Armand Hammer

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Lore & Background

Armand Hammer was born in New York City to Jewish emigrants from the Russian Empire. His father, Julius Hammer, was a communist activist who helped found the Communist Party USA and was imprisoned for manslaughter after performing an abortion that led to a patient's death. Some sources, including author Edward Jay Epstein, claim that Armand, then a medical student, performed the abortion and his father took the blame. During his father's imprisonment, Armand and his brother took over the family business, Allied Drug, and achieved early success selling a ginger extract high in alcohol during Prohibition, with $1 million in sales in 1919. In 1921, Hammer traveled to the Soviet Union as his father's envoy, despite speaking no Russian. He claimed he intended to recover $150,000 in debts for drugs shipped during the Allied intervention but also sought to sell wheat to starving Russians. During this trip, he allowed the Cheka (later the KGB) to take control of Allied Drug and Chemical. He later stated that Lenin granted him a 25-year asbestos concession in the Urals. Hammer spent the next decade traveling between the U.S. and the Soviet Union, perfecting bribery and money-laundering techniques that were later exposed in the 1960s and 1970s when he tape-recorded his payoffs. After nearly retiring, Hammer gained control of the failing Occidental Petroleum in 1956 and served as its CEO and chairman for 33 years, overseeing its growth into a major U.S. company. His business interests and 'citizen diplomacy' helped him cultivate a wide network of friends and associates worldwide.

Reader's Guide

Armand Hammer's significance lies in his unique role as a bridge between American capitalism and the Soviet Union during the Cold War. Dubbed 'Lenin's chosen capitalist,' he leveraged early family connections to Soviet authorities to build a business empire that spanned pharmaceuticals, whiskey, and ultimately oil. His tenure at Occidental Petroleum transformed a failing company into a corporate giant, demonstrating how personal diplomacy and risk-taking could yield enormous commercial success. However, his legacy is complicated by persistent allegations of unethical practices, including bribery and money laundering, as well as the unresolved dispute over whether he performed an illegal abortion as a medical student. Hammer's art collection and philanthropic efforts added to his public persona, but his close ties to the Soviet regime and the secrecy surrounding his early dealings have fueled ongoing historical debate. His life exemplifies the intersection of business, politics, and espionage in the 20th century.

Did You Know?

• Hammer's father Julius was a founding member of the Communist Party USA and was sentenced to 3.5 years in Sing Sing prison for manslaughter after a patient died following an abortion he performed.
• In 1919, Hammer's company made $1 million in sales from a ginger extract that legally contained high levels of alcohol, capitalizing on Prohibition.
• Hammer claimed Lenin personally granted him a 25-year asbestos concession in the Urals during his first trip to Soviet Russia.
• J. Edgar Hoover, then a 26-year-old Justice Department expert on subversives, tipped off foreign intelligence agencies that Hammer was a courier for the COMINTERN.
• Hammer allowed the Cheka (later the KGB) to take control of his family's company, Allied Drug and Chemical, during his first visit to Soviet Russia.