As might be expected, all of the people interviewed who had know Lay before the Enron failure recalled him as a fine young man whose only goal was to excel. 

As I read the story, I could not help but think of A.E. Staley, dead since 1948.  It was a shame that Ken Lay never met A.E. Staley .  Don't feel bad if you have never heard of A.E. Staley.  It is ironic that he is not considered an example of one of the most forward-thinking business leaders of the 20^th Century.

While Lay was the apple of his teachers' eyes, Augustus Eugene Staley was considered an oaf by his teachers. Apparently he was large even as a youth near the turn of the century in North Carolina,   One of his teachers told him he was too stupid to succeed in anything and suggested that he use his size to enter manual labor.

As a result, Staley dropped out of school in the sixth grade

A.E. Staley's path soon  led to the streets of Baltimore, where he took a job selling corn starch to local groceries. He was a hard worker, and also was blessed with an ability to see beyond the immediate.  It occurred to him that he could make more money by selling the starch under his own label, so he began working from his meager apartment at night to repackage corn starch that he had bought wholesale into bags bearing his name. 

His hard work led to success, but it wasn't long before he realized that if he were to make his company grow, he needed a source of supply nearer to the commodity that made the product possible--corn. 

He was able to convince some investors to back his plan to buy a defunct corn processing plant in Decatur, IL, where he would produce his own product.  In this ability to attract investment, there is a similarity between Staley and Lay.

However, it appears that  Enron was built on inflated figures and contacts with powerful policy-makers in Washington, DC and state capitols, and finally upon the broken dreams and aspirations of the people who worked for it.  Staley was to rely upon hard work and foresight to build a company that made lasting contributions to the American way of life.

Consider these comparisons:

·         Although, Staley's company, which bore his last name, did not have unions, A.E. Staley promoted the formation of a Fellowship Club around 1918-1919, consisting of leaders elected by their fellow employees to represent their concerns to company management

·         Staley initiated an employee publication in 1919, The Staley Journal, to ensure that employees were kept up to date on company news

·         Staley initiated profit-sharing in the 1919-20 time frame for all employees.  Significantly, employees were kept informed of the trend of company sales and earnings (although admittedly not specific numbers for the privately held company), and, when sales looked like they were dropping, A.E. Staley personally advised employees in a mailing of company prospects. He urged employees to put savings away in anticipation of a business downturn.  Enron management, however,  not only told employees to invest more in the soon-to-be beleaguered Enron stock, but many of those same managers were apparently profiting from their options.

·         Staley was the father of the now Chicago Bears and significant in the founding of the National Football League.  He hired a young engineer from the University of Illinois, George Halas,  to start a football team for the enjoyment of employees.  When business soured in the early 1920s, Staley actually gave the team to Halas along with $3,000 in cash so he could make the move to Chicago.  Halas later recalled that 'Mr. Staley', as he and others called him, said that he (Mr. Staley) expressed his regret at not being able to continue to sponsor the team and did not want to leave Halas and team members in the lurch. 

·         When Staley realized that his corn processing plant needed a continuous reliable water supply, he worked with the government to build Lake Decatur, the first man-made lake of its kind in the country.  Today, it still provides recreation and a water supply for the community of approximately 80,000 people

·         In one of his biggest contributions, Staley believed that an little-known commodity called soybeans could provide new and valuable products.  The only problem was that farmers did not grow them.  So, A. E. Staley took a sample of soybeans and conducted a train whistle stop tour throughout Central Illinois in 1922 to show farmers what a soybean looked like.  He signed contracts on the spot, promising to purchase whatever beans the farmers would grow.  Enron does not have a whistle-stop experience, but has a new familiarity with  whistle-blowers.

·         When the Great Depression came along, A.E. Staley was distressed over the fact that many of his employees had not saved for the proverbial rainy day.  He solution was to spearhead the development of an employee credit union.  Enron, on the other hand, urged employees to continue to invest in Enron stock. 

·         During the Depression, A.E. Staley was faced with the prospect of cutting his work force.  Not only did he not do so, he actually reduced the number of hours people worked, kept their rates at the same level and thereby saved the jobs of his employees at a great personal and corporate expense.  Although it still has thousands of employees, Enron has let huge numbers of people go. 

Alas, the company formed by A.E. Staley was to eventually fall  victim to market forces and changing times. After A.E. Staley's death, the old styles of highly personal, family-owned businesses seemed too controlling to many people.  Today, the magnificent office building that was a Decatur landmark and the pride of A.E. Staley, has employees only on the bottom few floors.  Sadly, the circle drive that once invited visitors and suppliers to its front entrance, is blocked by a locked gate and all visitors much check in as a security point, the result of the city's troubled labor history. 

And even Staley's leadership position in the agribusiness industry and in its home town has been taken over by a former competitor, ADM, which has purchased the soy operations started by A.E. Staley and has moved its headquarters to the shores of the lake made possible by 'Mr. Staley.'

Still, the contributions made by this oafish boy, who was called dumb by his teachers remains as a living monument and affects people around the nation for the better every day.  Ken Lay's legacy is still being determined, but one can't help but feel that is a shame to see the loss caused to so many by the smartest boy in school and what he could have learned from a sixth-grade dropout.

(Daniel Hines is a former public relations manager with A.E. Staley Mfg. Co.)