Leasing News

The State of the Small Ticket Marketplace
by Christopher Menkin

While many brokers are complaining about the small ticket market place, very little business, hard to get approvals, being frozen out, "forced" into selling credit card advances or factoring, the lenders themselves are having good years, except for write offs. This is seen in public financial statements of Key Equipment Finance, LEAF, US Bank, and now can be viewed with Microfinancial, whose subsidiary TimePayment is very active.

The good news:

MicroFinancial:

"Revenue in the fourth quarter of 2009 was $12.2 million compared to $10.5 million in the fourth quarter of 2008 as expected declines in rental income and service contracts during the quarter were more than offset by growth in the leasing revenues associated with our new lease originations," a current press release reports."

"Increased finance lease originations by 11.3% or $7.8 million as compared to 2008 bringing the total 2009 lease originations to $76.9 million..."

"Increased the size of our revolving credit facility to $85 million with 5 banks"

While a SEC filing has not been made to view the numbers reported, press releases note:

"For the year ended December 31, 2009, net income was $4.1 million versus net income of $6.0 million for the same period last year
Net income for the fourth quarter of 2009 was $1.3 million compared to .09 million net income for the same period last year.
For the nine months ended September 30, 2009, net income was $2.8 million versus net income of $5.0 million for the same period last year
Net income for the quarter ended June 30, 2009 was $1.0 million, compared to net income of $1.9 million for last year, although revenue was up 15.4% to $11.1 million compared to $9.6 million."

The above indicates an increase in income, and changes made during the year have had a positive result.

What is happening in the small ticket market, and being watched by underwriters, can be realized by reading these figures:

((Readers who don't understand this, recommend now is the time to take “reading a financial statement class” available from many leasing associations, leasing trainers, and also available in junior college and many larger night high schools—the basics):)

"Total operating expenses for the year ended December 31, 2009 increased 31.1% to $39.8 million versus $30.4 million for 2008. Included in these operating expenses were increases of $0.3 million in selling, general and administrative expenses which increased to $13.4 million, and an increase of $1.7 million in interest expense, which increased to $2.8 million. In addition, the provision for credit losses increased $6.7 million to $22.0 million compared to the prior year. Year to date net charge-offs increased to $19.9 million as compared to $9.3 million for 2008." (bold font/underlining by editor)

"Total operating expenses for the current quarter increased 14.9% to $10.4 million from $9.1 million in the fourth quarter of 2008. Included in the fourth quarter increase of operating expenses was an increase of $1.0 million in the provision for credit losses as compared to the same period last year bringing the quarterly provision to $6.2 million. This increase was due primarily to increased delinquencies and higher charge off levels. Fourth quarter net charge-offs increased to $6.2 million from $3.8 million in the comparable period of 2008. Interest expense increased to $0.8 million for the quarter due to higher average outstanding debt balances and an increase in the interest rate on our revolving line of credit. These increases were slightly offset by a 12.0% or $0.4 million decrease in selling, general and administrative expenses. These decreases were primarily due to decreases in recruiting, legal, marketing and collection related expenses."
---Microfinancial Press Release

Many of the small ticket market companies have consolidated, reduced employees, but most likely not in the collection department. While this may be the market place for several in the small ticket arena, the economy is tougher and collection work more time consuming and necessary.

In considering the Equipment Leasing and Finance Association monthly MFLi-25 report, there are not many small ticket companies in the group that report their numbers; perhaps more importantly, their numbers would also not match the sales of a large ticket or captive lessor that may include service in the lease transactions.

It appears the entire financial community feels the recession and turn down in business and no sector is immune. Stating this, there are banks, financial groups, and leasing companies who are doing well, just not that many.

ELFA MFLi-25 Numbers

While I understood budgets, and had courses on financial statements, when I began in the leasing business in 1971, I took a Dun & Bradstreet correspondence course on “Understanding Financial Statements.” One of the things I remember, really stuck in my mind: “It is not sales that make a profit, but good management.

Financial and Sales Training

These individuals act as a consultant in 75% or more of their main business, actually training staff or individuals of a leasing company. Several have WebAir programs, hold classes, and most will travel to their client's premise.

Second Column: YCS - Year Company Started | YELB - Years in equipment Leasing Business

Name City, State Contact Website Leasing Association	YCS YELB (see above for meaning)	Geographic Area	Specialty
Institute For Personal Development Vourhees, NJ Linda P. Kester linda@lindakester.com 856.489.6558 www.lindakester.com National Speakers Association	1996 18	United States	Motivating, Educating and empowering leasing sales reps to top performance. Practical ideas for success using the telephone and internet.
Adrian Miller Port Washington, NY Adrian Miller amiller@adrianmiller.com 516-767-9288 www.adrianmiller.com www.adrianmiller.com/blog/	1989	International	Highly results-driven, informative and enjoyable sales skills training programs that will leave participants empowered for bottom-line success. AMST guarantees a positive return on training time and investment.
Selling Up TM San Francisco, CA Stephen Chriest schriest@selling-up.com 800-745-8075 www.selling-up.com (A)	2000 20	International	By leveraging people, process and technology, Selling Up guides the next step in revenue generation and elevates sales organizations into appreciating corporate assets.
Teichman Financial Training Sausalito, California Bob Teichman, CLP BoTei@aol.com 415.331.6445 NAELB, NEFA	1998 43	International	"We specialize in the technical side of leasing, offering comprehensive training in packaging, credit, pricing, structuring, financial analysis and operations. Our clients include lessors, lessees, lenders, associations, and government agencies."
Wheeler Business Consulting, LLC Fallstow, Maryland Scott Wheeler, CLP Scott@wheelerbusinessconsulting.com 410-877-0428 www.wheelerbusinessconsulting.com NAELB, NEFA	2008 26	USA	Provide multiple educational products to individuals and companies engaged in the leasing/financing industry. Encourage & facilitate personal and corporate strategy building to promote efficiencies, increase productivity & future success.
Winders Consulting Co., Inc. Louisville, KY Terry Winders, CLP Leaseconsulting@msn.com 502.327.8666 ELFA, NAELB, NEFA	1991 35	USA	Lease seminars and training on rules & regulations pricing, documentation, sales. Also procedure audits, and help to establish a leasing activity or company for brokers, bankers, and captives.. Expert witness on legal & tax.

(A) Selling Up's Sales Management Operating System™ ( SMOS™) provides companies and business units of all sizes with a proven methodology and unique tools offering a comprehensive, flexible, scalable approach to managing all elements of the organizational sales process.

(This ad is a “trade” for the writing of this column. Opinions
contained in the column are those of Mr. Terry Winders, CLP)

Classified Ads---Help Wanted

Sales

Newport Beach, CA / New York, NY
20 openings CA/4 NY - Min. 1yr exp.
Est. customer/vendor a plus. Base plus comm.
Info@eaglebusinessfinance.com

Eagle Business Finance is a national Leasing company offering brokered and internal funding services from $1,000 to $2,800,000
www.eaglebusinessfinance.com

5 Years+ Small Ticket or Middle Market Exp.
with Established Customer/Vendor relationships.
Remote Office or On Site/ Jobs@TEQlease.com
Attn: Mike Lockwood or Russ Runnalls CLP

TEQlease Provides Customized Equipment
Leasing Solutions For Businesses Nationwide
www.TEQlease.com

National Business Development Manager
With seven years experience including current existing book of business. Remote Office Okay. Click here for more info.

Western Finance & Lease, a subsidiary of Western State Bank established in 1901, solicits originations throughout the US and provides
funding solutions for a wide range of industries. .

Please see our Job Wanted section for possible new employees.

Story Credit Lessors

These companies specialize in "C" and "D" credits, often new businesses, or businesses where the principal(s) have Beacon score around 600 or previous difficulties; meaning to become comfortable with the credit and financial situation you need to learn the "story" to make a positive decision, often requiring further security, shorter term, or additional guarantors. Many of these companies may also be a "B," but appear otherwise without the "story" to understand the full financial picture.

Also listed below the dollar amounts are companies that who are known for accepting "subprime leasing."

(To qualify for this list, the company must be a funder and not a "Broker/Lessor" or "Super Broker/Lessor", along with an acceptable Better Business Bureau Rating and no history of complaints at Leasing News. We reserve the right to not list a company who does not meet these qualifications.)

Alphabetical list - click on company name to view more details
ABCO Leasing, Inc. Advantage Funding Agility Solutions Allegiant Partners Incorporated American Leasefund, Inc. Bankers Capital Barrett Capital Corporation	Black Rock Capital Blackstone Capital Partners Boston Financial & Equity Calfund, LLC Cobra Capital LLC Financial Pacific Leasing	Forum Financial Services, Inc. Gonor Funding National Machine Tool Financial Pawnee Leasing Corporation Standard Professional Services, LLC TEAM Funding Solutions

Funder List “A”
http://www.leasingnews.org/Funders_Only/Funders.htm

Funder List “B”
http://www.leasingnews.org/Funders_Only/Funders_B.htm

((Please Click on Bulletin Board to learn more information))
(Leasing News provides this ad “gratis” as a means
to help support the growth of Lease Police)

Why Are Funders Bothering to Sue E.A.R. Guarantors?

(Banks as large as Bank of America, Comerica, Fifth Third Bank, Harris Bank are involved in the Equipment Acquisition Resources lease financing fraud. A bankruptcy is in place, where many creditors are saying it is all worthless, not worth bothering to pursue, yet there are separate actions against EAR and the individual guarantors. Why? That is the question asked Mr. Witt. Editor)

Much has been written in Leasing News recently about the infamous (alleged) scam masterminded by E.A.R.’s Sheldon Player and his cronies. More than a few loyal readers of Leasing News have raised the question: With E.A.R. in bankruptcy and stripped of its assets, and with the guarantors (Player and his wife) having either (allegedly) fraudulently transferred or hidden their personal assets, why would the injured funding sources waste their time and money suing and taking default judgments against them?

It’s a multifaceted question and, frankly, not all that difficult to answer. First, default judgments (which result when a defendant in a law suit fails to file an answer to the complaint and appear in the suit) are relatively inexpensive to obtain because, simply, there is no one there to fight you. Depending on whether the court requires a hearing to determine the precise amount of the plaintiff’s damages, the entire process usually takes an attorney only a handful of hours from start to finish. Even if the plaintiff can’t locate assets to satisfy the judgment now, the guarantor’s financial situation may change next year, or in five years – or maybe it will take ten. In most states, judgments last a certain number of years but can be renewed at the end of that period. Theoretically, as a very general matter, a judgment could last indefinitely and bind the guarantor’s estate.

So the question really becomes: Unless there are unusually complicated roadblocks in the way to obtaining a default judgment (which is quite uncommon), why not get your judgment? Certainly in a small-ticket situation – say, a claim against a guarantor of only $10,000 – you can probably conclude, wisely, that you’d be throwing good money after bad by taking action against a guarantor who has no known, immediately available assets. But in the E.A.R. scenario, most of the defendants were out millions. Given the dollars at stake, it might even be legal malpractice, arguably, for an attorney to tell a client not to obtain a judgment, put in on a shelf, and wait.

And, there’s always the possibility of a sweet moment coming five, ten, maybe even fifteen years later. Imagine this scenario: A guarantor against whom you obtained the judgment finally fades back into anonymity, comes across some more money, signs an agreement of sale on a new mansion and finds out at the closing table that the title company will require your judgment to be satisfied before they will issue the title policy. You get a call, you rejoice, and you fax your wire instructions to the settlement table. Within the hour, you have your money and maybe a good amount of post-judgment interest, too. Any creditor who has been in business for more than five or ten years has experienced at least one such serendipitous moment, and maybe many.

Query: If debtors with unsatisfied judgments against Sheldon Player dating back to his infamous Greyhound (alleged) scam in the 1980’s had remained vigil and reattempted judgment executions two decades later, when he had gone off people’s radar screen – and before he made history repeat itself in his (alleged) E.A.R. scam – what might they have found?

Michael Witt was Managing Counsel at Wells Fargo & Co and Senior Vice President and General Counsel of Advanta Leasing Corporation.

He is now in private practice in Iowa.

witt-law@live.com
Michael J. Witt Law Offices
4342 Oakwood Lane
2nd Floor
West Des Moines, IA 50265
Tel: (515) 868-1067
Web: http://www.witt-law.com

Previous Columns:
http://www.leasingnews.org/Conscious-Top%20Stories/witt_desk.html

(This ad is a “trade” for the writing of this column. Opinions
contained in the column are those of Mr. Michael Witt, Esq.)

Even industry experts agree that lease accounting standards are arcane and esoteric. It doesn't seem to be a question of “if,” but “when” the SEC gets its way and has the current lease accounting standards rewritten. When this happens, the leasing industry, as it has existed during the last thirty years, will change, and those leasing salespeople involved in so-called structured transactions will have to change the way they sell.

It's hard to argue with the SEC's position that off-balance-sheet treatment of leases allow companies to easily make a finance purchase appear like a rental contract. Using current accounting standards, lessees are able to legally keep an estimated $1.25 trillion (undiscounted) in future payment obligations off their balance sheets!

Robert Herz, chairman of the Financial Accounting Standards Board (FASB), agrees with the SEC. He questions why companies that acquire even essential assets, and incur a non-cancelable obligation to pay for them over time, want to keep the assets and the payment obligations off their balance sheets. The concern, of course, is with accounting transparency, and with ensuring the ability of investors to accurately evaluate a company's true financial condition.

So, how much of the leasing industry would be affected by these accounting rule changes? Since the SEC estimates that 63% of public companies use operating leases, and the estimated total cash flows related to non-cancelable operating leases outweighs the cash flows related to capital leases by more than 25 to 1, a significant percentage of the equipment leasing industry will be affected by the changes.

What will lessors and leasing sales professionals do if off-balance-sheet financing disappears and leasing products must be justified solely on economic terms? Without the advantages of off-balance-sheet leases, lessors will somehow have to position themselves as viable alternatives to basic interest-rate-spread lenders.

For those involved in structured transactions, now is the time to prepare a game plan for competing in a new accounting environment. The value propositions of lessors will need to emphasize creative financing products that address their customers' pressing business problems, expertise in asset and risk management, and other operational benefits of leasing.

Whether the client requests a Capital Lease to take advantage of depreciation programs or not, the sizzle of leasing in the sales presentation will change. Perhaps there will be more Equipment Finance Agreement contracts introduced.

The end of true leases will surely present true challenges for the industry. Leasing industry boosters will no doubt argue that just as the industry survived and prospered after the repeal of the Investment Tax Credit, ways will be found to survive future changes in accounting rules. Having met a great many smart, creative leasing industry veterans, I would bet on this argument.

About the author: Steve Chriest is the founder of Selling UpTM (www.selling-up.com), a sales consulting firm specializing in sales revenue improvement for organizations of all types and sizes in a variety of industries. He is also the author of Selling The E-Suite, The Proven System For Reaching and Selling Senior Executives and Profits and Cash – The Game of Business. You can reach Steve at schriest@selling-up.com.

Previous columns: View from the Top
http://www.leasingnews.org/Conscious-Top%20Stories/A_View.htm

Leasing News: Fernando’s View
By Fernando F. Croce

Audiences can choose between France and thrills (“From Paris with Love”) and Italy and laughs (“When in Rome”) in theaters, and check out one of last year’s finest movies (“A Serious Man”) as it hits DVDs.

From Paris with Love (Lionsgate): Pierre Morel and Luc Besson, the duo responsible for the kinetic hit “Taken,” return for more thrills. Mixing humor and nonstop action, they follow the odd-couple pairing of two CIA agents stationed in Paris. James Reece (Jonathan Rhys Meyers) is the aid to the U.S. Ambassador in France, whose desire for more excitement in his life is answered when he’s paired up with Charlie Wax (an inspired turn by John Travolta), a hair-trigger loose cannon who takes him on a frantic tour of the city’s criminal underworld. Barely allowing audiences even a minute to catch their breath after last week’s “Edge of Darkness,” this thriller should help pump some energy into the February’s usually ho-hum theater screens.

When in Rome (Touchstone Pictures): If Italy and romance are more your speed than France and action, check out this lightweight comedy, which presents a chance of pace for superhero-movie director Mark Stephen Johnson (“Daredevil,” “Ghost Rider”). Beth (Kristen Bell) is a New Yorker who, disillusioned with love, decides to try her luck in Rome. As soon as she grabs a few coins from a mystical “fountain of love,” however, a gaggle of suitors is after her, including a magician (Jon Heder), a millionaire (Danny De Vito) and an artist (Will Arnett). But will this spell extend to the man of Beth’s dreams (Josh Duhamel)? Reminiscent of the European 1960s travelogues that used to star Sandra Dee, this winsome comedy should please viewers looking for fluffy fun.

Netflix tip: Luc Besson, the writer-producer of this week’s “From Paris with Love,” has been a purveyor of visually arresting action for the past two decades. Use Netflix to get acquainted with his uniquely romantic thrillers, which include “La Femme Nikita,” “Leon the Professional” and “The Fifth Element.”

New on DVD:

A Serious Man (Focus Pictures): Acclaimed filmmakers Joel and Ethan Coen follow the dark, Oscar-winning drama "No Country for Old Men" and the slapstick comedy "Burn After Reading" with this outstanding film, which combines elements from both their most recent movies. Larry Gopnik (Michael Stuhlbarg) is a physics professor muddling through life in 1967 Minneapolis. His meek suburban experience takes an unexpected turn as a series of terrible events, ranging from his son being picked on by school bullies to a threatened job, leave him feeling lost. Though a description of the plot suggests a heavy tragedy, the Coens' unique mix of humor and despair instead crafts a brilliant portrait of one man's doubts and fears that's also often uproariously funny. One of last year's best films.

Song of Sparrows (Regent Releasing): Iranian director Majid Majidi ("Children of Heaven") returns to his favorite subjects of plucky children and bucolic life in this gentle comedy-drama. The story takes place in a poor household near Tehran, as a double crisis hits the family. Karim (Reza Najie) is fired from the ostrich farm where he works, and his daughter loses her hearing aid down a well. In need of cash, he becomes a bogus taxi driver, giving rides to city people and making good money at it, too. It's not long, however, before Karim picks up some questionable habits from his customers. If not on the same level as other Iranian artists like Abbas Kiarostami, Majidi's movie maintains a sweet and often poetic tone that's just as universal. With subtitles.

The Time Traveler’s Wife (New Line): Fans of last year’s “The Curious Case of Benjamin Button” should check out this romantic fantasy, which is based on Audrey Niffenegger’s popular novel. Like that movie, the story follows a pair of sweethearts, Clare (Rachel McAdams) and Henry (Eric Bana), who are made for each other yet are kept apart by extraordinary circumstances. In this case, what separates them is a rare condition that causes Henry to skip timelines. Can the two of them build a life together, when the husband keeps going back and forth between past and present? The premise sounds curious indeed, but the delicate performances by McAdams and Bana and Robert Schwentke’s thoughtful performance keep the show consistently engaging.

### Press Release ############################

Prolease and 5280 Financial Merge: Now Numerica Capital Group, LLC.

This joint venture gives Numerica Capital Group, LLC and its independent rep network the opportunity to offer competitive financing to a wide variety of businesses especially when many banks and financial institutions are withdrawing from the market or making it more difficult to obtain financing for the business community.

Numerica Capital Group, LLC brings together over 100 years of equipment leasing experience under one umbrella, along with greater funding depth and back office system efficiencies to better service the need for equipment financing. The company is headquartered in California and will continue to grow its network of independent field offices to serve customers nationally with the help of a proprietary web-based CRM and extensive management experience.

Numerica Capital Group, LLC is the beneficiary of long standing lending relationships established by Prolease and 5280 Financial. The goodwill Prolease and 5280 Financial developed with these funding sources over the years allows Numerica to continue to extend credit to a broad range of businesses in these challenging times.

In addition, Prolease and 5280 Financial are members of the only lease finance cooperative, OneWorld Business Finance, and they will continue this association under Numerica Capital Group, LLC. This membership, along with its aforementioned relationships, gives Numerica an extensive range of lending capacity and provides equipment vendors more opportunities to finance their business customers

Aaron Rios previously President of Prolease is excited about Numerica Capital Group, LLC "Numerica offers the opportunity to bring together two companies with similar business philosophies. It gives the independent rep a way to service and grow their vendor business in a declining funding environment." He believes that Numerica is poised to collaborate with its reps to service their vendor business and bring tools beyond funding to enhance their business.

Skip Wehner, one of the founding members of 5280 Financial, is equally excited about the joint venture being well positioned as a permanent landing spot for tenured sales reps with vendor relationships. "With so many experienced sales reps being 'orphaned' by the larger lenders over the past year, we are very enthusiastic about the early success we have had integrating these reps into our system. Our technology platform allows us to extend our architecture to reps in any location so that they can better serve their vendors."

Contact: Aaron Rios
Tel: (949) 260 1000 ext 205
Email arios@inumericacapital.com
Website: www.numericacapital.com

#### Press Release #############################

    1631- English clergyman Roger Williams first arrived in America. He soon began questioning Massachusetts' religious policies which fused church and state matters. Williams was banished to Rhode Island five years later, where at Providence he established the first Baptist church in America. He is known today as the “founder of Rhode Island.”
http://memory.loc.gov/ammem/today/feb05.html
    1644- the first branding law by a colony was enacted by Connecticut. It provided that all cattle and swine older than six months be earmarked or branded before May 1, 1644, and that the marks be registered. The penalty for violation was five shillings a head, two of which were paid to informers.
   1723-Birthday of John Withersoon, clergyman, signer of the Declaration of Independence and reputed coiner of the word “Americanism” (in 1781). He was one of the hardest workers on the constitution and for the United States, according to historians. When he arrived from Scotland he had brought three hundred books with him, donated it to College of New Jersey (now Princeton University), where he became president and was active as a minister, plus building the library and the college. Five months after signing the Declaration, the British burned his library. As one colleague reported, "He would lay aside the cloth to take revenge on them, I believe he would send them to the devil if he could." Born near Edinburgh, Scotland. Died at Princeton, NJ. Nov 15,1794.
http://thedeclarationofindependence.org/JohnWitherspoon.com/
http://www.ushistory.org/declaration/signers/witherspoon.htm
    1736- The English Wesley brothers, John (32) and Charles (28) first arrived in America at Savannah, GA. They had been invited by Georgia governor James Oglethorpe as missionaries to the American Indians. They were co-founders of Methodism.
http://gbgm-umc.org/umhistory/wesley/
    1777- Changing European historic tradition, King George abolished laws of entail and primogeniture. Entail is a means of willing property to a specific and unchangeable hierarchy of inheritors. Primogeniture is the right of the eldest child in a family, usually the eldest son, to inherit his parents’ entire estate. In Europe, all property and rights went to the first born, and were willed primarily to the first born male, with the rest of the family having to depend on the eldest son. This was one of the most
profound far reaching changes to both the financial and moral differences between the old world and the new world.
    1780- The estimated colonial population was 2,7821,000. The winter was very cold and the Continental Army had suffered its worst privations, its greatest defeats, and its darkest hours. It would continue to lose battles but, by the time turned into a well-trained fighting force by European officers and aided by allied French forces, it endured and marched to ultimate victory at Yorktown, VA, in August 1781. The diplomatic struggle continued. Primarily articles of peace were secured on November 30,1782, after long and difficult negotiations. The Treaty of Paris by which the was officially ended and independence formally acknowledged by Great Britain, was not signed on September 3,1783.
    1846- The first newspaper published on the Pacific Coast was the Oregon Spectator, a semimonthly issued in Oregon City, OR. Its slogan was “ Westward the star of the empire takes its way.”
    1856--Chinese New Year began in San Francisco. New Year's Eve was celebrated by the Celestials last night with the explosion of millions of firecrackers.
    1861- Louisiana delegation except Dominique Bouligny withdraws from Congress. Mr. Bouligny was opposed to the doctrine of secession, and was the only representative from a seceding state that did not leave his seat. During the civil war he remained in the north, dying in Washington before its close.
http://famousamericans.net/dominiquebouligny/
http://www.congressionalcemetery.org/PDF/Obits/B/Obits_Bouligny.PDF
    1861 - Cincinnati, Ohio resident, Samuel Goodale, patented the moving picture peep show machine. After depositing a coin and turning a crank on the side of the ornate box, a flickering movie appeared.
Pictures were placed on leaves fastened by one edge to an axis in such a way that they stood out like spokes. As the shaft revolved, different images were seen in motion.
    1883-The Southern Pacific Railroad completes its transcontinental "Sunset Route" from New Orleans to California, consolidating its dominance over rail traffic to the Pacific. One of the most powerful railroad companies of the 19th century, the "Espee" (as the railroad was often called) originated in an ambitious plan conceived in 1870 by the "Big Four" western railroad barons: Collis P. Huntington, Charles Crocker, Leland Stanford, and Mark Hopkins. A year earlier, the Big Four's western-based Central Pacific had linked up with the eastern-based Union Pacific in Utah, creating the first transcontinental American railway. With that finished, the "Big Four" began to look for ways to increase their control over West Coast shipping, and decided to focus their efforts on extending the California-based Southern Pacific southward.
By 1877, the Southern Pacific controlled 85 percent of California's railroad mileage. Huntington, who now dominated the company, saw an excellent opportunity to create a transcontinental line through the southern United States. Huntington had to act fast if was to beat the competition. The Texas and Pacific Railroad was already pushing westward toward the Pacific at a fast pace. Marshalling his awesome energy and financial resources, Huntington began driving his Southern Pacific line eastward. He won the race in 1881, when he linked the Southern Pacific to the Santa Fe Railroad at Deming, New Mexico, creating the second American transcontinental railway. Two years later, on February 5, 1883, Huntington gained full control of a number of smaller railroads, creating the Southern Pacific's "Sunset Route" from New Orleans to California. With the "Sunset Route," Huntington confirmed his domination over California rails. He had taken considerable financial risks to build the Southern Pacific system, and he collected very considerable financial rewards. The Southern Pacific had a near monopoly over rail service to California, and Huntington and his associates took advantage of the situation by charging high shipping rates. Termed "the Octopus" for its tentacle stranglehold on much of the California economy, the Southern Pacific inspired Californians to create some of the first strong public regulations over railroads in American history. But despite the anger and outrage Huntington's exploitation inspired, few would deny that the mighty Southern Pacific Railroad played an essential role in fostering the growth of a vibrant California economy for decades to come.
    1887 -The Chicago Evangelization Society was organized by evangelist D. L. Moody, 50. Two years later, the Society established the Bible Institute for Home and Foreign Missions. Moody died in 1899, and in 1900 the school was renamed Moody Bible Institute.
    1887 - San Francisco, California had its greatest snowfall ever with 3.7 inches falling. The western hills of the city recorded up to 7 inches.
Excited crowds went on a snowball throwing rampage.
    1889-According to many sources on the internet, but not confirmed, the word “hamburger” first appears in the Walla Walla Union newspaper.
It is perhaps this allegation that MacDonald’s “How ya doin’? How you doin’?”
fellow meets his girl, and asks here where she is from: “Walla, Walla.”
While this date and event appears on many “internet calendars,” we could not confirm nor deny it.
http://www.whatscookingamerica.net/History/HamburgerHistory.htm
http://www.geography.ccsu.edu/harmonj/atlas/burgers.html
    1900 -- Surrealist painter Yves Tanguy born.
http://www.cosmopolis.ch/english/cosmo14/yvestanguy.htm
http://www.ibiblio.org/wm/paint/glo/surrealism/
http://www.artcyclopedia.com/artists/tanguy_yves.html
    1914-Birthday of famous American author William Burroughs, St. Louis, Missouri. His “Naked Lunch” is considered an American classic. Perhaps
not realized by many, he is the scion of the famous computer business
corporation, graduate of Harvard University, besides being well known
for his drug experiments.
http://www.altreel.com/cult-fiction/Burroughs.html
http://www.streettech.com/bcp/BCPgraf/Glossary/gloss1.html#Burroughs
    1916 - For the Victor Talking Machine Company, Enrico Caruso recorded "O Solo Mio". The company eventually became Victor Records, then RCA Victor
    1917- Mexico's present constitution was adopted, embracing major social reforms. This is a national
holiday in Mexico.
    1917- An Immigration Act was passed by Congress over President Woodrow Wilson's veto ( on January 29th ). The law required a literacy test for immigrants and barred Asiatic labors, except for those from countries with special agreements or treaties with the United States. A series of reforms was introduced and passed over Wilson veto to the United States. The country was moving to an isolationist policy.
    1921- Yankees purchase 20 acres in the Bronx for Yankee Stadium
    1924- President Wilson was the first president buried in Washington, in the National Cathedral, the
Protestant Episcopal Cathedral of Sts Peter and Paul.
    1928- birthday of Donald “Don” Hoak, baseball player born at Roulette, PA> Hoak was a tough third baseman who played with the Brooklyn Dodgers, the Chicago Cubs and the Pittsburgh Pirates. He was married to singer Jill Corey. Died at Pittsburgh, PA, Oct 9, 1969. 1933- country singer Claude King was born in Shreveport, Louisiana. His recording of "Wolverton Mountain" was a big hit on both the pop and country charts in 1962.
1929—Birthday of drummer and author Hal Blaine, Holyoke, MA
http://www.molehillgroup.com/hal_blaine.htm
http://www.drummerworld.com/drummers/Hal%20Blaine.html
http://www.halblaine.com/
    1933 -- Golden Gate Bridge work commences in San Francisco. The California. Bridge opens May 28, 1937.
http://www.goldengatebridge.org/photos/history.html
http://www.sfmuseum.net/hist10/strauss.html
    1934- birthday of “Hank” Aaron, baseball executive and Baseball Hall of Fame outfielder, born Mobile, AL. Holds major league record for most career home runs (755), home runs with one club (Braves, 733), RBIs (2,297), total bases (6,856), most games played (3,298) and many others. • Hit 20 or more home runs for 20 consecutive seasons (1955-1974). Named to 24 All Star games.
http://www.baseballhalloffame.org/hofers_and_honorees/hofer_bios/aaron_hank.htm
    1936-Birthday of vocalist June Tyson, Albermarle, NC
http://www.artistdirect.com/music/artist/card/0,,504102,00.html
http://www.edmicheljazzproducer.com/sun_ra.htm
    1936 - The first Charlie Chaplin talkie, "Modern Times", was released. Chaplin’s voice was heard in the film, but he was difficult to understand as he was singing gibberish that no one understood. Paulette Goddard who played the part of a waif was the movie's star.
http://www.filmsite.org/mode.html
    1940- Glenn Miller records “Tuxedo Junction,” (Bluebird 10612 ).
    1941- Motown songwriter and sometime singer Barrett Strong was born in Mississippi. Strong's 1960 recording of "Money" was one of the first hits for Berry Gordy's Motown company. But Strong soon began concentrating on songwriting, collaborating with Norman Whitfield on some of the Temptations' biggest hits, including "Just My Imagination," "Psychedelic Shack" and "Cloud Nine."
    1942- Roger Staubach, pro Football Hall of Fame quarterback, born Cincinnati, OH. Heisman Trophy winner as Navy junior in 1963; led Dallas to 2 Super Bowl titles (1972,78) and was Super Bowl MVP in 1972; 5-time leading passer in NFC (1971,73,77-79).
    1942-Birthday of pianist Keith Ingham, London, England
http://www.jazzcanadiana.on.ca/_Ingham.htm
http://www.jazzcanadiana.on.ca/INGHAM.HTM
http://www.jazzbymail.com/artists/ingham.html
    1944- Guitarist and keyboard player Al Kooper, a major figure in the blues-rock movement of the 1960's, was born in Brooklyn, New York. In 1965, he helped form the Blues Project. And two years later, he and Steve Katz put together Blood, Sweat and Tears, but Kooper left the group before it achieved commercial success. By the '70s, Kooper was involved more in producing than recording. He discovered the groups Lynyrd Skynyrd and the Tubes.
http://www.alkooper.com/bio.html
http://jhendrix110.tripod.com/AlKooper.html
    1948---Top Hits
Golden Earrings - Peggy Lee
How Soon - Jack Owens
Ballerina - Vaughn Monroe
I’ll Hold You in My Heart (Till I Can Hold You in My Arms) - Eddy Arnold
    1948- Dick Button became the first American to win a gold medal in figure skating when he triumphed at the Fifth Winter Olympics at St. Moritz, Switzerland. Button earned a second gold medal four years later at Oslo, Norway.
    1950- Stan Kenton’s Band records Shorty Roger’s “Jolly Rogers,” “Blues in a Riff,” Hollywood, CA.
    1953 - "Peter Pan", the Walt Disney film, opened at the Roxy Theatre in New York City. Although the film is now said to be a great work, not all of the 1953 critics liked the Disney stylization J.M. Barrie's play.
    1953 - Lucille Ball and Desi Arnaz excitedly received their first of several Emmy Awards at the 4th Annual Emmy Awards banquet in Los Angeles. I Love Lucy won for Best Situation Comedy and Lucille Ball won for Best Comedienne. Other winners at the event included Robert Montgomery Presents for Best Dramatic Program; Dragnet for Best Mystery, Action, or Adventure Program; Your Show of Shows won for Best Variety Program; and Time for Beany was chosen Best Children's Program for the third year in a row. Emmys were originally going to be called "Ikes," a short form for the television iconoscope tube, but the name had problems, as it was also the nickname of war hero and future President Dwight D. Eisenhower. Ultimately, the nickname chosen was a feminization of "Immy," a term commonly used for the early image orthicon camera tube.
    1955-WNEW Radio in New York City announces the results of its annual music popularity poll. The winners are Perry Como, Patti Page, the Crew- Cuts and Ray Anthony.
    1955-- The Fontaine Sisters' "Hearts of Stone" hits #1
    1956---Top Hits
Rock and Roll Waltz - Kay Starr
See You Later, Alligator - Bill Haley & His Comets
No, Not Much! - The Four Lads
Sixteen Tons - Tennessee Ernie Ford
    1957- Bill Haley and the Comets arrived in London for their first British tour. Haley's popularity was already beginning to decline in North America, but he continued to tour regularly in Britain and Europe through the mid-1970's.
    1960 - No. 1 Billboard Pop Hit: ``Teen Angel,'' Mark Dinning. Dinning was surrounded by music from an early age: three of his sisters formed the group the Dinning Sisters (which had a top 10 song with the Oscar-winning ``Buttons and Bows'') and his baby-sitter was Patti Page. The song debuts at No. 100 on the Hot 100.
    1961 - The Shirelles finished their first week at #1 on the music charts with "Will You Love Me Tomorrow". The song spent two weeks at the top spot. It was the group’s first #1 song and the first #1 hit for the songwriter. She became a star in her own right, having many singles and albums in the 1970s. Her name was Carole King. 1972 - Bob Douglas became the first black man elected to the Basketball Hall of Fame in Springfield, MA. Douglas not only coached the New York Renaissance, an all-black team which won 88 consecutive games in 1933, he owned the team.
    1961-Two big influences of '60s pop make their debuts. Mary Wells' with "Bye Bye Baby" and Gene Pitney with "Love My Life Away." (1961)
    1963 -- Co-founder of Chess records, Leonard Chess, tells Billboard, "As it stands today, there's virtually no difference between rock & roll, pop & rhythm & blues. The music has completely overlapped."
http://www.ci.chi.il.us/Landmarks/C/Chess.html
    1964---Top Hits
I Want to Hold Your Hand - The Beatles
You Don’t Own Me - Leslie Gore
Out of Limits - The Marketts
Begging to You - Marty Robbins
    1966-- Petula Clark's "My Love" hits #1
    1966- Sergeant Barry Sadler's "Ballad of the Green Berets" entered the US charts on its way to number one. Released at the height of the Vietnam War, it became one of the fastest sellers in the modern record business. It climbed very quickly on the charts and stayed number one for 13 weeks. The song was originally recorded for distribution to American troops, but RCA had Sadler record it with a full complement of studio musicians. Sadler soon resumed his military career, and was not heard from again until 1978 when he was involved in the first of two well-publicized shooting incidents. He later suffered brain damage when he was shot during a robbery at his home in Guatemala.
    1966-Surf-rockers the Marketts enter the Hot 100 for the fifth and last time with the "Batman Theme." It reaches #17 in nine weeks on the charts.
    1967 -"The Smothers Brothers Comedy Hour" premieres on CBS (later ABC, NBC). The CBS show lasted until April 4, 1969 when it was cancelled by CBS
for being too controversial. The hour-long show strongly influenced television humor during the two years it aired. Tom and Dick, however, frequently found themselves at odds with the censors over material that would be considered tame today. Guests and cast members frequently knocked the Vietnam War and the Nixon Administration. Acts with antiwar protestors such as Harry Belafonte were often cut.
http://timstvshowcase.com/
http://www.tvparty.com/smothers2.html
http://www.smothersbrothers.com/
http://www.masonwilliams-online.com/careertvcom.html
http://www.partialobserver.com/ArticleDisplay.cfm?ArticleID=570
    1968- Dr. Benjamin Spock; William Sloan Coffin the chaplain of Yale University; novelist Mitchell Goodman; Michael Ferber, a graduate student at Harvard; and Marcus Raskin a peace activist are indicted on charges of conspiracy to encourage violations of the draft laws by a grand jury in Boston. The charges are the result of actions taken at a protest rally the previous October at the Lincoln Memorial. The four are convicted and Raskin acquitted on June 14th.
    1968-- The Beatles' album Yellow Submarine is certified gold
    1969--NOONAN, THOMAS P., JR.   Medal of Honor
Rank and organization: Lance Corporal, U.S. Marine Corps, Company G, 2d Battalion, 9th Marines, 3d Marine Division. Place and date: Near Vandergrift Combat Base, A Shau Valley, Republic of Vietnam, 5 February 1969. Entered service at: Brooklyn, N.Y. Born: 18 November 1943, Brooklyn, N.Y. Citation: For conspicuous gallantry and intrepidity at the risk of his life above and beyond the call of duty while serving as a fire team leader with Company G, in operations against the enemy in Quang Tri Province. Company G was directed to move from a position which they had been holding southeast of the Vandergrift Combat Base to an alternate location. As the marines commenced a slow and difficult descent down the side of the hill made extremely slippery by the heavy rains, the leading element came under a heavy fire from a North Vietnamese Army unit occupying well concealed positions in the rocky terrain. Four men were wounded, and repeated attempts to recover them failed because of the intense hostile fire. L/Cpl. Noonan moved from his position of relative security and, maneuvering down the treacherous slope to a location near the injured men, took cover behind some rocks. Shouting words of encouragement to the wounded men to restore their confidence, he dashed across the hazardous terrain and commenced dragging the most seriously wounded man away from the fire-swept area. Although wounded and knocked to the ground by an enemy round, L/Cpl. Noonan recovered rapidly and resumed dragging the man toward the marginal security of a rock. He was, however, mortally wounded before he could reach his destination. His heroic actions inspired his fellow marines to such aggressiveness that they initiated a spirited assault which forced the enemy soldiers to withdraw. L/Cpl. Noonan's indomitable courage, inspiring initiative, and selfless devotion to duty upheld the highest traditions of the Marine Corps and the U.S. Naval Service. He gallantly gave his life for his country.
    1969- - Bobby Brown of New Edition is born in Boston. After leaving the teen R&B group he has a string of solo hits, including the million-selling No. 1 song ``My Prerogative.'' He has a bit part in the film ``Ghostbusters II'' which features his million-selling song ``On Our Own.'' In 1992, he marries singer Whitney Houston. They
eventually divorce after a tumultuous marriage.
http://www.yesterdayland.com/popopedia/shows/music/mu1227.php
    1969-The Beatles "Yellow Submarine" album, the soundtrack to the animated film of that name, is awarded a gold record. The album contains only four previously unreleased Beatles songs: Harrison’s "It's All Too Much" and "Only a Northern Song" and Lennon and McCartney's "Hey Bulldog" and "All Together Now." (1969)
    1970 - No. 1 Billboard Pop Hit: ``Venus,'' The Shocking Blue. The song is the biggest-selling single from Holland.
    1972---Top Hits
American Pie - Don McLean
Let’s Stay Together - Al Green
Day After Day - Badfinger
One’s on the Way - Loretta Lynn
    1972- Paul Simon released his first solo single following his breakup with Art Garfunkel, "Mother and Child Reunion." Recorded in Jamaica, it reached number four on the Billboard Hot 100. The second hit off the record "Me and Julio Down by the Schoolyard," turns out to be one of quirkiest songs of the year. (1972)
    1972-Neil Young's "Heart Of Gold" is released.
    1973-Elton John's "Crocodile Rock" goes gold.
    1974--Patty Hearst is kidnapped at gunpoint.
    1975-North Vietnamese Gen. Van Tien Dung departs for South Vietnam to take command of communist forces in preparation for a new offensive. In December 1974, the North Vietnamese 7th Division and the newly formed 3rd Division attacked Phuoc Long Province, north of Saigon. This attack represented an escalation in the "cease-fire war" that started shortly after the Paris Peace Accords were signed in 1973. The North Vietnamese wanted to see how Saigon and Washington would react to a major attack so close to Saigon. President Richard Nixon and his successor, Gerald Ford, had promised to come to the aid of South Vietnam if the North Vietnamese launched a major new offensive. With Nixon's Watergate resignation and Ford facing an increasingly hostile Congress, Hanoi was essentially conducting a "test" attack to see if the United States would honor its commitment to Saigon. The attack was much more successful than the North Vietnamese anticipated: the South Vietnamese soldiers fought poorly and the United States did nothing. Emboldened by their success, the North Vietnamese decided to launch a major offensive against the South Vietnamese. "Campaign 275" began on March 1, 1975. The North Vietnamese forces quickly overran the South Vietnamese and the United States failed to provide the promised support. Saigon fell on April 30 and the South Vietnamese government officially surrendered.
    1976- Before a roaring crowd of fellow countrymen, Austrian Franz Kalmmer won the downhill ski race at the XIIth Winter Olympic Games at Innsbruck, Austria. Clad in bright yellow, Klammer electrified a worldwide television audience with his breathtaking run.
    1977-- Mary MacGregor's "Torn Between Two Lovers" hits #1
    1979-The Pointer Sisters' version of Bruce Springsteen's "Fire" turns gold the same month as it reaches #2.
    1980---Top Hits
Rock with You - Michael Jackson
Do that to Me One More Time - The Captain & Tennille
Coward of the County - Kenny Rogers
I’ll Be Coming Back for More - T.G. Sheppard
    1981 - Prime Minister Pierre Trudeau inducts Joni Mitchell into Canada's Juno Hall of Fame.
    1987 - For the first time, the Dow Jones industrial average closed above the 2,200-point mark, closing at 2201.49.
    1988 - a rare snow event occurred in southern Louisiana. 2 to 4 inches fell from East Baton Rouge parish to St. Tammany and Washington parish. This was the most snow in southern Louisiana since 1973.
    1988---Top Hits
Need You Tonight - INXS
Could’ve Been - Tiffany
Hazy Shade of Winter - Bangles
Wheels - Restless Heart
    1988-military strongman General Manuel Antonio Noriega and 16 associates on drug smuggling and money laundering charges. Noriega, the de facto dictator of Panama since 1983, was charged with smuggling marijuana into the United States, laundering millions of U.S. dollars, and assisting Colombia's Medellin drug cartel in trafficking cocaine to America. The Panamanian leader denied the charges and threatened expulsion of the 10,000 U.S. service personnel and their families stationed around the Panama Canal. In 1968 Noriega, then a first lieutenant in the Panamanian National Guard, played an important part in a coup that ousted President Arnulfo Arias and brought General Omar Torrijos to power. Early the next year, Torrijos rewarded Noriega for his loyalty by promoting him to lieutenant colonel and appointing him chief of military intelligence. In 1970, Noriega, who had first been approached by the Central Intelligence Agency (CIA) while a promising military student in the early 1960s, went on the payroll of the CIA. The United States used Noriega as a check against the left-leaning Torrijos and as an informer on Central American revolutionaries, the Colombian drug cartels, and communist Cuba, which Torrijos, though not a Marxist himself, admired and visited. Noriega, meanwhile, developed his G-2 intelligence agency into a feared secret police force and became involved in the drug trade. The U.S. government was aware of his drug trafficking, and in 1977 he was removed from the CIA payroll. However, in 1981, the United States organized and financed the anti-Sandinista Contras in Nicaragua, and Noriega was brought back into the CIA fold. For a salary of close to $200,000 a year, Noriega provided intelligence about the Sandinistas and Cubans to the Americans and aided the Contras in their drug-trafficking efforts. Noriega's criminal trial began in 1991, and he pleaded innocent. On April 9, 1992, he was found guilty on eight counts of drug trafficking, racketeering, and money laundering, marking the first time in history that a U.S. jury had convicted a foreign leader of criminal charges. He was sentenced to 40 years in federal prison.
    1991- Joni Mitchel inducted into the Canadian Hall of Fame.
http://www.jonimitchell.com/
    1993-President William Clinton signed legislation requiring companies with 50 or more employees ( and all government agencies) to allow employees to take up to 123 weeks unpaid leave in a 12-month period to deal with the birth or adoption of a child or to care for a relative with a serious health problem. The bill became effective August 5, 1993.
    1994-Avowed White supremacist Byron de le Beckwith is convicted of NACCP field representative Medger Evers' murder, more than thirty years, ending the lengthiest murder case in American history. Evers was gunned down in the driveway of his Jackson, Mississippi, home while his wife, Myrlie, and the couple's small children were inside waiting for their father. Beckwith, widely recognized as the killer, was prosecuted for murder in 1964. However, two all-white (and all-male) juries deadlocked and refused to convict Beckwith. A second trial held in the same year resulted in a hung jury. The matter was dropped when it appeared that a conviction would be impossible. Myrlie Evers became the national chairwoman of the NAACP and refused to give up, pressing authorities to re-open the case. In 1989, documents came to light showing that jurors were illegally screened. Prosecutor Bobby DeLaughter worked with Myrlie Evers to force another prosecution of Beckwith. After four years of legal maneuvering, they were finally successful. At the third trial they produced a riflescope from the murder weapon with Beckwith's fingerprints. Justice was finally achieved when Beckwith was convicted and given a life sentence by a racially diverse jury in 1994. The story was dramatized in Rob Reiner's movie, Ghosts of Mississippi. Beckwith appealed the conviction, claiming that he had not been granted a speedy trial as required by the Constitution. However, the appeals courts have rejected his argument.
http://www.arlingtoncemetery.com
http://www.galegroup.com/free_resources/bhm/bio/evers_m.htmm/mwevers.htm
    1996-Bank of America announced it would open a branch on America Online, allowing customers to bank on the Internet. Online banking and financial applications would become extremely successful in attracting customers.
    1996- General Motors launched a Web site with more than 16,000 pages and 98,000 links. GM's site would become one of the largest on the Web and eventually offered online car shopping.
    1996 -The great arctic outbreak of '96 began to wind down, but not before one more frigid morning. Raleigh-Durham, North Carolina dropped to zero degrees for its coldest February temperature on record. Lakeland and Orlando, Florida recorded subfreezing temperatures with 24 and 26 degrees, respectively. 10 below zero at Lynchburg, Virginia tied its all-time record low. Some of the coldest temperatures in 20 years for southern New England were experienced. Shrewsbury, Massachusetts recorded 23 below and Willimantic, Connecticut fell to 22 below.
    1999 - CityJazz, the new concert facility housing the Down Beat Jazz Hall of Fame celebrates its grand opening with the help of artists whose presence implies a blessing on the upscale venue. Trumpeter Maynard Ferguson, drummer Elvin Jones, clarinetist Artie Shaw, and pianists Horace Silver and Cecil Taylor, five of only 14 living members of the venerable jazz magazine's Hall of Fame, crowd on stage during the opening ceremonies.
    2006 - Seattle scored first late in the first quarter on Josh Brown's 47-yard field goal, a few plays after an offensive "pushing off" pass interference call against wide receiver Darrell Jackson nullified his 16-yard touchdown reception. Then with less than two minutes left in the first half, Steelers quarterback Ben Roethlisberger ran for a 1-yard sneak. The touchdown was reviewed automatically and upheld when replays were unable to provide visual evidence that the ball had not crossed the plane of the end zone line as ruled on the field. Pittsburgh took a 14–3 lead on their first drive in the second half with running back Willie Parker's Super Bowl record 75-yard touchdown run. Steelers cornerback Ike Taylor intercepted a Hasselbeck pass; Adding insult to injury, during the return Matt Hasselbeck was penalized for a low block call (crashing into an opponents legs), which NFL officials would acknowledge was incorrect during a May 2006 meeting between officials and Seahawks coaching staff. The NFL, however, supported the officiating decisions made on other Seahawks disputed calls. Antwaan Randle El capped off the game with a 43-yard touchdown pass to wide receiver Hines Ward on a fake reverse to give the Steelers a 21–10 edge. (Wikipedia)

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