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Arthur Lehman, No. 2 partner, son of Mayer (and brother of New York's Governor Herbert Lehman) is head of The Lehman Corp., an investment trust which the brothers founded in September 1929. He collects tapestries, heads Jewish charity drives, gave Lehman Hall (administration building) to Harvard in 1924, married Adele Lewisohn. Allan Lehman, grandson of Mayer and son of the late Sigmund Lehman, likes tennis, squash, fishing. From the Restigouche River in New Brunswick he sends home salmon to his friends, his acquaintances, his barber. Robert Lehman, grandson of Emanuel and son of Philip, married Ruth Owen Meeker, daughter of Ruth Bryan Owen, collects Italian primitives, plays occasionally on the Greentree and Sands Point polo teams with Tommy Hitchcock. John Milton Hancock, long-distance runner at the University of North Dakota, Wartime Naval Commander and supply-purchaser, hunts mountain sheep in British Columbia. He specializes in the affairs of Lehman Bros, clients such as Sears. Loose-Wiles, Jewel Tea, other national merchandise distributors. Mr. Hancock rehabilitated Jewel when the chainstore seemed headed for the rocks. Paul Mazur looks after department store clients—Gimbels, Hahn's, Associated Dry Goods. He wrote The Crisis and Some Ways Out (1931), other economic books and articles. William J. Hammerslough is head of the firm's investment advisory service. Monroe Gutman is the statistician and analyzer of corporate statements. To this group of conservative, capable, quiet bankers in 1934 went John Daniel Hertz, Chicagoan who collects race horses rather than Madonnas, who is a businessman, not a banker, who has been unsuccessful in business only in his two attempts to retire from it. Born in Austria, arriving in the U. S. at 4, he grew up to write sports for a Chicago newspaper, manage prizefighters, pick losers at racetracks, lose his job when his paper went into a merger. Then he became an automobile salesman with his sporting friends his best customers. He entered the taxicab business when he turned four old trade-ins into hacks. Cabstands were located at hotels, and cabmen paid hotel-operators large concessions. Mr. Hertz took his cabs away from the hotels, cruised them around the streets, painted them yellow, cut fares from 40¢ to 20¢ a mile. He organized additional Yellow Cab companies, at one time controlled 95% of U. S. cabs outside New York. He also went into the taxicab, bus and truck manufacturing business with the Yellow Cab Manufacturing Co. and started the Hertz Drivurself hired-car system. In 1925 he sold the manufacturing and Drivurself business to General Motors for $43,000,000, also disposed of his Yellow Cab holdings.
In 1931 he came back from his first retirement to handle finances of Paramount Publix. He slashed costs, reduced rentals, made executives turn in expense accounts. But he cut off so many heads and stepped on so many toes that in 1933 he resigned, reputedly over the question of John Hertz authority versus Adolph Zukor authority. The second retirement also failed to take, and in January 1934 he became a Lehman partner.