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The Walt Disney Company – 2013
Forest R. David
A. Case Abstract
The Walt Disney Company is an entertainment company with worldwide operations. Disney’s two
largest segments are Media Networks and Parks and Recreation. Media Networks consists of ABC,
ESPN, Disney films, newly acquired Lucusfilms, 35 radio stations, among others. Parks and
Recreation includes the world famous Disney theme parks and the more recent Disney cruise line.
Disney has theme parks in the USA, France, China, and Hong Kong. In addition, Disney operates
three other divisions: Studio Entertainment, Consumer Products, and Interactive Media. The
Interactive Media segment (aimed around smartphone game apps) has been struggling, recently
reporting a net loss for calendar 2012. Headquartered in Burbank, California, Disney reported
revenues of over $42 billion in 2012, up 3 percent from the previous year.
(proposed)
To offer the best family entertainment in the world through theme parks, cruises, movies, and radio
and television coverage of news and sporting events globally.
(proposed)
We are on a mission everyday to serve customers young and old (1) with outstanding family
entertainment. By offering popular theme parks and Disney TV programming to our newly acquired
ABC, ESPN, and cruise lines (2), we provide well-diversified family entertainment (5) worldwide (3).
We utilize many Disney characters such as Mickey Mouse and Donald Duck (7) to excite customers
globally. We produce apps for smartphones throughout Interactive Media division (4). We give back
generously to our communities (6) and offer many internships for deserving college students (8).
Everything we do at Disney could is possible because of our great employees (9) and fans worldwide.
1. Customers
2. Products or services
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3. Markets
4. Technology
5. Concern for survival, growth, and profitability
6. Philosophy
7. Self-concept
8. Concern for public image
9. Concern for employees
D. External Audit
Opportunities
Threats
1. College conference realignments allow conferences to exit TV contracts and sign new more
lucrative TV contracts.
2. Disney competes directly with NBC Universal, Paramount Pictures, and CBS for TV
entertainment and sports.
3. Carnival Cruise Line reported revenues of $15.38 billion compared to Disney Parks and Resorts
revenue of $12.9 billion in 2012.
4. There are many competing theme parks across the USA and world with most having lower prices
than Disney.
5. Piracy in the Film and Music Industry.
6. Strikes in professional sports could severely impact revenues for ABC and ESPN.
7. U.S. consumer spending on DVDs was down about 20% in 2010 from 2009, to $7.8 billion. That
was 43% below a 2006 peak of $13.7 billion
8. Unemployment and gas prices both remain high around the world.
9. Universal Studios, Island of Adventure, and Wizarding World of Harry Potter has reported an
increase of 1.725 million in attendance over the past year.
10. People in the developed world are having fewer children and waiting later in life to have kids.
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Competitive Profile Matrix
Critical Success Factors Weight Rating Score Rating Score Rating Score
Differentiation 0.10 4 0.40 3 0.30 2 0.20
Market Penetration 0.08 4 0.32 3 0.24 1 0.08
Revenues 0.08 4 0.32 1 0.08 2 0.16
Income 0.10 4 0.40 2 0.20 1 0.10
Movie Titles 0.08 4 0.32 2 0.16 1 0.08
Cruise Ships Market Share 0.08 2 0.16 1 0.08 4 0.32
Reliance on Disposable Income 0.08 2 0.16 4 0.32 1 0.08
Product Quality 0.06 4 0.24 2 0.12 3 0.18
TV Market Share 0.12 4 0.48 3 0.36 1 0.12
Brand Awareness 0.07 4 0.28 3 0.21 2 0.14
Goodwill Impairment 0.05 1 0.05 2 0.10 3 0.15
Net Worth 0.10 4 0.40 3 0.30 2 0.20
Totals 1.00 3.53 2.47 1.81
Disney is substantially better than either CBS or Carnival, being more diversified and having
substantially more revenues.
EFE Matrix
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Threats Weight Rating Weighted Score
1. College conference realignments allow conferences to exit TV
0.05 3 0.15
contracts and sign new more lucrative TV contracts.
2. Disney competes directly with NBC Universal, Paramount
0.11 3 0.33
Pictures, and CBS for TV entertainment and sports.
3. Carnival Cruise Line reported revenues of 15.38 billion compared
0.06 3 0.18
to Disney Parks and Resorts revenue of 12.9 billion in 2012.
4. There are many competing theme parks spread across the USA
0.07 2 0.14
and world with most having lower prices than Disney.
5. Piracy in the Film and Music Industry. 0.08 3 0.24
6. Strikes in professional sports could severely impact revenues for
0.03 3 0.09
ABC and ESPN.
7. U.S. consumer spending on DVDs was down about 20% in 2010
from 2009, to $7.8 billion. That was 43% below a 2006 peak of 0.04 2 0.08
$13.7 billion.
8. Unemployment and gas prices both remain high around the
0.03 4 0.12
world.
9. Universal Studios, Island of Adventure, and Wizarding World of
Harry Potter has reported an increase of 1.725 million in 0.06 3 0.18
attendance over the past year.
10. People in the developed world are having fewer children and
0.06 2 0.12
waiting later in life to have kids.
TOTALS 1.00 2.72
E. Internal Audit
Strengths
1. Disney owns ABC, ESPN, Walt Disney Studios, and Pixar among other media outlets.
2. Disney owns theme parks in the USA, Japan, France, and Hong Kong. The firm also owns Disney
Cruise Line.
3. Net income rose 18% in fiscal 2012.
4. Media Networks segment accounted for 45% of 2012 revenues and 67% of income.
5. Parks and Resorts segment accounted for 31% of 2012 revenues and 15% of income.
6. Studio Entertainment produces Spider-man, The Fantastic Four, X-Men. This segment experienced
revenues declining 8% and income increasing 17% in 2012.
7. Disney channels worldwide consist of 94 kids channels; Disney’s profit margin ratio (12.40) is almost
half the industry’s (22.40). Family entertainment channels available in 169 nations and 33 languages.
8. Out of the top 25 amusement/theme parks worldwide, Disney holds 11 of the spots with 8 of them
being in the top 10.
9. Debt to Equity ratio of 0.4 suggests Disney is using debt to finance at an appropriate level while
revenues have increased for 9 of the last 10 years.
10. ESPN agreed to $15.2 billion, 8-year contract, with NFL “Monday Night Football.”
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Weaknesses
1. Interactive Media, which delivers games to smartphones, has reported negative net income for each of
the last three years.
2. The firm has over $25 billion in goodwill accounting for 1/3 of total assets.
3. The firm has $2.5 billion of works-in-progress and is attempting to manage the building of the new
park in Shanghai, and integrating the new acquisition of Lucasfilm.
4. The firm’s revenue/employee is roughly half that of the industry average.
5. Theme park attendance increased only 3% in 2012, and 1% in 2011; revenues generated from
international theme parks are lagging substantially behind domestic theme parks.
6. Walt Disney currently only has 4 cruise ships.
7. Disney’s gross margin is 21% with the industry average being 31%.
8. Disneyland Paris saw operating income decrease by 25%.
9. Disney DVD market down 25% in unit sales.
10. Many of Disney’s parks traditional attractions have not received meaningful upgrades in decades.
Liquidity Ratios
Debt/Equity Ratio 0.4 0.56 1.11
Current Ratio 1.1 1.4 1.4
Quick Ratio 1 1.2 1
Profitability Ratios
Return On Equity 14.9 14.98 22.69
Return On Assets 8.3 7.6 7.6
Return On Capital 10.3 9.4 10
Efficiency Ratios
Income/Employee 39,066 77,063 125,200
Revenue/Employee 263,645 553,013 1.04 Mil
Receivable Turnover 6.5 5.7 13.9
Inventory Turnover 23.7 15.5 13.3
Asset Turnover 0.6 0.5 0.8
Disney is doing well financially on all the ratios presented above. The only area where Disney lags the
industry average is on revenue/employee which is half that of the industry average.
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Net Worth Analysis (in millions)
Using methods 3 and 4, Disney is worth nearly four times CBS. However, using method one which takes
into account goodwill and intangibles, CBS is worth over twice Disney.
IFE Matrix
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Weaknesses Weight Rating Weighted Score
1. Interactive Media segment which delivers games to smart
phones has reported negative net income for each of the last 0.03 2 0.06
three years.
2. The firm has over $25 billion in goodwill accounting for 1/3 of
0.04 1 0.04
total assets.
3. The firm has $2.5 billion of works in progress and is attempting
to manage the building of the new park in Shanghai and 0.04 2 0.08
facilitating the new acquisition of Lucasfilm for over $4billion.
4. The firm’s revenue/employee is roughly half that of the industry
0.02 1 0.02
average.
5. Theme park attendance increased only 3% in 2012, and 1% in
2011. With revenues generated from international theme parks 0.04 1 0.04
lagging substantially behind domestic theme parks.
6. Walt Disney currently only has 4 cruise ships. 0.04 2 0.08
7. Disney’s gross margin is 21% with the industry average being
0.05 2 0.10
31%.
8. Disneyland Paris saw operating income decrease by 25%. 0.04 1 0.04
9. Disney DVD market down 25% in unit sales. 0.04 1 0.04
10. Many of Disney’s parks traditional attractions have not received
0.08 1 0.08
meaningful upgrades in decades.
TOTALS 1.00 2.85
Disney is performing better than average on internal issues with an IFE score of 2.85. Disney is
capitalizing well on their strengths; however, several weaknesses are major in particular the $25 billion in
goodwill and the lack of upgrading many of the parks traditional attractions.
F. SWOT
SO Strategies
1. Build a new theme park in Houston, Texas by 2015 for $1 billion (S2, S3, S5, S9, O2, O4).
2. Sign an exclusive 10-year contract to cover the new college football playoff starting in 2014 for $1
billion (S1, S3, S4, S9, S10, O2, O8, O10).
3. Add an additional 5 cruise ships to the fleet at a cost of $600 million each (S2, S9, O2, O3).
WO Strategies
1. Add an additional 5 cruise ships to the fleet at a cost of $600 million each (W6, O2, O3).
2. Partner with Netflix to better provide on demand movies for customers (W7, W9, O7, O8).
ST Strategies
1. Sign a 10-year deal with the ACC to broadcast their games on ESPN and ABC for $1 billion (S1, S10,
T1).
2. Add an additional 5 cruise ships to the fleet at a cost of $600 million each (S2, S9, T3).
WT Strategies
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1. Spend $1 billion to upgrade traditional attractions at Disney parks world wide (W5, W10, T3, T4, T9).
2. Spend $1 billion to develop a new parks at existing park locations targeted at people without children
living at home (W5, W6, W8, W10,T10)
G. SPACE Matrix
FP
Conservative Aggressive
7
2 X = 2.4
Y = 1.6
1
CP IP
-7 -6 -5 -4 -3 -2 -1 1 2 3 4 5 6 7
-1
-2
-3
-4
-5
-6
-7
Defensive Competitive
SP
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Disney is well positioned in the Aggressive Quadrant and perhaps should add a theme park in Texas and expand its
fleet of cruise boats.
Quadrant II Quadrant I
Weak Strong
Competitive Competitive
Position Position
Disney is in a strong competitive position, but the overall market is experiencing modest growth. Taking
advantage of the growing trend of people watching sporting events from home, Disney’s ESPN/ABC
branch should form further contracts with the SEC, ACC and NFL for the rights to broadcast these events.
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The Total IFE Weighted Scores
Strong Average Weak
4.0 to 3.0 2.99 to 2.0 1.99 to 1.0
4.0 I II III
High
3.0 IV V VI
Disney
The
EFE 2
Total Medium
Weighted
Scores
3 4
Low
1.0
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J. QSPM
Focus on
Upgrade and Media, in
Build New Particular
Theme Parks Sports
Broadcasting
Opportunities Weight AS TAS AS TAS
1. There has been a 5.8% increase in amusement park attendance
0.04 4 0.16 1 0.04
worldwide.
2. The United States is expected to see a 10% increase in
0.04 2 0.08 3 0.12
population growth over the next 10 years.
3. Recent issues with Carnival Cruise ships mechanical
malfunctions are leaving many customers looking for a new 0.04 0 0.00 0 0.00
cruise line.
4. Texas has a population of over 26 million, is half way between
Disney parks in California and Florida and an easy drive from 0.05 4 0.20 1 0.05
Mexico.
5. 3D Box Office films are up 40% from 4 years ago. 0.05 1 0.05 2 0.10
6. Mobile app market games have seen over 3 billion downloads
and games can be brought to market in half the time it takes to 0.03 0 0.00 0 0.00
provide for a console system.
7. Online movie rentals are up 41% in 2012. 0.05 1 0.05 2 0.10
8. People are increasingly spending more time at home watching
0.03 1 0.03 2 0.06
larger screen TVs.
9. Increasing use of smart phones with over 50% of the population
0.03 0 0.00 0 0.00
in Europe and the USA owning a smart phone.
10. The new college football playoff TV rights are available for
0.05 1 0.05 4 0.20
bidding.
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Threats Weight AS TAS AS TAS
1. College conference realignments allow conferences to exit TV
0.05 1 0.05 4 0.20
contracts and sign new more lucrative TV contracts.
2. Disney competes directly with NBC Universal, Paramount
0.11 1 0.11 3 0.33
Pictures, and CBS for TV entertainment and sports.
3. Carnival Cruise Line reported revenues of 15.38 billion compared
0.06 0 0.00 0 0.00
to Disney Parks and Resorts revenue of 12.9 billion in 2012.
4. There are many competing theme parks spread across the USA
0.07 4 0.28 1 0.07
and world with most having lower prices than Disney.
5. Piracy in the Film and Music Industry. 0.08 1 0.08 2 0.16
6. Strikes in professional sports could severely impact revenues for
0.03 1 0.03 4 0.12
ABC and ESPN.
7. U.S. consumer spending on DVDs was down about 20% in 2010
from 2009, to $7.8 billion. That was 43% below a 2006 peak of 0.04 1 0.04 2 0.08
$13.7 billion.
8. Unemployment and gas prices both remain high around the
0.03 0 0.00 0 0.00
world.
9. Universal Studios, Island of Adventure, and Wizarding World of
Harry Potter has reported an increase of 1.725 million in 0.06 4 0.24 1 0.06
attendance over the past year.
10. People in the developed world are having fewer children and
0.06 0 0.00 0 0.00
waiting later in life to have kids.
Focus on
Upgrade and Media, in
Build New Particular
Theme Parks Sports
Broadcasting
Strengths Weight AS TAS AS TAS
1. Disney owns ABC, ESPN, Walt Disney Studios, and Pixar among
0.09 1 0.09 4 0.36
other media outlets.
2. Disney owns the Walt Disney Theme parks in the USA, Japan,
0.05 3 0.15 1 0.05
France, and Hong Kong. The firm also owns Disney Cruise Line.
3. Net income rose 18% in fiscal 2012. 0.07 3 0.21 2 0.14
4. Media Networks segment accounted for 45% of 2012 revenues
0.05 1 0.05 3 0.15
and 67% of income.
5. Parks and Resorts segment accounted for 31% of 2012 revenues
0.05 4 0.20 1 0.05
and 15% of income.
6. Studio Entertainment produces Spider-man, The Fantastic Four,
X-Men. This segment experienced revenues declining 8% and 0.05 1 0.05 2 0.10
income increasing 17% in 2012.
7. Disney channels world wide consists of 94 kids and Disney’s
0.05 1 0.05 2 0.10
profit margin ratio (12.40) is almost half of the industry’s (22.40).
8. Out of the top 25 amusement/theme parks worldwide, Walt
0.05 4 0.20 1 0.05
Disney holds 11 of the spots with 8 of them being in the top 10.
9. Debt to Equity ratio of 0.4 suggesting Disney is using debt to
finance at an appropriate level while revenues have increased for 0.06 3 0.18 2 0.12
9 of the last 10 years.
10. ESPN agreed to $15.2 billion, 8-year contract, with NFL “Monday
0.06 1 0.06 4 0.24
Night Football.”
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Weaknesses Weight AS TAS AS TAS
1. Interactive Media segment which delivers games to smart
phones has reported negative net income for each of the last 0.03 0 0.00 0 0.00
three years.
2. The firm has over $25 billion in goodwill accounting for 1/3 of
0.04 0 0.00 0 0.00
total assets.
3. The firm has $2.5 billion of works in progress and is attempting
to manage the building of the new park in Shanghai and 0.04 0 0.00 0 0.00
facilitating the new acquisition of Lucasfilm for over $4billion.
4. The firm’s revenue/employee is roughly half that of the industry
0.02 0 0.00 0 0.00
average.
5. Theme park attendance increased only 3% in 2012, and 1% in
2011. With revenues generated from international theme parks 0.04 4 0.16 1 0.04
lagging substantially behind domestic theme parks.
6. Walt Disney currently only has 4 cruise ships. 0.04 0 0.00 0 0.00
7. Disney’s gross margin is 21% with the industry average being
0.05 0 0.00 0 0.00
31%.
8. Disneyland Paris saw operating income decrease by 25%. 0.04 3 0.12 1 0.04
9. Disney DVD market down 25% in unit sales. 0.04 0 0.00 0 0.00
10. Many of Disney’s parks traditional attractions have not received
meaningful upgrades in decades. 0.08 4 0.32 1 0.08
Both strategies of the QPSM are equally attractive for Disney. With the capital resources Disney has at
their disposal, building a new Disney park in Houston, Texas, upgrading all existing Disney parks, and
working to solidify contracts for both college and pro sports are all equally attractive alternatives – and
perhaps could be implemented simultaneously.
K. Recommendations
1. Build a new theme park in Houston, Texas by 2015 for $1 billion.
2. Sign an exclusive 10 year contract to cover the new college football playoff starting in 2014 for $1
billion.
3. Add an additional 5 cruise ships to the fleet at a cost of $600 million each.
4. Partner with Netflix to better provide on demand movies for customers for $10 million.
5. Sign a 10 year deal with the ACC to broadcast their games on ESPN and ABC for $1 billion.
6. Spend $1 billion to upgrade traditional attractions at Disney parks worldwide.
7. Spend $1 billion to develop new parks at existing park locations targeted at people without children
living at home.
L. EPS/EBIT Analysis (in millions expect for EPS and Share Price)
Amount Needed: $8,000M
Stock Price: $64.30
Shares Outstanding: 1,800
Interest Rate: 3%
Tax Rate: 33%
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Common Stock Financing Debt Financing
Recession Normal Boom Recession Normal Boom
EBIT $8,000 $10,000 $12,000 $8,000 $10,000 $12,000
Interest 0 0 0 240 240 240
EBT 8,000 10,000 12,000 7,760 9,760 11,760
Taxes 2,640 3,300 3,960 2,561 3,221 3,881
EAT 5,360 6,700 8,040 5,199 6,539 7,879
# Shares 1,924 1,924 1,924 1,800 1,800 1,800
EPS 2.79 3.48 4.18 2.89 3.63 4.38
The EPS/EBIT Analysis reveals that debt financing is more attractive for Disney under all economic
conditions.
M. Epilogue
In mid-2013, Disney raised its one-day theme park ticket prices at both its California and Florida theme
parks. A one-day pass to see Disney's Magic Kingdom went from $89 to $95. Tickets to see Disney’s
other three Florida parks increased to $90. The increased Disney prices came right after SeaWorld (NYSE:
SEAS) and Comcast’s (NASDAQ: CMCSK) Universal Orlando increased their ticket prices.
California Adventure recently completed a $1.1 billion expansion and led the world’s largest theme parks
with a 23 percent surge in visitors to 7.78 million in 2012. Attendance during 2012 at the top 25 theme
parks worldwide increased 5.2 percent to 205.9 million visitors. However, just down the road, Disney’s
California Disneyland was the only park among the world’s largest to register fewer visitors in 2012, with
attendance shrinking 1.1 percent to 16 million.
Disney’s net income increased 32 percent to $1.51 billion in its Q2 of 2013, in part due to higher
attendance. For its Q2 of 2013, Disney reported revenue of $10.4 billion, down from $11.3 billion the prior
quarter.
Disney owns 80 percent of ESPN, and ESPN is the most profitable of all Disney properties. ESPN is
available in over 100 million American homes, approximately 1/3 of the USA population. ESPN recently
cut 300 to 400 jobs too lower costs, but at the same time acquired the rights to show U.S. Open Tennis
matches, and is beginning a new channel for SEC Football.
14
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beginnings and one Creator. It was left to his followers to carry out
his principles, as they thought, by eliminating the Creator, and
reducing the four beginnings to one. If you think that all this rests on
well ascertained facts, I have nothing to say except to express my
surprise that some men of great learning and undoubted honesty are
not so positive as to these facts as you are. But with the exception of a
Creator, that is, a subjective Author of the universe, all this is really
outside my special province, and I could afford to be silent. Only
when Darwin maintains the transition from some highly developed
animal into a human being, I say, Stop! Here the student of language
has a word to say, and I say that language is something that, even in
its most rudimentary form, puts an impassable barrier between beast
and man.”
Soon after, when I had been asked to give a new course of lectures
at the Royal Institution, I had selected this very point, the barrier
which language forms between man and brute, for my subject, and as
Darwin’s “Descent of Man” was then occupying the thoughts of
philosophers, I promised to give a course of lectures on “Darwin’s
Philosophy of Language.” Entertaining, as I did, a sincere admiration
for Darwin, I felt that it would have been even discourteous to
attempt to be courteous to such a man by passing over in silence
what he had said on language. This kind of courtesy is most offensive
to a true man of science. Otherwise nothing would have been easier
than to find antagonists for my purpose, beginning with Epicurus
and ending with Mr. H. Wedgwood’s “Etymological Dictionary of the
English Language” (second edition, 1872). It so happened that the
author of that dictionary was a friend of Darwin’s, and had easily
persuaded him that interjections and imitations of natural sounds
formed the material elements of all human speech, and that, as
certain animals barked, and mocking birds and parrots imitated
sounds which they heard, there seemed to be no reason whatever
why animals in a few millions of years should not have invented a
language of their own. This naturally fell in with Darwin’s own views
and wishes, and though he always spoke with great reserve on the
subject of language, yet he would have been more than human if he
had surrendered his conviction of the descent of man from some
kind of animal on account of this, as his friend had assured him, so
easily removable barrier of language. Given a sufficient number of
years, he thought, and why should not bow-wow and pooh-pooh
have evolved into “I bark” and “I despise”? The fact that no animal
had ever evolved such words could not be denied, but it could be
ignored, or explained away by evidence clearly showing that animals
communicated with each other; as if to communicate were the same
as to speak. My object in my lectures (published at the time in
Longman’s Magazine) was to show that no such transition from
pooh-pooh to I despise is possible; nay, that even the first step, the
formation of roots, that is, of general concepts out of single sounds,
that is, single percepts, is beyond the power of any animal, except the
human animal. Even now it is only the human baby or puppy that
can learn to imitate human language, and what is the mere learning
of a language, compared with the creation of language, which was the
real task of those human animals that became men? In all the
arguments which I used in support of my theory—a theory no longer
controverted, I believe, by any competent and independent scholar
and thinker—I never used a single disrespectful word about Mr.
Darwin. But for all that I was supposed to have blasphemed, again
not by Mr. Darwin himself, but by those who called themselves his
bulldogs. I was actually suspected of having written that notorious
article in The Quarterly Review which gave such just offence to
Darwin. Darwin himself was above all this, and I have his letter in
which he writes, 5th January, 1875:—
I have just read the few first pages of your article in The Contemporary Review,
and I hope that you will permit me to say that neither I, nor my son, ever supposed
that you were the author of the review in the Quarterly. You are about the last man
in England to whom I should have attributed such a review. I know it was written
by Mr. M., and the utterly false and base statements contained in it are worthy of
the man.
But what was better still, Mr. Darwin gave me an opportunity of
discussing the facts and arguments which stood between him and me
in a personal interview. Sir John Lubbock took me to see the old
philosopher at his place, Down, Beckenham, Kent, and there are few
episodes in my life which I value more. I need not describe the
simplicity of his house, and the grandeur of the man who had lived
and worked in it for so many years. Darwin gave me a hearty
welcome, showed me his garden and his flowers, and then took me
into his study, and standing leaning against his desk began to
examine me. He said at once that personally he was quite ignorant of
the science of language, and had taken his facts and opinions chiefly
from his friend, Mr. Wedgwood. I had been warned that Darwin
could not carry on a serious discussion for more than about ten
minutes or a quarter of an hour, as it always brought on his life-long
complaint of sickness. I therefore put before him in the shortest way
possible the difficulties which prevented me from accepting the
theory of animals forming a language out of interjections and sounds
of nature. I laid stress on the fact that no animal, except the human
animal, had ever made a step towards generalisation of percepts, and
towards roots, the real elements of all languages, as signs of such
generalised percepts, and I gave him a few illustrations of how our
words for one to ten, for father, mother, sun and moon had really
and historically been evolved. That man thus formed a real anomaly
in the growth of the animal kingdom, as conceived by him, I fully
admitted; but it was impossible for me to ignore facts, and language
in its true meaning has always been to my mind a fact that could not
be wiped away by argument, as little as the Himalayas could be
wiped away with a silk handkerchief even in millions of years. He
listened most attentively without making any objections, but before
he shook hands and left me, he said in the kindest way, “You are a
dangerous man.” I ventured to reply, “There can be no danger in our
search for truth,” and he left the room.
He was exactly the man I had imagined, massive in his forehead,
kind in his smile, and hardly bent under the burden of his knowledge
or the burden of his years. I must give one more of his letters,
because my late friend Romanes, who saw it in my album, seems to
have entirely misapprehended its meaning. He saw in it a proof of
Mr. Darwin’s extraordinary humility. I do not deny his humility, it
was extraordinary, and, what is more, it was genuine. All great men
know how little they know in comparison with what they do not
know. They are humble, they do not only wish to appear so. But I see
in Darwin’s letter far more of humour than of humility. I see him
chuckling while he wrote it, and though I value it as a treasure, I
never looked upon it as a trophy.
Down, Beckenham, Kent,
15th Oct., 1875.
My Dear Sir,
I am greatly obliged to you for so kindly sending me your essay, which I am sure
will interest me much. With respect to our differences, though some of your
remarks have been rather stinging, they have all been made so gracefully, I declare
that I am like the man in the story who boasted that he had been soundly
horsewhipped by a Duke.