“Xerox Xerox Xerox Xerox,” from John Brooks’ Business Adventures

A friend recommended that I pick up Business Adventures by John Brooks. It’s a book made recently popular by Bill Gates, who borrowed his copy from his friend Warren Buffett.

Business Adventures is made up of 12 chapters, each of which was separately published as articles in the New Yorker. It covers topics like insider trading, stockholder meetings, an early Wall Street bailout, and more. The very first chapter I read was “Xerox Xerox Xerox Xerox,” which profiles the company that was so important to the city of Rochester, where I went to college. (The story mentions the university quite a few times.) The company was initially named Haloid, and it struggled to develop a product before it found major success.

Brooks’ storytelling is superb. Here are a few things from the chapter that resonated with me. And at the end of the post, I’ll share a few of my favorite sentences.

1. In 1964, the company spent a year’s advertising budget to underwrite a series of ads supporting the United Nations. The UN is well established now, so it’s easy to ignore, or not know at all, that its growth was a matter of major controversy. Xerox’s CEO justified the expenditure in high-minded terms: “World cooperation is our business, because without it there might be no world and no business.”

The company ran into a storm of opposition. Thousands of letters poured in to denounce Xerox. They didn’t all come from members of the John Birch Society, although most did: some purportedly came from the presidents of major companies, who threatened to remove all Xerox machines from their offices unless the ad series was canceled. The company declined to give in.

It does not seem self-evident that the responsibility for promoting world cooperation should fall so heavily on a company selling photocopiers. How often do major companies take stands on positions of genuine public controversy? And how often do they maintain these public positions when their customers expressly threaten to cancel business? It feels remarkably brave.

2. Here’s bravery of a more obvious sort: The company invested a great deal in R&D for the product, at a time when it wasn’t clear that a breakthrough was possible. No one else had figured out how to build a cheap, efficient xerography machine that could print on untreated paper. Developing the machine eventually became a do-or-die affair for the company. Several early employees really stuck their necks out, including forgoing a salary and mortgaging their houses to help with the research effort. They were duly rewarded, but they may well have all been ruined.

3. I’ve never quite realized how important Xerox was to the city and to the University of Rochester. It’s fun to read the profile of the company and recognize so many names I’ve seen around campus. Joseph C. Wilson was variously the chairman, chief executive, and president of the company; his name is on the main boulevard of the university and one of the three major dining halls. The school has named its science library after Chester Carlson, who developed one of the processes critical to xerography. I haven’t seen the names of Sol Linowitz (a chief deputy) and John Dessauer (a chief researcher) around, but I’m sure that their names adorn professorships or different parts of campus.

Someone once told me that the University of Rochester had a massive endowment in the ’60s, second only to Harvard’s. Now it all makes sense.  Before Xerox had its breakthrough, the university bought a huge number of shares out of concern for helping out a struggling local employer. When the company took off, the university’s position did as well. Alas it wasn’t so successful at managing the money. Rochester’s endowment is now around $2 billion, while Harvard’s is around $32 billion.

Xerox was important to the city, not just to the university. I remember reading a 1971 book that describes the city this way: “Rochester prides itself on being one of America’s cultural crown jewels; it has its libraries, school system, university, museums, and its well-known symphony.” That was the heyday of Kodak, Xerox, and Bausch & Lomb. But it wasn’t able to keep growing or maintain momentum; the city’s population has been in decline for the last few decades, stabilizing only in the last few years. Instead of being able to tout these multinational industrial giants, the city’s largest employers have become the University of Rochester (because of the hospital system) and Wegmans (a grocery chain).

4. I’d always thought it a little funny that Xerox’s name so resembled Kodak’s. It turns out that it was intentional of the upstart to copy Kodak’s near-palindrome. The decision to change the name to Xerox from Haloid ran into virulent opposition from the firm’s marketing consultants, who declared the name unpronounceable and to sound too much like “zero.”

The chapter is my favorite so far in the book. Others I’ve read don’t come close to being as interesting, though perhaps I say that only because it has personal resonance. At some points Brooks is a brilliant writer, but at other times I’m put off by his self-consciousness. Anyway, here are three of my favorite sentences, all from the Xerox chapter.

In a society that sociologists are forever characterizing as a “mass,” the notion of making one-of-a-kind things into many-of-a-kind things showed signs of becoming a real compulsion.

I sent a couple of afternoons with one 914 and its operator, and observed what seemed to be the closest relationship between a woman and a piece of office equipment that I have ever seen. A girl who uses a typewriter or a switchboard has no interest in the equipment, because it holds no mystery, while one who operates a computer is bored with it, because it is incomprehensible. But a 914 has distinct animal traits…

Xerox salesmen are forever trying to think of new uses for the company’s copiers, but they found again and again that the public is well ahead of them.

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