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Context of 'July 22, 1970: Nixon, Aides Plan Dissemination of Secret Campaign Funds'

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White House Chief of Staff H. R. Haldeman begins setting up a secret campaign fund for the 1970 and 1972 elections. The source of the funding is to be, in its initial phases, money from billionaire oilman J. Paul Getty. Haldeman writes to fellow Nixon aide John Ehrlichman: “Bebe Rebozo [Nixon’s close friend] has been asked by the president to contact J. Paul Getty in London regarding major contributions.… The funds should go to some entity other than the [Republican] National Committee so that we retain full control of their use.” [Reeves, 2001, pp. 40]

Entity Tags: Republican National Committee, Charles ‘Bebe’ Rebozo, John Ehrlichman, J. Paul Getty, H.R. Haldeman

Timeline Tags: Nixon and Watergate, Elections Before 2000

President Nixon orders chief of staff H. R. Haldeman to finalize the creation of a second secret campaign fund (see February 17, 1969). The purpose of this particular fund is to support candidates in the November 1970 midterm elections that Nixon believes are loyal to him. The idea is not necessarily to support Republicans, but to support Nixon loyalists—party is a secondary consideration. “One of our most important projects for 1970 is to see that our major contributors funnel all their funds through us,” Nixon writes. “[W]e can see that they are not wasted in overheads or siphoned off by some possible venal types on the campaign committees… we can also see that they are used more effectively than would be the case if the candidates receive them directly.” The candidates’ fund, eventually dubbed the “Townhouse Operation” or “Town House Project” (so named because all of its dealings must take place in private offices and not in the White House or any campaign offices (see Early 1970)), is to be operated by Haldeman, Secretary of Commerce Maurice Stans (himself a veteran campaign fund-raiser), Senator Strom Thurmond (R-SC)‘s aide Harry Dent, and Dent’s assistant John Gleason. The list of contributors includes Chicago insurance tycoon W. Clement Stone, PepsiCo’s Donald Kendall, and Texas electronics millionaire H. Ross Perot. “Townhouse” is not the only secret campaign fund run from the White House; another is run by Nixon’s close friend millionaire Charles “Bebe” Rebozo, and features $50,000 secretly flown to Nixon’s beach home in Key Biscayne, Florida by an employee of billionaire Howard Hughes. [Reeves, 2001, pp. 153]

Entity Tags: John Gleason, Donald Kendall, Charles ‘Bebe’ Rebozo, H. Ross Perot, H.R. Haldeman, Richard M. Nixon, Harry Dent, Howard Hughes, Strom Thurmond, W. Clement Stone, Maurice Stans

Timeline Tags: Nixon and Watergate, Elections Before 2000

President Richard Nixon writes an action memo to senior aide H. R. Haldeman saying, “One of our most important projects for 1970 is to see that our major contributors funnel all their funds through us.” Haldeman and Commerce Secretary Maurice Stans set up a secret fund-raising enterprise, the “Townhouse Operation,” designed to bypass the Republican National Committee. By doing so, Nixon intends to ensure the GOP will field candidates suitably loyal to him, and reliably opposed to the GOP’s traditional Eastern Establishment base that Nixon so resents. Although George H. W. Bush is a charter member of that Eastern Establishment, Nixon likes and trusts him. Bush is “a total Nixon man,” Nixon once says. “He’ll do anything for the cause.” Bush is the main beneficiary of the slush fund, which is made up of about $106,000 in contributions from Texas GOP sources, but up to 18 other Republican Senate candidates also receive money from the fund. The Wall Street Journal will later lambast Townhouse, calling it a “dress rehearsal for the campaign finance abuses of Watergate, as well as for today’s loophole-ridden system.” [Werth, 2006, pp. 115-116]

Entity Tags: Wall Street Journal, Townhouse Operation, Republican National Committee, H.R. Haldeman, George Herbert Walker Bush, Maurice Stans, Richard M. Nixon

Timeline Tags: Nixon and Watergate, Elections Before 2000

George C. Wallace.George C. Wallace. [Source: Public domain]President Nixon is intent on knocking Alabama governor George Wallace, a segregationist Democrat, out of the 1972 elections. To that end, he has his personal lawyer, Herbert Kalmbach, ferry $100,000 in secret campaign funds (see December 1, 1969) to Alabama gubernatorial candidate Albert Brewer. Kalmbach delivers the money in the lobby of a New York City hotel, using the pseudonym “Mr. Jensen of Detroit.” Through his chief of staff H. R. Haldeman, Nixon also orders an IRS investigation of Wallace. White House aide Murray Chotiner delivers the information gleaned from the IRS probe to investigative columnist Jack Anderson, who subsequently prints the information in his syndicated columns. When Brewer forces a runoff with Wallace in the May 5 primary elections, Kalmbach has another $330,000 delivered to Brewer’s campaign. Brewer’s aide Jim Bob Solomon takes the money, in $100 bills, to Brewer via a flight from Los Angeles to Alabama; Solomon is so worried about the money being discovered in the event of a plane crash that he pins a note to his underwear saying that the money is not his, and he is delivering it on behalf of the president. Wallace, calling Brewer “the candidate of 300,000 n_ggers,” wins the runoff despite the massive cash infusions from the White House. [Reeves, 2001, pp. 228-229]

Entity Tags: Richard M. Nixon, Murray Chotiner, George C. Wallace, Albert Brewer, Jim Bob Solomon, Jack Anderson, Herbert Kalmbach, H.R. Haldeman

Timeline Tags: Nixon and Watergate, Elections Before 2000

President Nixon has an Oval Office meeting with a number of White House aides, including chief of staff H. R. Haldeman, Murray Chotiner, and Donald Rumsfeld. Part of the meeting concerns the dissemination of secret campaign funds to a variety of campaigns with candidates considered friendly to the Nixon administration (see December 1, 1969). [Reeves, 2001, pp. 245]

Entity Tags: Richard M. Nixon, Murray Chotiner, Nixon administration, Donald Rumsfeld, H.R. Haldeman

Timeline Tags: Nixon and Watergate

A conservative super PAC, American Action Network (AAN), launches a $19 million advertizing blitz against Democrats in 22 House districts. AAN was founded by former US Senator Norm Coleman (R-MN) and former Nixon administration official Fred Malek. AAN has already pumped $5 million into races featuring Republican Senate candidates. Founded in February, the group was formed, according to Malek, to “counter what the labor unions are doing on the Democratic side.” The group is split into two parts: the Action Forum, a 501(c)(3), which allows donations to be tax-deductible but limits political activities, and the Action Network, a 501 (c)(4), in which contributions are not deductible or disclosed but the group can advocate for political causes. AAN president Rob Collins says: “This Democrat-controlled Congress has already voted for higher taxes and promises next month to raise taxes on America’s families and businesses. This is simply unacceptable and something we wanted to call attention to.” AAN is part of a larger network of conservative super PACs (see March 26, 2010), including American Crossroads, that plans to spend as much as $50 million on Congressional races. AAN shares office space with American Crossroads. [Politico, 10/13/2010; New York Times, 10/17/2010; CT Mirror, 10/17/2010]
Objectionable Ads - The AAN ads airing in Connecticut draw fire after accusing Democrats Christopher Murray (D-CT) and Jim Himes (D-CT) of voting to provide free health care to illegal immigrants and Viagra to sex offenders. Murray accuses AAN of being linked to a number of Republicans in the Bush administration, and asks who is providing the money for the ads. Campaign finance law allows the donors to organizations such as AAN to remain anonymous. “This is one of the biggest TV buys this district has ever seen,” Murphy says. “And what we deserve to know is who is standing behind it. I want to know. I think that’s what the voters want as well.… These ads on TV right now, fronted by a shadowy, anonymous group of billionaire donors and multi-national corporations are a clear sign of what the difference is in this election.” An AAN spokesman refuses to discuss the finances behind the organization, saying only: “What we do is we comply with the letter of the law. That’s all we have to offer about that.” Murray calls the ad’s allegations “laughable.” Both claims have been debunked by independent fact-checking organizations, though Murray’s opponent Sam Caligiuri (R-CT) says the ad’s content is “verifiable,” and says even if the ad is questionable, Murray has told lies of his own about Caligiuri.
AAN Co-Founder Involved in Criminal Activities as Nixon Administration Official - CT Mirror notes that Malek, a Wall Street millionaire and the co-founder of AAN, was not only a member of the Nixon administration (whose crimes and excesses concerning the Watergate scandal led to a round of campaign finance reforms—see 1974 and May 11, 1976), but was also involved in a recent investment scandal. The New York Times goes further in its examination of Malek, noting that he was heavily involved in the 1972 “Townhouse operation” that raised illegal corporate cash in so-called “slush funds” and distributed the monies in key Senate races (see December 1, 1969, Early 1970, March 23, 1971, and August 18, 1974). Malek, the White House personnel chief in 1972, helped dispense illegal patronage deals to Nixon donors and served as deputy director of CREEP (the Committee to Re-Elect the President), an organization heavily involved in criminal activities. And the liberal news Web site Think Progress notes that Malek was the Nixon administration’s unofficial “Jew counter” (see July 3, 1971 and September 1971) and was part of the administration’s illegal persecution of Jews who worked in the federal government. During the Watergate investigation, Malek admitted that some of CREEP’s activities might have “bordered on the unethical.” Malek worked with American Crossroads co-founder Karl Rove during the Nixon administration, when Rove worked to re-elect Nixon as the executive director of the College Republican National Committee. Malek is a member of the Weaver Terrace Group, an informal amalgamation of Republican strategists from “independent” groups who regularly meet, trade political intelligence, and make joint fund-raising trips. The group is named after the street where Rove used to live. Former Watergate prosecutor Roger Witten says: “It creates all the appearances of dirty dealings and undue influence because our candidates are awash in funds the public is ignorant about. This is the problem that was supposedly addressed after Watergate.” [New York Times, 10/17/2010; Think Progress, 10/18/2010]

Entity Tags: Jim Himes, Christopher Murray, CT Mirror, American Crossroads, American Action Network, Fred Malek, Weaver Terrace Group, Sam Caligiuri, Committee to Re-elect the President, Think Progress (.org), Nixon administration, Rob Collins, Norm Coleman, Roger Witten, Karl C. Rove, New York Times

Timeline Tags: Civil Liberties

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