Posted on 02/28/2009 7:49:58 AM PST by Publius
Synopsis
We meet Mr. Mowen of Amalgamated Switch and Signal of Connecticut, who needs training from Rearden’s men before he can handle Rearden Metal, all the while bleating about whether the metal is real or a fraud.
In Colorado, Dagny is having problems with the Rio Norte Line. Ben Nealy isn’t up to the job, and she and Hank have had to buy up bankrupt companies and shuttered plants to make the necessary equipment. Her chief engineer balks at reinforcing an ancient bridge with Rearden Metal.
Ellis Wyatt shows up and gives Dagny some good advice on upgrading the facilities for Nealy’s crew. Dagny takes Nealy into his work car and tells him what is to be done and how.
Hank Rearden arrives in his new car, a Hammond of Colorado, and his attitude toward Dagny is back to where it was when they were working together at his steel mill. They spar verbally, and Dagny is pleased at her emotions. Hank designs a new bridge of Rearden Metal on the spot with an estimated cost of less than half what her chief engineer has projected. He intends to confront the doubts about the safety of Rearden Metal by building an entire bridge out of it.
Hank is in Colorado looking for a copper mine because he doesn’t want to deal with Francisco. Hank and Dagny have a sense of accomplishment, but when Dagny asks Hank for a lift in his plane to New York, Hank tells her he is flying to Minnesota. When she shows up at the local airport and finds there are no flights out that day, she discovers that Rearden has taken off for New York after all.
Back in New York, Dagny and Jim go to a dinner and conference at the New York Business Council where Dagny is scheduled to speak about Rearden Metal. Jim is in a tizzy. The National Council of Metal Industries, headed by Orren Boyle, has condemned it as a threat to public safety. The union is not sure it wants its members to work with it. A convention of grade school teachers in New Mexico has passed a resolution that children should not be permitted to ride the Rio Norte Line because of it. As Jim complains, Dagny notices that every good, reliable piece of equipment on the streets of New York has originated in Colorado.
Dagny is furious to discover that Jim has tried to get Dan Conway to sell his railroad to Taggart Transcontinental; Jim’s rationale was to use Phoenix-Durango’s steel on the Rio Norte Line to avoid using Rearden Metal altogether. Jim wants to bid for Conway’s rail, but his looter friends at the National Alliance of Railroads are all attempting to get their own hands on it.
But it gets worse when Dagny discovers that she is there tonight to debate Bertram Scudder on nationwide radio on the topic, “Is Rearden Metal a lethal product of greed?” Dagny says the question is not debatable, and she jumps out of the car. She takes refuge in a diner in the shadow of a deserted ruin of an office building and orders coffee. An old bum gives Dagny a sermon on nihilism; in the middle of it the counter boy comments, “Who is John Galt?” Another bum tells Dagny yet another legend of Galt, this one about finding a fountain of youth and being unable to bring it back.
Dr. Potter of the State Science Institute sits in Hank Rearden’s office and asks him not to upset the economy by introducing Rearden Metal. Hank is not bothered by the disapproval of his metal by the Institute. Potter believes that if the metal is not a physical danger, it’s a social danger to the country. He offers to buy the rights to the metal from Rearden for a lot of government money to keep it off the market. Rearden refuses, and Potter issues a veiled threat about Rearden needing friends in politics and government.
Mr. Mowen bails from the project and refuses to make any more switches of Rearden Metal because too many people don’t like it.
Dagny discovers from Eddie Willlers that the State Science Institute has warned people against using Rearden Metal but has not really said why. Taggart stock has crashed, Nealy has quit and the union won’t let its members work with the metal.
Dagny visits the Institute in New Hampshire to meet with Dr. Robert Stadler, once the head of the Physics Department at Patrick Henry University and one of the nation’s leading scientists. Stadler has not even read the Institute’s report on Rearden Metal. He knows that there is nothing wrong with it but says that there are other “non scientific” factors. He is concerned that the Institute, with all its government funding, has not been able to come up with anything useful. But Rearden did, and that makes the Institute look bad. The survival of the Institute is more important than the survival of Hank Rearden.
Stadler tells Dagny of the three star students he and Hugh Akston shared at Patrick Henry University. One star was Francisco, the other was Ragnar Danneskjøld – and the third was a man who is probably a second assistant bookkeeper somewhere. (No spoilers please!)
Dagny finds a boozed-up Jim hiding at the old Taggart estate on the Hudson. Jim has been using his pull in DC, first to get the government to seize Dan Conway’s railroad, and then to convince the Alliance to let Conway run his line for another year. But Conway has refused. Dagny tells him she is going to start her own company and build the Rio Norte Line for Taggart Transcontinental on a turnkey basis. Eddie Willers will take over Operations. Dagny will call her company the John Galt Line.
But Francisco will not help fund the line, nor will he tell Dagny why. But he hints that her premises are wrong and that she must reach the correct conclusion herself. When Dagny suggests that she crawl, Francisco comes over to her and tenderly kisses her hand. Realizing he has given away too much, he puts on the act of a cad. He is horrified to discover that Dagny is going to name the line after John Galt, and he tells her that Galt will come to claim it.
Dagny meets with Hank to confirm the orders for the John Galt Line. The financiers are the Colorado industrialists whom the line will serve. Even Ken Danagger of the Pennsylvania coal company is in, and Hank signs on. Wyatt and Danagger have already agreed to purchase Rearden Metal simply because of the State Science Institute’s partial condemnation of it. Stockton Foundry of Colorado is going to finish the switches that Mowen wouldn’t make. The union won’t try to stop the line because there are so few union jobs available.
While Dagny reads the structural specifications for the bridge, Hank indulges in a violent sexual fantasy about her.
An Atlantic Southern freight train carrying copper for the Rearden mills slams into a passenger train in New Mexico, and the railroad can’t do anything but make excuses. Hank puts together a rescue effort that gets the copper moving again, although Hank decides to move his ore in the future via Taggart Transcontinental.
In the middle of all this, Hank’s mother shows up at the mill and asks him to give his brother Philip a job that he doesn’t deserve. Hank effectively throws her out.
Hank now tries to find some steel for the Ward Harvester Company of Minnesota, but he is interrupted by the news that the National Legislature had enacted the Equalization of Opportunity Bill. Wesley Mouch is nowhere to be found.
Hank suddenly comes up with a new design for the rail bridge. He calls Dagny in Colorado and tells her about his new design, which will outperform any bridge ever built and cost no more than a culvert. There is a hint that Dagny has broken into tears.
The State Science Institute
Rand knew about the National Science Foundation, headquartered in Arlington, VA, because it had been founded by an act of Congress in 1950. Every year it funds about ten thousand grants for research and development. It performs no actual research but acts as a clearinghouse for grants.
Rand’s State Science Institute, headquartered in New Hampshire, is a research and development facility; her model is the Department of Agriculture’s laboratory system. These facilities engage in pure research and occasionally come up with something useful. (I worked at one such lab over 40 years ago.) But the State Science Institute has not been able to come up with anything useful, and it views Rearden Metal – or anything created by the private sector – as a threat to its existence. Bureaucracies are terribly protective of their turf.
Some Discussion Topics
Just so!
All the above posts were interesting. One additional thought about the calendar-
It's significant that the calendar is mounted on the skyscraper, a product of mans effort. In a way, it's being claimed by the looters. Analogous to planting a flag on a mountain peak.
Excellent! I hadn’t thought of that.
I am glad only one chapter per week. Got busy at work and now in catch up mode re-reading AS!
I’ve been thinking about your response about shrugging. Like you, I believe AS is not to be taken literally, but is an illustration of ideas. When you see the markets collapsing as they have been, you have to think why. When you see the price of hard commodities like gold and silver rising, you know what is happening. The traders are moving their money to something solid and tangible. I’m not an expert on economics, but I know you don’t chase good money after bad. A few of those guys on the trading floors have probably read AS, and they are reacting.
So we all have to look at our individual situation an evaluate what is the appropriate action.
Mister Publius! Please add me to your ping list for the book club. I’m all caught up on the threads and am just a little ahead in the book.
Great discussion happening.
Forms of government explained…
This video explains:
Why what most of us are taught about right and leftist
governments is wrong
Why libs honestly think that to be too conservative is to be leaning towards Nazism and why this is not correct
Why most long lasting government s were Republics
What the Founding Fathers said about Democracies vs. Republics
Why 0Bama is trying to get us in an Oligarchy
http://www.wimp.com/thegovernment
I'm playing catch up because I had some things going on when the reading began, and I'm going through these threads as I progress.
But I had to stop and comment about "the slide" because of my personal involvement in the rebuilding project. It was a huge undertaking and many contractors had crews working 24/7 at the site for the better part of a year in all kinds of weather. It was so big a project it actually had a significant positive impact on the heavy construction segment of the Northwest's economy, delaying the effect of the current recession here, adding millions to the gross sales in 2008 for several major businesses in Oregon and Washington. Indeed, work goes on in that project to this day, reshaping and stabilizing the mountainside to prevent a repeat event. In the peak of the work I was sending a truckload of equipment parts to the project every day and was hunting down and ordering extra product from all over the world to maintain the fleet. But it was almost the only work my guys and I had for the first half of 2008.
You guys made the fictional Atlantic Southern look like a bunch of amateurs.
Seems like a lot to spend most of a year cleaning up half a mile of track, but it had the side of a mountain on it. And every time a swath was cut through the debris, more would fall in from uphill to fill the gap, and that continued until the whole landslide, close to a square mile, was hauled away. Then terraces had to be cut and retaining walls built, and replacement soil and vegetation put in place before the next wet season began in earnest.
And in all that nobody was seriously hurt, one pickup truck was wrecked, and one small unoccupied utility vehicle was crushed by a falling boulder during a blasting operation. Good fun for the crew on site though, since both wrecked rigs were the personal rides for the owner of the main contractor, they got to yuk it up over those events without guilt.
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