Eli M. Black
Encyclopedia
E. M. Black was a Jewish-American businessman who controlled the United Brands Company. His son, Leon Black
, is a founding member of private equity firm Apollo Management
.
, he came to America as a child. As a young man he trained as a rabbi
. He attended Yeshiva University
, and graduated at the top of his class in 1940. He served a congregation in Woodmere, New York
but after three-and-a-half years he left the pulpit to enter business.
, and then the American Securities Corporation, where he worked on financing for the American Seal-Kap Company, a company that made caps for milk bottles. He was hired to be their chairman and chief executive officer in 1954.
Black renamed the company AMK, after its ticker symbol, and turned it into a vehicle for acquisitions; joining the conglomerate
bandwagon of the 1960s. Among his many takeovers was the John Morrell & Co. meatpacking company. AMK joined the nation's top 500 companies in 1967.
But things began to change in 1970 when AMK merged with United Fruit Company
, and adopted the name United Brands. Black became chairman, president, and CEO. At that time, United Fruit was importing about a third of all the bananas sold in the USA and owned the Chiquita
banana brand. But Black soon discovered that United Fruit had far less capital than he had believed.
The company soon became crippled with debt. The company's losses were exacerbated by Hurricane Fifi
in 1974, which destroyed many of its banana
plantations in Honduras
. In 1974, United Brands reported losses of $40 million for the first three quarters of the year. Black struggled to keep the company solvent, and in December United Brands announced that it was selling its interest in Foster Grant, Inc. for $70 million.
uncovered a $2.5 million bribe that Black offered to Honduran president Oswaldo López Arellano
in order to obtain a reduction of taxes on banana exports.
A few weeks before the scandal broke, Black went to his office on the forty-fourth floor of the Pan Am Building
in Manhattan
. At about 8 a.m., he bashed out the window with his briefcase and jumped to his death, landing on the northbound ramp of Park Avenue beside horrified motorists. His briefcase came to a stop on a post office loading ramp, where it was found with its contents scattered nearby.
He was remembered favorably by a number of prominent people, including Senator Abraham Ribicoff
and Amyas Ames, the chairman of Lincoln Center. United Farm Workers president Cesar Chavez
said that his career was proof that management could work with farm labor "for the betterment of all." Black served as a trustee of The Lincoln Center for the Performing Arts, The American Jewish Committee, The Federation of Jewish Philanthropies, Babson College
, The Jewish Guild for the Blind, and The Jewish Museum. He had also served as chairman of the Commentary Magazine publication committee.
After Black's spectacular suicide, Cincinnati-based American Financial Group
, one of millionaire Carl Lindner, Jr.
's companies, bought into United Fruit.
The Hudsucker Proxy
.
Leon Black
Leon David Black is an American businessman and money manager, with a focus on leveraged buyouts and private equity. He is a son of Eli M. Black , a prominent businessman who controlled the United Brands Company and committed suicide when caught paying bribes to the President of Honduras...
, is a founding member of private equity firm Apollo Management
Apollo Management
Apollo Global Management, LLC is a private equity investment firm, founded in 1990 by former Drexel Burnham Lambert banker Leon Black. The firm specializes in leveraged buyout transactions and purchases of distressed securities involving corporate restructuring, special situations and industry...
.
Early life
Born Elihu Menashe Blachowitz in PolandPoland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
, he came to America as a child. As a young man he trained as a rabbi
Rabbi
In Judaism, a rabbi is a teacher of Torah. This title derives from the Hebrew word רבי , meaning "My Master" , which is the way a student would address a master of Torah...
. He attended Yeshiva University
Yeshiva University
Yeshiva University is a private university in New York City, with six campuses in New York and one in Israel. Founded in 1886, it is a research university ranked as 45th in the US among national universities by U.S. News & World Report in 2012...
, and graduated at the top of his class in 1940. He served a congregation in Woodmere, New York
Woodmere, New York
Woodmere is a hamlet in Nassau County, New York, United States. The population was 17,121 at the 2010 census.Woodmere is one of the Long Island communities known as the Five Towns, which is usually said to comprise the villages of Lawrence and Cedarhurst, the hamlets of Woodmere and Inwood, and...
but after three-and-a-half years he left the pulpit to enter business.
Business career
His business career began in investment banking with Lehman BrothersLehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
, and then the American Securities Corporation, where he worked on financing for the American Seal-Kap Company, a company that made caps for milk bottles. He was hired to be their chairman and chief executive officer in 1954.
Black renamed the company AMK, after its ticker symbol, and turned it into a vehicle for acquisitions; joining the conglomerate
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...
bandwagon of the 1960s. Among his many takeovers was the John Morrell & Co. meatpacking company. AMK joined the nation's top 500 companies in 1967.
But things began to change in 1970 when AMK merged with 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...
, and adopted the name United Brands. Black became chairman, president, and CEO. At that time, United Fruit was importing about a third of all the bananas sold in the USA and owned the Chiquita
Chiquita
Chiquita can refer to:*Chiquita Brands International, a large produce company*Rio Chiquita, a river in Táchira, Venezuela*Chiquita , a song by Sam H. Stept*Chiquita , a book about the life of Cuban dwarf dancer and singer Espiridiona Cenda...
banana brand. But Black soon discovered that United Fruit had far less capital than he had believed.
The company soon became crippled with debt. The company's losses were exacerbated by Hurricane Fifi
Hurricane Fifi
Hurricane Fifi was a catastrophic tropical cyclone that killed between 3,000 and 10,000 people in Honduras in September 1974, ranking it as the fourth deadliest Atlantic hurricane on record. Originating from a strong tropical wave on September 14, the system steadily tracked...
in 1974, which destroyed many of its banana
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....
plantations in 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 1974, United Brands reported losses of $40 million for the first three quarters of the year. Black struggled to keep the company solvent, and in December United Brands announced that it was selling its interest in Foster Grant, Inc. for $70 million.
Death
In 1975, the Securities and Exchange CommissionUnited States Securities and Exchange Commission
The U.S. Securities and Exchange Commission is a federal agency which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets in the United States...
uncovered a $2.5 million bribe that Black offered to Honduran president Oswaldo López Arellano
Oswaldo López Arellano
Oswaldo Enrique López Arellano was a two-time President of Honduras, first from 1963 to 1971 and again from 1972 to 1975. He gained power both times via military force....
in order to obtain a reduction of taxes on banana exports.
A few weeks before the scandal broke, Black went to his office on the forty-fourth floor of the Pan Am Building
MetLife Building
The MetLife Building, originally called the Pan Am Building, is a skyscraper located at 200 Park Avenue in Midtown Manhattan, New York City.-History:...
in Manhattan
Manhattan
Manhattan is the oldest and the most densely populated of the five boroughs of New York City. Located primarily on the island of Manhattan at the mouth of the Hudson River, the boundaries of the borough are identical to those of New York County, an original county of the state of New York...
. At about 8 a.m., he bashed out the window with his briefcase and jumped to his death, landing on the northbound ramp of Park Avenue beside horrified motorists. His briefcase came to a stop on a post office loading ramp, where it was found with its contents scattered nearby.
He was remembered favorably by a number of prominent people, including Senator Abraham Ribicoff
Abraham A. Ribicoff
Abraham Alexander Ribicoff was an American Democratic Party politician. He served in the United States Congress, as the 80th Governor of Connecticut and as President John F. Kennedy's Secretary of Health, Education, and Welfare...
and Amyas Ames, the chairman of Lincoln Center. United Farm Workers president Cesar Chavez
César Chávez
César Estrada Chávez was an American farm worker, labor leader, and civil rights activist who, with Dolores Huerta, co-founded the National Farm Workers Association, which later became the United Farm Workers ....
said that his career was proof that management could work with farm labor "for the betterment of all." Black served as a trustee of The Lincoln Center for the Performing Arts, The American Jewish Committee, The Federation of Jewish Philanthropies, Babson College
Babson College
Babson College is a private business school located in Wellesley, Massachusetts near Boston.- History :Babson College was founded by Roger Babson on September 3, 1919, as the Babson Institute. It was renamed "Babson College" in 1969...
, The Jewish Guild for the Blind, and The Jewish Museum. He had also served as chairman of the Commentary Magazine publication committee.
After Black's spectacular suicide, Cincinnati-based American Financial Group
American Financial Group
American Financial Group Incorporated is a holding company based in Cincinnati, Ohio whose primary business is insurance and investments. American Financial Group's purpose is to enable businesses and individuals to manage risk using insurance products and services tailored to meet their specific...
, one of millionaire Carl Lindner, Jr.
Carl Lindner, Jr.
Carl Henry Lindner, Jr. was a Cincinnati businessman and one of the world's richest people. According to the 2006 issue of Forbes Magazine's 400 list, Lindner was ranked 133 and was worth an estimated $2.3 billion...
's companies, bought into United Fruit.
Cultural references
Black's suicide was the inspiration for a scene in the 1994 screwball comedy filmScrewball comedy film
The screwball comedy is a principally American genre of comedy film that became popular during the Great Depression, originating in the early 1930s and thriving until the early 1940s. It is characterized by fast-paced repartee, farcical situations, escapist themes, and plot lines involving...
The Hudsucker Proxy
The Hudsucker Proxy
The Hudsucker Proxy is a 1994 screwball comedy film written, produced, and directed by Joel and Ethan Coen. Sam Raimi co-wrote the script and served as second unit director....
.
Further reading
- "Eli Black's Rites Attended by 500", The New York Times, February 6, 1975.
- Peter Kihss, "44 Story Plunge Kills Head of United Brands", The New York Times, February 4, 1975.
- Peter T. Kilborn, "Suicide of Big Executive: Stress of Corporate Life", The New York Times, February 14, 1975.
- Thomas P. McCann, On the Inside, Beverley, Massachusetts: Quinlan Press, 1987. ISBN: 0933341539