The Nixon tapes revealed that the financing scheme could blow the lid of the "whole Bay of Pigs Thing."
Thus, it is important to study Pauley to learn how the money works in politics.
It is also important to find out, if possible, where the assets of Pauley Petroleum ended up, as well as to learn what happened to Zapata assets -- because these companies were used by the intelligence group to which the two men owed their loyalty.
We know from Part One that Pug Winokur, working under the cover of David Murdock's Pacific Holdings, was involved in distributing the Zapata assets, or the proceeds thereof, to Bush's fellow shareholders, who had elected a board of directors with long-term connections to Shell Oil, AtlanticRichfield (Arco); Apco Argentina, a subsidiary at that time of Transco Pipeline (now the Williams Companies); General Signal Corp. (in which Pauley's friend Sam Mosher was involved), First City Bank of Houston, which was then involved in several joint ventures with N.M. Rothschild bank in London; S. Pearson and Sons, a London-based exploration company through its North American subsidiary, Midhurst; Camco, Inc., a Canadian appliance company controlled by Canadian General Election, in which Queen Elizabeth had the largest block of stock.
In Part Three we also discovered that after Pauley's death, his petroleum company, whose primary asset was a concession to drill in Colombia, was acquired first by Hondo Oil and Gas, a company owned by Robert O. Anderson and his sons.
Anderson had operated AtlanticRichfield since 1969 and set up Hondo after his retirement. Hondo borrowed massive amounts of money from Lonrho (formerly the London and Rhodesian Mining Company and never repaid the loans, which were secured by stock options, resulting in Lonrho's acquiring title to all the Hondo stock.
The story in Roswell, N.M., Anderson's home, was that "Hondo, founded by Anderson in 1986, was unsuccessful in a South America venture. A well drilled in the mountains of Colombia failed to produce as expected, and Hondo's stock price declined to about 3 cents per share just before the buy-out." (1)
What Lonrho Represents
Although Lonrho had been managed by Tiny Rowland since 1961, the chairman was Duncan Sandys (Lord Duncan Duncan-Sandys), who had not only been married to Winston Churchill's daughter, before she left him and later committed suicide, but also served as Secretary of State for Commonwealth Relations and Secretary of State for the Colonies.
The other members of the board have included such notables as (1) Sir George Bolton, who served on the board of the Bank of England for twenty years, as well as having been a board member of the Bank of International Settlements; (2) Sir Edward du Cann, an M.P for 32 years and chairman of Keyser Ullmann, a London merchant bank; (3) Nicholas Elliot, a senior department head in MI6 (see Click.);
(4) Maj. Gen. Sir Edward L. Spears, chairman of Ashanti Goldfields of Ghana in 1967, when Lonrho took it over; (5) Sir Peter Youens, an Oxford graduate, member of the Colonial Administrative Service in Africa before becoming Secretary to Prime Minister Banda when Nyasaland became the independent country of Malawi; and (6) Alan Ball, son of Sir Joseph Ball, a former member of M15 and deputy chair of the secret spy-hunting Home Defence (Security) Executive during World War II.
In the same era that former African colonies of Great Britain were gaining independence, riots in urban Black communities were occurring in the United States.
Fear of a takeover by blacks was rampant in conservative governments in both countries during that time. South Africa became an independent country in 1961 and Rhodesia (now Zimbabwe) in 1965, at the same time that MI6, formerly known as SIS, took on a greater role in ensuring that British investments there would be protected.
It has been suggested that Tiny Rowland was brought to Lonrho and used as a tool of intelligence operations to suppress Black-African uprisings against the white minority.
This same racist fear was vented in 1985 when Tiny Rowland, while still manager of Lonrho and at the same time acting as owner of The Observer, attempted to prevent Mohamed Al-Fayed from acquiring Harrods department stores. (2)
For years Anglo-American Corp. has been a large shareholder of Lonrho. Anglo-American was founded by Cecil Rhodes and operated since his death by the Oppenheimer family. (3)
Rhodes left his shares in trust to set up the Rhodes scholarship fund at Oxford. After his death, the fund was managed by Lord Alfred Milner, who set up the Round Table group to administer the trust based on the ideas of Fabian socialism.
In the 1920s Lord Milner also was chairman of Rio Tinto Zinc (RTZ), the world's second largest raw materials producing company. Another large shareholder of Lonrho was the British South Africa Company--a trading company founded by Cecil Rhodes and incorporated by royal charter in 1889.
In the 1930s this chartered company hired an American to be its president--Thomas Ellis Robins, the son of Major Robert P. and Mary la Roche Ellis Robins, who was born in 1884 in Pennsylvania, a graduate of the University of Pennsylvania and a Rhodes Scholar from 1904 -1907 to Christ Church, Oxford--the first Rhodes Scholar from Pennsylvania. He was also a director of Barclays Bank, African Explosives and Chemical Industries, Anglo-American Corporation of South Africa, Wankie Colliery Co., Premier Portland Cement (Rhodesia), De Beers Consolidated mines, Union Corporation, Rhodesia and Nyasaland Airways, and he was a Trustee of the Rhodes-Livingstone Museum. He became a British citizen in 1912, having married Mary Wroughton from Berkshire that year. In 1946 he was Knighted. He also became a Knight of the British Empire in 1954. In 1958 he was made a Baron, which gave him the title of Lord Ellis Robins, 1st Baron of Rhodesia and of Chelsea.
RTZ was formed in the 1870s by China opium trader Hugh Matheson, who was a principal in the Hongkong-based firm Jardine Matheson.
The Rothschilds have a significant stake in the company, and Queen Elizabeth II is a significant investor, according to Charles Higham's biography of the Queen. Anglo American and RTZ combined control a stunning percentage of the Western world's most important precious minerals.
Lonrho, which recently changed its name to Lonmin, owned a third of Ashanti Goldfields stock. Rowland lost control of Lonrho in 1993 to German businessman Dieter Bock, who four years later left Lonrho to become President of TrizecHahn Europe and Vice Chairman and a Director of TrizecHahn Corporation.
Bock traded five UK and German real property projects to TrizecHahn, North America's second largest public property company, in exchange for 4% of TrizecHahn stock. TrizecHahn also owns 16.7% of Barrick Gold, the world's second largest gold producer.
Barrick was controlled by Peter Munk, who was set up as chairman, he claimed, by Adnan Khashoggi who owned the company stock.(4)
Until recently the entire section of office buildings in downtown Houston where Enron and Halliburton (through its subsidiary, Dresser Industries) leased space was owned by TrizecHahn.
The acquisition of this real estate was accomplished in a manner similar to the way Lonrho acquired Hondo--debentures, secured by stock options, not repaid.
Munk had merged his company with Trizec, a company created by William Zeckendorf and a syndicate composed of Hill Erlanger of Boston and a branch of the Canadian Bronfman family. Much more about this real estate method of money-laundering will be in the next segment to air later in the summer.
But what we are finding out is that the assets of both Zapata and Pauley Petroleum ended up in the hands of British and Canadian companies, whose shareholders include British aristocrats and the royal family, who are carrying on the looting of what was one a colonial empire.
It is interesting to note in this connection that Lonrho (now Lonmin) has its headquarters at 4 Grosvenor Place in London, across the street from Buckingham Palace. Before its demise, Enron had its London headquarters at 40 Grosvenor, at the other end of the block from Lonrho, but still just across the street from the Palace.
This real estate in Mayfair was developed by Gerald Cavendish Grosvenor, the Duke of Westminster, who still owns almost all of Mayfair, subject to leases. Enron had 3,000 subsidiary corporations, most of which were based in the Cayman Islands and other British offshore banking territories. The contracts for its online trading transactions provided that they would be performed under the laws of the United Kingdom, even though the location of the company was Houston, Texas. So who really benefited from what happened at Enron? Where did the money go?
Enron must be left for a later segment. We are following Pug Winokur's career, and the goal of this part is to examine the Penn Central Railroad, with which Pug Winokur was involved from 1980 until around 1987, to determine who was involved in that debacle.
ALL ABOARD THE PENNSYLVANIA RAILROAD
Pennsylvania Railroad (PRR), 1962
The merger between the Pennsylvania Railroad and the New York Central Railroad became effective on February 1, 1968. Bankruptcy occurred on June 21, 1970. The build-up to the merger, which had been planned throughout the 1960s and before, is even more fascinating than the aftermath of the crash.
The study of the Penn Central railroad could be lumped into a university history class, changing the name from Post-Civil War American History to "The Arrival and Departure of the Railroad in America." That title would just about cover all the topics conspiracy theorists love to dwell on but do not really understand. A very brief summary is necessary here just to keep the broad outline of our purpose in mind for this series.
Railroads were projects that required the services of investment bankers.
After the Civil War, expansion was the watchword in America--moving into and exploring the frontier, developing the resources, farming, mining--which led to the overwhelming need for communication, transportation and distribution.
These systems were built using "networks"--which, we will learn, is another word for syndicate. Any project needing money can be drawn as a line beginning at the local area in need of the capital, back to the investment banker, who can be depicted as a circle with a series of lines branching out from his center. These lines connect to the banker's sources of funds for investment.
The reason we have such a difficult time understanding history is that most of these sources of funds are secret. The banker tends to promise his clients that he will not reveal their identities to the public, and he accomplishes this goal by use of his friend, the Wall Street lawyer, who drafts legal documents like trust agreements and contracts which remain buried in the lawyer's office, stamped with a big red stamp that reads: "Confidential, subject to attorney-client privilege."
As a result, conspiracy theorists talk about the "Morgan Interests," the Rockefellers, the Rothschilds, etc., etc., as though these bankers were using their own money. Be assured, they were not. What they were doing was putting together syndicates of capital, melded together with contracts.
Every project begins in a place--usually a small locality where people live. The people who live there don't have the money to pay for the project at the time it is desired. Often, they don't even know they need the project, but someone with a much more global scope has put some numbers together and decided the demographics warrant the project to be built in this locality.
The next step is bringing the money from outside the place where the project is to become reality and then to create a financial framework that will cause the resulting cash flow emanating from the local project to return to the sources of the capital that brought the project into being.
The framework for how this system of moving the money around is referred to by investment banker types as "the financial model." Designing a workable model requires not only vision, but also respect for the individual parts that make up the whole. Ending up with a financial model where every component wins, and nobody loses is a very difficult task; usually the will of the capital sources wins out.
The only power the localities have been able to wield has been through government action or unions. Seeing this concerted action as detrimental to their interest, wealthy capitalists have devised means of getting around it--such as bribery of officials, funding political campaigns, and limiting labor union effectiveness through control of the workers' pension plans.
If a university history course were designed around teaching Americans about railroads, there would be separate chapters covering various parts of the country where railroads were built. Perhaps the most important chapter would be the story of the Pennsylvania Railroad (PRR) and the New York Central (NYC), which were themselves amalgamations of even shorter lines which had come together under centralized management.
Even before John Kennedy took office the Pennsylvania Railroad had been lobbying on behalf of the merger, which JFK did not favor. In fact, he rejected it without too much discussion once he realized that it would result in the loss of a significant number of jobs held by union workers. But Kennedy's opposition did not kill the clamor on behalf of the PRR proposal. They had support from Lyndon Johnson and Richard Nixon, and they played the long odds.
Walter Hubert Annenberg
The largest block of Pennsylvania Railroad stock in 1962 was held by Walter Hubert Annenberg, son of Moses "Moe" Annenberg, who was introduced in Part Two of this series as being connected to the Chicago organization that moved into Los Angeles through Arnold Kirkeby's acquisition of a half-interest in Janss Investment--where Victor Palmieri spent many years of his career.
Moe had made sure his son was more acceptable to elite members of the syndicate, having sent his son to The Peddie School, and later to the Wharton School at the University of Pennsylvania (apparently he didn't acquire an academic degree). Peddie was established in 1864 as a Baptist prep school in Hightstown, N.J., convenient to Princeton, Rutgers and the University of Pennsylvania.
It is no surprise that the Annenberg Foundation fails to mention Walter's father's syndicate connections to Meyer Lansky and Lucky Luciano, and simply gives him credit for bringing us those wonderful American publications--Seventeen Magazine and TV Guide--not to mention his early fascination with numerous Philadelphia radio and TV stations in the early days of the expansion of those media, before moving into funding of the communications department at the University of Pennsylvania.
Most of Walter's biography set out at the website for the foundation details various "charitable" works, which you will find to be typical for any foundation funded with dirty money; crime pays in the form of buying prestige for the criminal and his family.
Walter's second wife was Leonore Cohn, niece of the Columbia Pictures magnate and former wife of Lewis Rosenstiel of Schenley Distillers. Annenberg also served as a Lt. Commander of the Naval Reserve and owned the Philadelphia Inquirer and Triangle Publications.
Walter Annenberg had his primary residence in Wynnewood, Pa., but kept another residence near Palm Springs in Rancho Mirage, California (called "Playground of Presidents"), that included a private golf course. Walter funded the campaigns of several successful presidential candidates, and, as a result, was rewarded with the prize plum--appointment as Ambassador to the Court of St. James in London. (5)
Moe Annenberg had based his daily racing wire service out of Milwaukee, after first gaining power by being the muscle behind William Randolph Hearst's Chicago Examiner circulation war. Annenberg's full partner in ensuring Hearst's success was Al Capone, who had worked with Luciano in New York before going to Chicago.(6)
It is clear from a description of how the wire service worked that it was this organization for which Jack Ruby worked during the years before he moved to Dallas. (7)
Howard Butcher III, the University of Pennsylvania and Drexel, Harriman & Ripley
The second largest shareholder of the Pennsy Railroad was Howard Butcher III, a 1923 graduate of the University of Pennsylvania. Butcher's father (Howard, Jr.) had graduated from William Penn Charter School in 1893 and attended University of Pennsylvania for two years. He worked as a bond salesman for ten years before becoming a partner of Butcher and Sherrerd, then a member of the board of governors of the Philadelphia Stock Exchange from 1922-46, for which he served as president 1934-40. He joined the board of governors of the NY Stock Exchange in 1924-29 and 1945-49. During World War I he served overseas with the YMCA and was also a member of the Hospital Board of the University of Pennsylvania. (8)
The Butcher family's life was based around the University of Pennsylvania, whose investments they had long helped manage.
In fact, it is not really clear whether the Pennsylvania Railroad shares Butcher was holding in his name were actually his or whether they belonged to the University.
Following the Penn Central bankruptcy filing in 1970 a cursory investigation was made to discover whether there had been any wrong-doing involving the sale of shares by Butcher & Sherrerd just prior to the bankruptcy. This less-than-thorough inquiry was performed by the law firm of Drinker, Biddle & Reath, which has also had a longstanding relationship with the university.
Another firm involved in the inquiry was then called Drexel, Harriman & Ripley, which handled the university's investment account. The orders to sell the university's Penn Central stock were given by George Connell, who continued with Drexel, Burnham & Lambert after the bank changed its name.
Drinker, Biddle also handled litigation that was brought as a class action against outside directors of the Penn Central in the early 1970s. One of the attorneys handling this defense was Raymond K. Denworth, Jr., who was a member of the University Board of Trustees until his death in 1999. (9)
It can do no harm in reminding the reader at this point that Michael Milken, a summa cum laude graduate of the University of California at Berkeley, finished his M.B.A. studies at the top of his class at Wharton Business School in 1970 when he began working as a researcher at Philadelphia investment bank Drexel Harriman & Ripley. (10)
Drexel Harriman & Ripley had been founded in Philadelphia by the father of Anthony Joseph Drexel, who formed a connection with J.P. Morgan, as well as one in Paris with Harjes & Co.
According to Ron Chernow in his book The House of Morgan, in 1895, Morgan took over all the offices, including Philadelphia, even though the name Drexel remained. In 1940 Morgan's link with Drexel ended, and Morgan sold the name to "some Philadelphia partners." The names of those partners is not known at this time, but it is suspected that the new owners had some connection to the Pennsylvania Railroad. Subsequently, the name was changed to Drexel, Harriman & Ripley, before becoming Drexel Firestone.
Burnham & Company acquired the assets of Drexel Firestone in 1973, while owner, I. W. (Tubby) Burnham II, sat on the board of overseers of the Wharton School of the University of Pennsylvania. During the 1970s the board's chairman was Donald T. Regan (who in 1981 became Ronald Reagan's Secretary of the Treasury--a Harvard graduate who served as a Lt. Colonel in the Marine Corps, then spent his career with Merrill Lynch).
Also on the Penn University board were Pennsylvania Railroad shareholders Howard Butcher III and McBee Butcher. Burnham sold his Philadelphia investment bank to Baron Pierre Lambert, the Belgian cousin of the Rothschild family and manager of the Banque Bruxelles-Lambert and family mining interests.
Family member Jean Lambert married Phyllis Bronfman (while Minda Bronfman married another Rothschild cousin, Baron Alain de Gunzberg).
Howard Butcher's partner, Sherrerd, was John J.F. Sherrerd, formerly CFA of Sherrerd & Co., who had previously spent 13 years with Drexel Harriman Ripley, and was a 1952 graduate of Princeton with an M.B.A. from Wharton School of the University of Pennsylvania, 1956. He was also a director of the Brown Investment Advisory-- formed in 1993 as an affiliate of Alex. Brown & Sons--the investment banking company in Baltimore--which merged recently with Deutsche Bank in which the A. Brown subsidiary is now known as "Deutsche Bank Securities Inc." A. Brown had become a part of Bankers Trust in 1997. (11)
The role of the Drexel firm's involvement in the Penn Central fiasco is not surprising, since in the summer of 1969 Drexel, Harriman & Ripley--with legal assistance from Wall Street law firm Shearman & Sterling--had prepared the first prospectus for Investors Overseas Services (IOS), as the lead underwriter with Banque Rothschild; Guinness Mahon & Co., Ltd.; Hill, Samuel & Co., Ltd.; Pierson, Heldring & Pierson; Smith, Barney & Co., Inc.
The IOS public offering related to the transformation of Bernard Cornfeld's Fund of Funds from a Panamanian company to a Canadian corporation to be listed on the Toronto and Amsterdam Exchanges. (12)
It is clear that Cornfeld had discovered a way to launder dirty money through offshore, confidential, bank accounts, and it is clear that some of those accounts must have had an interest in developing the Bahamas as a gambling resort. Whoever ultimately owned the funds that were being laundered, they had ties to banks in Canada, Boston, and the Caribbean.
Richard King Mellon
Mellon had been a director of the PRR since 1934, succeeding his father Richard B. Mellon. Mellons had held a seat on the PRR board since 1856. R.K. Mellon was the senior member of the Penn Central Board at the time of the merger in 1968. He died in June 1970.
The Mellon family is very powerful in America. At the time of the Penn Central merger, their major holdings were in Aluminum Corp. of America (Alcoa)--33.85% of common stock individually owned and 25% preferred stock through individuals and foundation; Gulf Oil--70.24% of common owned by Mellons and their companies; Allis Chalmers; Bethlehem Steel; Jones & Laughlin Steel; Koppers United--52.42% of common; Lone Star Gas; Niagara Hudson Power; Pittsburgh Coal; Pittsburgh Plate Glass; Westinghouse. They also owned Mellon National Bank of Pittsburgh and other banks. They controlled numerous foundations, such as A.W. Mellon Trust, Avalon Foundation (Ailsa Mellon Bruce), Sarah Mellon Scaife Foundation, Old Dominion Foundation (Paul Mellon), The Richard K. Mellon Foundation and the Matthew T. Mellon Foundation.
Richard King Mellon was the son of Richard Beatty Mellon and nephew of Andrew Mellon; Andrew and Richard B. were sons of William Larimer Mellon. Sarah Mellon Scaife was Richard K.'s sister, and the mother of Richard Mellon Scaife. William (Billy) Mellon Hitchcock was the grandson of William Larimer Mellon, founder of Gulf Oil, and nephew of banker Andrew Mellon. (13)
The Mellon family had close ties with the O.S.S.
London station chief David K.E. Bruce was married to Andrew Mellon’s daughter. Also, the Mellon uncles were social friends of CIA director Richard Helms during the late 60s and early 70s.
Bobby Lehman, who gave Billy Mellon Hitchcock a job at Lehman Brothers in 1961 also had participated with W.A. Harriman & Co. in aviation issues (Lehman, Billy's father Tommy Hitchcock and Averell Harriman were on the same polo team).
Lehman Brothers also financed David Sarnoff’s Radio Corporation of America, which served as Sir William "Intrepid" Stephenson’s headquarters in New York until the O.S.S. was established. Like Drexel & Co., Lehman Brothers would also be bought out by European old-money families. It first merged with Kuhn Loeb and later with the company formed by the merger between Shearson Hayden Stone and Loeb Rhoades--forming Shearson Lehman American Express, which in 1992 was controlled by Edmund Safra and Carl Lindner (each with about 4%).
This leads us to wonder who Lindner was fronting for. Could it have been the same old-world aristocrats, heavily involved in the global drug trade?
Richard King Mellon had engaged in some real estate development with William Zeckendorf, who not only assisted the Rockefellers in many developments, but who had formed a corporation called Trizec with a capital syndicate which included a branch of the Canadian Bronfman family, the Boston investment bank of Hill, Erlanger and a British group called English Property which was controlled by Eagle Star Insurance--a company said to be very closely connected to the British Crown, the Rank Organisation and to MI-6. (14)
Mellon had a close relationship with David Bevan, president of PRR, who like Mellon was extremely secretive. He had been on the War Production Board during World War II and a member of the U.S. Lend Lease Mission to Australia, as well as deputy chief of the Economic Mission in London in 1945. Bevan operated a highly confidential investment fund organized in 1962 called Penphil which had 15 shareholders, including Bevan and four senior officers in the PRR Financial Department. Among these officers was Charles J. Hodge, partner in and chairman of the executive committee of Glore, Forgan, Wm. R. Staats, Inc.--the investment bank founded by OSS agent Russell Forgan, in which Maurice Stans was a partner. After the Penn Central merger, the Glore bank would merge with Francis I. DuPont's brokerage company. (15)
As mentioned in Parts One and Two of this series, William Zeckendorf stated in his autobiography that he had been asked to develop Century City in California in the early 1960's but backed out of the deal because of his involvement with the Great Southwest Corp. He sold out his interest in the California joint venture to Richard King Mellon of Alcoa.
Alcoa's chairman for many years was Arthur Vining Davis, who created Arvida--another land development company with vast holdings in Florida. Prior to the merger, thousands of acres of land had been sold by the owners of Arvida, the Great Southwest Corp. in Texas and Macco Realty in California, as well as other properties ready to be developed--all near urban areas.
This preparation for massive suburban development followed closely on the heels of the Kerner Commission Report and the attempt to de-segregate by forced busing, which merely increased white flight out of the inner city.
Strangely enough, Arvida remained a part of Penn Central and was managed by it until 1983--at least three years after Pug Winokur went to work for Victor Palmieri, who headed Penn Central and its subsidiaries.
According to John Taylor in Storming the Magic Kingdom: Wall Street, the Raiders and the Battle for Disney (Alfred A. Knopf, 1987), Penn Central emerged from Chapter 11 bankruptcy in 1978 "with what to many seemed an excessively bureaucratic management." One of Arvida's executives, Chuck Cobb, joined with Richard Rainwater in a leveraged buyout on behalf of the Bass Brothers.
With an investment totaling $20 million, they arranged financing of $183.6 million, secured by Arvida's assets. Six months later they marketed the company to Disney, a corporation which already owned 17,000 acres of land in Florida.
The eventual deal with Disney would result in giving Bass Brothers a big block of Disney stock. The land package which Disney had bought in around Orlando, Florida, in the 1950s had been put together for him by Paul Helliwell, former OSS chief of the Far East Division, who was recommended to Disney by William J. Donovan.
Disney's investment banker for many years was J.P. Morgan, a firm which worked with Donovan. Helliwell also set up the Castle Bank in the Bahamas to launder money flowing from the sale of drugs from Burma and Thailand used to finance Chennault's airline. Castle Bank would eventually be connected to Billy Mellon Hitchcock's profits from selling LSD to California college students.
BATTLE FOR NEW YORK CENTRAL AND ALLEGHANY CORP.
Robert R. Young
During the long history of the New York Central Railroad, its owners had included the Astor family and the Vanderbilts.
When Cornelius Vanderbilt died in 1877, he owned 87% of the stock, which he left to his son William H. Vanderbilt.
In 1879 five-eighths of the stock was sold with the help of a syndicate controlled by J.P. Morgan, who then became a board member of the railroad.
According to Ron Chernow, in his book The House of Morgan, the "Morgan-led syndicate" had the job of liquidating 250,000 shares without collapsing the price of the stock. J.P. Morgan bought 1/5 of the shares available. "The syndicate allotted 20,000 shares to Jay Gould, 15,000 to Russell Sage, and 10,000 to Cyrus Field."
Apparently the remainder of the shares were sold "abroad," primarily in London. Morgan obtained proxies to vote these foreign-owned shares.
The Morgans retained control of the railroad until a new assault occurred in 1916 with passage of anti-trust legislation. The Central had sold off one line called the Nickel Plate Railroad to the Van Sweringen brothers from Cleveland, Ohio. With financing arranged by the House of Morgan and Guaranty Trust the Van Sweringens made one purchase after another by using existing holdings as collateral for new acquisitions, with loans from Morgan.
Thus, like the Murchisons, who would come later, the acquisitions were all with borrowed funds. This is extremely important in understanding ownership of an asset.
Even if title is in my name, if a corresponding debt is outstanding, I do not own the asset; the creditor does.
The purpose of this type of transaction is purely and simply a subterfuge to disguise the actual owner.
It is no different from having a hidden trust agreement which contractually allows one person to secretly hold title in his name for the benefit of another.
The legal documents may look different, but the result is the same.
In January 1929 the Morgan Bank issued new stock for the Alleghany Corporation as a holding company for the railroad lines it owned, foremost of which was the Chesapeake & Ohio, but also the Erie and the Missouri Pacific. (16)
When Alleghany stock led the crash the following October, Morgan and Guaranty Trust led a syndicate that furnished a $40 million rescue loan that secretly replaced the Van Swerigens. Default in the first loan payment resulted in foreclosure the following year, which officially put the Morgan banks in control of the equity. But, of course, we don't know the source of the funds Morgan was using for this purpose.
According to Charles Higham [Wallis: Secret Lives of the Duchess of Windsor. London, 1989], J.P. Morgan was "a chief investor for [Queen Elizabeth's father and mother] King George VI and Queen Elizabeth" long before he became king after his brother abdicated.
Morgan had issued shares of Alleghany preferred stock, "in a storm of controversy," which were acquired by Solomon Warfield for his niece Wallis Simpson, who would later marry King Edward VIII, the brother of King George.
Wallis inherited these shares when her uncle died in 1927. In fact, they had been her favorite investment because they were one of the few stocks that did not suffer during the 1929 stock market crash.
Charges were made beginning in 1935 when the Morgans held an auction in which the Van Sweringens were allowed to bid on their former empire and obtain it for a mere $3 million, with borrowed funds of course.
Within a short time both brothers had died, and the team of Robert Ralph Young and Cyrus Eaton (allegedly a tool of John D. Rockefeller) were able to acquire the largest block of shares of Alleghany. However, the other shares, voting together, kept Young from gaining a seat on the board.
Ron Chernow refers to Young as "certifiably America's most rabid Morgan-hater." He says he "smarted after being rebuked by Tom Lamont for his testimony at the Wheeler railroad hearings in the late 1930s." Burton K. Wheeler, the Senator in charge of the hearings, was a friend of Young's, according to Charles Higham. He was opposed to the Lend-Lease program and to America's entry in World War II, and was a founder with Charles Lindbergh and Norman Thomas of the America First Committee. (17)
At the time of the hearings, Young was chairman of the Chesapeake & Ohio Railroad--parent of the Baltimore & Ohio, which eventually merged with the Seaboard Airline running from Baltimore to Florida. (18)
Allan Price Kirby
By 1941, Young had gained support of Allan Price Kirby, who joined with him in acquiring even more shares, with the same result; they were still locked off the board.
Kirby's father, Fred Morgan Kirby, from Wilkes-Barre, Pa., had been the partner of F.W. Woolworth in creating the five-and-dime corporate empire. Although Kirby did not travel in the same jet set lifestyle in Palm Beach, Florida with Robert Young, it is clear that the heirs to F.W. Woolworth's fortune did.
One of the heirs was Barbara Hutton, niece of E.F. Hutton, referred to as the "poor little rich girl." Her first cousin was Jimmy Donahue, the flagrant homosexual companion of the Duchess of Windsor for a three-year period in the early 1950s. Other wealthy Palm Beach socialites included the Dodge family, who had married into the William Rockefeller family. Like Kirby, the Rockefeller companies were based in Morristown, N.J. William Rockefeller and his partner James Stillman had founded the National City Bank, which has a long history of laundering "dirty money."
Whether it is a coincidence or not, it was also in 1879--the year J.P. Morgan liquidated 5/8 of the Vanderbilt shares-- that Robert R. Young's grandfather, an Englishman named Robert Moody, arrived in Canadian, Texas and began ranching and banking operations.
The Moody ranch was located in the northeast section of the Texas Panhandle and was surrounded by ranches like the LIT and the LX, which were owned by syndicate investors from England and Scotland.
Walter W. Foskett
Young and his wife Anita were introduced to the Duke and Duchess of Windsor in Palm Beach, Florida by their mutual friend Walter Foskett, who acted as the Duke's American attorney while he was governor of the Bahamas.
Foskett was also the attorney for Sir Harry Oakes (who owned the second largest mining company in Canada) and Harold Christie (former bootlegger), members of a consortium (called Tesden Corporation) suspected of "shady dealings" in the U.S. and Caribbean. Foskett was also a director of Alleghany Corporation.
Walter W. Foskett grew up in Logansport, Indiana and was the son of an engineer on the Pennsylvania Railroad. He began law school at Indiana University but after two years was forced to drop out for financial reasons. After working for a year as a railroad clerk earning $65 a month, he was able to return to school and graduated in 1907. He accepted a position in a Logansport law firm after a brief period in Seattle. Later he established his own practice and served one term as the Logansport city attorney and moved to Miami Beach, Florida in 1922. There he established the law firm of Winter Foskett with a long-time friend, Bert Winter. Foskett died in 1973.
It soon becomes obvious what the relationship was between the Windsors and Foskett.
Reading between the lines, we may surmise that between 1907 and 1922 the Logansport economy was very dependent on the railroad which ran through the town.
It is difficult to sort out all the small rail lines during these years, which would eventually be consolidated into larger lines; however, it appears that the main rail line through Logansport was owned by a Kentucky chartered company--the Louisville & Nashville Railroad (L&N)--a competitor in the area with the Pennsylvania and the New York Central. L&N had connections into the port areas of New Orleans area, Virginia and Georgia, which primarily were destinations of the interior connections primarily in the coal producing areas of Kentucky, Indiana, and Illinois. Through acquisitions in Indiana and Illinois in 1969 it became an important Midwestern rail center.
For many years 35% of the stock of L&N was owned by the Seaboard Coastline Railroad--controlled until his death in 1927 by Solomon Warfield, the uncle of Wallis Simpson.
In 1969 the Seaboard bought the remainder of the outstanding shares, and the L&N became the wholly-owned subsidiary of Seaboard Coast Line Industries.
In 1976 the Toledo, Peoria & Western (TP&W) -- a bridge line jointly owned by the PRR and ATSF -- bought the L&N unit line from Penn Central trustees.
On December 31, 1982, the corporate entity known as the Louisville & Nashville Railroad Company was officially merged into the Seaboard System Railroad, ending the L&N's 132-year existence under a single name. The Seaboard System quickly lost its own corporate identity as it and the Chessie System became CSX Transportation in 1986.
The Duke had abdicated in 1936 following his marriage to Wallis. His family had given him the post as governor of the Bahamas in 1940, which he viewed as exile.
At that time the islands that comprised the Bahamas were undeveloped, but the Duke was planning to build a resort in the Out Islands, along with his Bahamian associates. While he was stationed there his activities were closely monitored by the FBI, as well as by the British, who felt he was pro-Nazi and a threat to the war effort. The Americans were concerned because they intended to build a naval station at Andros Island, not far from where the Duke was meeting with his pro-Nazi friends.
Pro-Nazi Cabal in The Bahamas
The Duke met repeatedly with American businessmen such as Irish-American, James Mooney of General Motors, European division, whose factories in Berlin manufactured tanks for Hitler's use. As it turns out, Robert Young had a great deal in common with Mooney
Most of Young's professional background was connected to the DuPont financial empire. He worked for Pierre S. du Pont at the same time John J. Raskob was the company's treasurer, and later moved to General Motors after Raskob, who was secretary treasurer of the Christiana Securities Company, convinced Du Pont to invest in General Motors in 1914.
Raskob, from 1918 to 1928, was vice president and chairman of the Finance Committee of General Motors, as well as vice president in charge of finances at DuPont. By 1920 GM comprised half the earnings of DuPont, but the company, as a result of a federal antitrust investigation, disposed of its stock in 1961. Robert Young is said to have had a falling-out with Raskob prior to the 1929 crash. As a result, Young left GM, and made a fortune for himself shorting stock. (19)
It was not until 1954 that Young gained complete control of the Alleghany with the assistance of two fellow Texans, Clint Murchison, Sr. and Sid Richardson [uncle to the notorious Bass Brother of Fort Worth--his heirs], who bought Alleghany stock with loans from the corporation and voted the shares in favor of Young.
Along with various railroad segments that were consolidated to create the line were numerous pieces of real estate that were owned as part of the property of the railroad. Such real estate included the Grand Central Terminal, the Waldorf Astoria Hotel and the Bank of New York Building.
It also included what was then called the Pan Am Building, but later changed to the Met Life Building at 200 Park Avenue. This building was built just north of the terminal's main concourse by the New York, New Haven and Hartford Railroad, which owned an interest in the land as a subsidiary of the New York Central.
The company which built it received one-fourth of the financing ($25 million) from Jock "King" Cotton, an English investor who was a member of the syndicate group that typically was involved in projects with William Zeckendorf. The building was named "Pan Am" because the new airline company was the major tenant at the time.
In 1981 Grand Central Buildings, Inc. sold its interest to Metropolitan Life Insurance Co. It is currently the address for the Home Loan Bank of New York. When it opened in 1963, 200 Park Avenue was the largest privately owned office building in the world.
For some reason, this building was the headquarters of the United Fruit Company at the time Eli Black jumped from his office on the 44th floor. (20)
The plan to develop The Bahamas proceeded in Freeport under the direction of Wallace Groves, who had been convicted in 1941 of mail fraud, but who appeared in the Bahamas shortly after that. In 1955 Groves obtained a concession from the government granting 50,000 acres of land to Grand Bahama Port Authority Ltd., with an option of adding an additional 50,000.
The Port Authority, which Groves headed, was relieved from paying taxes on income, capital gains, real estate and private property until 1985 - a provision that has since been extended to the year 2054. Groves convinced the shipping tycoon D.K. Ludwig to construct a harbor, and in 1962 he brought in Canadian mobster Louis Chesler to develop the tourist center of Lucaya
Groves also operated Intercontinental Diversified Corporation, using as his attorney Paul Helliwell, former O.S.S. Chief of Intelligence in China, where he had met numerous times with Ho Chi Minh in 1945. (21)
After the O.S.S. was disbanded Helliwell worked within the War Department Far East intelligence division before opening a law firm in Miami where he worked for the CIA, handling corporate legal matters.
Helliwell represented Claire Chennault in financing his airline with drug smuggling, and contracting with the CIA's sister agency, Office of Policy Coordination, headed by Frank Wisner, before the two agencies were merged in the 1950s. (22)
Sea Supply Corporation was set up in Miami in 1949 with its main office in Bangkok, Thailand.
Helliwell in 1952 was attorney for Sea Supply, as well as general counsel for the Royal Consulate of Thailand, the address of which was Helliwell's law office.
Sea Supply was a cover for Chennault's Civil Air Transport (CAT), while also channeling assistance to Thailand's police chief who was involved in the opium trade.
Once the Far East money stream was set up, Helliwell focused on Guatemala and helped Frank Wisner and Tommy Corcoran--lobbyist for the airlines and for the United Fruit Co. --orchestrate the coup which forced President Arbenz into exile.
Helliwell acted as "paymaster," the man who made the off-the-books payments with cash that did not appear on government budgets.
Helliwell also headed the Republican Party in Florida, bringing him into contact with Bebe Rebozo, one of Richard Nixon's biggest financial supporters.
Helliwell's law partner Mary Jane Melrose, moved to Freeport, The Bahamas, in 1969 serving as an officer and director of the Port Authority and also of Intercontinental Diversified.
Payoffs were made to the Prime Minister from the corporation's accounts, which had been laundered through the Castle Bank & Trust, set up by Helliwell's law firm.
The year before Melrose began handling operations personally from the island, the Port Authority had considered transferring shares to a Philippine mining company named Benquet, founded in 1903.
The group Helliwell represented was involved in a consortium with a group represented by Allen & Co.--a merchant bank in New York composed of Charles and Herbert Allen, who held the largest block of Benquet stock.
According to J. Bryan III and Charles J.V. Murphy in The Windsor Story (Dell 1979), Charles Allen of Allen & Co. was one of the Duke of Windsor's most respected advisers (p. 609).
Bryan and Murphy also indicate that Clint Murchison sold to both Robert Young and the Duke shares in his Canadian Delhi, from which the Duke made a profit of more than half a million pounds. While the three of them were in Mexico, Young attempted to sell used rolling stock there, while Murchison attempted to buy mineral rights to offshore properties.
The parent company for Castle Bank was Freeport's first bank, Mercantile Bank & Trust (founded in 1962), which owned one of the five shares of Castle.
Mercantile had itself been formed by a syndicate which included the Cayship Investment Co. of Panama and other entities owned by Daniel K. Ludwig. Legal documents revealed that Mercantile had been set up by Inge Gordon Mosvold, a Norwegian shipbuilder.
By 1965 Paul Helliwell was a director of Mercantile Bank. Documents also showed a close connection between Helliwell and the Chicago law firm of Burton Kanter, who was a tax attorney for members of organized crime in Chicago, whose primary means of laundering money was into hotel chains.
Surprisingly, this Bahamian finance scheme coincided with much of the political background of Richard Nixon, whose first government job was in 1943 at the Office of Price Administration, where he met Cuban American Bebe Rebozo and future-Senator George Smathers.
Nixon's job was to regulate the prices of rubber goods, which were rationed during the war. Smathers was an attorney for crime figures smuggling tires from Cuba, while Rebozo owned a gas station from which he sold the tires on the black-market.
A few years later when Nixon ran his first campaign for Congress, he was assisted by mobsters working for Mickey Cohen, who sold heroin in Los Angeles.
Through Rebozo, Nixon also met other organized crime figures, many who had been involved in Cuban casinos before Castro threw them out. Some of these men set up businesses in The Bahamas, once it was developed.
Nixon was an attorney for National Bulk Carriers, which had contracts with General Development Corp., run by Wallace Groves and Lou Chesler, to build the harbor.
In his presidential campaigns, Nixon was the first Republican to have union support--from the Teamsters, headed by James Hoffa, who loaned hundreds of millions of dollars from the Central States Pension Fund for construction of casinos in Las Vegas. [Source: Gary W. Potter, Professor, Criminal Justice and Police Studies, and sources cited therein.]
Alleghany Corp., IDS, Money Laundering, and Richard Nixon
Once Young gained control of NYC, he appointed Alfred Perlman to be president.
Working with Perlman for many years was Wayne Hoffman, who left the railroad one year before the merger took place.
Hoffman became chairman of the Flying Tiger Airlines in Los Angeles.
This is the airline mentioned in a previous part of the series which was set up in California by pilots in Claire Chennault's squadron in China, who had flown opium for Chiang Kai-Shek
While the Flying Tiger group were making deals with Edwin Pauley and his friends in Mexico, Claire Chennault was letting Paul Helliwell set up a system to finance his airline by laundering drug money from Burma and Thailand.
Hoffman serves as a link between these airlines and the Penn Central. One attorney in California for the Flying Tiger Line was Herbert Kalmbach, who was on President Nixon's staff. Nixon was also connected to the Penn Central by virtue of his own legal work, prior to his election, for Investors Diversified Services (IDS).
In 1954, Robert Young had sold Clint Murchison, Sr. a 24 percent interest in IDS, whose three subsidiaries sold savings certificates and other securities. This $5 million investment increased in value to $7 million in three months.
Incredibly, when Kirby and Young bought IDS in 1949, they paid less than $2 million, though by 1959 it grew to control assets worth $3.4 billion.
Accusations of insider trading were made, and in 1959, after Robert Young's suicide, Allan Kirby convinced Murchison to give back his voting shares of IDS in exchange for non-voting shares. Kirby controlled Alleghany, and, after the exchange, Kirby controlled 48% of the voting shares of IDS, allowing Kirby to squeeze out Murchison and his two sons, to whom he transferred his stock--at about the same time all the Texans were kicked off the board. At that point the Murchison brothers decided to wage a proxy fight against Kirby, which lasted two and a half years. The brothers also sued Kirby for $100 million for conspiracy and fraud, losing in the U.S. Supreme Court.
Alleghany Corp. owned almost a million shares of New York Central stock. But by far the most valuable asset was IDS. By the end of 1962, a year and a half after winning the proxy fight, the Murchisons decided to sell their interest in Alleghany to Bertin C. Gamble, from whom Young had acquired it in 1949.
By this time, the stock was worth $300 million. There can be no question but that this was a money-laundering operation. Gamble quickly sold the stock to Allen Kirby and two associates.
It would have been around this time that Richard Nixon moved to New York and began representing IDS. Two years later, the Pennsylvania Railroad, while working toward a merger with the New York Central, began a buying spree. The board bought land in California, in Texas and in Florida. It bought a company called Executive Jet Aviation, with David Bevan spending $21 million without board approval, without requesting CAB approval for the railroad to operation an air carrier.
Penphil, the secretive investment group operated by David Bevan, also purchased 10,000 shares of Tropical Gas Co., Inc. in 1963, and continued buying through 1968. After the Penn Central merger Tropical exchanged shares with U.S. Freight Co. when the two corporations merged in October 1969.
In 1969 most of the board members of Tropical had connections to Glore Forgan. Tropical had borrow from one director's bank in Miami, a bank which also made construction loans to Arvida and loans to PRR to buy Arvida stock. Penphil also had loans from Chemical Bank of New York to finance various investments.
The question is whether the looting was planned all along, or whether it just got out of hand. What arrogance led these men to believe that they could spend so much money and accumulate so much debt without the entire structure collapsing around them? Unless of course, the plan all along was to use the land to launder drug money; the value of the stock hit bottom before they could fulfill the plan.
Then Richard Nixon failed to push through the bailout loans from the government when Congress objected. Bankruptcy was filed in 1970, and Victor Palmieri was called in to protect the assets. And the system was still operating during the 1972 election.
Remember the Dahlberg check? Dahlberg lived in Minnesota (home of IDS) and made a contribution there to the Committee to Re-Elect Nixon. This check went to Maurice Stans, apparently, and then out to Houston, Texas where Bill Liedtke bundled it with cash and another check drawn on a bank account in Mexico from a subsidiary of a Houston corporation.... But isn't this where we came in? Watch for Part Five, which will make this connection even more apparent.
(1) Colombia's petroleum production today rivals Kuwait's on the eve of the Gulf War. The United States imports more oil from Colombia and its neighbors Venezuela and Ecuador than from all Persian Gulf countries combined. Stan Goff, a former U.S. Special Forces intelligence sergeant, retired in 1996 from the unit that trains Colombian anti-narcotics battalions. Plan Colombia's purpose is "defending the operations of Occidental, British Petroleum and Texas Petroleum and securing control of future Colombian fields," said Goff, quoted in October by the Bogotá daily El Espectador. "The main interest of the United States is oil." Colombia's known oil reserves amount to 2.6 billion barrels, far fewer than those of the world's major oil powers. But only about 20 percent of the country's potential oil regions have been explored, due to the violence. Colombia's biggest foreign investor is BP Amoco, formed when British Petroleum merged with Chicago-based Amoco in 1998. The London-based giant controls Colombia's largest oilfield, a 1.5-billion-barrel trove called Cusiana-Cupiagua in the northeastern province of Casanare. A 444-mile pipeline called Ocensa carries BP Amoco oil to the Caribbean port of Coveñas for export. Los Angeles-based Occidental Petroleum helps operate the nation's second-largest oilfield, Caño Limón, holding 1 billion barrels in Arauca, a province just north of Casanare. Occidental pumps away its share through a 485-mile duct to Coveñas. The June announcement confirmed a deposit about 55 miles southwest of Bogotá. An international consortium led by Canadian Occidental Petroleum expects as much as 300 million barrels from the oilfield, called Boquerón, making it the nation's third-largest deposit. Many of these companies have led the fight for U.S. military aid to Colombia, the world's third-largest recipient of U.S. security assistance. In 1996, BP Amoco and Occidental joined Enron Corporation, a Houston-based energy firm, and other corporations to form the U.S.-Colombia Business Partnership. Since then, backed by hefty oil-industry donations to political candidates, the partnership has lobbied hard for increased aid. Oil will remain a U.S. military priority under President George W. Bush if his campaign donors and cabinet appointees have any influence. The top source of cash for his presidential and Texas gubernatorial bids was Enron and its employees, including CEO Kenneth L. Lay, according to the Center for Public Integrity. Enron, one of the companies that led lobbying for Plan Colombia, owns Centragas, a 357-mile natural gas distribution system in northern Colombia. http://www.globalexchange.org/colombia/021501.html
(2) In 1985 the largely unknown Fayed brothers paid $689 million in cash for the House of Fraser retail chain (whose flagship was Harrods). Two years later, the Department of Trade and Industry--at the instigation of al Fayed's chief rival for control of Harrods--began investigating the family. Its report, published in 1990, concluded that the brothers did not hail, as they had claimed, from "an old Egyptian family" with a 100-year history of landownership and shipbuilding. "The image created...of their wealthy Egyptian ancestry was completely bogus," the report said. The government further concluded that the money al Fayed used to purchase Harrods could not have come from an inherited fortune, as he claimed, but was probably put up for al Fayed by his associate, the Sultan of Brunei, the world's wealthiest man. Al Fayed was not accused of breaking any law, and he and the Sultan denied the charges. Al Fayed bitterly attacked the report as a smear. "They could not accept that an Egyptian could own Harrods, so they threw mud at me," he once said. But acquaintances of his in Alexandria also describe the Fayeds as a modest family: al Fayed's father was a language teacher, and al Fayed grew up on the rougher side of town. He started as a small-time trader there, selling Singer sewing machines and Coca-Cola. In the early 1950s the future Saudi billionaire Adnan Khashoggi offered al Fayed a share in a Khashoggi business that exported Egyptian-made furniture to Saudi Arabia. The company took off, and not long after, al Fayed married Khashoggi's sister Samira, who gave birth to Dodi in 1955. He divorced her after two years and went into the construction business in the United Arab Emirates. After befriending Dubai's ruler, al Fayed won big development contracts for British firms prowling the Persian Gulf. "Of course," says Khashoggi, "there were fees and commissions." This brokering was the foundation of the Fayed family fortune. http://www.time.com/time/magazine/1997/dom/970915/princess.outside_lokin.html and http://www.guardian.co.uk/hamilton/article/0,2763,195658,00.html and http://www.porters.uk.com/covent/movers/default.asp?ID=12 For more on Khashoggi's dealings, see http://www.redherring.com/mag/issue107/627.html
(3) The following is an excerpt from a 1988 article written by John Summa called "ANGLO-AMERICAN CORPORATION: A PILLAR OF APARTHEID": Anglo owns 39 percent of Minorco's stock and De Beers another 21 percent. Minorco has a 30 percent stake in Engelhard, an international producer of platinum with sales of over $18 million annually. Through the company's New York headquarters, Engelhard buys gold, silver and platinum from South African mines and refines them at plants in the United States and abroad. Power appears to be shared with U.S.-based Philipp Brothers, a multinational trading firm that possesses a CIA-like communications and intelligence network, and is involved heavily in South African metals. [Note: In Part Two of this series Engelhard was identified as a client of Russell Forgan, investment banker at Glore Forgan and former O.S.S. agent who became closely connected to European companies like Italian SuperPower. Forgan's investment bank, which later merged with F.I. DuPont, was at the center of Penn Central purchase of land and other assets that led to its bankruptcy.]
Anglo also has a presence in the United States, which extends to minerals such as copper, zinc, gold, silver, nickel and coal, by way of the Inspiration Resources Company, in which it has a 59 percent share. Minorco previously had a 14 percent stake in Salomon Brothers, Inc., a U.S. investment bank, which it sold in 1987. Minorco has offered $4.9 billion to acquire Britain's Consolidated Gold Fields Plc., the world's second largest gold producer. Purchasing Consolidated Gold would greatly expand Anglo-American's mineral holdings, particularly in the United States. Consolidated Gold owns 30.7 percent of Peabody Holding, the United State's biggest coal producer, and 49 percent of the U.S.-based Newmont Mining Corp. Almost a third of Consolidated Gold's profits are generated in North America.
Anglo-American's character is a reflection of the designs of South Africa's Oppenheimer family. Sir Ernest Oppenheimer took over the mining enterprise from late 19th century English mining magnate Cecil Rhodes. He built a diversified company out of initial investments in diamonds and other gems, which he passed on to his son, Harry Frederick Oppenheimer. When Anglo-American was set up in 1917, half of the initial capital supplied came from U.S. investors, with the condition that Oppenheimer's first choice for the company's moniker, "African-American," be changed to Anglo-American, because "African-American would suggest on this side our dark-skinned fellow countrymen and possibly result in ridicule," a cable from the U.S. investors stated. The company in 1929 bought De Beers from successors of Cecil Rhodes.
Through Anglo, the Oppenheimers own shares in all of South Africa's mining houses. In fact, the houses have cross-holdings with each other, making the block of capital quite formidable. But the extent of Oppenheimer wealth and power does not stop there. They are owners of the nation's largest steel works, travel agency, brick factory, discount house, auto dealership and computer software firm. The Oppenheimers are not afraid to employ their power to get what they want. On the issue of apartheid they have ostensibly taken a reformist position and have crafted an image for themselves as defenders of the rights of black workers by supporting abolition of the pass laws and the Group Areas Act, the cornerstones of the apartheid political structure. http://multinationalmonitor.org/hyper/issues/1988/09/mm0988_08.html
(4) http://www.corpwatch.org/bulletins/PBD.jsp?articleid=420 . According to Robert Lacey's book, The Kingdom: Arabia and the House of Saud, Mohammed bin Laden was a patient of Khashoggi's father, a prominent Iranian physician. The young Khashoggi became a middleman for the bin Laden conglomerate in the late 1950s, getting his start by negotiating a big truck sale that earned the Iranian $25,000. http://www.straightgoods.ca/ViewNote.cfm?REF=1173. "Of all the bin Ladens, it was Saleem who had the close relationship to the Bushes. The connection was a Houston wheeler-dealer named James Bath, who haunted the darker back corridors of the Bush-Reagan years, amid the fragrance of scandals ranging from Iran/contra to BCCI to the Silverado Savings and Loan debacle to Iranian weapons mogul Adnan Khashoggi. ... In the mid-1970s, Bath became vice-president of Atlantic Aviation, one of the world's top business-aircraft sales companies. At the time, Atlantic was owned by Edward DuPont, of the DuPont chemical empire. DuPont's brother, Richard, served on the board of Atlantic. According to Gerard Colby's excellent book, DuPont Dynasty, Richard's own company, Summit Aviation, was a longtime CIA contractor. ...Through the bin Ladens, Bath was also introduced to Sheik Khalid bin Mahfouz, the CEO of the National Commercial Bank, Saudi Arabia's biggest bank. The NC bank was a prime lender for Khashoggi. In 1985, at a time when the arms dealer was moving weapons to Afghanistan, Iran and the contras, NCB loaned Khashoggi $35 million. B