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Profile: Philip S. Hughes

Philip S. Hughes was a participant or observer in the following events:

The Washington Post reports that a $25,000 cashier’s check, apparently earmarked for the campaign to re-elect President Nixon, found its way into the Miami bank account of one of the Watergate burglars, Bernard Barker (see 2:30 a.m.June 17, 1972). (Gerald R. Ford Library and Museum 7/3/2007)
Origin of Check - The check, drawn on a Boca Raton, Florida bank, was made out to Kenneth H. Dahlberg, the finance manager for the Committee to Re-elect the President (CREEP). Dahlberg says that in early April, he gave the check to “the treasurer of the Committee [Hugh Sloan, who has since quit the committee and is cooperating with the FBI investigation] or to Maurice Stans himself.” Stans, formerly Nixon’s secretary of commerce, is CREEP’s finance chief. The money is made up of “[c]ontributions I collected in my role as Midwest finance chairman,” Dahlberg explains. “In the process of fund-raising I had accumulated some cash… so I recall making a cash deposit while I was in Florida and getting a cashier’s check made out to myself. I didn’t want to carry all that cash into Washington.”
Watergate Connections - Barker withdrew much of the money from the same Boca Raton bank account, in $100 bills. 53 of those bills were found on the five Watergate burglars after their arrest. Clark MacGregor, who replaced former Attorney General John Mitchell as the head of CREEP (see July 1, 1972), says he knows nothing about the check or the money found on Barker and the other burglars: “[T]hese events took place before I came aboard. Mitchell and Stans would presumably know.” The Post also learns that another $89,000 in four separate checks were deposited in Barker’s Miami bank account in May (see June 23, 1972). The checks were originally made out to Mexican lawyer Manuel Ogarrio Daguerre, on an account at Mexico’s Banco Internacional. While looking over the story before publication, Post editor Barry Sussman says: “We’ve never had a story like this. Just never.” (Bernstein and Woodward 8/1/1972; Bernstein and Woodward 1974, pp. 43-44)
GAO Will Investigate Nixon Campaign Finances - Stans’s secretary says her boss cannot comment on the story because he is “agoniz[ing] over the confusing circumstances” and does not want to say anything that might compromise his integrity. Philip S. Hughes, the director of the Federal Elections Division of the General Accounting Office (GAO, the investigative arm of Congress), says that the story reveals “for the first time [that] the bugging incident was related to the campaign finance law.… There’s nothing in Maury [Stans]‘s reports showing anything like that Dahlberg check.” Hughes says his office intends to fully audit the Nixon campaign finances. (Bernstein and Woodward 1974, pp. 45-47)

The General Accounting Office (GAO) completes its preliminary report on financial irregularities inside the Nixon re-election campaign (see August 1-2, 1972). According to the report, the campaign has mishandled over $500,000 in campaign contributions, including an apparently illegal “slush fund” of over $100,000—perhaps more than $350,000. The report lists 11 “apparent and possible violations” of the new campaign finance law (see Before April 7, 1972), and refers the matter to the Justice Department for possible prosecution. The GAO agrees to delay its public issuance of its report after the committee’s finance chairman, Maurice Stans, asks GAO chief investigator Philip Hughes to come to Miami, where the Republican National Convention is in full swing, to receive more information. Another GAO investigator tells Washington Post reporter Bob Woodward that the Nixon campaign does not want the report to be made public on the same day that Richard Nixon accepts the Republican nomination for president. (Bernstein and Woodward 1974, pp. 48-56)


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