Creating Global Shipping: Aristotle Onassis, the Vagliano Brothers, and the Business of Shipping, c.1820–1970 (Cambridge Studies in the Emergence of Global Enterprise)

Shipping has been the international business par excellence in many national economies, one that preceded trends in other, more highly visible sectors of international economic activity. Nevertheless, in both business or economic history, shipping has remained relatively overlooked. That gap is filled by this exploration of the evolution of European shipping through the study of two Greek shipping firms. They provide a prime example of the regional European maritime businesses that evolved to serve Europe's international trade and, eventually, the global economy. By the end of the twentieth century, Greeks owned more ships than any other nationality. The story of the Vagliano brothers traces the transformation of Greek shipping from local shipping and trading to international shipping and ship management, while the case of Aristotle Onassis reveals how international shipping was transformed into a global business. Cover 1 Half-title 3 Series information 4 Title page 5 Copyright information 6 Dedication 7 Contents 9 List of Figures 10 List of Maps 13 List of Tables 14 Preface 17 Acknowledgments 20 Abbreviations 26 Introduction 27 The Archival Odyssey 33 1 The European and Greek Shipping Firm 40 World Shipping and Shipping Markets 42 The Evolution of the European Shipping Firm 48 The Stages of Development of the Greek Tramp-Shipping Firm 57 Conclusions 67 2 The Vagliano Shipmasters: Creating a Business Empire, 1820s‒1850s 68 The Importance of Maritime Culture: From Cephalonia to the Azov Sea 69 A Successful Merchant Captain in the Azov: 1820s‒1830s 73 Internal Organization: The First Regional and Peripheral Sea Transport System of the Three Brothers 80 Rising to Become the Prime Trading Company in the Russian Black Sea 89 Conclusions 92 3 An International Trading House from Russia to the United Kingdom, 1850s‒1880s 94 Internal Organization 95 The External Organization: Networks 101 Function of the Network 106 Trade 110 Banking and Finance 114 Conclusions 123 4 The Russian Government v. Mari Vagliano, 1881‒1887 126 The Trial of the Taganrog Customs 127 The Russian Press and Public Opinion 137 The Importance of Foreign Capitalists for the Russian Economy 140 Conclusions 146 5 The Vagliano Fleet and Innovation in Ship Management 148 The Vagliano Fleet 149 Ship Finance 158 The Vagliano London Office 162 Conclusions 171 6 Merchant to Shipowner: Aristotle Onassis from Buenos Aires to London and New York, 1923‒1946 173 In Buenos Aires: From Immigrant to Tobacco Merchant, 1923‒1932 174 Penetrating the Greek and Argentinian Political and Economic Milieu 181 Buenos Aires and Greek Shipping 184 From Tobacco Merchant to Shipowner, 1932‒1939 188 Conclusions 196 7 The Onassis Fleet, 1946‒1975 198 Onassis, US Shipping, and the Greek State in the Postwar Era 199 Building Fleets 206 The Liberty Fleet, 1946‒1951 206 The US Flag Fleet 212 The Whaling Fleet, 1950‒1956 214 The Olympic Fleet, 1948‒1958 217 The Oil Business and the Saudi Arabian Fleet, 1954‒1959 224 Conclusions 229 8 The United States Government v. Aristotle Onassis, 1951‒1958 231 Why Were Aristotle Onassis and Mari Vagliano Accused? 232 US Government versus Greek Shipowners 235 Investigation, 1951‒1952 236 Aggression, 1953‒1954 239 Negotiations and Settlement, 1955‒1956 243 Reinvestigation, 1957‒1958 251 Conclusions 254 9 Innovation in Global Shipping: The Onassis Business, 1946‒1975 257 The Model of Ownership and Management of Global Shipping Companies 258 Offshore Companies and the Multiple Holdings 258 The Flags of Convenience 266 Ship Finance and Finances 269 Contribution to the Development of Ship Technology and Gigantism 273 Management 277 From an Island Maritime Culture to a Business Maritime Culture 281 Conclusions 287 10 Diachronic Presence: An Epilogue 289 The Wills 290 The Vagliano Family and the Business: Diachronic Presence 298 Onassis: A Will Like the Business 305 The Onassis Shipping Business after Onassis 310 Creating Global Business: An Epilogue 312 Select Bibliography 320 Archives 320 Greece 320 France 320 Italy 320 Russia 320 Ukraine 321 United Kingdom 321 United States of America 321 UNCTAD 322 Newspapers 322 Russia 322 Greece 322 United States of America 322 United Kingdom 322 France 323 Documentaries 323 Interviews 323 Secondary Sources 323 Appendices 343 Appendix 1.A The Vagliano Genealogical Tree 343 Appendix 1.B 348 Appendix 1.C 350 Appendix 1.D 353 Appendix 1.E 362 Appendix 1.F 369 Appendix 2.A Genealogical Tree, Onassis Family 371 Appendix 2.B 374 Appendix 2.C Forfeitures of Greek-Owned Ships by the United States Government, 1953‒1954 375 Appendix 2.D 383 Index of Names 385 Index of Places 390 Index of Terms 394 Blank Page 1 Shipping has been a leading sector in European economic growth for centuries. Yet, it rarely features in business or economic history. This history of shipping in Greece, which centers on the Vagliano brothers and Aristotle Onassis, redresses this by making this invisible global business visible.