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A Big Business Tries to Quash a Tiny Business

Armand Hammer’s Epic Nastiness Lives On

October 2007 By Denny Hatch
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In the News

Will The Hammer Bring Down the Hammer on The Hammer?
There’s a fun Page-One WSJ story on a bubbling trademark spat between the Hammer Museum in Haines, Alaska, and the Hammer Museum in L.A. The Alaska Hammer, created in 2000, is dedicated to the oldest human tool (check out wicked-cool slide show). The museum took in $8,104 in revenue last year (half from T-shirt sales). The L.A. Hammer, the renowned fine-art museum formerly known as the Armand Hammer Museum of Art, dropped the “Armand” and now calls itself the Hammer Museum. In 2006, it booked about $10 million in sales. Last year, the L.A. Hammer applied to trademark the name—26 lawyers are listed on its trademark application. When Dave Pahl, the founder of the Alaska museum, found this out this past summer, he filed his own trademark application online without a lawyer.
—Posted by Peter Lattman, The Wall Street Journal Law Blog, Oct. 5, 2007
On Oct. 5, 2007 two stories ran in The Wall Street Journal—and on its Web site—about the huge Los Angeles Hammer Museum’s effort to bury Dave Pahl’s Hammer Museum, which displays his collection of 1700 hammers in a tiny house in Haines, Alaska, 3,098 miles to the north.

The top brass at the Los Angeles museum is following slavishly the brutal, bully-boy tactics of its founder, Occidental Petroleum President Armand Hammer (1898-1990), whose philosophy of life was codified on a plaque in his office that proclaimed, “He who hath the gold makes the rules.”

In any publication or broadcast news story, what the L.A. Hammer Museum is doing to Dave Pahl’s teeny museum of hammers in the boonies of Alaska would generate outrage.

Yet The Wall Street Journal treated this David vs. Goliath struggle as a giggle—”a fun Page-One WSJ story on a bubbling trademark spat” is how law blogger Peter Lattman describes it in his oh-so-cleverly-titled story, “Will The Hammer Bring Down the Hammer on The Hammer?”

On page 1 of the Journal that day, Laura Meckler titles her smarty-pants story, “Why Two Museums Are Now Going at it Hammer and Tongs.”

Her subhead—equally cutesy-poo: “One in Alaska Shows Tools, One in Los Angeles, Art; Will Mr. Pahl Get Nailed?”

I only wish I were 40 years younger with plenty of money so I could engineer a PR campaign—pro bono for Dave Pahl, who has no money—that would dump so much manure on the Hammer Museum in Los Angeles that visitors will want a hot shower when they exit.

I cannot wait until Rupert Murdoch gets deeply involved in the newsroom of the Journal—his newest acquisition—and brings the snotty little elitists who are, laughingly, journalists, back into the real world, or better, out the door.

Dave Pahl Opts Out
In 1973, Dave Pahl decided to chuck life in Cleveland’s fast lane and moved to Haines, Alaska, 775 miles south of Anchorage in the Chilkat Valley on the shores of the longest, deepest fjord in North America. Pahl and his wife, Carol, homesteaded for a number of years with no electricity or indoor plumbing.

Fascinated by humankind’s oldest tool, Pahl began acquiring hammers until he had amassed a formidable collection of 900 of them, ranging from a prehistoric warrior’s pick to the modern implement sold by The Home Depot.

In 2000, the Pahls bought a wee, fixer-upper house on Main Street in Haines (pop. 1,811) and the following year opened the Hammer Museum where he displays his tool collection in four tiny rooms.

Recently the Armand Hammer Museum in L.A. decided to drop the “Armand” and call itself the Hammer Museum, and applied to the United States Patent and Trademark Office for a trademark. The application listed 26 lawyers who claimed that it first called itself the Hammer Museum back in 1999.

“Actually, the LA Hammer is still officially named the Armand Hammer Museum of Art and Culture Center,” writes The Wall Street Journal Law Blog, “although it uses The Hammer in most contexts.” Myriad entries on the Internet throughout this century up to today refer to it as the Armand Hammer Museum.

When he heard about the Los Angeles giant trying to trademark his name, Dave Pahl, now 57, filed his own trademark application—with no help from even one lawyer. Both applications are pending.

Dave Pahl erred when he allowed his hammermuseum.com domain to expire; the L.A. people promptly snapped it up and are using it. They offered Pahl money for his www.hammermuseum.org domain, and he turned them down.

Clearly, this is a case of a bunch of rich bullies—with an income of $10 million-plus last year—trying to steamroller a dedicated educator whose tiny nonprofit museum took in just $8,104 in 2006.

Why the Armand Hammer Museum is Looking at a PR Catastrophe
First of all, Dave Pahl’s plight—and tiny museum—landed on the front page of The Wall Street Journal, which is read by 2 million-plus of the most influential men and women in the U.S. Despite the Journal’s patronizing slant, every person who saw the story will sympathize with the Alaskan.

A good PR consultant—if Dave Pahl could afford one—could easily amass an arsenal of scuzz to unload all over the Los Angeles museum, which was founded by one of the most despicable characters in 20th century business. The mother lode of dirt on Armand Hammer—his sleazy business practices and disgusting personal life—is found in two places:

* The FBI’s 658-page dossier on Hammer’s dealings with the Russians and his Communist affiliations going back to his friendship with Vladimir Lenin in the 1920s all the way through the Cold War.

* Edward J. Epstein’s 1996 glorious muckraking exposé, “Dossier: The Secret History of Armand Hammer.”

A glimpse at the sordid life of Armand Hammer:

Anyone who ever paid the old, steep ($9, if memory serves) admission to the Armand Hammer Museum of Art in Los Angeles knows what it was like to be cheated by the master himself. Despite dabbling in the art business for more than half a century, dipping into the deep pockets of his company, Occidental Petroleum, and hiring a former director of the National Gallery as a consultant, Hammer’s effort to be immortalized as a latter-day de Medici fell flat: The museum’s collection was weak and spotty. Even the highlights had a distasteful whiff to them: The DaVinci manuscript that the oil magnate renamed the “Codex Hammer” (current owner Bill Gates has restored its old name, the “Leicester Codex”) was sliced up like a loaf of bread for display, and the treasure trove of Daumier lithographs had been practically stolen from the L.A. County Museum of Art, where Hammer had been a trustee before reneging on a promise to leave his collection to the institution.
Michael Ybarra, Washington Monthly, March 1999

Epstein’s charges against Hammer are vast: performing illegal abortions at his father’s “clinic” (a fatal operation that Hammer performed while a medical student at Columbia sent his father to Sing Sing for manslaughter); laundering money that financed espionage for the Soviets in the 1920s and ’30s; being a bad businessman (for the laundering to work, his ventures in the U.S.S.R. and the U.S. had to appear to be money-makers); peddling fraudulent “Romanoff treasures” and fake Faberge Easter eggs through his art gallery; bribing his way to success both in the oil business and at the White House; blackmailing enemies and fabricating friendships with people in high places; bilking the rich widow who was his third wife; reneging on financial commitments he made to several mistresses and an illegitimate daughter; hiding his Jewishness until he was at death’s door; and, finally, mounting a shameless, self-serving and unsuccessful publicity campaign to win the Nobel Peace Prize.
Publishers Weekly

Hammer spent a fortune (usually Occidental’s money) acquiring paintings by Rembrandt, Rubens, Goya, Gauguin, Cezanne, Monet and Van Gogh, among others. Out of love of art? “Hammer knew and cared as much about art,” one expert observed, “as Al Capone.” As Hammer unabashedly explained, his collection was to be his “ticket to immortality.” Hammer’s personal life was of a piece with his business ethic. One mistress was five months pregnant with his child and expecting to marry him when he married a rich widow instead. He shipped the girlfriend, who spoke not a word of Spanish, to live in Mexico, and arranged a quickie marriage and divorce for her to legitimize the child. Hammer promised to take care of mother and daughter, but the child was never to be told who her father was. A later mistress, whom Hammer put on the Occidental payroll as his personal art consultant, was pressured to change her name, wear wigs and make herself look older to defuse his wife’s suspicions that he was having an affair. In 1988, he insisted on a DNA test to confirm the paternity of Julian, his son by his first wife. Julian was then 59.
—Joseph E. Persico, “The Last Tycoon,” The New York Times, Oct. 13, 1996

How Would a Gunfighter of a PR Consultant Use This Material?
* Order several thousand reprints of The Wall Street Journal front-page story.

* Put together a media contact list of newspapers and Web sites that love dirt.

* With each development in the trademark case, send out a press release with the latest information. Midway down each press release, have a paragraph that begins, “Armand Hammer, you will recall [insert a new batch of dirt from one of the dossiers—Epstein’s or the FBI’s—that discredits Hammer himself and his collection].”

* Include one of the Journal reprints as backup to remind editors the world’s most important newspaper considered this to be page-one material.

* Always paint Dave Pahl as the victim and Armand Hammer as the villain.

* Be sure to remind editors that Pahl’s hammer collection is unique in the world while the Armand Hammer collection is ordinary.

Get Dave Pahl a series of TV gigs—Letterman, The Today Show, Good Morning America, Entertainment Tonight, Oprah, Don Imus’s new ABC radio show, etc.

Takeaway Points to Consider:

* The Internet is the greatest repository of human knowledge ever assembled—great, good, bad and ugly.

* If you launch a slash-and-burn campaign against a competitor, be prepared bad stuff from your past will be found and used against you.

* If you let your domain name inadvertently expire, someone will grab it—and steal your business.

* When the powerful savage the weak, public sympathy is with the little guy.

* “He who hath the gold makes the rules.”
Armand Hammer

* “When you work seven days a week, 14 hours a day, you get lucky.”
—Armand Hammer

* “Last night, referring to some of our modern business tycoons—speifically, Armand Hammer—I said that when they’re talking, they’re lying, and when they’re quiet, they’re stealing. This wasn’t my witticism; it was used [long ago] to describe the robber barons.”
—Charlie Munger [partner of Warren Buffett], 2004 Berkshire Hathaway Annual Meeting

Web Sites Related to Today's Edition:

Laura Meckler’s Wall Street Journal Story of Hammer v. Hammer
http://online.wsj.com/article/SB119153595971649457.html

Dave Pahl’s Hammer Museum, Haines, Alaska
http://www.hammermuseum.org/

Armand Hammer Museum, Los Angeles
http://www.hammer.ucla.edu/

Armand Hammer’s Mistress
http://www.edwardjayepstein.com/archived/hammer.htm

Edward Jay Epstein’s Web Site
http://www.edwardjayepstein.com

“Dossier: The Secret History of Armand Hammer” by Edward Jay Epstein
http://tinyurl.com/27owpn

FBI Dossier on Armand Hammer, 658 pp, Released under FOIA
http://foia.fbi.gov/foiaindex/hammerop.htm
 
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COMMENTS

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Most Recent Comments:
Sid Bursten - Posted on October 17, 2007
Hammer's father Julius Hammer was a dedicated socialist and a senior official of the Socialist Labor Party with contacts among socialist and communist throughout the world. When his son was born in 1898, his father named him Armand Hammer as a tribute to the "Arm and Hammer" symbol of the Socialist Labor Party. Hammer later attributed his name to a character in a French novel, but he traded on the actual meaning when he cut deals with Vladimir Lenin that made him wealthy in order to disguise the money-laundering he did for the Soviets to finance their espionage rings in the U.S. and elsewhere. Though I live only about an hour away from the Armand Hammer Museum, I have never and will never grace it with my presence. A more despicable character would be hard to find . . . and he seems to have passed on his personality to the guys who run the museum with his bad name and poor taste.
Tom Sechrest - Posted on October 16, 2007
Denny--Another great example of how a news story can be written so as to clearly help the reader choose sides. Who in the entire world sides with the museum? TOM
Wash Phillips - Posted on October 16, 2007
Looked into Hammer?s FBI dossier, thanks to the website you provided, Denny. Pretty clear ?the subject? (in J.Edgar Hoover parlance) was no communist. But what?

A capitalist and rank opportunist with either an acute trading eye or excellent advisors behind the scenes. Dealt wherever he made a buck, anyplace on the supply chain, selling pencils or natural gas. Nothing new there.

Yes, he worked around governments, especially ours and the Soviets. Could he have secretly played a role in keeping the Cold War cold?

One wonders where he found the time to make so many babies. Not to mention unhappy ladies.

You described the L.A. Museum as ho-hum. In an age of magnificent architectural wrapping of various collections, Armand?s place (to judge from your thumbnail) is also undistinguished.

Too bad he turned out such a piker.
Dean - Posted on October 16, 2007
Thanks for the lesson in how to show up at a PR Gunfight!
Debbie - Posted on October 16, 2007
Great story as usual Denny! AND you outlined beautifully what a PR person can do to help. But what about us little folks who run sites out here?

What can we do to help this guy?
Suggestions??????
Kristin Rohan - Posted on October 16, 2007
I'm buying everyone on my Holiday list Alaska Hammer Museum T-shirts.

Thanks, Denny - I could use a cold Stoli after reading this sad atrocity.
Mike McCormick - Posted on October 16, 2007
Hi Denny,
Armand Hammer was a commie. Nothing he did should surprise any of us.
A hammer museum in Haines, Alaska, took in $8,104 last year? Wow!
Mike McC
Kevin Nielsen - Posted on October 16, 2007
Geez Denny, you really got exercised over this one. Thanks for highlighting the story; I hope you'll keep us posted on the ultimate outcome. The interesting story from Minnesota this morning has similar little vs big qualitities: It was announced that a wrongful death suit by the Sjodin family against the State of MN has been settled for $300K. Reason? The State let a convicted sex offender out of jail who later abducted and killed the Sjodin daughter. Subsequent to this horrible occurence, the Governor has taken measures to tighten up the parole and incarceration guidelines for level 3 sex offenders. Many questions are raised when the small and less powerful run up against the big and powerful; be it an organization, state entity or an individual. What is legal? What is ethical? What is moral? What infringes on rights? What is the right thing to do? How good to live in a country where the little guy generally has a chance to gain redress for grievances and where the media can challenge the despicable.
Jim Bennett - Posted on October 16, 2007
Yay for the little guy!!

I remember Armand Hammer and could never figure out why the USSR was so bad and yet he moved back and forth with impunity...

As usual a very interesting read.. Thanks Denny!
Click here to view archived comments...
Archived Comments:
Sid Bursten - Posted on October 17, 2007
Hammer's father Julius Hammer was a dedicated socialist and a senior official of the Socialist Labor Party with contacts among socialist and communist throughout the world. When his son was born in 1898, his father named him Armand Hammer as a tribute to the "Arm and Hammer" symbol of the Socialist Labor Party. Hammer later attributed his name to a character in a French novel, but he traded on the actual meaning when he cut deals with Vladimir Lenin that made him wealthy in order to disguise the money-laundering he did for the Soviets to finance their espionage rings in the U.S. and elsewhere. Though I live only about an hour away from the Armand Hammer Museum, I have never and will never grace it with my presence. A more despicable character would be hard to find . . . and he seems to have passed on his personality to the guys who run the museum with his bad name and poor taste.
Tom Sechrest - Posted on October 16, 2007
Denny--Another great example of how a news story can be written so as to clearly help the reader choose sides. Who in the entire world sides with the museum? TOM
Wash Phillips - Posted on October 16, 2007
Looked into Hammer?s FBI dossier, thanks to the website you provided, Denny. Pretty clear ?the subject? (in J.Edgar Hoover parlance) was no communist. But what?

A capitalist and rank opportunist with either an acute trading eye or excellent advisors behind the scenes. Dealt wherever he made a buck, anyplace on the supply chain, selling pencils or natural gas. Nothing new there.

Yes, he worked around governments, especially ours and the Soviets. Could he have secretly played a role in keeping the Cold War cold?

One wonders where he found the time to make so many babies. Not to mention unhappy ladies.

You described the L.A. Museum as ho-hum. In an age of magnificent architectural wrapping of various collections, Armand?s place (to judge from your thumbnail) is also undistinguished.

Too bad he turned out such a piker.
Dean - Posted on October 16, 2007
Thanks for the lesson in how to show up at a PR Gunfight!
Debbie - Posted on October 16, 2007
Great story as usual Denny! AND you outlined beautifully what a PR person can do to help. But what about us little folks who run sites out here?

What can we do to help this guy?
Suggestions??????
Kristin Rohan - Posted on October 16, 2007
I'm buying everyone on my Holiday list Alaska Hammer Museum T-shirts.

Thanks, Denny - I could use a cold Stoli after reading this sad atrocity.
Mike McCormick - Posted on October 16, 2007
Hi Denny,
Armand Hammer was a commie. Nothing he did should surprise any of us.
A hammer museum in Haines, Alaska, took in $8,104 last year? Wow!
Mike McC
Kevin Nielsen - Posted on October 16, 2007
Geez Denny, you really got exercised over this one. Thanks for highlighting the story; I hope you'll keep us posted on the ultimate outcome. The interesting story from Minnesota this morning has similar little vs big qualitities: It was announced that a wrongful death suit by the Sjodin family against the State of MN has been settled for $300K. Reason? The State let a convicted sex offender out of jail who later abducted and killed the Sjodin daughter. Subsequent to this horrible occurence, the Governor has taken measures to tighten up the parole and incarceration guidelines for level 3 sex offenders. Many questions are raised when the small and less powerful run up against the big and powerful; be it an organization, state entity or an individual. What is legal? What is ethical? What is moral? What infringes on rights? What is the right thing to do? How good to live in a country where the little guy generally has a chance to gain redress for grievances and where the media can challenge the despicable.
Jim Bennett - Posted on October 16, 2007
Yay for the little guy!!

I remember Armand Hammer and could never figure out why the USSR was so bad and yet he moved back and forth with impunity...

As usual a very interesting read.. Thanks Denny!