TRADE: In Mr. Whalen's Image

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A $1,600,000 loan made by 16 Manhattan banks started the corporate wheels moving. Then Stockbroker Richard Whitney, now of Sing Sing, a man of no mean financial daring, took over as chairman of the Bond Sales Committee, set out to sell $27,829,500 in 4% fair debentures. But by February 1937 only $20,000,000 of the bonds had been sold and Grover Whalen had to pull a high-pressure stunt out of his black fedora. With the greatest of ease Maestro Whalen invented the Terrace Club, purportedly swank dining & wining place on the fair grounds, with a membership restricted to those who would subscribe to $5,000 of fair bonds. Even so, banks had to absorb the final $3,500,000 worth.

These bonds, plus $12,000,000 in pre-fair revenues, represents the actual stake of the corporation in the venture. On this promotional outlay, much of which is likely to be recovered, the businessmen of New York may well reap a good return.

Another $26,700,000 came from the New York City Government and $6,200,000 from the State. To get this fat participation, President Whalen contracted to give them any profits that might remain after bondholders were paid off. And when the fair is over, the reclaimed-dump site, including four of the fair buildings, will revert to the city as a park half again as large as Manhattan's famed Central Park and valued in the grandiloquent Whalen fashion at $100,000,000. New York State and City thus are guaranteed a certain tangible return on their money.

The Federal Government's $3,505,000 contribution is little more than a gift, with some slight value as good-will advertising. All told, other States came through with only $2,000,000—which they may hope to get back in the form of extra summer visitors.

Foreign nations put up $31,000,000 for buildings alone, sent $100,000,000 worth of exhibits to fill them. This was the first of Whalen's big coups. When he went to Europe he found that all the major nations except Russia belonged to the International Bureau of Expositions. When the Bureau decided on only a limited participation in the fair, President Whalen blandly returned to Manhattan, presently announced that Russia would build a $4,000,000 pavilion. Unwilling to play second fiddle in any swing session of propaganda, the other nations promptly upped their appropriations. In the event of war or peace this might be money well spent on improving public relations, attracting tourists or increasing exports.

Grover Whalen had no difficulty selling $17,500,000 worth of concessions. But wooing exhibitors was harder work. Nonetheless, he managed to land $30,000,000 worth of entries. When the automobile tycoons hung back, he played General Motors, Ford and Chrysler off against each other so skilfully that he wound up with lavish exhibits from all three. While Heinz held out for a pickle-shaped building, Grover Whalen signed up so many other food exhibitors that Heinz was finally glad to accept half of another, more prosaic building.