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- The entrepreneur who overthrew a government
When you saw the Banana Man walking towards you, you got the fuck out the way.
Six-three, with his trademark overcoat barely covering his rangy limbs, Sam Zemurray walked like he meant business.
Indeed, he did. He was on his way to overthrow the Honduran government.
How could an entrepreneur even consider deposing a foreign government? He lived in a time where companies had grown more powerful than nations and corruption was rife. Put enough money into the right hands and things would happen. And Sam the Banana Man made things happen.
At 14, his dad died and he left his native Russia for the US.
By 21, he turned $150 into $100,000.
By 26, he signed a contract with the largest fruit manufacturer in the world.
He made his fortune by selling ‘ripes’, bananas that were going bad and usually binned instead of sold. Zemurray spotted an opportunity where others saw waste and he pounced.
After years of hustling up and down the railroads, hawking his wares from a boxcar door, his business had grown. Now, Sam owned thousands of acres of Honduran land, perfect for growing bananas.
But the Banana Man's business was built on ‘concessions’ - kickbacks, backhanders and bribes. When the US threatened to take control of Honduras’s customs offices to recoup a massive debt, the sweetheart deals he’d carved out with corrupt officials were in jeopardy. His already slim margins would be eaten by the import duties, property, labour and export tax from which his business had been exempt.
The Banana Man needed to take action and fast. He lobbied, paid journalists, even met with the White house, but to no avail.
He decided that if the Honduran government wouldn’t give him what he wanted, well, he would just replace them with one that did. The Banana Man would lead a coup.
He sought out Manuel Bonilla and Lee Christmas. Bonilla was the former Honduran president, living in exile in New Orleans. Christmas was a gun for hire, as much a showman as a soldier. They recruited 100 mercenaries and loaded weapons into a former US Navy Vessel they’d bought through a shell company.
Then they set sail for Honduras.
One by one, the rebel force took small government outposts, and their support among ordinary Hondurans grew. A victory in the city of La Ceiba, a city once thought to be impregnable, turned the tide. The president resigned and Bonilla was elected in his place.
In return for his support, Bonilla granted Zemurray business concessions for the next 25 years, a $500,000 loan, and 24,700 acres of Honduran land.
The coup was over, and once again, Sam Zemurray the Banana Man had got what he wanted. To him, that was all that mattered.
If you’re looking for startup advice from a founder who’s been in your shoes, book a paid call with me and we’ll get you on the right track. I’ve raised $1m from VCs, act as an advisor and I’m an angel investor.
Speak soon,
Nelson
Zero To Won