-Caveat Lector-

from:
http://washingtontimes.com/national/20010710-931279.htm
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Liberty Lobby goes under, ends Spotlight public�</A>
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Liberty Lobby goes under, ends Spotlight publication
By Andrea Billups
THE WASHINGTON TIMES

     Liberty Lobby has closed its doors and its weekly newspaper, the
Spotlight, has published its last edition after a federal bankruptcy judge
last week dismissed the group's latest claim for Chapter 11 protection.

     The most recent ruling by U.S. bankruptcy Judge S. Martin Teel Jr. puts
an end to a complicated eight-year battle between Liberty Lobby founder
Willis A. Carto and his former associates at the California-based Institute
for Historical Review (IHR).

     IHR sued and won a multimillion-dollar judgment on claims that Mr. Carto
illegally diverted funds from the institute's Texas parent company, the
Legion for the Survival of Freedom.

     Mr. Carto, a resident of Escondido, Calif., founded the Washington-based
Liberty Lobby in 1955. The nonprofit outfit and its publication, the
Spotlight, funded by outside donations and subscriptions, claimed to be
America's key defender of patriotism and a hub for grass-roots conservative
activism. But they also have been criticized as a fertile breeding ground for
the views of anti-government extremists, conspiracists and racists.

     Yesterday, as about 25 employees gathered personal belongings and
wrapped up last-minute business at the Liberty Lobby offices, located at 300
Independence Ave., a spokesman defended Mr. Carto and vowed to fight on.

     "Nobody is really that sad, but everybody is mad," said spokesman
William Francis. "While Liberty Lobby may be dissolved, nobody has given up
here. We know that we did nothing wrong as an institution. Everybody has
complete faith in Mr. Carto and how he administered the funds."
     While offering few specifics, Mr. Francis hinted that a new incarnation
of the Spotlight was already in the works.

     "They may come in and shut us down, but the staff are fully committed to
make new efforts to get something going. Over the last several days, we've
had hundreds of phone calls to the office, pledges of hundreds of thousands
of dollars to set up a new newspaper," he said. "We have a citizens army
behind us."

     Mark Weber, director of IHR, said the ruling may signal the end of
Liberty Lobby, but he predicts Mr. Carto will endure with some other venture.

     "This is a welcome culmination of an exhausting, costly, bitter legal
and public relations dispute," said Mr. Weber, who has been assailed in the
pages of the Spotlight as a "rat," "weasel," "toilet bowl," "cockroach" and
"devil."

     Mr. Francis yesterday reiterated his claims that IHR plans to sell one
of the Liberty Lobby's final assets, its subscriber mailing list, to such
watchdog organizations as the Southern Poverty Law Center and the
Anti-Defamation League, which have been critical of both feuding groups.

     "It's a lie," Mr. Weber said of those claims.

     Liberty Lobby once sued the Wall Street Journal for having called the
organization "anti-Semitic." But Judge Robert Bork dismissed the suit in
1984, declaring, "If anti-Semitism has a core, factual meaning, it was
demonstrated here."

     Mr. Carto, a 74-year-old native of Fort Wayne, Ind., has been called
"the most influential anti-Semite in the United States." About 90,000 people
are paid subscribers to the Spotlight, which in 1981 had an estimated
readership of more than 300,000.

     The weekly's "favorite political targets included the Rockefellers, the
Rothschilds, Henry Kissinger, the Council on Foreign Relations and the
'Zionist entity' in Palestine," according to author Dennis King.

     Mr. Carto played a key role in co-founding IHR in 1978. The
Anti-Defamation League has called IHR "the world's single most important
outlet for Holocaust-denial propaganda"

     Mr. Carto was ousted by IHR's board of directors in September 1993 after
the staff complained, among other things, of Mr. Carto's interference in
editorial decisions for the Journal of Historical Review, an IHR publication.





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