Max Aitken, 1st Baron Beaverbrook
William Maxwell Aitken, 1st Baron Beaverbrook , was a Canadian-British newspaper publisher and backstage politician who was an influential figure in British media and politics of the first half of the 20th century. His base of power was the largest circulation newspaper in the world, the Daily Express, which appealed to the conservative working class with intensely patriotic news and editorials. During the Second World War, he played a major role in mobilising industrial resources as Winston Churchill's Minister of Aircraft Production.
The young Max Aitken had a gift for making money and was a millionaire by the age of 30. His business ambitions quickly exceeded opportunities in Canada, and he moved to Britain. There he befriended Andrew Bonar Law and with his support won a seat in the House of Commons at the December 1910 United Kingdom general election. A knighthood followed shortly after. During the First World War, he ran the Canadian Records office in London, and played a role in the removal of H. H. Asquith as prime minister in 1916. The resulting coalition government rewarded Aitken with a peerage and, briefly, a Cabinet post as Minister of Information.
After the war, the now Lord Beaverbrook concentrated on his business interests. He built the Daily Express into the most successful mass-circulation newspaper in the world, with sales of 2.25 million copies a day across Britain. He used it to pursue personal campaigns, most notably for tariff reform and for the British Empire to become a free trade bloc. Beaverbrook supported the governments of Stanley Baldwin and Neville Chamberlain throughout the 1930s and was persuaded by another long-standing political friend, Winston Churchill, to serve as his Minister of Aircraft Production from May 1940. Churchill later praised his "vital and vibrant energy". He resigned due to ill-health in 1941 but later in the war was appointed Lord Privy Seal.
Beaverbrook spent his later life running his newspapers, which by then included the Evening Standard and the Sunday Express. He served as Chancellor of the University of New Brunswick and developed a reputation as a historian with his books on political and military history.
Early life
Aitken was born in Maple, Ontario, Canada, in 1879, one of the ten children of William Cuthbert Aitken, a Scottish-born Presbyterian minister, and Jane, the daughter of a prosperous local farmer and storekeeper Joseph Vaughan Noble. When he was a year old, the family moved to Newcastle, New Brunswick, which Aitken later considered to be his hometown. It was here, at the age of 13, that he set up a school newspaper, The Leader. Whilst at school, he delivered newspapers, sold newspaper subscriptions and was the local correspondent for the St John Daily Star.Aitken took the entrance examinations for Dalhousie University, but because he had declined to sit the Greek and Latin papers, he was refused entry. He registered at the King's College Law School, but left after a short while. This was to be his only formal higher education. Aitken worked in a shop, then borrowed some money to move to Chatham, New Brunswick, where he worked as a local correspondent for the Montreal Star, sold life insurance and collected debts. Aitken attempted to train as a lawyer and worked for a short time in the law office of R. B. Bennett, a future prime minister of Canada. Aitken managed Bennett's successful campaign for a place on Chatham town council. When Bennett left the law firm, Aitken moved to Saint John, New Brunswick, where he again sold life insurance before moving to Calgary where he helped to run Bennett's campaign for a seat in the legislative assembly of the North-West Territories in the 1898 general election. After an unsuccessful attempt to establish a meat business, Aitken returned to Saint John and to selling insurance.
Early business career
In 1900, Aitken made his way to Halifax, Nova Scotia, where John F. Stairs, a member of the city's dominant business family, gave him employment and trained him in the business of finance. In 1904, when Stairs launched the Royal Securities Corporation, Aitken became a minority shareholder and the firm's general manager. Under the tutelage of Stairs, who would be his mentor and friend, Aitken engineered a number of successful business deals and was planning a series of bank mergers.Stairs' unexpected early death in September 1904 led to Aitken acquiring control of the company and moving to Montreal, then the business capital of Canada. There he bought and sold companies, invested in stocks and shares and also developed business interests in both Cuba and Puerto Rico. He started a weekly magazine, the Canadian Century in 1910, invested in the Montreal Herald and almost acquired the Montreal Gazette. In 1907 he founded the Montreal Engineering Company. In 1909, also under the umbrella of his Royal Securities Company, Aitken founded the Calgary Power Company Limited, now the TransAlta Corporation, and oversaw the building of the Horseshoe Falls hydro station.
In 1910–1911 Aitken acquired a number of small regional cement plants in Canada, including Sir Sandford Fleming's Western Canada Cement Co. plant at Exshaw, Alberta, and amalgamated them into Canada Cement, eventually controlling four-fifths of the cement production in Canada. Canada was booming economically at the time, and Aitken had close to a monopoly on the material. There were irregularities in the stock transfers leading to the conglomeration of the cement plants, resulting in much criticism of Aitken, as well as accusations of price-gouging and poor management of the cement plants under his company's control. Aitken sold his shares, making a large amount of money.
Aitken had made his first visit to Britain in September 1908, and when he returned there in the spring of 1910, in an attempt to raise money to form a steel company, he decided to make the move permanent, but not before he led the underwriting, with a preponderance of British money, of an amalgamation of smaller units into the Steel Company of Canada. Very shortly later Aitken moved his family to the UK.
Move to Britain
In 1910, Aitken moved to Britain, and he became friends with Bonar Law, a native of New Brunswick and the only Canadian to become Prime Minister of the United Kingdom. The two men had a lot in common: they were both sons of the manse from Scottish-Canadian families and both were successful businessmen. Aitken persuaded Bonar Law to support him in standing for the Unionist Party in the December 1910 general election at Ashton-under-Lyne. Aitken was an excellent organiser and, with plenty of money for publicity, he won the seat by 196 votes. Aitken's "bumptious" election campaign brought him some notoriety.Aitken rarely spoke in the House of Commons, but he did promise substantial financial support to the Unionist Party, and in 1911 he was knighted by King George V. Aitken's political influence grew when Bonar Law replaced A.J. Balfour as leader of the Unionist party late in 1911. Aitken's demands for a protectionist bloc uniting the British empire made him into a disruptive force in the Conservative and Unionist ranks as the idea of a bloc would mean higher food prices, making the plan unpopular with many segments of the British people who disliked the "food taxes" and "stomach taxes". The great dividing line in British politics were between the Whole Hoggers who were willing to accept higher food prices as the consequences of a protectionist bloc vs. the Free Fooders who were not. Aitken had a financial interest in the supporting the Whole Hoggers as in 1912 he purchased all of the grain terminals in Alberta in the expectation that an Imperial Preference tariffs would soon be enacted as law. Aitken had little to do as an MP, and set about seeking the acceptance of British elites. The British historian Neal Ascherson wrote: "The first is that posh English society was no match for him. He was 'vulgar', but there was a charm in his self-promotion which made languid ladies and gentlemen want to be on his side and at his side. He was wildly rich even then, but knew how to use his wealth in hospitality and by rescuing grand friends from awkward debts. Above all, he was fun to be with."
In 1911, Aitken was strongly opposed to the reciprocity agreement with the United States signed by the Liberal prime minister of Canada, Sir Wilfrid Laurier, which he believed would lead to the American annexation of Canada. As such, Aitken temporarily returned to Canada to vigorously campaign for the Conservatives led by Sir Robert Borden. Aitken had his friend Rudyard Kipling intervene in the election on behalf of the Conservatives. At the time the line between British and English-Canadian national identities was more blurred than today, and Aitken did not regard Kipling as a "foreign" figure. On 7 September 1911, the Montreal Daily Star published a front-page appeal to all Canadians by Kipling, where he wrote: "It is her own soul that Canada risks today. Once that soul is pawned for any consideration, Canada must inevitably conform to the commercial, legal, financial, social and ethical standards which will be imposed on her by the sheer admitted weight of the United States." Kipling's article attracted much attention in Canada and was reprinted in every English-language Canadian newspaper over the following week, where it was credited with helping the Conservatives win the election.
Aitken bought Cherkley Court south of Leatherhead in Surrey and entertained lavishly there. In 1913, the house was offered as a venue for negotiations between Bonar Law and the Prime Minister, H.H. Asquith, over Ulster and Irish home rule. Later in life, Aitken wrote about his early political efforts:
Aitken continued to grow his business interests while in Parliament, and also began to build a British newspaper empire. After the death of Charles Rolls in 1910, Aitken bought his shares in Rolls-Royce Limited, and over the next two years gradually increased his holding in the company. However, Claude Johnson, Rolls-Royce's Commercial managing director, resisted his attempt to gain control of the company, and in October 1913 Aitken sold his holding to James Buchanan Duke of the American Tobacco Company. In January 1911 Aitken secretly invested £25,000 in the failing Daily Express. An attempt to buy the Evening Standard failed, but he did gain control of another London evening paper, The Globe. In November 1916, a share deal worth £17,500, with Lawson Johnson, landed Aitken a controlling interest in the Daily Express, but again he kept the deal secret.