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.
Neclace purchased from Mesiter & Co. (Zurich)
1970 Post-bankruptcy stock certificate
Room key from the Baur au Lac Hotel (Zurich)
2002 – Owen T. Prell with the Baur au Lac room key