Untold Story of the Survival of the Penn Central by Donald Prell - HTML preview

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About-face and Rewards

 

Around 8:30 the next morning I was surprised to  receive a phone call from Doctor Lauder. “Mr. Prell, would  you please come to my office, about ten o’clock?”

 

“Of course, I will certainly be there,” And before leaving  for my appointment I remembered to give Owen my Diner’s  Card with the admonition not to spend too much.

 

Today I had planned to try a different strategy; to visit  Schneider, the other holdout, and find out if he would accept  a payoff. His acceptance might then have allowed me to  attempt one more stab at additional pressure on the good  Doctor. I still had time to try doing that, but first I was  curious to see what Lauder wanted. Fully expecting a last  ‘flea in my ear’ about the Penn Central I was unprepared for  a shock.

 

“Mr. Prell, I will sign your damn documents, and be done  with it. Do you have them with you?”

 

“Yes, right here” I said, “and . . . and I do thank you, Dr.  Lauder.”

 

From my brief case I quickly extracted the agreement  forms. “Shall we discuss the details regarding the financial  arrangements?”

 

Lauder hadn’t changed his demeanor, “Mr. Prell, I don’t  want anything including any warrants. I just want to be rid  of the Penn Central. I shall never again deal with Pressprich  or any other who was involved in all this. Now, please take  your papers and be gone.”

 

“But sir – the exchange notes and warrants will be sent to  you by Schroders Bank. And I have no doubt you will not  only be repaid, but you will be able to make a profit on the  warrants too.”

 

“As I have repeatedly told you, you can keep it all, I simply  want to wash my hands of the whole affair. Not enough I am  cheated and lied to – now my wife is accusing me of being  rude to you and your son last night! I tell you, I have had  enough.”

 

With a world-weary sigh, and rather resentfully, he  continued, “Go see Herr Schneider. Here is his address. He  is expecting you. He will sign your papers and you may pay  him something if you wish. Thank you for hosting us at  dinner. It was a pleasure meeting you and your son. Und  Auf Wiedersehen, Mr. Prell.”

 

His obvious eagerness to see me gone was readily matched  by my own to do likewise. Once outside it was but a short  cab ride to reach Schneider’s office. With remarkable brevity  he agreed – for a small sum – to sign the agreements. I told  him I would return that afternoon with the funds, then he  would deliver the papers to me.

 

Elated, I decided to walk back to the hotel. The notes  wouldn’t be called; the Penn Central Company would be  saved. Should I tell my wife first? Immediately report back  to Harry Volk, to Lloyd Cutler, to my contact at Schroders  Bank? What if Herr Schneider changed his mind this  afternoon? No, better to wait until I had all of the signed  agreements in hand.

 

Owen was talking to the concierge when I walked into the  lobby. As we proceeded upstairs together he showed me one  of the old-fashioned heavy keys to a Baur au Lac room that  the Concierge has just given him as a present.

 

“Dad,” he told me, “several rooms have been merged, so  one door was eliminated. He gave me this key to remember  my visit here. He’s been so nice, I’d like to give him  something when we leave.”

 

“That, Owen, you will do. But first, tell me how your  shopping trip with Frau Lauder went.”

 

“Great,” he said, “You won’t believe the gift I bought  Mom.”

 

Back in our suite he went off and returned with a large  jeweler’s box. Inside was a magnificent eighteen-inch  braided gold necklace interspersed with rectangles of gold- flecked lapis lazuli. Noting the name on the box I knew this  was no insignificant bauble and was curious, not to say  anxious, about the cost. Yet it was lovely.

 

“Frau Lauder took me to several places on the  Bahnhoffstrasse, but the one called Meister was best. They  showed me lots of stuff but I really liked this. What do you  think, Dad?”

 

“Well … if Dr. Lauder had not signed the agreements, I  think you would be returning this to Meister tomorrow. But  since he did, then you can give it to your mother when we  return to London.”

 

Owen laughed, “You mean he really did okay your deal?”  “He did, and I don’t know what I would have done without  you because it was you who managed to pull it off! Now let’s  have lunch. I must go out again this afternoon to finalize  things.”

 

Amazing how easy it was to withdraw the funds from the  bank with just a simple number. At Herr Schneider’s office I  obtained his signature on the agreements in exchange for the  cash. And finally, I delivered to Schroders Bank the two sets  of signed agreements. It was still only Wednesday,  December the 29th, and with any luck Owen and I would be  back in London by Thursday morning. Fait accompli. Now  to all those telephone calls.

 

The aftermath is well known and documented --- The  Penn Central Company did retire the restructured notes, and  the warrants became worth a bundle. Yet no one ever  inquired what happened to the remaining funds in the  numbered account in the Swiss bank. There is a temptation  on my part, to concoct an intriguing and even sinister story.  Or I could report they were returned to the Board of the  Penn Central Company. The strange truth remains, after  more than thirty-plus years, I simply can’t remember what  happened to the balance of the money (if there was any and  if I ever did know?).

 

Our son is now a successful attorney in San Francisco,  Cornell Law School graduate, and an editor of his law  Review. Each time he sees his mother wear the necklace  (which she loved, of course) he reminds her of how it was  acquired; and to whom it should someday be passed.

 

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Neclace purchased from Mesiter & Co. (Zurich)

 

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1970 Post-bankruptcy stock certificate

 

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Room key from the Baur au Lac Hotel (Zurich)

 

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2002 – Owen T. Prell with the Baur au Lac room key