3
ART FOR SALE
On a busy thoroughfare in Golders Green, in
the converted garage of a mews house that had served as a stable a
century earlier, Danny Berger set up a small office and a temporary
home for himself and his girlfriend. A middle-aged Israeli salesman
with a heavy accent, Berger had been trolling the neighborhood for
the past two decades with varying degrees of success. He dealt in
whatever came through the marketplace: luggage, fixtures,
appliances, “a full product line,” as he put it, anything that
could be imported or exported and marked up. Most often he did
business through handshake deals with friends of friends.
The garage faced Finchley Road, which ran straight
to the bustling center of Golders Green, a thriving Jewish
community since the early 1900s, filled with synagogues, bakeries,
delicatessens, and coffeehouses. Berger had installed cheap
wall-to-wall carpeting and a battered desk with a phone that was
nearly buried by the car parts strewn around. Behind the main room
was a bed he could use while he finished renovating a house he’d
bought in Greenwich, on the south bank of the Thames.
Quite by accident, he had recently found himself in
a whole new line of business. He’d become a “runner,” a mobile art
dealer without a gallery or a private collection. Traditionally,
runners were part of a small squadron of professional go-betweens
who worked to match buyers with sellers. Runners tended to be
energetic, refined, and well connected. Part of their job was to
scour homes, attics, antique shops, and auction houses in search of
pristine and unique works that would appeal to collectors. At any
given moment there might be several dozen runners crisscrossing the
globe with their little jewels: a small Magritte to Paris, a
Hockney to Rome, a Duchamp to Dallas.
Berger didn’t exactly fit the profile. His new
sideline had begun unexpectedly one day at the Costa Café, a
Golders Green hangout popular with émigrés, where he liked to sit
nursing a double espresso, watching the street, and chain-smoking
his Time cigarettes, an Israeli brand. Here at the Costa, Berger
could chat comfortably with fellow Israelis and read his
Haaretz newspaper. The other Britain—characterized by Benny
Hill, cricket, and marmalade—sometimes felt like a neighboring
republic. The Costa, a chummy and informal place, felt like Tel
Aviv. It was filled with a nice mix of entrepreneurs, chatterboxes,
and the occasional philosopher, and had served for years as
Berger’s de facto office and a place to catch up on local gossip.
It was close enough to his garage that he could walk home to follow
up on a business lead or take a nap and get back to the café before
it closed.
Late one morning in mid-1988, Berger was sitting in
the Costa going through some papers when a man wearing a nice brown
suit and carrying a leather briefcase introduced himself and asked
whether Berger would mind sharing the table. The café was crowded,
so Berger moved his stack of papers over and gestured for him to
sit.
“Are you Israeli?” asked Drewe, noticing Berger’s
accent. “So is my wife.”
Drewe bought espressos for them and started up a
conversation about Tel Aviv. Berger told him he had an Israeli
girlfriend, and they talked briefly about their work. Drewe said he
taught nuclear physics and spent most of his time consulting for
the Ministry of Defence. He was developing propulsion systems for
nuclear submarines and had an office on Gower Street, near MI6
headquarters.
To an outside observer, the two men would have made
a strange pair. Drewe, with his natty suit, starched collar, and
trim mustache, looked as if he had just come from a business
meeting. Berger, with his stack of newspapers and invoices,
untucked shirt, and unkempt hair, looked as if he’d just slept
through the matinee and woken up in the back row of the
cinema.
But such details did not trouble Drewe. A good
judge of character, he was less concerned with appearance than with
a person’s vulnerability. Drewe could size up a person quickly, and
although his meeting with Berger seemed random, Berger had one
obvious weakness—he was too eager for business. Drewe had paintings
coming in at a good clip now, and he needed to put together a small
sales team. He was sure he could straighten Berger up. Perhaps a
believer in reverse psychology, Drewe may have thought that dealers
would be disarmed by someone who seemed as far removed from the
refinements of the art world as Berger.
Drewe rose from the table and suggested that they
meet again. He said Goudsmid could use some new friends. She was
working much too hard and would love to meet other expat
Israelis.
Soon enough, the two couples were meeting regularly
for bridge at Drewe’s home and going out to dinner. The women had
both served in the Israeli Defense Force and had plenty to talk
about. Drewe always picked up the tab. It was clear to Berger that
the professor was doing well for himself. He drove two cars, a blue
Bentley and a blue Bristol, and the walls of his home were covered
with paintings by Chagall, Le Corbusier, and Braque. Berger knew
little about art, but he recognized the signatures.
After dinner one evening, Drewe made Berger a
business proposition. He said he had been entrusted with some five
hundred works of art by an old fellow named John Catch, whom he
held in high regard. Catch had been his boss and mentor when Drewe
was a young scientist at the Atomic Energy Authority, and had
become like a father to him. Drewe took off his Rolex and showed
Berger the inscription on the back: “From John to John.” The watch
was a gift from Catch.
“He’s ex-Foreign Office, lives in America now,”
Drewe said, adding that Catch had made him a beneficiary in his
will, and that he was to inherit the five hundred works, worth
about £2 million. “He wants me to start selling them and keep the
proceeds,” Drewe told Berger. “Will you help me?”
If Goudsmid had been listening to the conversation,
she might have informed Berger then and there that John Catch was a
mythical figure as far as she was concerned. Whenever Drewe
mentioned his name, Goudsmid bristled. Drewe had told her that
Catch held the hereditary title Lord Chelmwood, and that the old
man had helped him along over the years. He had given Drewe money,
financed his studies, and named him his heir. The inheritance had
become a sore point. It was Goudsmid, not Drewe, who had bought the
house on Rotherwick Road in early 1986. When the couple moved in,
Drewe convinced her to take out a larger mortgage than she had
envisioned. Moreover, she had taken it out in both their names. He
promised to pay it off as soon as the Catch windfall came in, but
the money had never materialized. Goudsmid badgered Drewe about the
inheritance, and around the time that she met Myatt, Drewe began to
tell Goudsmid that the money would come in the form of earnings
from the sale of artworks that Catch owned.
Blissfully unaware of the financial intricacies of
the Drewe/ Goudsmid household, Berger accepted Drewe’s proposition
that he become his agent in selling some of the paintings. In
return, he would receive a 10 to 20 percent commission, depending
on the sale price of the work.
The first painting Drewe brought to Danny Berger’s
garage was a canvas by the British artist Ben Nicholson. Berger put
on his best suit and took the tube down to Cork Street, a stretch
of London that was home to some two dozen galleries and private
dealers. He walked the picture from one shop to the next but found
no takers. Dejected, he tucked the canvas under his arm, went home,
and called Drewe to give him the bad news and ask for an
explanation. Was there something wrong with the painting? Something
lacking in his salesmanship?
No, Drewe said. The piece was solid. Berger needn’t
worry. There would be other works to sell very soon.
A week later, Drewe called to say that he had sold
the piece to the dealer Leslie Waddington for £135,000. Waddington
was one of the most prestigious dealers in London, an irrepressible
man with a large staff and three blue-chip galleries on Cork
Street. He was also a Nicholson expert who had once worked closely
with the painter. The news of the sale renewed Berger’s confidence
in Drewe. He knew enough of the market by now to know the dealer’s
reputation. If it was good enough for Waddington, it was good
enough for Danny Berger.
Within days, Drewe was back at the garage with two
abstract works by Roger Bissière. This time Berger was determined
to make a sale. He called on every business acquaintance and
distant relative, every former partner and friend. A private dealer
he knew agreed to show photographs of the paintings to Adrian
Mibus, an Australian gallerist on Duke Street, and Mibus agreed to
come by and see the works.
At the garage, Drewe let Berger do most of the
talking. Mibus did not seem put off by the grubby surroundings.
“It’s not all that common to meet in a place like that, but not
unusual if the buyer or seller wants to be private,” Mibus later
recalled.6
Mibus looked closely at the two Bissières. Though
they were hardly extraordinary, the price was right. Berger and
Drewe wanted to make a quick sale and were prepared to accept a
price well below market value. If Mibus paid cash, they would take
£15,000 for the pair.
Cash deals were common, and were a good way to
lighten the tax burden. Mibus agreed to the terms and almost
immediately sold one of the paintings to a French dealer for a good
profit. He decided to hold on to the second and show it at an
upcoming art fair.
Several weeks later he returned to Berger’s garage
to see another Bissière, as well as a work by Nicolas de Staël. The
Bissière, titled Composition 1958, was a colorful oil with a
red border and several red, yellow, blue, and white squares. The de
Staël was equally vibrant, with the artist’s characteristic use of
thick layers of paint laid down with a knife. On its reverse was a
brief dedication to a Mrs. Richardson: “To the memory of our walk
in the park this afternoon.”
A nice detail, Mibus thought, wondering who the
handsome artist’s companion had been.
He struck another cash deal with Berger: £32,500
for the de Staël and £7,500 for the Bissière. Then he took the de
Staël to Christie’s for a “flyby,” an informal estimate of what the
work might bring at auction. One of the Christie’s experts quoted a
figure much higher than the sum Mibus had paid and encouraged him
to put it on the block. He said he would think about it.
Mibus’s was a labor-intensive business. For all the
glamour and spark it provided, and for all that he could be
physically close to paintings he loved, art was a very tough
market, one that operated in a narrow universe whose inhabitants
could be as petty and vicious one day as they were generous the
next. Competition was fierce: Of the several hundred active art
dealers in London, New York, and Paris—three of the major art
markets—only a handful were successful on a grand scale. Galleries
went out of business every year. Mibus had held on through the bad
times and remained a respected midlevel dealer.
Most gallerists earned the lion’s share of their
income from commissions, taking a third to two thirds of the
selling price of works by the artists they represented. These were
high fees indeed, but the risks were high too. The art market was
stormy at best, and an artist on whom a dealer had bet heavily
might fail to generate the buzz necessary to command top dollar.
And the overhead for a gallery was huge. A successful gallery
needed a respectable address, as well as a staff that included
secretaries, accountants, and stock handlers. A top-notch gallery
had to install a new show once every few months to maintain
credibility, and to try to make a profit on pieces in inventory.
The shows were not cheap: There were costs for promotion,
advertising, crating, trucking, insurance, installation. After a
splashy opening night, the whole thing could run to as much as
fifty thousand dollars. It was not unusual for a dealer to break
even or report a loss, even if the show sold out.
In a good year, a midlevel dealer might move a
dozen works by a handful of new artists at $5,000 to $20,000
apiece, but that was hardly enough to keep a business going. The
dealer also had to make a few top-drawer sales of $200,000 and up,
and sell a few paintings from other dealers or collectors on
consignment, which could net 10 percent of the selling price.
Dealers had to keep an eye on rival gallerists as
well, and maintain a solid list of contacts and a full social
calendar. Gossip was an important element of the art business.
Deals were often struck in back rooms, with only the dealer and the
buyer knowing exactly how much money had changed hands. Even at
auction, and even for experienced paddle raisers, it wasn’t always
clear when a work had been sold and at what price, leaving dealers
to rely on their best guess to price their own holdings
accordingly.
They also had to worry about antagonizing their
clients, who were often among the richest people in the world:
industrialists and financiers and attorneys who could easily put a
gallery out of business with a single lawsuit. Not only that, but
selling to a wealthy collector did not necessarily guarantee
payment. Stories abounded of collectors buying a work on credit,
enjoying it for a year, then returning it without having paid a
penny. Others had been known to buy a picture on credit and then
sell it at auction before paying the debt. Police in London and New
York knew of collectors who had skipped town with “borrowed”
paintings. In a world where transactions were often sealed over a
nice meal or by oral agreement, there wasn’t much a stiffed dealer
could do but weep.
Mibus took the de Staël home and hung it in his
living room. It was filled with color, an abstract landscape of
optimism created by a man who had suffered from insomnia and severe
depression, and had eventually flung himself from his
eleventh-story studio. It had been a while since Mibus enjoyed the
luxury of an acquisition like the de Staël, but circumstances were
such that he could now afford to keep it for a while. Instead of
consigning it to Christie’s, he would allow himself to savor the
painting.