  
.
.Robert
MAXWELL
Ian Robert Maxwell
(10 June 1923 – 5 November 1991) was a Czechoslovakian-born
British media proprietor and former Member of Parliament (MP), who
rose from poverty to build an extensive publishing empire.
Early life
Robert Maxwell was born Ján
Ludvík Hoch in the small town of Slatinské Doly, Carpathian
Ruthenia, the easternmost province of pre-World War II
Czechoslovakia (now Solotvino, Ukraine) into a poor
Yiddish-speaking Jewish family. His parents were Mechel Hoch, and
Hannah Slomowitz. He had 6 siblings. In 1939, the area was
reclaimed by Hungary. Most members of his family were gassed in
Auschwitz after Hungary was occupied in 1944 by its former ally,
Nazi Germany but he had already escaped, arriving in Britain in
1940 as a 17-year-old refugee. He joined the British Army Pioneer
Corps in 1941 and transferred to the North Staffordshire Regiment
in 1943. He fought his way across Europe from the Normandy
beaches, at which time he was still a sergeant, to Berlin. His
intelligence and gift for languages gained him a commission in the
final year of the war, and eventual promotion to captain, and in
January 1945 he received the Military Cross. It was during this
time that British Intelligence changed his name several times
(Maxwell was in British Intelligence, and this was a means of
protecting him from the Germans), finally settling on Ian Robert
Maxwell, which was the last name he was using at the end of the
war. He almost never used the "Ian", however; he only retained it
as a vestige of his original name. Also in 1945, he married
Elisabeth "Betty" Meynard, a French Protestant woman, with whom he
had nine children with the goal of "recreating the family he lost
in the Holocaust. Five of them were subsequently employed within
his companies; two met with tragedy, a three-year old daughter
Karine died of leukemia; and his eldest son (at the time 15)
Michael was severely injured after being driven home from a post
Christmas party in 1961 when his driver fell asleep at the wheel.
Michael never regained consciousness for the next seven years.
After the war, Maxwell first
worked as a newspaper censor for the British military command in
Berlin in Allied-occupied Germany. Later, he used various contacts
in the Allied occupation authorities to go into business, becoming
the British and United States distributor for Springer Verlag, a
publisher of scientific books. In 1951 he bought three quarters of
Butterworth-Springer, a minor publisher; the other one quarter was
held by the experienced scientific editor Paul Rosbaud. They
changed the name of the company to Pergamon Press and rapidly
built it into a major publishing house. By the 1960s, Maxwell was
a wealthy man, while still espousing in public the socialism of
his youth. However, it would appear that he already had been
identified as a problem for some people. An obituary for the
Barclays banker Thomas Ashton states: "One Oxford resident who
came to Ashton's attention was Robert Maxwell – to whom Ashton
firmly forbade his managers to lend."
Member of
Parliament
In 1964 he was elected to the
House of Commons for the
Labour Party, and was MP for
Buckingham until he lost his seat in 1970 to the Conservative
William Benyon. Maxwell was a prosecution witness in the
obscenity case concerning the American novel
Last Exit to Brooklyn in 1966. He enjoyed mixed popularity
in the Labour Party, being perceived by some as arrogant and
domineering, but also as a man who got things done. Then Prime Minister Harold Wilson stated,
"It was quite clear from the outset that Bob would make his mark
in the House of Commons, because he was a vigorous speaker with
something to say."
In 1969
Saul Steinberg, a known asset stripper, who headed a company
then known as Leasco Data Processing Corporation, was interested
in a strategic acquisition of Pergamon. Steinberg claimed that
during negotiations, Maxwell had falsely stated that a subsidiary
responsible for publishing encyclopedias was extremely profitable.
This led to a one-sided inquiry (Maxwell was never allowed to
counter the claims or submit evidence on his behalf) by the
Department of Trade and Industry (DTI) under the Takeover
Code, then in force, and at the same time the U.S. Congress was
investigating Leasco's takeover practices. The DTI report, which
had no legal standing, concluded: "We regret having to conclude
that, notwithstanding Mr Maxwell's acknowledged abilities and
energy, he is not in our opinion a person who can be relied on to
exercise proper stewardship of a publicly quoted company." It was
found that Maxwell had contrived to maximise Pergamon's share
price through transactions between his private family companies.
This caused Maxwell to lose control of Pergamon in the United
Kingdom—but not in the United States, whereupon Steinberg
purchased Pergamon for a song. "Justice Forbes in September 1971
was critical of the inspectors, 'They had moved from an
inquisitorial role to accusatory one and virtually committed the
business murder of Mr. Maxwell." He further continued that the
trial judge would probably find that the "inspectors had acted
contrary to the rules of national justice." Steinberg nearly bankrupted the company, and
Maxwell, backed by his editors, resumed control of Pergamon, made
it once again successful, and eventually sold the company.
Business
activities
In 1970 Maxwell established the
Maxwell Foundation in Liechtenstein. In 1974 he reacquired PPL. In
1981 Maxwell acquired the British Printing Corporation (BPC) and
changed its name to the British Printing and Communication
Corporation (BPCC) and then to Maxwell Communications Corporation.
The company was later sold off to a management buy-out, and is now
known as Polestar. In July 1984 Maxwell acquired Mirror Group
Newspapers from Reed International plc. MGN were publishers of the
Daily Mirror, a pro-Labour Party newspaper. He also bought
the American interests of the Macmillan publishing house. The
Mirror was the first National newspaper to be printed in color.
By the 1980s Maxwell's various companies owned the Daily
Mirror, the
Sunday Mirror, the Scottish
Daily Record and
Sunday Mail and several other newspapers, Pergamon Press,
Nimbus Records, Collier books, Maxwell Directories,
Prentice Hall Information Services, Macmillan (US) publishing,
and the
Berlitz language schools. He also owned a half-share of MTV in
Europe and other European
television interests, Maxwell Cable TV and Maxwell
Entertainment. In 1987 Maxwell purchased part of
IPC Media to create
Fleetway Publications.
In June 1985, Maxwell announced a takeover of
Sir Clive Sinclair's ailing
home computer company,
Sinclair Research, through Hollis Brothers, a Pergamon Press
subsidiary.
However the deal was aborted in August 1985.
Maxwell pioneered the dissemination of highly specialized
scientific information, responding to the exponential growth of
investment in academic research, and this is Maxwell's most
important legacy. Maxwell founded over 600 specialized scientific
and educational journals, which are an indispensable reference and
research tool for the dissemination of scientific and educational
thought throughout the world. By 1988 some 37 years after Maxwell
acquired Pergamon Press, Maxwell's publishing empire had grown to
having over 3500 books in print, including 7000 out-of-print
titles, and was publishing some 400 scientific journals a year. At
the same time, Maxwell's links with the
Eastern European
totalitarian regimes resulted in a number of biographies
(normally considered to be
hagiographies) of those countries' then leaders, with
interviews conducted by Maxwell, for which, in the UK, he received
much derision.
Maxwell was also well known as the chairman of
Oxford United Football Club, saving them from bankruptcy and
leading them into the top flight of English football, winning the
League Cup in 1986. Maxwell bought into
Derby County F.C. in 1987. He also attempted to buy
Manchester United in 1984, but refused to pay the price that
the owner
Martin Edwards had put on the club.
Business
difficulties
Maxwell was known to be litigious against those who would speak
or write against him. The satirical magazine
Private Eye lampooned him as a "Cap'n Bob" and the
"bouncing Czech." Maxwell took out several libel actions against
Private Eye, one resulting in the magazine losing an
estimated £225,000 and Maxwell using his commercial power to hit
back with
Not Private Eye.
Most popular and newspaper accounts of Maxwell's life only
focus on the last seven years of his life, after his acquisition
of the Mirror Newspaper Group, when he embarked on a massive
expansion of his business empire, which led to its eventual
collapse after his sudden death. In the late 1980s, Maxwell was
purchasing publishing companies and media properties at the very
top of the market. In 1988, Maxwell purchased MacMillan Publishing
for a staggering 2.6 billion dollars, which by some estimates was
over three times its value. In 1990 he launched an ambitious new
project, a transnational newspaper called
The European. However, the following year he was forced to
sell his successful Pergamon Press and Maxwell Directories to
Elsevier for £440 million to cover his massive debts, but he
used some of this money to buy the ailing
New York Daily News. At the time, he was hailed in New
York City as the man who "saved the Daily News."
By late 1990,
investigative journalists, mainly from the rival Murdoch
papers, were exploring Maxwell's manipulation of a lottery game he
was running in the Daily Mirror.
Death
On 5 November 1991, at the age of 68, Maxwell is presumed to
have fallen overboard from his luxury yacht, the
Lady Ghislaine, which was cruising off the
Canary Islands, and his body was subsequently found floating
in the Atlantic Ocean.
He was buried on the
Mount of Olives in
Jerusalem. The official verdict was accidental
drowning, though some commentators have surmised that he may
have committed
suicide, and others that he was
murdered. His death has spawned a whole cottage industry of
conspiracy theories, which have little basis in fact.
Politicians were swift to pay their tributes. The then Prime
Minister,
John Major, said Maxwell had given him 'valuable insights'
into the situation in the Soviet Union during the attempted coup.
He was a 'great character', Major added.
Neil Kinnock, the then Labour Party leader, spoke of the
former Labour MP for Buckingham, from 1964–70, as a man with "such
a zest for life . . . Bob Maxwell was a unique figure who
attracted controversy, envy and loyalty in great measure
throughout his rumbustious life. He was a steadfast supporter of
the Labour Party". It was later alleged that Maxwell had been
financing the Labour leader's private office and that Maxwell was
an agent of MI6, the United Kingdom's Secret Intelligence Service.
Shortly before Maxwell's death, a former Mossad officer named
Ari Ben-Menashe had approached a number of news organizations
in Britain and the United States with the allegation that Maxwell
and the Daily Mirror's foreign editor,
Nick Davies, were both long time agents for the
Israel intelligence service,
Mossad. Ben-Menashe also claimed that in 1986 Maxwell had
tipped off the Israeli Embassy in London that
Mordechai Vanunu had given information about Israel's nuclear
capability to the
Sunday Times, then to the
Daily Mirror, (Vanunu was subsequently lured from London,
where the Sunday Times had him in hiding, to Rome, whence
he was kidnapped and returned to Israel, convicted of
treason, and imprisoned for 18 years.)
No news organization would publish Ben-Menashe's story at
first, because of Maxwell's famed litigiousness (through lawyers
Maislish & Co.), but eventually
New Yorker journalist
Seymour Hersh repeated some of the allegations during a press
conference in London held to publicize The Samson Option,
Hersh's book about Israel's nuclear weapons. On 21 October 1991,
two
Members of Parliament,
Labour MP
George Galloway and
Conservative MP
Rupert Allason (who writes books on the world of espionage
under the pseudonym Nigel West) agreed to raise the issue in the
House of Commons (with the protection of
Parliamentary Privilege which allows MPs to ask questions in
Parliament without risk of being sued for defamation), which in
turn meant that British newspapers were able to report what had
been said without fear of being sued for libel. Nevertheless,
writs were swiftly issued by Mirror Group Solicitors on
instruction from Maxwell, who called the claims "ludicrous, a
total invention". Maxwell then sacked Nick Davies.
The close proximity of his death to these allegations, for
which Ben-Menashe had offered no evidence, served to heighten
interest in Maxwell's relationship with Israel, and the Daily
Mirror has since published claims, again without evidence,
that he was assassinated by Mossad after he attempted to
blackmail them.
Maxwell was given a funeral in Israel better befitting a head
of state than a publisher, as described by author
Gordon Thomas:
On 10 November 1991, Maxwell’s funeral took place on the
Mount of Olives in
Jerusalem, across from the Temple Mount. It had all the
trappings of a state occasion, attended by the country’s
government and opposition leaders. No fewer than six serving and
former heads of the Israeli intelligence community listened as
Prime Minister
Shamir eulogized: "He has done more for Israel than can
today be said" (Gideon's Spies: The Secret History of the
Mossad, St. Martin's Press, 1999).
A hint of Maxwell's service to the Israeli state was provided
by Loftus and Aarons, who described Maxwell's contacts with Czech
anti-Stalinist Communist leaders in 1948 as crucial to the Czech
decision to arm Israel in their War of Independence that year.
Czech military assistance was both unique and crucial for the
fledgling state as it battled for its existence. It was Maxwell's
covert help in smuggling aircraft parts into Israel that led to
the Jewish state having air supremacy during their 1948 War of
Independence.
Nevertheless, Jewish leaders were additionally grateful for
Maxwell's vital and material help in securing the freedom and
immigration between 1988 -1991 of over one million Russian Jews
through his friendship with Michel Gorbachev. Over 700 hundred
thousand Russian Jews emigrated to Israel.
Events after
his death
Maxwell's untimely death triggered a flood of instability with
banks frantically calling in their massive loans. His two young
sons Kevin and Ian struggled to hold the empire together, but were
unable to prevent its collapse. It emerged that, without adequate
prior authorisation, Maxwell had used hundreds of millions of
pounds from his companies' pension funds to shore up the shares of
the Mirror Group, to save his companies from bankruptcy.
Eventually, the pension funds were replenished with monies from
investment banks Shearson Lehman and Goldman Sachs, as well as the
British government. After the death of Maxwell, the receivers of
the Maxwell estate, instead of allowing an orderly sale of the
Maxwell companies, allowed them to be sold at firesale prices.
This meant that an enormous amount of money that could have
reimbursed the pension fund were needlessly squandered.
The Maxwell companies filed for bankruptcy protection in 1992.
His son,
Kevin Maxwell was declared bankrupt with debts of £400
million. In 1995 Maxwell's sons Kevin and Ian and two other former
directors went on trial for conspiracy to defraud, but were
unanimously acquitted by a twelve man jury in 1996.
In 2008, Maxwell's wife published her memoirs, A Mind of Her
Own, which sheds light on her life with Maxwell when the
publishing magnate was ranked as one of the richest people in the
world.
A BBC
drama titled
Maxwell covering his life shortly before his death
starring
David Suchet was aired on 4 May 2007.
Maxwell, through his software company
Mirrorsoft, played a role in the acquisition of the video game
Tetris from its developers in the
Soviet Union and its eventual marketing and sale in the West.
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