Conrad and Lady Black: Dancing on the Edge. Tom Bower

Чтение книги онлайн.

СКАЧАТЬ twenty-nine-year-old accountant was managing a factory in Montreal producing propellers for Allied war planes. With pride, he recounted how his company was the only Canadian government-owned manufacturer during the war to earn a profit. But there was also frustration. The graduate from Winnipeg, a provincial outpost, damned his work as unglamorous and his colleagues as ‘a hopeless bunch’.¹ In July 1944 his future appeared lacklustre, until the banker Edward P. Taylor, also from the Canadian provinces, offered an escape. Unlike George Black, Taylor had identified a recipe for great personal wealth.

      Ten years older than Black, Taylor enjoyed the expensive lifestyle of a clever but unpopular speculator who paraded as a prominent racehorse owner at the Jockey Club of Canada. In 1944 he was convinced that the end of the war would unleash huge prosperity. To exploit that opportunity, he established Argus with a group of like-minded Toronto investors, including Eric Phillips and John ‘Bud’ McDougald. Based at 10 Toronto Street, an elegant, two-storey, neo-classical building not far from Bay Street, the city’s financial area, the partners pooled their assets invested in Canadian companies. Among those investments was Canadian Breweries, which George Black was invited to manage on the company’s behalf.

      During those all-night sessions, which started in Conrad’s childhood, George Black regaled his son with stories of his struggle to transform Canadian Breweries into an international success. Promoted as the company’s president in 1950, he had savagely cut costs, dismissed staff and created success from disaster. The prize was phenomenal growth – sales and profits had tripled – delivering Taylor’s ambition to control the world’s biggest brewery, embracing Canada, the USA and Britain. The downside was the effect on Black’s health. Insomniac and increasingly intoxicated, he would arrive in his office at midday, boasting that because he delegated authority his presence was not required. Management of the empire, he insisted, could be achieved by telephone, without the need for him to visit the factories. The essence of business, George emphasised to his son, was strategy rather than micro-management. In reality, ‘delegation’ had become George Black’s excuse to recover from hangovers and the morning’s vodka.

      High among Black’s priorities was the need to confront the trade unions, which he despised. In 1958, by forging an alliance with other brewers, he challenged the unions to remove their restrictive practices, provoking an acrimonious strike. As his profits evaporated, Taylor lost confidence in Black. He wanted to avoid strikes and reverse the decentralisation. ‘You’re out of your skull,’ Black told Taylor. In October 1958 George Black was fired. He damned Taylor, cleared his desk and went home. At forty-seven, he was unemployed, and had received no thanks for his achievements. From the sidelines he watched as Canadian Breweries declined. No longer the world’s biggest brewer, the company was sold in 1968 to a competitor.

      Bitter but realistic, George Black noted how greed, arrogance and dishonesty had become the hallmark of Argus’s directors. While some in Bay Street embodied the best of Presbyterian honesty, Taylor and Bud McDougald, the company’s president, were financial cowboys enjoying a reckless lifestyle, avoiding taxes and cheating the minority shareholders. At the hub of that intrigue, McDougald used intimidation and flattery to disguise rampant dishonesty, known in Toronto Street as ‘pushing the envelope’. As George Black understood so well, McDougald was using Argus, a company floated on the Toronto stock exchange, as his private piggybank, spending shareholders’ money to fund a tycoon’s way of life.

      Well-dressed and shamelessly ostentatious, McDougald played the mogul to perfection – serving dinner on gold-plated china, hanging chandeliers in his garage, travelling in custom-built cars and private planes, and walking with an undisguised swagger to impress his audience. Teetotal, uneducated but shrewd, the former bond salesman posed as Canada’s pre-eminent social and commercial aristocrat, suavely speaking way above his financial weight, and accustomed to fawning treatment. Unlike other Canadians, McDougald drove around London like royalty in a Rolls-Royce Silver Wraith, mixing with nobles like the Duke of Wellington, the Marquess of Abergavenny and Lord Crathorne, and standing near the Queen when she inspected her racehorses being trained in his stables at Kingsclere in Hampshire.² In Palm Beach, McDougald was the President of the Everglades Club, the social centre for the local super-rich, where Jews were not admitted as members, or even for lunch. In future years this did not diminish Conrad Black’s apparent awe for McDougald’s technique of buying people off with presents and perks.

      Argus’s operations were fundamentally dishonest. In their private capacity the company’s directors bought shares in companies involved in the media, catering, retail, chemicals, forestry and agriculture, including Massey-Ferguson, one of the world’s biggest farm equipment manufacturers. They then resold those same shares to Argus, at a profit. The casualties of this insider dealing were Argus’s public shareholders. The directors’ dishonesty, as George Black had impressed upon his son, was compounded by another ruse.

      Argus controlled assets worth $4 billion, but that control did not reside with the shareholders. Instead, the company was run by the six principal shareholders of a private company called Ravelston, named after a Scottish estate owned by McDougald’s ancestors. Before his dismissal, George Black had bought 22.4 per cent of Ravelston’s shares; McDougald and Phillips each held 23.6 per cent. Aware of George Black’s astute investment and his acute understanding of the Argus directors’ subterfuge, McDougald had, from an early stage, understood the benefits of flattering Conrad Black.

      In 1965, on Conrad’s twenty-first birthday, Bud McDougald gave the precocious young man a painting of Napoleon and, unprecedentedly, membership of the Toronto Club, the meeting place for the city’s elite, entry to which was zealously controlled by McDougald himself. The advantages for Conrad Black were remarkable. Toronto’s commercial life was fixed by the club’s members as they ate, drank and played within the protected building. Finance for their deals was supplied by Canada’s leading financial institution, the Canadian Imperial Bank of Commerce (CIBC), substantially influenced by McDougald, who was a director. To help his protégé’s career McDougald arranged for Black to become, at thirty-two, the youngest director in the bank’s history. That generosity split Conrad’s loyalties. Despite his father’s anger, he practically worshipped McDougald’s mystique and power. While puffing a cigar in the Toronto Club, Black would enjoy repeating McDougald’s homily, ‘If these bankers had any brains, we’d be lending them money and they’d be getting rich, instead of the other way round.’

      Although George Black resented McDougald’s success, he retained his stake in Ravelston. At some stage, he calculated, there would be an opportunity for revenge and profit. That ambition was inculcated into Conrad Black. Steeped in the minutiae of Argus’s personality conflicts and financial dubieties, Conrad emerged with a sophisticated understanding of the inherent deception of the way in which the company was run. Argus rarely held more than a 25 per cent stake in a company, yet McDougald and Taylor behaved like the proprietors, as if they were the owners of the whole lot. Similarly, by assertion and performance, they intimidated Argus’s minority shareholders into believing that they were entitled to behave as the proprietors of the whole company. Their successful intimidation of the little people was a seminal inspiration to Conrad Black.

      Besides his father and Bud McDougald, there was a third formative influence on Conrad Black: the lessons of history. Even before his teens, Conrad admired from his copious reading the rise from obscurity to immortal fame of giants who irreversibly changed mankind’s fate. Egoistic self-righteousness, he realised, could overcome adversity, and popular acclaim bestowed permanent glory. The mere appearance of Napoleon or Abraham Lincoln among soldiers and supporters had raised hopes and entrenched loyalty to the leader. History’s heroes, Black learned, exploited their opponents’ weaknesses, outwitted their deceptions, manipulated their ambitions and assembled a coalition of allies to secure victory. Nurturing his own fantasies of eventually standing in the limelight and enjoying similar grandeur, he awaited his chance for revenge. Patience, planning and perfidy would be required to destroy his father’s tormentors.

      On СКАЧАТЬ