Basil Zaharoff
Basil Zaharoff was a prominent arms dealer born to Greek parents in Turkey and later moved to a modest area near Istanbul. He began his career in the arms trade in the late 19th century, quickly gaining success by leveraging his language skills and business acumen. Zaharoff initially worked for the Swedish arms manufacturer Nordenfelt, where he was instrumental in selling submarines to Greece, Turkey, and Russia. His career flourished as he became a key figure in the munitions industry, notably after the Maxim gun company merged with Nordenfelt.
By the time of World War I, Zaharoff had amassed significant wealth through strategic investments and by supplying arms to the Allied forces. He expanded his ventures into the oil industry and even took control of the Casino de Monte Carlo, further increasing his fortune. Zaharoff's estimated net worth at his death in 1936 was over $500 million, reflecting his mastery of business and investment. His legacy is marked by his profound impact on the international arms market and his relationships with influential leaders, which he cultivated through financial gifts and strategic partnerships. Zaharoff's contributions were recognized with multiple honors, including being named a Knight and later a Grand Cross of the Legion of Honor in France.
Subject Terms
Basil Zaharoff
Greek arms dealer
- Born: October 6, 1849
- Birthplace: Muğla, Ottoman Empire (now in Turkey)
- Died: November 27, 1936
- Place of death: Monte Carlo, Monaco
Zaharoff made a fortune by selling munitions to opposing sides in numerous wars. His wealth and scheming business practices established him as a man of great power in many countries. During World War I, statesmen and leaders of the Allied forces typically consulted with Zaharoff before planning significant attacks.
Source of wealth: Trade
Bequeathal of wealth: Children; educational institution
Early Life
Basil Zaharoff (BAZ-ihl ZAH-uhr-of) was born to Greek parents while they were living in Turkey. When Zaharoff was about six years old, his family moved to Tatavla, a poor area near Constantinople (now Istanbul). Young Zaharoff enjoyed learning foreign languages and had a great ability to do so. He sought business experience by trying his hand at a variety of jobs, including tourist guide, fireman, and money changer.
First Ventures
On October 14, 1877, Zaharoff was hired as the sales representative for the Swedish arms manufacturer Nordenfelt. Shortly thereafter, Zaharoff sold a steam-driven submarine built by Nordenfelt to Greece. He then convinced Turkey to buy two of the submarines and Russia to do likewise in order to maintain a military balance in the Balkans. Zaharoff was paid well for his efforts and was off to a spectacular career as an arms dealer.
Through some clever maneuvering instigated by Zaharoff, Hiram Stevens Maxim, inventor of the automatic machine gun, was forced to merge his company with Nordenfelt in 1886. Zaharoff was appointed as the principal salesman of the Nordenfelt-Maxim company and worked for a substantial commission rate. After Nordenfelt and Maxim parted ways in 1890, Zaharoff stayed with Maxim and purchased enough shares to gain control of the company.
Mature Wealth
In 1895, Vickers, Sons & Company, the second-largest manufacturer of arms in Great Britain, purchased the Maxim company. Zaharoff was appointed to Vickers’s board of directors and oversaw munitions companies associated with Vickers in many countries. To enhance munitions dealings with numerous countries during World War I, Zaharoff purchased a bank in Paris in 1918 in order to control the financing arrangements of any consummated deals. By supplying munitions to the Allied forces, Zaharoff grew his fortune.
Zaharoff seemed to know when and how to invest for his financial gain. Recognizing the importance of petroleum in the world, Zaharoff made several investments in the oil industry. In 1922, he organized a British-owned integrated oil industry in France. His assets rose to more than $45 million. Under his direction, Vickers merged with munitions manufacturer Armstrong Whitworth in 1927 to form Vickers-Armstrong Ltd.
After retiring from the weapons business, Zaharoff gained control of the Casino de Monte Carlo in Monaco. Implementing his crafty business skills in the gambling arena, he greatly increased his financial assets. After he had made enough money, he sold the casino for a significant profit. Although he kept most of his financial affairs quite secret, his estimated worth when he died in Monaco in 1936 was more than $500 million.
Legacy
More than any other individual, Basil Zaharoff developed the international market for military weapons. He was a genius at using the munitions industry for his financial gain. A crafty, shrewd businessman, Zaharoff established credentials of respectability and power with many important officials and leaders of different countries that he used to his advantage. His numerous financial gifts, which he considered investments in goodwill, rewarded him both financially and politically.
In 1908, Zaharoff was made a Knight of the Legion of Honor of France. Five years later, he was promoted to be an Officer of the Legion of Honor, and in 1914 he was elevated to the rank of commander in the organization. In 1918, he was awarded the Grand Cross of the Order of the British Empire and named a Knight of Bath, Sir Basil Zaharoff. Shortly thereafter, he was decorated as a Grand Officer of the French Legion. In 1919, he received the highest decoration that France could offer, the Grand Cross of the Legion.
Bibliography
Allfrey, Anthony. Man of Arms: The Life and Legend of Sir Basil Zaharoff. London: Weidenfeld & Nicolson, 1989.
Lewinsohn, Richard. The Mystery Man of Europe: Sir Basil Zaharoff. Reprint. Whitefish, Mont.: Kessinger, 2004.
McCormick, Donald. Peddler of Death: The Life and Times of Sir Basil Zaharoff. Austin, Tex.: Holt, Rinehart, and Winston, 1965.
Tallas, George, and Anthony Stephen. Peddler of Wars: Sir Basil Zaharoff Story. Bloomington, Ind.: AuthorHouse, 2007.