William E. Simon

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William E. Simon
William E Simon.jpg
63rd United States Secretary of the Treasury
In office
May 9, 1974 – January 22, 1977
President Richard Nixon
Gerald Ford
Jimmy Carter
Preceded by George P. Shultz
Succeeded by W. Michael Blumenthal
Personal details
Born William Edward Simon
November 27, 1927
Paterson, New Jersey, U.S.
Died June 3, 2000(2000-06-03) (aged 72)
Santa Barbara, California, U.S.
Resting place Laurel Grove Memorial Park, Totowa, New Jersey, U.S.
Political party Republican
Spouse(s) Carol Girard Simon (m. 1950 - 1995, her death)
Tonia Adams Donnelley Simon (m. 1996 - 2000, his death)
Children William E. "Bill" Simon, Jr.
J. Peter Simon
Mary Beth Simon Streep
Carol Leigh Simon Porges
Aimee Simon Bloom
Julie Ann Simon Munro
Johanna Katrina Simon
Alma mater Lafayette College
Signature
Military service
Service/branch United States Army

William Edward Simon (November 27, 1927 – June 3, 2000) was a businessman, a Secretary of Treasury of the U.S. for three years, and a philanthropist. He became the 63rd Secretary of the Treasury on May 9, 1974, during the Nixon administration. After Nixon resigned, Simon was reappointed by President Ford and served until 1977 under President Carter. Outside of government, he was a successful businessman and philanthropist. The William E. Simon Foundation carries on this legacy. He was a strong advocate of laissez-faire capitalism. He wrote, "There is only one social system that reflects the sovereignty of the individual: the free-market, or capitalist, system".[1]

As Treasury Secretary[edit]

In August 1974, he was asked to continue to serve at Treasury by President Gerald R. Ford, Jr., who shortly afterward appointed him Chairman of the Economic Policy Board and chief spokesman for the administration on economic issues.

On April 8, 1975, President Ford also named him Chairman of the newly created East-West Foreign Trade Board, established under the authority of the Trade Act of 1974.

At the time of his nomination as Treasury Secretary, Simon was serving as Deputy Secretary of the Treasury, a post he had held from January 22, 1973. As Deputy Secretary, he supervised the Administration's program to restructure and improve U.S. financial institutions. He also served as the first Administrator of the Federal Energy Office.

From December 4, 1973, Simon simultaneously launched and administered the Federal Energy Administration at the height of the oil embargo. As such he became known as the high-profile "Energy Czar",[2] and represented a revitalization of the "czar" term in U.S. politics. He also chaired the President's Oil Policy Committee and was instrumental in revising the mandatory oil import program in April 1973. Simon was a member of the President's Energy Resources Council and continued to have major responsibility for coordinating both domestic and international energy policy.

In 1977, Simon received the Alexander Hamilton Award, the Treasury Department's highest honor. In 1976, while serving as Secretary of the Treasury, President Anwar Sadat of Egypt presented Simon with the Collar of the Republic/Order of the Nile. Simon's term as Secretary of the Treasury ended on January 22, 1977.

As Treasury Secretary, Simon supported free markets and denounced government policies that either subsidize or penalize businesses. In Simon's own words:

"Throughout the last century the attachment of businessmen to free enterprise has weakened dramatically as they discovered they could demand--and receive--short-range advantages from the state.... I watched with incredulity as businessmen ran to the government in every crisis, whining for handouts or protection from the very competition that has made this system so productive."[3]

Personal information[edit]

Simon was born in Paterson, New Jersey, on November 27, 1927, the son of Eleanor (née Kearns) and Charles Simon, Jr., an insurance executive.[4] He graduated from Newark Academy and, after service in the U.S. Army (infantry), received his B.A. in 1952 from Lafayette College in Easton, Pennsylvania. At Lafayette he was a member of Delta Kappa Epsilon fraternity (Rho chapter).

He began his career with Union Securities in 1952. He served as Vice President of Weeden & Co. before becoming the senior partner in charge of the Government and Municipal Bond departments at Salomon Brothers, where he was a member of the seven-man Executive Committee of the firm.

Following government service, Simon was a Vice Chairman at Blyth Eastman Dillon for three years, then co-founded with Ray Chambers, a tax accountant, Wesray Capital Corporation (Mr. Simon contributing the "Wes" and Mr. Chambers contributing the "ray"), a leveraged buyout (LBO) firm. In 1982, Wesray invested approximately $1 million in equity capital (with Mr. Simon contributing $330,000) and borrowed another $79 million to take private a Cincinnati-based greeting card company, Gibson Greetings, for $80 million. Eighteen months later, the company was taken public again, with a value of $290 million, and Mr. Simon's $330,000 investment was worth $66 million.

In 1984, he launched WSGP International, which concentrated on investments in real estate and financial service organizations in the western United States and on the Pacific Rim. In 1988, together with sons William E. Simon Jr. and J. Peter Simon, he founded William E. Simon & Sons, a global merchant bank with offices in New Jersey, Los Angeles, and Hong Kong. The firm is now[when?] extensively involved in providing venture capital. In 1990, he partnered with several investors to form Catterton-Simon Partners, a private equity firm focused on beverages and other consumer products, which today is known as Catterton Partners.

During his business career, Simon served on the boards of over thirty companies including Xerox, Citibank, Halliburton, Dart & Kraft, and United Technologies. In recognition of his leadership in business, finance and public service, the Graduate School of Management at the University of Rochester was renamed the William E. Simon Graduate School of Business Administration in 1986.

William E. Simon Scholarship Fund[edit]

The William E. Simon Scholarship Fund provides financial assistance for academically highly qualified students of the Pontifical University of Saint Thomas Aquinas, Angelicum who live in Rome and who would otherwise lack the resources to cover their educational expenses. Each scholarship award provides no more than 40% of the total annual expense of tuition, room, board, and related fees and expenses. Annually, the William E. Simon Scholarship Fund allocates 50% of the scholarship fund for lay students.[5]

U.S. Olympic Committee[edit]

Simon was an active member of the United States Olympic Committee for many years. He served as Treasurer from 1977 to 1981 and as President of the U.S. Olympic Committee from 1981 to 1985, which included the 1984 Games in Sarajevo and Los Angeles. He chaired the U.S. Olympic Foundation, created with the profits of the Los Angeles games, from 1985 through 1997, and was inducted into the U.S. Olympic Hall of Fame in 1991. An additional athletics-related honor came on October 11, 1975, when Simon threw out the first pitch of the 1975 World Series at Boston's Fenway Park on behalf of President Ford.

Simon received numerous awards during his career in sports. Among them are the Olympic Torch and the Olympic Order, the highest honors, respectively, of the United States Olympic Committee and the International Olympic Committee. Simon served as an officer or on the board of the Jesse Owens Foundation, the Basketball Hall of Fame, the National Tennis Foundation and Hall of Fame, the U.S. Amateur Boxing Foundation, the Women's Sports Foundation, and the World Cup '94 Organizing and Executive Committees.

Simon's legacy[edit]

At the U.S. Military Academy at West Point, he established the William E. Simon Center for the Professional Military Ethic.

At the U.S. Air Force Academy, he established the William E. Simon Center for Strategic Studies, as well as a Simon professorship.

In 1976, Simon received the U.S. Senator John Heinz Award for Greatest Public Service by an Elected or Appointed Official, an award given out annually by Jefferson Awards.[6]

Simon served as President of the John M. Olin Foundation and as trustee of The John Templeton Foundation. He has also served on the boards of many of America's premier think tanks, including the Heritage Foundation and the Hoover Institution. He was the author of two best-selling books, A Time for Truth in 1978 (ghostwritten by libertarian author Edith Efron) and A Time for Action in 1980.

Simon was a resident of Harding Township, New Jersey.[7]

In referring to Simon, The Washington Post stated in its October 26, 2007 edition:

Mr. Simon is commonly acknowledged as a legendary architect of the modern conservative movement. But he was also legendarily mean, "a mean, nasty, tough bond trader who took no BS from anyone," in the words of his old friend Edwin Feulner, president of the Heritage Foundation. Simon was known to awaken his children on weekend mornings by dousing their heads with buckets of cold water. Mr. Simon came away from the experience of Watergate with a disgust for the partisan character of the affair. The experience of Nixon impeachment convinced him, not that partisanship was necessarily poisonous, but that his opponents were far better at partisanship than his side was."[8]

Simon was a pioneer of the big leveraged buyout in the 1980s. He and his partner, Mr. Raymond G. Chambers, formed a partnership, Wesray, that bought and sold, among others, the Gibson Greeting Card Company, Anchor Glass, and the Simmons Mattress Company, typically investing tiny fractions of their own money, but loading the companies down with huge debts, and then selling the companies whole or piecemeal after making cosmetic changes that “often included job cutbacks and other short-term cost-reduction measures.”[9]

In the Anchor Glass case, Simon made millions more through deals with the company wherein the company leased its land, buildings, and equipment from Simon. Wesray also received banking fees for handling the subsequent purchase by Anchor of Midland Glass Company. But wait, there was more. Anchor Glass also bought casualty, liability, employee health and benefit insurance from a brokerage firm partially owned by Simon. Finally, the Anchor Glass corporate headquarters in Tampa was leased from Simon. Anchor Glass later admitted in an SEC filing, that “these arrangements...were not the result of arm’s length bargaining...[and] were not...favorable to the company”. Anchor Glass was finally bought by a Mexican company, Vitro, S.A. which closed at least four of its American plants.[10]

Simmons Mattress Company, a company founded in 1886, suffered a similar downward spiral after Wesray and partners bought it in 1986 for $120 million (almost all of it borrowed) and sold it in 1989 for $241 million, making Simon a tidy profit. Today, in 2009, the once solid company is on the verge of bankruptcy after having been bought and sold seven times in two decades by private equity firms, which together have drained $750 million from the company and investors [The New York Times, “Buyout Firms Profited as a Company’s Debt Soared”, Julie Creswell, Oct 4, 2009]. By the late 1980s, Forbes magazine was estimating Mr. Simon's wealth at $300 million. In retrospect, while Simon made a vast fortune for himself, his legacy on the ground was a series of damaged companies, fired workers, and closed plants. Culturally, his exploits inspired subsequent corporate raiders, the modern private equity firms, to follow directly in his footsteps, with companies like Simmons Mattress, further despoiling America’s corporations and investors. [11]

Simon married his first wife, Carol Girard Simon in 1950. William and Carol Simon had two sons and five daughters (William E., Jr., J. Peter Simon, Mary Beth, Carol Leigh, Aimee, Julie Ann, and Johanna Simon) and has many, twenty-seven grandchildren. She died in 1995. Simon widower, and married of second wife, Tonia Adams Donnelley in 1996.

Simon died of complications of pulmonary fibrosis at the age of 72, on June 3, 2000 in Santa Barbara, California. He was buried in Laurel Grove Memorial Park, Totowa, New Jersey. One of his sons, Bill Simon, was the Republican nominee for governor of California in 2002, having been defeated by the Democrat Gray Davis, who was subsequently recalled and replaced by Arnold Schwarzenegger. A daughter, Mary Beth Simon, was married to Dana Streep, brother of actress Meryl Streep.

In 2004, the Intercollegiate Studies Institute dedicated a $40,000 cash prize in honor of Secretary Simon. Each year since, the William E. Simon Fellowship for Noble Purpose has been awarded to a college senior desiring to live a life dedicated to serving humanity.

Since 2001, the William E. Simon Prize for Philanthropic Leadership has been awarded to distinguished living donors, including John T. Walton, John Templeton, and Phil Anschutz.

Notes[edit]

  1. ^ Simon, William E. A Time for Truth (New York:McGraw-Hill, 1978), 221. Cited in American Chameleon, Ohio Kent State University Press, 1991, p. 203
  2. ^ Nixon's Decisive New Energy Czar. Time Magazine. December 10, 1973. http://www.time.com/time/magazine/article/0,9171,908276,00.html
  3. ^ Bruce Bartlett, Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy, New York: Doubleday, 2006, pp. 105-106
  4. ^ http://academicmuseum.lafayette.edu/special/simon/bio.html
  5. ^ http://www.pustphilo.org/pust/borse/index.php Accessed May 27, 2012
  6. ^ http://www.jeffersonawards.org/pastwinners/national
  7. ^ Garbarine, Rachelle. "If You're Thinking of Living in: Harding", The New York Times, June 10, 1990. Accessed February 28, 2008. "Among its residents are William E. Simon, the former Secretary of the Treasury, and Robert P. Luciano, the chairman of Schering-Plough, the pharmaceutical company."
  8. ^ "Giuliani's Policy Professor," Benjamin Wallace-Welles, Washington Post 26 Oct 2007
  9. ^ America: what went wrong? By Donald L. Barlett, James B. Steele p.16].
  10. ^ America: What Went Wrong? By Donald L. Barlett, James B. Steele p.16]
  11. ^ http://BuyandHold (website), "William Simon", by Brian Trumbore

Further reading[edit]

  • Asen, Robert (2009). "Ideology, Materiality, and Counterpublicity: William E. Simon and the Rise of a Conservative Counterintelligentsia". Quarterly Journal of Speech 95 (3): 263–288. doi:10.1080/00335630903140630. 
Political offices
Preceded by
George P. Shultz
U.S. Secretary of the Treasury
Served under: Richard Nixon, Gerald Ford, Jimmy Carter

1974 – 1977
Succeeded by
W. Michael Blumenthal