Nel's New Day

January 27, 2016

Koch Brothers’ Underhanded Methods to Control U.S.

Jane Mayer, writer for The New Yorker, has just published Dark Money: The Hidden History of the Billionaires behind the Rise of the Radical Right. Her personal adventure with the Koch brothers began five years ago when she learned about private investigators digging into her background. She had just published an in-depth piece chronicling the rise of the “Kochtopus,” headlined “Covert Operations,” which brought the Koch brothers in the limelight that they avoided for decades. Her depiction of them as secretive bankrollers warring against President Obama and environmental safety measures enraged the Koch brothers.

Mayer was first accused of plagiarism when David Strong, reporter at the conservative Daily Caller, asked David Remnick, New Yorker editor, this allegation and sent several pieces that attempt to back up his allegation. New York Post reporter Keith Kelly, who received the same allegations, asked the Daily Caller’s editor Tucker Carlson, about the origins. He couldn’t support the information and dropped it, but Strong refused to talk to Kelly about the story. When the purported victims stated that there was no plagiarism, the accusation collapsed. It took Mayer three years to track the origin.

The Koch machine had hired at least six people, working in borrowed space of the lobbying firm operated by former GOP Rep. J.C. Watts, to investigate Mayer . She noted that a source told her, “If they couldn’t find it, they’d create it.” An unnamed source also told her that the Koch operatives “thought they had you. They thought they were going to be knighted by the Kochs.” The accusation of plagiarism appeared after operatives failed to turn up anything “truly incriminating,” such as a friend from college who later had problems. As Mayer said, “It was 60 years ago.”

The general counsel of Koch Industries also sent a letter to the American Society of Magazine Editors tried to keep the New Yorker from receiving a National Magazine Award for Mayer’s writing about the Koch brothers. That also failed.

Another firm hired to investigate her was Vigilant Resources International, whose founder and chairman, Howard Safir, had been New York City’s police commissioner under the former Mayor Rudolph Giuliani. Two other people involved in the operation against Mayer were Philip Ellender, who heads Koch’s government affairs arm, and Nancy Pfotenhauer, who has served as president of a nonprofit advocacy group funded by the Kochs. The only person to speak on the record was Ken Spain, spokesman for Koch Industries, who claims that Mayer’s writings about Koch are “grossly inaccurate.” Asked about if he was saying that Mayer’s investigation had not happened, Spain answered, “We stand by the statement.”

It’s understandable why the Koch brothers would want to smear Mayer’s book. She tells about how their father helped build a major oil refinery in Nazi Germany. Fred C. Koch became successful in business in the years immediately preceding World War II. The oil refinery, third largest in the Third Reich and vital to Hitler’s war machine, came from his partnership with U.S. Nazi sympathizer William Rhodes Davis. Fred Koch admired German discipline so much in the 1930s that he hired a fervent Nazi as a governess for his eldest boys.

In 1938, the same year that Hitler’s new laws seized assets and confiscated property from Jews, Fred Koch said, “Although nobody agrees with me, I am of the opinion that the only sound countries in the world are Germany, Italy, and Japan, simply because they are all working and working hard…. When you contrast the state of mind of Germany today with what it was in 1925 you begin to think that perhaps this course of idleness, feeding at the public trough, dependence on government, etc., with which we are afflicted is not permanent and can be overcome.” Conservatives can trace their current philosophy back to Nazi Germany.

Mayer also writes about the oldest Koch brother, William, participating in blackmail with Charles and David to force David’s twin, Frederick, to relinquish any claim to the family business. If he had not, the other three said that would tell their father that Frederick is gay. This information comes from the 700-page book Stealth: The History of Charles Koch’s Political Activities, that William commissioned to describe Charles’ secret plan to manipulate U.S. politics.

In the 1990s, Koch Industries admitted that it had pocketed millions and millions of dollars by mis-measuring oil from Indian reservations and stealing it. The Koch brothers said that it was an accident, but no other companies had this problem.

Twenty years ago, Koch Industries environmental technician Sally Barnes-Soliz revealed that their Texas refinery was releasing 15 times more than the legal limit of benzene into the atmosphere. When Koch falsified a report by 1/149th of the amount she calculated, she reported that also. Barnes-Soliz got an empty office with no email access, and Koch Industries paid $20 million. She quit in 1999 with an undisclosed settlement.

Dark Money chronicles how a small sect of the ultrarich—Richard Mellon Scaife (heir to the Mellon banking fortune) and Harry and Lynde Bradley (brothers wealthy from military contracts) among them—were largely creators of the current conservative movement, now controlled by Charles and David Koch. With others, these political donors poured hundreds of millions of dollars, usually with little or no public disclosure, into supposedly non-profit organizations for anti-government and anti-tax purposes under the veil of promoting public interest.

The Koch brothers are known for their heavy investment in fossil fuels and their leadership in funding climate change denial. Their “crown jewel” is the Pine Hill Refinery in Rosemount (MN), polluting the air with emissions from heavy “garbage” crude from Alberta’s tar sands by daily importing 25 per cent of the 1.2 million barrels of oil into the U.S.

Charles Koch founded the Cato Institute which issued reports such as “Apocalypse Not: Science, Economics, Environmentalism and the Climate of Fear: Why We Shouldn’t Worry about Global Warming.” A non-peer reviewed study claiming that climate change was not endangering polar bears came from Charles G. Koch Charitable Foundation with funds from ExxonMobil and the American Petroleum Institute. Other climate denial reports came from funding provided by Scaife, heir to the Gulf Oil fortune, and John Olin, whose companies have manufactured DDT.

The nucleus of the Koch donors comes from an owner of coal reserves, two fracking pioneers, and a variety of oilmen and coal company owners. Between 2003 and 2010, climate denial groups colleged over one-half billion dollars which came from self-identified tax-exempt, philanthropic endeavour,” according to Robert Bruelle, Drexel University professor of sociology.

The Koch brothers attack on climatologist Michael Mann was more successful than the one on Jane Mayer. Co-author of a 1999 study showing the way that the earth’s temperature shot up in the 20th century, Mann was briefly discredited by a hacker who gained access to internal emails from the University of East Anglia’s Climatic Research Unit. Misconstrued wording in one email about Mann and his research led to congressional Republicans investigating Mann and sending threatening letters to Penn State about their tenured professor. A self-described CIA officer offered Mann’s departmental colleagues $10,000 for any dirt they could find on him. State GOP legislatures withheld Penn State’s funding until the university took action against Mann. He received death threats and opened a letter with white powder. Mann was exonerated, but the episode left a trail of terror for other researchers.

The Koch’s vast network was designed to persuade other wealthy business owners to donate to the Koch-controlled political groups. Scaife, who died in 2014, joined Koch’s cause with over a billion dollars to prevent his inheritance tax by donating its net income to charity for 20 years. Koch-financed groups provided strategies to oppose the Affordable Care Act and climate change mitigation while supporting cuts to Social Security. Mayer reports that in 2011 about then House Speaker John Boehner (R-OH) visiting David Koch for help in resolving a debt ceiling stalemate.

The Koch brothers plan to spend almost $1 billion to elect a Republican president this year. And that doesn’t include all the “dark money” that they collect for their ultra-conservative efforts. Jane Mayer describes their recipe for doing this:

“The Kochs have built kind of an assembly line to manufacture political change. And it includes think tanks, which produce papers. It includes advocacy groups, that advocate for policies. And it includes giving money to candidates. And you put those three together, and they’ve pushed against doing anything about climate change on all those three fronts at once. So you get papers that look like they’re real scientific opinions doubting that climate change is real, you get advocacy groups saying we can’t afford to do anything about it, and you get candidates who have to sign a pledge that—their largest political group is Americans for Prosperity.

“They have a pledge that says that if you want to get money from this—from their donors, you have to sign a pledge saying that, if elected, you will do nothing about climate change that requires spending any money on the problem. And 156 members of Congress currently have signed that pledge. So, it sort of is a recipe for how to tie the hands of the country from doing anything on this.”

Charles Koch was a member of the John Birch Society that his father helped found, and both brothers thought that President Eisenhower was a communist and Ronald Reagan was too liberal to be a president. Their attempt to reform the criminal system is based on getting rid of crimes related to pollution, corporate crime, and tax crimes. And they control billions of dollars to push their agenda. That’s what the progressives are facing in this year’s election.

June 17, 2014

Koch Brothers’ Secret Enclave Gathers Rightwing Extremists

Filed under: Uncategorized — trp2011 @ 8:17 PM
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What did you have to eat for dinner last night? I had a ham sandwich, some potato salad (thanks to leftovers from a potluck on Saturday), and an apple? And I felt lucky because I didn’t go to bed hungry like millions of people in the United States did.

Meanwhile several influential Congressional GOP members were recovering from a luxurious meal that included “oven roasted Angus natural filet mignon served in a fresh green peppercorn sauce served with braised fennel with truffle, asparagus tips, vegetable and mint quinoa.”  The setting for this meal was La Casa Pacifica, Richard Nixon’s former home now owned by Gavin Herbert, the founder of the pharmaceutical company Allergan. He is also a major funder of the American Legislative Exchange Council which provides GOP state and federal legislators with model legislation to break unions, repeal environmental protections, require voter ID, and increase gun access to guns to be used for “stand your ground.”

All this made possible by a member of the top 0.1 percent, the Koch brothers who hosted billionaires and wooed Republicans at St. Regis Monarch Bay Resort (Dana Point, CA), which the Koch brothers rented for $870,000 for the weekend. Some of those Republicans attending the secret conference, “American Courage: Our Commitment to a Free Society,” included Reps. Tom Cotton (AR), Cory Gardner (CO), and Jim Jordan (OH) as well as Sens. Mitch McConnell (KY)—fresh from refusing people to refinance student loans—and Marco Rubio (FL).

The agenda included campaign finance, climate change, healthcare, higher education, and—of course—taking control of the Senate.

A goal of the conference was to raise at least $500 million from the potentially 300 billionaires to take over the Senate and “to make sure Hillary Clinton is never president.” They may have come up a bit short because the U.S. has only 492 billionaires.


McConnell spoke to the entire group on defending First-Amendment rights, presumably about keeping big money in politics.

Nancy Pftotenhauer, former director of the Washington office of Koch Industries, was a panelist on “Energy: Changing the Narrative.” That message was no doubt de-regulation to benefit the Koch brothers’ massive interests in oil, natural gas, and oil.

Amity Shlaes was interviewed about her recent biography on Calvin Coolidge, the president whose “inaction reflects strength” and is “our great refrainer,” according to Schlaes.

Charles Murray, libertarian author of the The Bell Curve, gave dinner remarks. His book, defended by Rep. Paul Ryan, advances the theory of racial differences in intelligence.

 Michael Lomax, strong promoter of the myth that charter schools are better than other schools perhaps because he profits from them led the first part of “The Foundation for Progress” called “Drive the National Conversation.” The Kochs recently gave him $25 million to create a program emphasizing free markets. Other sessions included “Leverage Science and the Universities” and “Advance in the States.”

Jeff Crank, formerly CEO of Americans for Prosperity and now head of a for-profit group recruiting candidates “principled on economic freedom issues,” interviewed  Cotton and Gardner in a session called “The Senate: A Window of Policy Opportunity for Principled Leaders.”

Senator Rubio was scheduled for a small group discussion on what was called internally “The Immigrant Experience” to finish the conference. Some interesting entries in it include “Texas: Sustaining a Culture of Freedom in the Lone Star State” and “Well-Being: What It Is and Why It’s Important.”

Dale Gibbens and Philip Ellender, Koch Industries employees, were to hold a special invitation-only, small group strategy discussion called “Employee Outreach: Engaging Your Workforce in the Cause of Freedom.” Almost two years ago, just before the November 2012 election, the Koch brothers sent letters to 50,000 employees telling them who they should vote for, evidently under the guise of Citizens United free speech rights for corporations. The result from the U.S. Supreme Court ruling is that companies can legally intimidate employees about their votes. Part of the material sent to employees included Charles Koch’s rating of presidents: Warren G. Harding and Calvin Coolidge were at the top.

Coordinated by the Kochs’ financing arm, the conference was listed as “T & R Annual Sales Conference.”  The Koch brothers bought out the hotel, its restaurants, and access to its golf course from Saturday through noon today. Owners of adjacent residents who normally had access to the hotel were denied this availability with the excuse that it had been bought by a group of Obama supporters. President Obama gave a commencement speech at nearby UC Irvine on Saturday. Tight security demanded a no-cell phone policy.

St. Regis Monarch Bay Resort

The offices of Reps. Tom Cotton, Cory Gardner and Jim Jordan; Sens. Mitch McConnell and Marco Rubio; and Michael Lomax did not respond to requests to The Nation for comment.

One announcement that came out of this conference is the formation of a new Koch Super PAC. The Freedom Partners Action Fund, designed to spend a mere $15 million, will give money directly to candidates instead of spending on issue ads. President of the Freedom Partners Chamber of Commerce Marc Short explained:

“The Freedom Partners Action Fund will support candidates who share our vision of free markets and a free society and oppose candidates who support intrusive government policies that push the American Dream out of reach for the American people.”

statue of libertyThe kick-off of the new funding group used huge heart-rending posters throughout the hotel of what appears to be an immigrant family of three from the back as they stare at the Statue of Liberty. The boy is pointing at it. The poster used the name for the conference, “American Courage, Our commitment to a free society.”

A different twist to this PAC is that it will have to disclose its donors to the Federal Election Commission. Names can still be sheltered, however, if donors give money through LLCs registered in states like Delaware which permit corporate officers to remain secret. Last year, the parent organization raised $250 million for issues ads.

Favored folk of former years were apparently missing. Last year Rep. Paul Ryan (WI), House Majority Leader Eric Cantor (VA), and New Mexico Gov. Susana Martinez spoke last year to the gathering outside Albuquerque. American Enterprise Institute President Arthur Brooks gave a speech last year on work as a source of happiness. Past attendees include Supreme Court justices Antonin Scalia and Clarence Thomas; media stars Rush Limbaugh, Glenn Beck and the late Andrew Breitbart; Govs. Chris Christie (NJ), Bob McDonnell (VA), and Rick Perry (TX); and Sens. John Cornyn (TX) and Jim DeMint (SC), now head The Heritage Foundation. Other attendees have been Sens. Ted Cruz (TX) and Rand Paul (KY) and Govs. Nikki Haley (SC) and John Kasich (OH). It’s almost like reading a list of has-beens.

In its march toward gathering $290 million for the 2014 elections, the Koch brothers had a January conference as well as smaller groups in places such as Palm Springs, Newport Beach, and St. Louis. They also have regular conference calls, sometimes including congressional members, to update donors and keep them donating. Recipients of the funds are politically active nonprofits such as Americans for Prosperity and Libre Initiative aimed toward Hispanics.

Now they’re fighting back against the $100-million climate change campaign led by progressive hedge fund billionaire Tom Steyer. In their home state of Kansas, the Koch brothers have failed to roll back the state’s new standards requiring 20 percent of the state’s electricity from renewable by 2020. Even the fear campaign that they ran with seniors in Kansas didn’t succeed. When the Koch brothers refused to debate Steyer about regulations to curb human-created pollution, Koch spokesperson Melissa Cohlmia explained “we are not experts on climate change.”

Secrecy, money, and hypocrisy—those were the themes of the conference.


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