Showing posts with label bronfman. Show all posts
Showing posts with label bronfman. Show all posts

Wednesday, October 24, 2012

Jamaicans Involved in Resort Schemes in the 1950's

We are well aware of how spies were used by the British government to ensure America's entry into World War II, as well as to rid the White House administration of leftist Vice President Henry A. Wallace (see J. Conant's The Irregulars for details on that operation). But did the spying operations continue beyond that point and into the 1960's?

We have been told that Sir William Stephenson had sold Hillowton, his residence in Jamaica, in 1951 and relocated to Bermuda. His closest neighbors while he was there would have been the men who developed the resort of Round Hill and later Tryall. We will first determine who those Anglo-Jamaicans were by returning to the 1957 article, which announced the plan to construct the Tryall Club.

The Jamaicans at Tryall

We again post the news clip for ease of reference as more unfamiliar names are brought forth. Simply click on the article to the left to see the full size version. British colonialists comprised the Jamaican delegation of the syndicate of investors. Jamaica had begun as a base for privateers and English capitalists using black slave labor to operate sugar plantations until abolition of the slave trade in 1834. The island, previously a part of the Dominion, became a member of the British Commonwealth in 1962; the old colonial mansions, called Great Houses, remained until the descendants of the families got together and decided to develop possibilities for tourism. 

George Girardet--Mountbatten's Pilot

One leader of the 1957 Tryall syndicate was George Breary Girardet, who, during WWII had been personal pilot to Lord Louis Mountbatten, Supreme Allied Commander in the Far East--although officially Girardet was a squadron leader with the Royal Air Force Bomber Command. Not only was Girardet's boss, Lord Mountbatten, the uncle of England's Prince Philip, the Duke of Edinburgh--whose wife was crowned Queen Elizabeth II in 1953--but he had a few eery contacts to several of the British friends of Clay Shaw, the only man brought to trial for the assassination of President John Kennedy. 

Sir Michael Duff
One of those mutual contacts was Sir Michael Duff, reputedly one of Shaw's lovers. Duff, a bisexual, married the eldest daughter of the 6th Marquess of Anglesey in 1949, and the couple
adopted a son, Charles David Duff (b. 1950), who became a theatre historian. A documentary screened on BBC Two Wales in 2005 ("Faenol: Secrets Behind the Wall") featured Charles Duff discussing his childhood, the bisexuality of his adoptive parents, their marriage of convenience, and the details of his parentage.
(See also self-published booklet by Anthony Frewin, Late Breaking News on Clay Shaw's United Kingdom Contacts (1994) for names of royal-linked contacts from Clay Shaw's address book. )

Girardet was born in China and educated partly in England and partly in the United States. His mother, Marigo Lucia Maximo, was born in Virginia USA in 1887 but grew up in the cotton district of Toxteth Park near Liverpool, England. Girardet's real estate development business in Jamaica in 1950 was sponsored by Lord Ronald Graham, who severed the partnership in 1958. It would later be revealed that Graham had some quite mysterious links to the Tate-LaBianca murders which occurred in 1969:
Click to enlarge.
Lord Ronald Graham, Realtor, P.O, Box 16, Ocho Rios, Jamaica was interviewed regarding the lease of a house and hiring of servants for a period from July 12, 1969, to November 1, 1969. The lease was signed by Ravenel Stanland and Charles Tacot. The terms of the lease was a rent of $3,000 payable by a 25 percent deposit with balance on arrival.  A cook, maid and gardener were to be supplied by Mr. Graham's real estate office.
Sometime following the Tate murder, August 8-9, 1969, the dates of the lease were changed. The departure date was changed from November 1, 1969, to August 23 , 1969. The last person to occupy the residence left August 18, 1969. Investigating officers then traveled to Montego Bay, Jamaica where it was learned that Daniel Stanland had leased a car from Avis-rent-a-car.

 
John Pringle

John, born in 1925, was the son of Kenneth and Carmen DeLisser Pringle. They operated the 100,000 acres of sugar, banana, citrus and cattle lands throughout the Parishes of St. Ann’s, St. Mary’s and Portland, assembled in the early 19th century by Sir John Pringle, and by 1953 John had inherited the land and set up the Round Hill Hotel. He was given the title Custos of Hanover. 

Click to enlarge.
John's mother was a member of the DeLisser family, which included William DeLisser, whose wife -- the former Ida Browne (daughter of a famed member of Prince Philip's polo team, Charlie Browne) -- owned the Tryall Estates since the end of WWI. 
By August 28, 1959 we learn from the Gleaner that Girardet, Pringle, and the Kerr-Jarrett family of St. James Parish with other landowners east of Montego Bay, in St. James and its adjacent parish on Jamaica's north shore in developing Rose Hall:
Estimated cost of the road, planned for a proposed resort area, is £300,000. This announcement followed an informal meeting between Mr. Coombs and Messrs. George Girardet of Rose Hall Limited, and Claude N. Clarke, surveyor, at the Ministry, last Wednesday....The project for development of the Rose Hall area is being financed by local, English, United States and Canadian investors. The directors of the development project include the Hon. F. M. Kerr-Jarrett, Gustos of St. James, Chairman; and Mr. S. Bronfman, President of Seagrams, Mr. John Loeb, Senior Partner of Loeb and Rhodes, Bankers of New York, Sir Gordon Munro, retired London banker, Mr. John Pringle of Round Hill, Mr. Peter-Jarrett of Montego Bay, Lt. Col. William Noble, and Mr. George B. Girardet of Graham Associates Ltd. Mr. Girardet declared that all the finance required is available immediately, according to the release. The development area will make adequate provision for public bathing, fishing and picnicking facilities. Included in the plans are three seaside parks and three road-side parks.
Seagrams in Jamaica from 1928

In 1928 the Bronfman family, who migrated to Canada in 1889 from a nation that was to become one of the Soviet Republics during the Russian Revolution, bought the stock of Joseph E. Seagram, a Canadian distilling company. They used the molasses produced there for the whisky made in Scotland. When the war came, however, it brought sugar rationing. Seagrams then bought outright certain estates in Trelawny parish in 1944 to produce rum under the name, Captain Morgan Rum. By 1948 plans were announced for a new bottling plant on Spanish Town Road:
Alex Goldberg, chairman of the Board of Directors of Captain Morgan Rum Distillers (Jamaica), Ltd., Mr. Adalbert Herman, Director of Production of the Seagram organisation in Canada; and Mr. A.M. Henderson, Secretary-Treasurer of the Distillers Corporation— Seagrams Ltd., the parent company. Mr. V.C. McCormack, director and Resident Manager of the company in Jamaica, was at the airport to meet the party, who plan to remain here for two to three weeks.
The Bronfman family owned Seagrams, but were not then in control of the board of directors and executive offices. This would change in the 1950's. The Gleaner stated in 1980:
In 1953 Messrs. Seagram Ltd. of Montreal, Canada, a wholly-owned subsidiary of distillers corporation came and bought out all these Long Pond estate holdings from Sherriff and Co. The president of the overall operations was Mr. Samuel Bronfman who had formed a tripartite organization consisting of Canada, U.S.A. and the world. This company is regarded as a world leader in rum production, while also being the largest distillers. It is in this regard that the famous Long Pond rums have long been used as part-blends in these operations to help in achieving the place of the largest supplier of high quality rums in the world. These Trelawny estates are administered by Mr. Charles R. Bronfman as President of the House of Seagrams Ltd. representing his father, based in Canada. They both have shown great interest in the advancement and growth of Jamaica in world economy and especially so with Long Pond in Trelawny.
Long Pond's sugar factory had long been owned by George Stephenson Hewan Taylor of the Glamorgan Great House until his death in 1935. As the Jamaican agent for J. B. Sherriff and Co., Ltd., of Glasgow, Scotland, Taylor participated in a ceremony in 1930 at Falmouth, Trelawny. The amusing headline, indicating the government's greater interest in taking from rather than giving back to the colony, read:
Sir Edward Stubbs Hopes For Improvements in Water and Road Facilities of Island but Careful to Remind Large Gathering That he Commits Government or Himself to Nothing.
J . B. Sherriff was a shareholder in the Indo-China Steam Navigation Company Ltd. established in Shanghai in 1873 as a subsidiary of Hong Kong based Jardine, Matheson and Co., whose directors at the time included William Keswick. A further breakdown of ownership is set out in the following presentation:
In 1921 Messrs. Sheriff and Co., well known Distillers from Scotland, purchased Long Pond. In 1953 Seagrams Limited of Montreal, Canada, a wholly owned subsidiary of Distillers Corporation, purchased the Long Pond Estates. The year 1955 ushered in a new era for the owners of Long Pond who acquired Vale Royal, a neighbouring Estate owned by the late Mr. Arnold E. Muschett.

In November of 1977 the Jamaican Government bought Trelawny Estates and renamed it. The National Sugar Company of Long Pond (Ja.) Limited [better known as Long Pond Sugar Co. Ltd]. In 1993 it was divested to a consortium of financial institutions and individuals. The principal shareholders were Pan Jamaica Investment Trust Company (41%), Corporate Merchant Bank Limited (20%) and Island Life Insurance Company Limited (10%).
[Source: "The History of Trelawny" by Dan L. Ogilvie]

It would appear to anyone who knows the role the Bronfman family has played in the distribution of bootleg whisky and the creation of the same routes for distributing illegal drugs that Jamaica had become an integral part of their scheme by the time Tryall was planned. We will pick up with the Americans involved in the Tryall syndicate next time.

Thursday, August 25, 2011

Motive: To Make Sure Israel Kept the Bomb?

In the Introduction to his book, Salvador Astucia wrote that the motive for assassinating John Kennedy was clear.  It was done to end the Kennedy Dynasty: 
The reason Israel acted when they did was because Kennedy was on the verge of ending the Cold War. He was also making plans to prevent them from acquiring the Bomb. This called for a drastic response....President Kennedy had voiced strong, albeit private, opposition to Israel’s development of the Bomb. The Kennedy Administration was well-aware of Israel’s nuclear reactor in Dimona. In fact, Kennedy and Ben-Gurion got into a heated personal exchange over that issue. Kennedy was concerned about Israel’s nuclear capabilities and made a secret deal for regular American inspections of the nuclear reactor in Dimona in exchange for Hawk anti-aircraft missiles, something that Ben-Gurion wanted. Ben-Gurion allowed an inspection once, but it was a deception. The Dimona facility was disguised to look like a nuclear power plant, but the CIA advised Kennedy that this was not the case and advised the President to push for further inspections.
Astucia continued his Introduction by setting out a "scenario of how the plot against President Kennedy was conceived and accomplished":
I believe the assassination was decreed by Nahum Goldmann, founder of the World Jewish Congress and its president in 1963, after taking counsel from influential friends of Israel.
They likely included, but were not limited to the following individuals:
  • David Ben-Gurion, Prime Minister of Israel and head of the Mapai Party (1948-53 & 1955-63)
  • Levi Eshkol, Prime Minister of Israel and head of the Mapai-Labour Party (1963-69)
  • Golda Meir, Prime Minister of Israel and head of the Labour Party (1969-74)
  • Menachem Begin, former commander of the terrorist organization, Irgun Zvai Leumi (Hebrew: National Military Organization), Prime Minister of Israel and head of the Likud Party (1977-83)
  • Yitzhak Shamir, former member of the terrorist organization known as the Stern Gang, also a former member of Irgun Zvai Leumi, Prime Minister of Israel and head of the Likud Party (1983-84 & 1986-92)
  • Yitzhak Rabin, Prime Minister of Israel and head of the Labour Party (1974-77 & 1992-95)
  • Samuel Bronfman, billionaire businessman, former bootlegger, owner of Seagram-Distillers Corporation; resided in Montreal
  • Louis Bloomfield, international lawyer (and Bronfman’s attorney), contractor for the CIA and FBI, formerly a British Intelligence officer who served in Palestine under the command of General Charles Orde Wingate training Haganah soldiers during the Arab Revolt in the 1930s; resided in Montreal
  • Bernard Bloomfield (brother of Louis), influential businessman; resided in Montreal

One can easily see Goldmann, speaking not only for himself, but as President of the World Jewish Congress that year, prophesing that President Kennedy should die for the nation of Israel. And his death would not only be for that nation, but for all friends of Israel scattered abroad. From that day forth they plotted to kill him. Louis Bloomfield was directed to manage the assassination. And he did so with the full knowledge and support of Lyndon Baines Johnson and J. Edgar Hoover.

Astucia says further that David Ferrie had flown the assassins from Dallas to Montreal in a private plane several days after the assassination, and, from there Bloomfield arranged to have them flown back to Marseilles, France." He cites as his source a statement made by Christian David to "Steve Rivele that the assassins were flown from Dallas to Montreal about ten days after the assassination (reference The Men Who Killed Kennedy). [See DVD version]. Second, it has been established by Garrison and others that Ferrie provided pilot services on an as needed basis for members of the 'cabal.'  Garrison specifically pointed out that Ferrie had flown Shaw to Montreal on numerous occasions. (Reference On the Trail of the Assassins, pp. 136-137.)"

 Part of the above theory is supported by the contents of a file resulting from a lawsuit filed in 1982 by Gary Shaw, with Bernard Fensterwald acting as his attorney. The report dated June 1981 is referred to as "A Possible French Connection," and involved a dentist in Houston, Texas named Lawrence M. Alderson. The two served in the military together in Europe and Algeria. This file can be read in person at Hood College in Frederick, Maryland, where Harold Weisberg's archives are stored.

In 1936 Nahum Goldmann was in Geneva, elected chairman of the administrative committee of the first World Jewish Congress.  Judge Julian Mack of New York was elected honorary president, with Rabbi Stephen S. Wise named chairman of the executive committee. The meeting adjourned on August 15 that year, and in the years after the war, as chairman of the Jewish Agency for Palestine and president of the Conference on Jewish Material Claims, Goldmann negotiated  the German- Israel restitution agreement with West Germany for it to pay $805 million in reparations to Israel, which was signed in September 1952. He also succeeded Rabbi Wise as president of the World Jewish Congress.

As for Louis Mortimer Bloomfield, Astucia cites David Goldman and Jeffrey Steinberg research that Bloomfield was "recruited into the British Special Operations Executive (SOE) in 1938, during the war was given rank within the US Army, and eventually became part of the OSS intelligence system, including the FBI’s Division Five. Reportedly, Bloomfield became quite close with J. Edgar Hoover." 
[See book about Rabbi Wise.]

He also includes in another footnote (fn. 3) a reference to the book written by Louis' brother, Bernard Bloomfield, Israel Diary (1950), p 5. Stating that "Louis had been a major in the Army Service Corps," before the two brothers traveled to Israel in 1949, Bernard had written: 
"We had dinner at the hotel and then went to a night club. There Amos [brother-in-law*] met a soldier whom he hadn’t seen for twelve years. They were at that time involved in the same arms smuggling plot, back in 1936, for which Amos was sent to jail. They had quite a reunion. He was a fine big fellow, a major, married, with children. When he learned Louis was a major in the Army Service Corps, in which he also had served, he became more communicative and told Louis and Amos that he was fed up with life—all his friends having been killed or wounded. He couldn’t get out of the army because he was such a good soldier; they wouldn’t release him. He said he received 38 [Israeli pounds] per month as pay, and it cost him 75 [Israeli pounds] to live. He made a very good impression on us—a decent and serious fellow."
 Astucia also cites Michael Marrus book, Sam Bronfman: The Life and Times of Seagram’s Mr. Sam (1991, p. 112) as the source for the following statement:
Sir Mortimer Barnett Davis [owner of the Canadian Industrial Alcohol Company] was a whisky supplier to Sam Bronfman during prohibition.
THE DAILY GLEANER - January 26, 1933
A REVIEW OF THE WHOLESALE
LIQUOR TRADE
A depressing picture of the fate of those interested in depots for the American trade appeared in a London morning paper the other day. This report, which was dated from Nassau, opened with the cheerful news that "the days of dry America are numbered, and in their passing passes also the bootlegger, the rum-runner, and the highjacker." The result for one Colony, we are told, is debt and destitution.

The truth of the matter is that the wet victory in the United States has nothing to do with the depression in the West Indies. Several years ago it was found that Canada proved a more satisfactory base for operations. with the result that the West Indies lost much of their former prosperity. In a few hectic years one Colony had replaced rock ruts with roads; waterworks were substituted for wells; public wharves and schools were built. Naturally, it is now feeling the difference.

So, too, is Canada, for that matter; for as a result of the enactment vetoing shipments of liquor consigned to United States ports, the trade is now operated from the French Islands of St. Pierre and Miquelon. The American market is so important that strong influences are at work to induce the Dominion Government to rescind the Export Act. Such a step would give a great impetus to the Canadian liquor trade, and Scotch whisky would also benefit to a lesser extent.
ATLANTIC WHISKY COMBINE.

According to a pronouncement from the leading independent distilleries in Canada, a merger of the Canadian and Scoto-Canadian interests "on an equitable basis," still depends on a good deal of compromise from the extreme bargaining position taken up by principals of the various companies. When several years ago the Distillers' Corporation (the Canadian subsidiary of the Distillers Company, Ltd.. Edinburgh) united with Joseph Seagram and Sons, following the merger of Hiram Walker with Gooderham and Worts, a larger amalgamation was only frustrated, it is believed, by the opposition of the Canadian Industrial Alcohol Company. Since that time, business has been poor, and larger stocks of liquor have been accumulated by all the competing concerns; competition for the irregular United States trade having combined with the high internal taxes to reduce profits.

Wednesday, May 18, 2011

A Spooky Houston Syndicate

In a previous blog, I discussed Joanne Johnson King Herring, the former doyen of the Houston social scene. Joanne one the one-time girlfriend of Charlie Wilson in Charlie Wilson's War and was played on the screen by Julia Roberts. After her romance with Wilson, she later married a rich businessman named Davis.

I began my research on her long before George Crile wrote Charlie Wilson's War. More accurately, I was researching her husband, because he was ran a natural gas corporation for years before it became Enron. Already teetering on the bring in August 2001, Enron used as its excuse for its global collapse the destruction of the World Trade Center on September 11.

You can call me a cynical skeptic if you like.

When I first heard of Joanne Herring, I was doing research into an informally organized political group that met in Houston, Texas and was often given credit for providing the funds that elected Lyndon Johnson to Congress and, later, to the U.S. Senate and the Presidency.

Herring 's husband was ancillary to that group, not an actual member, and he came to my attention once he moved the corporate headquarters of Houston Natural Gas, out of the Petroleum Building--where it had been located since 1927--and into 1200 Travis Street, an office building across the street a few blocks to the north from Houston's largest department store, then called Foley's.
 
Petroleum Building, 1314 Texas Ave.


Robert Ray Herring began working for Houston Natural Gas (HNG) Company in 1963, when a corporation he had set up in 1958 to build natural gas pipelines (Valley Gas Corp.) was bought out by HNG, and he became president in 1967. Herring's previous employer had been Fish Engineering owned by Ray C. Fish, the largest stockholder in El Paso Natural Gas. Fish also founded Pacific Northwest Pipeline Co. which built a pipeline from the San Juan Basin of Colorado and Artesia, New Mexico to Puget Sound. Fish died in 1962, at about the time Valley Gas Company was purchased by HNG.

For many years Houston Gas & Fuel (the securities of which were held by Houston Gas Securities corporation) had produced the natural gas bought and distributed by the HNG Co. to Houston consumers. Consolidation began in 1928 when the stock of Houston Gas Securities, then owned by Empire Power of New York, was bought by a local company composed of William L. Moody, III and Odie R. Seagraves.
Houston Gas Securities and Empire Power Corp



Completed by the end of March 1930, the consolidation was summarized by Time Magazine as follows:
Last week was announced a major gas consolidation in the southwest. Companies affected are Louisiana Gas & Fuel Co., a subsidiary of Electric Power & Light (which in turn is controlled by Sidney Zollicoffer Mitchell's Electric Bond & Share Co.) and United Gas Co., which Odie Richard Seagraves organized in 1928. Mr. Seagraves, together with William Lewis Moody III, constitute what is commonly known as the Moody-Seagraves interests.

Able promoters, Mr. Moody and Mr. Seagraves have developed many a Texan and Southwestern industry, including hotels, cosmetics, railroads. Mr. Seagraves has a large ranch at Kerrville, Tex. Although the new gas company will be organized as a subsidiary of Electric Power and Light, Messrs. Seagraves and Moody retain a large stock interest and will in all probability be represented on the directorate.

Electric Bond & Share will have a controlling interest in the as yet unchristened new company, which will also purchase from Standard Oil of New York the natural gas properties in Texas and Louisiana owned by Magnolia Gas Co., a Standard subsidiary....Significance of this consolidation lies:

  1. in the extended influence of Electric Bond & Share;
  2. in the drift of the natural gas business away from its petroleum and toward its public utility affiliations;
  3. in the probable status of the newly formed company as the first of many far-reaching consolidations which should ultimately create a super-gas situation comparable to the already existing super-power systems in the electric field.


According to Griffin Smith, Jr. in an article, "Empires of Paper," in Texas Monthly (November 1973), in the 1930s:
Vinson Elkins...was a 'four-client firm'-- those clients being:
  • Great Southern Life Insurance Company,
  • Moody-Seagraves,
  • the production end of United Gas Corporation, and
  • Pure Oil Corporation.
All but the last one were headquartered in Houston. Judge Elkins saw another resource, however, and exploited it brilliantly. The local independent oil men had never catered to Baker & Botts, thinking the Baker firm was too close to the big oil companies and Eastern finance. The Judge, wearing his banker's hat as president of First [City] National, gave them loans; VE in turn did their legal work...This neat little arrangement catapulted VE into the big time.

In December 1965 42% of United Gas Corporation stock was sold to Pennzoil Corporation. Only four years earlier a subsidiary, Shreveport-based United Gas Pipe Line, among other companies, had negotiated long-term contracts with Texas Eastern Transmission Co. allowing the latter company, formed at the end of WWII by George and Herman Brown and other Houston associates, to expand. 
Pennzoil was formed in July 1963 when South Penn Oil shareholders approved a merger with Zapata Petroleum and Stetco Petroleum, allowing Zapata stockholders to exchange four shares of Zapata common stock for one share of Pennzoil stock and Stetco shareholders to exchange seven for one. In 1959 Zapata Petroleum had split off part of the company into Zapata Offshore, with the new stock going to George Bush, who previously had been a shareholder of the former company; he therefore obtained no interest in either Pennzoil or United Gas by virtue of the mergers that occurred subsequent to the Zapata split.

HNG had bid on long-term contracts to supply gas to other major cities in Texas, but it was being bombarded at that time by competition waged by a Texan named Oscar Wyatt through his corporation, Coastal States Gas, particularly in Corpus Christi, San Antonio, and Austin, who claimed he could save the cities money.
In 1955 the firm became the Coastal States Gas Producing Company, engaged in collecting and distributing natural gas from the South Texas oilfields. In the early 1960s Coastal purchased the Sinclair Oil Corpus Christi refinery and pipeline network and established a subsidiary called Lo-Vaca Gathering to supply natural gas to Texas cities and utilities. When Lo-Vaca curtailed its gas supplies and raised prices during the energy crisis of the early 1970s, customers sued Coastal. Regulators ordered the subsidiary to refund $1.6 billion in 1977, and Coastal spun off Lo-Vaca as Valero Energy to finance the settlement.
Newspaper articles from that early era tell us that Hy Byrd, who grew up in Port Arthur, Texas, had become wealthy from building the pipelines to carry gas from the south to northern areas and that in 1962 he decided to "branch out into the aerospace industry"--a decision that came at the same time Senator Lyndon Johnson was using his influence in locating an arm of the NASA program in Houston.

Byrd also went into banking by acquiring the stock of the Montrose National Bank (located at 3400 Montrose Street), changing the name to Central National Bank.

The majority ownership of the bank was controlled at the time by Hy Byrd's corporation, Gulf Interstate Corp.[2] During this time, Houston Natural Gas was under the management and control of a variety of businessmen. Hy Bird would be succeeded as president in 1967 by Robert R. Herring.

A noted architectural firm was hired to design an office building for the bank at 2100 Travis at Gray Street, and other businessmen who had bought stock in the bank located their own businesses in the building. Hy Byrd was president of the bank, and another person involved in Central National's banking syndicate was L.E. Cowling, (responsible for the founding and initial capitalization of Alabama National Life Insurance Company, Capital National Life Insurance Company of Houston, Texas, and Southern States Life Insurance ) later a defendant named in an intricate scheme of corporate insider loans in the Shell v. Hensley case, 430 F.2nd 819 (1970).

2100 Travis - Central Square
William Wayne Caudill had been acclaimed for his school building design before he moved from College Station to Houston in 1959--senior partner of the Caudill Rowlett Scott (CRS) firm of architects, which would eventually become CRS Sirrine. Caudill was also a professor from 1961 to 1969 at Rice University where he also served as chairman of the department of architecture. The Rice professor was chosen to design the bank's office building. 
During both the Johnson and Nixon administrations, Caudill was appointed to federal government advisory commissions, most notably tapped to be "architectural consultant to the Department of State on foreign buildings" from 1974-79 for President Gerald Ford's administration. The CRS firm's history is recounted below:
In the late 1960s, as the boom in school construction started to wane, CRS branched out into the health care market and broadened its planning and design capabilities. To adapt to its new focus on design, the firm renamed itself again in 1970, incorporating in Delaware and becoming CRS Design Associates. The following year CRS made its initial public offering of 350,000 shares at $12 a share on the American Exchange. With the resultant infusion of cash, CRS began a strategy of expansion, and it immediately began acquiring other businesses, especially in construction management and design. Under the leadership of Chairman Thomas A. Bullock, one of the original partners, CRS would acquire ten companies over the next eleven years; these companies were businesses as diverse as interior design, water resource engineering, and pulp and paper, and their acquisition transformed the nature, size, and role of the company.
Stock Issued in 1971 by Underwood, Neuhaus & Co. of Houston, TX

 In 1971, the first year it publicly reported revenues and profits, CRS had revenues of $8.79 million and net income of $955,000, up from $6.465 million and $500,000 the year before. In 1972, CRS made its first major post-public offering acquisition, buying A.A. Mathews, a construction engineering firm specializing in tunnel design with offices in Los Angeles, New York, Washington, D.C., and Rome. With this stroke CRS moved into the civil engineering market. 
The same year, CRS also bought a water resources engineering company, Stevens, Thompson & Runyan, Inc., which had offices in Oregon, Washington, and Idaho, for 232,000 common shares and $1.65 million in cash. With these acquisitions, CRS's businesses boomed. By 1973, revenues totalled $17.1 million and brought the firm a net income of $1.464 million.
In 1973, CRS and a joint venture partner, McGaughy, Marshall & McMillan, were awarded one of the largest Middle Eastern projects ever, to provide full architectural and engineering services for the King Abdulaziz Military Academy near Riyadh. By 1976, the firm had 761 employees, and revenues of $33 million, with a net income of $2.3 million. As the firm brought in more construction and engineering contracts, the numbers continued to rise. In 1979, the firm had $50 million in revenues and $2.85 million in net income.
In 1978, CRS acquired Clark, Dietz & Associates-Engineers, an Illinois-based civil engineering firm that specialized in environmental engineering, for $5.25 million. That year CRS melded the four engineering firms it had purchased in the last five years into one, STRAAM Engineers. CRS continued to develop its international business, completing massive works at King Fahad University in Saudi Arabia. Indeed, in the 1970s, about 70 percent of CRS's revenue derived from international orders, most of which came from building schools, hospitals, and other institutions in the Middle East.


Also in 1978, Saudi businessman Ghaith Pharaon bought a large stake in CRS, buying about 20 percent of the firm's shares at about $20 per share. Although he became the firm's biggest shareholder, the eight original partners still owned a larger share between them, and were basically left in control. But changing conditions in the world economy and marketplace forced CRS to transform itself in the 1980s. It went into the decade heavily reliant on foreign construction business. But by the end of the decade, it would focus more on domestic design and power generation.

Military orders would continue to play an important role in the company's growth in the 1980s, just as they had in the 1970s. In 1980 CRS received a contract of about $56 million from the U.S. Air Force to provide furnishings and equipment for the Saudi Arabian F-15 aircraft program. And the following year CRS received a subcontract to formulate the master plan and construction logistics planning for an MX missile base in the western United States, which contributed significantly to the firm's revenues of $76 million and income of $5.25 million in 1981.

That same year CRS acquired Geren Associates, an architectural and engineering firm based in Fort Worth, Texas. To develop its domestic construction business, CRS bought four general contracting firms the following year: Metro Southwest Construction, based in Dallas, and Western Empire Construction, Colo-Macco, and Summit Constructors, all of which were based in Denver. This move greatly expanded CRS's regional coverage.

By 1981 orders from the Middle East had slipped while other areas of business had grown, and only one quarter of CRS's revenues came from projects in the Middle East.

Still, the 1980s brought lucrative Middle Eastern contracts to CRS. Between 1982 and 1987, CRS managed a five-member international consortium of firms that planned, designed, and did construction management for a $2.1 billion project for Saudi Arabia's Ministry of the Interior to provide 12,000 housing units.

In 1982, CRS began acquisition talks with J.E. Sirrine, a privately-held mill architect and engineering company based in South Carolina that had been in existence since 1902. But CRS canceled the talks in March 1982. In 1983, though, the talks were revived and the sale went through. Sirrine has been CRS's most important acquisition, and it has helped change the direction of the company. At the time, Sirrine's main appeal was that it had a large domestic business, and that it represented new geographic and business areas. Sirrine provided engineering services to the growing pulp and paper, tobacco and chemicals business in the southeastern United States. More importantly, though, Sirrine was a major power plant designer. After the acquisition, in October 1983, CRS Group formally changed its name to CRS Sirrine, Inc.

While Hy Byrd chaired Gulf Interstate, the company also purchased a 40% interest in Kenneth Schnitzer's office building at 1200 Travis Street (between Polk and Dallas Streets)--called "the Houston Natural Gas Building" for its core tenant. Across the street from 1200 Travis, Gulf Interstate also acquired a leasehold interest in the Americana Building which had several floors for parking, leased to Foley's Department Stores (now Macy's) on the other side of Travis Street.

According to an April 24, 1977 Houston Chronicle:
Over the past several years, the firm [Gulf Interstate] has been going through the motions involved in establishing a business relationship with developing Arab petronations. At present an Arab representative "maintains a presence" for the company by officing at a residential villa Gulf Interstate has acquired in Al Khobar, Saudi Arabia. * * * * In the early 1950s . . . "a pipeline from Louisiana to Ohio was, in essence, promoted by Hy Byrd (a private investor currently on the Gulf Interstate board) and others to deliver gas to Columbia Gas in Ohio.The obvious thing happened: Columbia merged with Gulf Interstate Pipeline and took it over," says Wells.

The engineering company Gulf Interstate Pipeline had formed, however, turned out to be an unwanted stepchild for Columbia's purposes.

In June, 1958, therefore, Gulf Interstate Co. was spun off with Gulf Interstate Engineering as its subsidiary.

"Part of the spinoff included the rights to process all the gas on the pipeline," Wells said. This right was sold at the turn of the decade [1960] to what is now Allied Chemical.

"This gave Gulf Interstate two principal assets," said Wells: "$4 million and an engineering company." * * * The $4 million . . . went mostly into Houston real estate.

According to the Funding Universe website, its history is further detailed as follows:
Gulf Interstate was involved in the construction of the $200 million Transwestern Pipeline, which extended from west Texas to California and was completed in 1960. The company continued to flourish in engineering, gaining a reputation as an innovator in this field. Gulf Interstate engineers designed and oversaw the construction of the world's first long-distance ammonia pipeline, the Gulf Central Pipeline, which was completed in 1970. Now a $7 million company, Gulf Interstate looked to diversify. Operating pipelines was a natural offshoot of its expertise, but as early as 1960 the company's management had begun investing in real estate, becoming especially interested in high-rise Houston office buildings.
It owned the Americana Building, a ten-story building that also housed its headquarters, located in the heart of Houston's business center. Across the street was the Houston Natural Gas Building, a 28-story structure in which Gulf Interstate held a 40 percent interest. The company also owned the Gulf Credit Card Center, which it leased to the Gulf Oil Company for its credit card operations. Moreover, Gulf Interstate acquired a 10 percent stake in some 3,300 undeveloped acres near Houston International [Now George H.W. Bush] Airport, as well as some property in Buffalo, New York. Gulf Interstate became involved in the marine terminal business, operating a "tank farm" in South Shield, England. The facility included 26 tanks to store gas and oil, as well as docking facilities.
It was also in the early 1970s during Gulf Interstate's diversification efforts that it became involved in the support vessel business that would one day evolve into GulfMark. The company acquired a 49 percent interest in a Louisiana company called Gulf Overseas Marine Corporation. The remaining stock was owned by a single individual. Gulf Overseas provided utility boats that supplied the 100 drilling rigs that operated in the Gulf of Mexico. In addition it supplied crews for anchor handling duties. With each rig in the Gulf requiring at least two support boats, the company recognized a growing opportunity. Gulf Interstate also took a 50 percent ownership position in a subsidiary formed in 1973, Gulf Overseas Shipbuilding Corporation, to build two deep sea tug boats, with the possibility of additional future construction.
Gulf Overseas would be in need of these new vessels because in 1974 it accepted an attractive offer from a foreign company and sold its three-vessel fleet, generating an after-tax profit of nearly $1 million. Also in that year, Gulf Interstate sold the Americana Building and its Buffalo [NY] properties. Although still primarily an engineering company, it continued to cast about for business opportunities. Gulf Interstate bought a stake in Northwest Pipeline Corporation. It undertook oil and gas exploration in Texas and Oklahoma through a subsidiary, Gulf Interstate Exploration, Inc....
Key Dates:
1953: Gulf Interstate Co. is formed as a pipeline engineering firm.
1959: Gulf Interstate goes public.
1983: The company changes its name to Gulf Applied Technologies.
1989: Shearson Lehman Hutton acquires a 30.5 percent stake.
1990: The marine division of Offshore Logistics is acquired.
1991: The company is renamed GulfMark International.
1997: The marine services division is spun off as GulfMark Offshore, Inc. 

In 1960 Union Texas Natural Gas was formed and merged a year later with this same Allied Chemical. Renamed Union Texas Petroleum Division of Allied, its president, J. Howard Marshall II, went on the board of Allied Chemical. Born in Maryland in 1905, he became a Yale law professor while in his twenties and was soon chosen to work in FDR's Interior Department as oil coordinator. From that important position he moved back and forth between oil and gas corporations exploring in Saudi Arabia involving both California and Texas independent oil men and the federal government.

Marshall's name is most commonly known with what occurred in the last two years of his life; in 1994 at the age of 89 he married 26-year-old topless dancer and former Playboy "Playmate," Anna Nicole Smith.
One of the original tenants of the Central Square buildings was James Talcott Western, Inc., subsidiary of James Talcott, Inc., the country's largest independent industrial finance company, whose president since 1961 had been Henry R. Silverman. In 1973 the old factoring corporation was sold to Michele Sindona, an Italian banker.

Most of the other tenants were insurance companies, most no doubt connected to companies controlled by Cowling.

The tenants in the Americana Building which Gulf Interstate owned were somewhat different. Those tenants, among others, included
  • the Consulate General of France andConsulate of Ecuador,
  • Gulf Central Pipeline,
  • Hunt Oil Co.,El Paso Natural Gas Building Co. (a Murchison company), and
  • the Johnston Division of Schlumberger.
According to a deed dated January 6, 1963, the original leasehold had been created by First City Bank when it leased the building to Melvin Silverman and Bennett Rose in July 1956 with a simultaneous sublease to Foley's Department Stores (the company where Leopold Meyer spent his career) for parking in the basement and on the first five floors. The 1963 deed conveyed a 1/3 interest in the lease to Metropolitan Industries (a corporation owned by Ken & Ralph Schnitzer) pursuant to a partnership existing in 1961 when the leasehold was acquired by Gulf National. Fee title was held by First City National Bank, which was then controlled by "Suite 8-F" member, attorney James A. Elkins.

It was noted in newspaper articles in September 1973 that Gulf Interstate had sold its leasehold in the Americana Building. The actual transaction was structured with Gulf Interstate receiving a loan of $4.2 million from New York State Teachers Retirement System, then assigning the ground lease to Black Coral Investments, N.V., a Netherlands Antilles corporation, for a $1.2 million profit. This could very well have been either a money-laundering transaction or an attempt to avoid payment of taxes. In the exhibit to its Assignment of Leases, Gulf National Properties set out all the tenants of the building, including those listed above.

Gulf Interstate was also a partner with Schnitzer's Century Properties in the construction and management of the Houston Natural Gas Building. In a newspaper article in 1985, however, the Houston Natural Gas Building was said to be owned by Prudential Insurance and BP Pension Fund, although the core tenant which gave it the name by which it was known, was the Houston Natural Gas Co. (later to be known as Enron). 
Houston Natural Gas also leased 23,600 square feet of space in the Americana Building and 80,000 square feet in the Continental Resources Building at 3040 Post Oak Blvd. The 1985 criss-cross directory showed the 5th floor of the Continental Resources building occupied by Florida Gas Transmission, a subsidiary of Enron, and the 8th floor by ANR Pipeline. Continental Resources was also an investor in the development of the Galleria.

Gulf Interstate also acquired a 20-acre industrial site near the Houston Ship Channel and a large block of undeveloped land in downtown Houston (for Houston Center, a commercial retail center developed by a joint venture between Texas Eastern and the Canadian group called Cadillac Fairview). This would connect it again to Brown & Root (located near the ship channel) and to the company called Texas Eastern, which developed the Houston Center in downtown Houston.
Texas Eastern was a corporation set up primarily by George and Herman Brown and other members of the Suite 8F Crowd with financing put together by Dillon Read’s August Belmont IV. The development also included a new Gulf Building. The original office building occupied by Gulf Oil in Houston had been constructed by Jesse Jones, and the ground floor was occupied by Jones’ Texas Commerce Bank, which incidentally had merged with the bank set up by James A. Baker.

The major occupant of the Houston Center development was First City National Bank. In 1976 the Congressional Banking Committee which investigated foreign ownership of American banks discovered that First City Bank was largely owned by N.M. Rothschild of London. This bank had been founded by James A.Elkins, partner in the Vinson & Elkins law firm in which John Connally was later a partner. It should be remembered that Connally also owned a large block of stock in the Main Bank in Houston (housed in the vacated Humble Oil Building after that company built a new Exxon headquarters building). Connally (and CIA operative Jim Bath) sold Main Bank stock to Saudi investors who would later turn up in BCCI. It would later be learned that Jim Bath was fronting for a brother of Osama bin Ladin in other investments. Rumors were that he was doing so at the behest of CIA Director under President Gerald Ford, none other than Houston oil man George H. W. Bush.


Gulf Interstate’s president was Hy Byrd, who was also president of Central National Bank during 1963. In 1966 Hy Byrd and his wife, Gertrude, conveyed a tract of land which in 1928 had been owned by Houston Gas & Fuel--later called Entex before merging with Houston Natural Gas and Enron. Byrd had an office in the Houston Natural Gas Building. Also in 1966 Byrd sold his home in West Houston’s Tanglewood Sec. 8 to the Republic of France, possibly as a residence for the French Consulate which had an office in the Americana Building. Interestingly, Entex held the old University Savings as a wholly owned subsidiary. This S&L was chaired for a time by Bob Lanier, who would become Houston’s mayor in the 1990s. Lanier had also been president of the Main Bank and was also connected to Texas Gulf, a company which selected George H.W. Bush for its board after he was fired as CIA director by Jimmy Carter.

Another interesting connection to the Houston companies is Ann Bronfman, daughter of John L. Loeb, ex-wife of Edgar Bronfman, Sr., who controlled the Cadillac Fairview Company mentioned earlier. She (along with a number of investors named Loeb, Kempner, Levin, Cohen and Gimbel with Park Avenue, New York addresses) was a partner in a joint venture called GIX Associates with Gulf Interstate Exploration Co. of Houston and Norco Investments Co. of Washington, D.C. in 1983. Norco (perhaps coincidentally) is the name of a refinery in New Orleans owned at one time by Shell Oil. In Stephen Birmingham's book, Our Crowd, he states:
Just as the Lehmans had secured their position [on the New York Stock Exchange] by marrying Goodharts and Lewisohns, so John L. Loeb secured his by marrying a Lehman--the youngest daughter of the Arthur Lehmans, Frances. . . . One sister was married to Richard Bernhard, a partner at Wertheim & Company. Another married Benjamin Buttenwieser, still one of the most important partners at Kuhn, Loeb.
John Loeb's new firm opened its doors in January, 1931. Six years later, through a merger with Rhoades & Company, an old gentile firm that needed money, the Loebs' firm, which needed a prestige name, became Carl M. Loeb, Rhoades & Company. Like his banking predecessors, John Loeb has kept his house tightly "in the family," employing among others, his son, John Loeb, Jr., a nephew, Thomas Kempner, and until his recent death, a son-in-law, Richard Beaty, as Loeb, Rhoades partners. . . .
Thanks to antennae around the world that amount to something very like a private CIA, he completed the sale of the firm's major Cuban sugar holdings the day before Fidel Castro took over. In 1945 the Loeb and Lehman millions received a new infusion of wealth when Clifford W. Michel joined Loeb, Rhodes. Michel was married to the former Barbara Richards, one of the granddaughters of Jules Bache, and therefore related to the Cahns and the Sheftels and, by marriage at least, to the Lewisohns (to whom the Lehmans, of course, were already related). Another Bache granddaughter was Mrs. F. Warren Pershing, wife of the son of the World War I general, and head of J. Pershing & Company, a rich brokerage house.
United Fruit - Empire Trust

Then in 1953 John Loeb's daughter, Ann, married Edgar Bronfman, elder son of Samuel Bronfman, the founder and chief executive of Distillers Corporation--Seagrams, Ltd., undoubtedly the richest man in Canada and among the wealthiest in the world. Bronfman money is not formally a part of Loeb, Rhoades capital, but one of the firm's partners has said, "He's a kind of partner who is awfully important." . . . The Bronfman millions, however, have joined Loeb-Lehman and Bache holdings to make up the largest single holding of stock in New York's Empire Trust Company, which has assets of some $300 million. Edgar Bronfman, now [1967] in his middle thirties, and head of his father's American subsidiary, Joseph E. Seagram & Sons, joined the board of directors of the Empire Trust Company in 1963. . . .[3]
ENDNOTES:

[1] According to a trustee's deed resulting from a foreclosure conducted by William Ladin pertaining to a loan to Anthony Luciano [B498509].

[2] Houston: A Profile of Its Business, Industry and Port, 1982. An article appeared in the Houston Chronicle on September 13, 1973, announcing that Gulf Interstate had signed a 25-year contract to design, build and operate a fuel oil terminal on the Delaware River near Wilmington, marking the company's "entry into the commercial terminaling business." The Delaware terminal was to have a deepwater dock capable of handling tankers up to 50,000 tons. This is interesting because of Kenneth Schnitzer's connection to Gulf Interstate and his involvement in the Port of Houston.

[3] Stephen Birmingham, "Our Crowd": The Great Jewish Families of New York (New York: Dell 1967), pp. 444-45.

Tuesday, April 5, 2011

Part 7 of Land and Loot

Lehman Brothers' Role in General Homes

General Homes - Connections with Canada

One way to research General Homes is to begin in 1983, when it really began to sell homes at a fast pace. It was that year that certain investment banks, primarily Lehman Brothers, began issuing mortgage-backed securities. The General Homes initial public offering (IPO) was completed that year, bringing in money for new stock issues that was pumped into real estate purchases in Harris County. Possibly this new-found cash was a means of paying off some of the other companies which had already bought land in that area, or perhaps it was to continue the growth in that area with an updated legal vehicle the attorneys and legislators had pushed through.

But as we will clearly see, the moving force behind the move into residential development and construction in Harris County was a group of Canadians who had formed a partnership to build the new commercial retail and office center in downtown Houston on land owned and acquired by an arm of the Texas Eastern Transmission Co. The Canadian group was called Cadillac Fairview, and the Bronfman family members who owned its stock were also heavily invested in banking and other industries as well. Leo Kolber explained that fact in his book, Leo: A Life
 
In 1978 Cadillac Fairview first acquired an interest in General Homes, a Texas corporation, which formed General Homes Consolidated Companies, Inc. Almost two years following the IPO, the stock was owned as follows: 
  • General Homes Management Co. owned 97%; 
  • General Homes Investment Co. (partnership of the Texans from whom the company was purchased in 1978) owned 1.5%; and 
  • ASLA of Florida owned 1.5%.  
 
The address of General Homes Management Co. was 17801 N.W. 2nd Avenue in Miami, which was the address of Morris N. Broad and ASLA (formerly American Savings & Loan Association). However, Broad and his father in December 1982 had signed a voting trust agreement relative to control of ASLA with Marvin Leon Warner, a Cincinnati businessman, to allow Warner to purchase $13 million of ASLA stock.

In 1963 the Bronfmans had acquired Texas Pacific Oil and Coal, which they held until 1981, using their $2 billion profit to take over Conoco (formerly the Continental Oil Co) by purchasing a block of stock from DuPont. According to Kolber's book, the Bronfmans would sell off Cadillac Fairview in 1987 to buy into the Music Corporation of America (MCA), which is not part of our story. Our focus is on the time they were in control--and while Edgar Bronfman, Jr., who controlled the corporate interests, was married to Ann Loeb, daughter of John L. Loeb and granddaughter of Carl M. Loeb.

In December 1983 General Homes acquired 86 acres in Old Town Spring, an unincorporated city north of Houston. The seller was a joint venture called North Spring Joint Venture--a partnership composed of Walter Mischer’s TMC Funding and United Financial Corp., in which Charles Hurwitz (a customer of Michael Milken) began buying a year before.[1]  

Development around Spring, located in northernmost Harris County, had taken off five years earlier by Canadian-connected corporations, such as Genstar Homes of Canada, which in 1977 had acquired all of Lexington Woods Section 5, purchased from Spring Village Development Co., an entity set up by H. Arthur Littell and Don McGregor, Jr. [Harris Co. File No. F404069].[2] The local executive vice-president for Genstar was an engineer named Bernard Johnson of Houston, who would become one of County judge Jon Lindsay’s biggest contributors. His engineering office on Westheimer was situated between the Galleria shopping center mall and  Post Oak Bank--next door to the original office building of an oilman named Michel T. Halbouty.

Genstar was established in Canada in 1951 as Sogemines Ltd. by Societe Generale de Belgique de Brussels. It was closely linked to the Royal Bank of Canada, and its chairman in 1955 was Angus MacNaughton.  When Genstar opened an office in the U.S., its headquarters was in San Francisco in a Rockefeller building called Embarcadero Center. In 1986, however, the Genstar corporation was bought by Imasco, based in Montreal, a company set up to handle investments for Imperial Tobacco, Canada Trust and Shoppers Drug Mart. In 2000 those corporations were sold off to British-American Tobacco and Toronto-Dominion Bank.  

Genstar bought property in Houston primarily from companies controlled by McGregor, Littell and Marvin Leggett, who were involved with Canadians in Lexington Development and in Markborough Properties, a subsidiary of Hudson’s Bay Co., Canada’s largest retailer, which acquired Markborough in 1973 and spun it off in 1990 “to shareholders in the form of a dividend. HB offered one Marborough share for every HB share held. Kenneth Thomson, chairman of Thomson Corp, and his family, holders of” the majority of shares:

Hudson's Bay Company acquired Markborough Properties, a real estate company, in 1973; Zellers, a chain of discount department stores, in 1978; and Simpsons, a group of Toronto-area department stores, the following year. Kenneth R. Thomson, representing the family of the late Lord Thomson of Fleet, acquired a 75 percent controlling interest in the company in 1979…. In a strong attempt to survive, Thomson shook up top management, eventually appointing George Kosich, a career merchandiser, president. Thomson revamped retail operations. The combined market share of the three department store chains rose to 33 percent from 29 percent in two years…. Hudson's Bay Company reversed a formidable debt picture in 1987 by shedding nonstrategic assets such as its wholesale division and getting out of the oil and gas business. In 1990 it spun off its real estate subsidiary, Markborough Properties, as a separate public company. Shareholders received one share of Markborough for each share they held of Hudson's Bay, with the Thomson family retaining a majority interest in Markborough. Also in 1990, the company bought 51 Towers Department Stores and merged them with Zellers. 

By 1981 Hudson's Bay--the merchandizer corporation, which was successor to the Canadian fur trading company chartered by the Crown--whose stock eventually came into the hands of London investment banks in 1886--would be owned by Conoco (which was taken over by the Bronfmans). But it was through a series of intricate and confusing maneuvers and manipulations which led to that outcome. To understand the relationships, we have to begin with the individuals named in Genstar documents. Genstar was busy buying land from Don McGregor, H. Arthur Littell and Marvin E. Leggett.

Who were these men?
The Great Texas Banking Crash: An Insider's Account 
Leggett and Littell, who owned Texas Bank and Trust,  were both directors also of Colonial Savings, an institution chartered in 1961, in which Littell was chairman and William H. Doyle, Jr, was president in 1977. S.N.Goldman (the Oklahoma grocery tycoon, owner of Standard Food Markets and Humply Dumpty, who in 1937 invented grocery shopping carts ), with whom the two were involved with investments in Oklahoma mineral interests, was also a director. The headquarters was 6161 Savoy in Sharpstown. Other directors were Jack D. Mulvihill,  J. Curtiss Brown, a long-time official of the Texas State Bar before his appointment as chief justice of the Texas Court of Civil Appeals for the 14th District; Edward R. Godwin, senior vice president of Mortgage Trust Inc. of Houston; and Houston City Councilman Johnny Goyen.

They worked on the development of Regency Square in Sharpstown, an area in which Frank Sharp had spearheaded a huge Texas scandal referred to as the Rent-a-Bank Scandal. Sharp had begun his 25,000-home development in the heart of Houston with great fanfare during the Cold War days of 1955 by announcing he was considering including bomb shelters as part of the construction. Seven years later, shortly after Houston had been selected as the location of NASA headquarters, Sharp began announcing that astronauts would be given free homes in Sharpstown. The acreage for Sharpstown had been acquired at a cost of $6 million in the mid-50's. Sharp had to be quite confident of success to spend that kind of money, or he must have been acquainted with some very convincing salesmen. .




In 1930 Sharp, young and single, was living in the Savoy Apartments at 1600 Main Street in downtown Houston. He transitioned from oil sales to home building in a few short years. He arrived in Houston from Crockett, Texas, where his father was a carpenter and farmer, rearing a great many children there. Within a few short years Sharp had become secretary to the Houston Lions Club and was friends with the newly elected Congressman in Houston, Albert Langston Thomas, accompanying him and his wife on out of town trips; Sharp, too, had married by 1937.

In the 1970's Littell had become associated with South Coast Investment Co., which would be located in Houston at 806 Main, a building once referred to as "Carter's Folly," home of S.J. Carter’s Second National Bank building. It later sold to a subsidiary of American National Insurance before Howard Pulver, a strange New Yorker who spent some time in Corpus Christi before relocating to Houston, began using it for apartment syndications. He and his associates were described in detail by Pete Brewton in his book, The Mafia, CIA and George Bush. An important player in that insurance company was Dee S. Osborne, who applied for a state bank charter in Sharpstown early in 1971, naming proposed directors of the Community Bank of Houston as Corbin J. Robertson Jr., Meredith J. Long, William N. Finnegan III, R. E. "Bob" Smith, Vivan Smith, Marvin K. Collie (famed attorney at Vinson and Elkins law firm in Houston), Morgan J. Davis (petroleum geologist who spent his career at Humble Oil and Refining Company (now Exxon Company, U.S.A.); and Gaston E. Heffington, all of Houston. Some of those same men were drawn into a scandal in 1983 involving the Hermann Estate, which set up the Medical Center with a gift from George Hermann:
 
 

The South Coast Investment Company was a vehicle of South Coast Life Insurance, whose directors included independent oilmen Grover Joseph Geiselman (with an office at Suite 849 of the Houston Club Building, where both W.S. Farish III and George Bush were located during the late 1950's), Floyd Louis Karsten of Fort Worth, Jack S. Blanton of Eddy Refining Company, and E.C. Scurlock (among several other oil men), attorney Newton Gresham, a partner in Leon Jaworski's firm, Charles G. Heyne, and Vernon F. Neuhaus of Mission, Texas. Most of these individuals have in some way been connected with the Neuhaus Education Center in some manner since its founding by W. Oscar Neuhaus in 1978.

Geiselman's son was married to a daughter of Everette deGolyer, and Neuhaus, who was related to the family of W.S. Farish through marriage, also served on the board of Texas College of Arts and Industries (Texas A&I in the Valley) with numerous illustrious Texans, including John F. Lynch of Corpus Christi and later Houston (senior vice president of the Texas Eastern Transmission Company) and Mrs. Richard M. Kleberg Jr. of Kingsville, whose husband was the Congressman for whom Lyndon Johnson first worked in Congress. Charles Heyne was the uncle of Marcia Heyne Modesett, granddaughter of Fred J. Heyne, Jesse Jones’ right-hand man for many years, who remained in control of the Jones family companies and foundation until his own death in 1966. More will be said about this group later.


NFL Dallas Cowboys Plastic Parking SignIn 1973 Neuhaus was one of the honorees who received awards from emcee John Connally from the Ex-Students Association of the University of Texas, along with George R. Brown of Brown & Root and Texas Eastern Transmission Co., and Tom Landry, coach of the Dallas Cowboys.

The long and short of it is that, even though not well-known, Littell was "close to wealth and power" in Texas at the time. It is a type of power that has never been adequately explored or understood. Exploration of the network that gave it life and power is the goal of this project.

Littell was also in partnership with S.N. Goldman of Oklahoma City in a number of syndications that, by all appearances, could have involved the laundering of money through overseas banks, and he was connected with some of the biggest banks in the U.S. who provided financing for his buyers.
Leggett and Littell also developed lands surrounding the Sam Houston Racetrack, that had been held by Lexington for many years before a horse-racing license was finally approved in Texas. The land surrounding the racetrack was developed by Leggett--for commercial purposes--and by General Homes--for residential. The State Highway Commission, chaired by Bob Lanier, agreed to complete Beltway 8 through the property, and Harris County Flood Control District paid for the drainage outfall. But that's another story. 


NOTES:

[1] The history of United Savings began with Houston First Savings, founded by Humble Oil executive and attorney, Rex G. Baker, Jr., which was changed to Southwestern Savings before again changing its name to United.
[2] McGregor's father had owned an office next door to Lomas & Nettleton at 201 Main in Houston and had bought land in Nassau Bay with financing from Carl M. Loeb, Rhoades & Co. In 1966 Don McGregor, Jr. had an office on the 12th floor of the First City National Bank Bldg. and was involved in a number of general partnerships with Solomon Goldman of Oklahoma City [Harris Co. File No. C414892].