The last tycoons: the secret history of Lazard Frères & Co by William D. Cohan Read Free Book Online

founding brothers, wrote him: "Things are looking better in Paris although the bears on francs will no doubt renew their attacks more than once. But I still feel that there is a great change in the situation now that the truth has been told. The people here are ready to pay their taxes, even the peasants."
    In March 1924, Altschul wrote Christian Lazard, taking a bit of a victory lap. "My heartiest congratulations on the success of the experiment, which I consider no longer at all in doubt," he wrote. "The situation has been dealt with in admirable manner." In a postscript to the letter, Altschul confided a twinge of regret that the house of Morgan, instead of the house of Lazard, seemed to be garnering the lion's share of the accolades for the success of the rescue plan. "Of course it is a matter of keen regret to me personally that we were not associated with Morgans in name in an operation the seed of which would seem to have originated with L.F.," he wrote, actually crossing out the typewritten words "me personally" and inserting, in his own hand, the words "all of us" instead. "We take for granted, however, that we will receive some adequate compensation through Joint Account or otherwise for the accommodation extended through Loan Account No. 2 and for the not inconsiderable services rendered." He also suggested that someone should be awarded the French Legion of Honor for the accomplishment--which is exactly what Altschul and Blumenthal received two years later from the French government, beginning another long tradition of Lazard partners so honored.
    Eventually the truth came out about how the franc crisis was solved, and Lazard Freres et Cie in Paris received many a tribute in the press and from the French government. "You can imagine what thrilling hours we have gone through," Christian Lazard wrote Altschul. "I do not think the Firm of L.F. & Cie, Paris had ever known a period like that one before." But he recognized that perhaps the real acclaim belonged with Altschul in New York. "All the time, I missed your presence here, because I remembered all our conversations and our visits [on the] Rue de Rivoli and I was sincerely sorry that L.F.N.Y. could not play, on your side, the prominent part to which they were entitled considering that the first idea of the whole scheme came from you." He also confided to Altschul "a secret" about how he had sold part of his equity portfolio to have plenty of francs around for the upcoming June 1924 sale of the highbrow art collection of Arthur Meyer, the Jewish owner of Le Gaulois, an important French newspaper. Included in the sale was a sublime haystack painting Meyer commissioned from Claude Monet in 1909. "I hope you won't be against me in the market," Christian wrote.
    A subsequent, handwritten letter a few days later from Christian reiterated his thanks to the "sister firms" for the "brave manner in which they have fought the battle with us." He also answered Altschul's postscript about how Lazard in New York would be compensated for its role by explaining, "We have placed all our staff and all our brains at the disposal of the B. of Fr. without accepting any remunerization whatsoever and...all our own business has been practically stopped since that first day of the fight. We feel sure you understand our point of view. We believe that in cases like that one, when public interest is at stake, it is not only patriotic but also wise policy to refuse any remuneration. We firmly believe that our firms will sooner or later get their reward for their present attitude. I might add that our London house has spontaneously offered the Bank of France to return the commission they have received from the English banks."
    While in Paris to work his magic in the franc crisis, Altschul seized the opportunity to introduce to the French partners his idea to move Lazard in New York into a wholly new business: a closed-end investment fund. At the outset, David David-Weill agreed to put $1