and from an interview of the author of a full length biography of Barrow, Dan Levitt
By 1932, after paying $125,000 for minor leaguers Lyn Lary and Jimmie Reese, neither of whom turned into stars, the success of the Cardinals minor league operation, and changes to the player limit and option rules, the Yankees recognized that they needed to develop a farm system. Following the acquisition of the Newark International League franchise, the club hired another future Hall of Fame executive, George Weiss, to run it. Barrow actually wanted to hire Bob Connery of the St. Paul Saints with whom the Yankees had a long relationship, but Ruppert insisted on Weiss.
In the 1930s the onset of the Depression led to new rules regarding the ownership of minor league franchises. With these revised, more favorable rules in place, owner Jacob Ruppert demanded Barrow start a farm system. Barrow quickly developed the best minor league organization in the league while his scouts redirected their efforts to nation's best amateurs to stock it.