Showing posts with label watergate. Show all posts
Showing posts with label watergate. Show all posts

Tuesday, April 5, 2011

The Wynne-ers' Circle

 The Power of the Wynne Family


Excerpt from Peter Dale Scott, Deep Politics and the Death of JFK, pp. 285-86:

Toddie Lee Wynne, Sr., the founder of the Wynne family fortunes, had begun in the 1930s as attorney for Clint Murchison, Sr. [10]  Bedford Wynne, the senior partner in the family law firm of Wynne, Jaffe, and Tinsley, was a Washington troubleshooter for the powerful Murchison oil and construction interests in Texas; we have already seen that in 1963 his questionable lobbying activities were beginning to attract the attention of the federal government.

*****

TSHA
Bedford Wynne
Most accounts of the efforts to bring an NFL team to Dallas treated Murchison and [Bedford] Wynne as partners and Wynne clearly served as the spokesman of this partnership. Wynne was the one who announced the hiring of Tex Schramm as general manager of the proposed team in November 1959. Wynne was also present at the meeting in Miami in 1960 when NFL owners officially approved the Dallas club as a franchise.
The picture above [see photo inset to right] shows Wynne and Murchison left along with Redskins owner George Preston Marshall and Tex Schramm. Marshall had been one of the more vocal opponents of expansion especially to the Southwest.
Wynne’s story is actually quite fascinating. Born July 14, 1923 he attended high school in Longview before graduating from the New Mexico Military Institute. He spent three and a half years in the Army and then attended the University of Texas. After graduating from UT he moved on to SMU Law School and was later admitted to practice in Texas.
He came from a prominent family in East Texas. His father [Angus Gilchrist Wynne, Sr.] was a lawyer [from tiny Van Zandt County] and active on the political scene. His brother [Angus Gilchrist Wynne, Jr.] was a successful real estate developer and his uncle [Toddie Lee Wynne] was a famous oilman. Wynne joined his family’s law firm and became a partner.
His interests were diverse. He was a director with such companies and organizations as Reliance Life Insurance Company the Sweetwater Development Center Junior Achievement Children’s Development Center the Cotton Bowl Athletic Association University of Texas Ex-Students Association Highland Park United Methodist Church and the nonprofit Garrett Foundation. He was also co-owner of Wynne & Black an oil business as well as the Garrett-Wynne Angus Ranch of Longmont Colorado.
In 1959 he earned media attention when he bought a share of a famed Black Angus bull named Prince 105 which reportedly carried a hefty price tag of $230,000. During the same year Wynne was actively involved with an effort to bring top professional bowlers to the Dallas area. At that time he was an official with Great Southwest Lanes of Arlington.
When Dallas millionaire Lamar Hunt and others announced the formation of the American Football League during the summer of 1959 the NFL moved quickly to announce that the older league would expand as early as 1961. The first two cities named as possible locations were Dallas and Houston and Murchison and Wynne appeared in the newspapers constantly during negotiations. These negotiations ultimately succeeded and Dallas received a franchise a year earlier than originally announced.
Because Wynne appeared in the newspaper so often many thought he was an equal co-owner. However Clint Murchsion owned 95% of the team with his brother John while Wynne was only a minority owner along with Toddie Lee Wynne and W.R. “Fritz” Hawn. Bedford Wynne held the position of director and secretary of the Cowboys.
In 1967 Wynne decided to sell his shares in the Cowboys to help organize the expansion New Orleans Saints. He also left his law practice in 1967 and began to focus on other business ventures.
After 1967 Wynne’s name surfaced less and less. In one interesting story he won a camper at the Byron Nelson Classic in Fort Worth when he hit a tee shot closer to the mark than opponent Mickey Mantle.
He was chairman of a group that operated and managed Teen America Associates which produced a teen beauty pageant for several years and he later became president of Family Recovery Inc. a family counseling service.
Wynne died at the age of 65 on December 30 1989 of a heart attack. He was survived by three daughters and a son along with six grandchildren.
[Source: Viewed at  Sports Comet  [http://www.sportscomet.com/sports_thread/view/id-10802] no longer extant.]
~~~~~~~~~~~~~~
Continuation of Peter Dale Scott excerpt:

In August 1963 Bedford Wynne was the subject of a highly critical army audit of his "salary" from a firm with federal-government contracts (Sweetwater Development), which had been set up by the Murchisons' Tecon Corporation through the law firm of Wynne, Jaffe, and Tinsley. [11] To Wynne this must have seemed like gross political ingratitude. As recently as January 1963, Bedford Wynne had raised a half-million dollars for the depleted treasury of President Kennedy's Democratic party, after which Clint Murchison's son John was granted a mutually satisfactory interview with President Kennedy about preserving the oil depletion allowance. [12]

But it was unlikely that Wynne could escape being noticed in the mounting publicity about the scandalous activities of Lyndon Johnson's Senate protege, Bobby Baker. As noted earlier, it was in the Life issue of November 22, 1963 (p. 92A), that Bedford Wynne was first named as a member of the "Bobby Baker set" at Washington's Q Club. Subsequent Treasury and congressional investigation of Bedford Wynne and Clint Murchison established that their Sweetwater company had made payments (which looked very much like political kickbacks) to the legal firms of Bobby Baker and of Democratic Congressman Emmanuel Celler.[13]  Dallas Republican leader Robert H. Stewart III, a director of Great Southwest, had also arranged for questionable loans to Bobby Baker, via the same two Murchison employees (Robert Thompson and Thomas Webb) who figured in the Baker payoffs from Bedford Wynne.[14]

*****
The Great Southwest Corporation's Project in Texas


When Charles Hurwitz began acquiring a company called McCulloch Oil in 1978, the chairman of the
company was Charles Wood, Jr.--the man who had designed and engineered the construction of
Disneyland in 1955. McCulloch Oil had been founded by Robert McCulloch, a close business associate
of Wood. In 1960 McCulloch and Wood began to develop Lake Havasu City near Scottsdale, Arizona
around a man-made geyser and the London Bridge, which had been transported across the Atlantic and
reassembled. After Disneyland, Wood had gone on to build Freedomland in the Bronx, New York and to
work with Toddie Lee and Angus Wynne of the Great Southwest Corporation in building Six Flags in
Texas. The Great Southwest Corp., in conjunction with Webb and Knapp had gone into great debt in the
early 1960s pursuing these projects and tried to recover by selling the corporate stock to the Penn Central
Railroad owned by the Pennsylvania Company, which, at the same time, bought Macco Realty and
Arvida.

What is intriguing about this is that McCulloch Oil, the Great Southwest, Macco and Arvida were very
rich in land. This fact was no doubt known by David Murdock, who in 1964 had moved to Los Angeles
from Phoenix where he had been involved in home construction. Although he was allegedly insolvent
when he arrived in California, he founded a company that made tile to be used in construction and later
became a land developer and then a corporate tycoon. We do not know at this point whether Murdock,
whose background before that time is extremely sketchy, may have been involved with the Bonanno family which had been involved in real estate development in Arizona.


In 1956-57 the area between Westwood and Los Angeles proper, now called Century City, was owned by Twentieth Century Fox (headed by Spyros Skouras); it was the Tom Mix ranch and the backlot. But the studio needed cash and decided to sell off this 260 acres of real estate. The studio contacted William Zeckendorf--who headed Webb & Knapp--was a Rockefeller-connected developer in New York (he had hired Disney's engineer, Charles Wood, to build Freedomland park in the Bronx and who was a partner with Toddie Lee and Angus Wynne in developing the Great Southwest project in Texas). He agreed to buy the land and lease back a portion to the studio for one and a half million dollars a year.

Zeckendorf eventually sold out his interest to the Mellon family's Alcoa. He states in his autobiography that he became great friends with "General Richard Mellon," whose family has long been connected to O.S.S. and C.I.A. activities, as well as with Gulf Oil (at the time the Mellons were largest shareholders), which was an investor brought into the Zapata Corporation by the Liedtke brothers.(5) By the time Victor Palmieri went to work for Janss Investment, the Janss brothers had sold a half interest in the commercial properties, in 1955, to Arnold S. Kirkeby of Chicago, owner of a chain of hotels including the Beverly Wilshire at Wilshire and Rodeo Drive. Kirkeby changed the design of the village by bringing in highways and high-rises.

The Arizona Project, a journalistic investigation into mob activities in Arizona, which found strong financial links between Arizona real estate development and construction of Las Vegas casinos, also noted:
For [Del] Webb, the Flamingo experience (6) led to a series of deals with other developers who had their own ties to the Mob-dominated Chicago political machine, including Henry Crown and Arnold S. Kirkeby of Los Angeles,

Monday, April 4, 2011

Who Was That White House Call Girl?

A must-read for those who want to understand Watergate
Now that Phil Stanford's book, White House Call Girl, is available for purchase, we repeat our tickler to give you a taste of the questions the author was looking to answer all those years ago--when John and Mo Dean were suing people right and left for attempting to disclose the real story. There were questions in Stanford's 1986 article, which appears below. Many books by insiders and interviews from outsiders later, we learn many of the answers to those questions in Stanford's book, White House Call Girl
Mr. and Mrs. Dean

What we don't get to the bottom of, unfortunately (in my opinion), is the role of the "Texans" in the whole sordid affair. If you want to learn more about who the Texans really were, you have to study Quixotic Joust and do some research of your own. We call this our real history; it's what you don't read in textbooks. Real historians are usually called conspiracy theorists.





Watergate Revisited
© 1986 by Phil Stanford

Columbia Journalism Review, March/April, 1986

When Jim Hougan's new Watergate book, Secret Agenda, was published last winter, it caused a brief but intense flurry of interest. Writing for the New York Times Book Review, Pulitzer Prize-winner J. Anthony Lukas faulted Hougan in several instances for jumping to what he considered unwarranted conclusions, particularly when it came to Hougan's theory that the real reason behind the Watergate burglary was a secret sex scandal. However, he also found that Hougan had presented some "valuable evidence."

"If even half of this is true," wrote Lucas - whose word carries particular weight in this instance because his own book on Watergate, Nightmare, is considered the definitive work on the subject - Secret Agenda will add an important new dimension to our understanding of Watergate.

"But," Lukas added, "it may be months before reporters can sort through this material, check Mr. Hougan's sources, and decide which of these revelations is solid gold, which dross."

Reviewing the book for the Washington Post Book World, Anthony Marro, himself an old Watergate hand and now managing editor of Newsday, criticized Hougan for mixing "diligent information gathering with questionable, even reckless, assumptions about motive and purpose." Nevertheless, he wrote, "Hougan has attacked the official record of Watergate with . . . considerable skill, pointing up scores of questions, flaws, contradictions, and holes."

"It likely will take some time for Hougan's reporting to be absorbed, cross-checked, challenged, and tested," Marro added, "and whether this proves to be an important book or simply a controversial one will depend on how well it survives the scrutiny that it is sure to receive."

Another review, by Robert Sherrill, appeared in the St. Petersburg (Fla.) Times. Sherrill, who has a reputation for being a hard-nosed investigative writer, found that Hougan "builds a compelling case even though some crucial parts, as he readily concedes, are based on circumstantial evidence."

"If nothing else," Sherrill concluded, Secret Agenda has raised enough questions to remind the press that no matter how conscientiously it tries to unravel scandalous riddles of government, it should wait a few years before boasting that the solution is complete" - and, like Lukas and Marro, he left no doubt that he expected the press to get to work.

That, of course, was more than a year ago - and to date, apparently, no one from any of the major news organizations has made an effort to test any of Hougan's findings. This seems odd, if only because the Watergate affair is one of the most important political and journalistic events of our time, and because, if Hougan is right, our knowledge of it is seriously flawed.

What Hougan presents in Secret Agenda is not so much a totally new version of Watergate as it is, to use Marro's words, "a significant new dimension and perspective." There is nothing in his account to suggest that Richard M. Nixon was not guilty of impeachable offenses. Nor does Hougan dispute that the break-in was planned in the White House, or that when the burglars were caught, the president and his men conspired to cover up their involvement.

What he does say is that all the while this was going on, the CIA, quite without the knowledge of the White House, was pursuing an agenda of it own. Hougan says that at least two of those involved in the break-in were actually spying on the White House for the CIA and conducting their own illegal domestic operations; that one of these domestic operations involved spying on the clients of a call-girl ring operating out of an apartment complex near the Watergate; and that when the White House-planned bugging of the Democratic National Committee's headquarters threatened to expose this operation - as it might have, since some of the clients for the call girls were being referred from the DNC - it was sabotaged in order to protect the CIA's role.

"Watergate," Hougan writes, "was not so much a partisan political scandal as it was . . . a sex scandal, the unpredictable outcome of a CIA operation that, in the simplest of terms, tripped on its own shoelaces."

Now, this is clearly a mind-boggling scenario, and there is a natural tendency for some to simply laugh it off. However, -considering the published statements of journalists such as Lukas, Marro and Sherrill, as well as Hougan's own reputation as a serious writer and investigator - he is a former Washington editor of Harper's magazine and the author of Spooks, a welldocumented study of the use of intelligence agents by corporations and other private entities - Hougan's findings cannot be so easily dismissed.

What's needed is a careful look at his facts: either they are correct or they aren't. And the logical place for such an investigation to begin is with Hougan's account of the break-in, since that is the keystone of his entire argument. My own inquiries indicate that Hougan is right on several crucial points.

According to the generally accepted account of the break-in, the reason the Watergate burglars entered the headquarters of the Democratic National Committee on June 17, 1972, was to replace a defective bug on the telephone of the secretary of DNC chairman Larry O'Brien. As this version goes, in the course of a break-in two weeks earlier, James McCord had installed two bugs - one on the phone belonging to O'Brien's secretary, the other on the phone of another official, R. Spencer Oliver.

The Oliver bug worked, and for two weeks, we are told, a fellow named Alfred C. Baldwin III, sitting in a room in the Howard Johnson motor lodge across the street from the Watergate complex, monitored conversations from it.

Baldwin passed on summaries of those conversations - which he and others described as sexual in nature - to McCord, who passed them along to G. Gordon Liddy, who passed them on to Jeb Magruder. When the bug on O'Brien's phone failed to function, the Plumbers went back in to replace it, and that is when they were arrested. In any case, that is the standard version.

According to Hougan, however, the DNC was never bugged in the first place; when FBI technicians arrived on the scene later in the morning of the arrest they couldn't find a single bug in the DNC. And where does Hougan get this startling information? Hougan says it comes from FBI documents obtained through a freedom of information suit.

According to the documents he cites, neither FBI nor telephone company technicians were able to find the bugs that had supposedly been planted by the Watergate burglars - despite three top-to-bottom searches, which included the dismantling of every phone on the premises, and some urgent pleas from the prosecutor, assistant U.S. attorney Earl J. Silbert, who understood that the failure to find a bug could have serious consequences for his case. Furthermore, when an antiquated bug was actually discovered on a secretary's phone some three months later, the FBI tested it and concluded that it would have been incapable of transmitting outside the Watergate. They pronounced it a phony, probably a plant, and assigned it an entirely different case number.

Now, quite obviously, this raises some questions that demand answers. For example: Are the documents that Hougan cites genuine? Yes. They are on file at the FBI reading room in Washington, D.C., and I have examined them. Well, isn't it possible that these reports are merely interim reports, and that the FBI later reversed itself? Apparently not. I spoke with retired FBI special agent Wilbur G. Stevens, who was supervisor of the FBI laboratory during Watergate. He confirmed (a) that the FBI was never able to find a bug in the DNC and (b) that when one was later discovered after a call from a secretary at the DNC, the FBI considered it a fake.

"There's nothing that I know of that would change (these findings)," he said.

Then why haven't we heard of these FBI documents before? As Hougan points out in his book, the Justice Department under Nixon refused to release any of these reports to the Senate Watergate Committee. This is confirmed by Terry Lenzner, former assistant chief counsel for the committee. "We were concentrating on the cover-up," Lenzner told me. "It would have been useful to our investigation to have the documents in order to check them against any conflicts that might have risen." Nor were the documents given to the defendants in the Watergate trial, as noted in a pre-release story on Secret Agenda by the New York Times.

Hougan, who obtained a total of 16,000 documents through the Freedom of Information Act in 1980, was presumably the first person outside the Justice Department to examine them. But wasn't the prosecutor required by law to hand over material that might be exculpatory to the Watergate defendants? Anthony Lukas raises this question in his review for the New York Times, pointing out that, under the Brady rule, the prosecution is required to give all such evidence to the defense. In this case, the application of the rule seems especially obvious, because the government had charged the Watergate burglars with planting a bug that its own investigators said was a fake. When I asked the Watergate prosecutor, Earl Silbert, about this, he said he recalled the documents but had no clear recollection of whether they had been available to the defense. He went on to say that the Brady rule is only a "legalism," and that the prosecutor is required to turn over such material only if asked to do so by the defense.

"And, frankly, I just can't say that they asked," Silbert said. "If the memos weren't turned over to the defense, that was the reason."

"But how could they request them if they didn't know they existed?" I asked.

"I can see your point," Silbert said, "but some Brady requests are overbroad." What do the defense lawyers say about that? I sent copies of the FBI reports to one of them, Ellis S. Rubin. A prominent Miami trial lawyer, Rubin was retained to represent the four Cuban members of the burglary team - Eugenio Martinez, Frank Sturgis, Bernard -Barker and Virgilio Gonzalez - after they had pleaded guilty and been sentenced to prison.

When I called Rubin a few days later he expressed astonishment, stating categorically that his clients had never been given the information. "This is a definite violation of Brady vs. Maryland," he said, "and it could be cause for a new trial." He said he would take the matter up with his clients.

"You may have a bigger scoop than you imagined," Rubin added.

If, as my own abbreviated investigation shows, Hougan's facts on the break-in check out, this is obviously an important story in itself, as Rubin's comments would suggest. But, beyond this, even if Rubin and his clients decide not to seek a new trial, Hougan's version of the burglary is important because of the questions it raises about the rest of the Watergate affair. For example:
Since Alfred Baldwin was obviously listening to something in his room at the Howard Johnson, just what was he listening to? Hougan's answer - and this is where the sex-scandal theory begins to emerge - is that Baldwin was listening to transmissions from a bug that was planted elsewhere. Hougan concludes that the bug was situated in a prostitute's quarters in the Columbia Plaza, which is located near the Watergate complex. As Hougan himself points out, the evidence for this is circumstantial.

Another question posed by the new break-in evidence, however, is a bit easier to deal with:

If much of what we know about the break-in and bugging is false, then where did we get our original version of those events? Hougan's answer, supported in this instance by the records of the Watergate Commission, is - James McCord. If the standard version of the break-in is false, McCord was apparently lying.

But why?

According to Hougan, both McCord and E. Howard Hunt "were secretly working for the CIA while using the White House as a cover for domestic intelligence operations." Once again, this assertion is so contrary to what Hougan calls the "received version" of Watergate that we are tempted to dismiss it out of hand. However, Hougan's conclusions in this regard would seem to be based on the same kind of verifiable information as his break-in scenario, so that if anyone is interested it should be possible to check it out.

According to the generally accepted version of Watergate, Hunt is the somewhat buffoonish member of the White House Plumbers, a former CIA agent in disrepute, whose ineptitude contributed mightily to the bungling of the "third-rate burglary" at the DNC. As we have come to believe, Hunt left the agency in the spring of 1970 to take a job with a Washington public relations firm called the Robert R. Mullen Co. He continued in Mullen's employment after he got his job as a White House consultant, working as a publicity writer.

Marshaling information from several sources, Hougan argues that Hunt never really retired from the CIA. He presents evidence that two previous "retirements" by Hunt were acknowledged fakes; that shortly before Hunt ostensibly left the agency in 1970 his top-secret security clearance was actually extended in anticipation of his continued "utilization" by the CIA; that the Mullen company was no ordinary public relations firm but a CIA front with active CIA agents working out its office; and that during the Watergate period the president of the Mullen company, Robert Bennett, reported to his case agent at the CIA on his efforts to divert attention from any agency involvement in Watergate.

So, if Hunt was still working for the CIA, what was he doing at the White House? Hougan says he was there as an undercover agent, spying on the White House for the agency. In support of this, he introduces an internal CIA memorandum, written by an agency employee who worked at the White House CIA liaison office. According to the memo - which had been previously published as an addendum to House hearings, but in a vague, summary version, with the names of the author and its two addressees deleted - Hunt regularly used the office to send sealed envelopes back to CIA headquarters. On one occasion, according to this memo, a member of the liaison staff opened one of the envelopes and found it to contain "gossip" material.

Hougan found out the name of the author of the memo, Rob Roy Ratliff, and gave him a call. According to Ratliff, the gossip alluded to was about White House officials and other members of the administration. Hougan found another source, who described the gossip as "almost entirely of a sexual nature." He also discovered that the recipients of Hunt's missives, whose names had been deleted for reasons of "national security," were CIA director Richard Helms and the CIA's medical services division - the staff of which, as Hougan points out, uses such material to construct psychological profiles.

Hougan also succeeds in shedding new light on McCord, the chief Watergate burglar. Contrary to the popular conception of him as a plodding ex-agency gumshoe, Hougan writes, McCord was for years a high-ranking (GS-15) official in the CIA's Office of Security, which was responsible at various times for the agency's mind-control programs, plots to assassinate foreign leaders, and a variety of illegal domestic operations, such as the mail-opening project, the infiltration of the antiwar movement, and Operation Chaos. It is worth keeping in mind that at the time of Watergate none of these programs had been exposed.

As Hougan shows, McCord's supposed retirement from the CIA, which occurred in 1970, just three months after Hunt's, was also quite dubious. McCord's ostensible reason for retiring was to make more money than he earned on his GS-15 salary. However, before he signed on with the Republican National Committee and the Committee to Re-elect the President, McCord's only apparent sources of income were his pension, a part-time teaching job at a community college in Maryland, and a private security firm, McCord Associates, which had no clients until he was hired by the RNC.

Hougan cites several examples of McCord's activities during his tenure as a Republican security adviser that are difficult to explain, including the purchase in Chicago of several telephone bugs that would broadcast only via classified CIA communications satellites. There was also a suspicious incident that occurred at McCord's home just five days after the Watergate burglary; all of McCord's records were thrown into the fireplace and burned. Present for the event were McCord's wife (McCord was still in jail) and one Lee R. Pennington, Jr., a deep-cover contract agent who worked for McCord's old outfit, the Office of Security, and received his pay in the form of "sterile" checks. [According to Lukas,  he worked on a $250-a-month retainer under Howard Osborn (Chief of Security for the CIA), involved in Operation Chaos.]

A CIA memo, not made public until two years after the fire, indicates that Pennington went to McCord's home for the purpose of "destroying any indication of connections between the Agency and Mr. McCord." As Hougan points out, since it had already been reported in the press that McCord was a former employee of the CIA - McCord had testified to that effect at his arraignment - the only possible connection that might have concerned the agency would have been one subsequent to his retirement.

And what was McCord up to? Hougan says that, with the assistance of a down-and-out private investigator named Louis J. Russell, he was involved in bugging some prostitutes at the Columbia Plaza Apartments near Watergate, possibly to collect information that the CIA could use for political blackmail. At this point - as Hougan turns toward his sex-scandal theory - the facts are somewhat sketchier.

However, even with the sex scandal there are plenty of intriguing leads that would seem to warrant further inquiry. To start with, there is the call-girl ring itself, which operated out of the Columbia Plaza, catering to an assortment of Washington types, including a U.S. senator and a clutch of foreign intelligence agents. Hougan knows this because he got the "trick books." When the call-girl ring was exposed in the weeks before the Watergate break-in, it created a minor scandal. But until Hougan came along no one ever saw any reason to connect it to the Watergate affair. Hougan finds several possible links, including evidence of high-level White House interest in the case. [One person interested was the man in charge of hiring White House personnel and clearing them, Peter Flanigan, whose sister was married to the head of the investment firm which employed Larry O'Brien at about the time he went to work for Howard Hughes, at the same time he became head of DNC to run the 1972 election for the Democrats.]

More to the point, Hougan establishes through interviews with Phillip Mackin Bailley, the lawyer who pled guilty to running the call-girl operation, that clients for the prostitutes at the Columbia Plaza were being referred on a regular basis by a woman who worked in the DNC offices.

Next, Hougan produces another of the FBI documents he obtained through the FOIA - which reveals that when the burglars were arrested at the DNC, one of them, Eugenio Martinez, was caught by the police trying to get rid of a key he had in his coat pocket. And the key? As the FBI quickly determined, it belonged to the desk of Ida "Maxie" Wells. Wells was the secretary of R. Spencer Oliver, who, it will be remembered, was the DNC official whose phone was supposedly bugged.

What does the key mean? Hougan takes it as additional evidence for his thesis that Watergate was not so much a political scandal as it was a sex scandal. Maybe he's right, and maybe not; and maybe he's partly right, which strikes me as more likely.

At this point there's not enough information to come to any conclusion. However, the documents are on file at the FBI reading room for anyone interested in pursuing the matter. The key itself - along with copies of the FBI documents and other Watergate records - is to be found at the National Archives.

Without stopping to list several other evidentiary steps here, we can now go straight to Hougan's conclusion: that James McCord had been monitoring the prostitutes at the Columbia Plaza, possibly to obtain blackmail information for the CIA; that when the call-girl ring was busted, the White House saw a chance to collect some dirty stories of its own and launched the Plumbers on its own fact-finding mission; and that, in order to preserve the secrecy of this project, which amounted to nothing less than an illegal domestic operation by the CIA, McCord sabotaged the burglary, causing all hands to be arrested.

As should be clear, even from this brief summary, Hougan's sex-scandal scenario has some holes in it - the biggest being the lack of any positive proof that the CIA was involved in the call-girl operation, or that Baldwin was in fact listening in on the Columbia Plaza. However, it should be equally obvious that the real worth of Secret Agenda does not depend on this one rather sensational theory.

Especially for journalists, the importance of Hougan's book lies in the questions it raises about all the old theories that we have accepted as fact. In Secret Agenda, Hougan makes a convincing argument that at least some of what we think we know about Watergate is wrong.

It is high time that the press started facing up to the possibility.

Reprinted by Proquest with the permission of the Columbia Journalism Review; used here for non-commercial purposes only. 

Saturday, April 2, 2011

Seven-night-a-week Partygoers

Yet another Watergate revision posted here for what it's worth--basically only basic information about John Dean's life. "Shepard asserts that once Dean, the president’s counsel, decided to aid the investigation, he became the villain, breaching attorney-client privilege and releasing government secrets.... Shepard is thorough in his research and passionate in his viewpoints but has no compunction about imagining events and motivations when they are not documented and is reluctant to provide facts and let readers come to their own conclusions. Still, Shepard brings back vivid memories of an acrimonious time and raises some interesting questions," says reviewer Vanessa Bush.

Troublesome Facts About John Dean

November 11, 2009 by Geoff Shepard |

You will read his books and search the Internet in vain if you are looking for any detail in John Dean’s rise to power.  One might believe that his story was one of a natural progression from Wooster College to Georgetown Law School to the House Judiciary Committee, the Department of Justice and then to the Nixon White House—but this would overlook the astonishing number of fits and restarts in his early career:
  • Dean grew up in Marion, Ohio and first attended Eber Baker High School—switching to Staunton Military Academy in Virginia early in his Sophomore year. It is not clear what happened at Baker High, but in that era you got sent away to military school only if you came from a military family or there was trouble on the home front.
  • He graduated from Staunton in 1957, but did not go into the military.  Instead, he enrolled at Colgate University in New York, intending to major in English.  Things did not go well for him at Colgate and he again switched schools in the middle of his Sophomore Year—returning to Ohio to attend tiny Wooster College, where his activities centered on the Pre-Law Club.
  • In his Senior Year, Dean married Karla Hennings, daughter of Senator Thomas Hennings of Missouri.  He graduated in the lower third of his class in 1961 (144/204), but did not go to law school.  Instead, he enrolled in American University in Washington, DC, doing graduate work in political science.
    Dean's father-in-law, Sen. Hennings
  • In 1962, he dropped out of American University to enroll in Georgetown Law School, from which he graduated in 1965.
  • His first (and only) experience in private practice was with the small communications law firm of Welsh & Morgan, who specialized in obtaining very lucrative FCC broadcast licenses.  Dean was fired in six months ‘for unethical conduct’:  Apparently, while working on a license application for a firm client, he also prepared an application on behalf of his mother-in-law in St. Louis.  It is not clear from the record whether the Dean application was in direct competition with the one he was working on for the firm or just one that would have reduced the scarce number of such licenses.  What is clear is that Dean quickly ascertained the lucrative nature of what he was working on for the firm and sought to take advantage of that knowledge for his own family.
  • Dean quickly became Minority Counsel to the House Judiciary Committee, courtesy of Rep. Bill McCullough of Ohio—and Wooster College alum.  For reasons that remain unclear, Dean ‘was terminated effective August 13, 1967’ and remained unemployed for the next six months.
  • In February of 1968, Dean became Associate Director of the Commission to Reform the Federal Criminal Laws, named the Brown Commission after its chairman, Edmund G (Pat) Brown ( who had defeated Richard Nixon in 1962 to become California’s Governor).  Dean described his duties as administrative in nature, but also dealing with conflict of laws and death penalty statutes.  While on the Commission staff, Dean obtained a letter from his previous law firm that qualified his termination, saying it  ‘resulted from a basic disagreement over law firm policies regarding the nature and scope of an associate’s activities’—but the letter notably did not rescind the prior characterization of being terminated for unethical conduct.
It is from this highly questionable base of experience and expertise that Dean became Associate Deputy Attorney General shortly after Nixon was inaugurated in January of 1969.  It was there that he supervised the work of the Legislative and Legal Section of the Department of Justice.  Six months into his new job, Dean separated from his wife, leaving her with their two year old son.

Dean moved to the White House in July of 1970, replacing John D. Ehrlichman as Nixon’s Counsel.  How could someone who started and then dropped out of his first high school, college and graduate school, and who was terminated from his first two jobs end up on the White House staff? It is as story of a classic bureaucratic move gone bad:  Ehrlichman had roomed at UCLA with Bob Haldeman before joining to Stanford Law School and practicing law in Seattle. He had been a senior member of Nixon’s 1968 campaign staff that was run by Haldeman. With Haldeman as Nixon’s Chief of Staff and Ehrlichman as his lawyer, they soon became known as the Berlin Wall. After eighteen months, Ehrlichman become Assistant to the President for Domestic Affairs, taking all his top staff to the newly formed Domestic Council.

The hiring of John Dean to replace Ehrlichman—essentially replacing a power figure with a demonstrably less senior successor—was done to assure the Counsel’s office did not again become a power base. Dean has said ‘the title was the best part of the job’, since all he really was ‘just a messenger boy between Haldeman and Attorney General John Mitchell. He told his sentencing officer that ‘His principle [sic] duty was of evaluating and handling security clearances and clemency petitions in addition to administrative duties.’ Amazingly, in retrospect the FBI full field investigation that would have preceded any appointment to the White House staff was waived in Dean’s case —since he would have been the one to review it.
~~~~~~~~~~~~~~~
Jun. 25, 1973
In 1969 Richard Kleindienst, who was then Deputy Attorney General, hired Dean as the Justice Department's liaison with Congress. As such, he was in charge of lobbying efforts for the ill-fated nominations of Clement Haynsworth and G. Harrold Carswell to the Supreme Court. His loyalty to the Administration so impressed senior White House staffers that he was hired to succeed John Ehrlichman as presidential counsel in 1970. In that job, Dean appeared to be a man of rigid principle, even when he was secretly helping to cover up Watergate. Once a junior staffer asked whether he could accept a $200 honorarium for a speech. "No, sir," Dean declared. What if he turned the money over to his church? "No," Dean repeated. "Nobody on the White House staff is going to accept money for anything."

Undoubtedly, Dean's career was furthered by his good looks and his command of the social graces. Detractors also suggest he was helped along by his first marriage—to Karla Hennings, the daughter of the late Senator Thomas C. Hennings of Missouri. She bore his son John IV, now 5, but the marriage ended in divorce three years ago.

Last fall [1972] Dean married Maureen, a former insurance saleswoman from Los Angeles.

From the outset, John and Mo Dean maintained a low social profile in their $70,000 brick town house on Quay Street in Alexandria's affluent Old Town section, just 200 yards from the Potomac. Now, of course, the profile is lower still. Occasionally, they eat out with the Goldwaters, who live across the street. One recent Saturday, another neighbor, Ervin Committee Member Lowell Weicker, dropped in for beer and pretzels. Before the worst of Watergate, the Deans played tennis and golf, swam and sailed their 18-ft. boat. Nattily dressed in broad-lapel suits and wide ties, Dean used to drive to work a purple Porsche 911 as highly polished as his shoes. Now he and Mo stay home.

Although hidden from public view by drawn shades, he still looks tanned. The tan is inexplicable; he told a recent visitor: "I haven't been in the sun for days. I would call it a bourbon pallor; except I haven't had a drink for days either." For the most part, in these last weeks leading up to his climactic appearance before the Ervin committee, he has worked in his basement, putting his letters and other documents in order, preparing for his ordeal.
~~~~~~~~~~~~~~~~~
JULY 13, 1964
By GORDON BROWN
Associated Press Writer
SAN FRANCISCO (AP) —North Carolina delegates to the Republican National Convention were told Sunday the successful Goldwater drive for delegate votes began in the Tar Heel state. Dick Kleindienst, GOP candidate for governor in Sen. Barry Goldwater's home state of Arizona, thanked North Carolinians for their early support of Goldwater in a brief visit to a caucus of the 28 delegates. He said that if there was a place that could be said to be a beginning of Goldwater's successful campaign, it was last Feb. 15 when the Fifth North Carolina District pledged  delegates to Goldwater.

Kleindienst, a Goldwater manager, predicted the senator's nomination on the first ballot and called Him "a truly national candidate." At its caucus, the North Carolina group also heard from close relatives of the two major candidates — Barry Goldwater Jr., representing his father, and Mrs. Marian Isaacs, representing her brother, Gov. William Scranton of Pennsylvania.

~~~~~~~~~~~
JUNE 4, 1971
 NEW YORK (UPI) - The American Civil Liberties Union, (ACLU), in response to criticism by Deputy Atty. General Richard G. Kleindienst, reiterated its claims yesterday that most of the mass arrests during Washington's May Day antiwar demonstrations were illegal. In addition, the ACLU office in New York said the persons arrested were detained illegally, the physical facilities in which they were held were "chosen to maximize pain and suffering" and arrest forms "were deliberately falsified in a retroactive attempt to justify the arrests."

Kleindienst, the No. 2 man in the Justice Department, said Thursday the arrests were legal constitutional and essential to control a "vicious and wanton mob attack on Washington."

"In apparent frustration over its inability to win other wars, the administration has inflated the May Day disruptions into a threat to the national survival which it could crush through a display of overwhelming force," the ACLU said.
~~~~~~~~~~~~~~~
March 9, 1972
 WASHINGTON (AP) — Columnist Jack Anderson told Senate investigators today that "Richard G. Kleindienst is unfit to be attorney general because he is not a " man who understands the law and respects the truth."

Despite his disclaimers, acting Atty. Gen. Kleindienst played a major role in settlement of three antitrust suits against the International Telephone & Telegraph Corp. Anderson testified to the Judiciary Committee as a result of columns written by Anderson last week the committee is taking new testimony relating to Kieindienst's nomination to be attorney general. In the same newspaper is this:
WASHINGTON — Rep. Barry Goldwater Jr., R-Calif., is engaged to marry 25-year-old Susan Lee Gherman, a business major at the University of California at Los Angeles. The 33-year-old congressman, whose office announced the engagement Wednesday, is the son of Sen. Barry Goldwater. R-Ariz. Miss Gherman is the daughter of Dr. and Mrs. Mort [Emmanuel Motimer] Gherman of Newport Beach, Calif. No wedding date has been set.
Susan's father, a lawyer and psychiatrist, lived in Newport Beach, California, but had been born in Winnepeg, Canada and educated as a physician there before his emigration in about 1936. From 1954-56 while living in Chicago, he was a Colonel in the Civil Air Patrol (see page 3). Susan Gherman had been engaged in 1967 to Harry Roger Drackett III of Cincinnati, Ohio, whose grandfather invented Windex. She attended Santa Monica City College after graduating from Katherine Gibbs School in New York. Shortly after the Newport Beach wedding on March 30, 1972 to Barry Goldwater, Jr. where 1,500 guests attended the Balboa Bay Club reception, the following appeared in the Desert Sun:
Father-In-Law Of Goldwater Faces Charges
SAN BERNARDINO (UPl)—The father-in-law of Rep. Barry Goldwater Jr., R-Calif. was charged Thursday with 10 counts of grand theft and 59 of false and misleading advertising in connection with real estate sales. The charges were brought against Dr. E. Mortimer Gherman, of Laguna [sic] Beach, Calif., father of the former Susan Lee Gherman, who married the young congressman less than two months ago. Goldwater is the son of Sen. Barry Goldwater, R-Ariz., the 1964 Republican presidential nominee. Charges against Gherman and two others, James Moreland and John A. Patterson, were filed by Deputy District Attorney Charles Wolfe, who said the accusations were related to sale of 128 cabin sites for $1.1 million at Big Bear Lake, a popular weekend resort for Los Angeles area residents. He said the state Department of Real Estate began an investigation because lot buyers complained that advertisements led them to believe utilities were available at the sites, and they weren’t.
~~~~~~~~~
Most readers may not realize that when John Dean met his future wife, Maureen Kane Biner Owen (or perhaps it was Maureen Kane Owen Biner?), she had a good friend named Susan Gherman who married John's former roommate from Staunton Military Academy days, none other than the son of U.S. Senator Barry Goldwater. After Susan and Barry Jr. divorced, Susan married an older man named Marvin L. Warner, to whom she was married at the time the following story appeared in 1979, although the marriage would endure for less than one year:

Susan Goldwater more than meets one's eye
by MARIAN CHRISTY
June 10, 1979

Daily Herald Chicago, Illinois

WASHINGTON - When people talk about Susan Goldwater, which is often, it is in terms of her stunning looks. But there's much, much, more to the senator's former daughter-in-law than meets the eye. Statuesque Susan, who has a pilot's license and races cars, is transforming herself from a much-photographed, much-touted seven-night-a-week partygoer into a television performer.

She has her eyes set on the national scene and is carefully negotiating, through a New York agent, freelance television work via a network or syndication. Goldwater, 33, wants and is getting the best of both worlds.

On May 26 she married the American ambassador to Switzerland, 60-year-old millionaire Marvin Warner of Cincinnati and Miami.

Goldwater says Warner has given his blessings to her career ambitions. "We're giving each other room," she says. The remark Is revealing.

SUSAN GOLDWATER is the mother of Barry III, who's 4, and her no-fault divorce from Rep. Barry Goldwater Jr., R-Calif., became final May 16.

She comes from an affluent California family background. Her father, Mort Gherman, is a lawyer and psychiatrist. The family home is in Newport Beach, and Susan is used to the best of everything.
Lately she has been working for it.

Now she co-hosts "PM Magazine" on WDVM-TV, Washington, with a $40,000 plus-expenses salary. When she signed her three-year contract, she insisted on an option to quit, on short notice, if a network offered her a job. But she will leave the station, a CBS-TV affiliate, now that she has married Warner. She expects to be back on syndicated or network television in the fall. The root of her ambition goes deep: "I plan to make a go of this thing." she says. "By that I mean right to the top."

Goldwater sounds calculating, but television is a tough, cut-throat business where pretty faces and famous names are common.

IN A WAY, her third marriage will make her career pursuit easier, Warner has a private plane and plenty of household help. Susan Goldwater is just breaking into a highly competitive business where she sees her rivals as Phyllis George and Jane Pauley. Her new lifestyle will help.

What makes Susan Goldwater tick is her sheer gutsiness. Some call it nerve. Others call it aggressiveness. Her charm tempers her steel, and the combination is fascinating. You get the real clue to Goldwater's personality when she talks about driving the pace car, at 130 mph, at the Daytona 500. She talks about flirting with danger, maybe death.

"The cars are just inches away. One wrong move and..." The smile she smiles is sweet and out of context with her description of Russian roulette on wheels.

After the Goldwater marriage of five years had failed, Susan, with no television experience, showed up in Columbus, Ohio, hosting a nightly cable television show.

SUSAN GOLDWATER, astute social butterfly, slowly became Susan Goldwater, creditable television interviewer. "I know," she says, "that I've made a complete switch. I went from the party life to nothing — nothing but work."

That's not exactly true. Susan is very attractive and there was a string of serious admirers. Warner, though stationed in Switzerland, courted her with daily trans-oceanic telephone calls and once-a-month rendezvous in Washington, Switzerland and Palm Beach.

The difference in age — 27 years — doesn't bother her. She says they have an agreement not to "botch up" the relationship with silly lovers' quarrels. "Time is of the essence for us," she says seriously.

"There's no time for arguments or competition or games." She repeats his age, 60, for emphasis. "This understanding gives our relationship a special quality. It makes everything positive." She quibbles about the word love.

"I LIKE it better," she says firmly, "when a man tells me I'm fun to be with or that he likes me." The tone is somewhat poignant, the eyes sad. "The word, love, is such an empty word," she says. It's an open secret in Washington that, for a long time, Susan thought she and Barry would or could reconcile. It never happened.

Is she over that? Are the old wounds healed? Her answer is simple and frank. "I can talk to Barry now without mourning the relationship I feel should have been," she says.

"There is our son," she says. "I'm always thinking of our son."

There are Susan Goldwater detractors, particularly women in the television business who complain that the Goldwater name, which is known nationally, has opened doors. She's well aware of the criticism and points out that 400 tapes were reviewed by WDVM-TV before she landed the job.

"There are people out there who say, oh yes, Goldwater, the girl with the golden name." There is a certain I'11-show-them tone in her voice. Then: "The money you get in television is nice, but to me success Is much, much more than that. It's a feeling deep inside that you somehow emerge the victor." She sighs.
(c)  1979 Boston Globe Newspaper Co.
1979  Los Angeles Times Syndicate

~~~~~~~~~~~~~~

Pete Brewton
pp. 280 et seq.
Consider the first bank where [Fernando] Birbragher was caught: Great American Bank in Miami. At the time (1980 and 1981) Birbragher was laundering the cartel's drug money through Great American Bank, it was owned by Marvin Warner, an Alabama native whose businesses were based out of Cincinnati. Like Charles Keating, his fellow Cincinnatian, who also got caught in the savings-and-loan debacle, Warner is full of arrogance, bluster and hubris, a man who thought his political connections and influence mongering would save him, and when it didn't, carped bitterly about government interference.

Warner got his start building houses after World War II. In the late 1950s, he bought Home State Savings in Ohio and prospered, investing in race horses and professional sports teams [including the New York Yankees]. In 1977, his support of Democrats paid off when President Jimmy Carter appointed him U.S. Ambassador to Switzerland. During his absence overseas, Warner hired Donald E. Beazley, a Miami banker and former federal bank examiner, to run Great American.

Before Beazley joined Warner he had worked for a while for Guillermo Hernandez-Cartaya, according to author James Ring Adams in The Big Fix: Inside the S&L Scandal. CIA asset Hernandez-Cartaya had gotten involved with Warner's close associates at the fraud-infested E.S.M. Securities. In fact, E.S.M. files contained a note from Hernandez-Cartaya thanking an E.S.M. principal for his offer to help in the sale or purchase of Jefferson Savings and Loan in McAllen, Texas, from Lloyd Bentsen's family.

When Warner returned from Switzerland in 1979, he took Beazley's place at Great American Bank. Beazley then jumped to the presidency of the Nugan Hand Bank in Australia. That bank, the subject of a book by Jonathan Kwitny, The Crimes of Patriots, was crawling with ex-CIA (if there is such a thing as ex-CIA) and former high-ranking military officials, and was used in drug-money laundering, weapons transactions and the cheating of American investors, among other things. (Beazley was never charged with any wrongdoing at Nugan Hand.)

When Beazley was working for Great American Bank, he was approached by an individual on behalf of Nugan Hand, who wanted to buy a Great American subsidiary bank, the Second National Bank of Homestead, Florida, Kwitny reported. The deal eventually fell through, but there were allegations that Second National Bank had been connected to the late PAUL HELLIWELL, the China OSS veteran and CIA master-operative who practiced law in Miami and was one of the powers behind Castle Bank & Trust, the offshore tax haven bank used by the CIA and the mob to launder money.

While Beazley was chief executive officer of Nugan Hand, he took part in the attempted acquisition of a London bank. 4 One of his partners in the deal was Ricardo Chavez, a Cuban exile and CIA contract agent who was a member of the Edwin Wilson, Ted Shackley and Tom Clines group. In fact, Chavez was an officer in Wilson's Houston-based A.P.I. Distributors.

Despite all these relationships to CIA operatives, Beazley has denied any connections to American intelligence. 5

Marvin Warner in cuffs
After Beazley left Nugan Hand (when it disintegrated following the alleged suicide of one of the principals), he returned to Florida banking--first as president of Gulfstream Banks, and then as president of City National Bank of Miami. City National was owned by Alberto Duque, a Colombian whose father was a wealthy coffee magnate. The attorney for the bank was Stephen Arky, Marvin Warner's son-in-law....

Arky committed suicide in July 1985 after the E.S.M. Government Securities fraud scandal broke. The collapse of E.S.M. wrecked the Home State Savings of Arky's father-in-law, Warner, and led to Warner's conviction for fraud. After Arky's suicide, he was praised by his former boss at the Securities and Exchange Commission, where Arky worked after getting out of law school. "He was one of my real success stories," Stanley Sporkin, then general counsel to the CIA, told the Miami Herald. "He was one of my finest young men."6

4. Jonathan Kwitny, The Crimes of Patriots.
5. Ibid.
6. Miami Herald, July 24, 1985.

Wednesday, March 23, 2011

Nixon and the ITT Scandal of 1972

Sosthenes Behn and International Telephone

During the administration of Richard Nixon, one of the worst scandals to arise prior to Watergate was that involving the merger between International Telephone and Telegraph Co. and the Hartford Insurance Co. ITT had been founded by a man from an island purchased by the U.S. and renamed the Virgin Islands, thus making him an American citizen. He had considerable interests in Cuba, as well as Spain, and his outlook was in favor with that of Germany during the Nazi regime, as shown below in an excerpt from author Anthony Sutton, Wall Street and the Rise of Hitler


Peter Flanigan was caught up in the middle of the flap over I.T.T. just at the time John Mitchell resigned as Attorney General to take over the re-election of Nixon at CREEP headquarters.


From Chapter Five of Anthony Sutton, Wall Street and the Rise of Hitler:
The multi-national giant International Telephone and Telegraph (I.T.T.)1 was founded in 1920 by Virgin Islands-born entrepreneur Sosthenes Behn....In 1930 Behn acquired the German holding company of Standard Elekrizitäts A.G., controlled by I.T.T. (62.0 percent of the voting stock), A.E.G. (81.1 percent of the voting stock) and Felton and Guilleaume (six percent of the voting stock). In this deal Standard acquired two German manufacturing plants and a majority stock interest in Telefonfabrik Berliner A.G.I.T.T. also obtained the Standard subsidiaries in Germany, Ferdinand Schuchardt Berliner Fernsprech-und Telegraphenwerk A,G., as well as Mix and Genest in Berlin, and Suddeutsche Apparate Fabrik G,m.b.H. in Nuremburg.

It is interesting to note in passing that while Sosthenes Behn's I.T.T. controlled telephone companies and manufacturing plants in Germany, the cable traffic between the U.S. and Germany was under the control of Deutsch-Atlantische Telegraphengesellschaft (the German Atlantic Cable Company). This firm, together with the Commercial Cable Company and Western Union Telegraph Company, had a monopoly in transatlantic U.S.-German cable communications.

W.A. Harriman and Company took over a block of 625,000 shares in Deutsch-Atlantische in 1925, and the firm's board of directors included an unusual array of characters, many of whom we have met elsewhere. It included, for example, H. F. Albert, the German espionage agent in the United States in World War I; Franklin D. Roosevelt's former business associate yon Berenberg-Gossler; and Dr. Cuno, a former German chancellor of the 1923 inflationary era. I.T.T. in the United States was represented on the board by yon Guilleaume and Max Warburg of the Warburg banking family.
Baron Kurt von Schroder and the I.T.T.
There is no record that I.T.T. made direct payments to Hitler before the Nazi grab for power in 1933. On the other hand, numerous payments were made to Heinrich Himmler in the late 1930s and in World War II itself through I.T.T. German subsidiaries. The first meeting between Hitler and I.T.T. officials — so far as we know — was reported in August 1933,3 when Sosthenes Behn and I.T.T. German representative Henry Manne met with Hitler in Berchesgaden. Subsequently, Behn made contact with the Keppler circle (see Chapter Nine) and, through Keppler's influence, Nazi Baron Kurt von Schröder became the guardian of I.T.T. interests in Germany. Schröder acted as the conduit for I.T.T. money funneled to Heinrich Himmler's S.S. organization in 1944, while World War II was in progress, and the United states was at war with Germany.4

Through Kurt Schröder, Behn and his I.T.T. gained access to the profitable German armaments industry and bought substantial interest in German armaments firms, including Focke-Wolfe aircraft. These armaments operations made handsome profits, which could have been repatriated to the United States parent company. But they were reinvested in German rearmament. This reinvestment of profits in German armament firms suggests that Wall Street claims it was innocent of wrongdoing in German rearmament — and indeed did not even know of Hitler's intentions — are fraudulent. Specifically, I.T.T. purchase of a substantial interest in Focke-Wolfe meant, as Anthony Sampson has pointed out, that I.T.T. was producing German planes used to kill Americans and their allies — and it made excellent profits out of the enterprise.

In Kurt von Schröder, I.T.T. had access to the very heart of the Nazi power elite. Who was Schröder? Baron Kurt von Schröder was born in Hamburg in 1889 into an old, established German banking family. An earlier member of the Schröder family moved to London, changed his name to Schroder (without the dierisis) and organized the banking firm of J. Henry Schroder in London and J. Henry Schroder Banking Corporation in New York. Kurt von Schröder also became a partner in the private Cologne Bankhaus, J. H. Stein and Company, founded in the late eighteenth century. Both Schröder and Stein had been promoters, in company with French financiers, of the 1919 German separatist movement which attempted to split the rich Rhineland away from Germany and its troubles. In this escapade prominent Rhineland industrialists met at J. H. Stein's house on January 7, 1919 and a few months later organized a meeting, with Stein as chairman, to develop public support for the separatist movement. The 1919 action failed. The group tried again in 1923 and spearheaded another movement to break the Rhineland away from Germany to come under the protection of France. This attempt also failed. Kurt yon Schrader then linked up with Hitler and the early Nazis, and as in the 1919 and 1923 Rhineland separatist movements, Schröder represented and worked for German industrialists and armaments manufacturers.

In exchange for financial and industrial support arranged by yon Schrader, he later gained political prestige. Immediately after the Nazis gained power in 1933 Schrader became the German representative at the Bank for International Settlements, which Quigley calls the apex of the international control system, as well as head of the private bankers group advising the German Reichsbank. Heinrich Himmler appointed Schroder an S.S. Senior Group Leader, and in turn Himmler became a prominent member of Keppler's Circle. (See Chapter Nine.)

In 1938 the Schroder Bank in London became the German financial agent in Great Britain, represented at financial meetings by its Managing Director (and a director of the Bank of England), F.C. Tiarks. By World War II Baron Schrader had in this manner acquired an impressive list of political and banking connections reflecting a widespread influence; it was even reported to the U.S. Kilgore Committee that Schrader was influential enough in 1940 to bring Pierre Laval to power in France....

This was the Schröder who, after 1933, represented Sosthenes Behn of I.T.T. and I.T.T. interests in Nazi Germany. Precisely because Schröder had these excellent political connections with Hitler and the Nazi State, Behn appointed Schröder to the boards of all the I.T.T. German companies: Standard Electrizitatswerke A.G. in Berlin, C. Lorenz A.G. of Berlin, and Mix and Genest A.G. (in which Standard had a 94-percent participation).

In the mid-1930s another link was forged between Wall Street and Schröder, this time through the Rockefellers. In 1936 the underwriting and general securities business handled by J. Henry Schroder Banking Corporation in New York was merged into a new investment banking firm — Schroder, Rockefeller and Company, Inc. at 48 Wall Street. Carlton P. Fuller of Schroder Banking Corporation became president and Avery Rockefeller, son of Percy Rockefeller (brother [sic] of John D. Rockefeller) [Note: Avery was Percy's son; Percy was son of William A. Rockefeller, Jr.-- John D.'s brother, and both he and his brother, William G. Rockefeller, married daughters of James Stillman, founder of the City National Bank of NY--Citigroup] became vice president and director of the new firm. Previously, Avery Rockefeller had been associated behind the scenes with J. Henry Schroder Banking Corporation; the new firm brought him out into the open.7

Westrick, Texaco, and I.T.T.

I.T.T. had yet another conduit to Nazi Germany, through German attorney Dr. Gerhard Westrick. Westrick was one of a select group of Germans who had conducted espionage in the United States during World War I. The group included not only Kurt von Schröder and Westrick but also Franz von Papen — whom we shall meet in company with James Paul Warburg of the Bank of Manhattan in Chapter Ten — and Dr. Heinrich Albert. Albert, supposedly German commercial attache in the U.S. in World War I, was actually in charge of financing yon Papen's espionage program. After World War I Westrick and Albert formed the law firm of Albert and Westrick which specialized in, and profited heavily from, the Wall Street reparations loans. The Albert and Westrick firm handled the German end of the J Henry Schroder Banking loans, while the John Foster Dulles firm of Sullivan and Cromwell in New York handled the U.S. end of the Schroder loans.

Just prior to World War II the Albert-Papen-Westrick espionage operation in the United States began to repeat itself, only this time around the American authorities were more alert. Westrick came to the U.S. in 1940, supposedly as a commercial attache but in fact as Ribbentrop's personal representative. A stream of visitors to the influential Westrick eluded prominent directors of U.S. petroleum and industrial firms, and this brought Westrick to the attention of the FBI.

Westrick at this time became a director of all I.T.T. operations in Germany, in order to protect I.T.T. interests during the expected U.S. involvement in the European war.8 Among his other enterprises Westrick attempted to persuade Henry Ford to cut off supplies to Britain, and the favored treatment given by the Nazis to Ford interests in France suggests that Westrick was partially successful in neutralizing U.S. aid to Britain.

Although Westrick's most important wartime business connection in the United States was with International Telephone and Telegraph, he also represented other U.S. firms, including Underwood Elliott Fisher, owner of the German company Mercedes Buromaschinen A.G.; Eastman Kodak, which had a Kodak subsidiary in Germany; and the International Milk Corporation, with a Hamburg subsidiary. Among Westrick's deals (and the one which received the most publicity) was a contract for Texaco to supply oil to the German Navy, which he arranged with Torkild Rieber, chairman of the board of Texaco Company.

In 1940 Rieber discussed an oil deal with Hermann Goering, and Westrick in the United States worked for Texas Oil Company. His automobile was bought with Texaco funds, and Westrick's driver's license application gave Texaco as his business address. These activities were publicized on August 12, 1940. Rieber subsequently resigned from Texaco and Westrick returned to Germany. Two years later Rieber was chairman of South Carolina Shipbuilding and Dry Docks, supervising construction of more than $10 million of U.S. Navy ships, and a director of the Guggenheim family's Barber Asphalt Corporation and Seaboard Oil Company of Ohio.9. ...In short, during World War II International Telephone and Telegraph was making cash payments to S.S. leader Heinrich Himmler.10 These payments enabled I.T.T. to protect its investment in Focke-Wolfe, an aircraft manufacturing firm producing fighter aircraft used against the United States.

The interrogation of Kurt von Schröder on November 19, 1945 points up the deliberate nature of the close and profitable relationship between Colonel Sosthenes Behn of I.T.T., Westrick, Schröder, and the Nazi war machine during World War II, and that this was a deliberate and knowledgeable relationship....


For footnotes, see Chapter Five, of Wall Street and the Rise of Hitler, by Anthony Sutton.

**********
Peter Flanigan also found himself criticized over one of his aides, a Military Intelligence officer named Jonathan Chapman Rose, who seemed to be avoiding his military service as the Vietnam War raged, spending his days in a cushy job at the White House, assigned to Flanigan's office. Just as Jack Anderson had attacked the Nixon staffers for how they handled ITT, reporters also sniped about what this seemingly healthy attorney was doing instead of dodging bullets in Vietnamese ride paddies. It would turn out that Rose's father had been a high official in Eisenhower's administration, serving as deputy to the Secretary of the Treasury, George Humphrey. Chappie Rose, as he was called, had been an attorney during World War II, handling the same type of termination contracts for the Army that Nixon had handled for the Navy. He was a partner in a law firm founded in Ohio with a branch in Washington, D.C. to handle Rose's former boss' lobbying interests for the Hanna Mining Co., of which Humphrey was the controlling shareholder.

Jonathan C. Rose, Skull and Bones 1963, hid out in Peter Flanigan's office instead of serving in Vietnam, allegedly because of an injured left shoulder. He and Nixon's daughter, Tricia, had a mutual acquaintance in Cleveland.