From: "Linda Minor" <[EMAIL PROTECTED]> Re: Purchase from the U.S. Government of the Little-Inch and Big-Inch oil and gas pipelines E. Holley Poe went to Dillon Read's offices in New York, where he made contact with August Belmont IV. When asked why he had selected Dillon Read rather than some other investment bank, Poe shrugged his shoulders, and as Belmont later recalled, replied that someone had told him about the firm. "D-R has always been one of the biggest houses down here for underwriting natural gas corporation issues. In fact, before the war, in 1935, it had handled a private placement for $16 million of Northern Natural Gas bonds, selling them to insurance companies." Among Texas Eastern's initial owners, who raised $1,350,000 were Texans�E. Holley Poe, Everett De Golyer, and Herman and George Brown, the last named Houston construction men who were to receive important contracts from TETCO. The new company�s attorneys, Vinson, Elkins, Weems, and Francis, provided $27,000. Dillon Read took a $317,000 interest, quite a sizable amount of money for a firm which always insisted on using other people�s money in its deals.... Dillon Read then raised another $4 million from Manufacturers Trust, which also provided a $3 million construction loan. On February 10, 1947, TETCO bid $143,127,000, nearly twice the highest bid made earlier, and $12 million more than the next highest of the six bids. Once TETCO won the bid, Belmont, descendant of Rothschilds� first agent in the United States, had nine months to obtain $134.5 million in funds. He issued $120 million in 25-year bonds at 3.5%, which were placed with insurance companies�Met Life and Prudential ($36 million each) and New England Mutual ($1.5 million). A little over 3.5 million shares were offered by a large group of underwriters that brought in almost $34 million. Three New York banks set up a line of credit for TETCO. Manufacturers Trust (Manufacturers Hanover) was headed at that time by Horace Flanigan, who was also a director of Union Oil, both of which were clients of Dillon Read, as was Anheuser-Busch (headquartered in St. Louis), which was controlled by the family of Flanigan�s wife. Their son, Peter Flanigan went to work at Dillon Read in 1947, right out of Princeton and the Navy. From 1949 to 1951 he took a leave of absence to work for the government in London, which in later years gave him many contacts for European placements. Dillon Read (formerly Vermilye & Co.) was an old investment banking firm with connections to Union Trust and Merchants Bank of New York. In 1876 the firm came into the hands of Donald Mackay, who served on a number of corporate boards, including Merchant�s National Bank and the Harriman National Bank. A few years later, William A. Read joined the firm, and in 1890 joined with August Belmont & Co. to do some underwriting. Then in 1896 he worked on the Baltimore & Ohio�s reorganization committee with representatives from J.P. Morgan, Kuhn Loeb, Hallgarten, and Belmont. By 1902 William Read owned 2/5 of the firm and Donald and George D. Mackay together owned just over 1/3. After a partnership feud, Mackay & Co. was organized at 14 Wall Street and Wm. A. Read & Co. at 25 Nassau Street�first floor of the Equitable Life Assurance Society, "next door to Belmont & Co., its closet associate." (p. 27). The associates were Joseph H. Seaman, W.M.L. Fiske and Charles Hazard. In 1912 the Equitable Building was destroyed by fire, and the firm moved to 28 Nassau. Clarence Dillon joined the firm as a bond salesman in 1914. He was born to a Polish Jewish immigrant (Samuel Lapowski) who lived in San Antonio, married a Swedish Lutheran, and opened a dry goods store in Texas. Clarence Dillon went to Harvard, where he became a close friend of Armin Schlesinger, whose father manufactured mill machinery in Milwaukee and offered Dillon a job in his companies�Newport Mining Co. and Milwaukee Coke & Coal Co. In Wisconsin he met his wife, Anne Douglass, whose brother had founded the Milwaukee Machine Tool Company in which Clarence Dillon bought a half interest and became president. It was through the management and liquidation of this business that he met William A. Read and became his protege. Through his connections in Milwaukee and Michigan, he garnered business from machinery and automobile manufacturing companies like Chrysler and Dodge. Another member of Dillon, Read was James V. Forrestal, who had been at Princeton with Ferdinand Eberstadt and Dean Mathey, nephew of D-R partner Fiske. Forrestal had gone to work, through the help of his friend Robert Christie, for the American Tobacco Company before Mathey talked him into working for Read just after World War I. The firm worked with J.P. Morgan and Brown Brothers in organizing American Foreign Securities (AFS) to handle underwritings for loans the company would make to America�s war allies. Robert Bacon, who had been with Morgan, was appointed president of AFS, and Dillon was a director. These investment banks were all clients of John Foster Dulles, "longtime confidant" of Hitler�s "economic wizard," Hjalmar Schacht. According to Burton Hersh: Hucksters for the Wall Street investment houses hit the recumbent Germany like sucklings clambering aboard a sow. "During 1925 and 1926 not a week went by that a representation of a group of American banks did not come to see me for that purpose (making loans)," the Prussian Minister of Finance marveled in 1931. German authorities had been virtually flooded with loan offers by foreigners. Two underwriters quickly outdistanced all others in soliciting these high-risk bond issues, New York�s National City Bank (whipped on by Henry Mann) and Dillon, Read and Company. As the war progressed, Dillon was appointed to be Bernard Baruch�s assistant at the War Industries Board. Baruch, also a Wall Street investor/speculator, had business ties to E.H. Harriman. In 1918 George Bush�s paternal grandfather, Samuel Bush, a railroad equipment executive in Ohio, was appointed chief of the Ordnance, Small Arms and Ammunition Section and director of the Facilities Division of that board, and Robert S. Lovett, former Houston lawyer and Harriman chief, also served on the board. Others on the board were Herbert Bayard Swope and Harrison Williams. In 1924 Harrison Williams created North American Company (Noramco), which by 1930 was one of America�s largest utilities holding companies (Clarence Dillon handled most of the underwritings for Noramco and its subsidiaries). North American controlled ten companies: North American Edison, Union Electric Light & Power, St. Louis County Gas, Washington Railway & Electric, West Kentucky Coal, and Western Power�which, in turn, controlled other companies which controlled others�for a total of 50 companies in a five-level pyramid. Through the War Industries Board, Dillon also met Joseph P. Cotton, Jr., former law partner at Cravath, Henderson & DeGersdorff, who founded McAdoo, Cotton & Franklin, whose clients included RCA and Allied Chemical. With Brown Brothers, Dillon helped finance a number of industrial companies such as Goodyear and Steel & Tube. In 1919 Dillon took control of Goodyear, and ended up owning a large amount of stock, along with Union Trust. Board members were Armin Schlesinger, two D-R partners, Schlesinger�s attorney Edward G. Wilmer (also president of Steel & Tube, Milwaukee Coke and Gas and the Newport Company), and an officer of the Leonard Kennedy & Co., 45% of the stock of which was owned by the Nassau Corporation (owned by Clarence Dillon), and the rest by Schlesinger and other Schlesinger associates. Dillon Read also organized a number of investment trusts to participate in foreign securities, one of which was United States & Foreign Securities (US&FS) and another being the American and Continental Corporation (as partner with the French American Banking Corp. of New York, Kuhn Loeb, and the International Acceptance Bank). In 1928 D-R also sold 500,000 units of United States & International Securities (US&IS), through trust accounts managed by the firm, which held certain securities such as National Cash Register, Seaboard Airline Railway (Sol Warfield�s company), Pennsylvania Railroad, Southern Pacific, St. Louis-San Francisco Railway and others which were sold out of the firm�s trust accounts, somewhat like mutual funds are sold today. After the first world war many U.S. companies had made direct investment into German corporations: General Motors into Opel, Ford Motors building a factory in Cologne, General Electric in AEG and Siemens, and ITT in telecommunications. Dillon, Read & Co. "specialized in loans to Deutsche Bank, Siemens, and Flick interests," which between 1924 and 1929 totalled more than $250 million. Christopher Simpson�s research indicates that: Friedrich Flick built his fortune during the 1920s using bonds sold by Dillon, Read to finance what today might be called leveraged buyouts of German and Polish coal and steel companies. Most of Dillon, Read�s own capital was oil money, including substantial sums from the Rockefeller, Draper, and Dillon families. The bulk of the money lent to Germany, however, was raised via limited partnership bond syndications in U.S. markets. This meant that when Germany defaulted on a series of loans in the early 1930s, Dillon, Read and its major partners had already taken their share of the spoils, while the smaller investors who had bought these bonds lost tens of millions of dollars. Clarence Dillon�s son, Douglas attended private school with Laurance, Nelson and John Rockefeller III, then went to Groton and Harvard. In 1936 he became president of US&IS. In 1940 he organized American Viscose Corporation from a subsidiary of the British firm of Courtaulds Ltd. According to Sobel, this company represented a $100 million investment of British capital in America out of a $900 million total, "which was being liquidated to provide funds to purchase arms for the United Kingdom." (p. 212 Dillon, Read�which was always closely associated with the Belmont family�was working with N.M. Rothschilds of London to raise money for the British royal family and the British government. Douglas Dillon was always close to D-R partner August Belmont IV, whom he brought back in to the firm after World War II for the purchase of the Big and Little-Inch Pipelines for Tetco, at the same time Douglas became chairman of D-R. In 1952 Eisenhower made Douglas ambassador to France, and in 1961 he became Secretary of Treasury under Kennedy. William H. Draper, Jr., a vice-president at D-R, worked on a corporate issue for a steel cartel for Fritz Thyssen in the late twenties, and was, ironically, later assigned to administer JCS Directive 1067 designed to break up cartels and make restitution of assets to American bondholders who were victims of German corporations. Draper also served as director of the German Credit and Investment Corporation of New Jersey, which specialized in U.S. investments in Hitler�s Germany, which profitted from the expropriation and resale of properties owned by Jews�a policy called "Aryanization." After World War II, Draper became U.S. economics chief in occupied Germany. In 1947 Draper became Undersecretary of War, replacing D-R officer Robert Patterson. Patterson, through his Dillon Read partnership, had strong ties to Rockefeller interests and thus to the IG Farben chemical cartel which had a monopoly on all chemical products manufactured in Germany. Allied with Standard Oil, IG Farben which controlled the patents, kept other chemists from manufacturing synthetic rubber. When the Japanese took over the Malayan Peninsula�s rubber plantations, it greatly affected the outcome of the war. In 1939, therefore, the American IG Company was formed through a consolidation of Sterling Products Co., Grasseli Chemical Works (a/ka General Aniline Works), Agfa-Film Co., Winthrop Chemical and Magnesium Development companies�with Standard Oil owning 15% of the stock of the new company, placing Walter Teagle, Paul Warburg and Edsel Ford as directors. Teagle was nominee for 500,000 shares but refused to disclose the name of the true owner. After Teagle perjured himself before a Congressional Committee investigating securities, American IG Farben�s name was changed to General Aniline & Film Corp., which by then owned numerous shares in such corporations as Ozalid, Schering, Mission Corp., Monsanto Chemical, Dow Chemical, Standard Oil of New Jersey, Indiana and California, duPont Chemical and Drug, Inc. It also acquired outright the private Hoffman-LaRoche company, the Swiss branch of IG Farben set up in 1939. IG subsidiary Sterling, Inc. bought out Winthrop, Bayer and a number of less well-known drug companies. Drug, Inc. was owned by Louis K. Liggett from Massachusetts, owner of Bristol-Myers, Vick Chemical, United Drug and the RX retail drug chain. Another connection Dillon Read had with Houston was its involvement with Howard Hughes and TWA. Hughes went to Fred Brandi to arrange a financing package for TWA, after having worked with Lehman Brothers and Lazard Freres. All three banking companies worked together to raise enough money for TWA to pay for aircraft it had ordered from Hughes Tool. Hughes had to agree to place his shares in a voting trust for ten years and not to interfere with the airline�s operations, but Hughes would not give up control. In 1961 the bankers recommended that the TWA board sue Hughes and Hughes Tool for violation of the Antitrust Act. Hughes countersued in 1962 against the voting trust for obtaining control over TWA illegally. Shortly thereafter, Hughes became a recluse and no longer appeared in public. When Hughes was cited for contempt for failure to respond to a required court appearance, his countersuit was dismissed with prejudice by the court. Dillon Read, however, continued as TWA�s investment bank and issued financings every few years through 1981, making a great deal of profit for itself. George Brown was, therefore, a client of this illustrious investment bank, and he clearly had access to money�big money from a source who wanted to buy power but remain secret. During George Brown�s tenure on the ITT board other directors included Allan Kirby, an heir to the Woolworth fortune, Robert Young, a former stockbroker turned railroad tycoon connected with Alleghany Corp., and Robert McKinney�Young�s cousin�of Davis Manufacturing. The names Allan Kirby and Robert Young provide a strong clue to Brown�s other connections. Allan Kirby had had virtual control of Alleghany since 1937. Solomon Warfield had secured a number of shares of Alleghany preferred stock, "issued in a storm of controversy by the banker J.P. Morgan, who was a chief investor for King George VI and Queen Elizabeth at the time they were Duke and Duchess of York," for his niece, Wallis Simpson (later the Duchess of Windsor), which she inherited upon his death in 1927. This stock had always been her "first investment favorite," according to her biographer Charles Higham. When the Duke and Duchess became friends with Robert Young, allegedly after being introduced by mutual friend Robert Foskett after they moved to the Bahamas, Young and his wife Anita became one of their few close friends. Both Foskett and Young were directors of Alleghany and lived in Palm Beach, Florida. Young was also a friend of Clint Murchison, Sr., who agreed at Young�s request to entertain the Duke and Duchess and their entourage at his secluded ranch in the interior of Mexico in January 1950. Immediately after that visit the Windsors visited the Duke�s land in Alberta, Canada which they had not seen in nine years. They had been unsuccessful at locating any oil deposits there. Interestingly, it was at that same time that Murchison decided to explore for natural gas in Alberta and to construct an east-west gas line across Canada. Murchison�s connection with the black sheep of the royal family may also help to explain Bobby Baker�s comment about John Connally raising money for Johnson. Connally was attorney for Sid Richardson, who was Clint Murchison�s best friend. -----Original Message----- From: Catherine Austi Fitts <[EMAIL PROTECTED]> To: [EMAIL PROTECTED] <[EMAIL PROTECTED]> Date: Wednesday, November 10, 1999 7:23 PM Subject: RE: [CIA-DRUGS] Re: First Union Corp >Sorry to be a pest. I am also looking for anything on the "cratering" of the >Florida Insurance Exchange back in the 80�s and how that might tie into CIA >and Iran Contra financial fraud, including BCCI/First American. I have False >Profits here and will check that again. > > -----Original Message----- >From: Catherine Austi Fitts [mailto:[EMAIL PROTECTED]] >Sent: Wednesday, November 10, 1999 3:48 PM >To: [EMAIL PROTECTED] >Subject: RE: [CIA-DRUGS] Re: First Union Corp > > > Linda, do you know. As I remember, btw, Peter Flanigan may have had had a >close relationship with Blount. I don't remember what Dillon did in Alabama. >I have to get our my Sobel history on Dillon Read and see if I can connect >any dots. I am also going to check to see if any of these names are related >to Robert Lovett and George Baker, both names familiar from my days at >Piping Rock Club on Long Island (Locust Valley). > -----Original Message----- > From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]On Behalf Of Bob > Sent: Wednesday, November 10, 1999 3:44 PM > To: [EMAIL PROTECTED] > Subject: [CIA-DRUGS] Re: First Union Corp > > > Does First Union Corporation have to do with the > First Union Bank? FU bought Signet and picked > up First American(two corps?) after the CIA took > FA's money out for scum-doggy provisioning. -B > From: "Catherine Austin Fitts" <[EMAIL PROTECTED]> > If anyone has seen connections between our conversation about CIA and >drugs > and the following company (old list of directors attached) please let >me > know. Also, recommendations on materials or books on the relationship > between CIA, organized crime and the insurance industry are welcome. >Thanks. > > >=========================================================================== = > ================================== > > AMERICAN HERITAGE LIFE INVESTMENT CORPORATION > 1776 AMERICAN HERITAGE LIFE DRIVE > JACKSONVILLE, FLORIDA 32224 > > John Ellis "Jeb" Bush* * on temporary leave-of-absence > President, Codina Group, Inc. > Coral Gables, Florida (Real Estate) > > T. O'Neal Douglas, > Chairman of the Board, President and Chief Executive > Officer of the Company, is also a director of Physician Sales & >Service, > Inc.; > A. Dano Davis, > a director of the Company, is also Chairman of the Board of > Directors of Winn-Dixie; and a director of First Union Corporation; > Robert D. Davis, a director of the Company, is also a director of > Winn-Dixie; > Radford D. Lovett, a director of the Company, is also a director of > Winn-Dixie, First Union > Corporation, Florida Rock Industries, Inc. and FRP Properties, Inc.; > Edward L. Baker, a director of the Company, is also Chairman of the >Board of > Directors of > Florida Rock Industries, FRP Properties, Inc., a director of Flowers > Industries, > Inc. and Regency Realty; > H. Corbin Day, a director of the Company, is also a > director of Blount International, Inc., > all of which corporations have securities registered pursuant to >Section 12 > of the Securities Exchange Act of 1934 or subject to the requirements >of > Section 15(d) of that Act. > In addition, T. O'Neal Douglas, Chairman of the > Board, President and Chief Executive Officer of the Company, is a >director > of > the Barnett Bank of Jacksonville, N.A., a subsidiary of Barnett Banks, >Inc. > > ======= > http://www.sec.gov/Archives/edgar/data/49029/0000950144-99-004427.txt > > > > > --------------------------- ONElist >Sponsor ---------------------------- > > GRAB THE GATOR! FREE SOFTWARE DOES ALL THE TYPING FOR YOU! > Tired of filling out forms and remembering passwords? Gator fills in > forms and passwords with just one click! Comes with $50 in free >coupons! > <a href=" http://clickme.onelist.com/ad/gator4 ">Click Here</a> > > --------------------------------------------------------------------- - >-- > > > -- > > druggingamerica.com More FunThan A Tom Clancy Novel > > ciadrugs.co m > > unfriendlyskies.com > > college of crime > > > --------------------------- ONElist Sponsor ---------------------------- GRAB THE GATOR! FREE SOFTWARE DOES ALL THE TYPING FOR YOU! Tired of filling out forms and remembering passwords? Gator fills in forms and passwords with just one click! Comes with $50 in free coupons! <a href=" http://clickme.onelist.com/ad/gator4 ">Click Here</a> ------------------------------------------------------------------------
