Ferdinand Eberstadt
Encyclopedia
Ferdinand A. Eberstadt was an American
lawyer
, investment banker, and an important policy advisor to the United States government who was instrumental in the creation of the National Security Council
.
in 1913. After serving overseas in World War I
, he set up a law practice in New York City
, providing legal services to members of the Wall Street
financial community. In 1923 he joined the prominent investment-banking firm of Dillon, Read & Co.
where he earned wide respect for helping with the financing for the firm's 1925 acquisition and ultimate 1928 sale of Dodge Brothers Automobile Company
to the Chrysler Corporation. Recognized for his negotiating skills in financial matters, Eberstadt was invited by the Hoover administration
to participate in the 1929 World War I reparations conference
in Paris
as an assistant to Owen D. Young.
As an investment banker, Ferdinand Eberstadt was a key player in the efforts to restore confidence in the business community following the Wall Street Crash of 1929
by putting together restructuring packages for small business. In 1931, he set up F. Eberstadt & Co, his own investment firm that dealt in the securities of a medium-sized businesses. Near the end of the decade, Eberstadt created the Chemical Fund that proved instrumental in getting investors to see mutual fund
s as a sound investment vehicle. As well, he helped pioneer the leveraged buyout
technique and his success made him one of the most respected financiers in the United States.
In September 1942, Donald M. Nelson
, the former vice-president of Sears Roebuck, and Chairman of the United States War Production Board
(WPB) called upon the skills of Ferdinand Eberstadt, appointing him Chairman of the Army and Navy Munitions Board and Vice Chairman of the War Productions Board. Eberstadt developed the organizational structure known as the "Controlled Materials Plan" that allowed the armed forces to prioritize their needs that in turn allowed the private sector to prioritize its production to meet the military's needs.
At the end of the War, on behalf of Secretary of the Navy
, James V. Forrestal, Eberstadt wrote what became known as the Eberstadt Report
that identified a serious lack of coordination between the Central Intelligence Agency
, the Federal Bureau of Investigation
, the State Department
, and the military intelligence
services. His Report led to the creation of the National Security Council. In 1946, Eberstadt served as assistant to Bernard M. Baruch on the United Nations Atomic Energy Commission
. In 1948, he prepared a Report on the operations of the National Security Resources Board and the following year was named Chairman of the Commission on National Security Organization for the Hoover Commission
.
Eberstadt maintained a residence in New York City but in 1927 purchased an 80 acres (323,748.8 m²) estate on the peninsula at Lloyd's Neck on the north shore of Long Island
called Target Rock Farm. It would become known for the magnificent gardens Eberstadt created. In 1967 he donated this property to the Federal government under the Migratory Bird Conservation Act
. Today, it is known as the Target Rock National Wildlife Refuge
and is operated by the United States Fish and Wildlife Service
. It is open to the public. The donated land was to be the formal legal basis that halted the proposed construction of a nuclear power plant
by the Long Island Lighting Company
in 1970.
Eberstadt died as a result of cardiac problems at the Walter Reed Army Medical Center
in Washington, D.C.
in 1969.
Among his grandchildren is the writer Fernanda Eberstadt
.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
lawyer
Lawyer
A lawyer, according to Black's Law Dictionary, is "a person learned in the law; as an attorney, counsel or solicitor; a person who is practicing law." Law is the system of rules of conduct established by the sovereign government of a society to correct wrongs, maintain the stability of political...
, investment banker, and an important policy advisor to the United States government who was instrumental in the creation of the National Security Council
United States National Security Council
The White House National Security Council in the United States is the principal forum used by the President of the United States for considering national security and foreign policy matters with his senior national security advisors and Cabinet officials and is part of the Executive Office of the...
.
Biography
Ferdinand Eberstadt graduated from Princeton UniversityPrinceton University
Princeton University is a private research university located in Princeton, New Jersey, United States. The school is one of the eight universities of the Ivy League, and is one of the nine Colonial Colleges founded before the American Revolution....
in 1913. After serving overseas in World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
, he set up a law practice in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, providing legal services to members of the Wall Street
Wall Street
Wall Street refers to the financial district of New York City, named after and centered on the eight-block-long street running from Broadway to South Street on the East River in Lower Manhattan. Over time, the term has become a metonym for the financial markets of the United States as a whole, or...
financial community. In 1923 he joined the prominent investment-banking firm of Dillon, Read & Co.
Dillon, Read & Co.
Dillon, Read & Co. was a prominent American investment bank from the 1920s into the 1960s.-Origins:Dillon Read traces its roots to 1832 with the founding of the Wall Street brokerage firm Carpenter & Vermilye. This firm was succeeded by Read & Company in which chief principal was William A. Read. ...
where he earned wide respect for helping with the financing for the firm's 1925 acquisition and ultimate 1928 sale of Dodge Brothers Automobile Company
Dodge
Dodge is a United States-based brand of automobiles, minivans, and sport utility vehicles, manufactured and marketed by Chrysler Group LLC in more than 60 different countries and territories worldwide....
to the Chrysler Corporation. Recognized for his negotiating skills in financial matters, Eberstadt was invited by the Hoover administration
Herbert Hoover
Herbert Clark Hoover was the 31st President of the United States . Hoover was originally a professional mining engineer and author. As the United States Secretary of Commerce in the 1920s under Presidents Warren Harding and Calvin Coolidge, he promoted partnerships between government and business...
to participate in the 1929 World War I reparations conference
World War I reparations
World War I reparations refers to the payments and transfers of property and equipment that Germany was forced to make under the Treaty of Versailles following its defeat during World War I...
in Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
as an assistant to Owen D. Young.
As an investment banker, Ferdinand Eberstadt was a key player in the efforts to restore confidence in the business community following the Wall Street Crash of 1929
Wall Street Crash of 1929
The Wall Street Crash of 1929 , also known as the Great Crash, and the Stock Market Crash of 1929, was the most devastating stock market crash in the history of the United States, taking into consideration the full extent and duration of its fallout...
by putting together restructuring packages for small business. In 1931, he set up F. Eberstadt & Co, his own investment firm that dealt in the securities of a medium-sized businesses. Near the end of the decade, Eberstadt created the Chemical Fund that proved instrumental in getting investors to see mutual fund
Mutual fund
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.- Overview :...
s as a sound investment vehicle. As well, he helped pioneer the leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
technique and his success made him one of the most respected financiers in the United States.
In September 1942, Donald M. Nelson
Donald M. Nelson
Donald Marr Nelson was an American business executive and public servant, serving as the executive vice president of Sears Roebuck before accepting the position of director of priorities of the United States Office of Production Management . In 1942 Nelson became chairman of the War Production...
, the former vice-president of Sears Roebuck, and Chairman of the United States War Production Board
War Production Board
The War Production Board was established as a government agency on January 16, 1942 by executive order of Franklin D. Roosevelt.The purpose of the board was to regulate the production and allocation of materials and fuel during World War II in the United States...
(WPB) called upon the skills of Ferdinand Eberstadt, appointing him Chairman of the Army and Navy Munitions Board and Vice Chairman of the War Productions Board. Eberstadt developed the organizational structure known as the "Controlled Materials Plan" that allowed the armed forces to prioritize their needs that in turn allowed the private sector to prioritize its production to meet the military's needs.
At the end of the War, on behalf of Secretary of the Navy
United States Secretary of the Navy
The Secretary of the Navy of the United States of America is the head of the Department of the Navy, a component organization of the Department of Defense...
, James V. Forrestal, Eberstadt wrote what became known as the Eberstadt Report
Eberstadt Report
The Eberstadt Report, officially known as the Task Force Report on National Security Organization, was a study conducted by the United States government which evaluated the structure and operations of the United States Department of Defense and United States Intelligence Community...
that identified a serious lack of coordination between the Central Intelligence Agency
Central Intelligence Agency
The Central Intelligence Agency is a civilian intelligence agency of the United States government. It is an executive agency and reports directly to the Director of National Intelligence, responsible for providing national security intelligence assessment to senior United States policymakers...
, the Federal Bureau of Investigation
Federal Bureau of Investigation
The Federal Bureau of Investigation is an agency of the United States Department of Justice that serves as both a federal criminal investigative body and an internal intelligence agency . The FBI has investigative jurisdiction over violations of more than 200 categories of federal crime...
, the State Department
United States Department of State
The United States Department of State , is the United States federal executive department responsible for international relations of the United States, equivalent to the foreign ministries of other countries...
, and the military intelligence
Military intelligence
Military intelligence is a military discipline that exploits a number of information collection and analysis approaches to provide guidance and direction to commanders in support of their decisions....
services. His Report led to the creation of the National Security Council. In 1946, Eberstadt served as assistant to Bernard M. Baruch on the United Nations Atomic Energy Commission
United Nations Atomic Energy Commission
The United Nations Atomic Energy Commission was founded on 24 January 1946 by Resolution 1 of the United Nations General Assembly "to deal with the problems raised by the discovery of atomic energy."...
. In 1948, he prepared a Report on the operations of the National Security Resources Board and the following year was named Chairman of the Commission on National Security Organization for the Hoover Commission
Hoover Commission
The Hoover Commission, officially named the Commission on Organization of the Executive Branch of the Government, was a body appointed by President Harry S. Truman in 1947 to recommend administrative changes in the Federal Government of the United States...
.
Eberstadt maintained a residence in New York City but in 1927 purchased an 80 acres (323,748.8 m²) estate on the peninsula at Lloyd's Neck on the north shore of Long Island
Long Island
Long Island is an island located in the southeast part of the U.S. state of New York, just east of Manhattan. Stretching northeast into the Atlantic Ocean, Long Island contains four counties, two of which are boroughs of New York City , and two of which are mainly suburban...
called Target Rock Farm. It would become known for the magnificent gardens Eberstadt created. In 1967 he donated this property to the Federal government under the Migratory Bird Conservation Act
Migratory Bird Conservation Act
The Migratory Bird Conservation Act of February 18, 1929, created the United States Migratory Bird Conservation Commission to consider and approve any areas of land and/or water recommended by the Secretary of the Interior for purchase or rental by the U.S...
. Today, it is known as the Target Rock National Wildlife Refuge
Target Rock National Wildlife Refuge
The Target Rock National Wildlife Refuge is located just east of the village of Lloyd Harbor, New York, on the north shore of Long Island, east of New York City....
and is operated by the United States Fish and Wildlife Service
United States Fish and Wildlife Service
The United States Fish and Wildlife Service is a federal government agency within the United States Department of the Interior dedicated to the management of fish, wildlife, and natural habitats...
. It is open to the public. The donated land was to be the formal legal basis that halted the proposed construction of a nuclear power plant
Nuclear power plant
A nuclear power plant is a thermal power station in which the heat source is one or more nuclear reactors. As in a conventional thermal power station the heat is used to generate steam which drives a steam turbine connected to a generator which produces electricity.Nuclear power plants are usually...
by the Long Island Lighting Company
Long Island Lighting Company
The Long Island Lighting Company, or LILCO [ "lil-co" ], was an electrical power company and natural gas utility for the communities of Long Island, New York, serving 2.7 million people in Nassau, Suffolk and Queens Counties....
in 1970.
Eberstadt died as a result of cardiac problems at the Walter Reed Army Medical Center
Walter Reed Army Medical Center
The Walter Reed Army Medical Center was the United States Army's flagship medical center until 2011. Located on 113 acres in Washington, D.C., it served more than 150,000 active and retired personnel from all branches of the military...
in Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
in 1969.
Among his grandchildren is the writer Fernanda Eberstadt
Fernanda Eberstadt
Fernanda Eberstadt is an American writer.-Early life:She is the daughter of two patrons of New York City's avant-garde, Frederick Eberstadt, a photographer and psychotherapist, and Isabel Eberstadt, a writer...
.