21, 1998.
The hog market crisis raced forward faster . . . could respond: Dean Watson, Hall, interviews by author, 2016; Purina Mills, SEC Filing, form 10-12G, section 2, “Financial Restructuring Developments,” March 23, 2000.
Brad Hall was dispatched from Wichita to St. Louis: Hall, interviews by author, 2013–16; Purina Mills, SEC Filing, form 10-12G, “Management Discussion and Analysis,” March 23, 2000.
Charles Koch was just returning his full attention: Leslie Wayne, “Zero Is the Verdict in $2 Billion Koch Family Feud,” New York Times, June 20, 1998.
Most people . . . have never seen him get angry: Cris Franklin, Markel, Paulson, Hall, interviews by author, 2013–16.
When Brad Hall explained what was happening: Hall, interviews by author, 2016.
Watson was in Wisconsin: Watson, interviews by author, 2016.
There was only one way that Purina Mills might survive: Sumner, Hall, interviews by author, 2016.
“True knowledge results in effective action”: Boulton, “Koch and His Empire.”
In late August of 1999 . . . no extra money from Wichita: Purina Mills, SEC Filing, form 8-K, November 9, 1999, 22.
Koch appeared to have . . . protected it from the bankers’ claims: Koch’s use of the corporate veil as a financing structure was first discussed with the author by two sources requesting anonymity; both sources were directly involved with Koch Industries’ financial activity and strategies. Koch’s use of the corporate veil was confirmed by a third source, a financier working for a bank that lent Koch money for the Purina Mills acquisition who also requested anonymity. Also Purina Mills, SEC Filing, form 8-K, November 9, 1999, 27–28, 102–3.
Lawyers working for the banks . . . first hurdles of a lawsuit: Source directly involved in the matter, background interview by author, 2016.
Koch finally agreed to pay $60 million: “Purina Mills: Tentative Agreement for $60 Million from Parent,” Troubled Company Reporter, November 12, 1999.
After the banks were paid off, Charles Koch began to dismantle: Hall, interviews by author, 2016; “Economic Downturn Leads to Layoffs at Koch Industries,” Associated Press, April 13, 1999.
CHAPTER 10: THE FAILURE
Charles Koch drove himself to work every day: Charles Koch’s habit of driving his own car to work every day, and arriving very early, was described by several current and former Koch Industries employees, many of them making a special note of it because his car was in the employee parking lot before they arrived. His habits later changed, as noted in ch. 20.
The previous decade had been a public embarrassment: See endnotes, chs. 1–9.
This mattered to Charles . . . company’s conduct: Charles Koch deposition with US Senate investigators, transcript, April 24, 1989.
Charles Koch said . . . difficult times of his life: Charles Koch, interview by author, 2015.
Charles Koch was in a position to see the seeds of strength: The following passage summarizes the strengths of Koch Industries based on reporting outlined in endnotes for chs. 1–9.
“I just work harder”: Charles Koch, interview by author, 2015.
CHAPTER 11: RISE OF THE TEXANS
Over the course . . . reinvented Koch Industries: Details about Koch Industries’ strategic overhaul effort after the debacles of the 1990s were provided to the author by a source with direct knowledge of events who requested anonymity. Many granular details of the overhaul were included after being confirmed by external sources—Charles Koch’s decision to fire many company presidents, for example, created an external footprint of news releases announcing personnel changes. Broad outlines of the overhaul were also confirmed on the record by senior sources at Koch such as Brad Hall and F. Lynn Markel. (Markel left during the transition but witnessed its aftereffects.)
The revolution began with a purge: “Koch Industries Names New Vice Chairman, President; New President Only Fourth in Company’s History,” BusinessWire, August 3, 1999; Corliss Nelson, biography and work history, Ryder System; Mike Sutten, biography and work history, Royal Caribbean Cruises; Rex Clevinger, biography and work history, Reliant Energy; Jim Imbler, announcement of replacement by David Robertson, January 24, 2000; Seth Vance, executive profile, Bloomberg; Pedro Haas, departure announcement, Kosa, July 24, 2000; Markel, LinkedIn profile, interview by author, 2016.
The change in personnel was only the beginning: Source with direct knowledge of events speaking on background to author, 2016.
This change . . . ushered in a decade of unprecedented growth: See endnotes, chs. 11–17; Leonard, “The New Koch.”
During this decade . . . impervious strength of its corporate veil: The use of the corporate veil strategy was first revealed to the author by a source with direct knowledge of Koch’s legal and financial strategies. It was later confirmed by a second senior source