The Naked Capitalist, Chapter Seven

Excerpt from Skousen, Cleon (1970) The Naked Capitalist. Retrieved from https://app.box.com/

Chapter Seven

Tax-Exempt Foundations Involved in Weakening and Subverting the Constitutional and Ideological Fabric of the American Culture

Now we turn to the vast reservoirs of wealth the tax-exempt foundations — which Dr. Quigley describes as the major base of operations for the Establishment bosses as they launch their catastrophic attack on the basic framework of the whole American society.

Dr. Quigley’s disclosure that the Council on Foreign Relations and the Institute of Pacific Relations were responsible for what turned out to be a paroxysm of world-wide political subversion, is no more shocking than his bold declaration that the global collectivists of the London-Wall Street axis were equally successful in attacking the whole foundation of the American culture through the exploitation of the millions made available by certain tax-exempt foundations.

Generally speaking, the Rockefeller Foundation, the Carnegie Foundation, the Ford Foundation and a host of other Wall Street philanthropies have always been looked upon as generous, capitalistic santa clauses. Let us repeat a previous quotation in which Dr. Quigley admits the development of an explosive situation back in the early 1950’s when the use of tax-exempt foundations for U.S. subversion almost spilled out into public view. In fact, public hearings were heard, but the Establishment’s choke-hold on the press was sufficient to keep the public from becoming aware of the scandalous proportions of the facts which were discovered. Here is the way Dr. Quigley describes what happened:

[page 58]

Tax-Exempt Foundations Caught Red-Handed

“It must be recognized that the power that these energetic Left-wingers exercised was never their own power nor Communist power but was ultimately the power of the international financial coteries, and, once the anger and suspicions of the American people were aroused, as they were by 1950, it was a fairly simple matter to get rid of [hide elsewhere] the red sympathizers. Before this could be done, however, a congressional committee, following backward to their source the threads which led from admitted Communists like Whittaker Chambers, through Alger Hiss, and the Carnegie Endowment to Thomas Lamont and the Morgan Bank, fell into the whole complicated network of interlocking tax-exempt foundations.” 1(81)

How the Scandal Was Kept From Reaching the Public

“The Eighty-third Congress in July 1953 set up a Special Committee to Investigate Tax-Exempt Foundations with Representative B. Carroll Reece, of Tennessee, as chairman. It soon became clear that people of immense wealth would be unhappy if the investigation went too far and that the ‘most respected’ newspapers in the country, closely allied with these men of wealth, would not get excited enough about any revelations to make the publicity worth while, in terms of votes or campaign contributions.” 2(82)

Note how this last sentence reveals the Achilles Heel in the secret society’s operations. The whole concern of the globalist conspiracy is to do their work in such a way that the public will not become sufficiently aroused to use their “votes and campaign contributions” to knock the agents of the Establishment out of political power in Washington. As long as the Constitution remains in effect the American people still have an opportunity to wake up and “throw the rascals out.” As we shall see later, Dr. Quigley was horrified, along with his fellow “insiders” when this earth-shaking possibility almost became a reality in 1964. But we shall discuss that tremendously interesting incident a little later. Now, back to Dr. Quigley:

The Scandalous Congressional Findings Were Not Shocking To Dr. Quigley

“An interesting report showing the left-wing associations of the interlocking nexus of tax-exempt foundations was [page 59] issued in 1954 rather quietly. Four years later, the Reece committee’s general counsel, Rene A. Wormser, wrote a shocked, but not shocking book on the subject called Foundations: Their Power and Influence.” 3(83)

Note that Dr. Quigley fully appreciates that the Reece Committee hearings turned up some shocking information and that the book written by its general counsel, Rene A. Wormser, was intended to shock the public. But Dr. Quigley had been on the inside for many years so it was not shocking to him.

This reviewer has studied the Wormser book 4(84) and has concluded that while the findings of the Reece Committee might not be disturbing to an “insider” like Dr. Quigley, they are certainly sufficient to raise the blood temperature of any ordinary American who might be anxious to preserve his basic rights and preserve the American way of life in an open society. The Reece Committee found that tax-exempt foundations were deliberately attacking the whole basic structure of the Constitution and the Judaic-Christian American culture.

A Congressional Committee Verifies What Dr. Quigley Says Concerning the Power of Tax-Exempt Foundations

For the sake of brevity, the facts set forth in the Wormser book on the findings of the Reece Committee will be summarized. The various references to the specific pages where the details can be read are provided:

  1. Political maneuvering to prevent the hearings from being effective. (pp. 341-377)
  2. Completely disruptive tactics employed by Congressman Wayne Hays. (pp. 359-366)
  3. How rich banking and industrial families give their money to foundations without
    losing control of their funds. (pp. 11-12)4. Who actually runs the tax-exempt foundations? (pp. 41-54)
  4. How the major foundations are all interlocked into a monolithic monopoly of power to
    carry out globalist policies. (pp. 57-80)
  5. Money of the foundations used to take over the Social Sciences:

a. Social Sciences looked upon as a potential political [page 60] instrument. (pp.
83-86)
b. Suppressing social scientists who disagree or criticize. (pp. 86-89)
c. Developing an elite corps of social engineers with a compulsive drive to “remake the world” along socialist lines. (pp. 90-100)
d. Foundation-sponsored Kinsey report deliberately designed as an attack on Judaic-Christian morality. (pp. 100-105)
e. Using social science to sabotage the structure of military services. (pp. 105-110)
f. Employing a Marxist Socialist to produce and promote the social science classic, A Proper Study of Mankind. (pp. 110-114)
g. Importing a Swedish Socialist to produce a study on the American Negro which has created the current climate of revolution and violence. (pp. 114-119)
h. Financing The Encyclopedia of the Social Sciences as a vehicle for the spreading of socialist concepts. (pp. 119-125)
i. Developing a Marxist elite in academic social science circles. (pp. 125-129)
j. Policy of continually emphasizing pathological aspects of American society to discredit its culture. (pp. 129-131)
k. Foundation-sponsored research often slanted to conform with pre-conceived
objectives. (pp. 75, 131-138)

7. Foundations use their funds to subvert and control American education.

a. “Conform or no grant!” (p. 140)
b. The birth of Educational Radicalism. (pp. 143-145)
c. Carnegie finances a Socialist charter for education. (pp. 146-152)
d. The radical educators. (pp. 152-155)
e. The Progressive Education Association. (pp. 155-156)
f. Financing and promoting socialist textbooks. (pp. 156-167)
g. Financing Left-wing reference works. (pp. 167-171)
h. The National Education Association not designed to advance “American”
education. (pp. 142, 145, 160, 164-165, 216-217)

8. Tax-Exempt Foundations as instruments of subversion:

a. Communist influences in foundations. (pp. 174-177)
b. Socialist influences in foundations. (pp. 177-184) [page 61]
c. Helplessness of the average citizen. (pp. 186-187)
d. Ridiculing the American idea of free markets and free enterprise. (pp. 187-188)
e. The Socialists receive voluminous foundation-support in launching their League for Industrial Democracy. (pp. 188-193)
f. Foundations push a long-range program to radicalize American labor. (pp. 193-196)
g. Foundations provide Communists, Socialists and similar collectivist mentalities to serve in government. (pp. 196-199)

9. Foundations finance the betrayal of America’s best interest to achieve collectivist internationalism:

a. Foundation policies fixed on global schemes. (pp. 200-201)
b. Rhodes scholars fed into Government service by foundations. (pp. 201-202)
c. The Carnegie Endowment for International Peace caught promulgating war. (p. 204)
d. International Relations Clubs sponsored by Carnegie to promote socialist internationalism and speakers such as Alger Hiss. (pp. 207-208)
e. The Foreign Policy Association as an instrument of opinion-molding to the Left. (pp. 208-209)
f. History books which keep Americans from learning the truth. (pp. 209-210)
g. Promoting the United Nations as the home base for the Socialist-Communist coalition. (pp. 214-216)
h. Alger Hiss describes how foundation agencies should be used to affect U.S. policy decisions. (pp. 218-219)

The Ford Foundation Receives Special Attention

The Wormser book devotes 79 pages exclusively to the Ford Foundation. Even in 1958 Wormser sensed that the newest and largest of the dynastic foundations was being harnessed to the team of global internationalism and that its guns were quick to blast away at any traditional Americans who were bold enough to suggest that the open society of the United States might be preferable to the great new society of controlled collectivism.

henry-ford

The irony of this tragic abuse of Ford Foundation funds was [page 62] compounded by the fact that Henry Ford, Senior, had maintained a running battle with the Wall Street tycoons to keep them from taking over his company during his latter years. He set up the Ford Foundation in such a way that his family would be able to keep control of it and he had assumed they would perpetuate the same policies and ideas which he had fostered. But when Henry Ford, Senior, died in 1947, there was a scramble for power and the chief responsibility for the actual administration of the Ford Foundation ended up in the hands of none other than Paul G. Hoffman.

paul-hoffman

Paul G. Hoffman was not only a member of the London-Wall Street nexus, but had been director of the principal propaganda arm of the Council on Foreign Relations and also a trustee for the Institute of Pacific Relations. Hoffman hired a well-known global collectivist, Robert M. Hutchins, as his $50,000 per year Associate Director. They were deeply involved in various Left-wing enterprises until 1953 when the Ford family went through a “palace revolution” and Hoffman and Hutchins found themselves being handed $15 million to set up a “Fund For the Republic” so they could be replaced on the Ford Foundation management team by more immediate friends of the family.

paul-hutchins

As the directors of the new Fund for the Republic, Hoffman and Hutchins immediately went to work suppressing in every way possible the strong spirit of anti-Communism which had exploded after the Hiss scandal and the frustrations of the Korean War. They spent $100,000 in a “study” of the Government’s loyalty-security program and helped to completely emasculate the peace-time defenses against subversive employees in Government. They also spent $300,000 on a “study” of the “influence of Communism in contemporary America.”

A key member of the staff for this study was Earl Browder, long-time [page 63] National Secretary of the Communist Party.

Another “study” tried to discredit the efforts of concerned citizens who were stirring up public opinion to keep known Communists from propagandizing on radio, television and the motion picture screen. When concerned parents began objecting to hard-core Left-wing teachers in the state schools and colleges, the Fund for the Republic spent $150,000 to demonstrate that academic freedom was being suppressed by “over-zealous patriots.” When J. Robert Oppenheimer was fired as a security risk after he was found to have lied about his contributions to the Communist Party, the Fund for the Republic financed and promoted the showing of Edward R. Murrow’s propaganda broadside defending Oppenheimer. When the American Friends Service Committee was trying to whitewash the Communist seizure of China and get the United States to grant recognition, Hoffman went to the Ford Foundation and successfully obtained $1,134,000 to finance their campaign.

Hoffman soon depleted the $15 million given the Fund for the Republic, but he then married Mrs. Anna Rosenberg and took a key post at the United Nations where he helped get several millions in U.S. funds turned over in the name of the U.N. to Castro and otherwise supported a wide variety of Communist-sponsored projects.

Meanwhile Robert M. Hutchins had reorganized the Fund for the Republic and created a radical Left-wing propaganda organization in Santa Barbara, California, called the Center for the Study of Democratic Institutions. New financing had to be obtained, much of it through foundation grants. The activities of this Center became so notorious that the Ford Foundation would no longer admit whether or not it was providing additional financing.

By 1956 the Ford Foundation had spent more than one billion [page 64] dollars in contributions to “education” and had thereby become a well-nigh all-encompassing influence over hundreds of colleges and universities.

McGeorge Bundy Becomes President of the Ford Foundation

By 1966 it was decided to place the Ford Foundation in the hands of McGeorge Bundy and many people — already concerned about the trend of this foundation’s expenditures — were alarmed to see it suddenly make its major project the financing of the newly radicalized revolutionary Left.

McGeorge-Bundy

Who is McGeorge Bundy?

After graduation from Yale, Bundy was employed on the staff of the Council on Foreign Relations. In a short time he launched on an academic career and succeeded in becoming the dean of the faculty of arts and sciences at Harvard by the age of 34. From there he was drafted to serve as a top advisor to John F. Kennedy and Lyndon Johnson. They placed him in the leadership of the highly sensitive National Security Council.

In 1964 when the Communist elements tried to seize the Dominican Republic and U.S. forces had to be dispatched to prevent another Red Cuba from arising in the Caribbean, McGeorge Bundy was sent over to find a “political” solution. He selected Antonio Guzman, one of the top henchmen of the leader of the Communist coup as the man to support.

Some alert Washington correspondent went to work and publicized the fact that Guzman was not only the official negotiator for the Communist-dominated Bosch regime, but was under investigation for a $75 million theft from the Banco Agricultura which Guzman had managed during the short time Bosch was in power. A storm of protest broke in Congress when it was discovered what McGeorge Bundy was trying to do. Bundy [page 65] returned quickly to Washington and was soon out of Government service. It was then announced that he was going to be the new President of the Ford Foundation.

(It was reminiscent of the handling of the Alger Hiss scandal. As the subversive career which Hiss had nurtured through the years began to be exposed, and embarrass the administration, he was quickly removed from his official assignment with the State Department and appointed President of the Carnegie Endowment for International Peace.)

McGeorge Bundy accepted his new assignment with the Ford Foundation as very serious business. He soon announced that the militant “Black Revolution” was “the first of the nation’s problems.” Bundy’s solution was to pour vast quantities of funds into the hands of the professional Black revolutionists.

In New York City one of the foremost firebrands in the violent racial riots which have plagued that metropolis, has been Milton A. Galamison. He was the keynote speaker at the organizing convention of the Communist W.E.B. Dubois Clubs. In 1967 Bundy authorized $160,000 to underwrite Galamison’s revolutionary work.

A Black revolutionist, Herman B. Ferguson, identified himself with RAM, which turned out to be a Communist-front terror organization. In due time Ferguson was indicted in Queens, New York, on a charge of plotting the assassination of non-Communist Negro leaders and Senator Robert F. Kennedy. With such a serious charge pending against him, Ferguson was nevertheless hired by the Ford Foundation and he was still on the rolls of the Foundation when he was finally arrested for violating the terms of his bail.

LeRoi Jones made himself notorious as the author of a vulgar anti-white play called The Toilet. He was encouraged to go on with his revolutionary theatrical pornography when he was given access to [page 66] a grant of $50,000 from the Ford Foundation. Later, Jones was arrested in Newark, New Jersey, while helping to lead the 1967 riots at Newark. He was heavily armed.

The National Urban League whose chief is Whitney M. Young, started out as a moderate Negro public service agency. But when it came out against non-violence and in favor of Black Power, the League received approximately $2 million from the Ford Foundation.

Floyd B. McKissick, Stokely Carmichael’s associate in the Black Power movement, obtained $175,000 from the Foundation for the anti-White racist organization, CORE. A year later (1968) the Ford Foundation gave CORE $300,000 more.

When Walter Reuther decided to “unionize” Welfare and Office of Economic Opportunity recipients so they could bring greater pressure on Government to insure increased stipends, the Ford Foundation initiated the program (called the “Citizens Crusade Against Poverty”) with a grant of $508,500. Reuther is the man who took a training job in the Soviet Union and wrote back to his friends, “Carry on the fight for a Soviet America.”

Official Ford Foundation reports show that millions upon millions are being poured into revolutionary, Communist-dominated or global collectivist organizations under the direction of McGeorge Bundy. Here are a few samples from recent reports. Anyone familiar with the Congressional reports on Un-American Activities will appreciate the significance of these organizations.

Council on Foreign Relations ($1,000,000)
Adlai E. Stevenson Institute of International Affairs ($1,000,000)
Institute of International Education ($1,625,000)
World Affairs Council ($102,000)
The National Committee on U.S.-China [Red China] Relations ($250,000)
The United Nations Association ($150,000)
Foreign Policy Research ($275,000)
American Friends Service Committee [Pro-VietCong] ($100,000)
Southern Regional Council [Communist staffed] ($648,000)
National Student Association ($315,000)
Southwest Council of La Raza [headed by identified Communist Madevie R. Barraza]
($630,000)
[page 67]
National Educational Television and Radio Center [NET] ($6,000,000)
Public Broadcast Laboratory ($7,900,000)

So much for the activities of the major foundations which “insider” Carroll Quigley says
were “not shocking” to him at all.

Dr. Quigley’s Assessment of Certain Prominent People on the U.S. Scene

Dwight-Eisenhower

“The candidate [Eisenhower] had no particular assets except a bland and amiable disposition combined with his reputation as a victorious general. He also had a weakness, one which is frequently found in his profession, the conviction that anyone who has become a millionaire, even by inheritance, is an authoritative person on almost any subject. With Eisenhower as candidate, combined with Richard Nixon, the ruthless enemy of internal subversion, as a running mate, and using a campaign in which the power of Madison Avenue publicity mobilized all the forces of American discontent behind the neo-isolationist program, victory in November, 1952, was assured.” 5(85)

“… the lower-middle-class groups had preferred Senator Taft as their leader. Eisenhower, however, had been preferred by the eastern establishment of old Wall Street, Ivy League, semi-aristocratic Anglophiles whose real strength rested in their control of eastern financial endowments, operating from foundations, academic halls, and other tax-exempt refuges.” 6(86)

John F. Kennedy

“Kennedy, despite his Irish Catholicism, was an Establishment figure. This did not arise from his semi-aristocratic attitudes or his [page 68] Harvard connections…. These helped, but John Kennedy’s introduction to the Establishment arose from his support of Britain, in opposition to his father, in the critical days at the American Embassy in London in 1938-1940.

“His acceptance into the English Establishment opened its American branch as well. The former was indicated by a number of events, such as sister Kathleen’s marriage to the Marquis of Hartington and the shifting of Caroline’s nursery school from the White House to the British Embassy after her father’s assassination. (The ambassador, Ormsby-Gore, fifth Baron of Harlech, was the son of an old associate of Lord Milner and Leo Amery, when they were the active core of the British-American Atlantic Establishment.) Another] indication of this connection was the large number of Oxford-trained men appointed to office by President Kennedy.” 7(87)

Dean-Rusk

Philip-Jessup

Dean Rusk, Alger Hiss, John Foster Dulles, Etc.

“These tax laws drove the great private fortunes dominated by Wall Street into tax-exempt foundations which became a major link in the Establishment network between Wall Street, the Ivy League, and the Federal Government. Dean Rusk, Secretary of State after 1961, formerly president of the Rockefeller Foundation and Rhodes Scholar at Oxford (1931-1933) is as much a member of the nexus as Alger Hiss, the Dulles brothers, Jerome Greene, James T. Shortwell, John W. Davis, Elihu Root, or Philip Jessup.” 8(88)

Source:

Skousen, C. (1970) The Naked Capitalist. Retrieved from https://app.box.com/