The Hammer Tapes (page 2)

UNPUBLISHED

September 1996


by Edward Jay Epstein


"jh" was Julian Hammer, as he readily admitted after I brought the note-- and tapes-- to his home in Bel Air. He was Hammer's only son, born in Moscow in 1929, but his relationship with his father had not been an easy one.

His mother, Olga Vadina, was a gypsy singer, who Hammer had married shortly before he was born. Her pregnancy had been so unexpected that Hammer suspected that he the biological father -- and he continued to harbor these dark suspicions until 1988, when through having a DNA sample secretly tested at UCA medica center he finally determined Julian was indeed his progeny.

Almost immediately after the Hammer family returned to New York in 1931, he began distancing himself from Olga and Julian. Julian believed that his father was embarrassed because they spoke Russian. When Julian was six, his father told him that it was better if hey lived apart. He sent him and his mother first to upstate New York and then Los Angeles. In growing up, he saw little of his father-- often not even on Christmas holidays. His father did not even attend his wedding in 1954 or even send congratulations. At this point, he had not seen his father in nearly three years. On the night of his twenty sixth birthday, an event happened that re-united them. He had invited a soldier over to his apartment that night, and after they both drank heavily, the soldier made advances towards his wife. They brawled and Julian, getting his pistol from a drawer, shot the soldier to death. After the police arrested Julian for the shooting, the Los Angeles Times' headline, above he story about the killing, reported "MILLIONAIRE'S SON KILLS GI."

Whether he liked it or not, Hammer was again linked to his son. The publicity could not have come at a worse time for Hammer. He had just divorced his second wife, Angela, in a messy battle, and was also having financials problems with his art business, the Hammer Galleries. He now moved to avoid a trial that could further embarrass him. He borrowed $50,000 in cash from Frances Barrett Tolman, would become the third Mrs. Armand Hammer the following year. He then had a women friend deliver the cash to a lawyer in Los Angeles.

Julian was released from jail. The state's attorney accepted his explanation that he had shot his guest in self-defense and dismissed all charges against him. He was free in the eyes of the law but not those of his father. Hammer would not let him forget his $50,000 intervention. He told him that payment to a party he never identified had saved Julian from prison. He now wanted him to repay his debt to him by disappearing from public sight so that he caused him no further embarrassment. He would provide him with a cash remittance each month. As Hammer began building up his oil company in the early 1960s, he found an additional way for Julian to pay his debt. He asked him to help him with a task that he did not trusted his regular employees to perform. He called it "James Bond stuff." and it also required low visibility. Taking advantage of Julian's technical skills with electronics-- skills he had developed initially as a hobby-- Hammer had him install a sophisticated recording system in his home and office. Then, he had him devise up a micro cassette-recorder that he could conceal on his person. Its miniature microphone was concealed in one of his gold cufflink. On a number of occasions, he would have Julian come to his private office and stand there shirtless while Julian taped the recorder to his body and ran the wires to the cufflink. As Julian rigged him up, he could also sense the power his father derived from being able to secretly tape the words of people close to him. He would watch him put on his shirt, tie and jacket and, with the confidence this concealed weapon gave him, he went to his appointed meeting. He would then bring the cassette back to Julian, who would then return to him a copy on a conventional cassette and a transcript.

Although Julian did not always know the identity of the voices on the tapes, he realized that the conversations often concerned cash payments. He assumed that this was his father's way of doing business: paying individuals off the books and then secretly tape their acknowledgment of the transactions. He also found that his father taped on a number of occasions conversations with executives he was about to fire. As the years went by, Hammer extended the scope of his "James Bond" operations by having Julian and others plant hidden surveillance devices in other people's homes and offices. Julian knew much of what he was doing for his father was probably illegal but he saw he had little choice. It was the only service he could perform to repay his debt.

Julian was able to tell me the circumstances under some of the tapes were made. He also believed that there were more tapes but he never found them. He died of heart failure on April 3 1996.

Although many of these secret conversations occurred decades ago, they still touch on issues that remain sensitive today. Consider, for example, the 1971 tape in which Hammer and Askew go over the list of pay-offs to ministers in the Caldera government and officials of his Christian Democrat Party. Caldera, the reformer whom Hammer so determinedly wanted to reach then, is again President of Venezuela today. After losing the presidency in 1973, he was re-elected in 1994.

In the intervening years, much happened to Occidental in Venezuela. Carlos Andres Perez, who succeeded Caldera as President, moved in 1974 to nationalize foreign oil concession, which included the service contracts in Maracaibo. At about the same time, John Ryan, who had been fired from Occidental in Venezuela, alleged, although he had no first hand knowledge, that Askew had paid bribes. In the ensuing investigation, a mysterious check was traced back to Askew, which was displayed by President Perez on national television. Askew was then arrested, imprisoned for six months and then released, since the authorities developed no evidence that he had actually bribed a government official.

But since both the Parliament and the Judiciary continued their own investigation into the allegations, the Venezuela government refused to pay compensation for its nationalized contracts to Occidental-- although all other foreign oil companies were paid. In the case of Occidental, Perez took the position that if it turned out it had obtained its service contracts through bribery, under Venezuala law, it would not be entitled to any compensation.

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