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Context of 'July 31, 1971: ITT Makes Favorable Deal with Justice Department'

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ITT logo.ITT logo. [Source: Private Line.com]International Telephone and Telegraph (ITT) acquires three smaller corporations, prompting the US Justice Department to file suits against ITT charging that the mergers violate antitrust laws. Between 1969 and April 1971, ITT officials meet with several Nixon administration officials, including Vice President Spiro Agnew; White House aides John Ehrlichman, Charles Colson, and Egil Krogh; Cabinet secretaries John Connally and Maurice Stans; Justice Department officials John Mitchell and Richard Kleindienst; and others, in attempts to persuade the administration to drop the lawsuits. [The People's Almanac, 1981]

Entity Tags: John Ehrlichman, Charles Colson, Egil Krogh, John Connally, US Department of Justice, Richard Kleindienst, John Mitchell, Maurice Stans, International Telephone and Telegraph, Nixon administration, Spiro T. Agnew

Timeline Tags: Nixon and Watergate

International Telephone and Telegraph (ITT) offers the Nixon administration $400,000 to finance the GOP’s 1972 national convention in San Diego. [The People's Almanac, 1981] President Nixon wanted San Diego as the site of the convention, but the San Diego city government has no intention of spending lavish amounts of money subsidizing a convention it does not need. The ITT contribution, privately arranged by White House and GOP officials, is key to having San Diego as the site of the convention. In early July, the Republican National Committee announces San Diego as the convention site; eight days later, the Justice Department announces that it is dropping its antitrust suit against ITT (see July 31, 1971). Shortly thereafter, Richard McLaren, the head of the Justice Department’s Antitrust Division and an enthusiastic trustbuster whose atypical decision to let ITT off the hook confuses many observers, abruptly quits the department; within days, McLaren lands a federal judgeship without benefit of Senate hearings. Syndicated columnist Jack Anderson believes the whole deal is fishy, and will write a December 9, 1971 column to that effect, but he will not learn the entire truth behind the GOP-ITT deal until months later (see February 22, 1972). [Anderson, 1999, pp. 194-200]

Entity Tags: Richard M. Nixon, International Telephone and Telegraph, Jack Anderson, Nixon administration, US Department of Justice, Republican National Committee, Richard McLaren

Timeline Tags: Nixon and Watergate, Elections Before 2000

President Nixon tells his aides H. R. Haldeman and John Ehrlichman that they will need to dun even more money out of International Telephone and Telegraph, one of his re-election campaign’s largest and most secretive donors (see 1969). ITT is embroiled in an antitrust lawsuit, and Nixon is working to get the suit settled in favor of ITT in return for secret campaign donations (see July 31, 1971). Nixon says that Deputy Attorney General Richard Kleindienst “has the ITT thing settled,” adding, “He cut a deal with ITT.” Nixon also orders that the Justice Department antitrust lawyer who is pursuing the prosecution of ITT, Richard McLaren, be given his marching orders: “I want something clearly understood, and, if it’s not understood, McLaren’s ass is to be out of there within one hour. The ITT thing—stay the hell out of it. Is that clear? That’s an order.… I do not want McLaren to run around prosecuting people. raising hell about conglomerates, stirring things up… I don’t like the son of a b_tch.” McLaren will later drop the prosecution in return for a federal judgeship (see May-July 1971). [Reeves, 2001, pp. 324]

Entity Tags: US Department of Justice, H.R. Haldeman, International Telephone and Telegraph, John Ehrlichman, Richard Kleindienst, Richard McLaren, Richard M. Nixon

Timeline Tags: Nixon and Watergate, Elections Before 2000

The Justice Department reaches a deal with International Telephone and Telegraph (ITT) to drop the government’s antitrust lawsuit against the corporation (see 1969). The “consent decree” allows ITT to keep some of the firms with which it has attempted to merge. Perhaps coincidentally, ITT is allowed to merge with the firms that are relatively profitable, and dispose of the companies that will lose money for the corporation (see May 13, 1971). [The People's Almanac, 1981]

Entity Tags: International Telephone and Telegraph, US Department of Justice

Timeline Tags: Nixon and Watergate

Syndicated columnist Jack Anderson receives a memo written by International Telephone and Telegraph (ITT) lobbyist Dita Beard; the memo goes a long way towards proving that in return for hefty campaign contributions to the GOP, the Justice Department dropped its antitrust suit against the corporation (see 1969 and July 31, 1971). The memo, written on June 25, 1971 by Beard to ITT vice president Bill Merriam, is entitled “Subject: San Diego Convention.” Beard indicated her distress at the possibility of someone leaking the fact that ITT had quietly contributed $400,000 to the GOP for its 1972 convention in San Diego. Two of the few who know of the contribution, Beard wrote, were President Nixon and Attorney General John Mitchell. She asked whether the $400,000 should be donated in cash or in services, then wrote: “I am convinced because of several conversations with Louie re Mitchell that our noble commitment has gone a long way toward our negotiations on the mergers eventually coming out as Hal wanted them. Certainly the president has told Mitchell to see that things are working out fairly. It is still only McLaren’s mickey-mouse that we are suffering.” Anderson doesn’t know who “Louie” is, but he is sure “Hal” is Harold Geneen, ITT’s president. ITT had announced a $100,000 contribution, but the real amount is four times that. One of Anderson’s aides, Brit Hume, interviews Beard, and during a night of heavy drinking and Beard’s emotional outbursts, finds out that in May 1971, Beard had gone to a party hosted by Kentucky governor Louie Nunn, the “Louie” of the memo. Mitchell was at the party, and Beard was there to prime Mitchell as to what exactly ITT wants in return for its contribution and its assurance that it can secure San Diego as the GOP’s convention site. According to Beard, the deal was hatched between herself and Mitchell at Nunn’s party. Anderson quickly publishes a column based on the memo that causes a tremendous stir in Washington and the press. [Anderson, 1999, pp. 194-200] (In his book The Secret Man, Bob Woodward will give the date for Anderson’s column revealing the Beard memo as February 19. This is apparently a typographical error.) [Woodward, 2005, pp. 37] The White House will successfully pressure Beard to disavow the memo (see Mid-Late March, 1972).

Entity Tags: Jack Anderson, Dita Beard, Brit Hume, Bob Woodward, Bill Merriam, Federal Bureau of Investigation, International Telephone and Telegraph, Richard M. Nixon, Harold Geneen, John Mitchell, Louie B. Nunn

Timeline Tags: Nixon and Watergate

After a tirade about how humiliated and angry he was when he was investigated and audited by the IRS, President Nixon demands that the same kinds of investigations be performed on the Democratic presidential candidate, George McGovern, and his campaign staff and financiers. “What in the name of God are we doing on this one?” he asks. “What are we doing about the financial contributors?… Are we looking over the financial contributors to the Democratic National Committee? Are we running their income tax returns? Is the Justice Department checking to see whether or not there are any antitrust suits (see July 31, 1971)?… We have all this power and we aren’t using it. Now what the Christ is the matter?” Nixon particularly wants the tax returns of businessman Henry Kimmelman, one of the largest financial backers of the McGovern campaign, but the new Secretary of the Treasury, George Shultz, is reluctant to use the IRS for political purposes. Nixon cannot understand Shultz’s hesitation. “What’s he trying to do, say that we can’t play politics with IRS?… Just tell George he should do it.” Nixon has Kimmelman’s tax returns within three days. By the same time, IRS audits of McGovern’s campaign and senior officials are well underway. [Reeves, 2001, pp. 519-521]

Entity Tags: George Shultz, Democratic National Committee, George S. McGovern, Richard M. Nixon, Henry Kimmelman, Internal Revenue Service, US Department of Justice

Timeline Tags: Nixon and Watergate

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