Samuel Zemurray (born Schmuel Zmurri; January 18, 1877 – November 30, 1961), nicknamed "Sam the Banana Man", was an American businessman who made his fortune in the banana trade. He founded the Cuyamel Fruit Company and later became president of the United Fruit Company, the world's most influential fruit company at the time. Both companies played highly controversial roles in the history of several Latin American countries and had a significant influence on their economic and political development.
Early life
Zemurray's birth name was Schmuel Zmurri (, , Shmuel Davidovich Zmura). He was born to a poor Jewish family in Kishinev, Bessarabia, Russian Empire (present-day Chişinău, Moldova). His grandfather, Mendel Hirsh of Shargorod, was a Klezmer musician and bandleader. Zemurray grew up on a wheat farm. After his father died, he emigrated to America with his aunt in 1891 at age 14. After landing in New York, he settled in Selma, Alabama, where his uncle owned a general store. Zemurray worked many odd jobs during his youth, being a carpenter's assistant, delivery boy, traveling merchant, and housecleaner. Eventually, he saved enough money to bring his siblings from Europe to the United States.
Career
Career beginnings
Zemurray encountered bananas for the first time in Selma in 1893. At the time, bananas were considered a new and exotic delicacy in the United States, and the industry was growing quickly. Zemurray went to the port of Mobile, Alabama in 1895 to enter the banana trade. Because bananas ripen quickly, the banana trade relied on the ability to quickly bring the produce to market. In Mobile, Zemurray specialized in buying cheap bananas in danger of being overripe and quickly transporting and selling them in the surrounding region by rail. Starting with only $150, he had saved $100,000 by age 21. His success earned him the nickname "Sam the Banana Man".
In 1903, Zemurray signed a contract with United Fruit, the dominant company in the banana trade. Along with his partner, Ashbell Hubbard, the newly-formed Hubbard-Zemurray Company would buy and distribute United Fruit's ripest bananas. United Fruit itself bought a portion of Hubbard-Zemurray. In 1905, Zemurray moved to New Orleans and the company acquired Thatcher Brothers Steamship Company. They also acquired the Cuyamel Fruit Company and started using that name for the company. At this time, the company imported bananas from Central American farmers, but did not grow bananas of their own.
In 1910, Zemurray bought 5,000 acres (20 km²) of land along the Cuyamel River in Honduras, near the town of Omoa. He then continued to borrow money and buy more lowland forest land in Honduras, well-suited for growing bananas. He developed this land by adding plantations, railroads, and bridges. The work was done largely by Jamaican workers, but Zemurray also liked to participate in the physical labor of the fields. At this point, Hubbard believed that Cuyamel Fruit Company's debts had grown too large, and Zemurray bought his share of the business.
Honduran coup
Zemurray had increased the efficiency of his business through bribery and special deals with the Honduran government. But in 1910, the government of Honduras was working to reschedule their sovereign debt owed to the United Kingdom. United States Secretary of State Philander C. Knox facilitated the negotiations, which would place agents of bankers J.P. Morgan and Company in the country's customs offices to collect the taxes needed to repay the debt. Zemurray feared that the enforcement of these taxes would ruin his business, and he lobbied Knox to make the deal more favorable to him.
Knox made no concessions for Zemurray, and told him not to meddle in Honduran affairs. In spite of this instruction, Zemurray devised a plan to overthrow Honduran president Miguel Dávila in order to prevent the deal. He recruited mercenary Lee Christmas, who in turn recruited a force of about 100 other mercenaries in New Orleans, including famed Jewish soldier Sam Dreben. They sailed to Honduras in a former United States Navy vessel, where they began a war to install exiled Honduran former president Manuel Bonilla, who had been living in New Orleans. Gaining rebel soldiers from the local population, the coup was successful, and Bonilla was inaugurated on February 1, 1912. He then rewarded Zemurray with very favorable tax and land concessions for Cuyamel Fruit Company.