at least every other week to air issues in the home and address performance concerns privately. If the staff feels threatened or afraid to speak up when things go wrong, you may find things brushed under the rug until someone finally quits to work in a more open environment.

Finally, position them for success. Staff members are less likely to leave when they are successful in their jobs. Aside from training them and encouraging them to develop further, surround them with appropriate support.

At a minimum, keep a binder of approved vendors and contractors for both the routine and the unexpected. Will your staff know who to call if one of the appliances fails? Will they know what to do if the power goes out? Will they be able to handle a flooded basement without your involvement?

The more you spell out, the fewer questions you will have to answer in a crunch, and we all know that things tend to go wrong when it is least convenient.

Equip them to do their jobs well. Give them the authority to make routine decisions, and trust them to perform at their best until proven otherwise.

enD On a hiGh nOTe

When the day comes that a member of your staff decides to move on, take the extra effort to end on good terms. Even if your employees stay longer than the average two year tenure common among domestic employees, some level of attrition is nearly inevitable. And whether you want them to or not, former employees talk.

Abusive or uncaring employers can quickly gain an unsa-vory reputation among employees and staffing agencies, lead-ing the most talented domestics in the area to steer clear of their homes. Conversely, if you are among the best employ-ers, not only will attrition be low. Your reputation will precede you.

If the change is due to performance, be gracious enough to offer severance pay consistent with the years worked (typi-cally one week of pay for each 1-3 years worked). Conduct an exit interview and ask the staff member to be as candid as pos-sible about your strengths and weaknesses as an employer. And, provide some level of assistance in helping the candidate find a new position.

If the change is for personal reasons outside your control, be sure to ask what three things could have kept the person from leaving. You just never know what those things might be, and it is not uncommon that a resignation can be with-drawn with a little creative problem solving.

To recap, a five-star lifestyle is possible at home.Cast your visionEstablish values and standardsHire top talentStart strongRetain your peopleEnd on a high note

This may sound easy; unfortunately it is not. If you want the results, but don’t favor the drudgery, consider hiring a qualified household manager, butler, or consultant to help with the strategy and legwork alike. The good news is that the approach takes less and less of your time as you go, and you will end up not only enjoying a well-run home, but the envy of your friends.

Travis Dommert is the Chief Operating Officer of The Lindquist Group. The Lindquist Group specializes in domestic staffing and advises high net worth families on the efficient opera-tion of their homes. The group, established in 1890, repre-sents America’s most recognized society, government, busi-ness and entertainment leaders. Today, the agency operates from five offices: New York City; Greenwich, Connecticut; At-lanta, Georgia; Palm Beach, Florida; and London, England. www.thelindquistgroup.com.

Five STar liFeSTylecontinued from page 55




One of the first major projects I took on as a baby economist in the late 1970s was to build a large-scale economic model of Texas. At that time, the Lone Star State was in the midst of an “Oil Boom” (also known as the “Energy Crisis” in most places). I quickly discerned that I needed to know as much as I could about this fascinating commodity.

First and foremost, the price of petroleum at any point in time is dependent on three things — supply, demand, and what-ever wacky things are driving speculators at the moment. This phenomenon is true in most active markets, but the last part takes on a whole new meaning when it comes to oil. The speculators that drive the action travel in packs and often pick up stragglers along the way. Tankers leave the producing regions en route to their customers and — believe me — they don’t go changing course in the middle of the ocean. Nonetheless, the ownership of their cargo may change hands scores or even hundreds of times as they steadily motor across the water.

It is admittedly an inexact science and fraught with peril, but a question I periodically pose for modeling purposes is “What would the price of oil be if there were no speculation involved?” In other words, if you looked at the quantities needed to run the universe, the costs of production, and the required returns in a risky, capital intensive industry, where would the price be? The best I can tell, the answer is somewhere in the low to mid-$40s per barrel.


oIl at $100!! you aIn’t seen notHIng yet!!There is probably nothing more bewildering these days

than the gyrations of the global oil markets. Prices have surged to historic heights — surpassing $100 per barrel

for the first time — and the daily ebb and flow is often dizzying.

by M. Ray Perryman


Why, then, is the price more than twice this level? Most of the nanosecond-by-nanosecond assessment of the oil mar-ket focuses on petrochemical supply interruptions. One ma-jor source of such concern is political unrest. At least a por-tion of this phenomenon leads to permanent uncertainty, which tends to keep prices above the basic levels on a more or less consistent basis. For virtually all of recorded history (and probably quite a bit longer from what archeologists can tell), there has been turmoil in the oil-rich Middle East. Thus, it is highly unlikely that full and lasting peace will break out today (much as we might wish it), and a cloud hovers per-petually over this critical part of the world.

There are, however, times when the perceived risk is higher than usual. One of the factors which led to the recent flirtations with $100 per barrel was the noise being made by Turkey, the Kurds in Northern Iraq, and even the US about a potential conflict in Iran. Other parts of the planet also get in on the act. Nigeria, Indonesia, and venezuela, for example, are all in the midst of extreme turmoil, and Russia has its own set of tensions. Unexpected twists and turns in any of these volatile regions can send prices soaring. It seems as if West Texas, the home of the largest petroleum deposits in the continental US, is about the only place with a lot of oil that is not in some state of disruption. With the exception of Friday nights during the fall, these folks get along rather well.

I should mention that the threat of oil supply interrup-tions probably gets far more attention than it deserves. Ways are usually found to get this precious resource for which there is such a voracious appetite to those who want to buy it. Even during the midst of the hottest conflicts, oil usu-ally flows. During the bombing of Iraq, an occasional “smart bomb” would be off target a bit and cause unintended dam-age. A bomb has never been made, however, that was stupid enough to hit an oil field.

The other factor that most frequently conjures up fears of supply interruptions is weather — particularly hurricanes and typhoons in areas were there are large offshore produc-tion and/or coastal refineries. This segment of the specula-tion mix has been more prominent than usual of late and also played a role in the recent surge. The reason is some-what interesting.

The psychologists who study behavior as it relates to the economy have taught us in recent years that, despite all of the protestations and textbooks to the contrary, we humans at times tend to do systematically irrational things. One of these tendencies where we just can’t help ourselves is the over-reliance on recent information.

What does this have to do with oil? The odds of a major storm doing substantial damage are not materially different than they were 50 or 100 years ago (they are slightly higher due to global warming, but over such a short space of geo-logical time, the disparity is hardly noticeable). Nonetheless,

we have just witnessed the devastation of Katrina, so we at-tach a higher probability to such an event than we should. Thus, whenever there is the slightest puff of wind out in the ocean somewhere, the market self-talk goes something like the following: “That thing is going to pick up speed, become a colossal hurricane, head into the Gulf of Mexico, and start looking for drilling rigs! Every time it sees one, it is going to rush over and knock it down! When it gets tired of rigs or can’t find any more, it heads to the shore and starts look-ing for refineries! Every time it sees one, it is going to blow through the middle of it, making sure to hit every scintilla of capacity along the way!”

This discourse is admittedly a bit stylized, but you get the picture. Because of recent experiences, there is an exagger-ated effect from “storm season.” Barring another Katrina-type disaster, this effect will gradually diminish to “normal” levels over time.

Another factor that plays into the recent run-up is the value of the dollar. It has taken its lumps lately, and the cur-rency market gets intermingled with the commodity market as producers try to increase global purchasing power. As is often the case in our complex integrated economic system, the causation tends to run both ways (which gives numbers geeks like me something to do). Our incessant need for oil puts a lot of dollars into circulation which tends to dampen the value. At the same time, the fact that we are now buying all of this oil with “cheaper” dollars tends to drive up the stated prices. Basically, when you get the currency specula-tors and the oil speculators in the same mix, you can get some rather strange outcomes. (The rather bizarre recent pattern in the money markets is a whole other story for an-other time.)

The other things that lead to speculation are somewhat more mundane. Refinery capacity is tight relative to daily needs in high use periods, so any unexpected outage or pipeline malfunction will lead to a temporary spike. In the heightened uncertainty currently grasping the market, even minor disruptions can cause notable price movements. Even the weekly inventory reports cause substantial gyrations if they come in a little higher or lower than the analysts’ best guesses.

Lest we forget, the other components of the equation —

supply and demand — also matter. Simply stated, the world is demanding more oil. This pattern will likely continue for the foreseeable future, due in large measure to the emer-gence of many developing nations as more active global producers and consumers. As a simple example, if current rates of increase in China persist, average per capita usage could increase by 6 barrels per year in the next 12-15 years (because of the relatively small area of the country that has been assimilated into mainstream activity to date, it could be even more). Admittedly, 6 barrels of oil is not a lot, but when you multiply it by 1.3 billion people and add in a few other areas of the world that are at similar stages, it becomes diffi-cult to envision production keeping pace. Even in the United States, when 5% of the global population consumes 25% of the oil in the market, the thirst continues to expand.

On the supply side, there are drillers everywhere they can find a place to poke a hole, and a few large discoveries have been announced. Unfortunately, however, geology is not our friend. Most of the oil that is cheap and easy to get at has al-ready been consumed. Continental United States production has been falling consistently for more than 30 years. When oil was around $10 per barrel, rigs were idle, and the indus-try was in the tank — when it was said that pigeons were the only ones in Midland, Texas capable of leaving a deposit on a Mercedes — production fell. When, like recently, the price soared to $100 per barrel, rigs were churning, and the industry was flush — when Midland ranked among the elite cities with the highest per capita increase in the country — production also fell. There is plenty of oil left, but it is hard to coax from the rocks below. The dinosaurs were not so friendly with a lot of it. The same phenomenon is also begin-ning to occur in some of the oil-intensive parts of the world that have been pumping inexorably for several decades.

All of that to say it appears likely that, though there will be wild swings based on all sorts of real and imagined phe-nomena that stoke the whims of speculators, the fundamen-tals of the market strongly suggest an ongoing upward trend in prices. Keep in mind that, unlike the “crises” of the early 1970s and 1980s, there have been no supply reductions or interruptions, and the Organization of Petroleum Export-ing Countries (OPEC) has generally behaved in an orderly and reasonable fashion. To be sure, there are plenty of weird machinations going on (as discussed above), but, under-neath it all, we are rapidly using a lot more oil and will con-tinue to do so. In fact, it is difficult to imagine that, in the absence of massive discoveries of easily accessible crude or miraculous scientific breakthroughs in efficiency or alterna-tive fuels, that prices will not surpass $200 per barrel in the next ten years.

What does it all mean? First of all, the media has widely covered the fact that, when adjusted for inflation, prices are now at about the level of prior peaks. Since those earlier times were accompanied by rather severe recessions, how have we managed to keep growing through this one?

There are a host of factors contributing to this phenom-enon, related to everything from productivity to globaliza-tion to changes in fiscal policy. The most telling and impor-

oilcontinued from page 59

∏…tHe tHreat oF

oIl supply InterruptIons proBaBly gets Far more attentIon

tHan It deserves.


tant, however, is that we consume about 40% less energy per dollar of gross domestic product than we did in the early 1980s. That change stems from myriad sources, including the rise to prominence of the service sectors (which are less energy-intensive than manufacturing), the lingering effect of conservation efforts, and energy-saving technologies. Simi-larly, while consumers typically spent 6% of their income on gasoline at the previous peak; today, they only spend 4%. Thus, while the absolute price of energy is at or near the prior peaks, its role relative to the rest of the economy has diminished (that Einstein guy really was onto something.)

What does the future hold? If the past teaches us any-thing, it is to expect the unexpected whenever “Black Gold” is involved. There are, however, a few things that can be garnered. The key thing to remember is — markets work! We will seek new technologies to better extract crude from hard to reach crevices; we will enjoy advances in energy-saving technologies; we will increase conservation; we will see more refining capacity added in an environmentally ap-propriate manner; and we will see more rapid development of cost-effective alternative energy. The brightest young brainiacs who once tinkered with hardware, software, video games, or novel dot com concepts will now be providing energy solutions. They will do so because price signals are telling them it is one of the quickest routes to the Forbes 400 or the subscriber list of ÉleGlance Magazine.

I am often asked whether we should put more emphasis on promoting alternative energy or drilling for oil. The only answer I can give is a very emphatic “Yes!” It is going to take a multi-faceted effort to meet global energy requirements.

From an investor’s perspective, there are some lessons here as well. If you have no particular regard for your sanity or life expectancy, there are real opportunities in day trading petroleum. Because of the knee-jerk and temporary reac-tions to largely inconsequential matters, there are definitely opportunities for those with personality to exploit them.

For the risk-lovers with a somewhat more balanced life-style, there will be plenty of startups, emerging technologies, and other ventures searching for angels to give them wings. Ingenuity will be at a premium in the coming years.

For those who simply want to enjoy the ride, ample ben-efits are to be found in established energy companies and those that will surface and become large as the industry morphs in new directions. Whatever your taste in invest-ments, you will find something to please your pallet.

These ramblings of an unorthodox economist may be a bit different than you are accustomed to in the “dismal science.” I can assure you, however, that they stem from decades of observing this viscous commodity that can turn the entire world topsy-turvy. I hope they bring you a prospective per-spective and possibly even some prophetic profitability.

Dr. M. Ray Perryman is President and Chief Executive Of-ficer of The Perryman Group, www.perrymangroup.com. He also serves as Institute Distinguished Professor of Eco-nomic Theory and Method at the International Institute for Advanced Studies.


Here’s a scenario many corporate travelers might recog-

nize. Jim Baylor, fictional character, is the CEO of a tropical

spirits distilling company headquartered in Atlanta, Georgia.

Jim’s company sells its products through a network of dis-

tributors in seven cities in five states from Florida to Ohio,

he also has a manufacturing plant in the Caribbean. Between

quarterly face-to-face meetings with his distributors and

monthly trips to the plant, Jim’s secretary is on a first name

basis with at least three different airlines reservation depart-

ments. Usually he travels with three to five executives, and

try as he might to make the travel time productive, he finds

it uncomfortable to discuss sensitive company business on an

airliner, even in first class.

Many of his destinations are forty five minutes to an hour

from the airport, while others require connecting flights. The

consequence being that meetings lasting only three or four

hours result in overnight stays with their inherent additional

costs. Because of the total downtime involved, Jim will fre-

quently drive to meetings in Charlotte, Nashville and Birming-

ham. For Jim, two to four hours behind the wheel actually

saves him time. Although he recognizes this inefficiency, find-

ing a better way never seems to be a priority. In fact he rarely

gives it a thought until, once again, he’s back in a long line

dragging his carry on bag through security with his shoes in

hand.

Well Jim, it’s time to give it some thought. Solutions to your

dilemma do exist. There are at least three and the right one

for you depends upon how often you fly, your actual desti-

nations and, most importantly, the value you place on your

own time. First, you could own your own airplane or co-own

one with a friend in a similar situation. Second, you could

purchase a fractional share of an airplane, or third, you could

charter a plane when necessary.

According to Anton Coy, Director of Operations for Epps

Charter Service, one of Georgia’s oldest charter companies

and located at Dekalb-Peachtree Airport in Atlanta, GA, peo-

ple charter for several reasons, but the three biggest by far are

FLEXIBILITY, SAFETY, and SECURITY! You travel in comfort;

enjoy personal service; and you arrive less fatigued. There are

no lines and no lost luggage, and the option to conduct an

in-flight meeting is yours. Since there are no people on board

the plane you didn’t invite, you are assured privacy and se-

curity. The bottom line is that your trips become productive

and it enhances your corporate image to say you flew in on a

company plane.

OwneRshiP

Owning an airplane is the ultimate in flexibility and boasts

the other advantages of safety and security as well, but it also

has a few drawbacks. The greatest of these is price. Airplanes

suitable for corporate use will range from a half million to

multi-millions of dollars depending on the mission usage and

the size of the statement you wish to make. A typical light

cabin jet such as a Cessna Citation or Raytheon Hawker would

cost between two and three million dollars. A Gulfstream v

would be closer to twelve million dollars. In addition, you

are responsible for one hundred percent of all fixed and vari-

able costs associated with keeping it air worthy. Unless you

are qualified to fly, you will need to hire pilots and pay for

their recurring training. You will need a flight department or

at least a flight management program available through most

aircraft dealers.

Maybe you have a friend with the same idea and you decide

on co-ownership. All you expenses will be halved, but you

lose much of your flexibility because scheduling will become

a headache when you both want the plane on the same dates.

Co-ownership puts friendship to the test.

FRacTiOnal OwneRshiP

Back in 1986 Richard Santulli agonized over these same is-

sues of ownership versus co-ownership when he put together

a business plan which not only solved his problem, it created

a whole new industry. He began Executive Jet, Inc. and start-

ed a concept called “Fractional Ownership.” With fractional

ownership, you actually buy an undivided interest in a spe-

cific aircraft. The size of the interest you purchase is directly

proportional to the number of hours you expect to use the

plane each year. Minimum investment is a one sixteenth share

which would be equivalent to fifty hours use. A one eighth

share would be one hundred hours and so on up to a one half

share for two hundred hours.

So, what’s the difference between owning half of one air-

plane and sharing it with a friend or owning one sixteenth

of an airplane and sharing it with fifteen strangers? The dif-

ference is that, even though you own a share in a specific

airplane, you are guaranteed usage, up to your hourly limit,

of any airplane in the fleet. So if you and your other fifteen

co-owners all want to use the airplane on the same day and

time, you each get to use one. In fact, in most cases, you can

tHe alternatIve aIr systemby Walter Knapp

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Here’s a scenario many corporate travelers might recog own time. First, you could own your own airplane or co-own their recurring training. You will need a flight department or

Decisions and compromise. That’s the life of executives and entrepreneurs, and you wouldn’t have it any other way.Evaluating upsides and downsides, making the decisions and moving on is how we want to be remembered.

Corporate travel, like all your other choices, is no different. It still boils down to valueand, as always, what you pay for is what you get.


have an airplane waiting for you anywhere in the country in four hours.

A sixteenth share of a light cabin jet able to carry seven passengers would cost around $400,000. Additionally,

you would pay a fixed cost as-sociated with pilot salaries, training, han-

gar costs, insurance, and owner support. Other costs include occupied hourly costs which refer to fuel, maintenance, catering, and applicable landing fees. If necessary, you might have to pay fuel surcharges, international fees, and insur-ance for travel outside the United States.

Disadvantages of the fractional program, much like regular ownership, are the up front costs and time commitment. The minimum commitment for most contracts is five years. If you want all the advantages of ownership at a much reduced cost, fractional ownership might be right for you. After all, Warren Buffet, Chair-man and CEO of Berkshire Hathaway, Inc. a sat-isfied customer of Executive Jet, Inc. for three years, decided to buy the company, and in 2002 renamed it NetJets. Today, NetJets touts itself as the largest company in the fractional ownership industry with service to 150 countries and over 370,000 flights annually.

Recognizing its own disadvantages, NetJets introduced the Marquis Jet Card. The card represents an alliance between NetJets and Marquis Jet Partners to offer a pre-paid sublease into the program. Sort of a “try it before you buy it” concept that gives you all NetJets services for an annual commitment of just twenty five hours. For a light cabin class jet similar to the one mentioned above, your entry cost would be approx-imately $120,000. After each usage of the plane, you swipe your card and the hours are reduced by the length of your flight.

chaRTeR

If you’re not sure how many hours you are going to fly in any given year or you just aren’t interested in parting with a large sum of money but you still want the benefits of flexible scheduling, charter-ing could be your an-swer. Chartering is the simplest of the three alternatives because all you do is contact a charter company, give them your itiner-ary and they give you a quote.

The major disad-vantage to the charter companies is the abil-ity to evaluate perfor-

mance. How do you know the maintenance history of the airplanes or the qualifications of the flight crews? What is the safety record? These questions can be answered by at least two national companies who audit charter companies and post their findings, for a subscription fee, on their respective web sites. Both ARG, US at www.aviationresearch.com and Wyvern at www.wyvernltd.com regularly rate the carriers and will provide you a source for comparing.

If you’re still looking for a deal, look no further than Char-terX at www.charterx.com. They sell “empty legs.” Here’s how it works. Suppose that Anton Coy from Epps Charter Service has a trip from Atlanta to Hilton Head on a Friday re-turning Sunday afternoon. The airplane doesn’t stay in Hil-ton Head; it either comes back to Atlanta or continues on to another destination to pick up another customer. That trip

and the one back to Hilton Head on Sunday are “empty legs.” Mr. Coy would contact CharterX with that informa-tion and CharterX would post it to their website. Cus-tomers using CharterX pay a much reduced rate because the plane is going anyway, and the Epps Charter Ser-vice collects enough money to defer en route costs. It is a “Win-Win” situation for all concerned except that the empty leg traveler has little

or no flexibility. He must be ready when the plane is ready and has no choice regarding the type of airplane.

The primary concern when choosing ownership, fractional ownership or charter is usage. Most professionals agree that if you fly over three hundred hours a year, you are a prime can-didate for ownership. If your usage is between one hundred and twenty and three hundred hours, examine the fractional options. Less than one hundred and twenty hours and you should be considering charters. In the final analysis, decid-ing whether or not to fly via the alternative air system is all about money and how great a value you place on your own time.

or no flexibility. He must be ready when the plane is ready

Phot

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Decisions and compromise. That’s the life of executives and entrepreneurs, and you wouldn’t have it any other way.Evaluating upsides and downsides, making the decisions and moving on is how we want to be remembered.

Corporate travel, like all your other choices, is no different. It still boils down to valueand, as always, what you pay for is what you get.



Andreas, how did a hunting accident as a teenage boy completely change your life?

“It’s a story I love to tell. It is almost unbelievable. I grew up on The Queen Charlotte Islands about seventy miles off the coast of British Columbia, Canada. Any one familiar with the area knows that it is a lush forested semi wilderness which lends itself to fishing and hunting. At age fourteen, I suffered a serious accident while hunting that left my right hand crip-pled and claw like. Doctors recommended all sorts of phys-iotherapy like wringing out towels or practicing crab like movements against the wall. The therapy was boring and tedious and left me feel-ing extremely depressed.

“One day, a good friend of my father, a Haida Indian artist named Gordon Cross, asked him if he could assist in the therapy by teaching me some native crafts that might help strengthen my hand. My father agreed. From Gordon and others in his family, I was introduced to Haida art. Suddenly, I was no longer bored or de-pressed. I learned sculpting, silver engraving, totemic wood carving, and carving on argil-lite, a black stone native to the region.

“The result was that I got so involved and loved the process so much that it was no longer physiotherapy, it was fun! It was nothing for me to work ten hours or more which dramatically improved my hand. It is still crippled, but you can hardly tell. I reckon that I would never have progressed as rapidly had it not been for the Haida processes I had learned.

“Without both those events happening, I would be doing something totally different today. This practice opened up the idea to me that I really could sculpt and it has lead me far from anything anyone in my family had ever done.”

You mentioned something you called “Form Feel,” what does that mean?

“It’s the ability to see the shape of an object in the material

I’m using, and then remove all superfluous matter. I just find it very easy to see what material I need to remove from a given shape to create the new shape I desire. I can visualize it and do it and I think that is the first step necessary to have a fair shot at becoming a good sculptor.”

I believe it was Michelangelo who said that sculpting marble was easy, all you had to do was cut away the mar-ble you don’t want and keep the part you do want. What do you find to be the most challenging part of working

with gems?“First, obviously is that

you are working with pre-cious material, so if you make a mistake it is very costly. Secondly, is the fact that the materials can be many times harder than steel, so you’re sculpt-ing with tools tipped with crushed diamonds. Even though I know what mate-rial I want to remove, it’s very hard and very nerve wracking.”

Are there any forms that you find particularly difficult to sculpt?

“I consider the two most challenging subjects to sculpt are women and horses. It doesn’t matter what material I use, recreating the female and equine forms are the most difficult.”

Why women and horses?“Maybe if I was just doing some generic female and equine

forms it wouldn’t be so difficult, but usually I am commis-sioned to sculpt a specific horse or a specific woman and those subjects have unique characteristics that I have to be able to capture. For instance, a mid-eastern client commissioned me to sculpt a couple of his prize Arabian horses. They were in-credibly beautiful with splendid muscle structure, and I found that I had to concentrate on every detail. I wasn’t trying to re-create a horse; I was trying to re-create “That Horse.”

Destined for the traditional career path of the German aristocracy to which he was born, Andreas von Zadora-Gerlof was saved from the military

by a crippling hunting accident and a Haida Indian. For the next thirty six years, the world benefited

from a display of some of the most beautiful, exotic, and technically advanced art ever produced.

by Walter KnappPhotography by David Behl


Andreas von Zadora-Gerlof at work in his shop, 1999.


zadoracontinued from page 65

“Prior to every sculpture, I carve a wax model and I found that if I am off by only a half of a percent on proportions, you can tell immediately. It looks dreadful and an owner would say, “That’s not my horse.”

“The same thing is true if a man wants you to sculpt his wife or daughter. He knows all her nuances and mannerisms and can tell immediately whether or not you captured her pre-cisely or were slightly off. I had a client in Texas that asked me to sculpt his daughter as a pixie. The young woman was ab-solutely gorgeous, and I got to spend several hours with her and also had several photographs to use as I tried to learn as

much as possible to adequately complete the project. I carved her out of crystal and thought I had done a pretty fair likeness. When I showed it to her father he noticed immediately that the some of the expression in her face seemed off a bit.

“He was correct, of course, and I made the necessary changes to make her likeness as perfect as she. Projects like these are by most definitions absolutely art.”

If there has been a criticism of Andreas’ work it is that it is an extremely high level of precision craftsmanship, but not really art. The argument states that he is actually a manufac-turing company and not an individual artist. His company employs about one hundred and twenty people to assist in

the crafting of the final product and he utilizes a watch works factory in Switzerland to install the gears. True, that is dif-ferent than putting oil to canvas or removing a log from the forest and carving it into a statue by you alone. But the very first definition of art in the dictionary is “Human Creativity.” It doesn’t say anything about how many workers need be in-volved. Zadora’s work is defined by masterful sculpting and ingenious engineering creatively designed. If Jackson Pollack is an artist, then, without question, what Zadora does is art and he is an artist!

Andreas, what is your feeling about the art market?“These days it seems like art collecting doesn’t recognize

anything about beauty or something well done, it’s more about shock value. I don’t have a problem with art having shock

value, but I believe it should be superbly done. Some pieces today look like they were just slapped together and they sell for millions of dollars. I have a real problem with that being sustainable down the line.

“On the other hand, what I consider my art form is mis-understood. I believe, and continue to say, that you can do something or make some-thing beautifully, well crafted, and engineered and still have it be art.”

Let’s go back to the earlier years if we might. How you went from totemic wood carving and silver engrav-ing to the automatons and clocks you do today?

“My family has been going into the military for hundreds of years, and now that my hand was much better, my fa-ther wanted me to pursue that goal. My father believed that a gentleman’s truest calling was in the military. The military in the seventies wasn’t the one in

which my father and grand father served. I attended military school in Los Angeles, but didn’t have much interest. While I was there, I continued to work with silver and practice many of the other Haida skills I was taught, and even sold several pieces. Because I’m not Haida, I began to feel uncomfortable practicing their art, and I soon gave it up as inappropriate.

“It was my uncle who suggested that I learn gemology. ‘If you really love this work, you could learn to be a jeweler and gem sculptor.’ The idea made sense and I enrolled in The Gem City College in Quincy, Illinois. It might sound unusu-al, but at the time it was the best jewelry school in America. I spent two years there learning how to be a jeweler. After that, I headed for Germany and attended Idar Oberstein to

complete my training in gemology. After passing the course, I landed a position with a master craftsman to learn gem sculpt-ing. After four years, I became proficient at crest engraving, making flowers and smaller animals. I went back to British Columbia and studied on my own for another year trying to perfect my art.

“Following that year, I packed up and moved back to Los Angeles to open a little business. As luck would have it, I sold a few pieces to a dealer and he, in turn, sold one of the pieces to Dudley Moore. Dudley loved the piece and wanted more information about the artist. The dealer put us together and we became fast friends. In fact, he became my patron.”

What do you mean by your patron?“I had amassed a considerable debt while setting up my

business. My father still wasn’t convinced art was the right business for me , so he wasn’t forth coming with any money to bail me out, and banks, being what they are, wouldn’t lend me any money unless I could prove I didn’t need it. So, in walked Dudley. He helped to the point that he actually paid off my debts in exchange for a few sculptures over the next couple of years. He was a tremendous help, and he more than likely saved my business.”

What was your connection to the Faberge?“The Forbes family from New York, holders of the largest

collection of Faberge Eggs outside of Russia, heard about me and sent me some restoration projects. Christopher Forbes was pleased enough that through his help and influence, oth-er collectors sent me their repair work as well. Not only are they extremely beautiful, they are exquisitely made. I learned so much working on them.

“Every time we repaired an involved art piece, we had to develop the technology to fix them. Some of the enamel that was used no longer exists. Often the machinery to work on them had to be designed and purchased and the clients gave me the money to complete the task. The result was that my shop got more and more powerful tool wise and technology wise that after five years of restoring Faberge the like, we could perform almost any technique you could name.”

The FaBeRGe eGGs:

Between 1885 and 1917, Peter Carl Faberge and his team designed and built sixty nine eggs. The first was presented to Maria Fyodorovna, wife of Alexander III of Russia as an Easter present in 1885. It looked like a simple white enameled gold egg until it was opened. Inside was a golden yolk with a gold-en hen inside it. The hen had a crown with a ruby inside.

Maria was so happy that Alexander commissioned Faberge to provide an egg for Easter every year there after. Tsar Nicho-las II continued the tradition with his wife. Fifty seven eggs were produced for the imperial family. These were referred to as the “Imperial Collection.” The balance were made for the Kelch family of Moscow. Maria Fyodorovna fled Russia in 1918 with The Order of Saint George Egg while the others were either looted or locked up in the vaults of the Kremlin after the Russian Revolution.

Sea Turtle Watch, approximately 1", 2002, 18kt Gold, Diamonds, Cabachon Emeralds, Citrine Crystal, with shell of sculpted Citrine.



Monkey Tree Automatron Clock, 12", 2003, 18kt White and Yellow Gold, Sterling Silver, Translucent Enamel, Agate, and Jade. Articulated monkeys that move whe clock strikes the hour.


Following the Revolution, the House of Faberge was na-tionalized by the Bolsheviks and the Faberge family fled to Switzerland. In need of foreign capital, Joseph Stalin sold many of the eggs, most of which were purchased by Armand Hammer of Occidental Petroleum, a per-sonal friend of Lenin.

After the Kremlin, the largest col-lection, totaling fifteen eggs, eleven of which were part of the imperial collec-tion, was held by Malcolm Forbes. In 2004, the Forbes heirs sold the collection through Sotheby’s. The entire collection was purchased by victor vekselberg for well over one hundred million dollars. The collection was returned to Russia. Of the original sixty nine eggs, only sixty one have survived. Counting the veksel-berg collection, Russia has thirty. There are small collections in the virginia Mu-seum of Fine Arts and the New Orleans Museum of Art. Four eggs are believed to be in private collections and eight are missing. Of these, two eggs, Royal Dan-ish of 1905 and The Alexander III com-memorative of 1909, are the only ones to even have photographs.

When did you decide to move from Los Angeles to New York?

“During the time we were working on the Faberge Eggs we took on other proj-ects and most of that work was coming from the East. My sculpting was getting stronger and stronger and I was chal-lenged by my clients to do bigger and bigger pieces. It became apparent that we had a solid market in the east and it was necessary to move closer to it.”

On the new pieces, were you build-ing them along the same lines as the Faberge Eggs?

“No, our clients kept asking us to build automatons and clocks well be-yond the scope of Faberge. It seemed like our clients were challenging us, after each piece, to go farther then we did on the last one.

“I promised myself and my clients that I will never redo a design. If you own a Zadora watch, it is a one of a kind master-piece. So, to continually reach beyond the last design, when we thought the last one was the ultimate, really stretched our creative limits.”

Let’s shift gears again one more time. What inspired you to do the skull exhibit in London?

“Ah, now that was kind of fun. Actually it was the inspiration

of Tim Jefferies, a renowned gallery owner and international Bon vivant. I knew who Tim was, but I had never met him until one day we literally met on the street. A cup of coffee lead to a discussion about how we might work together and the next thing we were seriously trying to figure out how to make it work.

“During a lunch meeting he commented that my work

was too pure, and he wanted to know if I had a dark side. ‘Not really,’ I said. To which he replied, ‘didn’t you do a skull once?’ Of course, I had done a skull for a client in Mexico. Our conversation ended with the decision to produce twenty five skulls from a variety of material and build a show around them. Each skull was cut from a solid stone such as jade, ag-ate, crystal and so on. It took two years to produce the skulls. Some were heavy and masculine while others were obviously light and female. Prices were moderate, between eighty thou-sand and two hundred thousand for most of the pieces, but three of them were a little pricey, in the half a million dol-

lar range. They were on display for two weeks and nineteen skulls sold in the course of the show. Besides selling several skulls, the show was also beneficial because it introduced me to a much younger group with whom I’m not normally as-sociated.”

I realize that these prices are well below your normal commission rate, so how much time did you personally

spend working on the skulls?“Not counting the original design for

each skull and the choosing of the ma-terial, which, of course I did, about one week per skull. So twenty five weeks. After choosing the material and draw-ing the design, I did the first cut. Once the rough cutting was done, I did the finish cuts and completed each one. They were exceptionally well displayed at the show, the lighting was perfect and they showed beautifully.”

Do you still do many shows or any speculative work?

“We do very little speculative work at all. We have just our commission clients. The client usually will ask to see a con-cept drawing for an intended project. Monica, my wife and partner, will do a painting of the piece to show the cli-ent what the finished product will look like. Now, we can also do a computer rendering so that the customer can see a three dimensional and if there are to be any moving parts, it can also be seen on the computer. The client feels quite confident about what he will be getting about a year before delivery.

“I do have two requirements when working on a commission piece. First, I let the client know that I will need a significant bit of time from him. A few hours spent together a few times gets me on board with what he is thinking and exactly what he wants me to do. Secondly, I want him to know that we are working in gem stones and it’s very expensive as well.”

What about shows?“Tim Jefferies continues to want me to do a show with him

every couple of years. We will probably make that happen be-cause, as I said, it was fun and we got to meet an entirely different audience. Other wise, I truly like the commission process and our clients seem to like it as well.”

Where do you see your career taking you now?“I see me pushing the limit every day to make the most

complicated automatons and clocks possible. I don’t know


Four Seasons Clock Detail, 5", 1997, 18kt White and Yellow Gold, Transparent Green Guilloche Enamel, Chirasol, Citrine Crystal, White Opaque Enamel. A mother hen tends to her chicks as they hatch.



Four Seasons Clock Automatron, 65", 1997, Various Woods, 18kt White and Yellow Gold, Trans-parent Guiloche Enamel, Rutilated Quartz, White and Green Jade. On the hour Vivaldi's "Four Season" plays as each egg opens to reveal seasonal vignette.




where the end is, but we want to keep pushing the envelop until we find it. Currently, I am working on a jaw dropping piece for a Middle East client with the most rare and fantas-tic materials in the world. It’s beyond anything that has been made to date. Things levitate, they fly around on the hour and look alive. Something like that pushes the limits and has never been done before.

“I don’t mean to sound flippant, because I have been in-spired by so many creative and talented people, but some of these pieces have not only never been done before, but no one has ever even attempted them before. That to me is really fun. The client has bragging rights to a one of a kind piece and I have the luxury, luck, and skill to make it for him.”

Andreas, when an architect designs a world class build-ing, any one who travels down the street can view his

work. Who beside you and your client actually gets to see what you did?

“That is a very good question. If there was any element of longing in my career, and I don’t want to dwell on the long-ing part, because it isn’t really a longing. I actually don’t even know how to explain the feeling; it would be that no one else gets to see my creations. In some cases we can take pictures, but on many, we can’t. These are private treasures solely for the pleasure of our clients. That’s the way it is with commis-sion work. I know that entering into negotiations for a project, but I would like to have more people know what it is I do.

“The ones we can film and photograph I’m going to put together in a book fairly soon. There is a book in the planning stage to be published in the near future. It should be about four hundred pages long, and will be even more comprehen-sive than the last one written by Janet Zapata about seven or eight years ago. It was titled The art of Zadora, America’s Fab-erge.

“I’m hoping that in ten years or so, if I continue to have

the same great relationship with my clients that I have today, and I certainly expect to, that we can put together a retro-spective. A couple of museums have already said they would enjoy hosting it. We would hope to put a little museum tour together that would allow a wider audience to see our work, and we are hoping to find a major bank interested in doing the sponsoring.”

You spoke about a “jaw dropping” piece you are doing for a Middle Eastern client, Can you elaborate on what that might be?

“And example could be a project similar to The Dragon Fly Tree Stump Clock. Imagine that you are walking through a forest and you come across this fallen tree. The tree has be-gun to rot a little and water has pooled in the top of the trunk where the main portion of the tree has fallen away. In the pool, some frogs have decided to make their home. The frogs act as if they are alive; they swim around and alternately push

Delacorte Mechanical Clock, 60" including base, 1996, Banded Chalcedony, Rose Quartz, Opal, Diamonds, 18kt White and Yellow Gold with Guilloche Transparent and Opaque Enamels.


Aquarium Automatron Clock, 36", 1998, Translucent fish of Tourmalines, Aquamarines, Green Beryl, Amethysts and other Gemstones mounted in a Rock Crystal Aquarium. Housed in

a Lapis Lazuli and 18kt White and Yellow Gold Framework with Diamond Details. Fish designed to swim upon the hour.


each other off various lily pads. Hovering over everything is a dragon fly. If you try to reach for it, it darts away.”

How does that happen?“There are fifty different magnetic force zones and if you

interfere with any one of them, it forces the others to work against each other and causes the dragon fly to move away. She is very elusive, but she can be caught. If you finally catch her, you see that she is really a broach. When you release her again she assumes her normal position over her lily pond.”

Wow! That sounds like an engineering overload. Who does your technical and mechanical work for you?

“I have the idea and I do the first schematic. Then I have four amazing fellows (engineering types), the foremost being Gennady Osmerkin. He is my right hand man and is techni-cally way beyond me and can take the ideas and drawings to another level.

“Then we have some computer engineers, a new luxury we have added in the last ten to twelve years, because these are new technologies and the computer engineers help us to cut through the old process of trial and error. They do all the test-ing of the ideas on the computers which helps save both time and money. This allows us to create much grander products in much shorter time.”

Can you explain the planning process?“The first design is always Monica and I talking about how

the piece should look and work. I tell her what I want to make and she puts it to paper. Next is one of the most difficult; it involves finding the right material. We often use several dif-ferent stones and metals for any one project and we have to know exactly how they will interact with each other to give the finished piece the perfect appearance. The critical point here is knowing the characteristics of each stone to be used so we can determine things like hardness, coloration and so on.

“Using either a grease pencil or a felt tip pen, I draw a

rough image on the surface of the stone to show the desired shape. Then I do the first schematic and linkages. I under-stand enough to know what type of worm gears or other gears will be required. Gennady then takes it to the next level and finally, for the manufacturing part, we take it to our shop in Switzerland.

“They are so precise, and their tolerances are within mi-crons. Consider that we are dealing with something that can have as many as three thousand moving parts. It is therefore critical that every part mesh perfectly. It must work every time perfectly if we are going to charge that much money for it.”

Do you use mini computers or software programs with-in the piece itself?

“No, I try to avoid computers because they actually date the project. By that I mean a software program may only work for ten or twenty years and then be out dated and obsolete. If you build it with brass wheels in the old method, and do it perfect-



Mouse Clock, 4", 1998, Rutilated Quartz Crystal Cheese, Citrine Mice, Diamond, 18kt Gold, Guilloche with Opalescent White Enamel Face with Diamond Details Mounted on Jade Plate.


Bee Tree Orbital Dial Clock, 16", 2002, Yellow Amber Citrine, Tsavorites, 18kt Gold, Kalahari Jasper, Detachable Bee Broaches of 18kt Gold, Diamonds, Cabachon Rubies,Watermelon Tourmaline, Mounted on a Rutilated Quartz Base.



ly, in three hundred years, as I learned from the restorations, it will still be working. If it ever is in need of repair, a techni-cian with some understanding of engineering and some basic watch working tools can rebuild or replace any moving part and the piece will operate good as new. I expect that these pieces should have a life span that is virtually limitless.”

That sounds like the ultimate Swiss watch.“It is. Think about it, twenty years ago when the quartz

movements first appeared, everyone viewed it as the death knell for watch making. It didn’t happen, in fact, if anything, they became even more in demand. Sure, a quartz movement keeps accurate time for a few years, and then you throw it away and buy another one. A quality watch will last several life times. Look at how many watch repairers work on antique watches that need only minor tweaking to continue running perfectly. They are the ultimate family heirlooms.

“While I was doing the restoration projects, I remember the tremendous feeling of awe I had as I took the art objects apart. The pieces were over one hundred years old, and they could be returned to perfect condition. I could only imagine what it must have been like to have worked in Faberge’s shop in 1885. Imagine working with the tools they had at their dis-posal and building the first egg.”

You have come a long way from the fourteen year old boy with a crippled right hand, haven’t you?

“Not really so far as you might think. The confidence I have to work on any project I might imagine comes from the confi-dence I developed all those years ago while working with my Haida teachers. Sure, my tools, techniques, and skills are far more involved, but it all began with an engraving tool on silver among the Haida Indians on The Queen Charlotte Islands of British Columbia.”

To complete even the simplest project liking cutting an ani-mal from a piece of crystal can take Andreas anywhere from several hours to several weeks depending on the characteris-

tics of the material and the amount of detail desired. His tools are saws and grinders coated with diamond dust so that he can carve through the hardest material. Once the stones are carved and the metals formed, they need to be affixed to the mechanical gears that bring the piece to life.

viewing his work creates a sense of awe knowing that you are witnessing the art of a master. His simple animal sculp-tures are so life like that you actually expect them to either run off or to fly away. But his automatons and clocks simply blow you away with their intricacy of design as well as their flawless execution. As he said, each piece seems to push his creativity to another level so he can come up with the next. Perhaps his critics are correct, what he does isn’t art, it is what ever exists at the next level above art. Andreas von Zadora-Gerlof is a master and he may well be better at what he does than anyone else in the world.

For more information on or to purchase Andreas’ work call Michel Zohouri at 646-688-5599.

Frog Broach, 4", 2002, Various Color Tourmaline and Amethyst Pavé on 18kt Gold Frog with Diamond Details and Yellow Sapphire Capachon Eyes.


Circus Elephant, 12.5", 2000, Rose Quartz Standing on Top of Grey Agate, Beryl, 18kt Yellow Gold, Translucent Guilloche Enamel Details.


WHo really oWns your name?by Sterling Brown


Go on line and Google your name. Chances are if you are famous or wealthy, you don’t own it. Somebody else does. Cyber squatting is a full blown cottage industry online.

It used to be that only annoying little nerds with their dad’s credit card and nothing better to do would lay in wait for somebody or something to make news or sit around search-ing the Internet for unused famous names that someone didn’t even think the Internet was relevant enough at the time to register for themselves.

At that point in cyber history, Network Solutions had a mo-nopoly on domain name registrations. With a stiff price tag of $70 per 2 year minimum, domain name speculating was an expensive sport for the average person who had better things to do with their money.

Domain Name speculators went after generic names that they felt would fetch a hefty price once the rest of the busi-ness world caught on. And they were right.

The current king is Sex.com which sold to Escom LLC on January 19, 2005 for 14 million dollars. Some companies such as Compaq, a renowned tech company did the unthinkable by launching a search engine, Altavista, without first secur-ing the name. It cost them $3.3 million dollars to correct that mistake.

The first successful sales created an unscrupulous rush on any noteworthy name that was not nailed down. Any high profile company or person was fair game. In many cases these same people were extorted to make an offer or have their on-line name linked to a porn site or information negative about them.

Some simply had no idea that their name was already regis-tered until they got around to attempting it for themselves. In some cases, the names were so unique that trademark protec-tion invalidated the rights of the cybersquatter.

One such case was Ty Collectibles, which makes the popu-lar Beanie Babies. Ty successfully sued a woman who regis-tered the name Beaniecollectibles.com and who then tried to sell the name back to the company.

Others weren’t so fortunate. They had to make an offer. A judge threw out a case in which the publisher of Archie Com-ics tried to shut down a parent’s Web site ”veronica” devoted to his 22-month-old daughter.

In 1999 Congress stepped in with The Anticybersquatting Consumer Protection Act (also known as Truth in Domain Names Act). It made liable to civil action people who regis-ter domain names that are either trademarks or individual’s names with the sole intent of selling the rights of the domain name to the trademark holder or individual for a profit.

Of course there are gaping holes in the law in that many businesses that do not expect to extend beyond their local or state borders just do not take and interest in trademarking their name. Also as long as the cybersquatter does not ap-proach or attempt to extort money for the name, the squatter need only sit and wait until an offer is made.

Conversely with some companies who have actual trade-marks, it becomes a matter of too little too late. MGM who

business.com - $7.5 million (Nov 1999) casino.com - $ 5.5 million (Oct 2003) Korea.com - $5 million (Jan 2000) AsSeenOnTV.com - $5 million (Jan 2000)wine.com - $3.3 million+ (Sep 1999, resold in

2001 at bankruptcy auction)AltaVista.com - $3.25 million (Jul 1999) loans.com - $3 million (Jan 2000, sold to Bank of

America, GD)CreditCards.com - $2.75 million (July 2004)Tom.com - $2.5 million (Feb 2000)autos.com - $2.2 million (Dec 1999)coupons.com - $2.2 million (Dec 1999, HD)express.com - $2 million (Dec 1999)England.com, Britain.com, London.com - $2 mil-

lion (1999, sold to Globalvision)savings.com - $1.9 million (Mar 2000)mortgage.com - $1.8 milliondeposit.com - $1.5 million (Mar 2000)fly.com - $1.5 million (Feb 2000)men.com - $1.32 million (Dec 2003, full payment

fufilled May 2004)feedback.com - $1.23 million (Feb 2000, GD)phone.com - $1.2 millionfind.com - $1.2 millionmercury.com - $1.1 million (March 2004 - $700k

cash)Bingo.com - $1.1 million (2000)WallStreet.com - $1.03 million (Apr 1999, NC)CyberWorks.com + .net - $1 million (Aug 2000,

NYT)If.com - $1 million (early 2000)Britain.com - $1 millionRock.com - $1 million (1999, NYT)Sky.com - $1 million (Jan 2000)Beauty.cc - $1 million (July 2000, only $200k in

cash *)eflowers.com - $1 million (Feb 1999, $25k + 50

cents per transaction for life?)car.com - $978,000+ (2003 - “almost seven

digits”)websites.com - $975,000 (1999)BBC.com - $850,000 (originally reported as $300k

sale in Sep 1999?)ForSaleByOwner.com - $835,000 (Jan 2000, GD)drugs.com - $824,000 (Aug 1999, GD)1stbandwidth.com - $800,000 (Mar 2000, needs

clarification)jobs.com - $800,000 (needs verification)beauty.com - $800,000 (Oct 2000)Singapore.com - $800,000capital.com - $750,000 (1999)cinema.com - $700,000 (Jan 2000, GD)taxes.com - $700,000 (Feb 2000)biz.com - $625,000 (June 2000, GD)golf.tv - $600,000 (needs verification)university.com - $530,000 (1999)military.com - $500,000 (Nov 1999)computer.com - $500,000 (Nov 1999, resold for

$1 mil ?)act.com - $500,000 (late 2000)NewZealand.com - $500,000 (April 2003)ShoppingMall.com - $500,000 (Mar 2000, GD)

image.com - $500,000 (2000, GD)Wisdom.com - $475,000 (2000 or earlier)ME.com - $460,000 (Mar 2004)BlackJack.com - $460,000Art.com - $450,000Hipoteca.com - $400,000Rugby.com - $350,000 (Nov 2004)Smoking.com - $325,000 (Mar 2004)Viajes.com - $300,000 (Sep 2004)Automobile.com - $250,000 (Oct 2004 - Exercise,

Call, Makeup group)Exercise.com - $250,000 (Oct 2004 - Automobile,

Call, Makeup group)Call.com - $250,000 (Oct 2004 - Automobile,

Exercise, Makeup group)Makeup.com - $250,000 (Oct 2004 - Automobile,

Exercise, Call, group)Vote.com - $250,000eGifts.com - $250,000Hospitality.com - $230,000Arab.com - $225,000 (Aug 2004)Tower.com - $208,000 (2000 or earlier)Bingo.com - $200,000 (resold for $1.1 mil?)Engineering.org - $198,365Architecture.com - $190,000 (2000 or earlier)VisitFlorida.com - $186,000 (Aug 2004)Commerce.com - $180,000 (Apr 2004)Question.com - $175,000 (2000 or earlier)Fruits.com - $160,000 (2000 or earlier)Animation.com - $150,000 (Oct 2004)Beef.com - $150,000 (Feb 2004)Tycoon.com - $150,000 (2000 or earlier)WebCity.com - $150,000Business.com - $150,000 (1997, resold in 1999 for

$7.5 mil)England.com & Britain.com - $150,000 (1998,

resold in 1999 w/London.com for $2 mil)IQTest.de - $147,000 (May 2004)TourismAustralia.com - $146,000 (May 2004)Sexkontakte.de - $141,000 (Feb 2004)SSM.com - $145,000 (Sep 20004)MR.com - $125,000 (July 2004)Push.com - $125,000Alliant.com - $125,000PhoneCalls.com - $120,000 (2000 or earlier)Speaker.com - $120,000 (2000 or earlier)Seminars.com - $119,000 (2000 or earlier)Glory.com - $115,000 (2000 or earlier)truck.com - $101,000 (Feb 2004)woman.com - $100,000+ (Feb 2004, exact price

unknown, possibly $250k)eCruise.com - $100,000 (Sep 2004)China.tv - $100,000Free.tv - $100,000Net.tv - $100,000Blond.com - $100,000Image.com - $100,000Internet.com - $100,000Cars.com - $100,000MTV.com - $100,000Inside.com - $100,000Paintball.com - $100,000 (late 1999)Taste.co.uk - $100,000

Names Act). It made liable to civil action people who register domain names that are either trademarks or individual’s names with the sole intent of selling the rights of the domain name to the trademark holder or individual for a profit.

businesses that do not expect to extend beyond their local or state borders just do not take and interest in trademarking their name. Also as long as the cybersquatter does not approach or attempt to extort money for the name, the squatter need only sit and wait until an offer is made.

marks, it becomes a matter of too little too late. MGM who

WHo really oWns your name?by Sterling Brown

continued on page xx

These sites fetched hefty returns for a $70 investment:Highest (published) Domain Sales over $100,000

Provided by DomainFood.com


released the movie War Games in 1983 placed an unsuccess-ful legal bid against the owner of wargames.com to enforce their entertainment and product trademark. The name was registered in 1998 and MGM did not file action until war-games.com was due to open as an online store in 2006.

Even high powered politicians are not immune. New York Gov. Eliot Spitzer had to file legal proceedings to take the do-main names eliotspitzer.com and eliotspitzer.org away from Eric Keller, a New Jersey online candy retailer who registered them in 2001.

Eliotspitzer.com was used for several years to direct traffic to eBulkCandy.com LLC, a candy retailer based in Trenton, N.J.

Then there is the issue of typosquatting. Wikipedia defines Typosquatting, also called URL hijacking, as a form of cybersquatting which relies on mistakes such as typographical errors made by Internet users when inputting a website address into a web browser. Should a user accidentally enter an incorrect website address, they may be led to an alternative website owned by a cybersquatter.

In cases of Typosquatting, according to Wikipedia, the victim site of typosquatting will be a frequently vis-ited website. The typosquatter’s URL will usually be one of four kinds, all similar to the victim site address:

(In the following, the intended website is “example.com”)

A common misspelling, or foreign language spelling, of the intended site: exemple.com

A misspelling based on typing errors: xample.com or exxample.com

A differently phrased domain name: examples.comA different top-level domain: example.orgSome competing typosquatter sites will go as far as to

look and feel like the original in order to trick the user into purchasing products from them. In other cases the user is forwarded to a site nothing like what was intended by the user.

In 1997 school children looking for pictures of the Mars Rover typed in the dot COM instead of dot GOv and were forwarded to a porn site.

In 2006, famed televangelist Jerry Falwell failed in his at-tempt to stop fallwell.com with two ‘L’s from forwarding un-suspecting web surfers to an anti Falwell website. The courts upheld the bogus site as free speech.

Armed with such victories, nerds of the world, backed by investment capital, have united to form companies that pur-chase domains by the score. Speculating on news events, up and rising celebrities and personalities, and snatching up the domain names companies didn’t think to buy. You have the dot COM. They buy the dot NET.

Unless a company is trademarked, it is all fair game. And it seems never-ending as new suffixes like dot BIZ and dot Tv

emerge every few years. Closer to home, however is another story that is lost

amongst many small companies: Domain Hijacking. The only difference is that most consumers are complicit in it making it very difficult to regain control once a domain is lost.

Usually it happens when a small entrepreneur or company pays someone to set up their web site. The site is completed and the person has been paid. Then about a year later their site is either dead or they receive a renewal bill for services that is exorbitant

By this time the purchaser usually knows enough to com-

parison shop or has found another source that turns them on to a cheaper web host provider. The only problem is, the domain name is not registered to the user but to the indi-vidual or company that first set up the service and they are not giving it up without a fight.

In some cases the fine print of the contract that is never read by anyone states that the user must purchase the name at market value at the time of leaving the provider. It’s like fixing up the house you are planning to buy and then com-plaining that the asking price has gone up.

In most cases if the end user can show proof of payment and send in a complaint on letterhead to the registrar com-pany which oversees ownership, the account will be un-locked and the domain moved to another provider.

Because most do not understand this process, they typi-cally negotiate a deal with the hijacker to get their name and carry on with their business elsewhere.

Here are some tips to follow regardless of whether you have a fun or money making site:

Treat setting up an online domain with the same mindset

as setting up a bank account. After all, for companies that sell online, their website might as well be their checking ac-count.

Educate yourself as to who needs to have access to your domain and for what reasons.

Always make certain that you are listed as the Registrant which is the equivalency of the account owner. This is also the person who gets the codes to unlock and move the do-main from provider to provider.

If you are not listed on any of the contacts for the owner-ship of your domain, insist that you are. Otherwise you are

building up the value of your online presence for the people who are listed that can hijack your site.

If you employ anyone to work on or manage your website, they should only be listed as administrative or technical contact.

The moment you discharge anyone from servicing your site, immediately remove them from the registrar as a point of contact.

Learn how to lock and unlock your own domain and NEvER give the registrar unlock key to ANYONE acting in a service or support capacity. It is so rarely used that only the owner should use it under those unique cir-cumstances where you are changing contact informa-tion or host service providers. Employees have been known to hijack and sell company domain names.

Always keep your statements proving when you pur-chased the domain. This is the essential proof needed should your name ever become hijacked.

With domains as cheap as $9.99 per year or less, spend the extra few bucks to grab the other suffixes like the dot NET or dot BIZ to protect the popularity of your site from being exploited.

Consider registering for a trademark of your name if you believe your business will grow beyond your state borders. It is even wise to do a free trademark search anyway in case someone has already registered a trade-

mark for the name in the same classification. You could end up investing a great deal of money for nothing and end up paying the legal fees of the complainant for defending their right against your infringement.

INSIST upon a monthly backup of your website that you keep possession of so that, if for whatever reason your nerd drops dead from all the junk food, the next nerd does not have to start from square one.

To check who is the listed owner of a domain, go to www.whois.net. Because some marketers have been gathering lists of domain owners to solicit product to, some registrars have a privacy option that will only show their company as the point of contact.

The listed company can be contacted and with proper identity, they will disclose who the owner is. If they won’t tell you, then it isn’t you.

In high school, the nerds hardly ever got the girl but to-day they got the next best thing: The keys to your online economic future.

Where is Rikki Lake when you need her?

nerd MaFiacontinued from page xx



It sounded like something moving in the front office. Thinking is must be noise from outside, I returned to work-ing. Then there were sounds again; I went to check the front door to make sure it was locked and turned to go back to my office. One of my male coworkers appeared from inside one of the offices, which was not his. I was startled; and ask, what he was doing there? I knew that he left earlier.

He did not answer; just proceeded towards me. He pressed himself against me; my back was to the wall. He started grop-ing me. Was he going to rape me… what if he did? I knew him. Surely he’d have to kill me so that I wouldn’t tell.

I kept asking questions, what was he doing? Why was he there? I reminded him that I was married, had children and was a Christian, anything that would invoke his conscience. He wasn’t responding to my questions or listening. He just kept pressing against me harder. I could feel his strength and knew that I was no match. I tried to keep calm and in control; thinking if I could reason with him, maybe he would not be-come more violent.

Suddenly, he stopped. I was relieved. I consoled him until he left, saying I wouldn’t tell since he stopped. He treated me very poorly after that evening, even though I did not report the incident. Who do I call when I am not sure what to do?

JusT One insTance

Perhaps one of the most pervasive yet under reported is-sues plaguing personal and professional environment is unre-ported harassment.

Both men and women in today’s workplace environments experience unreported harassment in some way, shape or form. Even when reported, rarely are these reports publicized openly; rather they are swept under the rug and remain so, perpetuating a dangerous myth that such occurrences are tol-erated even accepted.

Additionally, media attention is growing, directed at high profile individuals including the recent case resulting in $11.6

million in damages for Isaiah Thomas’ verbal abuse and sexual harassment of Brownie Sanders, the highest ranking female executive with the Nicks basketball team.

A need has emerged for someone to address this pressing concern of unreported harassment for many executives and professionals not wanting to go through public scrutiny.

BReak The TaBOO

It would be great to encourage those who experience ha-rassment (mainly those currently not reporting it) to come forward and share their experiences openly via some mecha-nism such as surveys or an anonymous online forum to report unreported harassment anonymously.

It is most helpful if established organizations and public officials join forces to create awareness and legitimize the un-reported incidences. To ensure that these alternatives remain beneficial to both employees and employers, it would be best if organizations reported unreported incidences only at an industry level.

Therefore, anonymity is assured. No one individual or com-pany need be singled out by the media.

BiGGeR Than inDiviDuals—OR cOmPanies

If the focus is not on raising the level of the problem from an industry standpoint, it would be easy for attention to be-come directed to its current state.

Most frequently attention falls on an individual circum-stance, such as the case of Isaiah Thomas.

A recent example in the news is Kellogg Brown & Root (KRB), a Houston-based corporation, which is resisting at-tempts by Jamie Leigh Jones (an employee, who claims to have been raped by six of her male coworkers in Iraq) to nullify an employee contract requiring binding arbitration as opposed filing with courts, which generally results in higher damages.

By reporting results at the industry level, the focus is on the entire industry, which includes all the companies in a single

industry together addressing issues raised by watchful corpo-rate citizens. This approach helps to increase awareness and escalate the responsibility to overall companies in a particular industry.

POinTinG FinGeRs is easY

Bringing solutions is the challenge. Employers need addi-tional alternatives to handling these issues among their em-ployees, aside from the standard procedure.

Employers are often asked to be the police, practitioner and the supplier for managing harassment. This role becomes convoluted, because it encourages employers to subdue the impact of harassment by suppressing or removing individuals who raise issues.

This band-aid approach costs employers big time when they lose highly qualified individuals because of potential li-ability from a legal perspective. Plus, unreported harassment is very difficult to track internally.

a GOlDen Rule

The difficulty with tackling such sensitive subject matter is that harassment is commonly a subjective issue. Not only that, but there are many facets of behavior that could be classified as “harassment.” What is a light hearted joke to one individual could be offensive to another. An innocent motive could so-licit an offensive reaction.

Case in point: A female employee thought that another fe-male was making same-sex sexual advances and had run her hand through her hair in front of on several of their peers. Their manager laughed out loud when told in private if he did not do something to control her, the offended person would.

Harassment by the same sex is often kept secret usually because of public stigma associated with same sex sexual in-teraction.

continued on next page

Harassment: WHo do you call?by M. Sandi Aigoro, M.B.A.Founder, ProWomen.org

It was a quiet time of the day. It made sense for me to work late after everyone was gone for the day. I could get caught up and ahead before morning which usually turned out to be pretty busy.

Suddenly, there was a noise…


Well, who can deal with such ambiguity? A Golden Rule: Don’t judge. Simply support the individual,

and where appropriate, the corporation. Soliciting an outside resource may help to resolve the is-

sue, cause or emotional reaction. Often, innocent behavior by one person can be perceived differently by others. It isn’t necessary to always file a formal complaint. Understanding how to approach the situation without negative career impact is one of the best methods that you can use for re-ducing emotional stress and de-fusing a potentially negative outcome.

eQual OPPORTuniTY PROBlem

Harassment is a pervasive issue that impacts cor-porations, individuals, and employees alike without regard for age, gender, sex, religion, ethnicity etc.

With growing media attention directed to high profile litigation such as the Isaiah Thomas case, there is an emerging need for an organization that will address this pressing concern.

If you seek early assistance with managing harass-ment, try locating a resource that can step in the gap to advise you about your rights on either side of the issue, whether you feel wrongly abused or accused. Research to determine the best resource you can find; select one that is helping corporations create and maintain an environment that supports all; it would be very powerful for you to do so.

To achieve this alternative, consider using a non-profit entity that does not solely depend on gov-ernment or corporations to operate; this course of action might be very instrumental. This allows an organization to act independently and swiftly when matters arise that are not easily handled inside the corporation.

The objective is to facilitate a healthy environment that al-lows interaction with individuals, and in turn, work to reduce the occurrences going forward — not just among individuals, but in corporate environments as well.

This facilitation can be accomplished through the use of several communication mediums, including the Internet, e-blogs, radio and television broadcasts and published articles.

suPPORT aT The hiGhesT levels

Senior executives, both men and women, need help with reporting conditions that do not support reducing harass-ment.

A mechanism such as media management could be a means for providing support to report harassment, by ensur-ing access to the public for individuals who want to remain anonymous and maintain confidentiality.

iT’s eveRYwheRe

According to one former vice President of Human Re-sources, harassment in corporations is quite pervasive; this

conclusion was confirmed by interviews with numerous Hu-man Resource professionals that have left corporation to pur-sue entrepreneurial endeavors. For many, the only safe haven was to leave their jobs.

Typically there has been a social stigma attached to the concept of harassment, and it is commonly thought to affect women more than men. Men are too often assumed to be perpetrators and not victims of harassment.

Case in Point: When interviewing a senior executive, he shared that he’d been very uncomfortable with discussions that happened during a conversations with individuals that were the top corporate leadership. He was concerned; be-

cause he was a father and husband and felt the conversa-tion about women could very well have been about his own daughter. How could he have stepped up to say that this be-havior was uncomfortable for him. He was after all a high-level executive and a male. It seemed rather wimpy to step up and make a bold statement in the midst of his peers jesting about women in a sexual context. No doubt, it was not for him to take that bogie.

Additionally, harassment manifests itself in many shapes and forms. No one person is impervious to it, regardless of age, gender, race, or income status. For this reason, the situa-tion can impact anyone from the Executive Suite to line pro-fessionals.

RelucTanT TO eXPRess

Men are reluctant to speak up on the issue of harassment for good reasons. Based on the fact that harassment is a sensi-tive subject and difficult to raise in public without drawing fire from peers and the public in general, it can be very difficult to manage confidentially if you are a high profile individual.

The charge becomes how these individuals solicit support to manage harassment confidentially? An approach is to be very neutral, not discounting the legal remedies. I am sure that lawyers are best equipped to manage courts and mag-istrates.

On the contrary, managing the gap between legal and em-ployers’ remedies, to create support mechanisms, allowing confidential reporting to the public without disclosing the source, can as a result remove the whistle blower backlash.

Rather, establishing an independent entity to manage these services for individuals as well as employers who seek assis-tance could make a big difference. Engaging methods to mag-

nify the voices of individuals who otherwise may be silenced due to or because of negative press reper-cussions, embarrassment, financial woes, or resulting from media hype or even corporation intolerance for only addressing provable or legally defined issues will make everyone aware of the problem of unreported harassment.

In fact, the understanding by 98 percent of those (some former high-level corporation professionals) informally interviewed during Women’s Leadership Exchange business conferences held for women en-trepreneurs across the country, stated that it was a career ending move to raise harassment issues to Hu-man Resources.

nOT BOunD BY leGal cOnsTRainTs

By considering an alternative that is not a legal one, and not obligated by legal constraints in the same way that attorneys or companies are when deal-ing with harassment, new opportunities opens and perspectives for helping you to deal with unreported harassment.

It is critical that support is provided for both men and women empowering them, thus allowing men to be much freer to speak about issues they usually keep under wraps, which most women are not privy to.

By taking action today, both men and women can get help to resolve their dilemma with harassment at work. Important support services to consider are:

Utilizing a public forum for dialog about unreported ha-rassment that is not injurious to individuals or corporations.

Leveraging relationships with government and corpora-tions and organizations to partner and help to reduce harass-ment incidences.

Engaging public awareness via media management deliver-ing news releases, conducting public meetings, disseminating information via radio, publishing commentary, conducting re-search and reporting unreported harassment.

By searching for new alternatives available to you and any-one, especially executives and professionals that do not cur-rently have organizations fighting for their rights, everyone can all rest easy in the knowledge that something is being done about unreported harassment. Your actions can make a difference in the lives of many — starting with the boardroom and ending with the bedroom.

haraSSMenTcontinued from page 95

Editorial Review by:Patrice Dickey, PD CommunicationsOther Contributors to this article:

Aliguma Young, M.B.A.Sabrina T. Smith, B.S.

Supporting Organizations:Women’s Leadership Exchange

Circle of Sisters, GAeLife Magazine, Internet, GA

Gather the Women, GARefugee Family Services, GA

The Social Butterfly, Atlanta Journal ConstitutionUptown Scoop Magazine, Internet, GA

Officers of ProWomen.org:M. Sandi Aigoro, Chairman/President

Beverly Edwards, SecretaryRissy Ibraheem, Treasurer

Other Supporters:Councilwoman Carla Smith, Atlanta City Council

Marjorie Singley-Hall, Above Board Advisors, SERobert Chaet, DBM, SE

Carole Madan, Momma Nature, SELily Z. Winsaft, Aldebaran Associates Int’l


nother area of the industry. While my first foray was in the ‘Glitz’ or retail end of the business, my new direction was a much more mundane. My new endeavor was producing commodities for the manufacturing end of the industry. My new company made interlin-ers which are the materials that suits and shirts are built around.

“I started as the Manager of Canadian sales for the ladies division and later was promoted to manage the complete Canadian, United States and South and Central Americas. That began my global ex-posure.”

I presume that the company was Kufner Textiles of Germany?“It was, and one of the interesting parts of the story is that we

ended up running most of our world wide operations from Simp-sonville, South Carolina. There is a sign in Simpsonville that claims it to be the textile capitol of the world. Of course, that was before your Civil War, but, in our case, it turned out to be the truth.

“When I first came down to the States from Montreal, I assumed I would probably set up shop in our New York office. The company

was in a bit of a flux at the time and we needed to do some consol-idation. The mill in Simpsonville was established to

sell our products to the manufacturers



in the United States, but after NAFTRA, many manufacturers headed to Mexico. We had no use for sales offices in New York or anywhere else so I moved everybody to South Carolina.”

nORTh ameRican

FRee TRaDe aGReemenT

(naFTRa):

The North American Free Trade Agreement is a trilateral ar-rangement between Canada, Mexico and the United States designed for the purpose of eliminating most of the tar-iffs and restrictions on products traded among the three members. Initially spearheaded by corporate interests in the United States and Canada to support free trade, the bill was signed in 1992 by U.S President, George H. W. Bush, Canadian Prime Minister Brian Mulroney and Mexi-can President, Carlos Salinas. The agreement came under considerable opposition in all three countries, but many in the United States considered it ill-conceived.

It took over two years of pitched debate before President Clinton made it a legislative priority early in his presidency. The agreement was finally signed and went into effect in Janu-ary, 1994. Mexico has seen a modest increase in income lev-els and reduction in poverty, but most agree there has been no real reduction in poverty levels. The Mexican President hoped that it would eventually lead to an opening of the borders and free flow of people, but all thoughts of that happening vanished on September 11, 2001.

What happened as a result of NAFTRA?“Actually it started before any agreement was reached.

Probably during the late eighties when the talks first be-gan. Textile manufacturers were looking for a more eco-nomical way to produce their product and when the talks started, some thought Mexico was the place to set up shop. From the time talks began and the agreement was signed and the Congress finally ratified the agree-ment, it took almost six years. No one could hold out that long. Normally, we look eighteen months to two years down the road for planning. Unfor-tunately, there didn’t appear to be any progress, so manufacturers started looking elsewhere, and that was Asia.”

That couldn’t be good for Kufner with a plant in South Carolina, What did you do?

“Well, it wasn’t. For the next couple of years, I became a traveling journeyman. I was literally traveling around the world to make sales calls. Then, in first quarter of 2005, I was elevated to the position of Chief Executive Officer and asked to run the whole operation. My task was to bring about a more homog-enous structure to the company and to run the day to day business. As a

result, I moved to Munich, and since I didn’t speak any Ger-man either, I spent the next seven or eight months conduct-ing meetings in English.

“Again I became a world traveler, but this time it was more as an observer. I recognized that the evolution of the gar-ment industry was toward the lowest common denominator in the world and that was cheap labor. The business is very labor intensive, particularly in the finished garment end of the work. So, even though manufacturing of the commod-

ity products we made was not all that labor intensive, supply chain management was and is critical, so I

needed to see what the market was doing.”What did you discover?“Let’s say you own a manufacturing plant in In-

donesia or China, are you going to want to buy your supplies from a plant in Slovakia or Austria or Ger-

many or the United States? Probably not, particularly if those products can be made in Asia. My recommen-

dation to the board of directors was that the small to medium sized companies, say from two hundred million

dollars annual revenue like us, would be the ones in most peril. I explained that the quicker we could get ourselves acquainted, acclimated and over there, the better off we would be. So, in 2006, we decided to set up shop in Chi-na.”

I don’t want to sound critical, but wasn’t 2006 pretty late in the rush to Asia game?

“Actually, the ownership of the company, two brothers, was very forward thinking and they had traveled through Asia many years before and we had some very small of-fices in China, Taiwan, and Japan, but they were not of the level we needed to be. Even though we could say we had offices in Asia, these offices had to be completely re-vamped. These offices now had to become the soul, the blood, and the engine of our global thrust.

“We had five or six factories in Europe, one in Mexico and the one in Simpsonville, and my job was to immediate-ly start building and shifting assets to where our customers and clients were located. My frequent flyer miles blossomed into full foliage as I traveled to and through every country in Asia rebuilding our factories, but much more importantly, conveying the message of who Kufner was and where Kufner was going to every factory owner, designer and politician in-terested in the textile business.

“The contacts I made were at the highest levels at these manufacturers and organizations not only in Asia, but also in the finest fashion houses in Europe. This went on through the first quarter last year when I was literally burned out. I had taken the assignment for a three year stint and I had it clearly in my mind to expose myself to the global market and learn everything I possibly could. I wanted to become more knowledgeable because if you are limited to having just been in charge of the US market, it doesn’t say anything to the lead-ers of the fashion manufacturing world.”

After beating yourself up with three years of non-stop global travel, what did you learn?

“I learned that if you want to become a true global entre-

Salehicontinued from page 97


preneur you have to be able to sit face-to-face with your coun-terparts all over the world as well as your American and Eu-ropean customers and think in a global sense. The last three years afforded me that, so in May I resigned my title as Chief Executive Officer and assumed a position with Kufner on a consultancy basis.”

So where do you go from here?“Right now I’m one of those nine dreamers who have a few

ideas and a lot of ‘what if ’s.’ Some of the ideas are becoming quite interesting.”

Going back to your comments about your customers being in China and supply chain management dictating that you be there, how much of what they purchased was because of quality versus proximity?

“That is another interesting question. The product we made, and still make, is one of the best products in its nar-row niche. Kufner’s name is synonymous with the highest of quality. At the time, there were three of four companies world wide that made this same product. From the travels of the two brothers years back, the Asians saw the quality of the product and started making rudimentary versions of the product.

“When the industrial revolution in China occurred and manufacturers from Europe and America shifted operations to China, it opened the eyes of ‘China, Inc.’ by that I mean the government of China. They were interested in bringing the standard of living of its typical peasant to a minimum globally recognized standard. They looked at what industries were a best fit to accomplish that end, and the textile industry leaped out at them. It was labor intensive and they had the people plus their people were very good with needle work. The gov-ernment began a major subsidy program.”

Why does it seem that the Chinese were the winners in the industrial development race?

“They were. The difference between the Chinese and the Indian, world’s largest democracy, is that the decisions come from the top and that directly influences the way the economy shifts. There is no open debate or discussion. If China wants to open five thousand factories, they open them and hire the local peasants. What they did was enter into joint ventures with European and American companies by saying ‘you bring the technology and expertise and we will give you the facto-ries and employees.’ So they started segmenting the indus-tries along a narrow strip on the eastern edge of the country where it was easiest to reach for the outside world and that became the engine of China’s growth. It was so much so that the number one contributor to the Chinese economy was the fashion and textile industry.”

You mentioned that they had seen the type of product you made but could only produce rudimentary copies, why wouldn’t your product, made in Europe still be a bet-ter buy?

“Kufner is the largest manufacture of a certain product called canvas, in the world. Canvas is the necessary material for the manufacture of suits and shirts and other articles of clothing. As the largest manufacturer in the world, I think we had something like two hundred looms to make the canvas. In 2005, the Chinese government purchased directly or indi-

rectly, fifty thousand looms.“Our canvas sold a few years ago for two dollars per yard.

Today, as a result of China’s purchase, it sells for about twenty five cents. Let me relate a story to you that I told my board of directors not long ago. Imagine a large aquarium with four large sharks swimming near the surface. The sharks represent us and our three historical rivals. Every once In a while, we get into a tussle and maybe take a bite out of some ones tail or fin and it draws a little blood before things return to normal.

“Now, the water is a little murky but if you look real close into the bottom of the tank, you can see four hundred pira-nhas. They represent the four hundred Chinese companies that make our same product. Whenever a little of our blood sinks to the bottom, the piranha get a whiff and rise a little higher in the tank. These are not competitors we know and recognize, these are new competitors that, if we don’t learn to control them, will rise and eat us alive.”

OK, your story illustrates that there are lots of piranha and they are hungry, but it still doesn’t address the quality issue.

“Let me try to answer your question this way. You are wearing a very nice Tommy Hilfiger shirt. Although it is nice, it could be even better if you were willing to pay two hundred dollars for it. There is a very small seg-ment of consumer out there that is willing and able to pay two hundred dollars for a shirt, but there is a huge market, particularly in America, the world’s largest consumer market, that prefers value. value, in this case does not mean cheap, but meaning a price point where the consumer is willing to sacrifice quality and still be able to get a label they recognize, and they don’t care if that means it is made Bangla-desh instead of Italy.

“Kufner does make a product that is of fantastic quality, and the product goes into the two hundred dollar shirt and the five thousand dollar suit and those items are very exclu-sive. But if you are running a global business, you have to modify the way you look at what you do. Your business model has to change. That is what we tried to do. It was somewhat late, as you pointed out, by maybe fifteen years, but still achievable.

“Instead of focusing on a very narrow segment of the market, the very exclusive, like the oth-er three sharks, we opted to focus on how we could differentiate ourselves while still keeping our eyes on the piranhas.”

And how did you differentiate yourself?“Two major ideological shifts had to occur. The first was

how we looked at our business and the second was how we thought we could change our business. During another board of directors meeting, I explained how I felt we needed to look at the business by saying that we needed to recog-nize that the products for which we were so proud and we used to make exclusively are now com-modities. We didn’t need to divert from what we were making, just price that product closer to the market. The Piranha!



“The second part was much tougher because it did require a shift away from everything we had been doing in the past. This second part is where I have become actively involved since resigning my title. Simply stated, we are a provider of goods and services to the fashion and garment industry. Whether from the Georgio Armani’s to the mass marketers or the manufacturers to the factory owners, we provide either a product or a service or both. Therein lies the secret to our future success.”

I’m sorry, maybe I missed it, what is it you have that the four hundred piranha don’t?

“Global reach! We personally know the people of Georgio Armani. We know the people of Ann Taylor or Polo Ralph Lau-ren. We know them from a face-to-face able to discuss any situation basis. In addition, we know the owners of the little factories in China and India and Indonesia, and we know the leaders of all those governments as well. That pool of knowl-edge is what differentiates us from the rest.

“This whole idea actually gave birth to what I am involved with now. We are forming a consultancy company which can bring benefit to the whole process.”

Doesn’t that mean that you are effectively feeding your competition, the piranhas?

“Yes, but we hold the feed. We maintain control. Right now, there is a lot of, and I try not to be disrespectful, garbage at re-tail and many products are not selling. Why? Because the con-sumer, while looking for value has become more sophisticat-ed, and not willing to buy just anything with a cheap price.

“You wear that Hilfiger shirt because you want to distin-guish yourself from others. So, if we can bring to the table a certain element of quality that we design, bring in some tech-nicians who are really forward thinking and are the best of the best, and then help them select the factories and even train their employees, we can help manufacturers bring the highest quality product to the market at the best price and give the consumer the greatest value in fashion. That’s a win for everybody.

“Plus, it cements our relationship with the Tommy Hil-figer’s of the world as well as broadening our exposure to the Indian factory owner who is always looking for a way to get a little more out of his factory. That might be considered feed-ing the piranha, but in the final analysis, from the aspect of the garment industry, quality has to improve.”

What you are doing is building a turnkey operation for mass producing a value product. Is there a time when the Asian worker wants a bigger piece of the pie?

“The one thing that is critically important is that we rec-ognize that these are the emerging economies of the world. There are two billion Chinese, and already almost ten percent know what a Tommy Hilfiger is and can afford to buy one. That’s almost eighty percent of the United States population and they are already brand conscious.

“If you are going to be a player with global perspective, you

must be able to become an integral part of the triangulation of design, manufacturing and retail, or in this case with the emerging markets, licensing of product. That’s how the global transformation will take place. As our market place becomes dependent on the shirts coming out of the factories of Asia, the Asian workers will want to participate by purchasing rec-ognized brands.”

Bruce, there was a time when Kufner had a plant in Mexico, and several other textile companies had plants in Mexico, why didn’t all this occur in Mexico or Central America, did Mexico miss the boat?

“Oh yeah! Mexico and Central America both missed the boat, but it wasn’t necessarily there fault. We already talked about NAFTRA and the time it took to get ratified, but Mexico didn’t have a ‘China, Inc.’ It didn’t have that central power that could guarantee facilities and employees with no threat of revolution or violence.

“Mexico’s biggest problem is that it is too close to the United States. In China, a worker in one province has only his fellow workers or those of a nearby province to compare himself. Mexico compares itself to Americans. The largest in-dustry in Mexico today is spawned from Mexicans working in America who send money back to their families in Mexico. That money is spent on products to try to bring their standard closer to those of Americans.”

Mexico lost out because it wasn’t a totalitarian dicta-torship?

“Pretty much, that is the case. China Inc operates like a gi-ant corporation and it controls its growth. The first stage in the build out of China was along the extreme eastern edge. Now, it is moving inland. Fifteen years ago, if you wanted a factory for processing fabrics, you got along the coast. Today, that factory wouldn’t be looked at favorably unless it was go-ing to be built in, say Mongolia. Even the Chinese factory own-ers are beginning to sub-contract to countries like viet Nam, Cambodia and Laos. I don’t think there is any question that Mexico missed the boat, but even if everything had been right for them, they never could have done what China did.”

Where are you actually concentrating your efforts now?

“I’m concentrating in three areas. The first is the Kufner consultancy business, the second is an effort to re-launch a very high end product line and the third area is with a very interesting company called Rice.

“We’ve already talked about Kufner, so let me explain about Rice. They are one of my clients and they have an efficient company that services some of the best retailers in Italy and London. They are focused on an A to Z type of modular ser-vice where they can design for their customer, do fabric selec-tion and provide quality control at your factory. They can also provide supply chain management by packing, shipping and delivering the finished product to your customers. They can even find financing. Rice can provide a complete A to Z sys-tem or offer any part of the program you might need.

“They have been extremely successful in Europe because of their relationship with retailers, so the idea is to package the product and take it to America. The ideas and concepts can be appreciated by the mass retailers that are looking for a fresh look. One thing that is missing in the United States fashion market is imagination and color. Rice can bring those plans to the market.

“Finally, I would like to bring a high end fashion line to the market. It is actually an idea that first surfaced in the late sev-enties and early eighties, and I’m looking to revive the label. Too few people really know how to put an ensemble together, and as a result, they either look thrown together or just plain ugly. This concept dresses the very elite to match their suc-cess.

“You can go out and buy fifty white shirts today, or for the same price you can buy five or six custom made beautiful white shirts and those shirts will accentuate you and every thing else you are wearing. Combine the shirt with a suit made in Italy from a man who might not make five hundred suits in a year, and you have a suit that fits like a second skin. Match that with cuff links and other accessories and you have been transformed into classy. The ultimate essence of luxury is the art of expertly tailored clothes properly coordinated.”

How would you sum up the future of the fashion in-dustry?

“The industry must constantly evolve. A few months ago, I was visiting at the office of a friend who was head of a manu-facturing firm and he showed me two samples of fabric. One was a high end cashmere milled in Italy and the second was milled in China. The Italian was two and a half times more expensive than the one from China and my friend said he was forced to buy the Chinese product. Six months later, on an-other visit my friend showed me something really significant. The Italian company had come out with an improvement to its product that took its quality to another level, while the Chinese product remained stagnant. That is the genius of staying in the same business and finding a better way. That’s the mentality you have to have when dealing with emerging markets. What they want is your technology today while they try to catch up. If you give it to them and wait, they will catch up. So, while you’re giving them one thing, you had better be developing the next generation of product that will keep you ahead. Then, you will always have the lead.”

Salehicontinued from page 99




roBB campBell:ecHoes oF tHe greatest generatIon

by Sterling Brown

If children of the 40’s through 50’s represent the Baby Boom, then Robb Campbell, at age 40, can easily be called The Aftershock. When Porter Campbell was raising his chil-dren in Georgia, it was his second lease on family life. After a previous marriage, he was older, wiser, and a more mature man determined to make the best of fatherhood raising Robb Campbell and his siblings. Porter impressed upon his sons, the need to find and make their own way in life.

Though financially able to give the children whatever they would ask, Porter’s kids earned instead. He put the young Robb to work bussing tables and washing dishes in their fam-ily owned restaurant. Robb was only twelve at the time. By the time Robb Campbell reached the age of sixteen, he got his work permit and split his high school days between studies and running the kitchen.

That same year, the restaurant burned to the ground. The elder Campbell left it to his sons to determine the fate of the family business. Robb and his brothers decided that the fam-ily should rebuild. Never one to miss an opportunity to teach his sons, Porter Campbell put Robb to work on the rebuilding project.

The young Campbell shoveled debris from the old struc-ture including the maggots that began to feed on the fester-ing freezer contents. Robb then worked alongside each of the builders experiencing the craftsmanship that went into every level of construction.

He worked the new family restaurant until his senior year at Kennesaw State College when an offer was made and ac-cepted from a buyer. After an adolescence of hard work, Robb Campbell decided to enjoy his last year of study.

True to character, Robb jumped right back into the mix after college. Landing a job at Budget Rent A Car in Atlanta, Campbell immediately began to notice inefficiencies in each position that he was placed. His keen observations did not go unnoticed. Robb was transferred to various departments to assess and recommend changes that would prove advanta-geous to both customer service and to the bottom line.

When he was placed in Budget’s distribution department, Robb noticed that the company’s sizeable investment in in-ventory management software was not being fully utilized. The software was capable of tracking and updating vehicle inventory at each location but was being used almost solely to write contracts. Customer service employees were spending costly man-hours polling each Budget Rent A Car location by phone on an hourly basis to update inventory that was under-going constant change.

Campbell brought these observations to a company vice president. Shortly thereafter, he became a one man I.T. sup-port department. Under a company mandate, he learned the software himself, wrote and conducted trainings, and oversaw each location’s compliance.

Robb Campbell climbed to the top of his department at

Budget. The next available position was a vice presidency which was held by his immediate supervisor. This person had stock options and was not going anywhere soon. Campbell quit his job. He wanted to see financial reward commensurate to the credit and accolades that his work had given him that far. Bonuses were not enough.

Robb’s father had dabbled in real estate investment before passing away and leaving the portfolio in a trust that Robb managed. Campbell made a decision to get his real estate li-cense.

There was a chorus of disapproval from everyone in Robb Campbell’s life; including close family and friends. Everyone thought it madness that Robb would leave the financial secu-rity and benefits of management to go into sales. Robb Camp-bell had a decent salary, a company car with a gas allowance, medical and other benefits, and what most would consider a generous annual bonus. In contrast, sales just seemed to be a dirty and insecure world to everyone around him.

Robb gave himself six months to make it or break it in real estate. That was how much income he had saved from his job at Budget. There were house and car payments, children, and a wife committed to staying at home.

The consummate student, Robb began to do his homework in real estate. What he discovered by talking to various profes-



sionals was that once the classes and tests were completed, a person was on his or her own. Robb Campbell had made his professional career learning from the experiences of others. He duplicated this in his approach to real estate.

After acquiring his real estate license, Campbell approached a seasoned realtor who had opened a new Remax office. This office was selling onsite at a subdivision that was still under construction. That realtor pledged to show him the ropes. Within 30 days Robb Campbell sold three homes in the sub-division; two of which no one had been able to get any cus-tomer interested in for six months.

True to his word, in six months Robb doubled his annual salary from his time at Budget Rent A Car. In 1996, he was offered an opportunity to buy into the Remax franchise and took on a second mortgage to finance the deal. Within a year, his earnings exceeded one hundred thousand dollars. Within three years Robb Campbell’s annual commissions would sur-pass three hundred thousand dollars with no looking back. Most of all, he loved the thrill and freshness of real estate.

In three years Robb and his partners grew their small Atlan-ta based Remax franchise from fifteen to one hundred-twenty agents. They decided an expansion was in order but the Atlan-ta market was saturated. After contacting the national office, Robb and his partners took on Memphis Tennessee (1998) followed by Nashville (1999) where he is now based.

For a year Campbell commuted weekly, working in both the Tennessee and Atlanta markets. The ingenuity and sales tenacity he brought to Tennessee raised more than a few eye-brows from established realtors who did not know what to make of this young upstart.

One transition that was an unanticipated challenge to Robb was moving back to management and training a team. This would mean personally giving up a very lucrative sales prac-tice. Management was Campbell’s degree from Kennesaw. He had trained people for Budget Rent A Car. However, this time the success or failure of his methods would rely on his ability to motivate a sales team. This time it wasn’t about an annual bonus. If he failed, it would justify the naysayers and cost him the rewards of his previous success.

In the midst of this transition came divorces for both Camp-bell and his business partner. As part of the settlements, busi-ness partnerships dissolved and Robb held onto the Nashville franchise alone. For all the questions that observers would have regarding Robb Campbell’s ability and even he of him-self, the numbers would soon speak quite loudly and settle the argument about his decision once and for all.

As the Boy Wonder of Nashville, Robb was a broker in his mid thirties alongside industry peers averaging over twenty years or more his senior. He credits the collegial business re-lationship he established with his father Porter since early life for his ability to earn respect and credibility while under the scrutiny and skepticism of his youth.

Robb had been taught by his father to learn first by listen-ing and then observing. Regardless of his measurable success, Robb knew that he was in unfamiliar waters and even if one was strong enough to swim against the tide, there is still the matter of the school of fish swimming at you.

After recognizing the pedigree of his conscientious up-bringing, the old guard embraced the guppy who would be tuna. Robb Campbell’s energy became inspiring and motivat-ing to everyone around him.

True to form, Campbell saw something lacking in the over-all Nashville market and set about creating another innova-tion. Noticing the tedious work of trying to book and manage real estate appointments, Robb installed a department dedi-cated solely to appointment tracking that would serve the need of his offices and that of his competition who welcomed the service on behalf of their realtors.

Campbell attributes his ability to motivate people to being positive and selling a vision instead of telling others what they should do. Recently, an underperforming realtor down in the dumps came into his office seeking his advice. Robb pulled out material he had already put together for just such an oc-casion. Campbell designs and produces his own motivational material.

He walked the distraught realtor through a series of self as-sessments. Together they created what Campbell calls a vision or Identity Statement for the realtor. The process entailed es-tablishing action steps to goals and changes that have to be made in order to actualize the vision.

To some this methodology may sound familiar. Robb Camp-bell is an avid follower of Tony Robbins Seminars. He and his second wife Kim went on a 14 event international tour of Tony Robbins Seminars from which Campbell draws the motivation for a lot of his material which he now also presents at some of the seminars. His library runs the gambit of sales and mo-tivational seminars that he offers his realtors and staff. The material is geared not only for real estate, but overall personal growth. It must be working. Sales have soared.

The Remax franchise network has over 6,500 franchise of-fices and more than 120,000 sales associates. Now with over 340 agents working out of 11offices in Middle Tennessee, Campbell’s Remax Elite posted over 1 billion dollars in clos-ings in 2006. That same year, Robb Campbell was Broker of The Year for the entire Remax System. Remax Elite of Middle Tennessee went on to set record sales for 2007 in first quarter closing 220 million dollars, up 25% from the same period in 2006.

Keeping himself motivated is not a real issue, says Camp-bell. When adversity presents itself, he is a self-described spin doctor looking for ways to turn a negative into a positive. Robb Campbell is doing what he loves to do. He doesn’t count the hours and neither does his wife who is cut out of the same motivational mold. Robb attributes much of his motivation to having the right supportive partner. His previous wife was no fan of sales or salespeople.

Robb Campbell is exhausting to watch. His desk has been strategically placed in the forward center of his office to make

room for the well worn daily track meet around the furniture as he talks on his wireless headset. Nobody knows how many miles he puts in a day. Not even Campbell.

vacations for Robb and Kim Campbell are normally cen-tered around growth seminars. The couple travels the world for the right information arriving a few days early and staying late to take in the sights.

Campbell says other than being an avid movie buff, he handles boredom by starting a new corporate venture. His current holdings include the Remax Elite Nashville franchise, Elite Home Loans, Elite Signs and Graphics, Elite Insurance, Elite Title Company, Elite Real Estate Services, Elite Relocation and Marketing Departments in addition to the appointment service that was recently established.

By today’s standards Robb Campbell would have been di-agnosed with Attention Deficit Disorder. Robb was a ‘C’ stu-dent throughout school. During his junior year in college, the courses finally began to challenge him. Campbell says he began to get A’s when the approach to education by his in-structors changed. He felt challenged to think and not merely memorize or regurgitate. He asserts that the disorder really represents a need to fundamentally change the approach to educating what Campbell views as new type of child under archaic systems of learning. He does not see his success as unique despite his average grades. Campbell is certain there are scores just like him in every school today waiting for the opportunity to be challenged instead of being homogenized.

When asked if he were to ever be afforded an opportuni-ty to do anything differently in life, Campbell stated that he would have taken more risk earlier rather than later. His fa-ther whom he considered a great friend and advisor tried to get the young Robb into investment opportunities early but left it for his son to decide. Robb amusingly laments the fish he let get away despite his father’s advice.

Robb does not consider himself as successful. To Campbell a successful person is always moving the bar to the next chal-lenge. His advice is to always celebrate the small successes along the way but to use them as a launching pad to the next level.

Campbell warns against sedentary successes. He uses the example of a real estate agent who reaches a sales commis-sion level and then seeks to maintain it rather than grow it. The attitude being that the individual believes that they have achieved a level of financial comfort for the support of their lifestyle despite their potential to exceed their achievement. Campbell feels that this type of person also fails to grab the opportunity to earn and save more income while they can.

As such, retirement is a four letter word to Robb Campbell. He recalls his father jumping right back into new businesses after two years of retirement. “If you’re not growing, you’re dying,” is an oft repeated mantra by Campbell. At age 16, his son Michael is learning the Campbell way. As Robb learned from his father, the young man has earned his own way learn-ing in each of Robb Campbell’s corporate ventures.

Three generations removed, it appears that the legacy of America’s Greatest Generation, is in very good hands.

CaMpbellcontinued from page 103



There’s an old flim-flam where somebody who wanted to settle an argument or bet would break out a coin and suggest settling the dispute by calling a toss in mid air. Of course the one successful in calling the result would win.

As the story goes, someone came up with the grand idea of making a two headed coin. It was a delicious novelty item designed to be a prank. But with all such things, the flim-flam artist turned it into an art form by bringing the coin into real world applications and always being the first to make the call.

These guys were so good that they would present the coin to settle the dispute in the palm of their hand and noncha-lantly call the proper face while even allowing the coin to hit the ground for all to see. After seeing the result, the perpetra-tor could pick up the coin and put it in his pocket, claiming victory with no one being the wiser.

After all, up until that point in time, all people knew about coins was to not take any wooden nickels. It was inconceiv-able during the war time industrial revolution of the twentieth

century that anyone would use a factory to concoct such a meaningless fabrication out of metal. Thus the appearance of the appropriate presidential bust and the sound on the floor was sufficient to validate the transaction by way of an authen-tic coin toss.

Nobody really knows the turning point under which it hap-pened but seemingly in one day all of society got wise to the con and the jig was up. People insisted upon actually seeing the coin before the toss. One would have thought surely no one would ever be able to perpetrate such a fraud in such fashion ever again.

However, in the truest nature of ingenuity, the flim-flam-mers used confidence in the coin to then divert attention from the call in the air. Some ingenious fellow came up with the now infamous call “Heads I win. Tails you lose”. If said in the most confident and polite of ways it was actually agreed to by the greater percentage of participants who would question the call only to say “I said heads” and be told “Yes you did. Heads I win”. The unsuspecting idiot would confusingly walk

away feeling something not quite right has happened but for the life of him, could not figure it out. By the time he did or if ever, the winner had moved on.

This is what National Radio Talk Show Host Neal Boortz and proponents of the Fair Tax think of America’s current tax system suggesting that the IRS go the way of the wooden nick-el and its subsequent disingenuous two headed step child.

Boortz’s best selling book coauthored by Congressman John Linder (R) of Georgia takes dead aim at the fatted calf of congress suggesting that it be weaned off the mother’s milk of American taxation through the abolition of the Internal Revenue Service and replaced by a national sales tax. Under the Fair Tax, all income tax would be abolished.

Boortz is not the first to question America’s tax system. Most followers of tax reform are aware of the protests of the now infamous Irwin Schiff. However, he and Linder appear to be the first to develop a cogent populist message that has gained public traction. The difference between Schiff and Boortz is that the Fair Tax suggests an intelligible alternate course apart


from anarchy. Proponents spent a reported 22 million dollars in market and economic research by a cacophony of note-worthy economists, think tanks, and legislative experts that poured over issues constitutional and sociological to address the practical applications of such a radical departure from the IRS — a system in which there is little disagreement that it is convoluted and often politically motivated in its mandates.

The running joke among late night comedians to never criticize the IRS on the air, was a quiet truth to many in the public arena who considered the tenacious nature of the IRS to prosecute protestors as motivated self interest over and above the “crime” and a form of intimidation.

These current high level public volleys against the IRS are a far cry from the days of renown tax protestor Irwin Schiff whose much publicized indictments and judgments against him in favor of the IRS led many to believe him to be the sole lunatic insane enough to speak and act in a fashion that many believed was suicidal.

The days of Irwin Schiff as the lone bungling Don Quixote of Tax Reform are over. There is at least some vindication for the likes of Schiff as the Fair Tax has hit Washington in the form of House Bill HR25 with an unprecedented 68 cospon-sors.

Presidential candidate Ron Paul goes as far as to ques-tion the constitutional legitimacy of the IRS stating that he considers non-compliance by those of such conviction to be no crime, but an act of civil disobedience. Former Arkansas Governor Mike Huckabee has endorsed the Fair Tax as a solid plank in his presidential platform.

Leading the public charge has been Boortz, a self described libertarian who also takes similar issue with the Department of Education and public schools. Not since Pretty Boy Floyd has a Georgia boy been as renown for something so notori-ous. And forget your run of the mill get away car, these guys got a bus, and it goes wherever a camera is willing to follow.

According to the Fair Tax Manifesto at FairTax.org, “The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spend-ing up to the poverty level, dollar-for-dollar federal revenue neutrality, and, through companion legislation, the repeal of the 16th Amendment.”

Under the plan: • Workerswouldkeeptheirentirepaycheck • Retireeswouldkeeptheirentirepension • Americanswouldreceiverefunds inadvanceofthetax

on purchases of basic necessitiesOther claims of the Fair Tax: • AllowsAmericanproductstocompetefairly • Bringstransparencyandaccountabilitytotaxpolicy • EnsuresSocialSecurityandMedicarefunding • Closesallloopholesandbringsfairnesstotaxation

• AbolishestheIRS

The Fair Tax propaganda machine is formidable. But so

are its foes, many of whom FairTax.org’s National Director of

Communications Ken Hoagland says are simply misinformed

or have not taken the time to read.

Others, states Hoagland, are “those members of congress

who are loathe to give up the power to manipulate the tax

code.” Hoagland asserts that power to have been systemically

used to punish enemies, reward friends, and bestow favors to

tax lobbyists. He further bemoans its use for “social engineer-

ing on the citizens of the country through the tax code” by

“rewarding certain behavior and punishing certain behavior.”

There are few that would disagree with Hoagland on the

abuses of the current tax system. Ironically however, these are

the same methods that are used in American foreign policy. It

is called economic sanctions — a tool with which some pro-

claim has averted numerous armed conflicts and has forced

many nations to the bargaining table.

It is also arguable the success of many necessary social ad-

vances would have been achieved without the leverage of the

tax code against states from which federal funds would have

been withheld had they not complied with federal civil rights

mandates. What is also confusing is that some of the same

proponents of the Fair Tax suggest employing the same tactics

Hoagland decries in order to force Sanctuary Cities to comply

with Federal immigration laws.

When asked about issues that challenge the conscience

and charity of a nation, Hoagland boasts economic statistics

he states prove the giving nature of the American public. “His-

torically, the more money Americans have in their pockets,

the more they have always given. We are a generous people”,

says Hoagland.

But to whom? Hoagland’s statistics do not reflect a break-

down that addresses a disparity of giving proportionate to

needs. Congress has also had to face such an issue in recent

campaign finance reform compromises. On a practical level,

the bill would have limited outside contributions in district

campaigns while also maintaining personal donation limits by

constituents. Minority members of congress from poor dis-

tricts who, themselves were not wealthy enough to contribute

millions to their own elections opposed the reform despite

their agreement with the greater principle. They stated that

their districts were simply too poor to support their re-elec-

tion without outside money and that the reform would make

it possible for elections to be bought by anyone with deep

pockets.

The difficulties with the Fair Tax are problems that can be

clearly seen by its simple design. Conversely the beauties of

the Fair Tax are the problems that can be clearly seen by its

simple design. Boortz and company have resurrected the

two-headed nickel. However, this time, who wins is anybody’s

call.





The Internal Revenue Code 1031 provides that “no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business, or for investment pur-poses, if such property is exchanged solely for property of like-kind, which is to be held for productive use in a trade or business or for investment purposes.”

PROPeRTies ThaT can Be eXchanGeD

The types of properties that qualify for 1031 exchange in addition to real estate include the following: art and collect-ibles such as a rare automobile; properties used in a trade or business which include an aircraft, heavy machinery, con-struction equipment, office equipment and lease car fleets. In addition, successful exchanges have also been completed

with patent rights, mineral rights, broadcast licenses, sports contracts, short-term leases and instruments used by a musi-cian.

PROPeRTies ThaT cannOT Be eXchanGeD

In examining whether or not you should take advantage of the benefits of a 1031 exchange, it is important to also be aware of the types of properties do not qualify. Proper-ties that do not qualify include: inventory; stocks, bonds, or notes; other securities of indebtedness; partnership interests; oil royalties; trust certificates or beneficial property inter-ests; futures contracts, goodwill; flip properties; personal use property; land under development; foreign real and personal property.

ReasOns FOR usinG 1031 eXchanGe

There are many reasons to use a 1031 exchange.You may need to sell property due to relocation and the

fact that you would prefer to have your investment near your new location. Your investment objective may change from appreciation to income and you may find it beneficial to ex-change your property that was being held for appreciation for property that is income-producing. You may also want to sell a large group of properties and transfer the equity into one large piece of property or diversify and balance investment risk by selling one large piece of property and complete an exchange into various property types in different locations. If

WHat Is not commonly knoWn aBout 1031 excHangesWhat most people think of when they think about 1031 exchanges

is using this tax benefit to defer capital gains taxes on real estate held for investment.

What is not widely known are the additional types of properties that also qualify for 1031 exchange.

by Marcelle Long




you find yourself in a situation where you want to reduce or eliminate management hassles, you may want to exchange an apartment building with numerous tenants for a building with a triple-net lease to a major national tenant.

And, of course, an investor may defer taxes indefinitely as there is no limit to the number of exchanges that can be done.

TYPes OF eXchanGes

The exchange most commonly used is the delayed ex-change, where the taxpayer first sells the relinquished prop-erty and then acquires the replacement property. There are, however, several additional types of exchanges.

For a number of reasons, an investor may elect to partici-pate in a reverse exchange, where the replacement property is acquired before the existing property is sold. One reason for this approach could be a desire to find the “perfect” re-placement property first in order to eliminate the pressures associated with meeting the 45-day identification time line.

An investor might consider a con-struction exchange where any of the following situations occur: the investor signs a contract with a builder to buy a finished property that must close within the 180-day acquisition period; the taxpayer must close on the relin-quished lot before improvements can be made; the taxpayer must close on the replacement property before major improvements can be made; or the tax-payer wants to build improvements on land they already own.

In other situations, it may be ap-propriate to participate in a multi-asset exchange. In this type of exchange, the transaction may include not only the sale of the land and building, but also equipment, furniture, fixtures, and goodwill. This type of exchange requires a great deal more of pre-plan-ning in order to maximize benefits.

In the case of a personal property ex-change, the definition of “like-kind” is a bit more stringent than in the case of real property. The relinquished prop-erty as well as the replacement prop-erty must be in the same “general as-set class” or “product class”. Examples of the same general asset class are: airplanes, helicopters; automobiles; of-fice furniture, fixtures and equipment. In determining whether relinquished and replacement properties are within

the same product class, the IRS refers to SIC codes. This dif-fers from real property exchanges where the following can occur: vacant land can be exchanged for an office building; an apartment can be exchanged for a retail property; or an office building can be exchanged for industrial property.

RePlacemenT OPTiOns

FOR 1031 Real esTaTe eXchanGes

An important part of a 1031 exchange is finding a replace-ment property that meets your needs within the 45-day iden-tification period. This can often be challenging. And, for many investors, real estate ownership without the day-to-day man-agement responsibilities, coupled with a desire to diversify and own multiple properties, as well as the ability to own in-stitutional grade property has become increasingly important. For all of these reasons, the tenancy-in-common (TIC) form of ownership has become popular.

With a TIC, two or more individuals have an undivided, fractional interest in the asset; ownership shares are not re-quired to be equal; and ownership interests can be passed on to heirs. Other advantages include: pre-negotiated acqui-sition contracts, attractive financing, pre-arranged closing details; and there is little or no vacancy risk on master lease

transactions. And, of course, TIC ownership qualifies for 1031 exchange.

An investor may also use a DST (Delaware Statutory Trust) form of ownership to complete the 1031 exchange process. This form of ownership is similar to the TIC except in the following ways: the DST owns and is on the deed to the prop-erty; the DST is the sole borrower on the loan; the trustee makes all decisions – no voting rights; and there are no clos-ing costs, and therefore, less paperwork.

Both TICs and DSTs are suitable for accredited investors only.

wORkinG wiTh a QualiFieD inTeRmeDiaRY

A qualified intermediary is a third party that facilitates the completion of the 1031 exchange process. In general, the taxpayer enters into a written agreement with the exchanger which provides for the transfer of the relinquished property to the intermediary, holding of proceeds, transfer of the re-placement property from the intermediary to the taxpayer and the direct deeding process.

This relationship with a disinterested third party is neces-sary as it is important that the taxpayer does not have con-structive receipt of the funds in order to maintain the tax ben-efit from the exchange.

It is important to recognize that your accountant or attor-ney cannot hold these funds as it will disqualify the exchange for the tax benefit.

in summaRY

1031 exchange provides unlimited tax deferral.In addition to real estate, 1031 exchanges can be used for

exchanging numerous other types of properties.There are many different types of exchanges in addition to

the most widely-used delayed exchange.You can exchange from one large property into numerous

smaller properties which can be wise when leaving properties to heirs; or you may exchange from smaller properties into one or two larger pieces of real estate.

Remember that you have 45 days to identify the replace-ment property(ies) and you may use at least one of the follow-ing guidelines for your replacement properties: (a) 3-proper-ty rule which states that the taxpayer may identify up to three potential replacement properties, without regard to their value; or (b) 200% rule which states that any number of prop-erties may be identified, but their total value cannot exceed twice the value of the relinquished property; or (c) 95% rule which states that the taxpayer may identify as many properties as he/she wants, but, before the end of the exchange period, the taxpayer must acquire replacement properties with an ag-gregate fair market value equal to at least 95% of the aggregate fair market value of all the identified properties.

Remember also that you must close on the replacement property(ies) within 180 days from the sale of the relin-quished property(ies) and that the proceeds from the sale must be held by a disinterested third party such as a qualified intermediary and not your attorney or accountant.

And for accredited investors, TICs and DSTs provide viable alternatives and advantages.

Marcelle Long, President and CEO of Portfolio Advisors Alliance, Inc. in Atlanta, Georgia. (404) 814-1013; www.portfolioalliance.com

1031continued from page 118



Was the show successful?“I had a great deal of activity around my work, in fact I might

have had the most activity. People commented continually about the uniqueness of both the subject and the medium, so from that standpoint, it was very successful. However, I didn’t sell a single piece. People would comment about my work and

buy another’s because it was a name they recognized. That was my first lesson on the importance of marketing. Art is just a hobby until people start buying it.”

Was that the event that launched your new career?“Yes, unless you have huge financial backing, it takes that

one opportunity to happen when you are most ready for it to happen to get your career moving forward. Some people call it luck, but it’s an accumulation of things including timing and hard work. That was the beginning, the tipping point, but I was still way to busy with wood carving. The time was rapidly

approaching, and I could see it, that I was going to have to choose between one career or the other.”

OK, so here you are, gainfully employed for fifteen years in a job you love, working for yourself with all the busi-ness you can handle and no downturns in the foresee-able future, many people would think you already had it made! Instead, you decide to walk away from everything you spent fifteen years building and change careers! How tough was that?

“It was very tough telling people who were my customers that I would no longer be their man. In most cases it meant actually burning bridges that had taken me years to build.”

How many craftsman were around who did the type of work you did?

“For many of my customers, I was the only source they had. There are wood carvers out there, mostly in Europe, but they worked only in one specific style. I did the whole thing. I de-signed the furniture, carved it finished it and even delivered it to my customers. I don’t know of anyone else who did the complete job.”

Interestingly, it wasn’t money that caused Chad to halt a successful career, and pursue a dream. He saw an opportunity to express himself in wood instead of just carving wood, and he took the chance. So often we read of people who, desper-ate for a variety of reasons like loosing their jobs, launch new businesses. Many end in disaster, while others become profit-able, but you rarely read about people who give up successful jobs to start new ones. Chad didn’t immediately replace the income he made as a wood carver, but he had enough faith in his skill and creativity to know that there would be a satisfac-tory outcome, no matter how many bridges he had to burn.

Once you decided to move on to you new career, were there any skills or techniques you could take with you that were compatible, besides wood?

“What influenced my art the most was having studied the classical concepts because the more you study art, the more you realize how the same factors cross over into everything.”

What do you mean?“I started studying painting, mostly because my daughter

was interested in it, and the more I was exposed to paint-ing, the more I could see my three dimensional work. What I didn’t expect was that the theories I learned in painting en-hanced my sculpture because they were the same concepts. It is the psychological process of trying to get a message across. You want people to look at a certain point in the piece, so how do you direct them? How do you make that point the high contrast point? By using light and flow and creating invis-ible edges. All those things that work in a painting cross over to three dimensional work as well.

“It’s the same for any art form. For a designer, it’s all about how you focus attention to the function of a particular room. Likewise for an architect, he wants to direct your attention to the entrance or the shape and height of the building. All the elements come together to focus on what the artists believe are important. In other words, the message”

What is it about your work that makes it stand out

aWalTcontinued


Narina, 2004Material: Sycamore and Ash

44" x 34" x 34"


against other artists competing for the same dollar?“It helps that the product is made of wood and that nobody

else does what I do with the same material. But the main as-pect is the expression in the piece itself. I think I have done very well at capturing natural and unique poses. I do multiple drawings and poses with models until I find a position that reflects something personal to them. I look for something so natural to them that their mothers would recognize them and say something like ‘that’s her alright’.

“The other aspect is my continuous study of classic design. I could copy almost anything, but when it came to design, only one in four was any good. Through my classic studies and conversations with other artists, I realized that there was one thing that was always constant and incorporating it into my work created uniqueness.”

What was the one thing?“Gravity! Think about a tree as a perfect example. It con-

tinually strives to reach upward, and often succeeds to sub-

stantial heights, but it is constantly fighting the power of grav-ity. Its branches grow up at first then start to sag. The same is true of the leaves; they all rise upward and are then pulled back down. That’s true of everything I do, whether sculpting, designing, wood carving or painting, it all focuses on the force of gravity.”

How does that relate to a model you are sculpting?“If you look at a model as she stands or sits in a pose, she

looks totally relaxed, but she is not. If she were completely relaxed, she would fall flat on the floor. Every muscle in her body is working to keep her upright. She is probably not even conscious of the effort, but she is in a battle against gravity. Even though there is no movement, there is energy and that’s what I try to capture.”

What inspired you to move from the partial torso to the spiral torso?

“I was inspired by black and white photography where you could see only the one highlighted form and the rest was in the shadows. You don’t look at the photograph and say ‘that women has no arms or legs,’ instead, your brain accepts that the rest of her is there, just not visible.

“When you look at artifacts, you recognize that age and exposure to the elements caused the piece to get broken. Once it had arms or legs or a head, but now they are gone. You can even wonder what it must have looked like when it was first created, but you know that it is broken. I never want my work to appear bro-ken. I want it to appear as if it were emerging from a mist or passing through a silk curtain, but not broken.”

When you work with a piece of wood with a flaw, do you know how it will fit into the completed piece?

“The voids are the most challenging thing to work in because even though I know they are there, and I know approximately where they are going to fall, it’s still just a best guess as to how it will relate to the finished piece.

“I’ve gotten very good at reading the pat-terns in the wood and where the markings are, but what they actually do is up to the tree. That’s because I don’t know how spectacular or subtle they will be. I try to place them so they will enhance the work and not be a bull’s eye that draws your attention and says ‘oh, look, the statue has a hole in it.’”

How do you prepare the wood?“When I first started working it was all kiln

dried and in perfect condition. Then I started experimenting with varying conditions. I tried fresh cut ‘wet’ logs and that meant dealing with different pressure in the logs that would cause them to crack. Cracking can be fixed unless it turns out to be a structural issue which can’t be fixed. In that case, you throw it away and start over. That was way too much risk for me to deal

with, so the next step was to age the logs just enough to pro-duce the types of markings I wanted in the finished piece.”

How long do you let the logs age?“Usually they age for about a year. These markings are the

first step of the log rotting, and that’s when it’s perfect.”Do you catalog the logs as to where they came from and

how long they have been aging?“I probably should do a much better job of that because

some of these logs have stories almost as interesting as the pieces that come from them. For example, the city was clear-ing four acres next to my son’s school. One day after drop-ping my son at school, I saw that the workers were on some kind of a break, so I walked over and introduced myself. This

aWalTcontinued

Isis III, 2006Material: Ambrosia MapleModel: Teresa Noreen


was a fairly large clearing process complete with the type of equipment that could remove a whole tree, de-branch it and stack the logs.

“They were waiting for the logging truck to arrive and it was running late, so I got to talk to them about what I do. I had spotted a maple tree on the bottom of the stack and I asked if they could leave it for me when finished. They did better than that, one guy got a large chain from his truck, wrapped it around the trunk and attached it to the crane. The crane operator slid it out from the bottom of the pile like it was a tooth pick and set it over near the parking lot for me. As they finished moving my log, they got a phone call explain-ing that the logging truck had broken down and would not

be coming, and they all scurried off to do other things. That was the only possible time I had to recover that log before it would have been cut up for fire wood. In a sense, I rescued the log for posterity.”

How long does it take to complete a sculpture?“When people ask that question, they are really asking how

long it takes to do the carving. Well, that’s not exactly a fair question because a lot more goes into a sculpture than just the carving. For instance, I need to study and plan with the model, I need to find the right piece of wood and make sure it has aged properly. The actual time could easily be a year or more.”

Do you use any exotic woods such as teak or mahogany?

“No, all my wood comes from local Georgia forests. I use mostly hard woods like oak and maple, but I won’t use red oak and I won’t use pine. The tar in pine dulls the tools very quickly, and, I suppose because pine is so common, it just doesn’t have the same allure of other woods.”

You have a few paintings with your name on them in the shop, are they something new, a passing fancy or a way to relieve the stress of sculpting?

“Painting is something that I want to be able to do. I’m far too busy doing these sculptures to give it much thought, but I do think about it. So far I have not done any marketing of my paintings because I feel that they are still works in progress. My income is derived from my sculptures, and that is where


Bona Dea, 2007Material: Silver Maple28" x 16" x 8"


I devote my time and energy, but I know that I won’t be able to do these forever.

“They are just too physically demanding to produce to con-tinue into my advanced years. First, the logs are heavy and somewhat unwieldy. Secondly, that first cut on these logs is done with a seven and a half horsepower chain saw that feels more like you’re swinging a motorcycle with a blade. At this point, I feel like I would like to be able to fall back on painting as an alternative. I love to paint and I’ve always been attracted to paintings.”

Are we talking about a third career change?“Not really, I think more that we are talking about the re-

alization of the physical demands of wood sculpting and rec-ognizing its limitations. At some point, painting may be the medium that allows me to continue producing art. But, again, I would have to find that thing that differentiates me from the rest. I’m looking for the thing that makes people look at a piece of work and say ‘oh, that’s an Awalt.’

“Until recently I felt like everything has already been done. How can I come up with something new? Whatever it is will have to be a culmination of a life’s experiences all coming together. My paintings are just starting to do that. They al-most look unfinished, and that’s the sort of look I want. Some painters fill the entire canvas with paint and feel that is neces-sary to have a completed work. Others who do landscapes find a special flower and feel the need to cover the canvas with its every detail.

“I don’t want that, like my sculptures, I want the viewer to see only what I want him to see and understand that there is more, but not enough to be important. If I can accom-plish that, and, if we start seeing some interest at shows and among gallery owners, it might work. What I don’t want is to be forced into a situation where I have to paint and end up in an art form that starts directing me and is no longer pleasurable.”

What will your subject matter be?“The human form, of course, that’s the only thing I know

enough about. My focus will probably be the eyes because your eyes are the most expressive organs in the body. Every emotion is expressed through the eyes and when you get the eyes right you capture the subjects essence.”

Your work clearly suggests a strong knowledge of the body, did you study anatomy?

“Oh yes, every science class I ever took was either anatomy or physiology. Plus, it is impossible to study the masters of the renaissance and not know anatomy. As I said earlier, I could copy any design I saw, and that hold true for painting as well. It is a whole lot easier to copy, though if you understand mus-culature and skeletal structure.”

Do you know anything about the people who buy your work?

“Not really, sometimes someone will contact me and ask for suggestions on where to place a piece in their house, but

usually there are sold by galleries and I am notified after the fact when the gallery asks for another piece.”

Is your work recognized as yours yet?“Not quite yet, but I feel that I am very close. I still go to

shows where people look at my work and say ‘there is a guy in Arizona that does the same thing,’ and I say no, that’s me. Or they will say they saw the same work in New Orleans, and I say no, that’s me too. The same thing for the guy in New York or North Carolina, it’s all me. The significant thing is that they are recognizing the work. That’s why I feel I am close to name recognition. It could take a week, a month or another ten years. I hope it doesn’t take that long, but I do feel it is coming.”

What advice would you give to someone, say a new comer to sculpting, who might be interested in purchasing or collecting your work? I mean besides, thank you.

“I don’t know why, but many people feel intimidated by gal-leries. I’ve heard people say that they fear being talked down

to, or that owners and employees are aloof. Nothing could be farther from the truth. Most owners and employees I know are very good at communicating, much better than I am. They want to help, not only because it is in their best interest for business sake, but they truly want the customer to be satis-fied. Think about it, how likely are you to purchase a ten or twenty thousand dollar work of art from someone who scares you? Not very.

“Gallery workers want to do what ever they can to make the experience pleasurable. They will take the time to learn your likes and dislikes, your home décor, anything they can to put the best piece they have in you hands, at the best price.”

So you recommend purchasing through galleries?“Yes, that’s the best way. People email me constantly want-

ing to purchase my work directly to eliminate the gallery markup, but what the galleries list them for are the prices. I can’t sell below their prices and expect them to continue marketing my product. I make my living selling through gal-

aWalTcontinued

Adam and Mary, 2006Material: Pecan

28" x 25" x 10"


leries. For a fairly complete list of galleries featuring my work, you can log onto my website, www.chadawalt.com, and click onto ‘Events,’ or ‘About’ and you can be linked to any of the galleries.”

Speaking about your website, you can click on “avail-able works,” and see all the pieces you have for sale, but it doesn’t show which gallery has it. Is that intentional?

“Actually, I hadn’t thought about it. That’s a good idea, I could cross reference the piece with the website of the gallery showing it and the customer could link directly to it. That’s something I’m going to try. In reality, I use my website more as a portfolio than a marketing tool. I realize that I underutilize the web and, if I made a few changes it could work much more in my favor. I guess that’s still part of the artist problem we all suffer from, art first; market sometime later.”

You mentioned earlier that you have created about two hundred sculptures since you began, about how many do you sell per year?

“This year was my best year, I sold about twenty pieces. Last year was my worst, but for some reason it was a bad year for all artists. Some one reported that the market for art last year was off by more than thirty percent. At first I thought it was just me, but as I spoke with other artists it became evident that everyone was seriously hurt.”

Did you do anything differ-ently last year?

“No, I was in the same number of shows, my advertising budget was the same, it just seemed that discretionary dollars normally directed toward art went a different way. What is interesting though is that this year’s increase put my sales right where they should have been if the market hadn’t tanked last year.”

If you were a manufacturer, we would be talking about what your plans would be to sell more products next year. As an artist, what is your production capability?

“I don’t know. I have inventory and I can create more stat-ues, but I’m not sure what my maximum output might be. I sold twenty last year, could I sell twenty five this year? Yes, but I don’t know if I could sell fifty or more. As I told you, this is a very physically demanding process. The smart thing to do

would be to sell the same number each year but at a better price. Again, that involves name recognition which is directly proportional to improving value, and value commands a bet-ter price.”

You have had your work displayed in museums from time to time; does that create a market for you?

“Their might be someone in the museum that could tell whether or not the piece was done by a living artist, but what usually happens is the museum customer will just write down the artists name, making sure it is spelt correctly, then go home and Google it. That would lead them to my website and could possibly generate an email.”

Through out the history of art, the need to be recognized has been paramount. Initially, the Catholic Church was the prime benefactor to artisans. Their names weren’t always

household names, but they were well known in the houses of prayer. From composing masses to painting murals or de-signing stained glass windows, the artist’s names were well known to the Catholic Clergy.

Later, the nobility felt the need to surround themselves with the best of the best and they paid handsomely for the privilege of commissioning their favorite composers or other art-ists. Many a classical composi-tion was named for a deserving member of Court.

As merchants grew wealthier, they too showed that they had the command of finances to procure the best the art world had to offer. And the names of the great renaissance artists of the day did become household words.

Today, contributions set up for the purpose of aiding and developing the talents of fu-ture great artists are available through the continuing patron-age of private contributions and

not so private foundations and universities.

Is it possible to avail yourself of any funds through pub-lic or private foundations?

“Generally that money goes to the universities or museums geared more toward the teaching of skills, but there are ways for businesses to make contributions to the arts and make it good for the business.”

How would that work?“Understand that I am neither an attorney nor an account,

and I sure don’t want to give tax advice, but I have heard that patrons and businesses appear to be able to receive tax breaks

through a process of lending and eventually donating works to museums. I don’t know the details, but it might be worth having a business executive contact his or her tax advisor to see. Museum curators might also be a source for more infor-mation.”

Is that another marketing tool you could use?“It is possible that the idea would appeal to a great many

people, and I would be honored if they felt my work was de-serving enough to be used to benefit museums, but I am still more interested in selling my work to the ultimate end user who will display it proudly in a home.”

“Even though I have been earning a living as an artist for over ten years, I am still able to recognize my short comings in the marketing end of the business. You commented about some ways I could improve my website to do a better job of connecting my customers to my work. There are probably a hundred more. As an artist I want to create and not think about improving sales. As a business man I know that I have to think about improving sales.

“There are people I know and see almost every day that could afford to purchase my work, but I can’t bring myself to discuss the possibility with them. From that perspective I fall into the class of artisan and not artist because I prefer to let the gallery people do the selling.”

It isn’t hard to understand Chad’s reluctance to “ask for the order.” In the world of sales a “NO” is a request for more information. To an artist it is rejection. Not just the rejection of a product, but of a creation, his creation! And that hurts.

How much self confidence would you have to have to sit on the examination table in your doctor’s office and say some-thing like “Hey doc, I see you’re on the board of the art mu-seum, did you know I’m an artist? Here’s my card, check out my web site, I would love to discuss my concept with you.” Who knows, maybe what you do is exactly what he or she has been looking to purchase for the entrance of the lake house. At any rate, you will never know if you don’t ask.

For any one with a sales background, a conversation like that would seem perfectly normal and it wouldn’t make a bit of difference if the doctor told you “thanks, but I’m not in-terested.” An artist however would rather stand on the ledge of a tall building than face the possibility of that sort of rejec-tion. In many cases, if the situation did occur and the doctor did say no, the reaction would be so traumatic that the artist would probably end up never returning to that doctor again.

An artist the caliber of Chad Awalt will make a successful liv-ing at his craft doing almost exactly what he has always done because it is unique. He will eventually succeed at gaining the name recognition he disparately desires because people will make the connection between the work and the man. A prob-lem might present itself, though, when and if he moves into painting.

That medium is not unique, and even if his work does show some separation from others, he will need to rely much more heavily on sales and marketing. In fact, it might pay greater dividends if he began practicing now. Best of luck, Chad, we will all be watching as you career soars to the next level.

aWalTcontinued

Achelois, 2007Material: Silver Maple48" x 15" x 6"


Nysa, 2007Material: Pecan

26" x 16" x 8"



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