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Index |
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The conspiracy to kill off Bentley Motors |
By Alan C
Smith |
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The Conspirators
Woolf Barnato
Woolf Barnato came from a humble backround
but was born into fabulous wealth. His wealth would
naturally bring him into contact with the upper classes,
but in the snobbish eyes of high society he would be
looked down on, considered an upstart, a nouveau riche.
This naturally would affect his personal outlook and
probably made him very scrupulous about his public image.
Barnato was a complex character and in WO's opinion
although a fine sportsman he had a different side when
it came to business. Like other people in the same position,
Barnato sought to overcome the class barrier by participating
in sport and car racing, and posessed the talent and
drive to excel in these activities.
When the opportunity came in 1926 to rescue Bentley
Motors. He was probably flattered and saw that it would
do him no harm to be part of the company and probably
thought that he could turn the fortunes of the company
around. He exacted a price for this by devaluing all
the existing pound shares to one shilling.
What Barnato did not realise was that WO would resist
his attempts to devalue the marque by introducing cheaper
non-sporting models into the range. In Barnato's eyes,
WO was not suitable to be managing director and was
eventually replaced by one of Barnato's so called cronies.
In 1929 WO had reached a personal crisis, brought on
by years of overwork, his failing marriage, the death
of Burgess, the endless stress of the board meetings
where he resisted the efforts of the other directors
to initiate policies that he did not agree with. The
4-litre side valve engine was a failure and WO would
not take the lead to put this right.
1929 showed a profit for the company and the start of
the 4 Litre design proper with the engine using the
Ricardo patent 'high power' cylinder head under the
supervision of the new chief designer Barrington. 1930
saw intense activity in the drawing office putting the
finishing touches to the 4 litre design and also in
the engine shop where the prototype engines were assembled
and tested.
The 4 litre was rushed into production and surely met
the aims of the board as a luxury non-sporting car.
However, Bentley customers had come to expect some degree
of performance from Bentley cars, so the 4 litre must
have been a disappointment to them. The other aim of
the board to reduce the cost of manufacture was not
possible without reducing quality and technical specification
and in some respects the quality of the 4 litre is better
than previous models. What had happened was that Bentley
Motors had produced a car without the sporting pedigree
the customers wanted and at a price that was more than
the specification of the 4 litre warranted. The board
hadn't listened to WO and paid the price for it.
One of the probable reasons that Barnato had taken over
the company in 1926 was that he could see that being
associated with a glamorous upward moving high profile
company with considerable racing success would do his
reputation no harm. He would also be able to race the
factory prepared cars as much as he wanted. Conversely,
in 1931, Barnato would have seen that the downturn in
the fortunes of Bentley Motors could affect his public
personna in a negative way. This is something he would
not like.
In 1930, after the win at Le Mans, the official racing
programme was halted. One good reason for this, apart
from financial, was that despite the win at Le Mans,
the Bentley cars were becoming outclassed by cars such
as the Mercedes which trounced Bentley at the Irish
Grand Prix and the Alfa Romeos similarly at the Ulster
Grand Prix both in 1930.
There seems to be no record of Barnato racing after
his Le Mans victory in 1930. Barnato had probably made
a personal decision to retire from racing, perhaps through
family persuasion, although he continued to construct
racing cars in private with Wally Hassan. So that his
main reason for continuing to support Bentley Motors
was removed.
As we know, by now, the Wall Street crash was affecting
the luxury car market in the UK and Barnato faced having
to continue to keep the company afloat with money from
his own pocket.
Rolls Royce Ltd
Royce was suffering from bad health and was leading
his design team from offices in Sussex and the South
of France, alternating between the two.
Bentley Motors was a thorn in Royce's side. We have
all read in the Review reports by RR personell in which
grudging praise is given to the 6½ litre although
also commenting on the rough edges of the car. Of course
RR designs had a much longer gestation period than the
Bentley products because RR had a much more stable economic
base, whereas the economic climate at Bentley Motors
dictated a minimum of time to produce new models, which
would account for this discrepancy. Bentley cars benefitted
from the racing successes which gave the cars that certain
cachet that the RR products could never have.
Royce kept a close eye on developments at Bentley Motors
and when the opportunity came along to shut down the
company he took it. Royce never had any intention to
continue the manufacture of Bentley cars, all he wanted
in his final years was to eradicate the Bentley threat.
However, as we will see, things didn't go exactly as
he planned.
The Pawns
WO
WO was undoubtedly a pawn in this game. His life and
livelihood had been Bentley Motors, and to avoid the
company going under in 1926, he and his fellow shareholders
had to accept a deal dictated by Barnato, which devalued
their shares from one pound to one shilling. Which in
WO's case wiped out his capital although he was still
receiving a good salary from the company.
Barnato very astutely made it a condition that WO sign
a service contract which tied him to the company. The
importance of this will become apparent later.
WO says that he and Barnato were friends, perhaps Barnato
was friendly enough to WO's face, but in reality although
keeping WO on as chief engineer, because of the conflict
of policy between WO and the board, Barnato would consider
him unfit to be managing director and replace him.
WO didn't have much going for him after the Barnato
takeover, basically he became an employee of Bentley
motors. His share capital was not sufficient for any
control of the company, his position as managing director
was just as a figurehead. The public perception of WO
was that he was a rich and successful man, after all
he lived in a posh house (rented) and drove around in
the latest Bentley (belonging to the company) and of
course he was the managing director of a famous company
(in continual financial trouble).
Because of his pathological shyness he was not a social
animal and I can't imagine him doing the Charleston
at the Cafe De Paris. He was vulnerable to the attentions
of women who made the going and became married to a
society lady who loved the round of coctail parties.
WO was not the kind of man to make small talk at parties,
he was, I think a workaholic and spent too many hours
at work. The marriage was an unfortunate mistake and
ended in a messy divorce after the company went to RR.
In 1929 WO was suffering the chagrin of a doomed marraige,
the board would not listen to him about the future of
the company, his friend and chief designer Burgess was
terminally ill. The company was in dire straights.
The picture I'm trying to paint here is that WO was
a man in crisis, no longer in control of his destiny,
he was being forced to do things by the board which
he considered to be wrong and he just refused to carry
out the instructions of the board when asked to design
the pushrod OHV for the 4 litre engine. Barnato would
have seen WO as a problem, it's doubtful that they were
real friends.
In a way Barnato did WO a favour by letting the firm
go under as WO writes in his autobiographies that he
spent some happy times working for RR testing the Derby
Bentley prototypes often abroad with his new wife Margaret.
Ricardo
Ricardo lived not far from Royce, whilst I
don't think that they were actually close friends, they
enjoyed family picnics together and sailed together
on Ricardo's yacht the Pearl.
Ricardo depended on Royce for work for his consultancy
so was vulnerable to pressure from Royce to reveal details
of the work he was carrying out for Bentley Motors.
Recently I discovered the following letter written by
Ricardo to Elliott one of Royce's senior engineers based
at Royce's sattelite office near Chichester. The original
is not good enough to copy but here is a verbatim transcript.
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HRR
/ S / 33200.
27th April . 1931 . |
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C. Elliot
Esq.,
Elmstead,
West Wittering,
Nr. Chichester.
My Dear Elliot,
Forgive me for not having replied before
to your letter of the 18th. The B .M .E
.P. of the six – cylinder Bentley
engine is not as high as it aught to be
or as we had got either on our experimental
cylinder here or on their single –
cylinder , but the results you have are
those which were obtained straight off the
reel from the first engine built, and when
rigged up with a silencer, and all conditions
as nearly as possible as they would be in
the car. Not only the engine but the whole
chassis is new, and Bentleys were very anxious
to get the engine on to the road to test
out the chassis as soon as possible. Finding
that the engine gave the maximum power which
we and they had anticipated, they took it
off the test bench without any further tuning
and started on their road tests. They have
promised later either to let us have an
engine here or to let us play with one on
their test – bed, when I hope to do
a good deal better, for we have not yet
tried a single one of the many variables
such as valve timing , compression ratio,
etc . Bentleys tell us that under no circumstances
can the engine be made to detonate and that
it is very smooth running, from which I
infer that we could probably afford to increase
the compression ratio - our own tests indicated
that we could go above 6:1 on ordinary Shell
petrol.
Yours Sincerely,
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The letter is the unsigned duplicate
carbon copy obtained when the typist typed out the letter
after dictation by Ricardo.
What Ricardo is saying here is that the BMEP of the
engine is lower than it should be. Which means as the
torque and horsepower are a function of the BMEP the
torque and horsepower would be lower than expected.
The maximum power, which is not quoted, is claimed by
Bentleys to be as anticipated. This seems evasive and
the comment by Bentleys "that under no circumstances
can the engine be made to detonate" is completely
opposite to the results obtained from the tests Ricardo
carried out on engine VA 4092 supplied to them by Bentleys
on 08/06/31. Were Bentleys misleading Ricardo?
The letter is written in a friendly conspiratorial style
revealing the relationship between Royce and Ricardo
and shows complete disregard for the secrecy agreement
which is always in place between the consultant and
the client (Bentleys). According to the text of the
letter, Elliott had already obtained the test results
from the first prototype engine, which Ricardo had obviously
received from Bentley Motors, and Ricardo's apology
at the beginning of the letter was probably due to having
had a reminder call from Elliott.
Royce must have been very concerned about what Bentley
Motors were doing to make Ricardo break his secrecy
agreement with Bentley. Although I believe that an honourable
person like Ricardo would have asked permission from
Bentleys before disclosing any information to Royce.
The letter sounds reasonably hopeful about the 4 litre's
performance and possibilities and probably gave Royce
a few worries. But this was not really the true situation.
Ricardo's patent for the high power head was taken out
after CIS, a subsidiary of Chenard Et Walcker of Genvilliers
a suburb north of Paris, who were the agents for Ricardo's
patents in europe, developed a version of Ricardo's
sidevalve turbulent head where the inlet valve was located
in the head and the exhaust valve in the block. This
was called the High Power Head and was the configuration
incorporated into the 4 litre engine.
This was not the first so-called F head developed by
Chenard, the difference here was, that Ricardo's patented
sidevalve Turbulent Head had been used as the basis
for the High Power Head. The Turbulent Head was limited
to a maximum compression ratio of about 6 to 1. The
High Power Head had the advantage that larger valves
could be used as now the valves were not side-by-side
and that it could attain a higher compression ratio.
Chenard Et Walcker in 1927 had developed a 1.5 litre
engine incorporating the High Power Head which was installed
into a model called the tank, obviously based on the
famous Bugatti tank coachwork. So far I haven't been
able to find out the power output, but it was raced
at Le Mans, and was quite powerful being capable of
a top speed of 129 km/h. The 9cv, as the engine was
designated, remained in production until 1935.
What I'm building up to here is why was the Bentley
engine so troubled when surely Ricardo had all the information
he needed from Chenard to ensure a success for Bentley.
I have a suspicion that Ricardo was not as helpful to
Bentley Motors as he could have been. This suspicion
is reinforced by some of the drawings that Ricardo issued
to Bentley. The first drawing showing the cross section
of the cylinder and head is ok but the inlet valve is
too near the piston closely following the sketch included
in Ricardo's Patent No. 280,544. Other drawings such
as a layout for engine mountings based on coil springs
has been designed by someone, probably a young graduate,
who has a theoretical background but little practical
experience. Needless to say, Barrington did not adopt
this system for the 4 litre. Either Ricardo did not
put his best men onto the 4 litre project, or they were
the best that he had available.
Ricardo designed a 3 litre engine for Lagonda in 1930
that was never put into production. This engine achieved
a power output of 100 hp, that is 33 1/3 hp per litre.
Therefore, interpolating for a 4 litre version, the
hp would be 133 1/3. The 4 litre bentley engine had
an official output of 120 hp, however I cannot find
a test result that shows more than 110 hp. Can we trust
the official figures? Evidently the power output of
the 4 litre was 23 hp lower than it should have been.
The 4 litre did not achieve it's potential, that is
sure, but the reason for this is not so sure.
The Coup de Grace
The accepted version of events around the demise
of Bentley Motors is:
09/06/1931 Carruth, on behalf of Barnato, telephones
Sidgreaves MD of RR about merger.
10/06/1931 Carruth writes letter to Sidgreaves about
merger.
15/06/1931 Barnato refuses to make the monthly interest
payment to the London Life Association. There remained
15 days grace to make the payment before the mortgage
was called in.
17/06/1931 Sidgreaves writes letter to Carruth seeking
more information.
18/06/1931 Carruth replies to Sidgreaves including amongst
the information the status of WO's contract with Bentley
Motors. "Mr W.O.Bentley is under contract as Chief
Engineer of the Company for life so long as royalties
amounting to not less than 1,000 pounds per annum are
paid to him & rdquo;. Presumably in answer to a question
by Sidgreaves.
24/06/1931 Sidgreaves writes to Carruth giving the decision
of the RR board which met on the 23rd deciding against
the merger.
10/07/1931 Barnato appoints Carruth as his receiver.
Patrick Frere appointed receiver for London Life Association.
28/07/1931 Financial Times reports that Napier are interested
in purchasing Bentley Motors. WO allowed to start work
on the proposed new Napier Bentley.
09/09/1931 With the negotiations for the purchase of
Bentley Motors well advanced, the decision to wind up
Bentley Motors taken. Montgomerie the company secretary
appointed as the liquidator.
Secret negotiations are started between Barnato and
RR for the sale of Bentleys.
20/10/1931 Sale of Bentley Motors to Napier approved
by the court. Preliminary contract drawn up.
17/11/1931 In court Napiers outbid by British Equitable
Trust acting on behalf of RR. Rolls Royce are now the
owners of the company.
1934 Barnato becomes director of Rolls Royce. Having,
according to WO, bought a considerable number of RR
shares before the liquidation of Bentley Motors.
So there we have it a sad sad story, but let's look
at a slightly different version of events. Barnato refuses
to pay the interest on a mortgage to The London Life
Association due on the 15/06/31. This is before the
negotiations with RR on the merger had been concluded.
Either Barnato had decided to let the company go no
matter what happened with RR or he had already made
a private agreement with Royce about letting the company
go into liquidation.
Barnato was the key person in this drama, he could have
kept the company going by radical restructuring, but
he didn't do this, he obviously just wanted to get rid
of the company. Royce wanted to end the Bentley threat
to RR and Barnato was the one person who could make
this possible, as he basically owned both Bentley Motors
and WO himself. However Royce didn't want to buy the
company as a going concern, it would be too expensive,
as he had no intention of continuing production of the
Bentley designed cars. He wanted Barnato to put Bentley
Motors into receivership so he could buy it for a song.
Not only would he aquire the company, but thanks to
the service contract, could also keep WO from starting
up again elsewhere. There would be no point in him buying
the company and liquidating it without being able to
prevent WO from just starting up again with another
company.
Why would Barnato let Bentley Motors go into receivership?
As this would have been seen as a negative action reflecting
on his wealth and public image, something we have noted
that Barnato was probably very sensitive about. There
must have been a very compelling reason for doing this,
as he was not just going to lose face, but also a great
deal of money as well. In his statement to the press,
Barnato makes it quite plain that his decision to put
Bentleys into receivership is financial, he is clearly,
for some reason, taking all the blame for the demise
of the company on his own head, perhaps as agreed with
RR to deflect attention from their future actions.
As has been suggested by others including WO, Barnato
either was allocated or bought RR shares before calling
in the receiver, as of course when the dealing in Bentley
shares was suspended on the stock exchange, it would
have been very likely that the RR shares would increase
in value.
Royce had speculated that there would be no interest
by third parties in buying Bentley Motors, however he
was wrong, Napier's interest was a bigger threat than
ever to RR. So again Barnato was involved in secret
talks with RR to secure the sale of Bentley Motors,
this was acomplished on 17/11/1931, WO's hopes were
finally dashed and when the dust had settled, Barnato
went on to become a director of RR in 1934 presumably
for services rendered.
Postscript
Some time has passed since I wrote this article
and in the meantime my mind has been churning over the
events that I have written down.
Relooking at the letter sent by Ricardo to Elliott which
was written on 27 April 1931 and the date that Barnato
approached RR about a merger on the 9th June 1931. There
were just over five weeks between the two events.
Barnato surely did not suddenly decide to approach RR
about a merger on the 9th June, he must have been looking
for an honourable way out of ownership of Bentley Motors
for some time, and possibly approached Royce informally
at an earlier date. There is a possibility that Barnato,
intending to sell Bentleys to RR and in order to make
the company more desireable, ordered WO or Barrington
to give some misinformation to Ricardo knowing of the
relationship between him and Royce, or perhaps Ricardo
asked WO confidentially if he could pass on information
about the 4 litre to Royce and was given incorrect information
to pass on.
The only information that Ricardo posessed, apart from
the single cylinder test results and the first Bentley
engine test (which he did not witness) was hearsay,
and the engine power curve given to him by Bentleys
could have been doctored to reflect the single cylinder
output.
What has raised my suspicions is the line in the letter
"Bentleys tell us that under no circumstances can
the engine be made to detonate". Why make this
statement unless Elliott had asked the question? This
answer is clearly untrue as the engine given to Ricardos
for test on the 8th June exhibited chronic preignition
and this, apart from the need to improve the poor torque
and power output, was the main goal for the test engineers
to eliminate.
Recently I had the pleasure of reading Diana Barnato
Walker's excellent book "Spreading My Wings".
There was not a vast amount of information about her
father Wolf Barnato, however, she reveals that Barnato
was a very talented sportsman who kept wicket for Surrey,
was a top shot, could beat anyone at tennis, he rode,
swam, skied like a bomb, played golf and liked to box.
He was undoubtedly a tough guy, a man's man but could
be moved to tears on occasion, notably, when Clive Dunfee
was killed at Brooklands.
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Barnato clearly had a weakness for
the fair sex, his affair with June, the actress, led
to the divorce from Diana's mother. He remarried in
1932 to Jacqueline Queagly of San Francisco, the daughter
of a Californian coal magnate. They were divorced in
1940.
WO wrote in his autobiography that on the 11th July,
when the Times newspaper broke the news about Bentleys
going into receivership, Barnato was in America engrossed
in Business and personal matters (WO was hinting at
something here). Others have said that Barnato was pursuing
an American lady at that time. We now know that he was
actually in the UK on this date, but what I'm leading
up to is possibly the real reason for Barnato's haste
to get rid of Bentleys.
As we know, Barnato never raced after his victory at
Le Mans. Even if the Bentley cars were no longer competetive,
with his wealth he could afford to buy any car that
he wanted and continue racing after the liquidation,
but he didn't. Barnato still toyed with the idea of
racing by having Wally Hassan rebuild Old No One with
an eight litre engine and construct the Barnato Hassan
single seater racing car built from Bentley parts, but
he never raced it himself. By doing this, Barnato showed
that he still wanted to race but was prevented from
doing so for some reason.
In Wally Hassan´s autobiography "Climax In
Coventry" he devotes a chapter to his employment
with Barnato. Several very interesting points emerge,
Hassan tells of being summoned to Ardenrun by Barnato
just after the sale of Bentley to RR, and being offered
a job looking after Barnato's cars. During the conversation,
Barnato mentions that although he was no longer chairman
of Bentley Motors, he was still on the board of directors
of RR (This was in 1931 and contradicts the accepted
date of Barnato's directorship of RR).
Hassan also confirms that Barnato was still rich and
mentions the polished brass nameplates of Barnato's
companies adorning both sides of his London office door.
He also tells of Barnato obtaining an eight litre engine
from RR to put into Old No. One, which shows that Barnato
must have had some considerable influence at RR. Another
anomaly is that when Barnato called Hassan to his office
in 1936 and gently let him go by offering to use his
influence to get Hassan a position at RR, one of the
reasons Barnato gave to Hassan for this decision was
that he had not raced since the death of Clive Dunfee
at Brooklands whilst driving Old No One in the BRDC
500 mile race on 24th September 1932.
Actually Barnato had not raced since Le Mans 1930 and
used other drivers to drive his racing cars although
Hassan does mention that Barnato did some test driving.
Usually people give up racing for reasons such as an
accident or decrease of competitiveness, this did not
apply to Barnato, he was a superb driver in his prime.
That is why I suspect that the reason he gave up racing
and Bentley Motors was because of a promise to somebody,
possibly a woman.
One should never underestimate the power of a woman
over a testosterone driven man. History is littered
with examples of powerful men that were putty in the
hands of a beautiful woman.
My theory is that Barnato was smitten with Jacqueline
Queagly who was a mormon and wanted to marry her, which
he did in 1932, and that she would only agree if he
gave up racing. In order to prove this to her he planned
to get rid of Bentley Motors as quickly as possible,
this would explain his haste. After all, Bentley Motors
was probably only a small part of his portfolio, and
had outlived its usefulness to him.
In his statement to the press Barnato gives financial
reasons for letting Bentley Motors go into receivership.
Put yourself in his place, being a tough guy, the last
thing you would want the public to think, would be that
you were doing all this this just to win a wife. Better
the financial reason (which most people consider to
be untrue). I don't think that Barnato originally intended
that Bentley Motors be killed off, but once started,
the sequence of events led up to this happening.
Perhaps there is someone out there who can confirm this
theory, but just think about it if it were true, what
an irony, Bentley Motors killed off for the sake of
a woman.
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Read Alan Smith's blog
dedicated to the vintage Bentley.
Click
here for Alan Smith's Vintage Bentley
Spares.
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Newspaper clippings
courtesy of Tim Houlding
Posted on Dec 24, 2013
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Sep 30, 2020 - Info and photograph received from Simon Hunt for Chassis No. RL3439 |
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Sep 30, 2020 - Info and photographs received from Dick Clay for Chassis No. 147 |
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Sep 29, 2020 - Info and photographs received from Ernst Jan Krudop for his Chassis No. AX1651 |
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Sep 28, 2020 - Info and photographs received from Lars Hedborg
for his Chassis No. KL3590 |
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Sep 25, 2020 - Info and photograph added for Registration No. XV 3207 |
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Sep 24, 2020 - Info and photograph added for Registration No. YM 7165 |
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