Hammer's Magic Mistress (page 2)
THE NEW YORKER
September 23, 1996


by Edward Jay Epstein

She was overwhelmed by this sweeping proposal and the confident manner in which he had delivered it. "Why me?" she asked.

He replied that he felt himself "drawn to her" from the moment they met. He said he could sense that she wanted to learn from him. "I want to take care of you," he said, embracing her like a child. He then led her to the adjoining bedroom and began the relationship that wold change her life.

After Hammer left the suite, Kaufman saw that he had left five one-hundred bills on the table for her. Insulted, she left them on the table. But his message was clear-- if crude.

On September 22, 1974, she was put on the payroll of Occidental at a starting salary of $22,000 per year. She nominally worked for Occidental's public relations department, but, in reality, she could come and go as she liked, without reporting to her superior in the department. She reported directly to Hammer. The job provided a plausible reason for her meetings with Hammer in forein countries-- including Venezuela, Peru, Mexico, Britain and Japan. She also found the job extremely challenging since it involved not only arranging exhibitions for the Armand Hammer Collection but, making sure that the officials, socialites and journalists who Hammer wanted to cultivate favor with would be invited.

When Hammer travelled with his wife Francis on the corporate jet, she would take a commercial flight to the same destination. But on almost these trips, he would then find opportunities to liaise with her. In Paris, for example, he took her to a Russian restaurant, which he had closed to other customers. As they sat alone there, served by a dozen waiters and serenaded by an entire gypsy orchestra, she marvelled at his power to magically empty a restaurant when it suited his purposes.

She soon found that Hammer had his own golden rule: "He Who Hath The Gold, Makes The Rules." He had it inscribed on a plaque in his office, and pointing it out to her, he told her "like it or not, this is the way life is." She soon found out how serious he was about imposing his rules on her. When, for example, she sought a legal divource from his husband in 1976, he told her not to seek either alimony or child support for her daughters from him. If she did, he explained to her that her husband might retaliate by exposing her relationship with him and he could not risk having his name surface. Instead, he asked her to arrange an uncontested divource and he would provide her and her daughters with lifetime support. She followed his instructions and was now heavily dependent on Hammer for her employment.

In 1978, Hammer told her that he was transferring her from Occidental to the Armand Hammer Foundation. She would serve there as his personal art consultant at a salary of $30,000. This change increased her dependence on him-- which she assumed was partly his motive. Instead of working for Occidental, where she might find some corporate insulation, she worked directly for him from her home in Beverly Hills-- a home he had encouraged her to buy because it had an ally that led to a back entrance. Having his limousine driver bring him to this alley, he could keep his visits discreet. It was to be his private retreat. He had her decorate it like an English cottage with furniture that had belonged to his deceased brother, Harry. In the master bedroom was an "Aduster" bed, so he could raise and lower in different positions, and mirrors on the wall, so he could watch himself perform . In the garden, he had her plant his favorite flower, double-delight roses that changed from white to deep red.

Usually, he would arrive about noon time take off the tie and jacket he wore to the office, and make himself comfortable at the table in the kitchen. She found her liked to make phone calls in her presense to the White House, Kremlin, Buckingham Palace and other centers of power, as if to impress her. When speaking to lesser people, she noticed he would almost always dispense with the usuals polite "hellos" and "good-byes. He would tersely state his business and hang up. After lunch, he would often put on a robe and sun himself in the garden.

He would tell her during these visits, "You make me young." And she did what she could to restore his youth, putting him on the low-fat Dr.Atkins diet (his weight dropped from 206 when she first met him to 165 pounds) and helping him "think young."

Aside from her salary, he had promised her a lifetime income after his death that was to be paid out of a secret bank account in Switzerland. Since he was not in the best of health, and an octogenerian, this Swiss Account was an important part of their deal.

It was not an easy bargain for her. He demanded an extraordinary measure of control over her personal life during the course of the next 12 years. She had to be available to meet his schedule at short notice. He gave her two beepers to alert her to his calls. He prohibited her from seeing other men and,to make sure of her wherabouts in Los Angeles, he had a homing device installed in her car and a tap placed on her phone. He also frequently had wear a disguise when they were together in public so she would not be recognized. He also controlled her vacation schedule-- for example, making sure she came to New York when he had to be there overnight on business (He maintained a town house in Greenwhich Village there that he used for these tristes.) She had to submit to his sexual demands even when she considered them, as she later described them, as "extremely humiliating." She also accomodated him by mirroring her bedroom when he told her he enjoyed watching himself. Despite his advanced age, she found him to be physically energetic, which he attributed to swimming laps every day in his home indoor pool.

He went far beyond any conventional romantic liaison by attempting to extend his domain to her reproductive organs. Hammer wanted her to bear him an illegimate son. He would not take no for an answer, but, though he kept careful track of her menstrual cycle, she did not get pregnant. He then forced her, as she later described it, "to undergo surgical procedures to facilitate impregnation"-- procedures he had "conducted under his direct view and direction." They also failed.

When Hammer decided to build his own museum, he involved her in the project, raising her salary to $70,000 in 1989. Then Francis found out that she was Hammer's mistress. She had previously suspected a liaison, but Hammer had managed to persaude her that she was mistaken. Now, even though he again denied the truth, she was not convinced. Since Francis' own fortune, which she inherited before he married her in 1955, had helped finance the art collection, he needed her cooperation in transferring the art to the museum and could not risk her impeding the project. Nor did he want to give up his mistress, as she demanded. He therefore designed an ingenious ploy to dupe his wife.

After telling her that he had fired his Martha Kaufman from the foundation, he had his mistress assume a new identity under the name of "Hilary Gibson." He then told Francis that he had hired "Gibson" as a replacement for Kaufman. To further diminish her suspicion, he had his mistress transform herself into a much elderly woman, telling her that older woman pass unnoticed at social functions. He made her, as she lated noted, "wear wigs, glasses, make-up and attire which made her appear decades older than she really was." When he was satsfied with his make-over, he re-employed her both at the Foundation and Occidental, where she had to disguise "her true identity from co-workers." She recalled that he took immense pleasure in the success of this deception.

Francis died that December. But by this time the persona of Hilary Gibson was well established. She was the director of planning, development and financial control for the museum-- a position from which she personally supervised all aspects of this creation of Hammer's monument. She even oversaw the engraving in marble of the letters of his name. By the fall, Hammer's visits to her home became less frequent, and she put all her energies into making sure of the success of the grand opening. She also drew up a new contract for herself that gave her life time remuneration from the foundation, and, a week before the opening, Hammer had signed it.

The opening ended abruptly for Hammer at 10 p.m. when two medical attendentants picked him, like a rag doll, and carried him out. When he got home that night, he had a prolonged hallucination. He saw his dead mother in the room and, in front of his staff, he carried on a rambling conversation with her, asking her over and over again where his missing father was. His night nurse could not convince him that it was only a hallucination. The next week, two faith-healers were broiught in. They floated Hammer on the surface of the swimming pool and, in a repition of an ancient Aztec ceremony, they danced around him for two days. On 7.22 p.m, on December 10, Hammer died in bed-- it was the night before his scheduled Bar Mitzvah.

The memorial service took place at the Museum on Jauary 4, 1991. Hilary Gibson stood alone.in the row immediately behind the Occidental Board of Directors. She was felling very much like, as she put it, "a pariah." Even since the funeral, the new management at Occidental had begun to distance itself from Hammer. His pet projects, such as Armand Hammer Film Productions, had been terminated. His photographs, paintings and busts taken down. The framed letters and testimonials to Hammer from world leaders also had been removed from the sixteenth floor executive suite. She could see "the handwriting on the wall for herself. She had been Hammer's mistress for 17 years and the museum, which Hammer had meant her to run, had become the subject of huge shareholders suit. She knew the new management was moving to distance itself from both her and the museum. The Leonardo De Vinci book, which he had named the Hammer Codex, would be sold to William Gates of Microsoft-- and re-named. The museum would be turned over to UCLA to manage. She would be put through, as she termed it, "total hell."

Throughout the following months she found her progressively more isolated. Her title was revoked and, finally, on June 2, 1992 two Occidental security men escorted her out of the building. She was fired.

The foundation had also dispensed with her services and made it clear to her that to sequibly settler her claim against it, she would have to sue it.

She also received no money from the secret fund he had told her he had set up for her in Switzerland. He had ked her to believe it contained at least 10 million dollars-- and that this was money he had diverted from oil deals he had made in Libya. Yet, when she asked lawyers for Hammer's estate about it, they denied it existed.

What these lawyers did not anticipate was her extraordinary determination-- and resourcefulness. "If I could handle Hammer for 17 years, I could handle anything." she later reflected. She had during Hammer's visits to her home made copies of numerous addresses she found on papers in his pocket. Even though he often used code-names, she was able to identify a key Swiss banker-- Felix Iselin. In 1994, she flew to Basel and arranged a meeting with Iselin at his office.

Iselin was very brusque and business-like. He told her that Hammer hae made arrangments for her but revoked them. He then took a hand-written document from his file. It was addressed to Peter Lotz, one of his partners and dated September 6, 1990. She could see that most of the words on it had been meticulously blocked out with masking tape for her viewing. The unblocked portion read: "My instructions with regard to ... Martha Kaufman (Hilary Gibson) are revoked." It was signed "Armand Hammer." Iselin looked at her smugly, as if that ended the issue.

She then calculatingly asked Iselin for some information. When he left to get it for her, she grabbed the document and, concealing it under her shawl, calmly left the office. By the time she had arrived at her hotel, there was a frantic message from Iselin, begging her to return the document. Instead, she peeled off the masking tape and found the name of the secret account-- the Grazioza Account-- that Hammer had established for her. The full document also showed that Hammer had secreted money outside of the U.S. that he did not intend to pass through his estate-- or pay taxes on. She speculated that this disclosure could prove enormously embarrassing to the estate. She now also knew that her lover had double-crossed her a few months before he died by revoking his commitment. She decided to sue his estate for his breach of promise.

Confronted with the document, the lawyers representing Hammer's estate, living trust and Occident settled her claim out of court. In March 1996, she received $4.2 million.

She had also opened a pandora's box.

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