Master Metals Company

Master Metals Company. It was a significant American trading and smelting enterprise founded in the late 1920s by the industrialist Armand Hammer. The company played a crucial role in the international non-ferrous metals market, particularly in the trade of lead, zinc, and copper, with extensive dealings in the Soviet Union during a pivotal era of East-West trade. Its operations and eventual dissolution are closely tied to the business ventures and political connections of its founder.

History

The company was established in New York City in 1928 by Armand Hammer, shortly after his initial business ventures in the Soviet Union under a concession agreement with the Bolshevik government. This early work involved a pencil factory in Moscow, but Hammer sought larger industrial opportunities. Master Metals was formed to capitalize on the Soviet Union's need to export raw materials like asbestos and minerals to earn foreign currency, facilitated by Hammer's unique access to officials like Felix Dzerzhinsky of the Cheka. During World War II, the company's role expanded under the Lend-Lease program, where it acted as a purchasing agent for the Soviet government, securing strategic materials. The postwar period saw the company navigate the complexities of the Cold War, with Hammer leveraging his relationships with figures such as Franklin D. Roosevelt and later Nikita Khrushchev to maintain trade channels, though increasing political scrutiny from entities like the House Un-American Activities Committee created challenges.

Operations and products

The core business involved the international trade and smelting of base metals. It specialized in importing lead and zinc concentrates, often sourced from mines in the Soviet Union, for processing and sale on the global market. The company also dealt significantly in copper, manganese, and other industrial minerals critical for manufacturing and armament production. Its operations included ownership and management of smelting facilities, and it held a notable long-term contract to market all Soviet asbestos exports to the United States. This contract with the Ministry of Foreign Trade (Soviet Union) provided a stable supply of a key material for the construction industry and was a cornerstone of its business for decades. The company's activities were integral to the supply chain for various Allied industries during the war and in the reconstruction efforts of the 1950s.

Corporate structure and leadership

The company was privately controlled by Armand Hammer, who served as its president and principal decision-maker throughout its existence. Its corporate headquarters were maintained in New York City, with operational offices likely in key port and industrial cities. The board and executive structure were closely held, reflecting Hammer's hands-on, entrepreneurial style and his use of the company as a vehicle for his broader international dealings. Key personnel often had backgrounds in international trade, metallurgy, and finance, and the company worked closely with major financial institutions like the Chase Manhattan Bank for credit and transactions. Its corporate life was ultimately directed by Hammer's shifting focus toward other ventures, including Occidental Petroleum, which he began to build in the late 1950s.

Legacy and impact

The company is primarily remembered as a pioneering and controversial force in East-West trade during the interwar and early Cold War periods. It demonstrated the potential for commercial engagement between the United States and the Soviet Union despite profound political differences, setting a precedent for later multinational corporations. The experience and capital gained from Master Metals provided Armand Hammer the foundation to build Occidental Petroleum into a global energy conglomerate. Its history illuminates the intersection of business, diplomacy, and intelligence during a tense geopolitical era, with Hammer's activities occasionally drawing the attention of the Federal Bureau of Investigation and the Central Intelligence Agency. The company's assets were eventually folded into Hammer's growing empire, marking the end of a distinct entity but the continuation of its founder's influence on international commerce.

Category:Defunct companies based in New York City Category:Metals companies of the United States Category:Companies established in 1928 Category:Companies disestablished in 1956