DOSSIER:THESECRETHISTORYOFARMANDHAMMER

byEdwardJayEpstein
ArmandHammerwasoneoftheodder,moreodiouscharactersofAmericanbusinessandpolitics,"famous"chieflybecausehewasrich
enoughtopromotehismammothego.HehasmethismatchininvestigativewriterEdwardJayEpstein,whoperformstheultimate
unmaskingofamanwhodeceived,evenbetrayed,hiscountry,hisfamilyandthehiredtoadieswhoposedashisfriends.
ThepublicpersonathatHammerpolished,atgreatexpense,wasthatofarenegadeoilmanwhomadebillionsfromLibyanoil,chummed
aroundwithpoliticiansuptoWhiteHouselevelandadornedacresofgallerieswithpaintings,somepriceless,othersfake.Hammer's
lawyersbedeviledhonestjournalistswhotriedtowriteotherwisewhilehewasalive,andtheymostlysucceeded.SteveWeinberg,authorofanearlier
criticalbiography,estimatedtomethathisBritishpublisherspent$2milliondefendingalibelsuititdiedwhenHammerdid,atage92,in1990.
Butnowthatthewretchisdead,let'sgetonwiththedeferredfun.ForMr.Epstein,thestoryactuallybeganin1981,whenheinterviewedHammer
fortheNewYorkTimesMagazine.Hammerputonthecharm,takingMr.Epsteintodinewiththepaper'spublisher,ArthurO."Punch"Sulzberger,and
treatinghimtosixmonthsoftravelaboardtheOxyOne,ownedbyhisOccidentalPetroleum.
UnfortunatelyforHammer,anotherofMr.Epstein'ssources,JamesJesusAngleton,headofcounterintelligencefortheCentralIntelligenceAgency,
whisperedatipaboutaSovietagentofinfluencewhomadefectoridentifiedas"TheCapitalistPrince."Mr.AngletonwouldnotaccuseHammer
directlybutsuggestedthat"anotherside"ofhisactivitiescouldbefoundindocumentsina1927raidonArcos,theSoviettrademissioninLondon.
Mr.Epstein'sTimesarticlesuggestedthatHammer'stradewiththeSovietUnionhelpedSovietinterests,includingespionage,buthehadnodirect
proof.Nowtheevidenceisathand,andindamningdetail,straightfromoldSovietarchives.Theaccountisofamanwhobribedandcheatedhisway
togreatwealth---andstartedwithSovietgold.
Hammercametocommunismlegitimately.Hisfather,Julius,aRussianimmigrant,linkedupwithVladimirLeninatasocialistconferenceinBerlinin1907
and"agreedtobecomepartoftheeliteundergroundcadrethatLeninwoulddependontochangetheworld."Aphysicianbytraining,Juliusbuilta
smalldrugchainintoAlliedDrugandChemical,purveyorofskincreamsandherbalmedicines.
WhentheBolsheviksseizedRussiain1919,JuliusworkedwithLudwigMartens,Lenin'sdefacto"ambassador"intheUnitedStates.JuliususedAllied,
ofwhichMartenswasthecoverthalf-owner,tolaundersalesproceedsofsmuggleddiamonds---moneythatfinancedarevolutionaryCommunist
LaborParty(CLP)dedicatedto"overthrowingthegovernment,expropriatingbanks,andestablishingaproletariandictatorship."JuliusheldcardNo.1.
TheCLPeventuallybecametheCommunistPartyUSAandpartoftheCommunistInternational(Comintern).

Onanotherlevel,JuliususedAlliedDrugtoshipequipmenttotheSovietUnionforwhichtheU.S.governmentrefusedexportlicenses.Juliuscertified
thattheshipmentswereboundforLatviainfact,theycontinuedontoRussia.TheSovietsweresopleasedwithJulius'servicesthattheyoffered
Alliedatradingconcessionthatstoodtoearnhimmillions.
Then,disaster.JuliusranasmallclinicinwhichyoungArmandworkedwhileattendingmedicalschool.In1919,thewifeofaczarist-eraRussian
diplomatwenttotheclinicforanabortionshediedthenextday.Juliuswouldnotdenythatanabortionhadbeenperformed,butheinsistedthatit
hadbeenmedicallyjustified.Ajudgedisagreedandsenthimofftothreeandonehalftotwelveyearsofhardlabor.Yearslater,ArmandHammer
confidedtoamistressthatthewrongHammerwenttojail,thatinfacthehadperformedthefataloperation.Juliushadreasonedthatalicensed
doctormightbeatthechargebutthatamedicalstudentstoodnochance.
Withhisfatherinjail,in1921ArmandtookovertheimportdealsandleftforMoscowonthefirstlegofanodysseythatwouldmakehim"oneofthe
greatconmenofthetwentiethcentury,"inMr.Epstein'swords.
Hammer'scoverstorywasthathehelpedfeedstarvingBolsheviks.Thiswasalie.TheSoviets,fromLeninondown,sawhimastheultimate"useful
tool"inbreakingtheSovietUnionoutofeconomicisolationandinprovidingaconduitthroughwhichMoscowcouldfinanceespionageandsubversion
abroad.Mr.EpsteintellsingrippingdetailhowtheSovietsusedthewillingHammerasafinancialerrandboy.
Lenin'sgrandschemewasto"advancetheimageofanon-threateningandpotentiallyprofitableSovietRussia."Leninreliedoncapitalistgreedto
makeU.S.GermanandBritishbusinessesvieforRussianconcessionsandtoforcetheirgovernmentstolifttraderestrictions.WhenoneofLenin's
aidesaskedwherehewouldobtaintheropewithwhichtohangthecapitalists,herepliedfamously,"They'llsupplyuswithit."
LeninusedHammerashisopeningpawninthiseconomicchessgame,offeringhimanabandonedasbestosmineinreturnforapromisetobringin
wheat.Everyoneconcernedrealizedtheminewasworthless,butitgavetheSovietsameanstotransfermoneytoCominternagents.Leninissued
ordersto"makenoteofArmandHammerandineverywayhelphimonmybehalfifheapplies."Therewereadmonitionstokeeptherelationshipsecret
lesttherebea"fataleffect"onHammer.
Expansionwasswift.HammerpersuadedautomakerHenryFordtomoveintotheSovietUniontodevelopthe"Fordson"tractor.Therewerefurdeals,
andaHammerpencilfactorywasgivenaSovietmonopoly.TheSovietspermittedHammersweetheartdealsonsalesabroadofpreciousczaristart.
(WhenHammerdepletedhisstockofFabergeeggs,noproblem:HecounterfeitedtheminNewYork.)
ThemostimportantelementwasAlliedDrug,whichactedastheSoviets'defactobankerintheUnitedStates,launderingmillionsofSovietdollars
throughshamtransactions.Hammereventuallymademillionsinsuchenterprisesasliquor,oilrefiningandart.Theconstantelement,accordingtoMr.
Epstein,wasbriberyandsharpdealing,includinghiscapstonedeal,theacquisitionofLibyanoilrightsforhisOccidentalPetroleumCo.
HammerneverdeceivedtheFBI'sJ.EdgarHoover,whoin1919begancreatingamassivefile,"61-280---ArmandHammer,InternalSecurity- - Russia,"scrawlingacrossthefront,"arottenbunch."HooverknewthatHammerfinancedCominternagentsbutdidnotmove,knowingthat"itis
oftenmoreprofitablenottoarrestadetectedcourier"whenthereisnoassurancethatthereplacementwillbedetected.
Hammerrecognizedtheutilityofbuyingpoliticians,andhereMr.Epsteinunderstatesoneofhisjuicierstories:howtheimpecuniousSenatorAlbert

GoreSr.gotthewealthtoenablehimtoliveinsplendorinWashington'sFairfaxHotelandtosendson,AlJr.,nowthevicepresident,tothepricey
St.Albansschool.
In1950,HammermadeMr.Gore"apartnerinacattle-breedingbusiness,fromwhichtheSenatormadeasubstantialprofit."Thereafter,Gorewas
Hammer'sdesignateddoor-openerinofficialWashington.WhenMr.Goreretired,HammermadehimpresidentofOccidental'scoaldivision,wherehe
"earnedmorethan$500,000ayear."
SonAlnextputthefamily'sSenateseatatHammer'sservice.Atthe1981inaugurationofRonaldReagan,JuniormanagedforHammertobeseatedin
asectionreservedforsenators.Hammerlurkedinthedoorway,hopingtoglad-handthepresident,butMr.Reaganbrushedbyhimwithoutaglance,
andwithreason.Yearsearlier,AlexandredeMarenches,theheadofFrenchintelligence,hadwarnedhimthatHammerwasaSoviet"agentof
influence."
IfHadeshasareadingroom,Ihope,forthesakeofvarioussoulswhoaredamnedtoshareeternitywiththissleazycharacter,thatitstocksMr.
Epstein'sbook.Arousingread!
source:
http://www.freerepublic.com/forum/a661957.htm

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