Never Stand Still

You know people have always wondered what CF would be like if they were still around. The answer is I don't know, but I think your right they would be big like FedEx big especially had they not spent them selves into oblivion.

 

I think Leeland James was an alright guy a real pioneer if you will, he was one of the men who built America really. The man had a vision and he set fourth to make that vision happen and didn't stop until things were top of the heap. From how the trucks were built to how things went the man had a vision and was a pioneer and idealist really who lived out his ideals. It wasn't until he was gone and into the 80s that CF started to become unglued.

CF did some goofy stuff in the 70s, but it really wasn't until the 1980s when they got off the rails.

 

I agree they were not paying attention to there core business at all, there actual trucking business the core business is hardly ever mentioned, however the book spends countless pages on CF Airfrieght.

 

Hey guys here we are again, here at CF Masterpiece Theater.

So let's begin.

In the hot summer of 1990s the White Bear was cruising a long the Gulf Island of British Columbia. As the boat neared the dock the captain picked up his phone and listened to his messages.

The captain was no other then former president of CF International and vice-chairman of the board Donald E. Moffitt. Who joined CF in 1955 as an accountant.

Moffitt was retired at this time from CF and also had retired from a regional trucking company based out of Indianapolis known as Circle Express. I can't find anything on Circle Express and never heard of them before, but there in the book and were real I guess.

Anyhow, Raymond O'Brien who was Moffitts old boss at CF called Moffitt and said "Please Call Me It's Important."

So Moffitt that Sunday June 17 1990 called O'Brien back to see what was going on.

O'Brien explained that Emery Air Freight had drained all of CF's money. CF had no more money and was defaulting on all there loans. CF was out of money and was stretched to the max on credit as there air freight company had almost bankrupt the entire machine and that Larry Scott couldn't get the mess straightened out.

Moffitt had a feeling things at CF were going down the tubes because many CF managers were writing him asking if he would consider employing them at Circle Express in Indianapolis and plus CF had been getting some bad press.

Moffitt had 3 decades of finance and accounting experience at CF so he was the right man for the job.

So that day Moffitt took off for CF's head quarters in San Fransico and Palo Alto.

When Moffitt got to Palo Alto, it was a grim situation.
CF was in the hole big time and the consulting team basically told CF you must take an $860 million dollar loan from us to pay your commercial paper debts that are coming due in 30 days. CF had to pay $85 million in fees for $860 million in loans. That $860 million in loans had to be the entire company or close to it.

The actual boring no frills LTL core trucking business it's self was profitable and turning a profit, but that darn Emery Air Freight just kept on taking CF to the cleaners.

CF was in a bad financial spot the board made Moffitt a deal to come back. Moffitt though did not want to work for Larry Scott, Scott could not handle the day to day running of the business or the financial crisis.

When Moffitt left CF in the middle end of the 1980s he left CF with 300 million dollars on the books. And summer of 1990 CF was about 3 seconds away from going bankrupt. Donald Moffitt I'm not even sure if he is alive anymore, he could have passed on by now Moffitt would be well into his late 80s or 90s by now, however I bet Larry Scott is still alive and around somewhere.

Anyhow Moffitt said he would come back to work if only he was allowed to report to the board directly and not to Larry Scott and the committee agreed.

 

As things grew worse at CF the company struggled to find financing. CF got in bed with a loan shark from New York by the name of Jimmy Lee. Lee was a swaggering Wallstreet Michael Douglas type with his cell phone and other gobeldy gook. Remember it was 1990 cell phones weren't like they are today.
Anyhow Jimmy Lee was some clown consultant CF hired to try to get a line of credit and financing out to them in order to get some money to not file for bankruptcy.

CF actually had 2billion dollars worth of rolling stock and physical assets, you know trucks, trailers, converter dollies. There air planes they leased, but they owned trucks and trailers.

Anyhow, Lee's group of vultures ascended on CF's headquarters, trouble was CF didn't know who to acquire a loan against there assets.

Apparently Lee's crew took over CF's Lindield Drive building and a CF Officer who was coming back from a trip asked a 25 year old who was sitting in his office feet on the desk talking on his phone to leave vacate his office. The 25 year old waived the CF executive off and said "Were running this company now!"

Moffitt was totally disgusted by this and while him and Larry Scott were enemies Moffitt put that aside and just felt plain sorry for Larry Scott. Scott and the CF "staff were not prepared to deal with this pack of wolves from New York."