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Context of 'September 18, 1972: Former CREEP Treasurer Says White House, Campaign Committee Essentially One and the Same'

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Frank Wills, the security guard who discovers the taped doors and alerts the DC police.Frank Wills, the security guard who discovers the taped doors and alerts the DC police. [Source: Bettmann / Corbis]Five burglars (see June 17, 1972) are arrested at 2:30 a.m. while breaking in to the Democratic National Committee (DNC) Headquarters offices in Washington’s Watergate hotel and office complex; the DNC occupies the entire sixth floor. (Lewis 6/18/1972; Gerald R. Ford Library and Museum 7/3/2007)
Discovery - They are surprised at gunpoint by three plainclothes officers of the DC Metropolitan Police. Two ceiling panels have been removed from the secretary’s office, which is adjacent to that of DNC chairman Lawrence O’Brien. It is possible to place a surveillance device above those panels that could monitor O’Brien’s office. The five suspects, all wearing surgical gloves, have among them two sophisticated voice-activated surveillance devices that can monitor conversations and telephone calls alike; lock-picks, door jimmies, and an assortment of burglary tools; and $2,300 in cash, most of it in $100 bills in sequence. They also have a walkie-talkie, a shortwave receiver tuned to the police band, 40 rolls of unexposed film, two 35mm cameras, and three pen-sized tear gas guns. Near to where the men are captured is a file cabinet with two open drawers; a DNC source speculates that the men might have been preparing to photograph the contents of the file drawers.
Guard Noticed Taped Door - The arrests take place after a Watergate security guard, Frank Wills, notices a door connecting a stairwell with the hotel’s basement garage has been taped so it will not lock; the guard removes the tape, but when he checks ten minutes later and finds the lock taped once again, the guard calls the police. The police find that all of the stairwell doors leading from the basement to the sixth floor have been similarly taped to prevent them from locking. The door leading from the stairwell to the DNC offices had been jimmied. During a search of the offices, one of the burglars leaps from behind a desk and surrenders. (Lewis 6/18/1972) The FBI agents responding to the burglary are initially told that the burglars may have been attempting to plant a bomb in the offices. The “bomb” turns out to be surveillance equipment. (O.T. Jacobson 7/5/1974 pdf file)
Last Mission for Martinez - One of the burglars, Cuban emigre and CIA agent Eugenio Martinez, will recall the burglary. They have already successfully burglarized a psychiatrist’s office in search of incriminating material on Pentagon Papers leaker Daniel Ellsberg (see September 9, 1971), and successfully bugged the DNC offices less than a month previously (see May 27-28, 1972), but Martinez is increasingly ill at ease over the poor planning and amateurish behavior of his colleagues (see Mid-June 1972). This will be his last operation, he has decided. Team leader E. Howard Hunt, whom Martinez calls by his old code name “Eduardo,” is obviously intrigued by the material secured from the previous burglary, and wants to go through the offices a second time to find more. Martinez is dismayed to find that Hunt has two operations planned for the evening, one for the DNC and one for the campaign offices of Democratic candidate George McGovern. Former CIA agent and current Nixon campaign security official James McCord (see June 19, 1972), the electronics expert of the team, is equally uncomfortable with the rushed, almost impromptu plan. Hunt takes all of the burglars’ identification and puts it in a briefcase. He gives another burglar, Frank Sturgis, his phony “Edward J. Hamilton” ID from his CIA days, and gives each burglar $200 in cash to bribe their way out of trouble. Interestingly, Hunt tells the burglars to keep the keys to their hotel rooms. Martinez later writes: “I don’t know why. Even today, I don’t know. Remember, I was told in advance not to ask about those things.”
Taping the Doors - McCord goes into the Watergage office complex, signs in, and begins taping the doors to the stairwells from the eighth floor all the way to the garage. After waiting for everyone to leave the offices, the team prepares to enter. Gonzalez and Sturgis note that the tape to the basement garage has been removed. Martinez believes the operation will be aborted, but McCord disagrees; he convinces Hunt and the other team leader, White House aide G. Gordon Liddy, to continue. It is McCord’s responsibility to remove the tape once the burglars are inside, but he fails to do so. The team is well into the DNC offices when the police burst in. “There was no way out,” Martinez will recall. “We were caught.” Barker is able to surreptitiously advise Hunt, who is still in the hotel, that they have been discovered. Martinez will later wonder if the entire second burglary might have been “a set-up or something like that because it was so easy the first time. We all had that feeling.” The police quickly find the burglars’ hotel keys and then the briefcase containing their identification. As they are being arrested, McCord, who rarely speaks and then not above a whisper, takes charge of the situation. He orders everyone to keep their mouths shut. “Don’t give your names,” he warns. “Nothing. I know people. Don’t worry, someone will come and everything will be all right. This thing will be solved.” (Martinez and Barker 10/1974; Spartacus Schoolnet 8/7/2007)
'Third-Rate Burglary' - White House press secretary Ron Ziegler will respond to allegations that the White House and the Nixon presidential campaign might have been involved in the Watergate burglary by calling it a “third-rate burglary attempt,” and warning that “certain elements may try to stretch this beyond what it is.” (Stern and Johnson 5/1/1973) The Washington Post chooses, for the moment, to cover it as a local burglary and nothing more; managing editor Howard Simons says that it could be nothing more than a crime committed by “crazy Cubans.” (Bernstein and Woodward 1974, pp. 19)
CIA Operation? - In the weeks and months to come, speculation will arise as to the role of the CIA in the burglary. The Nixon White House will attempt to pin the blame for the Watergate conspiracy on the CIA, an attempt forestalled by McCord (see March 19-23, 1973). In a 1974 book on his involvement in the conspiracy, McCord will write: “The Watergate operation was not a CIA operation. The Cubans may have been misled by others into believing that it was a CIA operation. I know for a fact that it was not.” Another author, Carl Oglesby, will claim otherwise, saying that the burglary is a CIA plot against Nixon. Former CIA officer Miles Copeland will claim that McCord led the burglars into a trap. Journalist Andrew St. George will claim that CIA Director Richard Helms knew of the break-in before it occurred, a viewpoint supported by Martha Mitchell, the wife of Nixon campaign director John Mitchell, who will tell St. George that McCord is a “double agent” whose deliberate blunders led to the arrest of the burglars. No solid evidence of CIA involvement in the Watergate conspiracy has so far been revealed. (Spartacus Schoolnet 8/2007)

Watergate burglar E. Howard Hunt emerges from hiding (see June 18, 1972). In the following days, Washington reporter Carl Bernstein learns that Hunt’s lawyer William O. Bittman had received $25,000 in cash to represent Hunt. Bernstein learns this from a legal colleague of Bittman’s, who is disturbed that such a well-respected attorney as Bittman—a former assistant attorney general in the Justice Department—might have taken illicit monies. Bittman’s colleague also tells Bernstein that the Committee to Re-elect the President (CREEP) has earmarked at least $100,000 for something committee officials call “Convention Security.” Bittman refuses to confirm or deny the transaction. (Bernstein and Woodward 1974, pp. 34) According to later testimony by senior campaign aide Frederick LaRue, LaRue gave $210,000 in CREEP slush fund money to Bittman for Bittman to distribute to the seven defendants. LaRue will claim he gave Bittman the money on the orders of White House counsel John Dean. (O.T. Jacobson 7/5/1974 pdf file)

Washington Post reporters Carl Bernstein and Bob Woodward have little luck talking to anyone who works for the Committee to Re-elect the President (CREEP). Both reporters spend several evenings visiting and telephoning CREEP employees at their homes. The first person Bernstein speaks to turns him away, shuddering. He has to leave “before they see you,” she says. “Please leave me alone. I know you’re only trying to do your job, but you don’t realize the pressure we’re under.” Another bursts into tears as she turns him away. “I want to help,” she says, but “God, it’s all so awful.” A third begs: “Please don’t call me on the telephone—God, especially not at work, but not here either. Nobody knows what they’ll do. They are desperate.”
Sally Harmony - One thing they do find out is the level of knowledge possessed by Sally Harmony, G. Gordon Liddy’s secretary at CREEP. Harmony had not been truthful or forthcoming in her recent testimony before the FBI and the grand jury investigating the Watergate break-in (see 2:30 a.m.June 17, 1972). This ties in with another Post reporter’s tip to Bernstein that Harmony lied to protect both her boss and CREEP deputy director Jeb Magruder. A Justice Department attorney confirms the fact that prosecutors believe Harmony was not truthful in her testimony, but they lack the evidence to charge her with perjury.
Destruction of Records - Some CREEP employees guardedly tell Bernstein and Woodward about large-scale destruction of records in the days after the Watergate burglary, but they know no specifics. Those who would know were interviewed by FBI investigators, but were interviewed at CREEP headquarters, in the presence of either a CREEP lawyer or Robert Mardian, the political coordinator of the committee and a former assistant attorney general. According to the employees Bernstein and Woodward interview, Mardian never directly told anyone to lie, but told them not to volunteer anything and evade whenever possible.
Pieces of Information - They garner other shreds of information:
bullet John Mitchell, who resigned from the directorship of CREEP (see July 1, 1972), is still heavily involved in the organization, appearing three times a week “telling Fred LaRue and Bob Mardian what to do.”
bullet Magruder himself is terrified, acting “like the roof is going to fall down on him tomorrow.”
bullet CREEP director Clark MacGregor wanted to write a report detailing his knowledge of campaign finance irregularities, “but the White House said no.”
bullet Prosecutors had asked employees if they knew of other surveillance operations besides the one at Democratic headquarters.
bullet FBI officials had asked about documents being shredded.
bullet “I heard from somebody in finance that if they [the FBI] ever got a look at the books it would be all over, so they burned ‘em.”
bullet Liddy “would never talk” and Harmony talked about her “bad memory.”
bullet “From what I hear they were spying on everybody, following them around, the whole bit.”
The obvious terror of the people they interview unsettles the two reporters. (Bernstein and Woodward 1974, pp. 58-61)

Washington Post reporter Carl Bernstein interviews a reluctant source, a bookkeeper for the Committee to Re-elect the President (CREEP). In All the President’s Men (see June 15, 1974), Bernstein and co-author Bob Woodward merely identify her as “The Bookkeeper” (Bernstein and Woodward 1974, pp. 63-68) , but she will later be identified as Judy Hoback. Hoback tries to persuade Bernstein to leave her apartment, but Hoback’s sister, who is also present, seems supportive of Bernstein, and the reporter tries to find ways to stay and winkle information out of Hoback. But Hoback seems willing to play along with Bernstein to an extent. She will not provide damaging information against her boss, Maurice Stans, but otherwise she says she wants the truth to come out. She says the top officials at CREEP have decided to try to pin the blame for everything on former CREEP treasurer Hugh Sloan, for whom she feels great sympathy. She confirms that documents have been destroyed to prevent investigators from finding the truth behind the financial improprieties, and confirms the existence of a secret campaign “slush fund,” saying that CREEP deputy director Jeb Magruder was one official in charge of managing the fund. In a subsequent interview conducted by both reporters, Hoback confirms that G. Gordon Liddy received cash from the fund, as well as CREEP scheduling director Bart Porter. She confirms that several CREEP officials, including personnel director Robert Odle, lied to the investigating grand jury. Like so many other CREEP employees, Hoback has no faith that the FBI is conducting any sort of impartial investigation: “My feeling is that the FBI turns the information in and it goes upstairs,” presumably to the White House. Although Hoback’s information is more tantalizing than useful at the moment, Bernstein and Woodward will use her statements as confirmation for other, subsequent allegations. (Bernstein and Woodward 1974; Woodward 2005, pp. 228)

Hugh Sloan.Hugh Sloan. [Source: Washington Post]The former treasurer for the Campaign to Re-elect the President (CREEP), Hugh Sloan, tells Washington Post reporter Carl Bernstein that the situation with CREEP’s finances is far worse than the Post has reported (see September 14-17, 1972). “That’s why I left, because I suspected the worst,” he says. He refuses to give specifics, citing the continuing FBI investigation and his lawyer’s advice to remain silent. He does confirm that CREEP officials had instructed employees to be evasive when interviewed by the FBI (see August, 1972), and that the committee’s handling of the FBI investigation was managed by CREEP officials Robert Mardian and Frederick LaRue. He also confirms that former CREEP director John Mitchell knew of the illegal campaign “slush fund” (see September 29, 1972). “Mitchell had to know of the funds,” Sloan says. “You don’t just give out that kind of money without the head of the campaign knowing what it’s going for, especially when his people are getting the cash.” Mitchell, LaRue, and Mardian are the three directly responsible for managing the fund, Sloan believes, and are responsible for ordering the destruction of financial records after the Watergate burglary (see 2:30 a.m.June 17, 1972). The previously reported “convention security” fund (see July 7, 1972) and the campaign “slush fund” are one and the same, Sloan confirms. Sloan acknowledges making payouts from the fund, but will not reveal who authorized him to do so. Perhaps most interestingly, Sloan says that the general perception of the Nixon administration and CREEP as two separate, self-contained entities is wrong, that everything CREEP does is managed by senior White House officials. Coming away from the meeting, Bernstein and his colleague Bob Woodward are now sure that the Watergate conspiracy does not end in CREEP, but extends into the White House itself. (Bernstein and Woodward 1974, pp. 79-86)

Carl Bernstein, Katherine Graham, and Bob Woodward discuss the newspaper’s Watergate coverage.Carl Bernstein, Katherine Graham, and Bob Woodward discuss the newspaper’s Watergate coverage. [Source: Southern Methodist University]The Washington Post reports that John Mitchell, the former attorney general and former head of the Committee to Re-elect the President (CREEP), personally controlled a secret Republican “slush fund” used to finance widespread intelligence-gathering operations against the Democratic Party (see Early 1970). (Gerald R. Ford Library and Museum 7/3/2007) Mitchell had authorized expenditures from the fund beginning in the spring of 1971, while he was attorney general. (Bernstein and Woodward 1974, pp. 98-103) The fund was originally conceived by White House aide G. Gordon Liddy, who in 1972 came up with what he called “Operation Gemstone,” a $1 million plan to carry out a series of covert and often illegal actions against President Nixon’s political enemies (see January 29, 1972). Mitchell scaled back the budget to $250,000 (at first) to launch a scaled-down version of Gemstone. (Spartacus Schoolnet 8/2007) Mitchell personally approved a number of withdrawals from the fund, which swelled in size from around $350,000 to $700,000 at any given time. Four others besides Mitchell were later authorized to approve payments from the secret fund. One is Maurice Stans, the former commerce secretary who is now finance chairman of CREEP; the fund was kept in a safe in Stans’s office. A second is Jeb Magruder, the former manager of CREEP who is now deputy director of the organization. A third is a senior White House official involved in the campaign, and the other is a campaign aide based outside of Washington. (Bernstein and Woodward 9/29/1972) (Washington Post reporters Carl Bernstein and Bob Woodward are all but convinced that the “senior White House official” is H. R. Haldeman, but they cannot get anyone to go on record to confirm their assumption, and therefore do not print Haldeman’s name in the story.) (Bernstein and Woodward 1974, pp. 100)
Mitchell's Explosive Reaction - Mitchell is outraged by the allegations. When Bernstein calls to confirm the story, he explodes: “Jesus!… All that crap, you’re putting it in the paper? It’s all been denied. Katie Graham [Katherine Graham, publisher of the Post] is gonna get caught in a big fat wringer if that’s published. Good Christ! That’s the most sickening thing I’ve ever heard.” (The actual quote, which Post executive editor Ben Bradlee cleans up for public consumption, is, “Katie Graham’s gonna get her t_t caught in a big fat wringer if that’s published.”) (Bernstein and Woodward 9/29/1972; Bernstein and Woodward 1974, pp. 105; Woodward 2005, pp. 72) Mitchell continues: “You fellows got a great ball game going. As soon as you’re through paying Williams [Edward Bennett Williams, whose law firm represents the Democratic Party, as well as the Post], we’re going to do a story on all of you.” When Bradlee hears of Mitchell’s reaction, he asks if Mitchell was drunk. When Bernstein replies that he doesn’t believe so, and Bradlee confirms that Bernstein properly identified himself as a reporter, Bradlee tells Bernstein to print Mitchell’s reaction. CREEP spokesman Powell Moore tries to persuade Bradlee not to run the Mitchell quote, saying that it wasn’t fair to run the quote because Bernstein woke Mitchell up, and therefore Mitchell’s “composure [was] not guarded.” Bradlee refuses to delete the quote. (Bernstein and Woodward 9/29/1972; Bernstein and Woodward 1974, pp. 105-108)
CREEP Denials - Moore later states that neither Mitchell or Stans knows anything about “any disbursement from an alleged fund as described by the Post and neither of them controlled any committee expenditures while serving as government officials.” One of the planners of the Watergate burglary (see 2:30 a.m.June 17, 1972), G. Gordon Liddy, withdrew well over $50,000 from the fund. Although records of the fund’s disbursements have been destroyed, other sources indicate that some of the other recipients of the fund include Magruder; Herbert L. “Bart” Porter, CREEP’s scheduling director; several White House officials; and other unidentified persons not officially part of either CREEP or the Nixon administration. Magruder denies ever receiving any such funds. The General Accounting Office has said that such a fund is a “possible and apparent” violation of a new, stricter campaign finance disclosure law. (Bernstein and Woodward 9/29/1972)


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