1973 Watergate Hearings; 1973-11-15; Part 1 of 3

as bell it's nice and in the senate of the united states a resolution to establish a select committee of the senate to conduct an investigation and study study have a collective mission with others in the presidential election of nineteen seventy two when the campaign activity i was approached by mr herbert of income that nasa to arrange for a competition one hundred thousand dollars to the committee to reelect president i was told the contributions of this allow would be regarded as in a special class and so i knew that it must have come back towards the president's personal consultation was

counseled to americans principal competitor i decided that some affirmative response was necessary november of fifty tonight on a bridge to videotape coverage of today's hearings on the senate select committee on presidential campaign activities here is anti correspondent jim lehrer there were more intriguing tales of wandering corporate money in foreign lands today as the senate watergate committee ended its way of looking at how american corporations illegally met their contributions quotas for the nixon campaign while the details of the transactions involving rap airways american airlines in the goodyear tire and rubber company where again fascinating the real guts of today's session centered on why these businessman a great

divide the law on president nixon's by fierce at american airlines years later here that this company would be hurt by the administration if it did not about the money but the reaction of the president was in the best interest of the country said goodyear said man wrestling out and speaking of the president mr nixon is still declining to meet with senate watergate committee although he has not yet formally answer the committee's in the trash in asset however they would be willing to meet privately with the committee's leaders senators urban and baker the uk was among those asking senator evan about this as a senator was on his way out of the hearing room this afternoon the senate given up on the president and on an optimistic person there provided you do they come forward so that they say should do lowe's a common purpose for the president just ignore you i don't think so i think the president made these memoranda available three months ago

literally knew my community as you might be you're jogging and action was still hope and that you make the casbah i don't think any indication that he is the uk will be back at the close of tonight's broadcast to discuss today's testimony with bob jackson was an investigative reporter for the los angeles times here in washington but now let's go to a menu for the evening and the first time that their ways regional vice president in panama law explains that he

laundered forty thousand dollars of funds through panama company and then returned and catch the radical facials in dallas texas a financial official the company that identifies records of the transaction including personal checks from corporate executives which were later used to cover the contribution to the nixon reelection campaign also not our tours later former chief executive officer of american airlines service company used to lebanon company swiss bank account and under fifty five thousand dollars that was contributed to the nixon campaign speller said the solicitation was made by grover comeback president nixon's personal attorney and lawyer for americans possible competitor united airlines and the second hours later it spans all a statement that he agreed to make the contribution of fear that his company would be at a competitive disadvantage it didn't you agree with senator leahy that his company not get in and that if you didn't come through there was then praised by the senators from being the first corporation executive to voluntarily join the special prosecutor and the public or his company head down and the third and final hour

goodyear board chairman russell yan says his company channel forty thousand dollars in cash from a swiss bank for president nixon's re election campaign the un says he was asked about russian intervention five former commerce secretary murray stands and he says the gift was not made with a view to obtaining government favors madison avenue and called to order it's b it's bad it's

usually of things like an annual presidential campaign activities should be provable go by the city council he's a german national please i ran it is incorporated go to place is about it is that the reagan said today that israel is twenty third nineteen seventy three and that it had made a voluntary disclosure officer special prosecutor archibald cox they're sending contributions made in nineteen seventy two to the finance committee to reelect president

contributions were made on two occasions to the committee totally fifty thousand dollars the first contribution to me about ten thousand dollars was contributed out of personal funds according to lawrence chairman atlanta and another officer shannon of the committee who see the first contribution solicitous of special for the constitution and a new sponsor the solicitation money to made available in the amount of forty thousand dollars corporate funds certain offices are granted another individuals identified themselves as opponents of the forty thousand dollar contribution and these individuals reimbursed with the total amount of the contribution a spokesman also stated that no business deductions have been taken for the proper payment and a proper payment that had no reported revenues or net income veterans

of the civil aeronautics board later date we do both that's right is your business that's right one is the amount the monthly ticket sales in animal how much of all half a million dollars and once an immigrant united states is using animal i guess and in a

way has a bubble but i mean i would not think that the money or used it over you own a company called camp that company's cia and the fha is that i do and what is the major league is his account of that initial about their private enterprises coming to rise from a company i would do business and women in years while i wrote the minions those that have anything to do with that when you open it we've contacted one is just our listeners this out there by sebastian a chat about the

american legion you had a conversation with him in a conversation have a question is the west anyway i copping to raise rates that you tell you how much you want to raise it was a miserable forty thousand dollars was anything else of significance that in the conversation no sir i have a company like helping wisconsin and did you have a little conversation with itself that is after three days after he called back and he told me that you and ed page which it went on and on the name of campo a legitimate about him and what happened after that check for forty thousand dollars

you see them do so this point of view and i asked if that is a copy of the check that you see and what did you do with the forty thousand dollars in cash well i can't to check that i have been wanting to my house rejected and it's a thriller and i was the forty thousand dollars or less and that you placed others in time one was a soda jerk fashion well i really think that's a check their houses and to the checkout and more twenty nine nineteen seventy two years did you take the four thousand dollars and delivered to the buses out a statement yesterday that second or tied for ventures like a button whenever you have a

conversation with mr sal concerning any repayment of his money in any formal raising any cash none of that when the message conversation about police after he called me up and said i have to raise money back at the company it was because of the stocks of course money did you see these amazing that is not what did you do with that when it made to one of my supervisor put it accompanies so much did the supervisor so that gives us a piece of

instructions my second word that work to make government work and dozens of other acts whether the saudis think it's i'm a reporter doesn't it gets on bees have a chance because if it would have to be used to me what is the normal procedure with respect it's a console live on earth any animal that legacy is that when we get there we saw up we make is that helpful ideas have to be similar to that what happened with that you describe what you mean you know it wasn't allowing education you ask

for it what happened that made that impossible iii last month that it was prominently content to buy some tickets and they let me know that have enough cash and then the kitchen what did you do with me cash and checks that he's oversees were like this one in ordinary houses has been before and then when i have a few questions i was from an interview that i was in venice when the mr sullivan reports so the end of december nineteen seventy two how much money had degenerated by ticket sales in this fashion does december of nineteen seventy two a lot of money

having to pay i believe what about them and then the last thousand for it which i do you deliver the entire twenty seven thousand dollars to use to sell just wanted to have a conversation with mr so at the end of december the estimate that they're getting pressure from right now we have two thousand the company had no reason to try to see if i can get that the animal world that i taught in china like and is absolutely right about a somali follow my own business if you want to think about their editors thousand was thirteen thousand which i did and then i believe that we just intervene the reason that money with the

reputation documents rather than the first two pages of that is that it reflects and among other things the checks that you deliberately mistress out as well including the thirteen thousand dollars check that you have organized did you get repaid in thirty thousand dollars that you've are you sure that that they need that and in the same late seventies and what did you do with the money then but when i did my money fifteen thousand and you recover the entire thirteen thousand and approximately when did you receive the final ballots on the thirteen thousand dollars i don't go up and then the us will of all the money and what it was in nineteen seventy three the

recession has elected us and during this entire period and you know the purpose of the forty thousand dollars what the forty thousand was good news for karen well this is these instances i have heard the television has a few fighters are the best eighties when the dollar the testimony that subsequently

request raises money at no time have any idea as to what the monitors want to use for why mr soule people of wrath did you sell tickets and he would sell any other tickets to avoid any procedures to make sure the receiving action not checked yes and what was it and my question is why was that unusual for you having done this in the african officials there's so i think this was something unusual view raises money in cash and bring it to your eyes now

i take it that you have no knowledge whatsoever as many conversations that may have occurred to anyone in the community like the president did you have to be repaid he continues on that you saw there i mean that when the boat that was what the big events that we have so it usually says banking regulators the question

the problem is the last question what you knew there was something irregular was that tickets the receiver mr solomon is receiving sell it questions thank you

geneva since march nineteen seventy three so when you are asked those questions and did you know that an examination and attend to trace the various injuries that went into it was a surprise actually i did this runs an art director attention to exhibit one

tablet or you listen and you identified as a tabloid news the techniques we can prevent that the following is a czech support which is used in the ordinary course of business to support requests for this person farms in this particular case of say a charge conceivable the third piece of capers parishioner office box with a question and it can't happen among fourteen thousand dollars isn't it both sides agree so the defense had wanted to reflect an

advance for expenses and service to camp that companies that correct that's correct is that an unusual type of transaction when it's your experience now that this at a large corporation and it is ordinary for rap on occasion to advance money for services and expenses juvenile detention center katherine ellison cash accounting report which is used by iran and to require the receipt of cash in this particular case at one thousand six hundred and seventy nine dollars a second second city is a catcher's distribution collection of forty thousand dollars catch is that a series of injuries a lot about

the series of entries of odd amounts there is one single character can receive dallas they reflect their deposits of cash and checks and ninety thousand two hundred and three thirty eight with very support for jackson is the second third series injuries reflecting receive money but rather an unusual documents what's your experience it would be us is unwilling to be unusual the usual to receive from account to liquidate account receivable series of checks are not a mouse be able to breath of international by different parties and regulations

our detailed account now says reflects on transactions which are major counts in this particular case to documents are i'm a show and they got out what major change the commercial can't receivable the other showing a credit to count already thirteen subsequent to that forty thousand dollars twenty years old finally realized it's purchased with that is

needed cash accounts he was created a right to receive that comes together to get power receivable account credit accounts twenty ones sixteen which is transportation desiree has a home cash accounting org which shows who seek a forty thousand dollars in cash credit and twenty one six eleven hundred thousand times and that is the source of those funds so as a sponsor jakes from the officers and others in varying amounts of killing forty thousand dollars unlike recommend that point during the gravy that was repaid by its executives and forty thousand dollars of spending out of corporate funds that's correct your knowledge was reimbursed who

sought from the finance committee to re elect president mr robson yeah you can do so really could you explain why it is that one easily release press release of that if there were no income tax consequences flowing from the transactions that you describe well it is that firstly that none of the money amongst never reached the income statement which would be required for the transactions to have income tax that only increased or balance sheet and prison word balance sheet in effect today's political significance transportation revenue to the interesting ones july thirty first the other is december thirty first we're on a passenger transportation accounts reconcile five

months subsequent to balance sheet date says that balance sheet amount as of july thirty first fully reconciled december thirty first and show the progression of my particular case july thirty first nineteen seventy three says that no i just was requiring hundred passenger transportation not just and therefore was making progress in german i ask that they won't be receiving visitors it wasn't

i suspect the intent well you really that is an invoice which purports to indicate that forty thousand dollars was paid by tv cameras that company for expenses and services and in fact that's not true no sir welcome to you there were no expenses and services for which can that company would have been eighty five there were not now if this sale and regular tickets

and use of those tickets but that occurred in december i think it would have been tax consequences pursuant to the july thirty one counties have a parrot and significant local parking july thirty first nineteen seventy the nagin recognized them and adjusting and december thirty first nineteen seventy as it turns out how our best presentation that in fact they said that recognition as you put it would reduce tax cuts no further question is an underlying sentiment is what is the fiscal year when his engine the fasting is a challenging year terminates december thirty first of each year out what to go shaking the conversations you have in the

house when they're used to convert to ones it's all one lime with respect to the us what conversations with respect and it is making it that twenty ones century yeah they did that seven thirty one seventy three and make you an account number two won six o one one and energy for the senate seat no instructions of that time abdicated any specific account from my examination i determined that the countless would be deficient

should the transaction continue in the way that it happened so far only twenty one sixty eleventh and that that was the appropriate account credit for the forty thousand dollars i was running a company or invasion sixty is a good workout specified hustler not supportive is running out now and that number for the other accounts and this was written by me it's been there the document that you're looking at is the cash accounting ortiz for the receipt of funds from a number of purposes those most usually represented on this particular document have a credit account numbers and specified what we're about in this case the cache county report also provides the entry of the counterculture not prevented

and twenty one sixty agency is not listed in their forehead this is the day a juicy one thousand dollars that is on july thirty years says that the church received several days in advance seventy one seventy three a few days in tripoli practice of this fourteen thousand dollars of them of that company was fictitious and we want to steal what actually happened so i can comment on no spaces

the united states the papers if you know i was an account of that spills out of these schools as gentleman mr loesser they do now details oil companies with many episodes the customer and vigils much as the city is not the usual course of business

it's really become has issued a press release to the fact that they did make a corporate contributions for this the finance committee to re elected president and no this money this far yes sir the population but that was gone it was somber man so that this latest contribution they made so the

in july nineteen seventy three and are there is no interest to be gone when you as an accountant from the papers that go up to that time and that the competition allah was in the hands of legal committed to elect presidents bilious yes well in view of the way the system says some respect the movie mysterious ways that was typical you know

oh yeah i mean really it's beef be tough to pass because blank it's

both do you see that he's been in jail september this year and as the committee also probably knows in july of this year american voluntarily disclosed special prosecutor and to the public

then in the fall of nineteen seventy one i was approached by mr herbert public mask to arrange for a competition one hundred thousand dollars to the committee to reelect president was told the contributions of this of all would be regarded as in a special class and so i knew that proteins also two americans principal competitor i decided that some affirmative response was necessary i did arrange for contributions aggregating seventy five thousand dollars which fifty five thousand dollars came from american airline's corporate sources and about resources for full details of albania robert source contributions generated and they

have been provided to the staff of the committee as well as to the special prosecutor but in the summer and formed an american financial officer that we might be asked for a substantial contribution perhaps as much as one hundred thousand dollars so months later he advised me that the money will reveal later in nineteen seventy three but it had been generated by an invoice for payment of the commission the lebanese firm for the sale of used aircraft so happens that the principal mary lebanese firm has performed real services for american airlines from time to time but in this case this and voice was a false on by arrangement with him the fund's will return and get americans and fifty five thousand dollars of this photo that was used to make contributions

committee fifty five thousand along with the twenty thousand and virtual sources was delivered at a major comeback instructions to the committees three installments of five thousand dollars first one in december nineteen seventy one and final installment of sixty thousand dollars made in march nineteen seventy two turning to a separate point i'd like to describe the circumstances which led up to my decision last july didn't make a full disclosure of the matter before the artifacts have become known for the government from other sources an initial also want to offer some suggestions for removing what i see as unfair pressures

that are placed on business executives under our present system of campaign financing in april nineteen seventy three after these contributions made representatives of the committee to re elect the president asked american polity seventy five thousand dollars of contributions the committee anticipated it would have to file in the common cause law so after an extensive review of the matter with counsel and a review by counsel of the facts i decided that the illegality of the contribution from corporate sources should not become counted and that all the facts should be disclosed to be appropriate as a result

of the bar council discussions with the special prosecutor used that we decided to join with the special prosecutor and making it public disclosure of the facts for such a public disclosure our consulate consulting mr gardner because of his earlier public invitation for corporate executives to come forward and to disclose any unreported prenatal contributions in the nineteen seventy two presidential campaign i do then how much personal damage these public disclosures would do i concluded that they ought to be made and they were married attached to my statement is american airlines press release of july six nineteen seventy three disclosing a corporate contributions it's true that in making the steps we sought to mitigate the law violation

involving only corporate contributions by assisting the special prosecutor's enforcement effort in addition to discussing our own wrongdoing we provided details about the prosecutor in the spring other cases moreover by making very public announcement we enabled the special prosecutor released late july sixth urged other companies to follow our example income for voluntarily in an effort to put an end to illegal campaign funding practices and that the six other major national companies did so in those names of the companies special prosecutor recognized his contribution the law enforcement in his announcement of last october seventeenth which we've also attached a statement in state it is believed that the american's decision become for voluntarily and evidence any willingness to do so

oh that's something to do with helping others to come forward with voluntary disclosures corporate contributions so you're also the seventy two campaign financing laws and i strongly support the strengthening of these was running for the unveil remedial legislation i believe that the present system places and temperatures both on the candidates and on corporate executives said before said specifically in a statement of july six the most contributions from the business community and not volunteer to see competitive they were made in response to pressure or fear of a competitive

disadvantage that might result if they're not a name and the process my opinion clearly the grades both the phone are donating the present situation is particularly kenyans when the pressure is implicit in the position occupied by the individual making that solicitation i suggest therefore that congressional consideration be given the advisability of making certain individuals or legally eligible to engaged in campaign solicitation fact this is really expanding number of individuals or ineligible the ticket i recommend that solicitation by individuals who just left the cap won't just left other high positions in the government or by individuals who are priests or representatives of officers

positions being made anwar was one other as fighting somewhat moderate statement producers that i think i support the legislative remedy usual legislation which forbids act by corporation also includes officers directors and principal stockholders there is no comparable figure out either the existing legislation or anything and i say a scene discuss that is jake example corporation at that era's stockholders and as officers who held her eight a profitable stock options they can under existing legislation may get fifty thousand dollars figure they desire he's be a corporation and has a very large principles talk over prep solid

incomes dr corporation runs all of his assets private corporation is free and i get a fifty thousand dollar operation see which doesn't help needed politically minded directors which directors you cannot make a guess or must make all the illegal office looked at her latest employment impact and any possible influence mit says there's absolutely no distinction to be made between mr gration bearden corporations say those exact same impact on one case a corporation say which is the apathy my situation i've done something wrong and i realize it's wrong another and the same impact and they have other companies and he is hardly the case in other companies to make contributions to their directors are principal stockwell i think that's a fair thing there's certainly nothing inherent in

the law says the political operation that doesn't have which directors or big rich buckler should somehow be prejudiced in our process of administration of the government but when i really have proper legislative remedy might be i feel strongly and disclosure such as those they made during these hearings and teleprompter meal action it's time to stop such practices and i pledged to do oh i can't listen for wrecking legislation that common cause and others are advocating there's that imposing that i think that this committee has made a one of a contribution to the history of our republic i think people want to make another enormous contribution by pressing for remedial legislation which will take probably unfair pressure to those votes and candidates

are not businessmen under present law it promotes sustainable solutions mr jt this is one time the general counsel for american airlines and you're familiar with a legal ramifications all matters affecting american airlines is all what was the first time he wants to overcome that i can't be exactly sure but i think i met him at a republican dinner in washington in march nineteen seventy one i met in that time i don't recall a conversation

i think so you know next time i met him was in july was on july thirty nineteen seventy one the circumstance was that i had been asked by mr hochman oh i had been my host at the march nineteen seventy one republican vote is dropping asked me what i have lunch with has become integrated lunch with him at that time explain to us who is mr cochran joseph estrada as a partner or officer of goldman sachs that's banking firm in your car that time here at various positions in

the government the only one unfamiliar with maybe this is the only one who is that as i recall in nineteen sixty nine he was working with the district all sorts who is still part of administration later became decidedly know i don't recall what some in europe that's why first met him was mr ellsworth in the white house in an area that decided on firearms some point to the vice chairman of the material on pretty soon as he was reversed much about finance is i

think i think the combat role really that humans and gave strock and explained that raising money from large gatherings and other than that the conversation with a gentle nimble whether golf or some other subjects of that type whereas that is to come back hallway several months later my recollection is a call california and i'm sure that asked me what i have to do with him and he named the place twenty one restaurant in new york i think it was the cause of the day much was held was oct twentieth i think he call me sometimes ten world seems a long time and then say well there is the dairy you are special

and celeste wallander is race also so is raging over germany's have the first pope of the spine for class and money city on america now if you want you to be in a special class you know i guess my point do not ever thinking myself capable meaning that special class financially able i thought the vision for america now continues the main and i feel sort of the promise of the vietnamese said we want you to the members although he said you when you left that meeting you had a question in your mind that you refer to american support the law well that may have been because my own

financial inadequacy of it certainly yes i'm empty promises come back again i said in response to do my best to produce seventy or seventy five thousand dollars and he's one hundred thousand as your voice in this year awful seventy five search my memory to see if i can make all of my recollection is he said something bland and he said something at all have actually ok to believe that it was a very strong response oh well why were you and sends off wanting well it will reduce the month much that transitional suggestion or figure that i did you're trying to save money now what about

the first time i talked to our chief financial officer this was someone after the july thirty meeting when i've heard that searching for a hundred thousand dollar giver is a new very much will happen in the next and so i wanted a man that i might be a two hundred thousand dollar are some pretty sure was private meeting and that was pretty clearly on the long july thirty so after the second meeting he went back to set things in motion the bottom of npr very strongly racing next jar that they first

met at one stripe now something that i learned after april nineteen seventy three when we put previously so if you could get it out onto the time what happened that there was that arrangement with they are lebanon a lebanese <unk> we got that and a couple hundred thousand dollars they and the chemical bankers request to transmit that a lot to any corporation swiss bank account mr rodriguez i'm amy mar ceo company which apparently was a company controlled by are lebanese the money was transmitted to switzerland and transmitted

back from switzerland to chase away in your lebanese ancient enemy or he went to the bank call one of our support and officials of the bank he received a hundred thousand dollars and gave his two artificial are crucial to the backdrop of support of beyond say german you want to pay we need to raise one hundred

thousand dollars i did not know came back and said we have no money and i didn't know where i was raised until the investigation which took place in may or june of nineteen seventy three many facts we don't know all the facts now i didn't think the board and i think it's going to a b o u r i o u in iowa i am he was on the line a hundred thousand dollar graft and to get back to new york and then get cash was delivered by him to one of our assistant officers took it to our office saying no

electrical easier that might help explain some on october twenty nineteen seventy one you received for check for five thousand dollars apiece in the mail and those over two hundred thousand dollars and that's what we need beginning in december nineteen seventy one we made payments to reform law one payment five thousand dollars in pay fb

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