Sam Zemurray
Encyclopedia
Samuel Zemurray was a U.S. businessman who made his fortune in the banana
trade. He founded the Cuyamel Fruit Company
, and later became head of the United Fruit Company
, the world's most influential fruit company at the time. Both companies played highly controversial roles in the history of several Latin American countries and had a significant influence on their economic and political development.
Zemurray's original name was Schmuel Zmurri. He was born in Kishinev, Bessarabia
, Russian Empire
(present-day Chişinău
, Moldova) to a poor Jewish family that emigrated to America when he was fourteen years old. Zemurray had no formal education. He entered the banana trade in Mobile, Alabama
in 1895, at the age of eighteen. His early wealth was largely due to a very successful venture in New Orleans, Louisiana
, where he bought the bananas that had ripened in the transport ships and then sold them locally. His success earned him the nickname "Sam the Banana Man." By age twenty-one he had banked $100,000. He later bought a steamship and went to Honduras
. In 1910, he bought 5,000 acres (20 km²) of land along the Cuyamel River. He later added more land and found himself heavily in debt.
Honduras and Nicaragua
at the time were working to reschedule their debts. United States Secretary of State
Philander C. Knox
was involved in the negotiations, which would have agents of bankers J.P. Morgan and Company sitting in the countries' customs offices to collect the taxes needed to repay the debt. Zemurray feared that he would be taxed out of business and appealed to Knox for help. Knox spurned him so he returned to New Orleans, where deposed Honduran president Manuel Bonilla
was living. Zemurray smuggled Bonilla back to Honduras and a revolution was fought that led to Bonilla's return to power. Bonilla granted Zemurray land concessions and low taxes that saved his business.
In 1930, Zemurray sold his company, Cuyamel Fruit, to the rival United Fruit Company
of Boston, Massachusetts, for $31.5 million in stock and retired. But the company suffered because of mismanagement and the Great Depression
. The stock plunged 90% from when he sold, so Zemurray returned to the business in 1933 by voting out the board of directors. Zemurray reorganized the company, decentralizing decision-making and made the company profitable once more.
In 1953, The U.S. State Department and United Fruit embarked on a major public relations campaign to convince the American people and the rest of the U.S. government that Guatemala was a Soviet "satellite". Zemurray authorized Edward Bernays
to launch a propaganda campaign against Jacobo Arbenz, democratically-elected president of Guatemala, for he had proposed to redistribute some of the unused land owned by the United Fruit Co., to make it available for farming. In 1954 the campaign succeeded and the U.S. Central Intelligence Agency orchestrated a coup that eventually led to the 36-year Guatemalan Civil War
which left over 200.000 people dead. Zemurray retired as president of United Fruit later that year.
He and his family made generous donations to Tulane University
, Zamorano
, and to other philanthropic ventures, including the Zionist movement
through his personal acquaintance, beginning in the 1920s, with Chaim Weizmann
. Zemurray supported President Franklin D. Roosevelt
's New Deal
policies, helping to draft the Agricultural Adjustment Administration
industry codes http://www.bookrags.com/biography/samuel-zemurray/, and contributed financially to left-wing causes such as The Nation
magazine http://www.unitedfruit.org/zemurray.htm. He created the Zemurray Foundation in 1951. His former mansion on Audubon Place is now the residence of Tulane's president. His daughter, Doris Zemurray Stone
, an archaeologist and ethnographer
, served as the director of the National Museum of Costa Rica
and endowed various professorial chairs in U.S. universities.
Zemurray died in New Orleans, where he had lived for most of his life.
Banana
Banana is the common name for herbaceous plants of the genus Musa and for the fruit they produce. Bananas come in a variety of sizes and colors when ripe, including yellow, purple, and red....
trade. He founded the Cuyamel Fruit Company
Cuyamel Fruit Company
Cuyamel Fruit was a Honduran fruit company founded by Samuel Zemurray in 1910, to export fruit inland from Puerto Cortés, Honduras. Zemurray started as a banana retailer in Mobile, Alabama and moved to Honduras in order to participate in growing and exporting fruit...
, and later became head of the United Fruit Company
United Fruit Company
It had a deep and long-lasting impact on the economic and political development of several Latin American countries. Critics often accused it of exploitative neocolonialism and described it as the archetypal example of the influence of a multinational corporation on the internal politics of the...
, the world's most influential fruit company at the time. Both companies played highly controversial roles in the history of several Latin American countries and had a significant influence on their economic and political development.
Biography
Bessarabia
Bessarabia is a historical term for the geographic region in Eastern Europe bounded by the Dniester River on the east and the Prut River on the west....
, Russian Empire
Russian Empire
The Russian Empire was a state that existed from 1721 until the Russian Revolution of 1917. It was the successor to the Tsardom of Russia and the predecessor of the Soviet Union...
(present-day Chişinău
Chisinau
Chișinău is the capital and largest municipality of Moldova. It is also its main industrial and commercial centre and is located in the middle of the country, on the river Bîc...
, Moldova) to a poor Jewish family that emigrated to America when he was fourteen years old. Zemurray had no formal education. He entered the banana trade in Mobile, Alabama
Mobile, Alabama
Mobile is the third most populous city in the Southern US state of Alabama and is the county seat of Mobile County. It is located on the Mobile River and the central Gulf Coast of the United States. The population within the city limits was 195,111 during the 2010 census. It is the largest...
in 1895, at the age of eighteen. His early wealth was largely due to a very successful venture in New Orleans, Louisiana
New Orleans, Louisiana
New Orleans is a major United States port and the largest city and metropolitan area in the state of Louisiana. The New Orleans metropolitan area has a population of 1,235,650 as of 2009, the 46th largest in the USA. The New Orleans – Metairie – Bogalusa combined statistical area has a population...
, where he bought the bananas that had ripened in the transport ships and then sold them locally. His success earned him the nickname "Sam the Banana Man." By age twenty-one he had banked $100,000. He later bought a steamship and went to Honduras
Honduras
Honduras is a republic in Central America. It was previously known as Spanish Honduras to differentiate it from British Honduras, which became the modern-day state of Belize...
. In 1910, he bought 5,000 acres (20 km²) of land along the Cuyamel River. He later added more land and found himself heavily in debt.
Honduras and Nicaragua
Nicaragua
Nicaragua is the largest country in the Central American American isthmus, bordered by Honduras to the north and Costa Rica to the south. The country is situated between 11 and 14 degrees north of the Equator in the Northern Hemisphere, which places it entirely within the tropics. The Pacific Ocean...
at the time were working to reschedule their debts. United States Secretary of State
United States Secretary of State
The United States Secretary of State is the head of the United States Department of State, concerned with foreign affairs. The Secretary is a member of the Cabinet and the highest-ranking cabinet secretary both in line of succession and order of precedence...
Philander C. Knox
Philander C. Knox
Philander Chase Knox was an American lawyer and politician who served as United States Attorney General , a Senator from Pennsylvania and Secretary of State ....
was involved in the negotiations, which would have agents of bankers J.P. Morgan and Company sitting in the countries' customs offices to collect the taxes needed to repay the debt. Zemurray feared that he would be taxed out of business and appealed to Knox for help. Knox spurned him so he returned to New Orleans, where deposed Honduran president Manuel Bonilla
Manuel Bonilla
General Manuel Bonilla Chirinos was President of Honduras from 13 April 1903 to 25 February 1907, and again from 1 February 1912 till 21 March 1913....
was living. Zemurray smuggled Bonilla back to Honduras and a revolution was fought that led to Bonilla's return to power. Bonilla granted Zemurray land concessions and low taxes that saved his business.
In 1930, Zemurray sold his company, Cuyamel Fruit, to the rival United Fruit Company
United Fruit Company
It had a deep and long-lasting impact on the economic and political development of several Latin American countries. Critics often accused it of exploitative neocolonialism and described it as the archetypal example of the influence of a multinational corporation on the internal politics of the...
of Boston, Massachusetts, for $31.5 million in stock and retired. But the company suffered because of mismanagement and the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
. The stock plunged 90% from when he sold, so Zemurray returned to the business in 1933 by voting out the board of directors. Zemurray reorganized the company, decentralizing decision-making and made the company profitable once more.
In 1953, The U.S. State Department and United Fruit embarked on a major public relations campaign to convince the American people and the rest of the U.S. government that Guatemala was a Soviet "satellite". Zemurray authorized Edward Bernays
Edward Bernays
Edward Louis Bernays , was an Austrian-American pioneer in the field of public relations and propaganda along with Ivy Lee, referred to in his obituary as "the father of public relations"...
to launch a propaganda campaign against Jacobo Arbenz, democratically-elected president of Guatemala, for he had proposed to redistribute some of the unused land owned by the United Fruit Co., to make it available for farming. In 1954 the campaign succeeded and the U.S. Central Intelligence Agency orchestrated a coup that eventually led to the 36-year Guatemalan Civil War
Guatemalan Civil War
The Guatemalan Civil War ran from 1960-1996. The thirty-six-year civil war began as a grassroots, popular response to the rightist and military usurpation of civil government , and the President's disrespect for the human and civil rights of the majority of the population...
which left over 200.000 people dead. Zemurray retired as president of United Fruit later that year.
He and his family made generous donations to Tulane University
Tulane University
Tulane University is a private, nonsectarian research university located in New Orleans, Louisiana, United States...
, Zamorano
Zamorano
The Zamorano Pan-American Agricultural School , generally known as El Zamorano or Zamorano, is a private, coeducational university located in the valley of the Yeguare river, Honduras. El Zamorano's main focus is agricultural and there are four different programs to choose from in the school....
, and to other philanthropic ventures, including the Zionist movement
Zionism
Zionism is a Jewish political movement that, in its broadest sense, has supported the self-determination of the Jewish people in a sovereign Jewish national homeland. Since the establishment of the State of Israel, the Zionist movement continues primarily to advocate on behalf of the Jewish state...
through his personal acquaintance, beginning in the 1920s, with Chaim Weizmann
Chaim Weizmann
Chaim Azriel Weizmann, , was a Zionist leader, President of the Zionist Organization, and the first President of the State of Israel. He was elected on 1 February 1949, and served until his death in 1952....
. Zemurray supported President Franklin D. Roosevelt
Franklin D. Roosevelt
Franklin Delano Roosevelt , also known by his initials, FDR, was the 32nd President of the United States and a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic crisis and world war...
's New Deal
New Deal
The New Deal was a series of economic programs implemented in the United States between 1933 and 1936. They were passed by the U.S. Congress during the first term of President Franklin D. Roosevelt. The programs were Roosevelt's responses to the Great Depression, and focused on what historians call...
policies, helping to draft the Agricultural Adjustment Administration
Agricultural Adjustment Act
The Agricultural Adjustment Act was a United States federal law of the New Deal era which restricted agricultural production by paying farmers subsidies not to plant part of their land and to kill off excess livestock...
industry codes http://www.bookrags.com/biography/samuel-zemurray/, and contributed financially to left-wing causes such as The Nation
The Nation
The Nation is the oldest continuously published weekly magazine in the United States. The periodical, devoted to politics and culture, is self-described as "the flagship of the left." Founded on July 6, 1865, It is published by The Nation Company, L.P., at 33 Irving Place, New York City.The Nation...
magazine http://www.unitedfruit.org/zemurray.htm. He created the Zemurray Foundation in 1951. His former mansion on Audubon Place is now the residence of Tulane's president. His daughter, Doris Zemurray Stone
Doris Zemurray Stone
Doris Zemurray Stone was an archaeologist and ethnographer, specializing in pre-Columbian Mesoamerica and the so-called "Intermediate Area" of lower Central America. She served as the director of the National Museum of Costa Rica and endowed numerous professorial chairs in U.S...
, an archaeologist and ethnographer
Ethnography
Ethnography is a qualitative method aimed to learn and understand cultural phenomena which reflect the knowledge and system of meanings guiding the life of a cultural group...
, served as the director of the National Museum of Costa Rica
Costa Rica
Costa Rica , officially the Republic of Costa Rica is a multilingual, multiethnic and multicultural country in Central America, bordered by Nicaragua to the north, Panama to the southeast, the Pacific Ocean to the west and the Caribbean Sea to the east....
and endowed various professorial chairs in U.S. universities.
Zemurray died in New Orleans, where he had lived for most of his life.