(navigation image)
Home American Libraries | Canadian Libraries | Universal Library | Community Texts | Project Gutenberg | Children's Library | Biodiversity Heritage Library | Additional Collections
Search: Advanced Search
Anonymous User (login or join us) Upload
See other formats

Full text of "High treason; the plot against the people"

A WARN I N G TO TH E NATI ON 
BY THE CO AUTHOR OF THE SENSATIONAL BEST-SELLERS 

SABOTAGE ! AND THE GREAT CONSPIRACY 



HIGH 
TREASON 

THE PLOT AGAINST 
THE PEOPLE 



ALBERT E KAHN 



WITH THE ASSISTANCE OF ARTHURKAHN 



f THE COMPLETE ORIGINAL $3 BOOK 



HIGH TREASON 



By Albert E. Kahn 

SABOTAGE! -The Secret War Against America * 

THE PLOT AGAINST THE PEACE * 

THE GREAT CONSPIRACY: The Secret War Against 
Soviet Russia * 

HIGH TREASON: The Plot Against the People 

Pa7nphlets 

Treason in Congress 

Dangerous Americans 



With Michael Sayers 



HIGH 
TREASON 



The Plot Against the People 



ALBERT E. KAHN 

Research and Editorial Assistant, ARTHUR KAHN 



LEAR PUBLISHERS 

New York 



COPYRIGHT 1950, BY ALBERT E. KAHN 

All rights reserved, including the right 

to reproduce this book or portions 

thereof in any form. 



First Edition 
Published May 1950 



199 



PRINTED IN THE UNITED STATES OF AMERICA 



TO MY MOTHER 

whose heart is with the people 



None of the incidents or dialogue in High Treason 
has been invented by the author. The material has 
been drawn from various documentary sources 
which are indicated in the text or listed in the 
Bibliographical Notes. 



The reader of this book is not to infer from the tide, High Treason, that 
any person named in the book has committed treason against the United 
States Government. The title is derived from the concept defined in the 
author's foreword. In those cases where treason against the United States 
Government has been committed by persons named in this book, the author 
has specifically indicated this fact. 



CONTENTS 



On Treason—^ Foreuoord xi 



BOOK ONE: DAYS OF TERROR 

War in Peace 

1. Grim Aftermath 2 

2. Secrets of the Department of Justice 10 

3. The Raids 14 

4. Chambers of Horror 20 

II Dark Tide 

1. The Nature of the Crime 24 

2. The Foulest Page 29 

III Balance Sheet 34 

BOOK TWO: LOOTING THE LAND 

IV Incredible Era 

1. The Making of a President 42 

2. "God! What a job!" 45 

3. The Ways of Normalcy 48 

V Rogue's Gallery 

1. "The real old times" 53 

2. The Dome and the Hills 58 

3. Mr. Smith Goes to Washington 63 

4. Sudden Death 68 

5. Millionaires on Trial 71 

vii 



VI The Golden Age 

1. "Aren't We All Rich Now?" 

2. The Profits of Crime 

3. *'Those anarchistic bastards!" 

VII End of An Era 

1. Debacle 

2. Days of Reckoning 

3. March on Washington 

BOOK THREE: THE WAR WITHIN 

VIII The New Deal 

1. F.D.R. 

2. First Term 

IX Force and Violence 

1. King of the Strikebreakers 

2. Blackguards and Blacklists 

3. Gas and Guns 

4. Techniques of Terror 

5. Lest We Forget 

6. The General Staff 

X Inside Ford's Empire 

1. Man and Myth 

2. The Little Fellow 

3. "Bennett's Pets" 

4. The Dallas Affair 

5. Boring From Within 

6. Final Drive 

XI Dangerous Americans 

1. The Secret Offensive 

2. Abortive Putsch 

3. Murder in the Middle West 

4. Fifth Column in Congress 

5. America First 

XII The War Years 

I. Gold Internationale 



vui 



2. "What price patriotism?" 229 

3. People's War 234 



BOOK FOUR: THE NEW INQUISITION 

iciii Death of the New Deal 

1. War's Legacy 242 

2. Return of Herbert Hoover 248 

3. Missouri Gang 251 

4. Top Secret 256 

5. Sound and Fury 260 

Jciv Witchhunt in Washington 

1. Loyalty Order 267 

2. Behind Closed Doors 271 

tv Pattern of Suppression 

1. Grim Schedule 278 

2. Fear Itself 281 

3. Stormtroop Strategy 285 

4. "Is this America?" 290 

5. Method in Madness 297 

tvi The Monstrous Fact 

1. In Freedom's Name 306 

2. In the Nation's Capital 311 

3. Terror in Tennessee 315 

4. By Trigger, Lash and Noose 320 

XVII The Red Spectre 

1. Theme and Variations 328 

2. Trial of the Twelve 332 

3. Peekskill 342 
4- 1950 347 

To the Reader 349 

Bibliography 351 

Index 356 

ix 



The traitor to Humanity is the traitor most accursed. 

]a?ne5 Russell Lowell 



When I, the People, learn to remember, when I, the People, 
use the lessons of yesterday and no longer forget 
who robbed me last year, who played me for a fool- 
then there will be no speaker in all the world say 
the name: "The People," with any fleck of a sneer in 
his voice or any far-oif smile of derision. 

The mob— the crowd— the mass— will arrive then. 

Carl Sandburg 



A Foreword 
ON TREASON 



The greatest treason is not treason against governments but 
against human beings. 

Treason against the people is committed in many diverse ways. 
Oppression through violence, terror and inquisition; the exploita- 
tion, despoilment and impoverishment of millions of men and 
women; despotic laws and the use of the courts as instruments of 
repression; fraudulent propaganda a7id the artificial pitting of one 
section of the public against another; the malting of wars and 
the monstrous alchemy of converting mans blood into gold: all 
these are forms of treason against the people. 

And common to all of them is the fierce determination of a 
privileged minority to retain their power and increase their advan- 
tages at the expense and suffering of the great majority. 

Treason against the people is not a new phenomenon in the 
world. Its dar\ thread runs through the pattern of all recorded 
history. But in our epoch, as the strength of the people has 
achieved unprecedented proportions and their demand for a 
better life has become implacable, the measures of the few to sub- 
jugate the many have grown increasingly ruthless and desperate. 
Fascism was a product of that ruthlessness and desperation. The 
German citizen who actively opposed the Nazi regime was not a 
traitor but a true patriot; it was the Nazi Government that was 
traitorous. 

This boo\ deals with treason against the American people. The 
crimes and conspiracies it records do not ma\e for pleasant read- 
ing, and much of its content will be deeply shoeing to the 
average American. Yet there is every reason why Americans must 
comprehend the treasonable devices employed against them in the 

id 



past and so gravely menacing them in the present. The main- 
tenance of democracy in America, and of peace iri the world, 
depends largely upon this understanding. 

It is in the hope of increasing this understanding, and of acti- 
vizing Americafis against the mounting danger in the land, that 
this boo\ has been written. 



Xll 



BOOK ONE: DAYS OF TERROR 



■>.>!^i',':^'.«:'i*i 



Chapter i 

WAR IN PEACE 



Give me your tired, your poor. 
Your huddled masses yearning to breathe free. 
The wretched refuse of your teeming shore. 
Send these, the homeless, tempest-tost to me, 
I lift my lamp beside the golden door! 

FroTfi Emma Lazarus^ poem, The New 
Colossus, inscribed on the base of the 
Statue of Liberty, 



I. Grim Aftermath 

Shortly before dawn on a chill overcast December morning, one 
year after the end of the war, a carefully guarded transport vessel 
lying in the shadow of the guns of Fort Wadsworth lifted anchor 
and slipped out of New York Harbor under extremely strange and 
mysterious circumstances. Not even the captain knew where the 
ship was bound; he was sailing under sealed orders, to remain un- 
opened until he was twenty-four hours at sea. The only persons 
aware of the ship's destination were a few highly placed officials 
of the United States Government. 

Through the long tense hours of the night a cordon of heavily 
armed soldiers had stood on guard at the pier. Aboard ship, other 
soldiers with fixed bayonets patroled the decks. A special detach- 
ment of marines, several agents of the Department of Justice and a 
top-ranking member of the Mihtary Intelligence Section of the 
Army General Staff sailed with the vessel. Shortly before departure, 
revolvers were distributed among the crew . . . 

The ship carried an extraordinary cargo: 249 Russian-born men 
and women who had been arrested by Federal agents in a series of 
sudden nationwide raids and brought for deportation to Ellis Island 



under armed guard. According to Justice Department spokesmen, 
the prisoners were "the leaders and brains of the ultra-radical move- 
ment" and "Soviet agents" who were ^'conspiring to overthrow the 
Government of the United States." 

While street lights blinked out in the hushed, still slumbering city 
of New York, the ship bearing these men and women steamed 
slowly away from the dimly-looming Statue of Liberty and headed 
out to sea. 

The ship was the Buford. More colloquially, the American press 
dubbed it "The Soviet Ark". . . 

For those readers who do not recall the banner headlines which 
heralded the news that the Biiford had sailed, it should be mentioned 
that this singular voyage occurred one year after World War I, not 
World War II. 

The date on which the Buford sailed from New York was De- 
cember 2 1, 19 19.* 

The Great War had ended but peace had not come with the 
signing of the Armistice on November 11, 191 8. 

On that long-awaited day which officially concluded the agony 
and havoc of the four seemingly interminable years, as the momen- 
tous word raced through the land, and every hamlet and town 
resounded with the frantic clamor of whistles, horns and bells, and 
tens of thousands danced wildly in the streets with joy, President 
Woodrow Wilson sat at his desk in the White House writing a 
solemn but exultant message to the American people: 

"My Fellow Countrymen: The Armistice was signed this morn- 
ing. Everything for which America fought has been accomplished. 
It will now be our fortunate duty to assist by example, by sober 
friendly counsel, and by material aid in the establishment of just 
democracy throughout the world." 

In Europe, as in America, President Wilson's quixotic pronounce- 
ments were on all lips. Arriving on the Continent that December to 
attend the Paris Peace Conference, the tall, lean, bespectacled pro- 
fessor from Princeton was fervently acclaimed by the war-weary 

* On January 17, 1920, after being escorted across the English Channel by a 
British destroyer and passing through the Kiel Canal to the Baltic Sea, the 
Buford deposited its human cargo at the port of Hango, Finland. The Finnish 
Government immediately transported the deportees to the Russian border and 
turned them over to the Soviet authorities. 

3 



millions as a modern Moses who had come to lead mankind into a 
promised land of peace and brotherly love. 

And yet, incredible as it seemed, within a matter of weeks, the 
splendid visions conjured up by Wilson's magic words had vanished 
into thin air, and in their place loomed ominous portents of tur- 
bulent and tragic days to come. 

"It is now evident," Colonel E. M. House, Wilson*s chief adviser 
and closest confidante, noted apprehensively in his diary on March 
3, 19 19, "that the peace will not be such a peace as I had hoped, or 
one which this terrible upheaval should have brought about." 

At the carefully secluded peace deliberations of the Big Four in a 
conference room at the Quai D'Orsay in Paris, there soon emerged 
the real reasons why millions of men had died in the mud of 
Europe's battlefields. Bound by their secret treaties and commercial 
pacts, and avidly impatient to redivide the world market and carve 
up the German Empire, David Lloyd George, Winston Churchill,* 
Georges Clemenceau and Vittorio Orlando lost little time in by- 
passing Wilson's high-sounding peace proposals and getting down 
to the real business of the day. 

"The old politicians," observed the famous British war correspon- 
dent. Sir Philip Gibbs, "who had played the game of politics before 
the war, gambling with the lives of men for territory, privileged 
markets, oil fields, native races, coaling stations and imperial pres- 
tige, grabbed the pool which the German gamblers had lost when 
their last bluff was called and quarreled over its distribution." 

There were other discordant notes at the Peace Conference. 

The legacy of the Great War had not been limited to millions of 
dead and crippled human beings, and to wreckage, plague, famine 
and destitution. Out of the cataclysm there had come, unbidden and 
unforeseen, gigantic upheavals of masses of humanity, revolting 
against further suffering and bloodshed, demanding peace, bread, 
land and an end to the old order. 

"The whole of Europe is filled with the spirit of revolution ...,'* 
Prime Minister David Lloyd George told the Peace Conference in a 
confidential memorandum. "The whole existing order in its politi- 

* Winston Churchill, then British Secretary of War, temporarily replaced 
Prime Minister Lloyd George, as the British spokesman at the Paris Peace 
Conference in February 1919. 



cal, social and economic aspects is questioned by the masses of the 
population from one end of Europe to the other." 

How to stifle this "spirit of revolution" and maintain the status 
quo? How to liquidate the Soviets in Berlin and Hamburg, in 
Bavaria and Hungary? Such were the questions that obsessed the 
peacemakers at Paris. 

And dominating all other questions was this: how to crush the 
revolution in Russia which had brought the Soviet regime to power 
on November 7, 19 17? 

As recorded by the semi-official History of the Peace Conference 
published under the auspices of the British Royal Institute of Inter- 
national Affairs: 

The effect of the Russian problem on the Paris Peace Conference 
was profound: Paris cannot be understood without Moscow. Without 
ever being represented at Paris at all, the Bolsheviki and Bolshevism 
were powerful elements at every turn. Russia played a more vital part 
in Paris than Prussia. 

"Bolshevism is spreading," the aging French "Tiger," Premier 
Georges Clemenceau, agitatedly warned the Peace Conference. "It 
has invaded the Baltic provinces and Poland ... we have received 
very bad news regarding its spread to Budapest and Vienna. Italy, 
also, is in danger. . . . Therefore, something must be done against 
Bolshevism!" 

Already something was being done. Although peace had been 
proclaimed, tens of thousands of AUied troops, fighting side by side 
with counter-revolutionary White armies led by former Czarist 
generals, were waging a bloody, undeclared war on Russian soil to 
overthrow the new Soviet Government. 

"Bolshevism," Herbert Hoover, Chairman of the American Relief 
Administration, told the Peace Conference, "is worse than war! " * 



* By the summer of 19 19, without declaration of war, the armed forces of 
fourteen states had invaded the territory of Soviet Russia. The countries 
involved were: Great Britain, France, Japan, Germany, Italy, Czechoslovakia, 
Serbia, China, Finland, Greece, Poland, Rumania, Turkey and the United 
States. 

The intervention and the civil war in Russia lasted into the summer of 1921 
and finally ended in the defeat and routing of the interventionist forces and 
their White Russian allies by the Red Army. 

Although receiving scant attention in most histories, the two and a half 
years of intervention and civil war were responsible for the death through 
battie, starvation or disease of some 7,000,000 Russian men, women and chil- 



Point six of Wilson's Fourteen Points called for the "evacuation 
of all Russian territory" and "the independent determination of her 
own political development and national policy." But at Paris, Wilson 
gave in to the advocates of intervention. The day before he was to 
return to America, he said, *'I have explained to the Council how I 
would act if I were alone. I will, however, cast in my lot with the 
others." 

Back in America, President Wilson placed the Treaty of Ver- 
sailles before the Senate. Unwilling to admit to himself or to others 
the tragic failure of his mission and the iniquity of the peace terms, 
Wilson declaimed: "The stage is set, the destiny disclosed. It has 
come about by no plan of our conceiving, but by the hand of God 
who led us into the war . . . We can go only forward, with lifted 
eyes and freshened spirit, to follow the vision." 

But Wilson's eloquence now fell on deaf ears. Under the leader- 
ship of the elderly, die-hard isolationist. Senator Henry Cabot 

dren. The material losses to Soviet Russia were later estimated by the Soviet 
Government at $60,000,000,000. No reparations were paid by the invaders. 

With irony and characteristic bluntness, Winston Churchill, who himself 
supervised the Allied campaign against Soviet Russia, later wrote in his book, 
The World Crisis: the Aftermath: "Were they [the Allies] at war with Russia? 
Certainly not; but they shot Soviet Russians at sight. They stood as invaders 
on Russian soil. They armed the enemies of the Soviet Government. They 
blockaded the ports and sank its battleships. They earnestly desired and 
schemed its downfall. But war— shocking! Interference— shame! It was, they 
repeated, a matter of indifference to them how Russians settled their own 
affairs. They were impartial— bang!" 

On September 5, 19 19, Senator William Borah declared in the U. S. Senate: 
"Mr. President, we are not at war with Russia; Congress has not declared war 
against the Russian Government or the Russian people. The people of the 
United States do not desire to be at war with Russia . . . Yet ... we are 
carrying on war with the Russian people. We have an army in Russia; we are 
furnishing munitions and supplies to other armed forces in that country . . . 
There is neither legal nor moral justification for sacrificing these lives. It is in 
violation of the plain principles of free government." 

Under the direction of Herbert Hoover, the American Relief Administra- 
tion channeled all possible food supplies into territory occupied by the troops 
of General Nicholas Yudenitch and other ex-Czarist and White Guard com- 
manders, while withholding supplies from Soviet territory, where hundreds of 
thousands were starving. The ARA also arranged for the delivery of military 
equipment to the White forces. Finally, after the end of the intervention and 
civil war, public pressure in Anerica forced the sending of food to famine- 
stricken Soviet Russia. 

"The whole of American policy during the liquidation of the Armistice," 
Herbert Hoover wrote Oswald Garrison Villard on August 17, 1921, "was to 
contribute everything it could to prevent Europe from going Bolshevik . . ." 

6 



Lodge, the Senate Foreign Relations Committee proceeded to chop 
apart and revise the Treaty, concentrating its attack on the Cove- 
nant of the League of Nations. 

Early in September 19 19, against the warning of his physicians, 
Wilson set out on a coast-to-coast speaking tour to rally popular 
support for his peace program. The strain on his already overtaxed 
nervous system proved too great. On the night of September 25, 
having dehvered forty speeches within three weeks, the President 
collapsed while en route by train to Wichita, Kansas. He was 
rushed back to Washington. A few days later, a cerebral throm- 
bosis resulted in the partial paralysis of his left side . . . 

For the remaining seventeen months of his term. President Wilson 
was an ailing recluse in the White House. Bedridden for over a 
month, and then confined to a wheel chair, he received scarcely 
any visitors and attended to only the most elementary matters of 
state. Day after day, wrapped in a shawl, lonely and gray-faced, 
Wilson sat in his wheel chair on the portico of the Presidential man- 
sion, brooding bitterly on the disintegration of his cherished dreams. 

The atmosphere in the nation's capitol, as depicted by Edward G. 
Lowry in Washington Close-Ups, was 

one of bleak and chill austerity suffused and envenomed by hatred 
of a sick chief magistrate that seemed to poison and blight every ordinary 
human relationship . . . The White House was isolated ... Its great iron 
gates were closed and chained and locked. Policemen guarded its ap- 
proaches. It was in a void apart. 

The rumor spread that Wilson was no longer in his right mind. 
A number of congressmen urged that he be supplanted by Vice- 
President Thomas R. Marshall, and the Senate dispatched Senators 
Albert Fall and Gilbert Hitchcock to the White House to check on 
the President's mental condition. 

"Mr. President," Senator Fall unctuously told Wilson, "I am 
praying for you." 

The two senators reported back to their colleagues in the Upper 
House that they had found the Chief Executive in full possession of 
his mental faculties . . . 

Such was the grim finale of Woodrow Wilson's crusade for 
world peace. 

As in Europe, so also in America, peace had not come with the 
signing of the Armistice. 

7 



While President Wilson had been touring the land delivering im- 
passioned speeches on his plans for world peace, his own country 
was seething with violent unrest and bitter industrial strife. 

The uneasy wartime truce between labor and capital in America 
had terminated abruptly. With officials of the American Federation 
of Labor still sanguinely echoing Wilson's slogan of "Industrial 
Democracy" and predicting a "new era for American Labor," the 
major industries launched a sudden intensive campaign to wipe out 
labor's wartime gains and crush the trade unions,* 

"I believe they may have been justified in the long past," Judge 
Elbert H. Gary, Chairman of the U. S. Steel Corporation, told a 
meeting of stockholders. "But . . . there is, at present, in the 
opinion of the large majority of both employers and employees, no 
necessity for labor unions . . . The existence and conduct of labor 
unions, in this country at least, are inimical to the best interests of 
the employees, the employers and the general public." 

The Minnesota Banker editorialized: 

There is no question as to the economic value of the open shop. . . . 
The closed shop is zealously fought for by the radical wing of labor 
organizations. The open shop can be the most readily brought about by 
the elimination of this element in organized labor. . . . where the radical 
element is too strongly entrenched, there is, of course, but one final thing 
to do, and that is to beat them by force. 

WilUam H. Barr, President of the National Founders' Association 
trenchantly summed things up with the words: "War-time wages 
must be liquidated!" American workingmen did not submit quietly 
to the concerted assault on their unions and living standards. A 
storm of strikes swept the country. 

In January 19 19, shipyard workers in Seattle, Washington, 
walked off their jobs in protest against a wage cut, and within three 

* As a wartime expedient, various concessions had been made to the labor 
movement by industries which, in the words of the labor historians, Selig 
Perlman and Philip Taft, "spurred on by war-time profits, staged a reckless 
competition for labor." Wages had been increased, hours of labor shortened. 
Workers poured into unions. Between 19 13-1920 the American Federation of 
Labor membership rose from 1,996,000 to 4,078,000. 

But despite the wartime gains of organized labor, the lot of most American 
workers was still extremely arduous at the war's end. In the steel industry, for 
example, there was a seven-day work-week in 1919, and many steel workers 
put in twelve to fourteen hours a day. Commenting on working conditions in 
the steel industry in 1919, a Report by the Commission of Inquiry of the Inter- 
church World Movement stated: ". . . The 12-hour day is a barbarism with- 
out valid excuse, penalizing the workers and the country." 

8 



weeks the entire city was tied up by a general strike. During the 
following months, in one state after another, typographers and con- 
struction workers, telephone operators and railroadmen, longshore- 
men, teamsters and textile workers went on strike. The culminating 
point of the strike wave came in September and October, when 
close to 350,000 steel workers quit their jobs and half a million 
miners walked from the coal pits, bringing the total number of 
workers on strike in America to more than two million . . . 

A headHne in the December 19 19 issue of The Employer, organ 
of the Oklahoma Employers' Association, called the coal strike 
"Nothing Less Than Open and Defiant Revolution." The same issue 
of this journal posed the question: "Would Hindenburg and Luden- 
dorff do less evil to the country than Lewis and Foster?" * 

To smash the strikes, thousands of Federal troops, state militia, 
municipal police, and whole armies of company-hired strikebreakers 
and gunmen went into action. In many industrial centers martial 
law was declared. Pitched battles were fought in the coal fields. In 
one battle in West Virginia, some 1,500 armed deputies and more 
than 2,000 Federal troops were used to disband a colony of striking 
miners who had armed themselves against strike-breaking gunmen. 

The dead and wounded in these fierce labor conflicts numbered 
in the hundreds. 

Bloody violence in postwar America raged not only in the arena 
of industrial strife. 

"That year [1919]," the noted scholar W. E. B. Dubois records 
in his book. Dusk of Dawn, "there were race riots large and small 
in twenty-six American cities, including thirty-eight killed in a 
Chicago riot in August; from twenty-five to fifty killed in Phillips 
County, Arkansas; and six killed in Washington." 

Governor Hugh M. Dorsey of Georgia told a citizens' confer- 
ence in Atlanta: "In some counties the Negro is being driven out 
as though he wxre a wild animal; in others he is being held as a slave; 
in others no Negroes remain." 

The wholesale terror against Negroes reached its peak at Phillips 
County, Arkansas. 

* The Employer was referring to John Llewellyn Lewis, riien Acting Presi- 
dent and later President of the United Mine Workers of America; and to 
William Z. Foster, then Secretary of the National Committee for the Or- 
ganizing of the Iron and Steel Industry and leader of the great steel strike, and 
later the National Chairman of the American Communist Party. 



Crushed under the peonage of the feudal plantation system, 
Negro cotton pickers in Phillips County formed a Progressive 
Farmers' Household Union in an effort to change their subhuman 
working and living conditions. Immediately, the plantation owners 
and local authorities launched a ferocious drive to destroy the or- 
ganization. Members of the Union were systematically hunted 
down, jailed, shot and lynched. With desperate courage, the 
Negroes armed themselves, established "Paul Revere" courier sys- 
tems to recruit new members to their ranks and fought back under 
the slogan, "We've just begun." 

Federal troops, equipped with machine guns, were rushed into 
Phillips County. Hundreds of Negroes were arrested and herded 
into jails. After trials lasting literally only a few minutes, eleven 
Negroes were sentenced to death, nine Negroes to twenty-one years 
imprisonment, and 122 more indicted on various charges. 

The Progressive Farmers' Household Union was destroyed . . . 

In Washington, on August 25, 19 19, Congressman James F. 
Byrnes of South Carolina told members of the House of Represen- 
tatives: 

For any colored man who has become inoculated with the desire for 
political equalit)% there is no employment for him in the South. This is 
a white man's country, and will always remain a white man's country.* 

There were other grim features to the postwar scene in America. 
As Frederick Lewis Allen writes in his book. Only Yesterday: 

If the American people turned a deaf ear to Woodrow Wilson's plea 
for the League of Nations during the years of the Post-War Decade, it 
was not simply because they were too weary of foreign entangle- 
ments . . . They were listening to something else. They were listening 
to ugly rumors of a huge radical conspiracy against the government and 
the institutions of the United States. They had their ears cocked for the 
detonation of bombs and the tramp of Bolshevist armies. They seriously 
thought— at least millions of them did, millions of otherwise reasonable 
citizens— that a Red revolution might begin in the United States the 
next month or the next week . . . 

2. Secrets of the Department of Justice 

Toward the end of 19 19, the Assistant Chief of the Justice De- 
partment's Bureau of Investigation,t Frank Burke, dispatched an 

* For James F. Byrnes' activities as U. S. Secretary of State after World 
War II, see Book Four. 

+ The name of this division of the Justice Department was changed in 1924 
to Federal Bureau of Investigation, or FBI. 

10 



urgent, highly confidential directive to Federal agents throughout 
the country. The dii'ective revealed that the Justice Department 
was about to stage scores of simultaneous raids in a nationwide 
round-up of "communists" and "radical aliens." 

"You will be advised by telegraph," wrote Burke, "as to the 
exact date and hour when the arrests are to be made." 

The Justice Department agents were instructed by Burke that 
their spies, informers and agents-provocateurs within "communist 
groups" should make every effort to have these organizations hold 
meetings on the designated night. In Burke's words: 

If possible you should arrange with your under-cover informants to 
have meetings of the Communist Party and the Communist Labor 
Party * on the night set . . . This, of course, will facilitate in making 
the arrests. 

Burke's letter concluded: 

On the evening of the arrests, this office will be open the entire night 
and I desire that you communicate by long distance to Mr. Hoover any 
matters of vital importance or interest which arise during the course of 
the arrests. 

I desire that the morning following the arrests you should forward to 
this office by special delivery marked for the ^''Attention of Mr. Hoover^^ 
a complete list of the names of the persons arrested ... I desire also that 
the morning following the arrests you communicate in detail by tele- 
gram, ''''Attention of Mr. Ho over, ^^ the results of the arrests made, giving 
the total number of persons of each organization taken into custody, 
together with a statement of any interesting evidence secured. 

The full name of the "Mr. Hoover" who was assigned this re- 
sponsible role in the raids was John Edgar Hoover. 

A stocky round-faced young man with close-cropped dark hair 
and expressionless dark eyes, who had attended night law classes at 
George Washington University, J. Edgar Hoover had obtained a 
job as a minor official in the Department of Justice during the war. 
As shrewd as he w^as ambitious, he had advanced rapidly in the 
Department. In 19 19, at the age of twenty-five, he was appointed 
director of the newly formed, rather mysterious General Intelli- 
gence Division of the Department's Bureau of Investigation. In this 
capacity. Hoover had the important task of supervising the Bureau's 

* The Communist Party and the Communist Labor Party were formed in 
September 1919 after a split within the Socialist Party. The two groups later 
merged and founded the Workers (Communist) Party of America. In 1928 
the name became Communist Party of the United States of Ajnerica. 

II 



"counter-radical activities." His official title was Special Assistant 
to the Attorney General. 

A. Mitchell Palmer, the U. S. Attorney General at the time, was 
a man with an eye to the future. Knowing the gravity of Wilson's 
illness. Palmer was not averse to picturing himself as the Democratic 
presidential candidate in the 1920 elections. The fulfillment of such 
high hopes. Palmer knew, depended to a considerable degree on 
keeping his name in the news; and how could this be more effec- 
tively accomphshed than by leading a crusade against "subversive 
elements" which threatened "the very life of the Republic".^ 

To millions of Americans, the handsome, immaculately groomed 
Attorney General was known as the "Fighting Quaker." There was 
no more voluble champion of democracy and civil rights. "The Hfe 
of the Republic," declaimed Palmer, "depends upon the free dis- 
semination of ideas and the guarantees of freedom of speech, press 
and assembly ..." 

Sweeping raids and wholesale arrests? The very reason they were 
imperative, asserted the Attorney General, was to safeguard the 
Constitution and protect the American people from "alien agitators 
. . . seeking to destroy their homes, their rehgion and their 
country." 

In addition to his frequently expressed concern for the Constitu- 
tion, and to the pubUcity value of the raids. Palmer had another, 
quite personal interest in the anti-radical crusade. He was a director 
in the Stroudsburg National Bank, the Scranton Trust Company, 
the Citizens Gas Company, the International Boiler Company and 
various other such enterprises. 

Throughout the spring and summer months of 19 19, elaborate 
surreptitious plans had been afoot in the Justice Department for an 
all-out offensive against the "radical movement." Under the super- 
vision of Attorney General Palmer, Chief of the Bureau of Inves- 
tigation Wilham J. Flynn and General Intelligence Director J. 
Edgar Hoover, hundreds of special operatives, spies and paid in- 
formers had swarmed into organizations of the foreign-born and into 
left-wing, progressive and trade union groups in every part of the 
country. Sedulously compiling data on "radicals" and "labor agi- 
tators" this underground network of Federal agents and labor spies 
fed a steady stream of confidential reports into Justice Department 
12 



headquarters at Washington, D. C. Here the reports were carefully 
classified and filed in Hoover's General Intelligence Division. 

"There has been estabUshed as part of this division," Palmer was 
soon able to report to a congressional committee, "a card index sys- 
tem, numbering over 200,000 cards, giving detailed data not only 
upon individual agitators connected with the ultra-radical move- 
ment, but also upon organizations, associations, societies, pubUca- 
tions and special conditions existing in certain locahties." 

Justice Department spies were instructed to keep on the lookout 
for "subversive" Hterature. Not infrequently, when unable to dis- 
cover any, they themselves arranged for its publication and distri- 
bution. In one typical instance, a private detective agency, 
functioning in cooperation with the Department of Justice, printed 
hundreds of copies of the Commimist Manifesto and had its opera- 
tives plant them in appropriate places for seizure during the im- 
pending raids . . . 

Simultaneously, a special publicity bureau in the Justice Depart- 
ment was blanketing the country with lurid propaganda about 
Moscow-directed "Bolshevik plots" to overthrow the U. S. Govern- 
ment. Scarcely a day passed without the bureau's issuing press 
releases under such captions as: Attorney General Warns Nation 
of Red Peril— U. S. Department of Justice Urges Americans to 
Guard Against Bolshevik Menace— Press, Church, Schools, Labor 
Unions and Civic Bodies Called Upon to Teach True Purpose of 
Cormnumst Propaganda. 

On May i, 19 19, the anti-radical crusade received a sudden, 
spectacular impetus. 

As workingmen in scores of cities celebrated the traditional labor 
hoHday of May Day, U. S. Post Office authorities dramatically an- 
nounced they had uncovered a far-flung "Bolshevik bomb plot" to 
assassinate dozens of prominent American citizens. Already, re- 
ported the Department, more than thirty packages containing 
bombs had been intercepted. Among the public figures to whom 
the packages were said to be addressed were Postmaster General 
Albert S. Burleson, John D. Rockefeller, J. P. Morgan and Attorney 
General Palmer himself. 

The Attorney General issued a personal statement assuring the 
nation there was no need to become panic-stricken— the Department 
of Justice had the situation "well in hand . . ." 

13 



One month later, on June 2, simultaneous bomb explosions 
occurred in eight different cities. 

According to the press, "emissaries of the Bolshevik leader Lenin" 
were responsible for the explosions.* 

"It has almost come to be accepted as a fact," stated Attorney 
General Palmer, "that on a certain day in the future, which we 
have been advised of, there will be another serious and probably 
much larger effort of the character which the wild fellows of this 
movement describe as a revolution, a proposition to rise up and 
destroy the government at one fell swoop." 

As the summer drew to a close, the New York Tribune headlined 
the news: "Nation-wide Search for Reds Begins." 

The stage was set for the Palmer raids. 

3. The Raids 

On November 7, 19 19, the Department of Justice struck. The 
date, according to an article in the New York Times on the follow- 
ing day, had been selected by the Justice Department as the "psy- 
chological moment" for the raids because it was "the second anni- 
versary of the Bolshevik Revolution in Russia." 

In New York, Philadelphia, New^ark, Detroit and a dozen other 
cities, Federal agents stormed into meetings of "radical" organiza- 
tions, arrested hundreds of foreign-born and native Americans, and 
herded them off to jail. 

Typical of the raids was one at the Russian People's House at 

*The perpetrators of these conveniently timed bombings were never ap- 
prehended, nor was any evidence uncovered establishing their identit\\ Alger- 
non Lee, director of the Rand School, told a reporter from the New York 
Tribime on June 4, 1919: "I am convinced that it is a frame-up . . . because 
of its calculated effect upon the State Commission for the investigation of 
Bolshevism, and upon Congress in the matter of legislation designed to curb 
radical movements." 

On September 16, 1920, a tremendous bomb explosion took place in Wall 
Street, directly opposite the building of J. P. Morgan & Co. Thirty people 
were killed in this bombing and hundreds injured. As with the previous 
bombings, none of the culprits was apprehended. 

Nineteen years later, on October 10, 1949, Life magazine printed an article 
dealing with the atom bomb, entided "Can Russia Deliver the Bomb.^" Accom- 
panying the article was a picture of the wreckage caused by the 1920 Wall 
Street bombing with the caption: "In 1920 Reds Exploded Bomb in Wall 
Street, Killed 30, Wounded Hundreds." However— despite Life's lurid cap- 
tion—the crime, as historian Frederick Lewis Allen writes, "was never solved." 

14 



13 East 15th Street in New York City, a school and community cen- 
ter for Russian-born Americans. 

Classes in English, arithmetic and other subjects were in session 
when suddenly, without warning, dozens of Federal agents burst 
into the building. The astounded teachers and students including a 
number of veterans recently discharged from the U. S. Army, were 
harshly ordered to Hne up against the walls. The raiders then pro- 
ceeded to hurl typewriters to the floor, rip up books, break pictures 
and smash desks, chairs and other furniture. 

Placed under arrest, the teachers and students were roughly 
herded from the building. Those who moved too slowly to satisfy 
the raiders were prodded and beaten with blackjacks. Some were 
hurled bodily down the stairs. Outside, the prisoners were forced 
to run a gauntlet of Federal agents and police officers wielding clubs 
and nightsticks. They were then flung into waiting police wagons. 
In the words of the ISlew York Times: 

A number in the building were badly beaten by the police during the 
raid, their heads wrapped in bandages testifying to the rough manner in 
which they had been handled . . . Most of them had blackened eyes and 
lacerated scalps as souvenirs of the new attitude of aggressiveness which 
has been assumed by the Federal agents against Reds and suspected Reds. 

Throughout the country, newspapers acclaimed the raids as a 
death blow to the "Red Plot for revolution in America." 

The November 7 raids, however, were only a preliminary to 
what was to come. In the words of one prominent Government 
official: "The November raiding was only tentative— in the nature 
somewhat of a laboratory experiment." 

Intermittent raids, dramatically highlighted by the deportation on 
the Buford on December 2 1 of two hundred and forty-nine of the 
arrested aliens, continued throughout November and December. 

At the same time. Attorney General Palmer and a few of his 
most trusted aides were making covert preparations for their next 
move . . . 

The November 7 raids had convinced the Attorney General that 
the Alien Act of 19 17, under which he was theoretically operating, 
presented unnecessary inconveniences. According to the provisions 
of this Act, arrests of aliens, and searches of places and individuals, 
could not be made without warrants. The Act also stipulated that 
at deportation proceedings, aliens were to be given a fair adminis- 

15 



trative hearing and permitted to be represented by their own legal 
counsel. 

"These regulations," complained Attorney General Palmer, "are 
getting us nowhere." 

He decided to have the regulations changed . . . 

To avoid possible objections from those who were overly scrupu- 
lous about legal matters, the Attorney General was careful to pre- 
vent his plans from becoming public knowledge. As he himself later 
related: 

Appreciating that the criminal laws of the United States were not 
adequate to properly handle the radical situation, the Department of 
Justice held several conferences with officials of the Department of 
Labor and came to an agreeable arrangement for the carrying out of the 
deportation statute.* 

The conferences to which Attorney General Palmer referred 
were conducted in the strictest privacy. According to the "agree- 
able arrangement" reached between Palmer and John W. Aber- 
crombie, the Acting Secretary of Labor, the regulations were al- 
tered so as to facilitate the issuance of arrest warrants and to deny 
arrested aliens the right to legal counsel. Palmer submitted to Aber- 
crombie a stack of mimeographed forms as "affidavits" supposedly 
establishing the guilt of persons to be arrested. In return, the At- 
torney General was given several thousand arrest warrants. 

One of Palmer's aides who participated in these clandestine con- 
ferences between Justice and Labor Department officials was the 
Attorney General's Special Assistant, J. Edgar Hoover . . . 

At a subsequent trial concerning the illegal arrest of certain 
aliens, Henry J. Skeffington, Commissioner of Immigration, was 
asked by the Judge: "Did you have instructions as to this pro- 
cedure?" 

"We had an understanding," said Skeffington. 

"Written instructions?" demanded the judge. 

"No," replied Skeffington. "We had a conference in Washington 
in the Department of Labor with Mr. Hoover." 

At half-past eight on the evening of January 2, 1920, the coast- 
to-coast raids began. In more than seventy cities. Justice Depart- 

* The Bureau of Immigration operated under the jurisdiction of the Depart- 
ment of Labor until June 14, 1940, when it was transferred to the Department 
of Justice. 

16 



ment agents, accompanied by state and city police, swooped down 
on public meetings and invaded private offices and homes. In New 
York City almost a thousand persons were arrested. In Boston 400 
manacled men and women were marched to jail through the streets 
of the city. In Maine, Oregon, New Jersey, California, Ohio, Mis- 
sissippi, Illinois, Nebraska and a score of other states, thousands 
were rounded up . . . 

Every\\^here, the raiders acted more like vigilante mobs than 
guardians of the law. 

In New York City, Federal agents, detectives and policemen 
stormed into the Communist Party headquarters brandishing re- 
volvers, arrested and photographed everyone on the premises, and 
then proceeded to tear from the walls pictures of Eugene Debs, 
Karl Marx and Friedrich Engels, which they coverted into grotesque 
masks and held over their faces as they boisterously paraded about 
the premises. Government agents in a small New Jersey town who 
chanced upon a committee of townspeople collecting funds to pay 
for the funeral of an impoverished Polish immigrant, promptly 
arrested the committee members and imprisoned them along with 
the other "radicals" they had rounded up. Describing the raids in 
Massachusetts, Judge George Anderson of the United States Dis- 
trict Court in Boston subsequently stated: 

Pains were taken to give spectacular publicity to the raids, and to 
make it appear that there was great and imminent public danger against 
which these activities of the Department of Justice were directed. The 
arrested aliens— in most cases perfectly quiet and harmless working peo- 
ple, many of them not long ago Russian peasants— were handcuffed in 
pairs, and then for the purpose of transfer on trains and through the 
streets of Boston, chained together. The northern New Hampshire con- 
tingent were first concentrated in jail at Concord and then brought to 
Boston in a special car, thus handcuffed and chained together. On de- 
training at the North Station, the handcuffed and chained aliens were 
exposed to newspaper photographers and again exposed at the wharf 
where they took the boat for Deer Island . . . 

As for the conduct of the raiding parties, Judge Anderson de- 
clared: 

... a mob is a mob whether made up of government officials acting 
under instructions from the Department of Justice, or of criminals and 
loafers and vicious classes. 

Reports varied as to the total number of arrests. According to 
the New York World of January 3, "2,000 Reds" involved in a 

17 



"vast working plot to overthrow the government" had been 
rounded up. Banner headlines in the Neuo York Ti?nes proclaimed: 
"REDS PLOTTED COUNTRY- WIDE STRIKE-Arrests Exceed 
5000, 2635 Held." Senator Thomas J. Walsh of Montana, a dis- 
tinguished lawyer well known for the integrity and carefully 
documented accuracy of his public utterances, later declared that 
more than 6,000 men and women had been arrested in the raids. . . . 

"Approximately 3,000 of the 3,600 ahens * taken into custody 
during the recent nationwide round-up of radicals are perfect cases 
for deportation," J. Edgar Hoover, the Special Assistant to the 
Attorney General, told the press a few days after the raids. The 
deportation hearings and shipment of "Reds" from the country, he 
promised, would be handled as expeditiously as possible. 

"Second, third and as many other Soviet Arks as may be neces- 
sary," said Hoover, "will be made ready as the convictions proceed, 
and actual deportations will not wait for the conclusion of all the 
cases." t 

Hundreds of aliens and citizens were taken into custody without 
arrest warrants. Private homes were invaded and searched without 
search warrants. Personal belongings were seized and carted off. 
Many of the innocent men and women jailed were held incommuni- 
cado and not permitted to secure legal counsel or even to contact 
their friends and relatives. 

"If I had my way," State Secretary Albert P. Langtry of Massa- 

* This figure of 3,600 arrests was one of several figures given out by Justice 
Department officials. 

t In later years when J. Edgar Hoover as FBI chief had become a national 
figure, he vigorously denied he had played an active part in the Palmer raids 
and declared he had wholeheartedly opposed them at the time they occurred. 
"I deplored the manner in which the raids were executed then, and my posi- 
tion has remained unchanged," Hoover told Bert Andrews of the New York 
Herald Tribune in a written statement which was published in that paper on 
November 16, 1947. 

Had former Attorney General Palmer been alive in 1947, he would probably 
have been somewhat surprised at Hoover's statement. When Palmer appeared 
in 1920 before the House Rules Committee and in 1921 before the Senate 
Judiciary Committee, on occasions when both committees were investigating 
the raids, his special assistant, J. Edgar Hoover, sat at his side and frequently 
prompted the Attorney General on answers. 

When Senator Thomas Walsh at the Judiciary Committee hearings asked 
Attorney General Palmer how many search warrants had been issued for the 
raids, Palmer replied: "I cannot tell you, Senator, personally. If you would 
like to ask Mr. Hoover who was in charge of this matter, he can tell you." 

18 



chusetts said of the men and women who had been taken into cus- 
tody, "I would take them out in the yard every morning and shoot 
them, and the next day would have a trial to see whether they were 
guilty." 

The super-patriotic author, Arthur Guy Empey, declared: 

*'What we want to see is patriotism reducing Bolshevik Hfe limit. 
The necessary instruments can be obtained in your hardware store. 
My motto for the Reds is S.O.S.— ship or shoot." 

The terror, lawlessness and violence of the raids were accepted 
with marked equanimity by most American newspapers. As an edi- 
torial in Editor and Publisher subsequently stated: "When Attorney 
General Palmer started his so-called 'radical raids' so many news- 
papers entered into the spirit of that infamous piece of witch-hunt- 
ing that the reputation of the American press suffered heavily." 

Exemplifying the general attitude of the American press at the 
time was an editorial in the New York Times on January 5, 1920, 
which read in part: 

If some or any of us, impatient for the swift confusion of the Reds, 
have ever questioned the alacrity, resolute will and fruitful, intelligent 
vigor of the Department of Justice in hunting down these enemies of 
the United States, the questioners have now cause to approve and 
applaud . . . 

This raid is only the beginning. It is to be followed by others. With- 
out notice and without interruption, the department will pursue and 
seize the conspirators against our Government ... Its further activities 
should be far-reaching and beneficial. 

Just how far-reaching these activities of the Justice Department 
became in the postwar period was described some years later in an 
article in the New Republic magazine: 

At that dark period, Hoover compiled a list of half a million persons 
suspected as dangerous because of the "ultra-radicalism" of their eco- 
nomic or political beliefs or activities. The equivalent of one person out 
of every 60 families in the United States was on the list. Hoover beat 
out Heinrich Himmler by 14 years. 

The compilation of huge proscribed lists of "dangerous citizens" 
was not the only way in which J. Edgar Hoover and his associates 
foreshadowed techniques subsequently employed by the secret 
police of Nazi Germany. There were other, even more sinister re- 
semblances. 

19 



4- Chambers of Horror 

If the treatment of the men and women arrested in the Palmer 
raids was shockingly brutal, it was mild compared to what they 
endured in the seclusion of the jails in which they were confined. 

At hastily improvised "immigration board" hearings to determine 
whether or not the arrested aliens should be deported, Justice De- 
partment agents and Labor Department officials acted as witnesses, 
prosecutors and judges. Accused of seditious acts by a motley assort- 
ment of labor spies, agents provocateurs and Federal operatives, 
deprived of legal counsel of their own, and frequently unable to 
speak or understand the English language, the prisoners were wholly 
at the mercy of their inquisitors. Many, without knowing what they 
were doing, signed "confessions" that they had been plotting to 
overthrow the Government of the United States. Others were com- 
pelled by third degree methods to admit their "guilt." In some 
cases, where prisoners steadfastly refused to be cowed, their signa- 
tures were forged to incriminating documents. . . . 

Appalling conditions prevailed at the local jails, military barracks 
and "bull pens" where the prisoners were held. Invariably, the pris- 
oners' quarters were squalid, frightfully overcrowded and lacking 
in adequate sanitation facilities. The prisoners, young and old, men 
and women, alike, were frequently compelled to sleep on prison 
floors without bedding or mattresses. 

Hundreds of prisoners were viciously beaten and tortured by 
Justice Department agents and local police officials. 

A group of sixty-three workers who had been arrested without 
warrants in the raids at Bridgeport, Connecticut, and imprisoned at 
Hartford, without even knowing the charges against them, were 
kept in jail for five months. Fed on scanty noisome rations and 
given no opportunity for exercise, they were allowed out of their 
cells for three minutes each day to wash their face and hands in 
filthy sinks. Once a month they were permitted to bathe in a tub. 

Periodically the Hartford prisoners were "interrogated" by Fed- 
eral operatives who beat them savagely and not infrequently threat- 
ened to kill them if they did not confess to being "revolutionaries." 

One of the Hartford prisoners, a thirty-three year old Russian- 
born machinist named Simeon Nakwhat, subsequently related in a 
sworn affidavit: 

20 



In the thirteenth week of my confinement Edward J. Hickey [a De- 
partment of Justice agent] came into my cell and asked me to give him 
the address of a man called Boyko in Greenpoint, Brooklyn. I do not 
know this man and told Hickey that I did not. Hickey thereupon struck 
me twice with his fist, once in the forehead and once in the jaw, where- 
upon I fell. He then kicked me and I became unconscious. Hickey is a 
big man, weighing two hundred pounds. For three weeks after this I 
suffered severe pain where I was kicked in the back . . .* 

Another prisoner, a tailor from Bridgeport who had come to the 
Hartford jail to visit an imprisoned friend and had been promptly 
seized and locked up himself, later stated: 

Six men, I presume agents of the Department of Justice, questioned 
me and threatened to hang me if I did not tell them the truth. In one 
instance, an agent of the Department of Justice . . . brought a rope and 
tied it around my neck, stating that he will hang me immediately if I 
do not tell him who conducts the meetings and who are the main work- 
ers in an organization called the Union of Russian Workers . • • 

There were four rooms at the Hartford jail which came to be 
known with dread by the prisoners as the "punishment rooms." 
Identical in construction, approximately nine feet long by four feet 
wide, they were built of solid concrete, were without windows and 
devoid of all furniture. Alleged anarchist or communist prisoners 
were locked, often ten to fifteen at a time, in one of these Httle, 
unventilated and unhghted rooms. The heating system was then 
turned up, and the prisoners were kept in pitch darkness and almost 
unendurable heat for periods lasting from thirty-six to sixty hours. 
Every twelve hours the cell door was momentarily opened and the 
prisoners given a glass of water and a piece of bread • . . 

This is how Peter Musek, one of those tortured by the "punish- 
ment room" method, described the ordeal: 

On February 6 ... I was taken out of my cell and . . . brought to the 
basement of the jail and put into a ceU high enough for me to stand up 
in and long enough for me to make about two and a half paces. When 
I was put in the cell, I heard the jailer say to somebody, "Give this man 
heat." When I came into the cell it was quite warm. Soon thereafter 
the floor became hot and I nearly roasted. I took my clothes off and 
remained absolutely naked but the heat was unbearable. ... I heard the 
man say again, "Give him some more heat." ... I could not stand on 

^This and other sworn statements in this section are taken from the treatise. 
To the American People-Report Upon the Illegal Practices of the Department 
of the United States Department of Justice, which was made public in May 
1920 by twelve outstanding American jurists. For further data on this Report, 
see pages 27 ff. 

21 



my feet any longer and I remained on the floor up to eight in the 
morning, when the door opened and a man handed me a glass of water 
and threw a piece of bread into the cell. I asked him to bring me a 
doctor for I felt that I was going to die. But he laughed at me, stating 
that I was strong enough to hold out, and locked the door again ... I 
felt terrible pain in my chest and half of my body was almost roasted 
from contact with the hot floor. I remained in the cell up until about 
eight o'clock of the night of February 8 • . . The cell was so dark I 
could not even see my own hands. 

Like a number of other prisoners, Peter Musek had been arrested 
simply because he came to the jail to visit a friend. No charges 
were preferred against Musek and on March i8, 1920, he was set 
free . . . 

At Detroit, 800 men and women who had been rounded up in 
the raids were packed into a windowless corridor on the top floor 
of the Federal Building. There was one toilet at the disposal of all 
the prisoners. They had no bedding except newspapers, overcoats, 
and other pieces of clothing. The only food the prisoners received 
was that brought them by their relatives and friends. 

On the seventh day of their imprisonment, 128 of the prisoners 
at the Detroit Federal Building were taken to the Municipal Build- 
ing and put in a cellar room measuring 24 by 30 feet. Their food 
rations here consisted of coffee and two biscuits twice a day. 

When Mayor James Couzens of Detroit informed the City Coun- 
cil that such conditions were "intolerable in a civihzed city," the 
bulk of the prisoners were transferred to an old army barracks at 
Fort Wayne. 

Among the most diabolic methods of torturing the men im- 
prisoned at Fort Wayne was forcing them to witness the maltreat- 
ment of their own wives and children who came to visit them. 

One such case involved a prisoner named Alexander Bukowetsky. 
Bukowetsky was taken from his cell one day and told that his wife 
and two children, a twelve-year-old girl and a boy of eight, had 
come to see him. He was instructed to report to an office in the 
building. On reaching the office, Bukowetsky was seized and held 
by a guard. Two other guards dragged Bukow^etsky's wife and 
children out of the office and into the corridor. What then hap- 
pened was later described by Bukowetsky: 

My wife and children were pulled out of the room by their arms. • . . 
They were pulled into the hall by Sergeant Mitchell and then he 
brought my wife close to me and hit her with his fist both on her back 

22 



and over her breast. My wife and children began to cry, and I asked 
Sergeant Mitchell what he was trying to do, if he was trying to provoke 
me so that I would start to fight. Instead of answering me he struck her 
several more times and made her fall to the floor. With that he grabbed 
a gun and at the same time Ross took a club and then one other guards- 
men, Clark, came in and he too with the butt of his pistol struck me 
over the head ... I fell with blood streaming all over my body. 

My little girl, Violet, saw this and ran to the guardsmen and with her 
hand smoothed his face crying, "Please don't hurt my father and 
mother," but with all this, seeing the blood on the floor from my head 
and my wife and children crying, he paid no attention to us. 

When Bukowetsky staggered to his feet and started to run up a 
nearby stairway, one of the guards raised his gun and fired at the 
fleeing man. The shot went wild, missing Bukowetsky and wound- 
ing another prisoner . . . 

Bewildered, desperate with anxiety, and distraught from constant 
terrorization and torture, not a few of the men and women im- 
prisoned during the Palmer raids inevitably broke under the fearful 
strain. 

At Deer Island, one man committed suicide by hurling himself 
from a fifth floor window. Others at Deer Island and elsewhere 
went insane. 

Six of the prisoners at Ellis Island died. 

One prisoner, after being held illegally and incommunicado for 
eight weeks and tortured by Justice Department agents at the Park 
Row building in New York City, flung himself to his death— or was 
pushed— from a window on the fourteenth floor.* 

The total number of deaths, permanently injured, and victims 
of irreparable emotional shock will never be known. 

No member of the Justice Department was ever brought to trial 
or punished for these atrocious crimes committed during the Palmer 
raids under the pretense of defending the Constitution of the 
United States. 



* This prisoner was an Italian anarchist printer named Andrea Salsedo. For 
further mention of this case, see page 94. 



23 



Chapter ii 
DARK TIDE 



Mr. Chairman, the spectre of Bolshevism is haunting the 
world. Everybody— statesman, businessman, preacher, pluto- 
crat, newspaper editor— keeps on warning the world that it is 
about to be destroyed by Bolshevism . . . But the worst of it 
is that every movement, every new idea, every new sugges- 
tion, every new thought that is advanced, is immediately de- 
nounced as Bolshevism. It is not necessary to argue anymore 
with a man who advances a new idea; it is enough to say 
"That is Bolshevism." 

Representative Meyer London, speaking 
on the floor of the U, S, Congress, 
February ii, ipi$. 



I. The Nature of the Crime 

"At present there are signs of an overthrow of our Government 
as a free government," Louis Freeland Post, the Assistant U. S. 
Secretary of Labor, wrote in his diary on New Yearns Day, 1920. 
"It is going on under cover of a vigorous * drive* against 'anarchists,' 
an 'anarchist' being almost anybody who objects to government 
of the people by tories and for financial interests . . ." 

Seventy-one years old, small and sturdily built, with an unruly 
black beard and shaggy head of hair, Louis F. Post was a man whose 
boundless energy and inquiring mind belied his age. During his 
remarkably varied career, he had been in turn a lawyer, journalist, 
teacher, lecturer, essayist, historian and politician. A nonconformist 
in politics and former advocate of the single tax and other re- 
formist movements. Post was a fighting liberal, an inveterate cham- 
pion of progressive causes. 

Panic and hysteria had no appeal for the elderly Assistant Secre- 
tary of Labor. As far as Post was concerned, Attorney General 

24 



Palmer's crusade to rid America of "Reds" was a "despotic and 
sordid process." 

Suddenly, and quite unexpectedly, Post found himself in a posi- 
tion to do something about it . . . 

In March, John W. Abercrombie, the Solicitor for the Depart- 
ment of Labor who had been serving as the Acting Secretary dur- 
ing Secretary L. B. Wilson's illness, announced he was taking a 
leave of absence. 

Overnight, Post assumed the authority of Secretary of Labor. 

The scholarly, liberal-minded septuagenarian immediately under- 
took a thorough investigation of the Justice Department "Red 
records" on which the issuance of arrest warrants and the deporta- 
tion decisions had been based. "Upon plunging into this clutter . . . 
I was amazed at the facts disclosed," Post later wrote in his book, 
The Deportations Delirium of Niiietee?! Twenty, "The whole *red 
crusade' stood revealed as a stupendous and cruel fake. Had the 
facts as they were then thrust upon my attention been generally 
known, public condemnation of the Department of Justice and its 
cooperating agencies would have been sure and swift." 

To supplement his findings, Post dispatched a number of Labor 
Department investigators into the field to get first-hand information 
on the treatment of persons jailed during the Palmer raids. He was 
soon receiving one shocking report after another. 

Two of Post's investigators visited Deer Island. Reporting back 
to their chief, they described how the prisoners had arrived at this 
place of detention. "The chains made a pile about that high," said 
one of the investigators, holding his hand about three feet above 
the floor. 

"Pile of chains!" exclaimed Post. 

The other investigator explained, "The Department of Justice 
marched their prisoners through the streets of Boston in chains. 
We know it, for we saw photographs of the chained prisoners 
lined in a group." He paused, then added wryly, "Nothing was lack- 
ing in the way of display but a brass band." 

As soon as he had in hand detailed evidence of the illegality of 
the arrests and the deportation proceedings, Post went into action. 
He cancelled 2,500 of the warrants and ordered the prisoners set 
free . , . 

Immediately, Post was caught up in what he subsequently de- 

25 



scribed as a "hurricane" of Congressional politics and newspaper 
vilification." 

The New York Times, declared that the Assistant Secretary of 
Labor had "let loose on the country pubHc enemies, some of them 
fugitives from justice." Numerous newspapers demanded Post's 
removal from office. 

In Congress, the Chairman of the House Committee on Immigra- 
tion and Naturalization, Representative Albert Johnson, charged that i 
Post was the ringleader of "Reds" who were "boring from within" 
the Labor Department. A group of congressman initiated impeach- 
ment proceedings against the Assistant Secretary of Labor. 

Old as he was. Post had lost none of his readiness to battle for a 
good cause, no matter what the odds. But in connection with the 
impeachment proceedings, Post knew he would need at his dis- 
posal the very best legal talent. And how, he wondered, could a man 
of his modest means afford a high-priced lawyer? 

Late one afternoon that April, while Post was sitting in his office 
at the Labor Department pondering his dilemma, a businessman 
with whom Post was casually acquainted entered the room. His 
name was E. T. Gumlach. On the previous evening, Gumlach ex- 
plained, he had learned of Post's plight. He was himself of a de- 
cidedly conservative bent, said Gumlach, not a man to espouse 
radical causes— but he was an American who beUeved in justice . . . 

Gumlach came to the point of his visit. "In these circumstances," 
he said, "you will need money, need it bad, and I am here to tell 
you to draw on me at sight for ten thousand dollars.'* 

Recovering from his astonishment, Post told Gumlach he would 
accept the offer because he knew "the spirit in which it was 
offered." 

With funds advanced by Gumlach, Post retained as counsel 
Jackson H. Ralston, one of the country's most eminent attor- 
neys. . . • 

On May 7, 1920, Post was called for questioning before the 
House Rules Committee. 

The hearing quickly took a dramatic and wholly unexpected turn. 
In the person of the erudite mettlesome and passionately democratic 
old man, the inquisitorial congressmen encountered far more than 
their match. Deftly parrying their questions, speaking with a fer- 
vent eloquence and incontrovertibly documenting every statement 
he made, Post transformed his own trial into a trial of his accusers. 
26 



The members of the Rules Committee had less and less to say as 
Post vividly recounted the numerous violations of constitutional 
law during the Palmer raids, the hundreds of illegal arrests, the law- 
less searches without warrants and the inhuman treatment of the 
arrested. It was the duty of American citizens and particularly 
Government officials. Post told the Committee, to protect the rights 
of the alien. "We should see to it that no injustice is done him," 
Post forcefully declared. "If he has a domicile here, he is entitled 
to the protection of our Constitution, of our laws . . ." 

Describing Post's testimony, Mrs. William Hard wrote in the 
New Republic: 

As he stood there, unbowed, ungrayed by his seventy-three years, (*) 
there seemed to pass forms, shadowy, real. They were the figures of the 
ignorant, the hampered, the misunderstood, the Aliens. Back of them 
were the terrified upholders of our Government. And back of them 
there seemed, shadowily, to be the Committee of Americanizers that sit 
in high places. But in the foreground, unterrified by the unreined emo- 
tionalism of either, stood a little man, cool but fiery, who set his belief 
in the Constitution of the country above all fears, and who could amass 
facts . . . 

The little man and his facts won out. The Rules Committee de- 
cided to call off the impeachment proceedings. 

"The simple truth," commented the New York Post, "is that 
Louis F. Post deserves the gratitude of every American for his 
courageous and determined stand in behalf of our fundamental 
rights. It is too bad that in making this stand he found himself at 
cross-purposes with the Attorney General, but Mr. Palmer's com- 
plaint lies against the Constitution and not against Mr. Post." 

There were other patriotic and courageous citizens who recog- 
nized, like Louis F. Post, that behind the facade of the anti-Red 
crusade an assault was being made on the very tenets of American 
democracy. 

In May 1920, twelve of the most distinguished attorneys in the 
United States published a profoundly significant, sixty-three page 
pamphlet entitled To The American People— Report Upon the Il- 
legal Practises of the United States Department of Justice. Among 
the authors of this report were such noted jurists as Roscoe Pound, 
Dean of the Harvard Law School; Felix Frankfurter, Professor of 

* Mrs. Hard was mistaken about Post's age. He was seventy-one years old 
when he testified. 

27 



Law at Harvard Law School; Zechariah Chafee, Jr., one of the 
nation's outstanding authorities on constitutional law; and Francis 
Fisher Kane, who had resigned from his post as U. S. District At- 
torney in Philadelphia in protest against the Palmer raids. 

The report of these attorneys contained a painstakingly docu- 
mented account of the unconstitutional activities of the Justice 
Department at the time of the Palmer raids, and a penetrating analy- 
sis of the ominous implications of these activities. 

The report opened with these words: 

For more than six months we, the undersigned lawyers, whose sworn 
duty it is to uphold the Constitution and Laws of the United States, 
have seen with growing apprehension the continued violation of that 
Constitution and breaking of those Laws by the Department of Justice. 

Under the guise of a campaign for the suppression of radical activities, 
the office of the Attorney General . . . has committed illegal acts . . . 

The report charged that in order to convince the American public 
of the existence of a "Red plot" against the Government and "to 
create sentiment in its favor, the Department of Justice has con- 
stituted itself a propaganda bureau, and has sent to newspapers 
and magazines of this country quantities of material designed to 
excite public opinion against radicals." 

Proceeding to a comprehensive study of the Palmer raids, the 
report catalogued various violations of the Constitution by the Jus- 
tice Department, under such headings as: Cruel and Ufiusual Pun^ 
ishmenty Arrests Without Warrants, U7ireaso7iable Searches and 
Seizures, Compelling Persons to be Witnesses Against Themselves, 

"The American People," stated the lawyers in a section entitled 
Provocative Agents, "has never tolerated the use of undercover 
provocative agents or 'agents provocateurs', such as have been 
famihar in old Russia or Spain." But the Justice Department had 
been using such agents for "instigating acts which might be called 
criminal . . ." 

Concluding, the twelve eminent attorneys declared: 

Free men respect justice and follow truth, but arbitrary power they 
will oppose until the end of time . . . 

It is a fallacy to suppose that, any more than in the past, any servant 
of the people can safely arrogate to himself unlimited authority. To pro- 
ceed upon such a supposition is to deny the fundamental theory of the 
consent of the governed. Here is no question of a vague and threatened 
menace, but a present assault upon the most sacred principles of our 
Constitutional liberty. 

28 



An equally scathing indictment appeared in a lengthy report 
which was inserted into the Congressional Record by Senator 
Thomas J. Walsh, the chairman of a Senate committee investigating 
the practises of the Justice Department. The report was entitled 
The Illegal Practises of the Depamnent of Justice, 

"Those who conceived the procedure here criticized," stated this 
Senate report, "were oblivious of the letter and wholly unapprecia- 
tive of the spirit of the Bill of Rights." 

But the sensational disclosures and grave admonitions of men like 
Louis F. Post, Senator Thomas J. Walsh, and the twelve attorneys 
who authored the report. To the American People, were largely 
ignored or grossly distorted by the press. Their sober voices were 
drowned out in a rising tide of anti-radical hysteria, prejudice and 
repression. 

2. "The Foulest Page" 

The months of inflammatory agitation against the "Reds," the 
ominous warnings by Government oflicials of imminent revolution, 
the blood-curdling bomb plots, and the panic and terror surround- 
ing the Palmer raids had had their effect on the country as a whole. 
Fear of the Red Menace pervaded the nation like a contagious mad- 
ness. 

"Innumerable . . . gentlemen now discovered that they could 
defeat whatever they wanted to defeat by tarring it conspicuously 
with the Bolshevist brush," historian Frederick Lewis Allen later 
wrote. "Big-navy men, believers in compulsory military service, . . , 
book censors, Jew-haters, Negro-haters, landlords, manufacturers, 
utility executives ... all wrapped themselves in the Old Glory and 
the mantle of the Founding Fathers and allied their opponents with 
Lenin." 

Newspapers and magazines overflowed with hair-raising accounts 
of "Bolshevik atrocities" in Russia and sinister plots of "paid Soviet 
agents" in America. On January 8, 1920, the nation's press head- 
lined the news that Justice Department agents were "hunting down" 
the Soviet representative to the United States, Ludwig C.A.K. 
Martens, who was reported to be financing a "conspiracy to over- 
throw the American Government." * Two days later, the House of 

• Acting on the request of the Justice Department, the Department of Labor 

29 



Representatives refused to seat Socialist Congressman Victor Berger 
of Milwaukee declaring that his "continued presence" in the Lower 
House constituted "a menace" to that legislative body. 

Soon afterwards, the New York State Assembly announced the 
expulsion of five Socialist members on the grounds that they were 
affiliated with "a disloyal organization composed exclusively of 
traitors." Commented the New York Times regarding their expul- 
sion: "It was an American vote altogether, a patriotic and conserva- 
tive vote." 

More than seventy Federal sedition bills were under consideration 
in Congress. Some of these bills stipulated a maximum penalty of 
twenty years imprisonment for "unlawful discussion," and the de- 
naturalization and deportation of naturalized citizens for similar 
offenses. Senator Kenneth D. McKellar of Tennessee called for the 
establishment of a penal colony in Guam to which "subversive" 
native-born Americans might be deported. 

Almost every state had enacted criminal syndicalist laws making 
it a felony to advocate "revolutionary" changes in American so- 
ciety. The West Virginia statute defined as criminal any teachings 
in sympathy with "ideals hostile to those now or henceforth exist- 
ing under the constitution and laws of this state." 

In thirty-two states it had become a criminal offense to display 
publicly a red flag. Some of these states provided penalties for the 
use of any emblem of any color "distinctive of bolshevism, anar- 
chism, or radical socialism." In several states the wearing of a red 
tie constituted a misdemeanor ... 

In schools and universities throughout the land investigations of 
the "loyalty" of teachers and students were instigated by local and 
state authorities. On the recommendation of the Lusk Committee 
Investigating Seditious Activities, the New York State Legislature 
passed a law requiring "teachers in public schools to secure ... a 
special certificate certifying that they are of good character and 
that they are loyal to the institutions of State and Nation." The bill 
read in part: 

had issued a warrant for Marten's arrest for deportation. The brief against 
Martens was prepared by J. Edgar Hoover. 

In December 1920, Secretary of Labor Wilson ruled that Martens **was not 
proved to have done anything unlawful as an individual." The illegal deporta- 
tion warrant which Hoover had obtained was cancelled. In January 192 1, 
Martens returned to Russia of his own accord. 

30 



No person who is not eager to combat the theories of social change 
should be entrusted with the task of fitting the young and old of this 
State for the responsibilities of citizenship. 

Well-known liberals of the day like Jane Addams, Rabbi Stephen 
S. Wise, Oswald Villard and Felix Frankfurter were widely de- 
nounced as "tools of the Reds." Charles Chaplin, Will Rogers, 
Norma Talmadge and other actors and entertainers were accused 
of being "Communists." According to the Better American Federa- 
tion of California, Sinclair Lewis' novel, Main Street, was "subver- 
sive" because it "created a distaste for the conventional good life 
of the American." 

An Indiana jury, after deliberating two minutes, acquitted a man 
who had murdered an alien for shouting, "To hell with the United 
States" . . . 

In this miasmic climate, vigilante groups of self-styled patriots 
were mushrooming in every corner of the land. The white plague 
of the Ku Klux Klan began swiftly spreading through Georgia, 
Indiana, Colorado, Ohio and a score of other states; and every 
month tens of thousands of new members joined the hooded ter- 
rorists who were pledged to purge America of "Catholics, Com- 
munists, Jews and aliens." * In Michigan, the Dearborn Independent, 

* Organized during the Reconstruction era of the 1870's to deprive Negroes 
of rights won in the Civil War, the Ku Klux Klan had been dormant from 
the turn of the century until 19 15, when the secret terrorist society was re- 
vived under the leadership of a former preacher and traveling salesman named 
William J. Simmons. In 1920 the membership of the Klan soared to 700,000. 
By 1925 its members numbered almost 9,000,000; and the Klan had become a 
national power. 

With its vast secret apparatus— the Invisible Empire— the Klan came to domi- 
nate the political life of Texas, Georgia, Arkansas, Oklahoma, Indiana, Oregon, 
and other states. In 1924 Klan-sponsored candidates won the gubernatorial 
elections in Kansas, Indiana and Maine and the senatorial races in Oklahoma 
and Colorado. 

"The rise of the Ku Klux Klan from 1922 to 1925 was no accident," Roger 
N. Baldwin, director of the American Civil Libenies Union, later wrote. "Its 
organized intolerance was only a transfer to the field of racial and religious 
conflict of the domination of the ruling economic class. ..." 

In large sections of the country, the hooded Klansmen terrorized the popu- 
lation with crossburnings, nightriding, intimidatory parades, floggings, mutila- 
tions and lynchings. In Louisiana, Klansmen killed some victims with a steam 
roller. In Oklahoma, an investigation revealed over 2,000 cases of violence by 
the Klan in two years. There were no arrests or prosecutions in connection 
with these crimes. 

In the late 1920's, after a series of newspaper exposes and public investiga- 
tions, the membership of the Klan and its influence underwent a rapid decline. 
The secret society, however, began to grow again in the middle 1930's when 

31 



a weekly newspaper published by the famous auto magnate, Henry 
Ford, launched a nationwide campaign of vitriolic anti-Semitic 
propaganda with a front page editorial headlined, "The International 
Jew: the World's Problem"; and shortly thereafter Ford's news- 
paper began serializing the infamous anti-Semitic forgery, The 
Protocols of the Wise Men of Zion. 

Appearing before the Senate Judiciary Committee in Washing- 
ton that summer. Attorney General A. Mitchell Palmer declared: 
"I apologize for nothing that the Department of Justice has done 
... I glory in it. I point with pride and enthusiasm to the results 
of that work; and if . . . some of my agents out in the field were 
a little rough and unkind, or short and curt, with these ahen agita- 
tors ... I think it might be well overlooked in the general good 
to the country which has come from it." 

The Attorney General recommended that Congress pass a law 
stipulating the death penalty for "dangerous acts" of peactime 
sedition . . , 

The round-up of "Soviet spies" and "dangerous radical aliens" 
continued. Among those arrested— taken into custody on May 5 in a 
small town near Boston and charged with robbery and murder- 
were two obscure Italian anarchists whose names were destined to 
become world famous: Nicola Sacco and Bartolomeo Vanzetti.* 

In Boston that same May, an undistinguished Republican Senator 
told a group of businessmen: "America's present need is not heroics 
but healing, not nostrums but normalcy, not revolution but restora- 
tion." 

The Senator was Warren G. Harding of Ohio. 

"America is no longer a free country, in the old sense; and liberty 
is, increasingly, a mere rhetorical figure . . . ," wrote Katherine 
Fullerton Gerould in an article in Harper's Magazi?ie. "On every 
hand, free speech is choked off in one direction or another. The 
only way in which an American citizen who is really interested in 
the social and political problems of his country can preserve any 
freedom of expression, is to choose the mob that is most sympathetic 
to him and abide under the shadow of the mob." 



its members played a leading role in combatting the growth of industrial trade 
unions. 
* For details on the case of Sacco and Vanzetti, see pages 93 ff. 

32 



During the course of a sermon delivered at the Cathedral of St. 
John the Divine in New York City, Bishop Charles D. WilHams of 
the Protestant Episcopal Diocese of Eastern Michigan declared: 

Businessmen are seeing "red." They commenced seeing "red" with 
their drive on radicalism. They branded everyone who had a progressive 
thought as a "parlor bolshevist," and persons have been secretly arrested 
by paid spies on manufactured information and deported without cause. 

Bishop Williams added: 

The very principles of Americanism have been undermined by hys- 
teria and panic. It is the foulest page in American history! 



33 



Chapter iii 
BALANCE SHEET 



The postwar wave of reaction in the United States cost the Ameri- 
can people many of their most cherished democratic rights. It 
fomented nationwide intolerance, hysteria, hatred and fear. Thou- 
sands of innocent persons had been arrested, jailed and tortured. 
Scores had died in labor struggles, lynchings and race riots. Never 
before had terror and repression been so widespread in the nation. 
What were the causes behind this "foulest page in American 
history?" 

Federal authorities explained the Palmer raids and other postwar 
repressions as necessary measures to protect the nation against a 
"Communist plot" to overthrow the United States Government. 

Actually, the crusade against Communism played a role of sec- 
ondary importance. The left-wing forces in the United States at 
the time were extremely few in number. According to an estimate 
made late in 19 19 by Professor Gordon S. Watkins of the Univer- 
sity of Illinois, the combined membership of the Socialist, Com- 
munist and Communist Labor Parties was between eighty and one 
hundred thousand. "In other words . . . ," writes Frederick Lewis 
Allen in Only Yesterday, "the Communists could muster at the 
most hardly more than one-tenth of one per cent of the adult 
population; and the three parties together . . . brought the pro- 
portion to hardly more than two-tenths of one per cent, a rather 
slender nucleus, it would seem, for a revolutionary mass movement." 

Allen indicates some of the more compelhng motives behind the 
postwar "anti-Communist" drive: 

. . . the American businessman . . . had come out of the war with his 
fighting blood up, ready to lick the next thing that stood in his way. . . . 
Labor stood in his way and threatened his profits. ... he developed a 
fervent belief that 1 00-percent Americanism . . . implied the right of 

34 



the businessman to kick the union organizer out of his workshop. ... he 
was quite ready to believe that a struggle of American laboring-man for 
better wages was the beginning of an armed rebellion directed by Lenin 
and Trotsky. . . .* 

American workers who went on strike in defense of their unions 
and living standards were widely branded as "Reds" and "pawns of 
Bolshevik agents." 

"To smash these strikes," writes Henry M. Morals and William 
Cahn in their biography, Gene Debs, "the cry of a 'red plot' was 
raised." 

The Associated Employers of Indianapolis called for the im- 
mediate passage and "enforcement of laws to check the radicalism 
of the A. F. of L. and the Bolshevists . . ." 

The stratagem of the "Red Menace" was well adapted to the 
mood of the time. As Selig Perlman and Philip Taft state in The 
History of Labor in the United States: 

For the large strata of the general population, the wartime emotion 
was now ready to be transferred into an anti-red hysteria, with strikes 
and wage demands often held manifestations of "redness." 

The chief objectives of the Palmer raids and the postwar crusade 
against "Communism" were to crush the organized labor move- 
ment, drive down wages, restore the open shop on a national scale, 
and effect greater profits for the large corporations. 

* During the war itself, there had been harsh, widespread repressions against 
those sections of the labor movement whose demands were regarded as "unrea- 
sonable," and against left-wing elements opposed to America's participation 
in the war on the grounds that it was an imperialist war. Throughout the 
country, members of the IWW (Industrial Workers of the World) were 
subjected to intense persecution by law-enforcement agencies and vigilante 
mobs, were brutally beaten, jailed and lynched. Militant trade union leaders 
and radicals were convicted on trumped-up charges and imprisoned. 

The two most famous working class leaders to be jailed during the war 
were Thomas J. Mooney and Eugene V. Debs. 

An outstanding trade unionist in California, Mooney was framed on a bomb- 
ing charge in San Francisco in July 191 6 and sentenced to be hanged. Nation- 
wide protests resulted in the commutation of the sentence to life imprison- 
ment. In 1939, after serving twenty-two years at San Quentin Penitentiary, 
Mooney was granted an unconditional pardon by Governor Culbert Olson of 
California and released. 

The renowned Socialist and former leader of railroad workers, Eugene V. 
Debs, was sentenced in September 191 8 to ten years imprisonment on charges 
of violating the Espionage Act, because of his opposition to America's partici- 
pation in the war. After serving three years, Debs was pardoned by President 
Harding in December 192 1. (In 1920, while still in prison, Debs received 

35 



The Department of Justice shared the objectives of big business. 
From the first, the Palmer raids and the "anti-radical" operations 
of J. Edgar Hoover's General Intelligence Division of the Bureau 
of Investigation were aimed chiefly at the trade unions and the 
labor movement. 

According to the subsequent testimony of Attorney General A. 
Mitchell Palmer before the House Rules Committee, a strike in 
June 1919 at the Ansonia, Connecticut, branch of the American 
Brass Company had been "instituted entirely by the foreigners" 
and was dealt with in this effective fashion: 

A number of the most active leaders were arrested on deportation 
warrants; some were included in the passenger list of the Buford . . . 
However, a number of prominent agitators who were citizens continued 
their efforts. The strike failed after federal and state prosecutions. 

The Attorney General went on to tell the members of the Rules 
Committee that the great steel strike of 19 19 was "terminated . . . 
through the action of the Department of Justice." 

On January 3, 1920, the New York Times offered this account 
of the Justice Department preparations for the Palmer raids of the 
previous night: 

The action, though it came with dramatic suddenness, had been care- 
fully mapped out, studied and systematized . . . For months. Department 
of Justice men, dropping all their work, had concentrated on the Reds. 
Agents quietly infiltrated into the radical ranks . . . and went to work, 
sometimes as cooks in remote mining colonies, again as steelworkers, and 
when the opportunity presented itself, as agitators of the wildest type. 
. . . several of the agents, 'under-cover' men, managed to rise in the 
radical movement and become, in at least one instance, the recognized 
leader of the district . . . 

During the steel strike, coal strike, and threatened railway strikes, 
secret agents moved constantly among the more radical of the agitators 
and collected a mass of evidence. For months an elaborate card index 
of the utterances, habits, and whereabouts of these men had been made. 
From time to time the Department of Justice will, from now on, round 
up these disturbers and either send them to the courts or out of the 
country. 

Throughout this period, the Bureau of Investigation worked in 
intimate, secret collaboration with the labor espionage apparatuses 
of the large corporations. 

920,000 votes as the candidate of the Socialist Party for President of the 
United States.) 

36 



"The whole 'red' crusade," wrote Louis F. Post in The Deporta- ' 
tion Delirium of Nineteen-Tiventy "seems to have been saturated 
with 'labor spy' interests— the interests, that is, of private detective 
agencies ... in the secret service of masterful corporations . . . 

The Commission of Inquiry of the Interchurch World Move- 
ment recorded in its Report of the Steel Strike of 19 19: 

Federal immigration authorities testified to the commission that raids 
and arrests, for "radicalism," etc., were made especially in the Pittsburgh 
District on the denunciations and secret reports of steel company 
"under-cover" men, and the prisoners turned over to the Department 
of Justice. 

According to one Federal agent operating in the Pittsburgh area, 
who testified before the Commission of Inquiry of the Interchurch 
World Movement, "ninety per cent of all the radicals arrested 
and taken into custody were reported by one of the large corpora- 
tions, either of the steel or coal industry . . ." 

Complementing the drive against organized labor was the con- 
certed campaign against the entire progressive movement. The 
essential aims of this campaign were to stifle all Hberal protest; 
crush the political opposition of the Socialist, Communist and other 
left-wing parties; intimidate champions of civil liberties; and sup- 
press the struggles of minority groups for decent living standards 
and equal rights. 

Among minority groups, the Negro people were singled out for 
special attack. While lynchings and other anti-Negro outrages were 
occurring on a nationwide scale, Attorney General Palmer com- 
piled an extensive report entitled Samples of Negro Propaganday 
which he later submitted to the House Rules Committee. "Toward 
the close of the European war," the Attorney General told the 
members of the Rules Committee, "the Department of Justice was 
confronted with considerable agitation and unrest among the 
Negroes." The Department, said Palmer, had as yet "not found 
any concerted movement on the part of Negroes to cause a general 
uprising throughout the country." . . . 

A final objective of the "anti-Communist" drive was to silence 
voices demanding an end to America's participation in the war of 
intervention against Soviet Russia and urging diplomatic recog- 
nition of the Soviet Government. As the New York Times ob- 
served on January 5, 1920 regarding "radicals" arrested during the 

37 



Palmer raids: "These Communists are a pernicious gang. In many- 
languages they are denouncing the blockade of Russia." 

"Even were one to admit that there existed any serious 'Red 
menace' before the Attorney General started his 'unflinching war' 
against it," wrote the authors of the Report Upon the Illegal Prac- 
tices of the United States Department of Justice, "his campaign has 
been singularly fruitless." Pointing out that Attorney General 
Palmer, after announcing the Justice Department possessed a list 
of 60,000 "Bolshevik suspects," had deported a total of only 281 
aliens and ordered the deportation of 529 others, the Report com- 
mented: "The Attorney General has consequently got rid of 810 
alien suspects, which, on his own showing, leaves him at least 
59,160 persons (aliens and citizens) still to cope with." 

But in terms of its real objectives, the postwar "anti-communist" 
crusade was far from fruitless. Along the entire industrial front, 
from New Jersey to California, major strikes were broken, wages 
driven down, the open shop restored and the organized labor move- 
ment reduced to a shadow of its wartime strength. The case of the 
Seamen's Union was not exceptional: its membership in 1920 had 
been 100,000; two years later, its membership was 18,000. By 1923, 
the American Federation of Labor had lost more than a million 
members. 

The success of this campaign against the labor movement was 
due not only to the enormous power of American industrial- 
financial interests, which had emerged from the war with far greater 
resources and influence than ever before, and to the extensive 
assistance rendered these interests by the Justice Department and 
other Government agencies. The success of the campaign was due 
also to major weaknesses in the labor movement. With the ex- 
ception of a few militants like Wilham Z. Foster,* the trade union 
leadership was in the hands of opportunistic, corrupt or timid of- 
ficials, who were scarcely less alarmed than the employers them- 
selves by the militancy of the workers. Red-baiting and internecine 
squabbles wracked the organized labor movement. Of the leader- 
ship of the railroad brotherhoods, the Wall Street Journal ob- 
served: 



* Historian Frederick Lewis Allen describes William Z. Foster as "the most 
energetic and intelligent of the strike organizers." 

38 



It is no paradox to say that their inability to stand shoulder to 
shoulder throughout the strike was the most fortunate thing that could 
have happened, first for the country at large and eventually for the 
investor in the railroads. 

The defeat which was suffered by the American labor move- 
ment represented at the same time a defeat for the American 
people as a whole. The nation was to pay heavily for the victory 
which big business had won. 

The anti-democratic excesses and the undermining of the pro- 
gressive movement during the years immediately following the 
Great War paved the way for one of the most shameful and dis- 
astrous eras in American history. It was to be an era of unpre- 
cedented corruption and crime in high places; an era of absolute 
domination of the Government by predatory vested interests, of 
profiteering, fraud and embezzlement on a prodigious scale, of 
ruthless and unrestrained looting of the land. 

It was to culminate in the Great Depression. 



39 



BOOK TWO: LOOTING THE LAND 



For twelve years this Nation was afflicted with hear- 
nothing, see-nothing, do-nothing Government. The Nation 
looked to the Government but the Government looked 
away. Nine mocking years with the golden calf and three 
long years of the scourge! Nine crazy years at the ticker tape 
and three long years in the breadlines! Nine mad years of 
mirage and three long years of despair! 

President Franklin D, Roosevelt, 
October 31, 1^36. 



Chapter iv 
INCREDIBLE ERA 



I. The Making of a President 

The Republican National Convention, which took place in June 
1920 in Chicago, Illinois, was a most extraordinary affair. 

"The Presidency was for sale," writes Karl Schriftgiesser in This 
Was Normalcy, "The city of Chicago, never averse to monetary 
indecencies, was jam-packed with frenzied bidders, their pockets 
bulging with money with which to buy the prize. The Coliseum 
became a market place, crowded with stock gamblers, oil pro- 
moters, mining magnates, munition makers, sports promoters, and 
soap makers . . . The lobbies and rooms of the Loop hotels were in 
a turmoil as the potential buyers of office scurried about lining up 
their supporters, making their deals, issuing furtive orders, passing 
out secret funds." 

Among the captains of industry and finance who had flocked 
into the Windy City to make sure the Republican Presidential can- 
didate was a man to their taste were Harry F. Sinclair, head of the 
Sinclair Oil Company, who had already invested $75,000 in the 
Republican campaign and was to put up another $185,000 before 
the campaign was over; Judge Elbert H. Gary, Chairman of the 
Board of Directors of U.S. Steel, whose name had figured promi- 
nently in the smashing of the 19 19 steel strike; Samuel M. Vauclain, 
president of the Baldwin Locomotive Company; Thomas W. 
Lamont, partner in the firm of J. P. Morgan and Company; Ed- 
ward L. Doheny, president of the Pan-American Petroleum Com- 
pany; and William Boyce Thompson, the copper magnate, who .had 
recently returned from Soviet Russia, where as head of the Ameri- 
can Red Cross mission he had staked $1,000,000 of his own money 
in an effort to stem the tide of the Russian Revolution. 

42 



For conducting the devious, backstairs negotiations among the 
different delegations, and for keeping things in general under con- 
trol at the open sessions of the Convention at the Chicago Cohseum, 
the renowned industrialists and financiers were relying on a small, 
select group of Republican poHticians. These "political deputies of 
wealth," together with their connections, as named by Ferdinand 
Lundberg in his book, A7nericd's 60 Fainilies, were 

Senators Henry Cabot Lodge (Morgan), Medill McCormick (Chi- 
cago Tribune-International Harvester Company), James E. Watson of 
Indiana (Klan), Reed Smoot (Utah sugar interests), James W. Wads- 
worth of New York (Morgan) and Frank Brandages of Connecticut 
(Morgan). 

Shortly after dinner on the sweltering hot night of June 9, with 
the Convention balloting for the Presidential candidate deadlocked 
between General Leonard Wood and Governor Frank O. Lowden 
of Illinois, the junto of Senators met in the three-room suite of the 
Republican National Chairman, Will Hays, at the Blackstone Hotel. 

Present at the secret meeting, in addition to the Senators, was 
George B. M. Harvey, the eccentric, influential publisher of Har- 
vey's Weekly, who had close connections with J. P. Morgan and 
Company and was frequently referred to as the "President-maker." 

Periodically, as the evening wore on, Nicholas Murray Butler, 
president of Columbia University and a key figure in the inner 
circles of the Republican Party, drifted in and out of the smoke- 
filled room in which the private, animated conference was taking 
place. 

Around midnight, the decision was reached as to who should 
be the Republican candidate for President . . . 

Senator Warren Harding of Ohio, tired, disheveled and sUghtly 
intoxicated, was summoned to Will Hays' suite. 

"Senator, we want to put a question to you," said George 
Harvey. "Is there in your Hfe or background any element which 
might embarrass the Repubhcan Party if we nominate you for 
President?" 

The meaning of this question was to be later interpreted in 
various ways. One interpretation was that Harvey and his colleagues 
wanted to be certain that Harding was not part Negro, as had 
been claimed in some scurrilous racist propaganda then circulating 
in Chicago. Harvey's own subsequent explanation was that the 
Senator was being asked to seek Divine guidance regarding his fit- 

43 



ness to become President. Another version was that Harding was 
being given the opportunity to inform his backers whether his 
relationship with Nan Britton, the mother of his illegitimate daugh- 
ter, might be disclosed and become an embarrassing issue during 
the Presidential campaign. 

At any rate, Harding retired to an adjourning room, remained 
there a short while, and then came back and solemnly assured the 
others that there was nothing in his past to preclude his becoming 
President . . . 

On the following afternoon, Senator Warren G. Harding was 
nominated as the Republican candidate for President of the United 
States. Selected to be his running-mate, as candidate for Vice- 
President, was Governor Calvin Coolidge of Massachusetts, best 
known for his role in suppressing a pohce strike in Boston in 19 19. 

Commenting editorially on Harding's nomination, the Nenjo York 
Times stated: 

. . . the Chicago convention presents a candidate whose nomination 
will be received with astonishment and dismay by the party whose 
suffrages he invites. . . . Senator Harding's record at Washington has 
been faint and colorless ... 

The nomination of Harding ... is the fine and perfect flower of the 
Senatorial cabal that charged itself with the management of the Repub- 
lican Convention . . . 

As for principles, they have only hatred of Mr. Wilson and a ravening 
hunger for the offices. 

According to the Nation, Harding was a "colorless and platitu- 
dinous, uninspired and uninspiring nobody" who had been trotted 
out by the Republican Old Guard "like a cigar store Indian to 
attract trade." 

Warren Harding's own succinct comment on the fact he had been 
selected to run for President of the United States was: "We drew 
to a pair of aces and filled." 

2. "God, What a Job!" 

There was one thing about Senator Harding on which every- 
one agreed: he was an unusually handsome man. Tall and distin- 
guished-looking, with a large well-molded face, deep-set ingenuous 
eyes and silvery-grey hair, he cut an imposing figure in any gather- 

44 



ing. It was this quality which, years before, had convinced his 
close personal friend and Presidential campaign manager, Harry M. 
Daugherty, that a great pohtical future lay ahead of Harding. "He 
looks like a President!" Daugherty repeatedly insisted. And, from 
the beginning, Daugherty had been determined to see that Harding 
became one . . . 

Harry Micajah Daugherty, a blustering, heavy-set man who 
usually sported a massive pearl stickpin in his garish ties, was a 
lawyer by profession. His real business, however, was lobbying for 
large corporations in the Ohio State Legislature, in which he him- 
self had served two terms as a member of the House of Represen- 
tatives. For a good many years, Daugherty had played a prominent 
role in the notoriously corrupt Republican pohtical machine in 
Ohio which was known as the "Ohio Gang." 

"I frankly confess to a leadership in the so-called 'Ohio 
Gang' . . . ," Daugherty subsequently stated in his book. The In- 
side Story of the Harding Tragedy, which he wrote in collabora- 
tion with Thomas Dixon, author of The Birth of a Nation and 
other pro-Ku Klux Klan writings. "On the Ups of rival politicians 
the 'Ohio Gang' is an epithet. I wear its badge as a mark of honor." 

In 1 9 14 Daugherty had persuaded his friend, Harding, who was 
then editor of a small newspaper in Marion, Ohio, to run for the 
United States Senate. Harding at first had been reluctant. "When it 
came to running for the Senate," Daugherty later reminisced, "I 
found him sunning himself in Florida Hke a turtle on a log, and 
I had to push him into the water and make him swim." With the 
support of the Ohio Gang, Harding was elected to the Senate . . . 

As Senator, Harding spent most of his time in Washington at 
poker games, the ball park and the race track. The few speeches 
Harding made in the Senate, as unforgettably described by William 
G. McAdoo, left "the impression of an army of pompous phrases 
moving over the landscape in search of an idea; sometimes these 
meandering words would actually capture a straggHng thought and 
bear it triumphantly, a prisoner in their midst, until it died of 
servitude and overwork." 

When Daugherty proposed that Harding make a bid for the 
RepubHcan Presidential nomination, the Senator asked: "Am I a big 
enough man for the race?" 

"Don't make me laugh!" said Daugherty. "The day of giants in 
the Presidential Chair is passed . . ." What was now needed was 

45 



an "every-day garden variety of man." And Harding, declared 
Daugherty emphatically, was just that sort of man . . . 

In February 1920, three months before the Republican National 
Convention in Chicago, Daugherty had made this remarkably ac- 
curate prediction: "At the proper time after the Republican Na- 
tional Convention meets, some fifteen men, bleary-eyed with loss of 
sleep and perspiring profusely with the excessive heat, will sit down 
in seclusion around a big table. I will present the name of Senator 
Harding to them, and before we get through they will put him 
over." 

In November 1920, in a runaway victory at the polls, Warren 
Gamaliel Harding was elected President of the United States.* 
He took office on March 4, 192 1. 

The members of what was to become known as Harding's "Black 
Cabinet" included Secretary of the Treasury Andrew Mellon, the 
diminutive soft-spoken multi-millionaire who dominated the alu- 
minum trust and ruled a vast private empire of oil wells, coal mines, 
steel mills, utility corporations, and banking houses; Secretary of 
War John W. Weeks, ex-Senator from Massachusetts and partner 
in the Boston brokerage firm of Homblower and Weeks; Secretary 
of Commerce Herbert Hoover, former head of the American Relief 
Administration, who had amassed an immense personal fortune be- 
fore the war in the promotion of dubious mining stocks in back- 
ward parts of the world; Secretary of the Interior Albert B. Fall, 
ex-Senator from New Mexico, where as a lawyer and politician 
he had maintained intimate, shady connections with large oil in- 
terests; and Postmaster General Will Hays, former Chairman of the 
Republican National Committee and chief counsel for the Sinclair 
Oil Company. 

To Harding's political mentor and bosom friend, Harry M. 
Daugherty, went the post of U.S. Attorney General . . .t 



* The candidates of the Democratic Party were, for President, the Governor 
of Ohio, James M. Cox; for Vice-President, the thirty-eight year old As- 
sistant Secretary of the Navy, Franklin Delano Roosevelt. 

t There was one man in the Harding Cabinet who, in the words of Karl 
Schriftgeisser, "had real qualifications for his post." He was the Secretary of 
Agriculture, Henry C. Wallace. "Honest, outspoken and (in his way) a true 
liberal . . . ," writes Schriftgeisser of Henry C. Wallace in This Was Nor- 
malcy, "he was not without his enemies both within and without the cabinet. 
Surrounded as he was by men of whose faults he was only too aware, his life 

46 



Few, if anv, of the members of the new Administration were less 
equipped to fill their posts than the President himself. 

Not long after his inauguration, Harding was visited at the White 
House by his old friend, Nicholas Murray Butler. The head of 
Columbia University found the President sitting in his study, 
staring disconsolately at the letters, documents and papers of state 
that cluttered up his desk. Gloomily, Harding muttered, "I knew 
that this job would be too much for me." 

On another occasion, after listening in frustrated bewilderment 
to a long, heated discussion among his advisers on a question of 
taxation, Harding flung himself wearily into the office of one of 
his secretaries. 

"John, I can't make a damn thing out of this tax problem!" Hard- 
ing blurted out to the secretary. "I listen to one side and they seem 
right, and then— God!— I talk to the other side and they seem just 
as right, and here I am where I started. I know somewhere there 
is a book that will give me the truth, but, hell! I couldn't read the 
book. I know somewhere there is an economist who knows the 
truth but I don't know where to find him and haven't the sense to- 
know him and trust him when I do find him." 

Shaking his head in exasperation, the President cried, "God, what 
a job!" 

But Harding's own sense of inadequacy notwithstanding, his 
qualifications for the office of President were eminently satisfactory 
to the millionaires who had sponsored his candidacy. As Charles 
W. Thompson states in his book Presidejits Vve Known: "They^ 
could shuffle him and deal him like a pack of cards." 

3. The Ways of Normalcy 

The domestic policy of the Harding Administration, as described 
by Charles and Mary Beard in The Rise of American Civilization, 
consisted essentially of 

a repeal of the taxes on incomes, inheritances, and excess profits, espe- 
cially the higher schedules, and a shift of the burden of federal support 
from wealth enjoyed by the rich to goods consumed by the masses 

in Washington was to be an unhappy one. But with the passing of the years,. 
he stands out, head and shoulders, above the rest of the 'best minds.'" 

For details on the political career of Henry C. Wallace's son, Henry A.. 
Wallace, see Books Three and Four. 

47 



, . . "no government interference with business"— no official meddling 
with mergers, combinations, and stock issues, no resort to harsh price- 
fixing or regulatory schemes, and a release of the tense pressure exerted 
upon railways. 

"Anyone knows," philosophized Andrew Mellon, Harding's 
fabulously rich Secretary of the Treasury, who was affectionately 
called "Uncle Andy" by the other Cabinet members, "that any man 
of energy and initiative can get what he wants out of life . . . when 
that initiative is crippled by legislation or a tax system which denies 
him the right to receive a reasonable share of his earnings, then he 
will no longer exert himself . . ." 

As soon as the Sixty-seventh Congress convened, Mellon, who 
lacked neither energy nor initiative, pressed for and secured the 
repeal of the Excess Profits Act of 191 7. The liquidation of this Act 
effected a yearly tax saving for large corporations of more than 
$1,500,000,000, and, incidentally, a saving of approximately $1,000,- 
000 a year for the diverse, multiple interests of Andrew A4ellon . . . 

The foreign policy of the Harding Administration was keynoted 
by the slogan, "America First", which Harding, at Daugherty's 
suggestion had repeatedly employed during his campaign speeches.* 
This foreign policy, as viewed by Walter Lippman, then writing 
for the New York World, was based on these concepts: 

That the fate of America is in no important way connected with the 
fate of Europe. 

That Europe should stew in its own juice . . . 

That we can sell to Europe, without buying from Europe. 

. . . and that if Europe doesn't like she can lump it, but she had better 
not. 

"Let the internationalist dream and the Bolshevik destroy," de- 
clared President Harding. "God pity him 'for whom no minstrel 
raptures swell.' In the spirit of the republic we proclaim American- 
ism and proclaim America!" 

There was, however, one highly significant phase of American 
political-economic life to which the tenets of isolationism did not 
apply. While publicly applauding Harding's program of "an end 
to entangling foreign alliances," American finance-capitalists were 
privately drafting secret international agreements with German, 
Japanese, British and other foreign cartelists, and had already em- 

* The same slogan was again revived on an extensive scale by the America 
First Party in 1940-41. See page 219. 

48 



barked upon an ambitious program to infiltrate and dominate the 
markets of Europe and Asia.* 

Shortly before his inauguration, Harding had publicly observed, 
"It will help if we have a revival of religion ... I don't think any 
government can be just if it does not somehow have contact with 
Omnipotent God ... It might interest you to know that while I 
have never been a great reader of the Bible, I have never read it as 
closely as in the last weeks when my mind has been bent upon the 
work that I must shortly take up . . ." 

Whatever the extent of his familiarity with the Bible, there was 
definitely something of a biblical parable to be seen in Harding's 
conduct as President of the United States. In the words of the 
famous journaHst, William Allen White: 

Harding's story is the story of his times, the story of the Prodigal 
Son, our democracy that turned away from the things of the spirit, 
got its share of the patrimony ruthlessly and went out and lived riot- 
ously and ended it by feeding among the swine. 

Within a few weeks after the Harding Administration took over, 
the city of Washington was teeming with a motley crew of Repub- 
lican Party bosses, big businessmen, bootleggers, members of the 
Ohio Gang, and big-time confidence men. Not a few of these in- 
dividuals held key offices in the new Administration. Others were 
lobbyists for big corporations. All had come to share in the loot. 

A mood of abandoned merrymaking pervaded the nation's capi- 
tol. Wild parties and games of chance for fabulous stakes were 
nightly occurrences. Prostitutes were plentiful. Prohibition or not, 
liquor flowed freely . . . 

Rowdy, cigar-smoking politicos congregated almost every eve- 
ning in the sedate rooms of the White House for boisterous drink- 
ing parties and shirt-sleeved poker sessions lasting into the early 
morning hours. "While the big official receptions were going on," 
recollects Alice Longworth, in her book. Crowded Hours, "I don't 
think the people had any idea what was taking place in the rooms 
above. One evening while one was in progress, a friend of the 
Hardings asked me if I would like to go up to the study. I had 
heard rumors and was curious to see for myself what truth was in 



*For further details on cartel and other international operations of Amer- 
ican finance-capital during the 1920's, see page 81. 

49 



them. No rumor could have exceeded the reality; the study was 
filled with cronies ... the air was heavy with tobacco smoke, trays 
with bottles containing every imaginable brand of liquor stood 
about, cards and poker chips ready at hand— a general atmosphere 
of w^aistcoat unbuttoned, feet on desk, and the spittoon alongside." 

Not all the gay carousals of the President and his boon com- 
panions took place at the White House. Mrs. Harding, a petite 
shriveled woman several years her husband's senior, who favored 
a black velvet neck-band and was familiarly known in the inner 
Harding circle as "The Duchess," was a possessive, domineering and 
extremely jealous wife. Although Harding's mistress. Nan Britton, 
paid occasional clandestine visits to the Presidential mansion, more 
discreet rendezvous were deemed advisable . . .* 

For purposes of relaxtion and revelry, the Ohio Gang established 
a private retreat at a small comfortable residence at 1625 K Street. 
This house, which came to be called "The Little Green House," 
was rented by Howard Mannington, a lawyer and politician from 
Columbus, Ohio. While holding no official Government post, Man- 

* Nan Britton later wrote a book, entitled The Fresidenfs Daughter, de- 
scribing in intimate and sordid detail her clandestine affair with Harding- 
first as U. S. Senator and then as President— and the birth of their illegitimate 
daughter, Elizabeth Ann. Although written in a maudlin and meretricious 
style, the book nevertheless offers a revealing picture of the character of the 
28th President of the United States. 

The book recounts such tawdry episodes as the furtive meetings between 
Harding and Nan Britton in disreputable hotels, shabby rooming houses, the 
Senate Office Building and the White House; and how, when they were 
traveling together, Nan Britton would register at hotels as Harding's "neice" 
or "secretary," and sometimes as his wife. During one of their meetings, which 
took place in an obscure New York hotel while Harding was still a Senator, 
house detectives broke in on the couple. Depicting Harding's reaction, Nan 
Britton writes: "They got us!' [said Harding] ... He seemed so pitifully 
distressed ... sat disconsolately on the edge of the bed, pleading that we had 
not disturbed any of their guests, and for this reason should be allowed to 
depart in peace." The detectives, on learning Harding was a member of the 
U. S. Senate, respectfully conducted the couple out of a side entrance of the 
hotel. "Gee, Nan," Harding told his mistress, "I thought I wouldn't get out 
of that for under $1000!" 

In one of the more significant passages in the book, Nan Britton relates how 
Harding, as a Senator, obtained a secretarial position for her at the United 
States Steel Corporation: "I had never heard of Judge Gary, strange to say, 
and he [Harding] explained that he was the Chairman of Directors of the 
largest industrial corporation in the world. Mr. Harding handed his card to 
the secretary in Judge Gary's outer office. The judge came out immediately. 
After introducing me to Judge Gary, Mr. Harding inquired casually of him 
whether his senatorial services in a certain matter had been satisfactory. The 
judge replied that they had indeed and thanked Mr. Harding . . ." 

50 



nington was in almost daily contact with Attorney General 
Daugherty and other prominent figures in the Administration. 
Mannington was on equally familiar terms with a number of the 
nation's leading bootleggers, who used the house on K Street as a 
headquarters when they visited Washington, and who there made 
arrangements to buy permits for large quantities of liquor from 
Government-controlled distilleries. At the Little Green House, 
arrangements were also frequently made for federal convicts to buy 
pardons, and for aspiring jurists to purchase federal judgeships. 

Another favorite rendezvous of the Ohio Gang was a house at 
1509 H Street, where Attorney General Daugherty lived together 
with his close friend and personal aide, Jesse Smith. The house, 
complete with butler and cook, had been turned over to Daugherty 
by its owner, Edward B. McLean, the affluent playboy pubHsher 
of the C'mcijinati Enquirer and the Washington Post, whose sump- 
tuous estate, "Friendship," was frequented by President Harding 
and key members of the Administration. 

A description of the sort of affairs held in the house on H Street 
appears in the memoirs of Gaston B. Means, who was one of the 
chief investigators in the Bureau of Investigation during the Hard- 
ing Administration. Means relates: 

One night . . . my home phone rang . . . "Means? . . . This is Jess 
Smith. Say— come around to H Street quick as you can get here, will 
you? There's— a little trouble—" ... I slipped into my clothes . . . and 
hustled around to H Street. Everyone knew of the many gay midnight 
suppers there . . . 

So I was not altogether unprepared for the scene that I walked into 
when the door was opened for me. The rooms were in the wildest dis- 
order. The dinner table had been cleared— evidently for the dancing of 
chorus girls— dishes were scattered over the floor— bottles lay on chairs 
and tables. Everybody had drunk to excess. Half drunken women and 
girls sprawled on couches and chairs— all of them now with terror on 
their painted faces. 

I was approached by Mr. Boyd who told me that somehow, acciden- 
tally, when they were clearing the table for the girls to dance . . . and 
everybody was throwing bottles or glasses— that a water bottle had hit 
one of the girls on the head and she seemed badly done up. 

I saw President Harding leaning against a mantel with his guards 
standing near and I whispered to the man next to me that they better 
get the President out and away first . . . 

I found the unconscious girl stretched out on a sofa in a rear hall . . . 
I dared not 'phone for a doctor or an ambulance so I picked the seem- 
ingly lifeless figare in my arms and carried her out to my car and took 

51 



her to a hospital behind the Hamilton Hotel. She was unconscious for 
days and was finally operated on.* 

It was not without reason that William Allen White later wrote 
of the Harding era: "The story of Babylon is a Sunday school story 
compared with the story of Washington from June 1920, imtil July 

*For further details on Gaston B. Means' activities during the Harding 
Administration, see pages 63 ff. 



52 



Chapter v 

ROGUE'S GALLERY 



I. "The Real Old Times" 

One month after the inauguration of President Harding, a certain 
Colonel Charles R. Forbes showed up in the nation's capitol. He 
was a ruddy-faced, hard-drinking, swaggering adventurer, with a 
penchant for spinning extravagant yarns and an easy way with 
members of the opposite sex. During the war he had been decorated 
with the Croix de Guerre and the Distinguished Service Medal. His 
checkered career had also included desertion from the U. S. Army, 
crooked ward politics on the West Coast, shady operations as a 
business contractor, and several years of lucrative underhand deal- 
ings as a public official in the Philippine Islands. 

The reason Colonel Forbes came to Washington in the early 
spring of 192 1 was that he had been summoned by President Hard- 
ing himself . . . 

Colonel Forbes and Senator and Mrs. Harding had met in Hawaii 
before the war. The Hardings were enchanted by Forbes* inex- 
haustible tall tales and boisterous affability; Forbes found Harding 
to be a good-natured loser at poker; and a warm friendship quickly 
blossomed between the Colonel and the future President and his 
wife. During the 1920 Presidential campaign, Forbes, who was then 
vice-president of the Hurley-Mason Construction Company of 
Tacoma, campaigned energetically for Harding on the West Coast; 
and following his election, Harding called his old friend to Wash- 
ington to take charge of the Bureau of War Risk Insurance. Soon 
afterwards, Forbes was appointed director of the newly formed 
United States Veterans' Bureau . . . 

As head of the Veterans' Bureau, Colonel Forbes was responsible 
for the management of all veterans' hospitals in the country, the 
disposal of war-time medical supplies and hospital equipment, and 

53 



the construction of new hospitals for veterans. The total expeft- 
ditures of the Veterans' Bureau were estimated at approximately 
$500,000,000 a year. 

The swashbuckling colonel lost little time in exploiting the 
bonanza that had fallen into his hands. He promptly appointed as 
his aides and subordinates a number of friends and old cronies, men 
who could be relied upon to do just what they were told and whose 
scruples were no more exacting than his own when it came to 
matters of graft and embezzlement. The offices of the Veterans' 
Bureau were soon swarming with hard-boiled swindlers and petty 
racketeers, who traveled around the country, staging wild parties, 
carousing and living in luxury on government funds that had been 
set aside to care for disabled war veterans . . . 

A typical letter written by one of Forbes' field representatives, 
R. A. Tripp, to his immediate superior in Washington, read in 
part: 

You are missing the real old times. Hunting season is on— rabbit din- 
ners, pheasant suppers, wines, beers, and booze— and by God we haven't 
missed a one yet. Collins and I get invitations to 'em all. Last Wed. I 
was soused to the gills on rabbit, etc. Last Sat. wines— Oh, Boy! . . . We 
eat and wine with the mayor, the sheriff, the prosecuting atty. 

To hell with the Central Office and the work. And the fun is in the 
field— 'tis all the work I want— just travel around. 

Regarding the site of one veterans' hospital, Tripp jocularly 
noted: 

Fire hazards— say, if Forbes could only see the "lovely" high (3') grass 
& if fire comes— boom! up she goes. 

The letter concluded: 

Well, old Boss, 'tis a wonderful time— as happy as can be— as soon as 
we can lift the freight embargo we will be thru. You should see us— 
when we can't get a switch engine, we "swipe" the cars and take the 
crane to spot 'em or use a liberty truck- then the Jews— Oh, my, how 
they weep: "I got stung." Ha! Ha! 

Let me know when Forbes is going to sell by sealed proposals, then's 
when I get a Rolls Royce. Got a good drink coming, so here's back 
to you. 

Colonel Forbes himself, like the members of his staff, strongly 
believed in mixing business with pleasure. None of his exploits as 
head of the Veterans' Bureau more clearly revealed this proclivity 
than his dealings with Elias H. Mortimer, a representative of the 
Thompson-Black Construction Company. 

54 



Soon after Forbes and Mortimer became acquainted early in 1922, 
they began privately discussing the extensive building program 
then being initiated by the Veterans* Administration. During one 
of their first chats on the subject, Forbes told Mortimer about his 
own career in the construction game. The Colonel said pointedly, 
"We fixed things so that no one lost money." 

That April a small clandestine conference took place in Forbes' 
Washington apartment. Present were Forbes, Mortimer, and J. W. 
Thompson and James Black, heads of the Thompson-Black Con- 
struction Company. The Colonel informed the others that he was 
about to let a number of major contracts on hospital buildings, the 
sites of which had not yet been made public. He himself would 
soon leave on a cross-country tour to make final arrangements in 
connection with the jobs. He suggested that Mortimer and his 
vivacious young wife accompany him on the trip. 

"You can look things over at Chicago," said Forbes. "We are 
going to put up a five milHon dollar hospital at Chicago. We are 
going to put up a hospital at Livermore, California, and one at 
America Lake, which is just outside of Tacoma. On the way back 
you can stop off at St. Cloud, Minnesota— and in this way have 
advance information over everybody." 

Presently, Forbes drew Mortimer aside. He was, he explained, 
in a rather embarrassing predicament which he hesitated to mention 
in front of the others. To put it in a nutshell, he was "very hard 
up" . . . 

Mortimer asked, "What do you want me to do?" 

"I need about five thousand dollars," said the Colonel. 

Before the group separated, Mortimer had arranged with his 
associates for Forbes to get the money . . . 

The five thousand dollars, it was understood, represented only a 
token payment. According to the terms of the final agreement 
reached between Forbes and the contractors, the Colonel was to 
receive one-third of all profits on hospitals built by the firm of 
Thompson and Black . . . 

That summer Colonel Forbes and Mr. and Mrs. Mortimer 
traveled across the country together. Their first stop was in 
Chicago, where most of their stay was devoted to lavishly entertain- 
ing business acquaintances and friends in their $5o-a-day suite at 
the Drake Hotel. 

55 



Despite the merrymaking, and in a way because of it, a some- 
what trying situation soon developed between the Colonel and his 
two traveling companions. Describing one of the parties in his 
suite at the Drake, Mortimer subsequently related: 

. . . Colonel Forbes' room was off to the right of our apartment . . . 
Colonel Forbes, when I came in there at about 4:30 in the afternoon was 
shooting craps with Mrs. Mortimer on the bed . . , There was a bottle 
of Scotch there, and he had his coat off . . . 

Although piqued at this and similar episodes, Mortimer did not 
at first permit the personal compUcation to interfere with his 
business dealings with the Colonel. Together, the Mortimers and 
Forbes proceeded on to California, having, in Mortimer's own 
words, "one royal good time all the time we were on the trip." 

Meanwhile, Forbes' trusted aide, Charles F. Cramer, Chief Coun- 
sel of the Veterans' Bureau, was receiving sealed bids in Wash- 
ington on Government hospital contracts. Following Forbes' in- 
structions, Cramer opened all bids and immediately telegraphed 
their details to the Colonel in Cahfomia. Forbes then relayed this 
supposedly confidential information to Mortimer, so that the firm 
of Thompson and Black might be able to gauge its own bids ac- 
cordingly . . . 

Forbes was delighted with the way things were going. "We'll all 
make a big clean-up," he enthusiastically assured Mortimer. 

For Mortimer, however, notwithstanding the mounting profits, 
the situation was becoming increasingly irksome. As the summer 
drew to a close, his forbearance finally at an end, Mortimer firmly 
told his wife and Forbes that he had had enough of their more than 
friendly relationship. 

Returning east a few weeks later, Mr. and Mrs. Mortimer per- 
manently separated. At the same time, the secret partnership be- 
tween Colonel Forbes and the firm of Thompson and Black came 
to an abrupt conclusion . . . 

Graft from the construction of veterans' hospitals was only one 
of Colonel Forbes' multiple sources of income as head of the 
Veterans' Bureau. 

By buying Government supplies at fabulously high prices and 
selling them at a fraction of their worth, Forbes won the esteem of 
numerous business executives, who naturally did not object to shar- 
ing profits with the Colonel. 

56 



From one favored firm, for example, Forbes purchased $70,000 
worth of floor wax and floor cleaner— a quantity, it was later es- 
timated, sufficient to last the Veterans' Bureau for one hundred 
years. The Colonel paid 87 cents a gallon for the material which 
was worth approximately two cents a gallon . . . 

Forbes' largest single transaction in this field involved the Gov- 
ernment's immense supply depot at Perryville, Maryland, where 
there were more than fifty buildings filled with vast quantities of 
medical stores and other supplies. Without any public advertise- 
ment of the sale, the Colonel signed a contract with the Boston 
firm of Thompson & Kelly, Inc., for the disposal of the entire con- 
tents of the Perryville warehouses. The day the contract was 
signed, fifteen empty freight cars moved into the Perryville rail- 
road yards; and before a week had elapsed, more than 150 freight 
cars were being simultaneously loaded with huge amounts of goods 
and materials from the Government supply depot. 

In all, Thompson & Kelly purchased at Perryville for the sum of 
$600,000, supplies whose actual value was conservatively figured 
at $6,000,000. 

By the end of 1922, from all parts of the country, furious crit- 
icism of Forbes' management of the Veterans' Bureau was pouring 
into Washington from veterans' organizations, high Army and 
Navy officers, and businessmen who had had no opportunity to bid 
on Veterans Bureau contracts. 

The Perryville deal brought matters to a head. 

Early in January 1923, President Harding summoned Colonel 
Forbes to the White House. Forbes came bringing with him a 
bundle of old dilapidated sheets to indicate the "worthlessness" of 
the goods he had sold at Perryville. The President was not im- 
pressed. He told his friend that the irregular practises at the Vet- 
erans' Bureau would have to stop. 

Before the month was out, Forbes sailed for Europe. From 
France, he sent his resignation to President Harding. 

That spring the Senate initiated an investigation of the Veterans' 
Bureau. Public hearings began in V/ashington in October. 

Among those to appear at the hearings was Colonel Forbes, who 
had just returned from Europe. "I worked sixteen long hours a 
day . . . ," declared the Colonel -about his directorship of the Vet- 

57 



erans' Bureau, "and no man loved the ex-servicemen better than I 
did." 

Another witness was the building contractor, Elias Mortimer, 
who described in intimate detail his various deahngs with Colonel 
Forbes, including those involving Mrs. Mortimer. After Mortimer's 
testimony, Mrs. Mortimer's attorney appeared at the hearings to 
request that his client be given the opportunity to testify, so that 
she might publicly defend her reputation. The attorney told the 
senators, in what was probably the most poetic utterance at the 
hearings: "A woman's character is a fragile thing, as delicate as 
the frost upon the morning window, which a breath dispels, and it is 
forever gone. And yet, a woman's character is her most priceless 
possession." 

Following the Senate committee hearings, Colonel Forbes was 
indicted on charges of conspiring to defraud the United States 
Government. He was tried in Federal court, found guilty and sen- 
tenced to a fine of 1 10,000 and two years' imprisonment. 

It was estimated that Forbes' machinations as Veterans' Bureau 
director had cost the American people about $200,000,000, a fair 
portion of which had ended up in the Colonel's own pocket. 

Impressive as the sum was, it represented only a fraction of the 
vast loot that was being systematically extracted from the public 
treasury by U. S. Government officials and American big business- 
men during the Harding Administration. 



2. 



The Dome and the Hills 



One day in the early spring of 1922, Harry F. Sinclair of the 
Sinclair Oil Company and James E. O'Neill, president of the Rocke- 
feller-controlled Prairie Oil and Gas Company, met with two busi- 
ness associates for a quiet meal at the exclusive Bankers' Club in 
New York City. The four men had come together to discuss a 
highly confidential, multi-miUion-dollar oil transaction.* 

"I wish," said one of the men during the meal, "that I was Sec- 
retary of the Navy for about two years." 

* The names of the two businessmen who met with Sinclair and O'Neill 
are, despite considerable speculation, still not definitely known. The dialogue 
quoted is taken from the subsequent testimony of a witness before a Senate 
investigatory committee, who had overheard part of the conversation between 
the four men at the Bankers' Club. 

58 



"Well," replied Sinclair, "you'd have a better job than the Presi- 
dent." 

"I'd clean up some milHons!" 

"You all have to be careful after this," warned Sinclair, "and 
each one will have to look out for himself." 

"Suppose there's some trouble afterwards? Who would take care 
of it?" 

"If the Sinclair Oil Company isn't big enough, the Standard Oil 
Company is," remarked O'Neill, whose firm was closely tied to 
Standard interests. He added, "Why, we make a hundred million 
dollars a year." 

The secret deal that the four men were discussing concerned the 
leasing of certain oil lands at the Naval Oil Reserve at Teapot 
Dome, Wyoming. 

For a number of years the largest American oil companies had 
been trying to get control of the rich naval oil reserves established 
in 1909 in Wyoming and California by an Executive Order of 
President William H. Taft and confirmed by Congress in the Pickett 
Act. The oil reserves were Navy Petroleum Reserve No. i at Elk 
Hills, California; Naval Petroleum Reserve No. 2 at Buena Vista 
Hills, California; and Naval Reserve No. 3 at Teapot Dome, Wyo- 
ming. The purpose of these reserves was to hold the oil in the 
ground for possible future use by the U. S. Navy, in the event that 
regular commercial oil resources should become depleted. 

During and immediately after the First World War, as the value 
of oil soared to unprecedented heights, American private oil in- 
terests became all the more determined to get their hands on the 
naval oil reserves. With Harding as President, the oil men knew 
their chance had come . . . 

A few weeks after taking office. President Harding issued an Ex- 
ecutive Order, against the vigorous opposition of high-ranking 
Navy ofiicers, transferring control of the naval oil reserves from 
the Navy to the Department of the Interior. 

The Government official now responsible for determining what 
happened to the naval oil reserves was Secretary of the Interior 
Albert B. Fall 

A cantankerous short-tempered man with a drooping white 
mustache and long wavy white hair, who looked like an elderly 
frontiersman. Secretary Fall had one main interest in life: to make 

5? 



as much money as he could, as quickly as possible, by whatever 
means were necessary. 

Within a week after the promulgation of Harding's Executive 
Order, Secretary Fall dispatched a confidential letter to Edward L. 
Doheny, the president of the Pan-American Petroleum and Trans- 
port Company of Cahfornia. The letter read in part: 

There will be no possibility of any future conflict with Navy officials 
and this department, as I have notified Secretary Denby that I shall 
conduct the matter of naval leases, under the direction of the President, 
without calling any of his force in consultation unless I conferred with 
himself personally about a matter of policy. He understands the situation 
and that I shall handle matters exactly as I think best . . . 

Edward L. Doheny, a millionaire oil operator whose insatiable 
yearning to exploit new oil resources were equaled in intensity only 
by his burning hatred of "Bolshevism," was an old friend of Sec- 
retary Fall. Years before, Doheny and Fall had prospected together 
for oil in the Southwest. 

Now, once again, the two men were to become profit-sharing 
partners in an oil venture . . . 

Certain obstacles precluded the immediate leasing by Secretary 
Fall of the naval oil reserves to Doheny's company. There was, for 
example, the Naval Fuel Oil Board, which had been set up to safe- 
guard the reserves. In October 192 1 Secretary Fall's associate. Sec- 
retary of the Navy Edwin N. Denby, disbanded the Naval Fuel 
Oil Board. 

This accompHshed, Secretary Fall put through a telephone call 
from the Department of the Interior to Doheny, who was then in 
New York City. 

"I'm prepared now to receive that loan," Fall told Doheny. 

The oil magnate promptly dispatched his son, Edward L. Doheny, 
Jr., to the bank, where he drew $100,000 in bills. Carrying the 
money in a small black satchel, Doheny, Jr., traveled to Washington. 
There he turned the $100,000 over to the Secretary of the In- 
terior . . . 

Soon afterwards, Fall granted to Doheny's Pan-American Pe- 
troleum and Transport Company a 15-year lease to all the oil 
acreage of the Naval Petroleum Reserve No. i at Elk Hills, Cah- 
fornia. 

Regarding these arrangements, Judge Paul J. McCormick of the 
United States District Court of Cahfornia subsequently stated: 
60 



It was in effect a complete surrender and transfer of approximately 
30,000 acres of valuable proven oil land and its oil contents, estimated 
at from 75,000,000 to 250,000,000 barrels of oil for fifteen years at least. 

Doheny, at the time, put the matter more simply. "We'll be in 
bad luck if we don't get $100,000,000 profit," the oil tycoon— whose 
private railroad car was named The Patriot— S2iid of the contem- 
plated draining of the naval oil reserves. 

While furtively negotiating with Doheny, Secretary Fall was en- 
gaged in similar clandestine deahngs with Harry F. Sinclair of the 
Sinclair Oil Company. 

On the morning of December 31, 192 1, Sinclair and his attorney. 
Colonel J. W. Zevely, after whom the oil magnate had named his 
famous race horse, "Zev," arrived from New York in a private 
railroad car at Three Rivers, New Mexico. The two men had come 
to visit Secretary Fall, who was spending the Christmas vacation 
at his nearby ranch. 

The purpose of the visit was not purely social. As Sinclair him- 
self said later: "I went to Three Rivers to discuss with Senator Fall 
the leasing of Teapot Dome." 

Following several additional private conferences in Washington 
and New York between Sinclair, Zevely and Fall, a contract leasing 
the property of the Teapot Dome oil reserve to Sinclair was se- 
cretly drafted in Colonel Zevely's Washington law offices. On 
April 7 Secretary Fall signed the contract with Sinclair. 

One month afterwards, Sinclair traveled to Washington. In the 
seclusion of his private railroad car, Sinclair handed $198,000 in 
Liberty Bonds to Secretary Fall's son-in-law, M. T. Everhart. 
Later that same month, Everhart visited New York City, where, in 
Sinclair's office, he received another $35,000 in Liberty Bonds and 
$36,000 in cash, to take to his father-in-law. When Sinclair again 
visited Fall's ranch that autumn, he gave the Secretary of the In- 
terior an additional $10,000 in cash; and, in January 1923, in his 
suite at the Wardman Park Hotel in Washington, the oil magnate 
presented Fall with another $25,000. 

In all. Secretary Fall and his son-in-law, Everhart, received $233,- 
000 in Liberty Bonds and $71,000 in cash from Harry Sinclair . . . 

From Sinclair's viewpoint, it was a conservative investment. Ap- 
pearing in January 1923 before the Senate Committee on Manu- 
factures, Sinclair declared: "I consider the value of the Mammoth 

61 



property at this time— it is only a guess— at a greater amount than 
$100,000,000." 

Sinclair was referring to the Mammoth Oil Company, which he 
had incorporated solely for the purpose of exploiting the oil re- 
sources at Teapot Dome. 

Although profitably concluded. Secretary Fall's leasing of the 
oil reserves at Teapot Dome and Elk Hills had not failed to arouse 
considerable suspicion among certain Naval officers and congress- 
men. 

In the Upper House, Senator Robert M. LaFollette secured a 
passage of a resolution caUing for an investigation by the Senate 
Committee on Public Lands and Surveys of the leases to the Tea- 
pot Dome and Elk Hills Naval Petroleum Reserves . . . 

At the same time, angry protests were mounting among oil men 
whose companies had been given no opportunity to bid on the con- 
tracts. There were increasing demands for the resignation of Sec- 
retary Fall. 

Fall, however, clung obdurately to his post until the last of his 
secret financial transactions had been concluded with Sinclair and 
Doheny. Finally, on March 4, 1923, he handed in his resignation to 
President Harding. 

After reluctantly accepting the resignation, Harding announced 
that he had offered Fall an appointment as Supreme Court Justice; 
but that Fall— because of the tribulations of public office and a de- 
sire to return to private Hfe- had gratefully declined the offer . . . 

"I feel entitled to classify myself with the martyrs," Fall publicly 
stated, referring to the early Christians who had met their fate 
singing hymns in Roman gladiatorial arenas, "for I confess to a 
grateful sense of satisfaction as I contemplate my approaching po- 
litical demise." 

Before leaving Washington, Fall purchased the handsome Jacob- 
ean furniture in his office at the Department of the Interior and had 
it shipped to his ranch at Three Rivers, New Mexico. The value of 
the furniture was estimated at $3,000.00. The price Fall paid for 
the furniture was $231.35 . . . 

Back at his ranch, Fall received this letter from Washington: 

My dear Fall, 

This note is just by way of expressing appreciation for the many 
kindnesses I had at your hands during the last two years in the Cabinet. 
62 



I know that the vast majority of our people feel a deep regret at your 
leaving the Department of the Interior. In my recollection, that depart- 
ment has never had so constructive and legal a headship as you gave it. 
I trust the time will come when your private affairs will enable you 
to return to public life, as there are few men who are able to stand 
its stings and ire, and they have got to stay with it. 

The letter was signed, "Yours faithfully, Herbert Hoover." 

3. Mr. Smith Goes to Washington 

"r wouldn't have given thirty cents for the office of Attorney 
General," remarked Harry M. Daugherty one year after taking 
office, "but I wouldn't surrender it for a million dollars.'* 

Among the various lucrative enterprises connected with the Jus- 
tice Department while Daugherty was Attorney General were: 

dismissing various Federal court actions against large corporations, and 
failing to prosecute them for committing war frauds and violating anti- 
trust laws; 

selling pardons and paroles in connection with Federal prison sentences; 
removing and selling liquor from bonded warehouses; 
selling Federal Judgeships and U.S. District Attorney posts; 
disposing of various property seized by U.S. Government authorities as 
a consequence of violation of Federal statutes. 

"We did not play for marbles," the Justice Department agent, 
Gaston B. Means, said later. "The harvest was ripe, and we knew 
we were there as the reapers." 

None of the many adventurers connected with the Harding Ad- 
ministration was more unscrupulous and remarkable than Gaston 
B. Means. A hulking, 200-pound, six-foot southerner, with a bulging 
forehead, thin receding hair, and little eyes set in a pudgy moon- 
shaped face, Me^is had formerly served as a German Secret Service 
agent in the United States, under the direction of the German naval 
attache and espionage chief, Captain Karl Boy-Ed. He had also 
operated from time to time as a secret agent for the Mexican, Jap- 
anese and British governments, and for a number of years had been 
employed as an undercover man by the William Burns Detective 
Agency. When WilUam J. Burns was appointed director of the 
Justice Department's Bureau of Investigation by Attorney General 
Daugherty, he brought Means with him to Washington. In Burns' 
opinion. Means was "the best investigator in the business." 

Among Means' various duties as an agent of the Bureau of In- 

63 



vestigation were collecting graft from bootleggers, selling con- 
fiscated liquor, acting as a liaison in surreptitious deals between the 
Justice Department and the criminal underworld, and spying upon 
congressmen who were calling for investigation of Attorney Gen- 
eral Daugherty. 

According to Means' subsequent testimony before a Senate in- 
vestigating committee, he personally collected hundreds of thou- 
sands of dollars for providing bootleggers with liquor permits and 
for "insuring" various gangster operations against Federal inter- 
ference. 

In his book, The Strange Death of President Harding, Means 
gives this description of how he received his "payments": 

, . . the big bootleggers in New York City wanted to pay for Federal 
protection ... It became known in the underworld that they could 
pay this protection money to me. I was then stationed at the Vanderbilt 
Hotel first . . . 

Our method there was simple. We had our rumiers, twenty-five men, 
—tipsters of the underworld. They were to keep us posted as to how 
much money different bootleggers were making. From their reports, 
my superior officers would estimate how much each one would pay, 
for protection. These bootleggers were then notified . . . 

We did not want these bootleggers to be handing this money to any 
individual. I then had another room engaged— on another floor of the 
Vanderbilt Hotel— we will say number 518. The register would show 
that this room had been engaged by another man. In similar manner, 
the room next door, number 517 was engaged. 

In room 518, I took a big round glass bowl that one could easily 
see through, a big gold fish aquarium. We made a peep hole in the door 
connecting 518 and 517. This big glass bowl was conspicuously placed on 
a table in 518 . . . 

The "purchaser of protection" was instructed to come to the 
hotel room containing the glass bowl: 

He would enter 518,— would see nobody, but he would see the glass 
bowl, which always had bills of money in it. From 517, through the 
peep hole in the door, I could see him all the time. They were instructed 
never to bring a bill less than $500.00. He would throw into the bowl 
so many $500.00 bills— or so many $1000.00 bills. I watched for two rea- 
sons: to make sure that he put his money into the bow-l and to be sure 
that he took none out. As soon as he would step out, quick as a flash, 
I'd unlock the door between and lock the outside door. I'd check up. 
Never once was I short-changed! Then, I would leave the money,— 
say $10,000.00 in the bowl, unlock the outside door again and wait for 
the next man . . . 

Bootleggers are straight shooters in matters like that. Seeing money in 
64 



the bowl gave them assurance that others were paying for protection 
also . . . 

According to Means' account: 

By this process . . . we covered in territory besides New York City 
and New York State,— Massachusetts, Connecticut, Rhode Island, New 
Jersey and Eastern Pennsylvania. 

A conservative estimate of the sum total of each visit I made, I would 
put at a quarter of a million,— $250,000.00 . . . 

Fully $7,000,000.00 passed through my glass bowl and through my 
hands.* 

After the money had been collected, Means records, it was 
turned over to Jesse Smith, Attorney General Daugherty's private 
aide and confidante. 

Jesse W. Smith was really not cut out for his job with the At- 
torney General. He was a plump, middle-aged, rather effeminate 
man, who had formerly owned a dry goods store in the little town 
of Washington Court House, Ohio, and was happiest when discuss- 
ing clothing fabrics. A close friend and worshipful admirer of 
Daugherty, he had readily accepted the latter's invitation to come 
to Washington to "give a hand" with the nation's affairs. Dazzled 
by the glamorous atmosphere of the capitol and by the fact he was 
rubbing shoulders with the most famous personages in the land. 
Smith became a frequent caller at the White House, arranged when- 
ever possible to be photographed standing alongside President 
Harding, and periodically went shopping with Mrs. Harding, fas- 
cidiously helping the First Lady select hats, dresses and shawls for 
her wardrobe. 

While holding no official post, Smith had a private desk directly 
outside the office of the Attorney General, and word soon got 
around Washington that the way to approach Daugherty was to 
"see Jess first." t 

* There is no documentary substantiation of Means' picturesque description 
of the manner in which he collected graft and "protection money" from boot- 
leggers. However, the fact that such money was collected, in sums running 
into hundreds of thousands of dollars, and then turned over to Daugherty's 
man, Jesse Smith, has been corroborated with ample evidence. 

In view of the fact that Gaston B. Means was an unusually fluent liar, the 
author of this book has been careful to quote Means only in instances where 
there exists corroborative evidence of his statements, and where such does not 
exist, to so indicate. 

t Smith's first name, Jesse, was soon abbreviated to "Jess" in Washington; 
and before long he himself adopted the shortened form, and used it even when 
signing his "official" correspondence in the Justice Department. 

6s 



Soon after joining Daugherty in Washington, Smith began hav- 
ing large sums of money at his disposal. "We are all much better 
off than we have ever been before," he cheerfully told his former 
wife, Roxy Stinson. She and Smith had been married in 1908; and 
although their marriage had lasted less than two years before they 
were divorced, they had remained warm, intimate friends. 

From the nation's capital. Smith frequently sent considerable 
sums of cash to Roxy Stinson in Washington Court House, Ohio. 
Sometimes the money Smith sent was for her personal use, and 
sometimes she was instructed to buy certain stocks at a brokerage 
firm where Smith had opened an account for her under an assumed 
name. Smith himself had several such blind accounts at brokerage 
houses, and much of his time at the Justice Department was spent 
on the Attorney General's private telephone line, calling brokers 
and ordering the purchase and sale of various leading stocks . . . 

In a short time the former dry goods store proprietor was dis- 
cussing matters of high finance with the casual air of a veteran 
banker. "In the past few days," he informed Roxy Stinson on one 
of his visits to Washington Court House, Ohio, "five men have 
made $33,000,000." 

"Were you and Harry in on it?" she asked. 

"No," he said ruefully. "That's what we're sore about. They 
were our friends too." 

Other big projects, however, were underway. 

Not the least of these projects concerned an internationally-con- 
trolled copper concern called the American Metals Company. 

During the war a large portion of American Metals stock had 
been seized by the U. S. Alien Property Custodian as German- 
owned and sold at Government auction for $7,000,000. In the fall 
of 192 1 a certain Richard Merton visited the office of the Alien 
Property Custodian. Presenting himself as the representative of a 
^'Swiss Corporation," Merton claimed his firm was the rightful 
owner of the American Metals stock that had been auctioned and 
that the American Government therefore owed his firm $7,000,000. 
The claim of the "Swiss representative" w^as quietly recognized as 
vahd by the AUen Property Custodian and, at Merton's request, 
the $7,000,000 was turned over to the Societe Suisse pour Valeurs 
des Metaux^Q. Swiss front for German metal interests . . . 

A number of persons in Washington had been involved in facili- 
tating this transaction for Merton, and they were generously re- 
66 



warded for their assistance. To John T. King, Repubhcan National 
Committeeman from Connecticut, who had acted as a general con- 
tact man throughout the negotiations, Merton presented $391,000 
in Liberty Bonds and a $50,000 check. Of this sum, $50,000 went to 
the Alien Property Custodian, Colonel Thomas W. Miller, for his 
"services." And, in appreciation of certain vital "introductions" in 
Government circles and various other help, $224,000 was passed on 
to Attorney General Daugherty's aide, Jesse Smith . . . 

The stakes, however, were getting too steep for Smith. The more 
deeply he became involved in the grandiose political-financial con- 
spiracies afoot in Washington, the more uneasy he felt. "I am not 
made for mis," he wrote to Roxy Stinson. "This intrigue is setting 
me crazy. If I could just come home— but I am in now and have to 
stand by Harry . . ." 

By the spring of 1923, Smith had further cause for anxiety. The 
details of Colonel Forbes' embezzlements in the Veterans' Bureau 
were coming to light. The Senate Committee on Public Lands and 
Surveys was investigating the leases to Teapot Dome and Elk Hills, 
and Secretary of Interior Fall had just resigned. How long would 
it be, Smith wondered, before someone discovered what was going 
on inside the Justice Department? 

V^hen Smith visited Washington Court House, Ohio, that April, 
he was a terrified man. He knew "too much," he told Roxy Stinson; 
and he could no longer trust anyone. Even the men with whom he 
had worked so closely— yes, even his old friend Daugherty— had 
now become suspicious of him. They thought he was weak and 
might talk. And they were men, he said, who would stop at noth- 
ing .. . 

Smith and his former wife went to Columbus, Ohio, to attend a 
dance, but Smith urged that they return to Washington Court 
House while it was still afternoon. 

"Let's go home before dark," he said. 

On the train back to Washington Court House, Smith handed 
Roxy Stinson his brief case, which was bulging with documents 
and papers. "Carry them," he said, "I don't want to carry them." 

When they were in a taxi driving away from the Washington 
Court House station, Smith kept glancing nervously out the rear 
window. Finally, Roxy Stinson told him, "Don't you do that again." 

"All right," replied Smith with a weak smile. 

67 



They drove on in silence for a while. Then Smith said, "They 
are going to get me, they are going to get me." 

"No, they won't." 

"They passed it to me." 

"Oh, don't," said Roxy Stinson. "You are all right. You are all 
right." 

"You better destroy any letters and papers." 

Roxy Stinson placed her hand on his. "Tell me all about it, 
Jess," she said. "I know so much." 

"No, no, no," said Smith. "Just cheer me up, just cheer me up." 

The final thing Smith told Roxy Stinson before leaving Wash- 
ington Court House to return to the Capitol was not to go out 
by herself after dark and never to drive alone. 

"The man was afraid," she said later. "The man was afraid." 

It was the last time that Roxy Stinson saw Jesse Smith. 

Shortly before daw^n on May 30, 1923, Jesse Smith was found 
dead in the suite that he shared with Attorney General Daugherty 
at the Wardman Park Hotel in Washington, D. C. He was lying 
on the floor with a bullet in his head, and in his outstretched hand 
was a revolver. 

The coroner's verdict was suicide. William J. Burns, chief of the 
Bureau of Investigation, took charge of the body. 

No autopsy was performed before the burial. 

Attorney General Daugherty was not present when Smith's body 
was discovered. He had spent the night at the White House. 

"The act," stated Daugherty regarding the death of his old 
friend, "could be accounted for only on the ground of a complete 
mental collapse." Smith, he added, had suffered severely from di- 
abetes. "This insidious disease plays sad tricks with the brain . . . 
It has made many suicides. It has broken down the moral fibre of 
character. I shall always remember my friend before his illness 
when he was himself, kindly, helpful, loyal, generous." 

The Attorney General was conspicuously absent from Jesse 
Smith's funeral. 



4. Sudden Death 

Jesse Smith was not the only man prominently associated with 
the Harding Administration to break under the strain of criminal 
68 



intrigue and the dread of exposure, and to die under unusual or 
mysterious circumstances. There were a number of others. 

Among them was President Harding himself. 

By early 1923 an extraordinary change had taken place in Har- 
ding's personality and appearance. He was no longer the handsome, 
affable personage who had been sworn in as President in March, 
192 1. He had aged shockingly. His face, now haggard, lined and sal- 
low, wore a haunted look. Occasionally, when he made a public 
appearance, his features twisted into a grotesque grimace— he was 
attempting to smile. His hands shook uncontrollably. He could not 
sleep at night. Great dark pouches lay under his eyes, which 
seemed to stare fearfully at the world about him. 

As the various Senate investigations moved relentlessly ahead, and 
the whole scandal of his Administration threatened to flare into the 
open, Harding periodically asked the few newspapermen he still 
trusted what a President should do "whose friends have betrayed 
him" . . . 

In June, 1923, traveling in his private railroad car, the "Superb," 
President Harding set out from Washington for a tour of the west 
coast and Alaska. The tour was never to be completed. 

Returning by boat from Alaska in the latter part of July, Harding 
was stricken with what was at first reported to be an attack of 
ptomaine poisoning. On his arrival in San Francisco, he was con- 
fined to bed at the Palace Hotel, his illness now being diagnosed as 
pneumonia. A few days later, the President's physicians announced 
that Harding was "resting comfortably" and was safely on the way 
to recovery. 

Then, suddenly, on the evening of August 2, the startled nation 
was informed that President Harding was dead. "Death," stated an 
official bulletin signed by Harding's physicians, "was apparently 
due to some brain evolvement, probably an apoplexy." 

In the early morning hours of August 3, by the flickering light 
of an oil lamp in the Uving room of his family's farmhouse at Ply- 
mouth Notch, Vermont, Calvin Coolidge was sworn in by his 
aged father, a justice of the peace, as the new President of the 
United States. 

Various strange circumstances surrounded President Harding's 
final illness and death. 

69 



The food-poisoning from which Harding had supposedly first 
fallen ill was said to have come from eating crab meat on the boat 
from Alaska. Crab meat, however, was not among the supplies listed 
in the steward's pantry. Furthermore, no other member of the 
presidential party was aifected by "ptomaine poisoning." 

During the first few hours following the President's death, news- 
papermen were officially informed that no physician was present 
when Harding died and that Mrs. Harding had been alone with 
her husband at the time. This report was then altered to specify 
that the President's chief physician. Brigadier General Charles E. 
Sawyer, had been in Harding's bedroom when death came. On 
August 5, three days after Harding's death, the Nenj: York Times 
reported: 

There have been several versions of the incidents surrounding the 
death of President Harding ... It was told by some of those in the 
vicinity that Mrs. Harding rushed to the door of the bedroom and 
called for help from her husband's physicians . . . People with nerves on 
edge or stunned by the tragedy were unable to give any coherent ac- 
count of what took place . . . The official bulletin was in error . . . 

Several of the physicians who had been attending President 
Harding urged that an autopsy be held. On Mrs. Harding's in- 
sistence, however, Harding was buried without an autopsy.* 

* Various theories were subsequendy advanced in explanation of President 
Harding's death. One was that, facing imminent catastrophe from exposure of 
the corruption and crime within his Administration, Harding had committed 
suicide. Another theory held that Mrs. Harding had poisoned her husband, 
either because she had discovered the details of his affair with Nan Britton or 
because she wished to avert national disgrace for him from the mounting 
scandals in the Administration. 

In 1930, in his book. The Strange Death of President Harding, Gaston B. 
Means, who had been in close touch with the White House while a Justice 
Department agent, clearly intimated that Mrs. Harding, in connivance with 
Dr. Charles E. Sawyer, had murdered her husband and that she had later 
practically admitted this to him. Means. 

"Both the suicide theory and the Means story are very plausible," writes 
Frederick Lewis Allen in Only Yesterday. 

Oswald Garrison Villard, in Fighting Years, states: "I am of those who lean 
to the belief that there was foul play in his death . . ." 

Some commentators on the period are of the opinion that there was nothing 
mysterious about Harding's death and that he died from natural causes. "There 
was no mystery," observes Samuel Hopkins Adams in Incredible Era, "other 
than that conjured up by excited minds, or concocted .and commercialized 
by Gaston B. Means." 

But whatever the real cause of President Harding's demise, there were in 
addition to his death and that of Jesse W. Smith, a strangely coincidental 

70 



5- Millionaires on Trial 

"If I could write one sentence upon his monument/* said Bishop 
William Manning a few days after President Harding's death, in 
a sermon delivered at the Cathedral of St. John the Divine in New 
York City, "it would be this, 'He taught us the power of brotherli- 
ness.' It is the greatest lesson any man can teach us. May God ever 
give our country leaders as faithful, as wise, as noble in spirit, as 
the one whom we now mourn." 

But Warren Harding was not long in his grave before the nation 
was getting a glimpse of what had been transpiring behind the 
scenes durinor his Administration. 

On October 23, 1923, in a large caucus room in the Senate Office 
Building, the Senate Committee on Public Lands opened public 

number of other sudden deaths and "suicides" of persons who had been closely 
connected with the Harding Administration. 

On March 14, 1923, Charles F. Cramer, Colonel Forbes' former aide and 
chief counsel of the War Veterans' Bureau, was found dead in his bathtub 
at his Washington residence. A bullet had been fired through his brain. The 
coroner's verdict was suicide. 

On September 23, 1924, Brigadier General Charles Sawyer, Harding's former 
personal physician, who was said to have been with the President at the time 
of his deith, was found dead at his home, White Oaks Farm, at Marion, Ohio. 
The New York Times reported: "General Sawyer's death was almost identical 
with the manner of death of the late Warren G. Harding . . . Mrs. Harding 
was at White Oaks Farm when General Sawyer was found dead. Members of 
his family had no intimation of the seriousness of the General's condition up 
to the moment he expired." 

On March 12, 1926, Thomas B. Felder, a lawyer who had been closely asso- 
ciated with Attorney General Daugherty in Justice Department intrigues and 
had later been sentenced to jail along with Gaston B, Means, died at Savan- 
nah, Georgia. His death was reported due to a "heart attack" and "alcohol 
poisoning." The New York Times stated that shortly before Felder died he 
had announced his intention to "publish the complete records of the case in 
a Georgia paper he intended to buy in order to vindicate himself." 

On May 13, 1926, John T. King, the former Republican National Commit- 
teeman who had been involved in the American Metals Company scandal 
died of "pneumonia." Shortly before his death, King had been indicted on 
the charge of conspiracy to defraud the U. S. Government in the American 
Metals case. The New York Times reported that the Government had "ex- 
pected to use Mr. King as a witness to prove the alleged payments of $391,000 
... to Col. Miller, the late Jesse W. Smith, friend of Mr. Daugherty, and 
himself." 

On May 3, 1926, J. W. Thompson, partner in the Thompson-Black Con^ 
struction Company, who had been sentenced to jail along with Colonel 
Forbes, died of a "heart attack" in St. Louis, Missouri. 

On February 16, 1928, while under indictment on conspiracy charges for his 
part in the bribing of Secretary Fall, Edward L. Doheny, Jr., was murdered 
by his secretary, who then committed suicide. 

71 



hearings on the Government leases to the naval oil reserves at Tea- 
pot Dome and Elk Hills. 

The first witness at the Senate hearings was ex-Secretary Fall 
himself. Verbose, arrogant and blusteringly evasive, Fall angrily 
denied there had been anything remotely improper about his con- 
duct in ofiice. In making the oil leases, as at all other times, declared 
Fall, he had been motivated by patriotism of the highest order. 

Fall's testimony was supported by that of Harry Sinclair, who 
emphatically stated that in his dealings with the Secretary of In- 
terior the latter had received no "benefits or profits, directly or 
indirectly, in any manner whatsoever." Edward L. Doheny told 
the Senate Committee, in a voice vibrant with emotion, that he was 
deeply shocked by the disgraceful accusations that had been leveled 
against his old friend, Albert Fall. "I want this record to show," 
said Doheny, "that I felt very badly about it; in fact, felt outraged 
by it." 

But during the ensuing weeks, as dozens of geologists, naval offi- 
cers, oil experts, government officials and other witnesses appeared 
before the Committee, one incriminating fact after another came 
into the open; and slowly but inexorably the pieces of the complex 
jigsaw of criminal intrigue, venality and fraud fell into place. 

By the beginning of 1924, leading oil circles in the United States 
were infected with a mood of feverish anxiety. The rumor spread 
that the Senate Committee was about to subpoena a number of 
leading figures in the oil industry. Overnight, there was a sudden 
exodus from America of oil tycoons. 

On January 16, Harry Sinclair sailed for France aboard the 5.S. 
PariSy with his name discreetly missing from the passenger list. In 
February, James O'Neil, president of the Prairie Oil and Gas Com- 
pany, and Henry Blackmer, president of the Midwest Refining 
Company, after resigning from their respective posts, also sailed for 
Europe. Colonel Robert W. Stewart, chairman of the board of 
Standard Oil of Indiana, abruptly departed for Mexico and South 
America. H. S. Osier, head of the dummy Continental Trading 
Company, went to Africa "to hunt hons." * 

* The Continental Trading Co. was a dummy company incorporated under 
Canadian law late in 192 1 by Harry Sinclair, James O'Neil, Colonel HRobert 
W. Stewart, and Henry M. Blackmer. Operating through this company, the 
four associates secretly arranged to buy more than 30,000,000 barrels of oil 
from a large new oil field in Mexia, Texas. The price they paid was $1.50 a 
barrel. Continental Trading Co. then resold the oil at $1.75 a barrel to the 

72 



On his return to the United States in the summer of 1924, Harry 
Sinclair was again summoned before the Senate Committee. This 
time, on the constitutional grounds that his answers might tend t* 
incriminate him, Sinclair refused to answer any questions. He was in- 
dicted by a federal grand jury on charges of contempt of the 
Senate. 

On June 30, 1924, Albert Fall, Harry Sinclair, Edward Doheny 
and Edward Doheny, Jr., were all indicted by a special federal 
grand jury on charges of conspiracy and bribery. 

The federal indictments of Fall, Sinclair, Doheny and his son, 
were followed by months and months of protracted court action, 
with a battery of high-priced lawyers employed by the oil magnates 
resorting to every conceivable device to delay and frustrate the 
process of the law. 

Not until March 1927, was Sinclair finally tried on the Senate 
contempt charge, found guilty and sentenced to three months, 
imprisonment and a |iooo fine. 

In the fall of 1927, Fall and Sinclair went on trial on charges of 
criminal conspiracy to defraud the Government. On the first day 
of the trial it was disclosed by the prosecution that jurors and wit- 
nesses were being trailed and intimidated by operatives of the Wil- 
ham Burns Detective Agency and that Sinclair was paying the 
Agency for these services. It was also revealed that attempts had 
been made to bribe a number of jurors. The judge declared a mis- 
trial. 



American companies headed by Continental's promoters. The profits to Sin- 
clair and his colleagues from this deal would have exceeded $8,000,000— and 
would have cost the stockholders in their American firms the same amount— 
if these oil magnates had not turned in these profits to their respective com- 
panies after the deal was exposed by Senate investigators. 

There was no direct connection between the Teapot Dome and Continental 
deals; but Sinclair received some of Continental's profits in Liberty bonds, 
and later turned over a portion of these bonds to Secretary Fall at the time 
of the leasing of Teapot Dome. It was through tracing these bonds thtt 
Senate investigators discovered the Continental Co. arrangements. 

After hurriedly departing from the United States in 1924, the oil magnates 
connected with the Continental deal straggled back to the country during 
the following months, with the exception of Henry Blackmer. He remained 
in France until September 1949. After agreeing to pay the U. S. Got- 
emment $3,671,065 in back taxes and $60,000 penalties, he returned to the 
United States. It was then reported that the Government had removed blocks 
on frozen assets of Blackmer amounting to some ten million dollars. Five 
criminal charges against Blackmer were dismissed, after he paid $20,000 in 
final settlement for income tax evasion. 

7^ 



Sinclair and William J. Burns, the former chief of the Bureau of 
Investigation, and several of their accomplices were subsequently 
tried for seeking "to bribe, intimidate and influence" jurors. Found 
guilty, Sinclair was sentenced to six months in jail and Burns to fif- 
teen days. Bums was exonerated on appeal, but Sinclair served con- 
currently three months for contempt of the Senate, and six months 
for intimidation and influencing of jurors. 

When Fall and Sinclair were tried a second time on charges of 
conspiring to defraud the Government, both men were acquitted. . . 

In October 1929 Fall was tried on the charge of accepting a bribe 
from Edward L. Doheny. The former Secretary of Interior was 
found guilty, fined $100,000 and given a one-year prison term. 

Five months after Fall was convicted of accepting a bribe frorh 
Doheny, the California oil tycoon was tried on charges of giving 
the bribe. Doheny was acquitted. 

"We ought to pass a law," Senator George W. Norris of Neb- 
raska commented bitterly, "that no man worth $100,000,000 should 
be tried for a crime. That at least would make us consistent." 

The intrigues of Sinclair, Doheny and Fall were not the only 
ngly secrets of the Harding Administration to come to light after 
Harding's death. 

In the spring of 1924 a Senate Select Committee began public 
hearings on an investigation of the activities of Attorney General 
Harry M. Daugherty. 

Republican Party leaders, apprehensive over the possible harm to 
their cause in the Presidential election that fall, decided that 
Daugherty must resign immediately. Daugherty angrily refused to 
do so. The Senate investigation, he said, was the work of "Com- 
munist agents and their tools," and Senator Burton K. Wheeler, who 
was conductng the inquiry, was "no more a Democrat than StaUn, 
kis comrade in Moscow." 

Only after President Coolidge sent the Attorney General a writ- 
ten request for his resignation did Daugherty resentfully resign . . . 

One of the first witnesses before the Senate Select Committee was 
Jesse Smith's former wife, Roxy Stinson. She not only told the 
Committee what she had learned through Smith about the criminal 
conspiracies in the Justice Department, but also revealed she had 
been repeatedly threatened in an effort to prevent her from testify- 

74 



ing. "I am not Jess Smith," said Roxy Stinson, "and there is not 
going to be a convenient bullet in my head." * 

Another of the numerous witnesses to appear before the Senate 
Select Committee was Gaston B. Means. In copious, uninhibited 
detail, and not without a certain pride. Means described his criminal 
operations as an agent of the Bureau of Investigation. Among other 
disclosures. Means revealed how various Senators had been secretly 
investigated by Justice Department operatives, in an effort to fore- 
stall the Teapot Dome probe and other senatorial investigations. 

"You also investigated Senator LaFollette, did you not.^" asked 
Senator Wheeler. 

"Yes," repUed Means. 

"And you went through his ofHces here, did you not, in the 
Capitol?" 

"I saw that it w^as done ... I would just as soon investigate a 
tramp as anybody else . . . The man is a number. I never ask who 
he is . . . Thousands of people have been investigated. Bishops have 
been investigated. And clergymen—" 

The Chairman of the Senate Committee, Senator Smith Brook- 
hart, interrupted. "When did this terrific spy system start in the 
United States," he asked, "by what authority, if you know?" 

"I never saw a candidate that loomed up . . . that they did not 
go out and make an inquiry about him . . . The financial crowd 
finance and get investigations." 

"You mean the financial interests investigate everyone who is a 
candidate for office to get something on him," asked Senator Brook- 
hart, "so they can control him, is that the idea?" 

"Well, yes, that would be my interpretation . . ." 

"And that gang . . ." said Senator Brookhart, "is the same gang 
that I have denominated as the non-partisan league in Wall Street? 
Is that the crowd?" 

Means nodded. "I think that President Wilson gave them the best 
designation, 'invisible government.' " t 

* One of the witnesses who testified at the Senate hearings was Mrs. W. O. 
Duckstein, former secretary to William J. Burns. The day after she had 
given her testimony she received a letter from J. Edgar Hoover, then Acting 
Director of the Bureau of Investigation, peremptorily dismissing her from her 
job in the Justice Department. 

t Gaston B. Means died in 1938 in a federal penitentiary. He was then 
serving a term for defrauding Mrs. Edward B. McClean of $100,000 in 1932 
on the pretext that this sum would enable him to get back the kidnapped child 
of Ann and Charles Lindbergh. 

IS 



Daugherty flatly refused to testify at the hearings. When Com- 
mittee investigators sought to examine his accounts at the two banks 
in Washington Court House, Ohio, his brother, Mai Daugherty, 
who headed both banks, would not permit an inspection of the 
records. It was later learned that all the records had been destroyed. 

Despite the extensive evidence of his malfeasance as Attorney 
General, Daugherty appeared in court to answer for only one of the 
many conspiracies with which his name had been associated, while 
he was in office. In 1926, together with the former Alien Property 
Custodian, Colonel Thomas W. Miller, Daugherty was tried on 
charges of conspiracy to defraud the Government and receiving 
bribes in connection with the settlement of the American Metal 
Corporation case. 

Daugherty again refused to testify on the ground that his testi- 
mony might tend to incriminate him. Colonel Miller was found 
guilty, fined $5000 and given a year-and-a-half sentence. The jury 
reported they could not reach an agreement on the guilt of 
Daugherty, and he was acquitted . . . 

To the bitter end, Harry Daugherty insisted he was the victim of 
a sinister international plot which had its fountainhead at the Krem- 
lin in Moscow. "I was the first official," he charged in his memoirs, 
"to be thrown to the wolves by the Red borers of America. Their 
ultimate success in my case was intended to intimidate every man 
who succeeded me, and make the American Republic thereafter 
cower under a reign of terror." 

But the actual menace to the American Republic during 1920- 
1932 was of quite a different nature from that indicated by former 
Attorney General Daugherty. As Karl Schriftgeisser states in This 
Was Normalcy: 

. . . Fall and Daugherty, Forbes and Jess Smith, and all the rest of the 
gangsters of this truly "incredible era," were in reality merely symbols 
of a greater corruption which overtook the country during the next 
twelve disastrous years. They cannot be ignored by the historians, but 
their thefts and violences and the sounds of their revelry . . . were only 
coincidental to the abdication of the democratic spirit that was the 
fundamental crime perpetrated upon the people in these years. 



76 



Chapter vi 

THE GOLDEN AGE 



It is one thing to commit crimes against property, and a 
vastly different thing to commit crimes in behalf of property. 

Gustavus Myers, History of the Great 
American Fortunes 



I. "Aren't We All Rich Now?" 

It could not be claimed that, in terms of their poUtical-economic 
beliefs, there were striking differences between the Presidential can- 
didates of the two major parties in 1924. 

The Democratic Party candidate was the handsome, soft-spoken. 
Wall Street attorney, John W. Davis, former U. S. Solicitor Gen- 
eral and one-time Ambassador to Great Britain, whom the King 
of England had characterized as "one of the most perfect gentlemen 
I have ever met." Once regarded as an outstanding Hberal, Davis— 
now a director in the United States Rubber Company, the National 
Bank of Commerce, the Santa Fe Railroad and other such concerns 
—had this to say of himself: 

I have a fine list of clients. What lawyer wouldn't want them? I have 
J. P. Morgan & Company, the Erie Railroad, the Guaranty Trust Com- 
pany, the Standard Oil Company, and other foremost American con- 
cerns on my list. I am proud of them. They are big institutions and 
as long as they ask for my service for honest work, I am pleased to 
work for them. Big Business has made this country what it is. We want 
Big Business . . . 

Calvin Coolidge, the Republican candidate, characteristically ex- 
pressed the same thought in more succinct language. "The business 
of America," said Coolidge, "is business." 

77 



While the campaigns of both candidates were generously subsi- 
dized by big-moneyed interests, the leading industrialists and 
financiers were more sympathetically inclined toward Coolidge's 
candidacy. Their feelings were summed up by Henry Ford: "The 
country is perfectly safe with Calvin Coolidge. Why change?" 

Not a few Americans, however, regarded both candidates with 
a jaundiced eye. 

Members of the Farmer Labor Party and the Conference for Pro- 
gressive PoHtical Action vigorously denounced the tweedledum- 
tweedledee character of the Republican and Democratic Parties 
and the ever-growing Government control by giant trusts and 
monopoHes. Their candidate for President was Robert M. La Fol- 
lette, popularly known as "Fighting Bob," the shaggy-haired, 
elderly, deeply courageous if somewhat quixotic senator from Wis- 
consin, who tirelessly crusaded against the mounting "encroach- 
ment of the powerful few upon the rights of the many." 

Few poHtical wiseacres gave Senator La Follette a chance of being 
elected. But his words were sufiiciently far-reaching and his follow- 
ing large enough to cause considerable alarm in the inner circles of 
both major parties, and an intensive, lavishly financed campaign of 
slander and vilification was organized to discredit La Follette and 
his running mate, Senator Burton K. Wheeler of Montana.* Leading 
Republicans and Democrats alike accused the two senators of being 
the "tools of Bolshevik agents," and charged that "Moscow gold" 
was swelling their campaign funds. Newspaper advertisements 
championing the candidacy of "Silent Cal" featured the slogan, "I 
like Silence and Success better than Socialism and Sovietism." t 

If Coolidge was silent, money talked. Subsequent estimates of the 
Republican campaign expenditures ranged from $15,000,000 to 
$30,000,000. 

The dour, pinch-faced Republican candidate, whose thoughts 
were as sparse as his mode of speech, was returned to ofiice by an 
overwhelming majority of the votes. 

Far more surprising than Coolidge's victory was the number of 
votes cast for Senator La Follette. Despite the propaganda drive 
against LaFollette, a badly mismanaged and meagerly financed cam- 

* At the time, Senator Wheeler was an outspoken foe of monopoly and 
reaction In later years, Wheeler himself became one of the most reactionary 
members of the Senate. See page 221. 

+ Actually, the Communist Party did not support La Follette, but ran its 
own presidential candidate, William Z. Foster. 

78 



paign and the fact his name was not even on the ballot in a number 
of states, approximately one out of every six persons who went 
to the polls voted for "Fighting Bob." La Follette's total vote was 
4,822,000. 

Impressive as was this demonstration of widespread opposition 
to the Government's postwar policies, it failed to divert the states- 
men and financiers from the disastrous course upon which they had 
embarked. 

"I am sure that Coolidge would make a good President. I think he 
would make a great one . . . ," Dwight W. Morrow, partner in 
the firm of J. P. Morgan & Company had written in a letter to a 
friend as early as 1920. 

There was nothing in Coolidge's conduct as President to diminish 
Dwight Morrow's high regard for him . . . 

A dominant theme in President Coolidge's public utterances was 
the "Power of the Moral Law." "We do not need a more material 
development, we need a more spiritual development," Coolidge 
emphasized. "We do not need more intellectual power, we need 
more moral power . . ." 

At the same time, the President showed a statesmanlike flexibility 
in the application of his Moral Law by dismissing the Teapot Dome 
and other unsavory Harding scandals as "errors of judgment" . . .* 

* The only change Coolidge made in the Cabinet after Harding's death 
was in the replacement of Attorney General Harry M. Daugherty by Harlan 
Fiske Stone, former dean of the Columbia Law School. 

As Attorney General, Stone effected an extensive shake-up in the Justice 
Department. The shake-up, however, did not eliminate all of those officials 
who had been prominently involved in the Palmer raids and other post-war 
machinations of the Justice Department. While William J. Bums, chief of the 
Bureau of Investigation, was removed from office, his place was taken by his 
former assistant and ex-head of the Bureau's General Intelligence Division, 
J. Edgar Hoover. 

In a statement reprimanding the Bureau of Investigation for its "anti-radical" 
operations, Attorney General Stone declared shortly after taking office: "The 
Bureau of Investigation is not concerned with political or other opinions of 
individuals. It is concerned only with such conduct as is forbidden by the 
laws of the United States. When a police system goes beyond these limits 
it is dangerous to the proper administration of justice, and to human 
liberty . . ." 

Dexterously setting his sails to the new wind, J. Edgar Hoover acknowl- 
edged in a memorandum to Assistant Attorney General William J. Donovan 
on October 18, 1924: "It is, of course, to be remembered that the activities 
of Communists and other ultra-radicals have not up to the present time con- 
stituted a violation of the federal statutes, and, consequendy, the Department 

79 



President Coolidge's views on labor problems remained what they 
had been when, as a member of the Massachusetts State Senate, he 
described strike leaders as "socialists and anarchists" who "do not 
want anybody to work for wages," and stated: "If any man is out 
of a job it's his own fault . . . The State is not warranted in 
furnishing employment for anybody so that persons may work." 

With Dwight iMorrow and another Morgan partner, Thomas 
Cochran, among the President's most intimate advisers, the Coolidge 
Administration sedulously cultivated the growth of trusts and mo- 
nopolies. In the words of William E. Humphries, a newly appointed 
member of the Federal Trade Commission: 

The Interstate Commerce Commission has become the bulwark in- 
stead of the oppressor of the railways . . . 

The President, instead of scoffing at big business, does not hesitate 
to say that he purposes to protect the American investor wherever he 
may rightfully be. 

The Secretary of Commerce [Herbert Hoover], far from appealing 
to Congress for legislation regulatory of business, allies himself with 
the great trade associations and the powerful corporations. 

The foreign policy of the Coolidge Administration was defined 
in unusually frank language by Secretary of the Na\y Curtis 
Wilbur, during a speech before the Connecticut Chamber of Com- 
merce: 

Americans have over twenty millons of tons of merchant shipping 
to carry the commerce of the world, worth three billion dollars. We 
have loans and property abroad, exclusive of government loans, of over 
ten billions of dollars. If we add to this the volume of exports and im- 
ports for a single year— about ten billion dollars— we have an amount 
almost equal to the entire property of the United States in 1868 and if 
we add to this the eight billion dollars due us from foreign governments, 
we have a total of $31,000,000,000, being about equal to the total wealth 
of the nation in 1878 . . . These vast interests must be considered when 
we talk of defending the flag . . . We fought not because Germany 
invaded or threatened to invade America but because she struck at 
our commerce on the North Sea . . . To defend America we must be 
prepared to defend its interests and our flag in every corner of the 
globe . . . 

of Justice, theoretically, has no right to investigate such activities as there has 
been no violation of federal laws." 

It was a bitter pill for J. Edgar Hoover to swallow; but he was willing to 
bide his time and await a more propitious day when he might resume his old 
"anti-radical" activities. See Books Three and Four for data on Hoover's sub- 
sequent operations. 

80 



To further such American "interests," hundreds of millions of 
dollars in public and private loans were streaming across the 
Atlantic into the vaults of German industrialists and bankers who 
were secretly rearming the Reich and subsidizing Hitler's rapidly 
growing National Socialist Party. American-owned auto, electrical 
equipment, aircraft and other plants were springing up throughout 
Europe. General Electric was assuming the dominant interest in the 
German electrical combine, A.E.G., one of the major contributors 
to the Nazi Party fund. Standard Oil was concluding cartel agree- 
ments with I. G. Farbenindustrie. General Motors was negotiating 
for control of the German auto firm of Adam Opel, A. G. Enor- 
mous sums were being advanced to II Duce's Italy, and large invest- 
ments made in White Guard dictatorships in Poland, Hungary, 
Bulgaria, Finland and Roumania. 

The golden threads of Wall Street webbed the world. By 1926, 
Commerce and Finance was able to make the impressive claim that 
the United States had "a mortgage on the lives of both the living 
and the unborn in practically every nation of Europe, except 
Russia." * 

* The Dawes Plan in 1924 and the Young Plan in 1929 arranged for huge 
loans to Germany. A large portion of the funds thus obtained were used by 
Genuan industrialists to finance their secret rearmament program, and to 
build the Hitler movement. 

The Dawes Plan was drawn up by a committee of experts established by 
the Allied Reparations Commission. The committee functioned under the 
supervision of General Charles G. Dawes, Chicago financier, director of the 
budget under Harding, and vice-president during Coolidge's second term. A 
leading member of the committee of experts was Owen D. Young, chairman 
of the board of the Morgan-controlled General Electric Company. More than 
$200,000,000 of the international gold loan borrowed by Germany under the 
Dawes Plan was floated in the United States by Morgan and his associates. 

The second international committee of experts, which drafted the Young 
Plan in 1929 to replace the Dawes Plan, operated under the chairmanship of 
Owen D. Young and included J. P. Morgan himself as an associate. 

Other Americans who played an important role in projecting the Dawes 
and Young Plans were Herbert Hoover; the Wall Street lawyer, John Foster 
Dulles; and the banker, W. Averell Harriman. The chief negotiator for 
Germany was Hjalmar Schacht, then head of the Reichsbank and later Hitler's 
Minister of Economics. 

In channeling funds from the United States into Germany (during 1924- 
1929 Wall Street sank approximately four billion dollars into Germany), a 
leading role was played by the Wall Street banking firm of Dillon Read and 
Company, among whose directors were William F. Draper and James V. 
Forrestal. 

For similar operations on the part of Herbert Hoover, John Foster Dulles, 
W. Averell Harriman and James V. Forrestal after the Second World War, 
see Book Four. 

81 



In the opinion of many American statesmen and business leaders, 
mankind was entering an era of American world domination. Re- 
flecting this viewpoint, Ludwell Denny, chief editorial writer of the 
Scripps-Howard Newspaper Alliance, wrote in his book, America 
Conquers Britain: 

The "feeling" of victory is on America's side. It is America's "day." 
The devastating "will to win" so characteristic of youth, and the energy 
and daring which flow from it, drive America forward. The sense of 
"manifest destiny" is contagious . . . 

The "Americanization" of Europe and the far places of the earth" 
advances . . . We were Britain's colony once. She will be our colony 
before she is done, not in name but in fact. Machines gave Britain power 
over the world. Now better machines are giving America power over 
the world. 

What chance has Britain against America? Or what chance has the 
world? 

At home business boomed as never before. Radios, electrical 
appliances, cars, clothing, furniture, cosmetics, refrigerators and 
other goods poured in an unending torrent from the nation's 
machines. New factories and office buildings mushroomed on every 
side. "CooUdge Prosperity" was the slogan of the day . . . 

Not everyone, of course, had the money to buy what he wanted; 
but nearly everyone bought. They purchased on credit, and paid 
the "easy way," on "easy terms." In 1926, more than one-sixth of 
the 40 billion sales volume in America was installment buying. 

Mammon was king and the mores were those of the stock market. 
The American people, wrote Senator George Norris in his auto- 
biography. Fighting Liberal, had been "brought ... to their knees in 
worship at the shrine of private business and industry." A Mellon, 
Hoover, Rockefeller, Dawes or Morgan was regarded as oracle, 
sage, scientist, dreamer-of-great-dreams, doer-of-great-deeds and 
statesman, all rolled into one. The businessman had become, in 
Stuart Chase's phrase, "the dictator of our destinies." 

A billboard in New York City read: "Come to Church. Christian 
Worship Increases Your Efficiency." A pamphlet issued by the 
Metropolitan Insurance Company, entitled Moses, Persuader of 
Men, portrayed the Israelite leader as "one of the greatest salesmen 
and real-estate promoters that ever lived." One of the leading best- 
sellers, Bruce Barton's The Man Nobody Knows, described how 
Jesus Christ had 
82 



picked up twelve men from the bottom ranks of business and forged 
them into an organization that conquered the world . . . Nowhere is 
there such a startling example of executive success as the way in which 
that organization was brought together . . . [Jesus] was the founder of 
modern business. 

With profits seemingly limitless, and stocks rocketing to astro- 
nomical new heights, the millenium of capitalism appeared to have 
arrived. 

"The great wealth created by our enterprise and industry, and 
saved by our economy," proudly declared President Coolidge, "has 
had the widest distribution among our people, and gone out in a 
steady stream to serve the charity and business of the world." 

In an article published in Colliers magazine, the well-known 
journalist and Ford publicist, Samuel Crowther, exulted: 

That there is no poverty other than voluntary or due to accident or 
disease, and this is negligible. 

That we are, excepting in a few sections, solidly prosperous, with a 
buying power beyond comprehension. 

That the standard of living is very high, but without a leaning toward 
extravagance . . . 

That those who complain of hard times are those who fail to adjust 
themselves to a new order of things in retailing, manufacturing or agri- 
culture. 

That there is nothing of what we used to call radicalism. 

That nothing can wreck our ship excepting ingeniously bad manage- 
ment in government or in industry. 

Samuel Crowther's article was entitled: "Aren't We All Rich 
Now?"* 



* Actually, for the great majority of Americans "Coolidge Prosperity" was 
a cruelly elusive mirage. 

There was widespread poverty in the rural areas, with bankruptcies and 
foreclosures mounting among the farmers. The number of unemployed in 
the land hovered between two and four million. In 1929, at the peak of 
"prosperity" some 28,000,000 Americans failed to earn enough money to pro- 
vide them with a minimum decent standard of living; and in four southern 
states Negro workers had an average income of less than $300. 

"At 1929 prices," reported the Brookings Institute, "a family income of 
$2,000 may perhaps be regarded as sufficient to supply only basic necessities." 
And these, according to the Brookings Institute, were the incomes of Amer- 
ican families that year: 

Nearly 6 million families, or more than 21 per cent of the total, had 
incomes less than $1,000. 

About 12 million families, or more than 42 per cent, had incomes less 
than $1,500. 

Nearly 20 million families, or 71 per cent, had incomes less than $2,500. 
The economist. Professor Paul Henry Nystrom of Columbia University, 

83 



In 1929 the Federal budget totaled four and a half billion dollars. 
That same year, according to Wade H. Ellis, former Assistant U.S. 
Attorney General and head of the American Bar Association, the 
nation's crime budget was thirteen billion dollars. 

Crime had become a leading business in the United States. 

In an article in the North America?! Review entitled "Our Big- 
gest Business— Crime," the retired New York Police Commissioner, 
Richard E. Enright, wrote: 

The inescapable truth is that the annual total of the country's crim- 
inals, of whom 400,000 are in cells and a milUon at liberty is the most 
disturbing feature of our social order, the gravest problem confronting 
America. 

In 1928 alone, stated Enright, some 12,000 Americans had been 
killed by criminals, a number equalling ten per cent of the nation's 
total losses in the Great War . . . 

The trades of mayhem, arson, vandalism and murder were being 
widely pursued on a practical cash basis. Colliefs magazine noted 
editorially: 

Commercial rates have been fixed, for bombers and gunmen. A simple 
bombing in some cities can be had for as little as S50, a cold-blooded 
murder by machine-gunners may bring $10,000. 

From bootlegging, gambling, prostitution and dope peddHng, the 
nation's racketeers had branched out into almost every field of 
business. The New York World reported in the late twenties that 
some 250 industries in New York City were partially or completely 
controlled by gangsters; the yearly "take" of these gangsters was 
estimated at between $200,000,000 and $600,000,000. "It would 
appear . . . ," observed Thomas Grain, New York County District 
Attorney, "that they have their hands in everything from the cradle 
to the grave, from baby's milk to funeral coaches." 

"We're big business without high hats," Dion O'Banion, Chicago 
gang Czar known to milHons as the mobster who loved flowers, told 
a newsman shortly before being shot down by rival gangsters. His 
funeral was attended by thousands of citizens; there were twenty- 
five truckloads of floral wreaths; and his coffin cost $10,000 . . . 

estimated in his book, Economic Principles of Consumption, that with the 
Boom at its zenith, 1,000,000 Americans were public charges; another 1,000,000, 
broken in health and spirit, were "unemployable"; a minimum of 7,000,000 
were living under such circumstances that the least emergency meant for 
them a choice between starving or accepting charity; and the incomes of 
another 12,000,000 provided them with a "bare subsistence." 

84 



/Of Al Capone, the squat, scar-faced former pimp who had be- 
came absolute monarch of a criminal empire grossing $100,000,000 
a year, it was afterwards reported by Life magazine: "he wholly or 
largely controlled the municipal governments of Chicago, Cicero, 
Burnham and Stickney, 111." 

"Men hke Al Capone and Arnold Rothstein and Bugs Moran," 
wrote Louis Adamic, "are figures of national prominence, 'big men' 
in the same sense that Henry Ford and Charles Schwab are big 
men." 

Like other "big men" in America, Al Capone was deeply dis- 
turbed by radical social trends. At his headquarters in the Lexington 
Hotel in Chicago, Capone solemnly warned Cornelius Vanderbilt, 
Jr., who was interviewing him for Liberty magazine: 

Bolshevism is knocking at our gates. We can't afford to let it in. 
We have got to organize ourselves against it, and put our shoulders 
together and hold fast. 

We must keep America whole and safe and unspoiled. We must keep 
the worker away from the red literature and red ruses; we must see 
that his mind remains healthy. 

"The people know," declared Walter Lippmann, "that they are 
beset by organized criminals who operate on a scale that has horri- 
fied the world. They know that unless they master this evil it will 
master them." 

Lippmann was referring to the "established institution of racke- 
teering" of the "criminal underworld." But during the era of post- 
war prosperity, the American nation was wracked by a far more 
deeply entenched and pernicious form of crime. 

2. The Profits of Crime 

During the first week of April 1927, Juan Leguia, the twenty- 
one year old son of President Augusto Leguia of Peru, sHpped 
quietly into New York City on a highly confidential mission. 

Although young Leguia was considered good newspaper copy 
because of his periodic mad escapades and international reputation 
as a polo player, no New York paper mentioned his presence in the 
.city. The son of the Peruvian dictator was travelling incognito, and 
?all other necessary precautions had been taken to avoid the publicity 
\usually attending his movements. 

85 



Juan Leguia had come north to conclude a secret multi-niilli> 
dollar deal with a small group of Wall Street financiers. 

Shortly after he had established himself in a luxurious apartmer* 
at the Ritz Towers hotel, Leguia conferred privately with repre- 
sentatives of the banking firm of J. W. Seligman & Company. The 
subject under discussion was the size of a bribe Leguia was to 
receive for his "personal services" in facilitating a loan by an 
American banking syndicate to the Government of Peru. 

According to the terms of the agreement reached between Leguia 
and the SeHgman executives, Leguia was to get the major portion 
of all commissions on loans to Peru floated in the United States by 
Seligman and their associates. A special account in the name of 
Juan Leguia was opened on the books of SeHgman & Company. It 
was mutually understood that the details of the "gentlemen's agree- 
ment" were not to be publicized; and no record of them was made 
in writing. 

During the following months, Seligman & Company deposited to 
Leguia's account "commissions" totaling $415,000 . . . 

According to a subsequent statement by Frederick J. Lisman, 
head of Lisman & Company, one of the firms in the banking syndi- 
cate arranging the Peruvian loan, the money turned over to Leguia 
was not a "bribe." It was paid to him, said Lisman, for his "nuisance 
value." Seligman representatives in Peru had reported that young 
Leguia made a practice of obstructing deals between his father and 
American financiers who failed to take his personal interests into 
consideration. 

The confidential arrangement made with Juan Leguia was not the 
only significant item omitted from the circular prospectuses and 
other promotional material used by the members of the banking 
syndicate to stimulate the sale of Peruvian bonds in the United 
States. The Wall Street concerns also refrained from mentioning 
that the Leguia Government was in desperate financial straits, that 
Peru's natural resources were being systematically drained from 
the country by absentee American owners, and that President 
Leguia was maintaining his rule over the impoverished Peruvian 
population by imprisoning, exiling or murdering poHtical oppo- 
nents, and by savage coercive measures against the people as a 
whole. 

By the end of 1928, the Wall Street bankers had sold $90,000,000 
worth of Peruvian bonds to the American public ... 
86 



ein the summer of 1930 the Leguian dictatorship was overthrown 

^i a popular revolt; ex-President Leguia and his sons were im- 

^i^soned by a revolutionary tribunal; and the value of Peruvian 

b'onds on the American market dropped from their original price 

of $91.00 to $4.00 apiece. 

The directors of Seligman & Company were not greatly dis- 
turbed by these developments. The gross profit to their firm from 
the sale of Peruvian bonds had amounted to $5,475,000 . . . 

When the banker, Frederick J. Lisman, was called before the 
Senate Committee on Finance in 1932, he was asked by Senator 
Hiram Johnson regarding the bribing of Juan Leguia: "Do you 
run across that sort of thing often in Latin American countries?" 

"I had heard of it quite often, yes," said Lisman. He added: 
"Bankers do not knowingly float bad loans. But the purpose is to 
do a good business at a profit." 

There were numerous instances among leading American bank- 
ing houses of such "good business at a profit" during the Prosperity 
Years. 

From 1 92 6- 1 9 30 the Chase Securities Corporation, an affiliate of 
the Rockefeller-controlled Chase National Bank, sold $20,000,000 
worth of Cuban "public works securities" and $40,000,000 worth of 
Cuban bonds to the American public. Most of the funds went 
directly into the private coffers of President Gerardo Machado, the 
murderous despot and former cattle-thief who had come to power 
in 1925 aided by a miUion-dollar campaign fund from American 
financial and industrial interests, and who then had smashed the 
Cuban trade union movement, used hired gunmen to assassinate his 
political enemies, and established a brutal military dictatorship. 

Like Seligman & Company, the Chase National Bank found 
bribery useful in its Latin American ventures. President Machado's 
son-in-law, Jose Emilio Obregon y Blanco was appointed "joint 
manager" of the bank's Havana branch at a yearly salary of $19,000, 
and, in addition, given a "commission" of $500,000 when the Cuban 
bond issue was floated. "As we know, from any business standpoint 
he is perfectly useless," James Bruce of the Chase National Bank 
wrote regarding Obregon y Blanco in a letter to another Chase 
official. 

In promoting the sale of Cuban "securities" in the United States, 
the Chase National Bank refrained from mentioning the despotic 

87 



nature of the Machado regime and the extremely precarious con- 
dition of Cuba's economy. / 

When the seething discontent of the Cuban masses threatened 
to end Alachado's dictatorship in the late twenties, U.S. State 
Department and War Department officials, who were in close 
friendly touch with the Chase National Bank, privately informed 
the Cuban tyrant that American armed intervention could be 
counted upon in the suppression of any revolt . . . 

In August 1933, when Machado could no longer afford to pay 
the salaries of his gangsters and army officers, and the advent of the 
Roosevelt Administration had made unfeasible American armed 
intervention, the dictator was overthrown by a furious uprising of 
the Cuban people. Machado fled the country with a price on his 
head. 

Following Machado's downfall, the Cuban bonds which the 
Chase National Bank had sold in the United States— at a profit to 
the bank of approximately one and a half million dollars— were de- 
clared illegal by the new Cuban government and were de- 
faulted . . . 

During 192 5- 192 9, Kuhn, Loeb & Company disposed of $90,000,- 
000 worth of Chilean bonds on the American market. A military 
junto was ruling Chile at the time, but the Wall Street bankers 
were reluctant to mention the words "military council" in their 
Chilean bond prospectus. "Is it not correct," they cabled their agent 
in Chile, "to refer to the council as government council which we 
prefer instead of military council?" The firm's prospectus com- 
promised by defining the Chilean government as a "governing 
council." By 1933, the Chilean bonds had been defaulted. 

In a report issued in 1934, the Senate Committee on Banking and 
Currency had this to say about the practises pursued during the 
previous decade by American banking concerns in floating foreign 
securities in the United States: 

The record of the activities of investment bankers in the flotation 
of foreign securities is one of the most scandalous chapters in the his- 
tory of American investment banking. The sale of these foreign issues 
was characterized by practises and abuses which were violative of the 
most elementary principles of business ethics. 

The predatory operations of American bankers during the 1920's 
were by no means limited to the flotation of foreign securities. Their 
88 



i 



eieatest booty came from transactions in American stocks and 
•onds. 

By unloading enormous amounts of wildly inflated or utterly 
/worthless stocks on the market, by inducing tens of thousands of 
Americans to invest their savings in reckless speculation, by engi- 
neering market fluctuations, manipulating stock pools, misrepresent- 
ing the assets of enterprises they were promoting and employing 
an endless variety of other shady devices, American financiers 
plundered the public wealth with a thoroughness and on a scale 
which made the depredations of the Robber Barons of the nine- 
teenth century seem petty in comparison. 

Typical, according to subsequent findings by the Senate Com- 
mittee on Banking and Currency, were the machinations of the 
National City Bank, the second largest commercial bank on the 
American continent. To circumvent legislation restricting the mar- 
ket activities of commercial banks and prohibiting them from 
trading in their own stock, the National City Bank operated through 
a securities affiliate called the National City Company. This affiliate 
company, which was actually nothing more than a giant brokerage 
firm with over 600 salesmen, engaged in the promotion of all 
manner of securities. 

Among other securities sold by the National City Company to 
the American pubUc were 1,950,000 shares of National City Bank 
stock at a total cost exceeding six hundred million dollars. In Sep- 
tember the market price of National City Bank stock was $579 a 
share; its book value at the time was I70 a share. 

Out of the fabulous profits accruing to the National City Bank, 
the officers of the bank and its securities affiliate, privately siphoned 
off immense bonuses for themselves through two special "Manage- 
ment Funds." Between 1921-1929 the total sum distributed among 
the bank's top executives from these Management Funds was 
$19,000,000. The personal share of Charles E. Mitchell, president of 
the National City Bank until 1929 and then chairman of the board 
of directors, amounted to $6,950,539.83. 

"The industrial situation of the United States is absolutely sound 
and our credit situation is in no sense critical," stated Mitchell in 
the fall of 1929. His income that year exceeded $4,000,000. More- 
over, as he later explained before a Senate committee, he avoided 
paying income tax in 1929 through the expedient device of selling 
the multiple stocks he owned to his wife . . . 

89 



Another well-known banker engaging in curious financial tra?^7 
actions was Albert H. Wiggin, chairman of the board of directOj/ J 
of the Chase National Bank. To simplify his own trading in Chase 
National Bank stock, and with the incidental objective of avoiding v 
payment on income and inheritance taxes, Wiggin formed three 
family corporations called Clingston Company, Inc., Shermar Cor- 
poration, and Murlyn. The latter two were named after the banker's 
daughters. "There was," said Wiggin later, "a little sentiment about 
it." During 192 8- 193 2 Wiggin's family corporations, whose value 
was not entirely sentimental, made a total profit of more than ten 
million dollars from trading in Chase National Bank stock. 

In 1929 there were more than 400 stock-market pools foisting 
highly speculative securities upon the American public and jug- 
gHng market prices so as to garner huge profits for the behind-the- 
scenes manipulators. A typical pool in Sinclair Consolidated Oil 
stock, organized by Harry F. Sinclair of Teapot Dome fame in col- 
lusion with the Chase Securities Corporation and other banking 
concerns, netted a profit of $12,200,109.41 for its operators, while 
causing- losses of tens of millions of dollars to small investors. 

Impressive newspaper advertisements, articles by "financial ex- 
perts," radio programs and every other form of promotional tech- 
nique and high-pressure salesmanship were employed to persuade 
the pubhc of the easy money to be made in "sound" stocks and to 
stimulate widespread speculation on the market. 

Exemplifying the methods of press agents and public relations 
counsel hired by stockbrokers, bankers and pool operators to boost 
the sale of certain securities were the activities of one David M. 
Lion, whose clients included such well-known concerns as Hayden, 
Stone & Company; Eastman, Dillon & Company; and Sinclair Oil 
Company. 

As part of his promotional efforts. Lion founded an organization 
impressively entitled the McMahon Institute of Financial Research. 
The "Institute" consisted wholly of one man, WilHam J. McMahon, 
an employee of Lion's who was featured on a weekly radio pro- 
gram as "the distinguished economist and President of the McMahon 
Institute of Financial Research." The "sound investments" recom- 
mended by McMahon to his radio audiences were, of course, 
stocks and bonds which Lion's clients wished to sell ... 

Another public relations counsel, A. Newton Plummer by name, 

4 



established an organization called the Institute of Economic Re- 
search, whose sole function was to place newspaper articles boost- 
ing securities for the brokerage firms which employed him. Accord- 
ing to evidence later submitted to the Senate Committee on Banking 
and Currency by Representative Fiorello LaGuardia of New York, 
the recipients of checks from Plummer included financial writers 
on the Wall Street Journal, the New York Times, and the New 
York Herald-Tribune . . . 

The Chicago brokerage firm of Halsey, Stuart & Company, 
which did a land-office business in the sale of stock in Samuel 
InsulFs utilities holding-companies, sponsored a weekly coast-to- 
coast radio program featuring the "Old Counselor," who offered 
homely advice to his listeners as to what stocks represented the 
"best investments" for their savings. 

The "Old Counselor" was a professor at Chicago University. 
"Of course, everything he delivered was written for him," Harold 
L. Stuart of the firm of Halsey, Stuart & Company subsequently 
related. "He was simply the deliverer of it . . . It was written in 
our office." 

"While the brokers and pool operators were hiring press agents 
to purchase newspaper writers and radio artists for the boosting 
of their wares," writes M. R. Werner in his book, Privileged Char- 
acters, "the larger banking houses were employing more dignified 
means of gaining influence for their issues of securities and pur- 
chasing the goodwill of important personages. J. P. Morgan & 
Company had what the newspapers dubbed 'preferred lists'." The 
individuals on these "preferred lists" were offered stocks at special 
rates far below their market value. The lists, states Werner, in- 
cluded 

the names of politicians, public officials, editors, lawyers, officers and 
directors of banks, trust companies, insurance companies, railroads and 
industrial corporations. There were rumors that King George of Eng- 
land, King Albert of Belgium, and Mussolini of Italy, were on the pre- 
ferred list of the London and Paris house of Morgan for shares of the 
United Corporation, and also that leading politicians in France were 
allotted shares in that issue at the special bargain price at which J. P. 
Morgan had purchased them. 

Among the influential personages whose names were on the pre- 
ferred lists of large banking houses and who were thus enabled 



to buy stocks at special discounts were such individuals as Secretary 
of the Navy Charles F. Adams; former Secretary of War Newton 
D. Baker; John J. Rascob, chairman of the Democratic National 
Committee, and E. I. du Pont de Nemours and General Motors 
executive; Senator William G. McAdoo, former Secretary of the 
Treasury; William H. Woodin, later Secretary of the Treasury; 
Myron C. Taylor, chairman of the board of U.S. Steel; Bernard 
M. Baruch, market-speculator and financier; and Edgar Rickard, 
financial adviser to Herbert Hoover.* 

Some concept of the prodigious sums mulcted from the American 
public and turned over as "bonuses" to persons on the preferred 
lists of leading banking concerns may be derived from these facts: 
when Standard Brands stock was put on the market, 722,600 shares 
released at $10 below the market price effected a bonus of $7,226,- 
000 to the favored recipients; 600,000 shares of United Corpora- 
tions stocks, distributed among persons on the preferred lists at 
$24.00 below the market price, provided the privileged few with a 
bonus of $14,400,000 . . . 

"Implicit in the bestowal of favors on this magnificent scale," 
stated the 1934 report of the Senate's banking investigation, "is a 
persuasive assumption of power and privilege. Implicit in the accep- 
tance is a recognition of that power and privilege. The 'preferred 
lists', with all their grave implications, cast a shadow over the 
entire financial scene." 

In America's 60 Families^ Ferdinand Lundberg writes: 

The ruinous speculative boom that collapsed in 1929 v^^as engineered, 
from the first to the last, by the wealthy families, and for their personal 
account. At every stage of the game it was the richest, the most re- 
spectable, the most publicized, and the most influential persons who 
were the prime movers in unloading inflated securities upon a deluded 
public. 

The unrestrained predatory operations of bankers and big busi- 
nessmen during the Boom Years cost the American people, when 
the market collapse finally came, a sum estimated between twenty- 
five and thirty billion dollars. In addition to bringing financial ruin 
to miUions of Americans, these operations helped to pave the way 



* After his term in office was over, Calvin Coolidge's name was placed on 
the preferred list of J. P. Morgan and Co. 

92 



4 



for the years of mass unemployment, destitution and ineffable suf- 
fering of the whole nation during the Great Depression. 

Despite the voluminous evidence gathered by congressional com- 
mittees which later investigated the machinations of American 
financiers during the Boom Years, none of the major culprits went 
to jail for these crimes committed at such a fearful cost to the 
country. 

American courts of law, however, were not completely inactive 
at the time. 

3. "Those anarchistic bastards" 

The case of Sacco and Vanzetti spanned the period of the 
Harding and Coohdge Administrations. It began with the arrest 
of the two Italian workers on May 5, 1920, and ended seven years, 
three months and eighteen days later, with the execution of the 
two men on August 23, 1927. 

It was, in the words of Professor Felix Frankfurter of Harvard 
University, "no ordinary case of robbery and murder" and involved 
"more issues . . . than the lives of two men." 

Before the case reached its tragic climax, it had become a prism 
through which were refracted all the dark and briUiant colors of 
the fiercely contending social elements in the postwar world. 

Nicola Sacco at the time of his arrest was a twenty-nine year old 
Italian immigrant, skilled shoe-worker and devoted family man with 
a passionate love of nature. He was described by Michael Kelley, 
the owner of the factory where Sacco worked, as a "man who is in 
his garden at 4 o'clock in the morning, and at the factory at 7 
o'clock, and in his garden again after supper until nine and ten 
at night, carrying water and raising vegetables beyond his own 
needs which he would bring to me to give to the poor." 

Bartolomeo Vanzetti was a thirty-two-year old Italian immigrant, 
migrant worker and fish peddler, a brilliant, self-educated, widely 
read student of Hterature, history and philosophy. He numbered 
among his favorite authors Kropotkin, Gorky, Marx, Renan, Dar- 
win, Zola, Hugo, Tolstoy. 

Both men were philosophic anarchists, and both had been active 
in strikes and other labor struggles. The two men were close 
friends. 

93 



Arrested at the frenzied peak of the Palmer raids, Vanzetti was 
accused of involvement in two crimes, and Sacco in one. Vanzetti 
was charged with participation in an unsuccessful attempt to steal 
the payroll of the L. Q. White Shoe Company in Bridgewater, 
Massachusetts; and he and Sacco were both charged with par- 
ticipating in a payroll robbery at the Slater and Norrill Shoe Factory 
at South Braintree, Massachusetts, during which the robbers had 
shot down and killed the paymaster Frederick Parmenter and the 
guard Alessandro BerardeUi.* 

From the outset, the Justice Department took a special interest 
in the case. Not only were the names of Sacco and Vanzetti on the 
list of "dangerous radicals" which had been compiled by J. Edgar 
Hoover's General IntelUgence Division of the Bureau of Investiga- 
tion. More important, both men had displayed a disturbing curiosity 
about the strange death of Andrea Salsedo, an ItaUan anarchist 
printer who, after being held illegally for eight weeks and tortured 
by Justice Department agents at the Park Row building in New 
York City, had plunged from a f ourteen-floor window on the night 
of May 3, 1920. 

The Justice Department's special concern with the fate of Sacco 
and Vanzetti was subsequently revealed by Fred J. Weygand, one 
of the Federal agents assigned to the case, who stated in a sworn 
affidavit: 

I am thoroughly convinced and always have been, and I believe that 
... it has been the opinion of such Boston agents of the Department of 
Justice as had any knowledge of the subject, that these men [Sacco 
and Vanzetti] have nothing whatsoever to do with the Braintree mur- 
ders, and that their conviction is the result of cooperation between the 
Boston agents of the Department of Justice and the District Attorney. 

"Facts have been disclosed, and not denied by the prosecution," 
wrote Felix Frankfurter in his treatise. The Case of Sacco and 
Vajjzetti, "to show that the case against Sacco and Vanzetti for 
murder was part of a collusive effort between the district attorney 
and agents of the Department of Justice to rid the country of these 
Italians because of their Red activities." 

On June 22, 1920, Vanzetti went on trial in the Superior Court 



* Despite the eagerness of the authorities to pin both crimes on the same 
"gang," Sacco had a foolproof alibi to prevent his being charged with the 
Bridgewater crime; he had been working at his job at the 3K shoe factory 
in Stoughton at the time the attempted hold-up occurred . . . 



94 



A 



at Plymouth, Massachusetts, on charges of assault with intent to 
rob and assault with intent to murder, in connection with the 
attempted hold-up at Bridgewater. Wizened, elderly Judge Web- 
ster Thayer of Worcester occupied the bench. Prosecuting the case 
was District Attorney Frederick G. Katzmann. 

Despite the testimony of more than twenty witnesses that the 
defendant was miles from Bridgewater at the time of the crime, 
Vanzetti was found guilty on both charges and was sentenced by 
Judge Thayer to a prison term of twelve to fifteen years. 

The evidence on the basis of which Vanzetti was convicted was 
evaluated by Felix Frankfurter in these words: 

The evidence of identification of Vanzetti in the Bridgewater case 
bordered on the frivolous, reaching its climax in the testimony of a 
little newsboy who, from behind the telephone pole to which he had 
run for refuge during the shooting, had caught a glimpse of the crim- 
inal and "knew by the way he ran he was a foreigner." Vanzetti 
was a foreigner, so of course it was Vanzetti! 

Judge Thayer's charge to the jury had included such comments 
as "This man, although he may not actually have committed the 
crime attributed to him, is nevertheless morally culpable, because he 
is the enemy of our existing institutions." The full text of the 
judge's highly biased charge became unavailable shortly after 
the trial, when fifteen pages of the court record mysteriously dis- 
appeared and were never found.* 

With the state prosecution now advantageously able to charge 
that one of the accused men was already a convicted felon, Sacco 
and Vanzetti were indicted on the charge of murdering Alessandro 
Berardelli and Frederick Parmenter during the South Braintree 
hold-up. 

On May 31, 192 1, with Judge Thayer again presiding and Dis- 
trict Attorney Katzmann prosecuting the case, Sacco and Vanzetti 
went on trial. 

The trial took place in the Norfolk County Superior Court at 
Dedham, Massachusetts, a residential suburb where well-to-do Bos- 
tonians made their homes. Like the rest of the country, Dedham 
was still gripped by the postwar anti-Red hysteria. The Dedham 

*In the summer of 1928, the ex-convict Frank Silva admitted in a sworn 
confession that he and several other gunmen had staged the Bridgewater hold- 
up. Silva's confession was published, along with corroborative evidence, in 
the October 31, 1928 issue of the magazine, Outlook and Independent. 

95 



courthouse was under heavy police guard, and even newsmen were 
frisked for concealed weapons on entering the courtroom. 

As G. Louis Joughin and Edmund M. Morgan observe in their 
exhaustive study of the case, The Legacy of Sacco and Vanzetti: 

The defendants were tried before a jury drawn from a community 
and a people whose social mind was unfit to deal with any issue in- 
volving its hysterical passions. As far as the jury was concerned, it was 
inevitable that the quality of its verdict should be tainted. A sick society 
makes sick decisions. 

During the early stages of the trial a friend of the jury foreman, 
Harry H. Ripley, told him it seemed unlikely that two men would 
rob a factory in broad daylight where one of them had worked and 
was well known. "Damn them," replied the jury foreman, "they 
ought to hang them anyway!" 

One of the state's key "eye-witnesses," who testified to having 
seen Sacco and Vanzetti driving from the scene of the crime in the 
bandits' car, was a man who went by the name of Carlos E. 
Goodridge. Actually, the name was an aUas. The witness "Good- 
ridge" was an ex-convict, swindler and convicted perjurer, who had 
served two prison terms for theft, been imphcated in an arson 
case with the intent to defraud an insurance company, and was, 
at the time he testified, a fugitive from a New York indictment for 
larceny. When the defense counsel sought to challenge the 
credibility of "Goodridge" by asking him whether he had a criminal 
record, District Attorney Katzmann objected to the question. The 
objection was promptly sustained by Judge Thayer. 

The court interpreter at the trial was a man by the name of 
Joseph Ross. He was on close friendly terms with District Attorney 
Katzmann and also with Judge Thayer, after whom he had named 
his son, Webster Thayer Ross. Periodically during the trial, Van- 
zetti protested that Ross's translations were dehberately favorable 
to the prosecution. Judge Thayer summarily brushed aside Van- 
zetti's protests. Shortly after the trial, Ross was sent to prison for 
the attempted bribery of a judge in another case. 

Among the Justice Department agents investigating Sacco and 
Vanzetti, and providing the prosecution with information about 
them, was an operative named Shaughnessy. Subsequently, Shaugh- 
nessy was arrested for highway robbery and sentenced to a twelve- 
year prison term. 

96 



One of the leading state officials connected with the case was 
Attorney General Arthur K. Reading, who represented the Com- 
monwealth at several hearings following the trial and kept in close 
touch with Governor Allan T. Fuller. In 1928, Reading was 
charged with having blackmailed, to the tune of $25,000, a concern 
he was supposed to be investigating. He was impeached by the 
Massachusetts lower house, resigned from office and was later 
disbarred. 

From the first day, the trial was permeated with bitter prejudice, 
Italian-Americans who appeared as defense witnesses were bullied 
by the prosecution and ridiculed for their unfamiliarity with the 
English language, as were Sacco and Vanzetti themselves. Objec- 
tions by the defense counsel to such tactics were invariably over- 
ruled by Judge Thayer. In the words of Felix Frankfurter: 

By systematic exploitation of the defendants' alien blood, their im- 
perfect knowledge of English, their unpopular social views and their 
opposition to the war, the district attorney invoked against them a riot 
of political passion and patriotic sentiment; and the trial judge connived 
at— one had alm.ost written, cooperated in— the process. 

Both inside and outside the courtroom. Judge Thayer made no 
attempt to conceal his hostility toward the defendants. He treated 
Sacco and Vanzetti with open contempt and badgered the defense 
law}^ers at every possible opportunity. 

George U. Crooker, an acquaintance of Judge Thayer at the Uni- 
versity Club in Boston, with whom the judge discussed the case on 
several occasions, later revealed: 

He conveyed to me by his words and manner the distinct impression 
that he was bound to convict these men because they were "Reds." 
I remember Judge Thayer in substance said to me that we must stand 
together and protect ourselves against anarchists and "Reds." 

On July 14, 192 1, after a flagrantly prejudicial charge by Judge 
Thayer to the jury, Sacco and Vanzetti were found guilty of 
murder. 

In the year that had elapsed since the arrest of Sacco and Van- 
zetti, a constantly growing section of the labor and progressive 
movement in the United States had rallied to the defense of the 
two Italian workers. With the Sacco- Vanzetti Defense Committee 
coordinating the campaign, talented left-wing journalists such as 

97 



Art Shields publicizing the facts of the case, and impassioned cham- 
pions of civil liberties hke Elizabeth Gurley Flynn, Ella Reeve 
Bloor, Carlo Tresca and Fred Biedenkapp addressing meetings in 
every state, a fervent crusade to free the two men had been organ- 
ized on a national scale. 

Now, with the verdict of guilty, the case of Sacco and Vanzetti 
became an international cause celebre. 

Throughout the following months there were mass protest meet- 
ings in every part of Europe. Tens of thousands of men and women 
demonstrated before American legations. Famous writers and scien- 
tists, statesmen and philosophers, jurists and labor leaders on every 
continent joined in the worldwide campaign to save the lives of 
Sacco and Vanzetti. 

"All over Europe, apparently," scoffed the Nenjo York Times, 
"the various congeners of the Bolsheviki are going to howl against a 
fictitious injustice" . . . 

Between July 192 1 and October 1924 the defense counsel for 
Sacco and Vanzetti submitted to Judge Thayer a series of motions 
for a new trial, based on the uncovering of fresh evidence, proof 
of collusion between the prosecuting attorney and state witnesses, 
and the admission of prosecution witnesses that their testimony had 
been falsified. The motions were accompanied by voluminous docu- 
mentation, and hundreds of pages of sworn testimony, indicating 
the innocence of Sacco and Vanzetti. 

On October i, 1924, Judge Thayer denied all of the motions. 

The following month Judge Thayer elatedly told Professor James 
P. Richardson of Dartmouth College, "Did you see what I did with 
those anarchistic bastards the other day! I guess that will hold 
them for a while . . . Let them go to the Supreme Court and see 
what they can get out of them!" 

The Supreme Judicial Court of Massachusetts held: "Exceptions 
overruled. Verdict to stand." 

On November 18, 1925, there came a sensational new develop- 
ment in the case. On that day, a signed note was delivered to Sacco 
from another prisoner in the Dedham jail, Celestino F. Madeiros, 
a young Portuguese criminal who was under death sentence for 
killing a cashier in a bank robbery. The note from Madeiros read: 
"I hear by confess to being in the south Braintree shoe company 
crime and Sacco and Vanzetti were not in said crime." 
98 



Shortly before his confession, Celestino Madeiros had appealed 
his conviction of murder in the first degree; and there was a possi- 
bility he might not be executed. Even so, Madeiros admitted his 
participation in the crime at South Braintree. "I seen Sacco's wife 
come here with the kids/' Madeiros explained, "and I felt sorry for 
the kids". . . 

Sacco turned Madeiros' confession over to William G. Thomp- 
son, the distinguished Boston attorney who had replaced the well- 
known labor lawyer, Fred Moore, as chief counsel for Sacco and 
Vanzetti in the late fall of 1924. Thompson immediately began a 
painstaking investigation of all the facts connected with Madeiros' 
confession. In the following weeks, Thompson unearthed copious 
evidence substantiating Madeiros' admission that he and five other 
members of the notorious Morelli gang of Providence, Rhode 
Island, had staged the hold-up and committed the murders at South 
Braintree. 

On May 26, 1926, Thompson submitted the results of his findings 
to Judge Thayer in a motion for a new trial. 

Five months later, in a fifty-five page decision, Judge Thayer 
denied the motion. Regarding Judge Thayer's lengthy opinion, Pro- 
fessor Frankfurter wrote: 

... I assert with deep regret but without the slightest fear of dis- 
proof, that certainly in modern times Judge Thayer's opinion stands 
unmatched, happily, for discrepancies between what the record dis- 
closes and the opinion conveys. His 25,000-word document cannot ac- 
curately be described otherwise than as a farrago of misquotations, 
misrepresentations, suppressions, and mutilations. 

The Massachusetts Supreme Judicial Court upheld Judge 
Thayer's ruling. 

On April 9, 1927, after seven years of imprisonment, Sacco and 
Vanzetti were brought before Judge Thayer for sentencing. 

"Have you anything to say," asked the clerk of court, "why 
sentence of death should not be passed upon you?" 

"Yes, sir," said Sacco. "I never knew, never heard, never read 
in history anything so cruel as this court." 

Vanzetti spoke. "What we have suffered during these seven 
years," he told Judge Thayer, "no human tongue can say, and yet 
you see me before you, not trembhng, not changing color, you 

99 



see me looking in your eyes straight; not blushing, not ashamed or 
in fear." 

Concluding, Vanzetti said; 

This is what I say: I would not wish to a dog or to a snake, to the 
most low or misfortunate creature of the earth— I would not wish to any 
of them what I have had to suffer for things that I am not guilty of. 
But my conviction is that I have suffered for things that I am guilty of. 
I am suffering because I was an Italian, and indeed I am an Italian; 1 
have suffered more for my family and for my beloved than for myself; 
but I am so convinced to be right that if you could execute me two 
times, if I could be reborn two other times, I would live again to do 
what I have done already. 

I have finished. Thank you. 

Judge Thayer sentenced Sacco and Vanzetti to die in the electric 
chair on July lo, 1927. 

As Thayer hurried from the courtroom, he met a grrup of 
newspaper reporters. "Well, boys, how did it go?" he asked. The 
newsmen remained silent. "Boys," said the judge, "you know I've 
often been good to you. Now see what you can do for me." 

During the next four and a half months, as the date set for the 
execution of the two men was postponed first to August 10 and then 
to August 22, protests against the sentence and pleas for executive 
clemency poured into the U.S. State Department and the Massa- 
chusetts state capital in a growing avalanche from every part of 
the world. In Paris, Madrid and Mexico City, London and Havana, 
Basle and Buenos Aires, and scores of other cities in every land, 
great mass demonstrations took place. There were protest strikes of 
workers in Denmark, AustraHa, South Africa, throughout Central 
and South America. Albert Einstein, Romain Rolland, Martin 
Andersen Nexo, George Bernard Shaw, John Galsworthy, and 
many other world-renowned figures added their voices, in im- 
passioned pleas for clemency, to those of the milHons . . . 

But as Robert Lincoln O'Brien, milHonaire owner of the Boston 
Herald and the Boston Traveller, later observed in a privately pub- 
lished document called My Personal Relations to the Sacco Van- 
zetti Case: "The momentum of the established order required the 
execution of Sacco and Vanzetti . . ." 

"If this were the South," a Boston newspaperman told the author 
and Daily Worker reporter, Michael Gold, early that August, "the 
100 



respectable mob would be storming the Charleston jail to lynch 
the two Italian workers." 

On August 3, Governor Fuller denied a plea for clemency from 
Vanzetti. Four days later a special Advisory Committee which had 
been appointed by the Governor to study the case reported it had 
found that the trial of Sacco and Vanzetti was "fairly conducted," 
that there was no subsequent evidence warranting a new trial, and 
that they were "convinced beyond reasonable doubt that Sacco and 
Vanzetti were guilty of the murder". . .* 

As the dreaded day of the execution drew near, an almost un- 
bearable tension gripped the nation. There were protest rallies from 
coast to coast and strikes in nearly every state. The Charlestown 
Penitentiary, where Sacco and Vanzetti were now confined, bristled 
with machine guns and was guarded day and night by more than 
700 heavily armed city and state poHce officers. Government agents 
were stationed at Federal buildings in principal cities with orders 
"to shoot first and ask questions afterwards" if trouble started. In 
Washington, D.C., army detachments were mobilized in readiness 
"to defend the Capitol." 

Shortly before the date set for his electrocution, Vanzetti told 
Philip Duffield Strong of the American Newspaper Alhance, "If it 
had not been for this thing I might have lived out my life among 
scorning men. I might have died unmarked, unknown, a failure. 
This is our career and our triumph. Never in our full life can we 
hope to do such work for tolerance, for justice, for man's under- 
standing of man, as now we do by an accident. 

"Our words— our lives— our pains— nothing! The taking of our 
lives— lives of a good shoemaker and a poor fish peddler— all! 

* The Advisory Committee was composed of A. Lawrence Lowell, Pres- 
ident of Harvard University; Samuel W. Stratton, President of the Massachu- 
setts Institute of Technology; and Robert Grant, a retired probate judge. 
The proceedings of the Committee, which was commonly known as the 
Lowell Committee, were dominated throughout by the wealthy, autocratic 
Harvard President. "He was," write Joughin and Morgan in The Legacy of 
Sacco and Vanzetti "widely regarded as a perfect specimen of the New Eng- 
land snob, dominated by the sense of noblesse oblige . . ." One of his "private 
prejudices," add these authors, "a dislike of Jews— is in the process of being 
supported as the passage of years releases collections of private documents." 
Joughin and Morgan imply that this particular prejudice may have influenced 
Lowell in his consideration of Professor Frankfurter's findings. In any case, 
Lowell, like other members of his set, felt nothing but bitter hostility toward 
Sacco and Vanzetti, and saw to it that the proceedings of the Committee were 
prejudiced against them from beginning to end. 

lOI 



"The moment that you think of belongs to us— that last agony is 
our triumph!" 

On August 23, 1927, the case which had begun at Plymouth, 
Massachusetts, where the Pilgrims had established the first per- 
manent settlement of Europeans in New England, ended in the 
Charlestown Penitentiary near Bunker Hill, where the first major 
battle of the American Revolution had been fought. A few minutes 
after midnight, the lights of the prison flickered and grew dim as 
Nicola Sacco and Bartolomeo Vanzetti were killed in the electric 
chair. 

When word was flashed to the country that Sacco and Vanzetti 
were dead, men and women who had congregated in every city 
in the desperate hope of a last-minute reprieve wept agonizingly in 
the streets. This is how the New York World described the scene in 
Union Square, where a great crowd had assembled: 

The crowd responded with a giant sob. Women fainted in fifteen 
or twenty places. Others, too overcome, dropped to the curbs and 
buried their heads in their hands. Men leaned on one another's shoulders 
and wept. There was a sudden movement in the street to the east of 
Union Square. Men began to run around aimlessly, tearing at their 
clothes and ripping their straw hats, and women ripped their dresses 
in anguish. 

In France, a few hours after the execution, the famous novelist, 
Romain Rolland wrote: "I am not an American; but I love America. 
And I accuse of high treason against America the men who have 
soiled her with this judicial crime before the eyes of the world." 

On August 27, 1927, four days later, the Boston Herald edi- 
torialized: 

Let us get back to business and the ordinary concerns of life, in the 
confident belief that the agencies of law have performed their duties 
with fairness as well as justice . . . Now let us go forward to the re- 
sponsibilities of the common day with a renewed determination to main- 
tain our present form of government, and our existing social order. 

The Herald editorial was headed: "Back to Normalcy." 



102 



Chapter vii 

END OF AN ERA 



I. Debacle 

On August 2, 1927, President Calvin Coolidge released to the nation 
his famous terse pronouncement: "I do not choose to run for 
President in 1928." 

To Coohdge's consternation, the Republican Party took him at 
his word.* The following June, in the oppressive heat of Kansas 
City, the listless perspiring delegates to the Republican National 
Convention nominated Herbert Clark Hoover on the first ballot 
as their Presidential candidate. The former Secretary of Commerce 
was elected on November 6, 1928. 

In the opinion of the iconoclastic author, H. L. Mencken, Hoover 
was simply a "fat CooHdge." WiUiam Allen White summed up 
Hoover as an "adding machine." Ferdinand Lundberg portrayed 
him as an "erstwhile vendor of shady mining stocks who before 
the war had been reprimanded by an English court for his role in a 
promotional swindle." 

While there was undeniable truth in each of these characteriza- 



* Describing President Coolidge's reaction when the Republican National 
Convention in 1928 failed to make any attempt to draft him for another term, 
Irwin H. ("Ike") Hoover, chief usher at the White House, wrote in his 
memoirs: 

"There was dismay at the White House. . . . The President was not long 
in vacating the Executive Office. He came to the White House visibly dis- 
tressed. He was a changed man . . . 

"He threw himself across the bed continuing on indefinitely to lay there. 
He took no lunch and only that the physician came out a couple of times 
to inquire, at the suggestion of the President, for word of the Convention 
doings, was it known, the drift of his thoughts. In this room he continued 
on to remain through the rest of the day and night, not emerging therefrom 
until nearly eleven o'clock the next (Monday) morning. Even then it was a 
different President we knew. . . . That night he left for Wisconsin." 

103 



tions, none of them did full justice to the Thirtieth President of the 
United States. 

It was not merely in terms of physical girth that Hoover was a 
bigger man than his taciturn predecessor. Whereas Coolidge had 
hewed to the precepts of Wall Street with the respectful obedience 
of a grateful employee, Hoover was a millionaire in his own right, 
moved on an easy, gracious footing with renowned financiers and 
was, in fact, himself accepted as a leading figure in big business 
circles. 

As the Wall Street Journal had observed after Hoover's nomina- 
tion as the Republican Party candidate: 

Never before, here or anywhere else, has a Government been so com- 
pletely fused with business. There can be no doubt '■jhat Hoover as 
President would be a dynamic business President. He would be the first 
business, as distinguished from political, president, the country has ever 
had... 

Hoover would serve the public by serving business . . . 

Such a statesman, for all his preoccupation with business statistics, 
precise commercial graphs and stock market evaluations, was not 
to be dismissed as a mere "adding machine," a mechanism wholly 
lacking in the knack of self-enrichment. 

Nor were Hoover's promotional talents by any means limited to 
the field of dubious mining ventures. No President before him had 
been so gifted in the art of self-promotion. Despite his never having 
shone in the engineering profession and the fact he had made his 
fortune through organizing stock companies to exploit gold, timber, 
ore and other concessions in Czarist Russia, Australia, China and 
other backward regions, Hoover had sold himself to the American 
public as "The Great Engineer"; despite his systematic use of food 
as a political weapon to sustain savage White Guard regimes and 
suppress the democratic upsurgence in postwar Europe, Hoover 
was widely known in the United States as "The Great Humani- 
tarian"; and despite his complete preoccupation with business mat- 
ters and the accumulation of material wealth, there were millions of 
Americans who had been taught to think of Hoover as "The 
Great Idealist." 

As Drew Pearson and Robert S. Allen wrote in their book, 
Washington Merry -Go-Round, "Every possible trick, every new 
device, known or capable of being invented by skilled publicity 
104 



agents had been invoked to make Hoover the Superman, the Great 
Executive ..." * 

With Hoover in the White House, the stock market soared to 
fabulous new heights and scores of new investment houses were 
incorporated. In January 1929, over a billion dollars worth of new 
securities were floated. In every major city throughout the land, 
brokerage offices were jammed with eager buyers, their eyes hyp- 
notically glued to lighted screens across which moved a rapid 
procession of symbols and numbers recording the ever-mounting 
prices on the New York Stock Exchange. 

"We in America," opined Herbert Hoover, "are nearer to the 
final triumph over poverty than ever before in the history of any 
land . . . the outlook for the world today is for the greatest era 
of commercial expansion in history." The United States, the Presi- 
dent proclaimed in his inaugural address, had "reached a higher 
degree of comfort than ever existed before in the history of the 
world ... In no nation are the fruits of accomplishment more 
secure." 

Eight months later, America was overwhelmed by the most cata- 
strophic economic crisis in all history. 



* For twenty years prior to his appointment as U. S. Food Administrator 
in 19 1 7, Herbert Hoover had lived abroad, rarely visiting the United States. 

In the spring of 1897, at the age of twenty -two, Herbert Hoover had left 
San Francisco to seek his fortune in the goldfields of West Australia. As a 
representative of British gold mine owners in Australia, the youthful Hoover 
soon won a reputation, as Rose Wilder Lane writes in The Making of Herbert 
Hoover, "as a hard and ruthless man . . . whose ruthlessness was known from 
Perth to the farthest reaches of the back country." 

During the early 1900's, acting as an agent for various British mining con- 
cerns and financial syndicates, Hoover became widely known for his ability 
to organize and promote stock companies to exploit the resources of backward 
colonial areas. By 1910 Hoover himself had large holdings in a number of 
these stock enterprises, including eleven oil companies in Czarist Russia. 
Around this time. Hoover became associated with the British multimillionaire 
Leslie Urquart in three companies which had been set up to exploit timber 
and mineral concessions in the Urals and Siberia; and, soon afterwards, in the 
Russo-Asiatic Corporation, which was floated by Urquart and obtained con- 
cessions from the Czarist regime to properties in Russia whose total value 
was estimated at $1,000,000,000. 

Late in 19 14, with the backing of the Belgian financier, Emile Francqui, 
with whom he had been associated in the Chinese Engineering and Mining 
Company, Hoover became Chairman of the Commission for Relief in Bel- 
gium. This post was used by Hoover as a stepping-stone to the far more 
important position of Director of the U. S. Food Administration. 

105 



In the last week of October 1929, the bottom dropped out of the 
stock market. 

During the preceding weeks, prices on the Exchange had fol- 
lowed a continuous downward trend without causing much appre- 
hension: the Big Bull market had sagged before, only to surge back 
to spectacular new peaks and bigger profits for the pool operators. 
By the middle of the month, however, alarm spread as the decline 
in prices rapidly picked up momentum. 

On October 23, with ticker tapes in brokerage offices running 
almost two hours behind market transactions, more than 6,000,000 
shares exchanged hands; and the Neuo York Times averages for 
fifty leading industrial and railroad stocks recorded a loss of 18.24 
points. 

Then on Thursday, October 24, the deluge really got underway. 

That day the volume of sales was nearly 13,000,000 shares. 
Within the first hour of trading, as prices plunged downward at a 
fantastic rate, thousands of speculators were wiped out in an ava- 
lanche of selling. There was pandemonium in the great hall of the 
New York Stock Exchange; shouting, madly gesticulating brokers 
rushed to and fro, their faces contorted with fear and dismay. 
Brokerage firms in every major city were jammed with disheveled 
clients, frantically trying to dispose of their holdings before they 
were completely ruined . . . 

Shortly after noon, Charles E. Mitchell of the National City Bank, 
Albert H. Wiggin of the Chase National Bank, and two other lead- 
ing bankers hurried into the J. P. Morgan & Company building and 
closeted themselves in the ofiice of Thomas W. Lamont. Within a 
few minutes they had agreed to put up $20,000,000 apiece, to- 
gether with one other financier, to form a buying pool of two 
hundred and forty million dollars to slow the cataract of sales and 
bring a semblance of order to the chaos at the Exchange. 

From the White House, President Hoover, who had been in 
constant touch with Thomas Lamont by long distance telephone, 
proclaimed to the nation: "The fundamental business of our coun- 
try, that is, production and distribution of commodities, is on a 
sound and prosperous basis." 

But neither multi-milHon dollar bankers' pools nor sanguine Pres- 
idential proclamations could halt the debacle. The catastrophic 
collapse in market prices continued unabated. On October 29, with 
more hundreds of millions of dollars of "values" abruptly vanishing 
106 



into thin air, the volume of sales on the Exchange reached the 
phenomenal all-time high of 16,410,030 shares. 

And as the whole crazy cardhouse structure of credit, specula- 
tion, paper values and stock market pools crumbled in a thousand 
pieces, wild rumors multiplied on every side: All the banks have 
collapsed/ The exchanges are being shut doivn by Government 
decree! Twenty bajikers have committed suicide! Angry mobs are 
marching on Wall Street! 

The Great Panic was on. 

"The present week," declared the November 2, 1929, issue of the 
Co772?nercial and Finajicial Chro7iicle, "has witnessed the greatest 
stock market catastrophe of the ages." 

But what was happening was far more than a gigantic stock 
market catastrophe. It was a world catastrophe. The era of spurious 
postwar stability and prosperity had ended. An economic crisis of 
unprecedented severity had begun which would swiftly engulf the 
globe . . . 

On December 18, 1930, Benito Mussolini summed up the effects 
of the World Crisis on Europe: 

The situation in Italy was satisfactory until the fall of 1929, when the 
American market crash exploded suddenly like a bomb. For us poor 
European provincials it was a great surprise . . . Suddenly the beautiful 
scene collapsed and we had a series of bad days. Stocks lost thirty, 
forty and fifty per cent of their value. The crisis grew deeper . . . From 
that day we were again pushed into the high seas, and from that day 
navigation has become extremely difficult for us. 

Unemployment, hunger, mass demoralization and destitution 
went hand in hand with the economic crash which swept like a 
hurricane across America, Europe and Asia. Great financial and 
industrial corporations collapsed in ruins; millions of small investors 
were wiped out; workers were turned out into the streets. While 
the masses starved, fruit was dumped into the sea; wheat rotted in 
the crammed silos; coffee was used for stoking furnaces; cattle were 
slaughtered and buried in ditches. The nations could no longer 
pay for the plethora of commodities they had produced. An entire 
system of economic distribution had broken down. 

Early in 1932, former U.S. Secretary of the Treasury Andrew 
Mellon, who had been appointed American Ambassador to England 
by President Herbert Hoover, told a Pilgrim's dinner in London: "1 

107 



do not believe there is any quick or spectacular remedy for the ills 
from which the world is suffering, nor do I share the belief that 
there is anything fundamentally wrong with the social system." 

The famous American steel magnate, Charles M. Schwab, ex- 
pressed a sentiment more widely prevalent in business circles. "I am 
afraid," he said. "Every man is afraid." 

2. Days of Reckoning 

During the second year of the Great Depression, the famous 
American author, Theodore Dreiser wrote in his book. Tragic 
America: 

I had heard much and studied much of present-day living condi- 
tions, but I also wanted to see for myself certain definite examples of 
life under our present economic regime ... I visited the western Penn- 
sylvania miners' zone . . . and there I found unbelievable misery. Miners 
receiving wages of but $14 to $24 for two weeks' work . . . Their food 
was of the poorest; I studied their menus. One of their main foods at 
that time was dandelion weeds. 

I chose to visit Passaic, New Jersey, because I believe it to be a fairly 
representative small industrial city ... A local minister told me of 
instances of eight and ten persons living in one or two rooms . . . The 
minister also told me of many cases of unemployment for over a year; 
in particular he mentioned one woman who, trying to earn a living for 
her family (the husband out of work) by making artificial flowers at 
the rate of 15 cents for 24 flowers, could not possibly earn more than 
90 cents a day . . . 

... on January 3, 193 1, James Golden, aged 50, an unemployed 
tin-smith, went into a bakery at 247 Monroe Street, and asked for 
something to eat. As Rosenberg, the proprietor, reached for a loaf of 
bread. Golden fell to the floor and died . . . Then there was John Pitak, 
43, of 183 High Avenue, who committed suicide, leaving a wife and 
three children, because he could not find work . . . 

Describing the plight of Pennsylvania miners in 193 1 who had 
been evicted from their company-owned houses after losing a des- 
perate, futile strike for living wages, the writer Jonathan Norton 
Leonard related: 

Reporters . . . found thousands of them huddled on the mountainsides, 
crowded three or four families together in one-room shacks, living on 
dandelions and wild weed-roots. Half of them were sick, but no local 
doctor would care for the evicted strikers. All of them were hungry 
and many were dying of those providential diseases which enable wel- 
fare authorities to claim that no one has starved. 

108 



Louise V. Armstrong, in her book, We Too Are the Feople, re- 
corded this scene in downtown Chicago: 

We saw a crowd of some fifty men fighting over a barrel of garbage 
which had been set outside the back door of a restaurant. American 
citizens fighting for scraps of food Hke animals! 

By 1932, hungry destitute masses of Americans were spread in a 
great dark tide across the land. Tens of thousands of ragged home- 
less children roamed the countryside. The number of unemployed 
was estimated at between thirteen and seventeen million. 

American cities swarmed with beggars and hordes of gaunt hol- 
low-eyed men and women who huddled at night in doorways, 
alleys and cellars, and ransacked garbage heaps for maggoty scraps 
of food. Everywhere, there were lengthening bread Unes, silent 
crowds gathered in front of employment agencies and before closed 
factory gates, haggard men and women standing beside pitiful ap- 
plestands, and countless workers walking from house to house, 
from shop to shop, in an endless desperate search for jobs, of any 
sort, at any wage, to enable them to feed their starving families. 

And in every state, like ugly festering sores across the body of 
the land, there appeared squahd settlements of makeshift shacks 
and hovels, built of tar paper, packing boxes, tin and scrap iron, 
in which thousands of dispossessed and poverty-stricken American 
famiHes now made their homes. These man-dump heaps were 
known to the nation as "Hoovervilles." 

President Hoover petulantly regarded the Depression as a per- 
sonal challenge to his reputation as the Great Executive. Failing in 
an initial attempt to persuade the American people that the crisis 
was simply a fleeting mirage and that "prosperity was just around 
the corner," Hoover issued a series of pontifical declarations be- 
littling the disaster that gripped the nation. 

On December 14, 1929, Hoover announced it was apparent 
from statistics he had studied on the volume of shopping that 
American business was "back to normal." In March 1930 he de- 
clared that "the worst effect of the crash on unemployment will 
have been passed during the next sixty days." The sixty days having 
elapsed, he told the nation on May 2: 

We have been passing through one of those great economic storms 
which periodically bring suffering and hardship to our people. I am 

109 



convinced that we have passed the worst and with continued unity of 
effort we shall rapidly recover. 

That July the well-known attorney, Amos Pinchot, and a group 
of businessmen visited the White House to urge the President to 
take immediate emergency measures to relieve the rapidly growing 
unemployment. Hoover listened to their plea with marked im- 
patience. "Gentlemen," he then truculently told the delegation, "you 
are six weeks late. The crisis is over." 

Throughout the balance of his term in office, while granting 
huge Government loans to reHeve the difficulties of banks, rail- 
roads and large industrial concerns. President Hoover obdurately 
balked at the idea of Federal relief for the mounting millions of 
homeless, jobless and famished Americans. Federal rehef, asserted 
Hoover, would be nothing more than "dole" and would harm "the 
"character of Americans" by undermining their "rugged individual- 
ism. 

Senator Robert M. LaFollette, Jr., protested, "The rehef of 
human suffering in this emergency should take precedence over the 
consideration of the interests of wealthy income-tax payers." 

"Demagogy!" scoffed Hoover in reply . . . 

While the people's anguish grew, President Hoover compiled 
elaborate statistics and charts on the economic state of affairs, 
formed commissions to "study" unemployment and industrial pro- 
duction, and periodically called conferences of mayors, governors 
and business executives to discuss diverse aspects of the crisis. 

A typical White House conference on unemployment, attended 
by a group of governors, was described shorty afterwards in a 
private conversation by Governor FrankHn D. Roosevelt of New 
York in these words: 

We were to gather for dinner, and Mrs. Roosevelt went with me. 
We stood rigid around an immense table waiting for the President to 
come in. He was late, and we remained standing, silently, like stone 
images. Nothing at Buckingham Palace could compare with this formal- 
ity. Mrs. Pinchot came around to my side of the table and said every- 
body would understand if I sat down at my place. A gold-braided aide 
whispered to her to please return to her place and stand until the Presi- 
dent entered. When the President sat down the conversation was con- 
ducted in whispers. 

After dinner the men were asked to go to the Red Room and the 
ladies to the Blue Room. The President and his wife softly padded in 
and greeted our party individually with a fleeting touch of the hand 

no 



and whispers. We were then herded into the music room like prize 
cattle and sat on rickety chairs which undertakers use when they run 
out of seats. Beyond a wide expanse of polished floor nervous fiddlers 
played, with eyes cocked apprehensively on the aides with the epaulettes. 
As we were leaving, Mrs. Roosevelt recognized one of the musicians 
and spoke to me above a whisper for the first time since we entered 
the White House. From out of nowhere another aide with shivering 
epaulettes was at her elbow. He whispered to her that if she wished 
to greet the musician, he would have to arrange it near the door-way 
as we walked out. The musician greeted iMrs. Roosevelt in fear and 
trembling. We left in a daze. I cannot remember what was discussed 
about unemployment. 

Abandoned by their Government, living in deepening poverty, 
misery and despair, more and more Americans began taking matters 
into their own hands. 

One state capital after another was beseiged by hunger marchers. 
In city after city, angry men and women banded together to 
prevent evictions of their impoverished friends and neighbors. 
Auctioneers conducting forced sales of farms repeatedly found 
themselves surrounded by grim-faced farmers who kept outsiders 
from bidding, bought the property under sale for a few dollars and 
then promptly returned it to its original owners. Throughout the 
country, unemployed councils formed by the Trade Union Unity 
League, organized demonstrations demanding food, clothing and 
work or adequate relief. 

Furious measures were employed by the Federal, state and local 
authorities to suppress the mounting rebellion of the people. Dem- 
onstrations of famished and jobless Americans were bloodily dis- 
persed by armed troops and police. Describing typical police tactics 
used to break up an unemployment demonstration in New York 
City, a Nenjo York World reporter told of: 

. , . women struck in the face with blackjacks, boys beaten by gangs 
of seven and eight policemen, and an old man backed into a doorway 
and knocked down time after time, only to be dragged to his feet 
and struck with fist and club. 

. . . detectives, some wearing reporters' cards in hat bands, many 
wearing no badges, running wildly through the crowd, screaming as 
they beat those who looked like Comimunists. 

. . . men with blood streaming down their faces dragged into the tem- 
porary police headquarters and flung down to await the patrol wagons 
to cart them away. 

But neither the savage violence of law-enforcement agencies, nor 
the horrified outcry that "Communist agents" were agitating the 

III 



unemployed, nor congressmen calling for the immediate imprison- 
ment or deportation of all "Reds" * could dispel the gathering 
storm of anger and revolt. 
Across the land, the slogan spread: Don^t Starve— Fight! 

3. March on Washington 

During the second week of May, 1932, two hundred unemployed 
World War veterans in Portland, Oregon, hastily packed together 
a few of their meager belongings and set out on a 3,000-mile trans- 
continental journey to Washington, D.C. "to petition Congress for 
the immediate payment of veterans bonuses." Their departure 
heralded the beginning of one of the most extraordinary, spon- 
taneous popular demonstrations in American history: the Veterans 
March on Washington . . . 

After two and a half grim years of joblessness and destitution, 
the smoldering resentment of American ex-servicemen had flared 
into a nationwide demand that Congress enact legislation providing 
for immediate payment of funds still due on veterans' bonus cer- 
tificates.! 

With the scheduled adjournment of Congress only a few weeks 
away, the veterans began converging on Washington to present 
their "petition on boots." 

The veterans came singly, in small bands and caravans of hun- 
dreds, many bringing their wives and children with them. They 
halted trains and compelled conductors to allow them to travel as 
non-paying passengers. They hitchhiked, jammed old jalopies, rode 
freight cars. One small group trekked down from Alaska and across 
the continent, a distance of more than 4,000 miles. Three veterans 
sailed as stowaways aboard a ship from Hawaii. 

Throughout the hot summer days and nights, the ex-servicemen 



*The most active congressional committee crusading against "Reds" in 
America was, at the time, the House Special Committee to Investigate Com- 
munist Propaganda. The committee was headed by Representative Hamilton 
Fish of New York. 

t Officially titled the Adjusted Ser\nce Certificate, the Bonus was an addi- 
tional payment to veterans of one dollar for every day served in the Armed 
Forces at home and a dollar twenty-five cents for every day spent overseas. 
The Bonus award had been passed by Congress in 1923 for payment in 1945. 
In 1930 veterans were permitted to borrow one-half their bonus money at 
4'/4 percent interest. The Bonus iMarchers sought to obtain the right to borrow 
the remainder of the money immediately. 

1 12 



streamed endlessly along the highways of the land, across deserts, 
plains and mountains, through villages and towns, toward the 
nation's capital. Scarcely a day passed without the press announcing 
the departure of new detachments: 900 from Chicago; 600 from 
New Orleans; 1,000 from Ohio; 700 from Philadelphia and Cam- 
den; 200 elected as delegates by the patients in the National Soldiers 
Home at Johnson City, Tennessee . . . 

State and federal authorities, and railroad executives, sought des- 
perately to halt the Bonus Marchers and to force them to return 
home. Police officials forbade them to enter certain towns. Sec- 
retary of War Patrick J. Hurley announced that veterans reaching 
Washington would be given no sleeping bags by the War Depart- 
ment. The Washington Chief of Police, General Pelham Glassford, 
dispatched frantic wires urging governors to turn the veterans back. 
A vice-president of the Baltimore & Ohio Railroad proclaimed his 
determination "to protect the interests of the railroad in the im- 
pending war". . . 

And still the veterans came. 

And, in the communities through which they passed, tens of 
thousands of sympathetic Americans greeted them with great pub- 
lic demonstrations, provided them with clothing, food, lodging and 
gave other assistance to help them on their way . . .* 

By June, more than 20,000 Bonus Marchers had poured into 
Washington. 

The ex-servicemen, who thirteen years before had been hailed as 
national heroes on their return from Europe's battlefields, were not 
now treated as such by their Government. Congressmen visited by 
veterans' delegations smilingly agreed to support the bonus legisla- 
tion—and did nothing. President Herbert Hoover coldly refused 



* In Cheyenne, Wyoming, a group of veterans arriving at midnight was 
welcomed by more than 5,000 townspeople, who staged a torchhght parade 
and feted the travelers at a great banquet. In Cleveland, 50,000 citizens con- 
gregated to support the demand of Bonus Marchers that they be given rail- 
road cars by local authorities. In AicKeesport, Pennsylvania, after frustrating 
the mayor's efforts to prevent veterans from passing through the town, the 
townspeople halted a train for the ex-servicemen. Following a futile attempt 
by police and troops to prevent Bonus Marchers from boarding trains in East 
St. Louis, Illinois, the local sheriff reported: "When it looked like trouble, 
it wasn't the veterans I was concerned about, but the sympathizers. There was 
a crowd of several thousand along the B & O tracks, and they were all yell- 
ing and cheering the former soldiers ..." 

in 



to grant an audience to any representatives of the Bonus Marchers. 
A heavy miUtary guard patrolled the White House. 

Some of the Bonus Expeditionary Force, as the veterans now 
called themselves, established makeshift hving quarters in empty 
lots and vacant government buildings in Washington. The great 
majority, however were directed to an encampment on the Ana- 
costia Flats, a dust-ridden, low-lying stretch of land bordering the 
Potomac River across from the nation's capital. Here, unprotected 
from the broiling sun and from tepid rains which converted the 
Flats into a muddy morass, there mushroomed a jungle-Hke city of 
tents, dugouts, crude shacks, and caves in the river's bluff. 

Lacking the most elementary sanitation facilities, and with hope- 
lessly inadequate food supphes provided by the Washington author- 
ities, the ex-servicemen and their families were soon beset by wide- 
spread sickness. Within a short time, several of the veterans' 
children had died from intestinal disorders and malnutrition . . . 

Every possible device was employed to discredit the Bonus 
Marchers, disrupt their ranks and force them to leave Washington. 
Newspapers reported that the Bonus Army was infested with "com- 
munist agents" seeking to set up "soviets in the nation's capital." 
Police Chief Glassford threatened to invoke an evacuation order; 
and when the veterans refused to move until Congress granted their 
demands, Glassford, who was in charge of all food provisions for 
the veterans, announced a "food shortage" and drastically reduced 
the veterans' already skimpy rations. 

The Bonus Expeditionary Force, moreover, was riddled with 
Federal agents, pohce spies, paid informers and agents-provocateurs. 
W. W. Waters, the dapper, smartly uniformed autocratic "com- 
mander" of the BEF, was himself in constant communication with 
General Glassford and was actually getting orders from the Police 
Chief. According to Glassford's own subsequent account, the 
"Military Police Corps" which Waters had organized to "keep 
order" among the veterans "worked intimately with the Metro- 
politan PoHce under my command." * 

* Waters' political inclinations and personal ambitions became clear some 
time later when, after forming an organization called the Khaki Shirts, he 
declared: "Inevitably such an organization brings up comparison with the 
Fascisti of Italy and the Nazis of Germany. For five years Hitler was lam- 
pooned and derided. But today he controls Germany. Mussolini before the 
war was a tramp printer, driven from Italy because of his political views. 
But today he is a world figure." 

114 



"If we find any Red agitators in the group," Waters informed 
Washington poHce, "we'll take care of them." 

New arrivals at Anacostia Flats were warned by "Commander" 
Waters against the "red activities" of the Workers Ex-Servicemen's 
League, a left-wing veterans group which had played a major role 
in mobilizing the Bonus March, and were made to take an oath 
against Communism. A number of the League's leaders were kid- 
napped, brutally beaten and ordered out of Washington. The bat- 
tered bodies of two veterans suspected of being Communists were 
found floating in the Potomac. 

But for all the efforts to terrorize them and split their ranks, the 
vast majority of the veterans stubbornly remained where they had 
settled and continued to agitate for payment of their bonuses . . . 

On the morning of July 17, after a hasty final session. Congress 
adjourned without having taken any action on the bill. By nightfall 
most of the Representatives and Senators had scurried out of Wash- 
ington. 

The careful preparations made by Government authorities for 
imminent developments were afterwards disclosed by General Pel- 
ham Glassford: 

. . . troops were in training for just such a climax as early as June. . . . 
both officers and men at Army and Marine posts adjacent to Washing- 
ton were being held in readiness without leave for a long period . . , 
these troops were receiving special training in the use of tear gas and 
in maneuvers incident to dispersing crowds. 

Matters came to a head on July 28, a date subsequently named 
"Bloody Thursday." That morning a large poHce contingent at- 
tempted to evict several hundred veterans from two abandoned 
Government buildings at Third Street and Pennsylvania Avenue. 
When the veterans refused to leave, the police charged the build- 
ings, hurhng tear gas bombs at their occupants. The veterans fought 
back. Enraged, the poHce drew their guns and fired. A number of 
veterans dropped, two of them mortally wounded . . . 

President Hoover promptly ordered General Douglas A. Mac- 
Arthur, Army Chief of Staff, to assume command of the evacuation 
of the Bonus Expeditionary Force from Washington and to employ 
the army "to put an end to this rioting and defiance of civil 
authority." 

Around four o'clock in the afternoon, the troops arrived. De- 
scribing ensuing events, the New York Times reported: 

"5 



Down Pennsylvania Avenue . . . the regulars came, the cavalry lead- 
ing the way, and after them the tanks, the machinegunners and the 
infantry . . . 

There was a wait for maybe half an hour while the Army officers 
talked it over with the police and the bonus marchers shouted defiance. 
They wanted action and they got it. 

Twenty steel-helmeted soldiers led the way with revolvers in their 
hands until about 200 were in position in front of the "bonus fort." 
Then the mounted men joined. They rode downstreet clearing the path 
with their sabres, striking those within reach with the flat of their 
blades. 

The action was precise, well-executed from a military standpoint, but 
not pretty to the thoughtful in the crowd. There were those who re- 
sisted the troops, fought back, cursed and kicked at the horses . . . 

Amidst scenes reminiscent of the mopping-up of a town in the World 
War, Federal troops . . . drove the army of bonus seekers from the 
shanty village near Pennsylvania Avenue. 

The troops then set fire to the veterans' shacks. 

Every detail of the operation had been planned with methodical 
care by General MacArthur, and fire engines were on hand to 
prevent the flames from spreading . . . 

Wearing gas masks, and lobbing tear gas bombs, infantrymen 
pursued the fleeing veterans, who sought desperately to shield their 
wives and children. Scores of calvalrymen, swinging sabres, joined 
in the chase. Civilian onlookers were gassed, bludgeoned to the 
ground, and trampled on by horses . . . 

"The mob was a bad-looking one," General MacArthur told 
newsmen regarding the veterans. "It was one marked by signs of 
revolution. The gentleness and consideration with which they had 
been treated they had mistaken for weakness." 

That night MacArthur's troops stormed the Anacostia encamp- 
ment. With giant floodlights blazing across the mud flats, the steel- 
helmeted soldiers advanced, flinging tear gas bombs, setting fire to 
the ramshackle huts and tents, and driving before them the veterans 
and their families. By midnight, the Washington sky glowed as 
though a great forest were ablaze. Many veterans and their wives 
and childern were overcome by gas fumes. One infant died. 

Dawn found the Government undisputed master of the field. The 
Anacostia Flats were littered with smoking debris. Miles off, along 
the roads and highways of Virginia and Maryland, thousands of 
veterans and their families were hurrying away from the nation's 
capital, some weeping and cursing, others silent and dazed . . . 
116 



A challenge to the authority of the United States had been met 
swiftly and firmly," President Hoover declared in a statement to the 
press. "After months of patient indulgence, the government met 
overt lawlessness as it always must be met . . . The first obligation 
of my office is to uphold and defend the Constitution and the 
authority of the law. This I propose always to do." 

But whatever few illusions the American people might still have 
retained about the Great Humanitarian had vanished in the flames 
that consumed the pitiful hovels at Anacostia Flats. The nation 
would soon send another man to the White House. 

That fall, with the presidential campaign underway, the editor 
and publisher of the New York Graphic, Emile Gauvreau, had an 
off-the-record interview at the New York state capital of Albany 
with the Democratic candidate. Governor Franklin D. Roosevelt. 

As Roosevelt and Gauvreau lunched together in a small room, 
telephones kept up an incessant jangHng in the Governor's adjoin- 
ing office. Reports of campaign developments were coming in from 
all parts of the country. Periodically, the conversation between the 
two men was interruped as long distance calls of special importance 
were brought in to the Governor on telephone cord extensions. 

Roosevelt was in an optimistic mood. There was no doubt in 
his mind that he would be the next President of the United States. 
Confidently, the Governor told Gauvreau some of his plans for the 
nation. 

"We need a direct contact with the people," said Roosevelt. 
"Now is the time for the human hand to reach out to help ... So 
you liked my 'forgotten man' speech? That describes millions of 
our people. And the forgotten man represents four in each family 
that he supports as the good provider. If fourteen million people 
are out of work, multiply that by four to know the number 
actually in want. Something will have to be done about that . . . 
To keep the people happy, give the people work— that's the job." 

The Governor drew deeply on his cigarette and slowly exhaled 
a cloud of smoke. "Now in Russia—," he began, and deliberated be- 
fore continuing, "I'm going to recognize Russia. I am going to send 
people there to see what the Russians are doing . . ." The subject 
seemed to hold a special fascination for him. "Russia . . . Russia, a 
strange land, and their ideas may seem strange— I shall send people 
to study Russia." 

117 



Abruptly, Roosevelt sat bolt upright in his chair. "There is work 
to be done," he declared. "Our people will have to be put back on 
their feet." 

Another telephone call was brought in. Roosevelt listened for a 
few moments, then laughed jovially. "Good work!" he said. "Three 
more states! Fine, Jim." 

Returning to his conversation with Gauvreau, Roosevelt told the 
editor. "We will help the people yet." Momentarily, his face 
clouded. "It will have to be soon. They are getting restless. Coming 
back from the West last week, I talked to an old friend who runs 
a great western railroad. 'Fred,' I asked him, 'what are the people 
talking about out here?' I can hear him answer even now. 'Frank,' 
he replied, Tm sorry to say that men out here are talking revolu- 



On November 8, 1932, carrying forty-two states, with a popular 
plurality of more than seven million votes, Franklin Delano Roose- 
velt was elected President of the United States. 



118 



BOOK THREE: THE WAR WITHIN 



Chapter viii 
NEW DEAL 



"A great man is great not because his personal qualities give 
individual features to great historical events, but because he 
possesses qualities which make him most capable of serving 
the great social needs of his time. A great man is precisely a 
beginner because he sees further than others, and desires 
things jnore strongly than others. ... he points to the new- 
social needs created by the preceding development of social 
relationships; he takes the initiative in satisfying these needs. 
He is a hero. But he is not a hero in the sense that he can 
stop, or change, the natural course of things, but in the sense 
that his activities are the conscious and free expression of 
this inevitable and unconscious course." 

From George Flekhanov^s essay, The 
Role of the Individual in History, pub- 
lished in i8p8, 

"My anchor is democracy— and more democracy." 

President Franklin D. Roosevelt 
August 1 8, ipsj. 



I. F.D.R. 

"I PLEDGE you, I pledge myself, to a new deal for the American 
people . . . This is more than a political campaign; it is a call to 
arms. Give me your help, not to win votes alone, but to win in 
this crusade to restore America to its own people." 

With these words Franklin Delano Roosevelt had accepted the 
Democratic nomination for President on July 2, 1932, and heralded 
the beginning of an historic era in America which would be known 
to the nation and to the world as the New Deal. 

The New Deal was to be a period of profound and sweeping 
democratic reforms affecting every phase of American life. But it 
120 



was to be more than that. Complex, protean and often paradoxical, 
the New Deal derived its predominant character and assumed its 
form in the matrix of two epochal conflicts involving great masses 
of humanity: the revolt of miUions of Americans against the inef- 
fable suffering, want and human waste of the Great Depression; 
and the momentous struggle of the freedom-loving peoples of the 
world against barbaric conquest and enslavement by the Fascist 
Counterrevolution. * 

On the morning of January 30, 1933, almost exactly one month 
before President Roosevelt's inauguration, the ex-Reichswehr spy 
Adolf Hitler was appointed Chancellor of the Reich by the senile 
President of the German Republic, Field Marshal Paul von Hinden- 
burg. On February 27, five days before Roosevelt entered the 
White House, the Nazis set fire to the Reichstag, blamed the act 
of arson on the Communists, and Hitler, declaring a state of emer- 
gency, seized supreme power in Germany. 

On February 27 also, British Foreign Minister Sir John Simon 
told the House of Commons that the British Government was im- 
posing an arms embargo against both China and Japan— a year and 
a half after Japan had invaded Manchuria, and at a time when the 
embattled Chinese armies were in desperate need of British arms . . . 



* "The New Deal," Louis M. Hacker and Benjamin B. Kendrick write in 
their history, The United States Since 186^, "has been described as a revolution 
and, although it showed none of the violence and turbulence associated with 
revolutionary overthrow, it did represent a shift in political power— from big 
industrialists, investment bankers, and the larger farmers to the lower middle 
classes and the workers." 

A very different definition of the New Deal is offered by playwright Robert 
Sherwood in his intimate study, Roosevelt and Hopkins. "It was, in fact, as 
Roosevelt conceived it and conducted it," states Sherwood, "a revolution of 
the Right, rising up to fight in its own defense." 

While certainly not lacking in bloody violence and extreme turbulence- 
Hacker and Kendrick to the contrary notwithstanding—, the period of the 
New Deal did not encompass a revolution of the workers and the lower 
middle class; at no time during 1933-1945 was there any transfer of actual 
control of the economic-political life of the nation from American finance- 
capitalists to another class. 

On the other hand, despite the authoritative tone of Sherwood's observation, 
the New Deal, for all its contradictions, by no means constituted a "revolu- 
tion of the Right"— or rightest counterrevolution; never before in American 
history had there been a more fruitful upsurgence of popular and progressive 
forces in the land. 

Both definitions, like many contemporary evaluations of the New Deal, 
overlook the decisive impact of the international anti-fascist struggle in the 
shaping of the New Deal. 

121 



Already, over the continents of Europe and Asia loomed dark 
presagements of the Second World War. 

In America, too, crucial days were at hand. Millions were des- 
titute and without work. Millions were homeless or living in dread- 
ful hovels. Millions were frantically searching for food for their 
children. Fear stalked the land. 

On Saturday, March 4, the day of the Presidential inauguration, 
the banks closed down throughout America, and the entire banking 
system of the richest country in the world ceased to function . . . 

And this, in part, was what President Franklin D. Roosevelt told 
the stricken nation in his inaugural address: 

This great nation will endure as it has endured, will revive and pros- 
per. So, first of all, let me assert my firm belief that the only thing we 
have to fear is fear itself— nameless, unreasoning, unjustified terror which 
paralyzes needed efforts to convert retreat into advance . . . 

Plenty is at our doorstep, but a generous use of it languishes in the 
very sight of the supply. Primarily this is because the rulers of the ex- 
change of mankind's goods have failed through their own stubbornness 
and their own incompetence, have admitted their failure, and have ab- 
dicated. Practises of the unscrupulous money changers stand indicted 
in the court of public opinion, rejected by the hearts and minds of 
men . . . The money changers have fled from their high seats in the 
temple of our civilization . . . 

We do not distrust the future of essential democracy. The people 
of the United States have not failed. In their- need they have registered 
a mandate that they want direct, vigorous action. They have asked for 
discipline and direction under leadership. They have made me the 
present instrument of their wishes. In the spirit of the gift I take it. 

Like all great statesmen, Franklin Delano Roosevelt was shaped by 
the events and currents of his time no less than he helped shape 
them. When Roosevelt began his first term as President at the age 
of fifty-one, he was an unusually erudite, dynamic and astute 
politician, a man of remarkable eloquence and great personal mag- 
netism, whose liberalism was, in Karl Schriftgeisser's words, "little, 
if any, advanced over that which had animated his predecessor 
[Governor Alfred E. Smith] in Albany." Walter Lippmann re- 
garded this scion of American aristocracy and wealth as "not the 
dangerous enemy of anything," and had offered this trenchment 
comment on Governor Roosevelt's Presidential campaign: 
122 



The Roosevelt bandwagon would seem to be moving in two opposite 
directions ... 

The art of carrying water on both shoulders is highly developed in 
American politics, and Mr. Roosevelt has learned it. His message to the 
Legislature, or at least that part of it devoted to his Presidential can- 
didacy, is an almost perfect specimen of the balanced antithesis . . . 

The message is so constructed that a left-wing progressive can read 
it and find just enough of his own phrases in it to satisfy himself that 
Franklin D. Roosevelt's heart is in the right place. He will find an 
echo of Governor La Follette's recent remark about the loss of "eco- 
nomic liberty." He will find an echo of Governor La Follette's im- 
pressive discussion about the increasing concentration of wealth . . . 
On the other hand, there are all necessary assurances to the conserva- 
tives. "We should not seek in any way to destroy or tear down"; our 
system is "everlasting"; we must insist "on the permanence of our 
fundamental institutions." 

More significantly, Lippmann remarked that "it is impossible he 
can continue to be such different things to such different men" . . . 

When Franklin Delano Roosevelt died twelve years later, after 
shattering all precedent by being elected four times as President of 
the United States, there remained little that was equivocal about his 
position in the affairs of the nation and the world. Roosevelt stood 
among the titans of modern times. He had emerged as one of the 
outstanding if not the most outstanding of all American Presidents 
—as a great architect of American democracy, an historic champion 
of the rights of the little people and the underprivileged, and a 
world leader in the struggle against fascism and for lasting peace 
among the nations. 

The initials, "F.D.R." were spoken with familiarity and affection 
by millions on every continent. Roosevelt's indomitable courage 
and confidence, Roosevelt's speeches, Roosevelt's personality— his 
debonair smile, his intimate, compelling voice, his way of cocking 
his head, the angle at which he held his cigarette-holder— were 
world famed. Roosevelt's unforgettable phrases— "Economic Royal- 
ists," "Quarantine the Aggressor," "Good Neighbor Policy," "Ar- 
senal of Democracy," "Four Freedoms"— had become an integral 
part of all languages. 

"There was a bond between Roosevelt and the ordinary men and 
women of the country," Frances Perkins, Secretary of Labor in the 
Roosevelt Administration, writes in her book, The Roosevelt I 
Knew, "and beyond that, between the ordinary men and women 
of the world." 

123 



Never before was a President so widely beloved by the American 
people. The profound personal affection America's miUions came to 
feel for Franklin D. Roosevelt was later vividly portrayed in the 
following recollection by the Columbia Broadcasting System cor- 
respondent, Bob Trout, who accompanied Roosevelt on many trips 
in the United States: 

Often in the middle of the night, speeding through open farm coun- 
try, or perhaps through the desert, some of the reporters aboard the 
train who stayed up late would look out the window— and there, almost 
always, over the miles and through the days, were the silent crowds: 
farmers, shop-keepers, miners, fishermen, factory-workers . . . ; they rode 
in their battered cars or drove their horses or walked, no one knows 
for how many hours, to stand beside the tracks in the middle of the dark 
night and watch the President's train speed by. It seemed to satisfy 
them . . . just to stand there and look, or perhaps wave a handkerchief 
or a hat. 

Once, in the rugged country of Idaho, we had roared along in the 
train for many miles without seeing a house or a man. Suddenly the 
train raced out from between the tall trees, and ran beside a quiet 
mountain lake. There, on a tiny home-made pier, beside his log cabin, 
stood a man— a trapper or a fisherman or a hunter perhaps— standing on 
his little pier, between two large American flags he had rigged up, 
standing at attention, with his hand in a military salute at his forehead 
as the train sped past. He had made his arrangements, put up his 
decorations, and he greeted the train for the few minutes it was visible 
to him. 

From the outset, the members of President Roosevelt's so-called 
"Brain Trust," and his other aides and assistants contrasted sharply 
with the millionaires, politicos, rascals or embezzlers who had 
formed the entourages of the previous three Presidents. Some lead- 
ing New Dealers, it was true, like the loquacious blustering General 
Hugh S. Johnson, head of the National Recovery Administration, 
were bureaucratic and dictatorial; some, hke the smart young 
Columbia teacher, Adolph Berle, were later to become cynical and 
embittered; but almost without exception the individuals around 
Roosevelt were men of intelligence, energy, resourcefulness and 
social awareness. Among them were Secretary of the Interior 
Harold L. Ickes, blunt-spoken and short-tempered, a liberal 
RepubHcan and former "Bull Mooser"; Secretary of Agriculture, 
and later Vice-President, Henry A. Wallace, lean-faced and ideal- 
istic, an affluent and eminent agronomist; Secretary of Labor 
Frances "Ma" Perkins, primly-dressed first woman cabinet member, 
124 



a protege of the famous social worker Jane Addams; brilliant, 
plump, gentle-featured Judge Samuel Rosenman, holding no official 
Government post but known to be one of Roosevelt's most trusted 
advisers; Robert Sherwood, the towering solemn-faced playwright; 
Assistant Secretary of Labor Rexford Guy Tugwell, strikingly 
handsome former college professor; Archibald MacLeish, the well- 
known poet. 

Closest of all President Roosevelt's aides and intimates was the 
ailing former social worker, Harry L. Hopkins, son of a harness- 
maker and one-time Socialist, a man of swift intelligence and deep 
humaneness, with a passionate love for the poetry of John Keats. 
After serving as Federal Relief Administrator and Secretary of 
Commerce, Hopkins came to be regarded during the war years— 
to quote the words of a British official to playwright Robert Sher- 
wood—as "Roosevelt's own, personal Foreign Office." Summing up 
much of Harry Hopkins' character was his own statement as Fed- 
eral Relief Administrator: "Hunger is not debatable." 

2. First Term 

In his first inaugural address, President Roosevelt had promised 
action; and action there was, from the start— bold, hectic, intense, 
electrifying and sometimes confused and confusing action, action 
on a scale never before witnessed by the American people. 

Within his first ten days in office, Roosevelt called Congress into 
special session, and demanded and received special emergency 
powers— seventy-five distinct grants of sweeping power— such as no 
peacetime president had ever had. He decreed a national bank holi- 
day; drafted the National Economy Act; prohibited the export of 
gold and all dealing in foreign exchange; slashed Federal expenses; 
asked Congress to legalize beer; reopened the banks; and, as the 
opening week of his Administration ended, addressed the nation in 
the first of his famous, informal and warmly intimate Fireside 
Chats. 

Within Roosevelt's first three months in the White House, these 
were some of the pieces of legislation rushed through Congress: 

National Industrial Recovery Act 
Economy Act 
Emergency Banking Act 
Tennessee Valley Authority Act 
Civilian Conservation Corps Act 

125 



Agricultural Adjustment Act 

A $500,000,000 Emergency Relief Act 

Home Owner's Loan Act 

3.2 Beer Act 

Glass-Steagal Bank Act 

Wagner Employment Exchange Act 

Gold Clause Resolution 

Railroad Co-ordinator Act 

Securities Act 

And, as the feverish activity continued during the following 
months, as a vast program of Public Works was projected and the 
country blossomed forth with ubiquitous NRA Blue Eagle insignia 
and the slogan, ^'We Do Our Part,''^ sudden hope surged through 
the land. It was as if for three dark years the nation had held its 
breath in fear and now, all at once, the nation breathed again . . . 

Reviewing Roosevelt's accomplishments during the first year of 
his Administration, Walter Lippmann wrote early in 1934: 

When Mr. Roosevelt was inaugurated, the question in all men's minds 
was whether the nation could "recover" . . . Panic, misery, rebellion, and 
despair were convulsing the people and destroying confidence not 
merely in business enterprise but in the American way of life. No man 
can say into what we should have drifted had we drifted another twelve 
months . . . Today there are still grave problems. But there is no over- 
whelmingly dangerous crisis. The mass of the people have recovered 
their courage and their hope. 

But even as Lippmann wrote these words, the nation's mood was 
undergoing a deep and disturbing transformation. The "New Deal 
Honeymoon," when big business and organized labor had joined 
in a tenuous unity in support of Roosevelt's emergency measures, 
was ending in widespread discontent and rapidly mounting unrest. 
Roosevelt's observation that the "money changers" had "fled their 
high seats in the temple" was proving more poetic than profound, 
and disillusioning compromises and contradictions marked the 
policies of the new Administration. 

As Frederick Lewis Allen later wrote in The Lords of Creation: 

Close observers of the New Deal noticed an increasing tendency to 
announce new programs with a blare of trumpets and then, as opposition 
developed, to moderate them . . . The NRA gradually stood revealed as 
a governmental arm which protected groups of businessmen in organiz- 
ing to maintain themselves against new competitors and against the 
reduction of prices to the consumer; as an agency which accelerated and 
only partially controlled that process of concentration which the gov- 
ernment in earlier reform periods had so earnestly opposed! 
126 



The Wall Street publication, The Annalist, stated at the time: 
"The large aggregates of financial capital stand to benefit in the 
long run from the new regime— the ehmination of competitive 
methods, closer welding together of the private banking with the 
governmental financial apparatus, the increase of control and coor- 
dination—all are elements of the strength of the future of financial 
capitalism." * 

* Expressing a more outspoken viewpoint, E. F. Brown, Associate Editor 
of the Current History Magazine of the New York Times had written as early 
as July, 1933, "The new America will not be capitalist in the old sense, nor 
will it be Socialist. If at the moment the trend is towards Fascism, it will be 
an American Fascism, embodying the experience, the traditions and the hopes 
of a great middle-class nation." 

One of the most ominous anti-democratic developments during this early 
stage of the New Deal— a development receiving scant attention in commen- 
taries on the period— was the rapid growth of a government secret police 
apparatus. It was at this time that the Federal Bureau of Investigation mush- 
roomed into a government agency of extensive power and that FBI chief, 
J. Edgar Hoover, began his climb to national fame. 

The criminal underworld faced hard times in 1933. The repeal of Prohibi- 
tion had dealt a death blow to the multi-million dollar business of bootlegging; 
and, as an increasing number of criminals turned to less lucrative and more 
desperate trades, there was a wave of kidnappings and bank robberies. The 
FBI had done nothing to interfere with the vast depredations of gangsters 
during Prohibition; but now, with the children and property of even the most 
prominent and wealthy citizens menaced, there was a sudden demand for 
federal action. Congress enacted laws extending the jurisdiction of the FBI 
to cover bank robberies, kidnappings and various other crimes. 

J. Edgar Hoover was quick to exploit the situation. Before long, the dare- 
devil exploits of his Special Agents, popularly known as "G-men," were the 
talk of the country; and press, radio and motion pictures were chronicling 
blood-curdling battles between the G-men and bank robbers, kidnappers and 
escaped convicts. Overnight, the FBI became a household word. 

"Five years ago, J. Edgar Hoover was practically an unknown as far as 
the general public was concerned," Courtney Ryley Cooper, an FBI publicist 
who also specialized in writing articles on circus lite and jungle animals, 
stated in his introduction to Hoover's book, Fersons in Hiding, in 1938. 
"Today he heads our best known group of man-hunters— the G-men. The 
small boy is rare indeed who does not look upon its director as his ideal . ." 

Through the indefatigable efforts of his large publicity staff, Hoover's views 
on "scientific crime detection," "child delinquency" and kindred topics reached 
the nation in a torrent of articles, press releases, public speeches, newspaper 
interviews and radio broadcasts. 

"He's the greatest publicity hound on the American continent," snorted 
Senator George Norris regarding Hoover. "Unless we do something to stop 
this furor of adulation and omnipotent praise, we will have an organization 
of the FBI that, instead of protecting the government from criminals, will 
direct the government itself." 

In Hoover's Washington office there hung a framed statement, entitled 
"The Penalty of Leadership," which read: "In every field of human endeavor, 

127 



While observing those NIRA regulations they found advan- 
tageous, many employers were brazenly violating sections of the 
codes supposedly designed to benefit employees. "For God's sake," 
a worker told the journalist George R. Leighton, who was in- 
vestigating NIRA achievements in the fall 1933, "don't tell any- 
body that you've been here. There are men in cement plants near 
here who have complained and now they're out in the cold." In 
Harper^ s Magazine Leighton reported that "the spirit and intent of 
the National Industrial Recovery Act and the codes are being 
frustrated, openly and in secret." 

Workers began calling the NRA the "National Run Around" . . . 

Even so, during 1934- 193 5, growing numbers of restive workers 
were aggressively taking at its face value Section 7a of the NIRA, 
which stated that "employees shall have the right to organize and 
bargain collectively." 

"The law is on our side!" boomed John L. Lewis, the histrionic 
beetle-browed President of the United Mine Workers, and staking 

he that is first must perpetually live in the white light of pubhcity . . . When 
a man's work becomes a standard for the whole world, it also becomes a 
target for the shafts of the envious few." 

Year by year, subsidized by constantly increasing congressional appropria- 
tions, the FBI grew in size and complexity. With much fanfare, Hoover 
established a Crime Laboratory and founded, in 1935, an FBI National Police 
Academy in Washington to serve "as a university of police methods" for 
training police officials from all parts of the country. According to Hoover, 
the fingerprints in his "Identification Division" numbered in the millions by 
the mid-thirties. "They come from the crossroads of America," said Hoover, 
"from the villages, from the towns, cities and metropolitan centers, to be 
concentrated in Washington, and there to form a vast cross-index . . ." 

The one-man dictatorship which Hoover had established within the FBI 
itself was described as early as August 1933 by Ray Tucker in an editorial 
in Collier's magazine in these words: "Under him [Hoover] the Bureau was 
run in a Prussian style; it became a personal and political machine. iMore 
inaccessible than Presidents, he kept his agents in fear and awe by firing and 
shifting them at whim; no other government office had such a turnover of 
personnel . . . He always opposed Civil Service qualifications for his men . . . 
He was a law and czar unto himself." 

According to Ray Tucker, Hoover "carried on and enlarged the best— or 
worst— traditions of what amounts to a system of secret police": 

". . . the bureau's shadows frequently had under surveillance such dignitaries 
as prospective Cabinet members, government officials, publishers, newspaper 
reporters, clerics, college professors, liberals, certain classes of the intel- 
ligentsia, alleged Communists, labor leaders— and some criminals . . ." 

Under Hoover's direction, said Tucker, the FBI by 1933 had become "a 
miniature American Chcka." 

^ In the years immediately ensuing, the FBI outgrew the "miniature" classifica- 
tion. (For additional details on the FBI, see Book Four.) 

128 



his union's whole treasury in an organizational drive tripled the 
union's membership in four months. Twelve thousand Pacific Coast 
longshoremen headed by the militant rank-and-file leader, Harry 
R. Bridges, striking in May, 1934, together with maritime workers, 
brought shipping to a standstill from San Diego to Seattle; and in 
mid-July, after strikers had been killed by police, the entire city 
of San Francisco was tied up for four days by a general strike. In 
1935 more than 40,000 National Guardsmen in nineteen states were 
called out to suppress strikes. From one end of the country to the 
other, industry fermented with bitter labor struggles, grim strikes 
and union organizational campaigns. 

In November, 1935, in a revolt headed by John L. Lewis against 
the die-hard policies of the Old Guard in the AFL, the leaders 
of eight AFL internationals founded the Committee for Industrial 
Organization to build industrial unions and organize the unor- 
ganized. . . .* 

Meanwhile, the rich had grown even more disgruntled than the 
poor with the New Deal. "The year 1933," Lammot du Pont, 
president of the giant chemical concern of E.I. du Pont de Nemours 
& Company, declared in January 1934, "has witnessed an adven- 
turous attack by the Administration upon the pohtical, social and 
economic ills of the country." Other leading industrialists and 
financiers, who had at first smilingly accepted Roosevelt's "radical" 
utterances as not unprecedented demogogy, reached the furious 
conclusion that the President actually meant much of what he said 
about the excesses of the "privileged few," the "humane ideals of 
democracy," the right of the workers to organize and of the "un- 
fortunate—to call upon the government for aid." As the New Deal, 
responding to popular pressure, expanded its relief and public works 
program, and as the trade union movement swelled in size, big 
businessmen acrimoniously branded Roosevelt as a "traitor to his 
class" and launched a virulent propaganda campaign against "that 
Red in the White House" and his whole Administration. By the 
spring of 1935, Kiplinger's Washington Newsletter estimated that 
eighty percent of the businessmen in the country were opposed to 
the New Deal. 

* In September 1936 the Committee for Industrial Organization was sus- 
pended with its adherents from the AFL by the AFL executive council. The 
CIO held its first convention at Pittsburgh in November 1938, changed its 
name to Congress of Industrial Organizations, and elected John L. Lewis 
president. 

129 



The bitter hostility of big business toward the New Deal was not 
lessened when, following a sweeping Democratic victory in the 
November 1934 congressional elections, President Roosevelt told 
the opening session of Congress on January 4, 1935: 

We have ... a clear mandate from the people, that Americans must 
forswear that conception of the acquisition of wealth which, through 
excessive profits, creates undue private power over private affairs and, 
to our misfortune, over public affairs as well. 

In Washington the "political deputies of wealth" prepared to 
sabotage future New Deal legislation. According to a report in the 
New York Times on February 24, a "Committee of 100" had been 
formed in the House of Representatives "to hold secret meetings" 
to map out anti-Administration strategy. 

The Ti?7ies observed editorially: 

.... we have a President with a nominal majority of two-thirds in both 
houses of Congress, faced and thwarted every day by divisions within 
his own ranks and threats of a spreading revolt against his most impor- 
tant policies. 

In the mid-summer of 1935, the New Deal crossed the Rubicon. 
On May 27, the United States Supreme Court invalidated the 
NIRA. The opinion supporting the decision, in the words of 
Charles and Mary Beard, "seemed to block every loophole for the 
regulation of procedures, hours and wages in industry by Federal 
law." 

At a Wliite House press conference of more than two hundred 
newspapermen. President Roosevelt declared that the Court decision 
was "more important than any decision probably since the Dred 
Scott case." The President read excerpts from a few of the thou- 
sands of telegrams he had received asking him whether there was 
nothing he could do to "save the people." 

"The big issue," said Roosevelt, "is this: Does this decision mean 
that the United States Government has no control over any eco- 
nomic problem?" 

Roosevelt was determined this was not to be the case. 

One month later, on June 27, Congress passed the National Labor 
Relations Act. Deriving its legal sanction from the power of Con- 
gress to regulate interstate commerce, the Act established a per- 
manent National Labor Relations Board to investigate complaints 
and issue "cease and desist" orders prohibiting interference by em- 
130 



ployers in the collective bargaining of their employees, main- 
tenance of company-financed unions, discrimination against union 
members in employment and other unfair labor practises. 

The battle Hnes were now sharply drawn, and President Roose- 
velt made clear to the American people on which side he stood. 
In his first Fireside Chat of 1936, the President declared: 

We insist that labor is entitled to as much respect as property. But 
our workers with hand and brain deserve more than respect for their 
labor. They deserve practical protection in the opportunity to use their 
labor at a return adequate to support them at a decent and constantly 
rising standard of living, and to accumulate a margin of security against 
the inevitable vicissitudes of life. . • • 

Roosevelt continued: 

There are those who fail to read both the signs of the times and those 
of American history. They would try to refuse the worker any effec- 
tive power to bargain collectively, to earn a decent living and to acquire 
security. It is these short-sighted ones, not labor, who threaten this coun- 
try with that class dissension which in other countries has led to dic- 
tatorship and the establishment of fear and hatred as the dominant emo- 
tions in life. 

Throughout the 1930's the nation was to be rent by a bitter con- 
flict instigated by the "short-sighted ones" of whom Roosevelt 
spoke. 

The nature of this conflict had been prophetically described by 
Theodore Dreiser in 193 1 in these words: "the great quarrel today 
in America is between wealth and poverty— whether an individual, 
however small and poor, shall retain his self-respect and his life, or 
whether a commercial oligarchy shall at last and finally take charge 
and tell all the others— some 125,000,000 strong now— how they 
shall do and what they shall think and how little (not how much) 
they may live on, the while a few others (the strong and cunning) 
exercise their will and their pleasure as they choose. That is the 
war that is coming!" 



31 



Chapter ix 

FORCE AND VIOLENCE 



It is one of our proudest boasts that the American working class has, 
generally speaking, the highest standard of living of any working class 
in the world. How did our workingmen achieve this position? Only 
through struggle, intense struggle against bitter opposition, and especially 
through the struggle of organized labor. 

From a speech by Rockwell Kent, September 1948 

Those who call for violence against radicals, strikers and Negroes go 
scot-free. Not a conviction, not a prosecution in fifteen years. . . . But 
the reactionaries not only incite violence; they practice it ... It is 
plain . . . that those who defend majority prejudice or property rights 
may not only advocate but practice violence against their enemies with- 
out fear of prosecution. 

American Civil Liberties Union Report, ips6 

I understand sixty or seventy-five shots were fired in Wednesday's 
fight. If this is true, there are thirty or thirty-five of the bullets accounted 
for. I think the officers are damned good marksmen. If I ever organize 
an army they can have jobs with me. I read that the death of each 
soldier in the World War consumed more than five tones of lead. Here 
we have less than five pounds and these casualties. A good average, I 
call it. 

R. W. Baldwin, president of the Marion Mantcfacturing 
Company, as quoted in the ^^Asheville Citizen''^ after the 
killing of six unarmed strikers at his plant and the wounding 
of eighteen by deputies on October i, 1929 



I. King of the Strikebreakers 

In JANUARY 1935, Fortune magazine featured an article describing 
the remarkable career of an American millionaire whose fame and 
fortune had been, according to the magazine's editors, "in a business 
that is permitted to exist nowhere except in the U.S." 

132 



The millionaire's name was Pearl L. Bergoff. His business was pro- 
fessional strikebreaking. 

The opening sentences of the Fortune article posed this hypo- 
thetical problem to the reader: 

You are the president. It says so on your office door. A week ago 
your workers— your "boys" as you used to fondly refer to them— 
served notice on you that you had just seven days in which to make 
up your mind to raise their pay from $4.00 to $4.50 a day. Either that 
or else . . . You are within some twelve hours of the deadline . . . your 
head has not stopped aching for four days and four nights. 

How much did that guy say he wanted? For fifty thousand dollars 
he'd give you an absolute guarantee that he would break the strike, 
smash the union, and leave you undisputed master of your plant. For 
fifty thousand dollars and how many broken heads? 

The article went on: 

The foregoing is meant to convey some slight idea of the mental 
confusion into which the average executive falls when he is confronted 
with the appalling crisis of a strike ... if, at last, he decides to face 
the issue and fight it through, the probabilities are that he will rise up 
and telephone one Mr. Pearl L. Bergoff, of Bergoff Service, in New York 
City. For Mr. Bergoff is the oldest, toughest, hardest-boiled prac- 
titioner in the field of professional strikebreaking. There is nothing 
indecisive about Mr. Bergoff. 

For more than two decades, Pearl Bergoff had enjoyed national 
fame. Newspapers throughout America referred familiarly to the 
redheaded strikebreaker as "The Red Demon." Thousands of 
professional gunmen and petty racketeers respectfully called him 
"The General." Bergoff's own preference in titles was one which 
he himself had coined— "King of the Strikebreakers." 

There had been other widely known strikebreakers before Pearl 
Bergoff, and he had a number of eminently successful contem- 
poraries. But for the ruthless smashing of major strikes, for un- 
restrained bloody violence and for distinguished clients, there was 
no strikebreaker in America in the early 1930's to equal Bergoff's 
record. It was Pearl Bergoff who put strikebreaking in the United 
States on a modern, mass production basis. 

"Money is my sole aim," stated Bergoff when, as a tough, bull- 
necked, quick-witted young man he arrived in New York City at 
the turn of the century, opened up a detective agency and began 
oflFering his services as personal bodyguard to wealthy New 



Yorkers. In 1907 he decided that there was, in his own words, 
"more money in industrial work." By "industrial work" BergoflF 
meant strikebreaking. 

With the country entering a period of depression and intense 
labor strife, there was an immediate widespread demand among 
employers for the "industrial services" of the Bergoff Detective 
Bureau. In the words of Fortune magazine: "An exquisitely profit- 
able decade stood ahead of him." . . . 

As his reputation for effective strikebreaking grew during the 
next years, and more offers of work than he could handle poured 
into his office, Bergoff became extremely particular about the jobs 
he accepted. Sometimes, as a personal favor for some important 
concern, Bergoff agreed to break a small strike, provided of course 
that the fee was adequate. But ordinarily, Bergoff specialized in 
breaking major strikes in key industries. "Others may break a but- 
ton-hole makers' strike," said Bergoff. "When it's a steel strike they 
call on me." 

These were some of the numerous American firms which em- 
ployed Bergoff 's services during 1907- 193 5: 



Pressed Steel Car Company 

Erie Railroad 

Munson Steamship Line 

Holland-American Line 

Postal Telegraph-Cable Company 

Baltimore and Ohio Railroad 

Baldwin Locomotive Works 

Southern Pacific Railroad 

Pennsylvania Railroad 

New York Central Railroad 



Interborough Rapid Transit of 

New York City 
Standard Oil of New York 
Standard Oil of New Jersey 
Wells Fargo Express Company 
Trenton Street Railway 
Morgan Steamship Line 
Wilson Steamship Line 
Havana-American Steamship Line 
American Smelting and Refining 

Company 



The fees that Bergoff received for breaking strikes were com- 
mensurate with the prominence of his clients in the business world. 
By 1925, the net profits of Bergoff 's firm had totaled $10,000,000. 
His own income at the time was $100,000 a year in salary, plus 
several hundred thousand dollars in dividends and bonuses. His 
personal fortune was then estimated at $4,000,000.* 



* In 1925, following a sharp unexpected decline in his business, Pearl Bergoff 
went into temporary retirement. "I closed the office," he subsequently related, 
"and went to Florida . . . and took a flier in real estate." 

After dropping $2,000,000 in Florida land speculations, Bergoff returned to 

134 



"The preparation for breaking a strike," Pearl Bergoff told a 
journalist in 1934, "resembles the mobilization of a small army for 
actual warfare." 

To aid in mobilizing his strikebreaking army and directing its 
operations in the field, Bergoff hired as special aides a group of 
hand-picked ruffians, most of whom had prison records and all of 
whom were adept in the use of fists, guns, knives and blackjacks. 
Bergoff called these aides his "nobles." 

For his "army reserves," as he termed them, Bergoff relied chiefly 
on derelicts, hoodlums, petty criminals and professional strike- 
breakers. Their function was to fill the jobs of striking workers, 
and, if not actually to work themselves, to give at least the appear- 
ance of active production by such devices as keeping smoke pour- 
ing from factory chimneys. These men were known as Bergoff 's 
"finks." 

It was understood that the few dollars a day which Bergoff's 
finks were paid did not represent their full remuneration and was 
to be supplemented by whatever tools, factory equipment, clothing 
and other goods they could steal while on the job. "Bergoff's finks," 
wrote Edward Levinson in 1935 in his book / Break Strikes/ The 
Tech?iique of Pearl L. Bergoff, "have stolen everything from 
plumbing fixtures to $50,000 worth of furs." 

Classifying them according to "training and experience," Bergoff 
maintained a huge list of the "finks" and "nobles" he had employed 
throughout his years of strikebreaking. "This list," he said, "is my 
most priceless stock in trade, the core of my business, and could 
not be duplicated or retraced because it is the product of time 
primarily, combined with the exercise of discrimination and grilling 
experience." 



New York City and reorganized his strikebreaking firm under the name, 
Bergoff Service Bureau. 

Bergoff's new headquarters occupied four rooms on the fourteenth floor of 
the Fred F. French Building at 551 Fifth Avenue. In the sparsely furnished 
reception room there hung a sign which read: "No loud noise or profanity." 
Before being admitted to the inner office, visitors were carefully scrutinized 
through an iron-grilled peephole. Bergoff's own private office was adorned 
with framed newspaper clippings of his exploits and testimonial letters from 
leading business executives. 

Following the stock market crash of 1929, the Bergoff Service Bureau, 
together with other outstanding business concerns, temporarily encountered 
difficult times. Said Bergoff later, "Business was so rotten we had to sell our 
arsenal. Conditions were terrible. Fm not blaming Mr. Hoover, y'understand." 



Here are the names and records of typical "nobles" on Bergoff's 
list: 

James Francis O^Donnelly alias Two-Gun Jim O^Donnell: Grand 
larceny, 191 7, New York City, term at Blackwell's Island; man- 
slaughter, 1926, Dumont, N.J., sentenced to eight years in New 
Jersey State Prison. 

Jajnes Weiler, alias Joe Spanish: manslaughter, 19 19, New York City, 
term at Dannemora Prison; assault, 1925, New York City; felonious 
assault, 1934, discharged. 

John B. Baron, alias Jesse Mandel: Petty larceny, 1903, New York 
City; petty larceny, 1905, New York City, sent to Reformatory; 
grand larceny, 1909, New York City, sent to Elmira Reformatory; 
grand larceny, 191 o. New York City, sentenced to five years in 
Sing Sing. 

James Tadlock: drug addiction, 192 r, Philadelphia, Pa., rw'o years and 
six months confinement; impairing morals of a minor, 1934, New 
York City, penitentiary term. 

William Stern, alias Kid Stei?iie: petty larceny, 191 1, New York City, 
three months sentence; homicide, 1920, New York City, ten to 
twenty years in Sing Sing. 

Joseph Cohen, alias Joe Pullman: robbery, 1924, Cleveland, Ohio, 
pleaded guilty to assault and battery, fined; assault and battery, 
1930, Cleveland, Ohio, discharged; carrying concealed weapons, 
1930, Cleveland, Ohio, discharged; violation of Harrison Narcotic 
Act, 193 1, sixty days in jail; assault, 1932, no disposition recorded; 
assault, 1932, St. Louis, Mo., no disposition recorded; disorderly 
person, 1934, Jersey City, N.J., ninety days in jail. 

"When we put a man on strike duty as a guard," stated Bergoff, 
"we want a man of good habits. At the same time we cannot have 
any Sunday School teachers working for us." 

Violence and bloodshed invariably accompanied Bergoff's strike- 
breaking activities. "Injuries and fatalities," reported Fortune, "were 
of only minor concern to him. His aim was psychological." 

Since local law enforcement agencies usually worked in collusion 
with the powerful corporations which employed Bergoff, his strike- 
breakers committed innumerable crimes with impunity. His armies 
of derelicts and gunmen descended on city after city, like hordes 
of medieval mercenaries, robbing and terrorizing whole popula- 
tions, and leaving in their bloody wake a mounting toll of injured 
and dead. 

The deliberate provocation of violence was a regular practise 
with BergofiF. A Bergoff gunman, "Frenchy" Joe, told the Collier's 
writer, John Craige, during one strikebreaking operation: 

'36 , 



"You give me twenty-five good guards with clubs and guns, and put 
'em in wagons, and give me a couple of stool-pigeons with guns to 
run through the crowds and fire at the wagons to give us a chance 
to start, and we'd run through the crowds in this town in a day . . . 
We'd gentle 'em. We'd give 'em such a taming they'd run every time 
they saw an express wagon, or else they'd get down on their knees 
and say their prayers. And look at the things we could shake out of 
this town if the thing worked right." 

"For those who preferred the unexpected," relates Edward Levin- 
son in his biography of Bergoff, "there were the two Bergoff 
lunatics, Francis W. Magstadt and Joe Schultz,— one escaped from 
an asylum and the other on his way to one. Turned loose among a 
group of unsuspecting strikers, they could be counted upon to slug 
and shoot, unfettered by the cramping bonds of sanity." * 

On October 24 and 25, 1934, ^^ ^ series of two signed articles 
in the New York Post, entitled "I Break Strikes," Bergoff reviewed 



* A typical if early Bergoff campaign was that which took place when the 
Philadelphia Rapid Transit Company hired him in 1910 to break a strike of 
5000 motormen and conductors seeking an increase in their 21 cent an hour 
wage. For weeks a reign of terror gripped Philadelphia. Bergoff's strikebreakers 
robbed shops, broke into private homes and shot strikers and other Phila- 
delphia citizens. On one occasion a gang of drunken Bergoff strikebreakers 
piled into two trolley cars, and took them on a mad rampage of the city, 
shooting wildly at people in the streets and wounding about a dozen people, 
including a sleeping infant. 

"The first day of the strike two of our men were killed," Bergoff sub- 
sequently related. "I buried one of them at our own expense. He was a man 
with a family." 

The journalist, John Craige, who was in Philadelphia during the strike, 
reported in an article in Collier's: "Never before were there such systematic, 
wilful, brutal, unprovoked assaults upon an unoffending populace in an Amer- 
ican city. There has never been such wholesale pilfering and looting. If you 
gave the strikebreaking conductor a coin you got no change. If you protested 
you were thrown off the car and clubbed, and if you resisted you ran a fine 
chance of being shot. I will never forget the sight of a mother with a child 
in her arms . . . staggering along, blood pouring from three jagged cuts in 
her head, administered by one of these guards." 

The Philadelphia police made no attempt to prevent the outrages committed 
by Bergoff's strikebreakers. 

During the two months taken by Bergoff to break the Philadelphia Rapid 
Transit strike, sixteen men, women and children were killed. 

Fatalities frequently accompanied Bergoff's strikebreaking activities. For 
example, in his attempt to smash a strike at The Pressed Car Steel Works at 
AlcKees Rocks, Pennsylvania, in 1909— a venture which first gained Bergoff 
national repute— there were twenty-two deaths. Among the dead were two 
Bergoff gunmen. "We paid four or five thousand dollars for each of our men 
killed," said Bergoff afterwards. "The income was so large that this expense 
made no difference." 



his record as a strikebreaker with the pride of an eminently success- 
ful self-made businessman. 

"Strikebreaking is my profession," wrote Bergoff. "I have been 
a leader in the field for more then thirty years, almost without in- 
terruption. I have mobilized small armies on a few hours' notice an- 
swering the call of railroads, traction and steamship companies in 
scores of cities . . ." 

According to Bergoff, the basic techniques of strikebreaking had 
changed very little since he first entered the profession. The chief 
objective was still to undermine the morale of the strikers and 
"persuade" them of the hopelessness of their cause. There had, it 
was true, been some developments in the instruments of persuasion: 

In the old days we maintained an arsenal. We had 2,500 rifles with 
plenty of ammunition. A couple of thousand nightsticks and clubs were 
always on hand. Today we keep pace with the modern requirements. 
We sent tear gas to Georgia in the recent textile strike . . .* 

Noting that the net income derived from any business enterprise 
was the ultimate test of its success, Bergoif observed: "The profits 
of strikebreaking have been large." But success could not, of course, 
be measured in financial terms alone. He had other causes for gratifi- 
cation: 

... I have come to look upon the services rendered by my organiza- 
tion to commerce and industry as basically similar to those of the 
physician to the ailing individual. I believe there is an academic or col- 
legiate degree of "Doctor of Economics" but I feel that I can justly 
lay claim to that of "Doctor of Practical Economics," without expos- 
ing myself to undue criticism." 

There were others in America who had come to share BergofF's 
own estimate of his importance as an American citizen. Newspapers 
in the early 1930's quoted the millionaire strikebreaker's views on 
national and international affairs. Financial journals commented on 

* The article on Pearl Bergoff in Fortune magazine had this to say about 
his arsenal: "He values his current arsenal at $14,500 and replenishes it from 
time to time as fresh bargains come along. Tear gas he buys from Federal 
Laboratories, Inc. in Pittsburgh, [For data on Federal Laboratories, Inc. see 
pages 145 ff.] Night sticks he buys by the gross from police supply houses, of 
which there are many in Chicago and New York, with Cahn-Walter Co. of 
Lafayette Street, Manhattan, getting the bulk of Bergoff orders. Brass knuckles 
are available from numerous sources. As to machine guns: a recent federal 
statute requires that owners of them be registered— but a considerable bootleg 
traffic goes on in them nonetheless, and they can usually be had by anyone 
who puts his mind to it." 

138 



the phenomenal success of the Bergoff Service Bureau. A grand 
jury investigating riots connected with one of Bergoff's strike- 
breaking operations extended a vote of thanks to him "for saving 
the city from disaster." 

Among Bergoff's friends and social acquaintances were well- 
known politicians and prominent businessmen. Bergoif played golf 
at fashionable country clubs, donated impressive sums to charity, 
and joined the Cathohc Church. In Bayonne, New Jersey, where he 
had settled with his family, Bergoff financed the construction of an 
office building with his initials, "P.L.B.," carved in gothic letters on 
the facade ... 

In December 1934, after twenty-seven years of transporting 
armies of desperadoes about the countryside, terrorizing whole cities 
and causing the deaths of scores of citizens, Pearl Bergoff finally 
appeared in a court of law. The charges against him were brought 
not by any state or federal agency, but by a group of ex-convicts 
and professional strikebreakers. Their complaint was that Bergoff 
had hired them to help break a strike and then failed to reimburse 
them for their services. They were suing Bergoff for wages and 
traveling expenses. 

The trial took place in the Municipal Court of the City of New 
York, with Justice Keyes Winter presiding. 

Bergoff's attorney sought to discredit the testimony of his client's 
former employees by challenging their credibility as witnesses. 
"Were you ever convicted of a crime.^" he asked Harry Borak, a 
swarthy young man wearing spats. 

Borak turned indignantly to Judge Winter. "Judge, I'm not a 
stickup man," he protested. "I was going with a girl. She wouldn't 
marry me and I shot her. I was a young man and I was in love." 

When another of the plaintiffs, Bennie Mann, took the witness 
stand, Judge Winter leaned forward, staring at a prominent bulge 
in one of the man's pockets. The judge asked Mann, "Have you a 
gun on you?" 

"Sure," said Mann. 

"And why do you come into this court with a gun?" demanded 
Judge Winter. 

"I was expecting to go to work this morning," Mann explained. 

When Bergoff testified, he proudly informed the court, "I've 
served American industry, north, south, east and west. I've been 

139 



thirty years in harness to American industry. I've shipped armies of 
men to Cuba and Canada. Railroad strikes, dock strikes, transit 
strikes and textile strikes, I've broken them all in my time, and 
there's still plenty of demand for my services . . ." 

The charges against him, snapped Bergoff, darting venomous 
glances at his accusers, were absolutely false. His professional 
ethics, he declared, were highly esteemed among business leaders. 
"Railroad presidents, I know them all and they've all used me," 
Bergoff told the judge. "In the history of my campaigns I've never 
cheated a man out of a penny. I'm the best known of any strike- 
breaker in the country." 

Notwithstanding Bergoff 's eloquent plea, the decision of the 
court went against him. Judge Winter ruled that Bergoff must pay 
the strikebreakers the wages and expenses that were due them. 

The blow to Bergoff's prestige was mitigated by the wording of 
the court's decision. In it. Judge Winter spoke of Bergoff as "the 
active genius of his profession" and made flattering reference to his 
"fame as a leader in Industrial Service ... his masterly activities on 
behalf of large corporations . . ." 

Bergoff's "masterly activities," however, were drawing to a close. 

With the rapid growth of the trade union movement, the passage 
of the National Labor Relations Act, and the enactment of federal 
legislation forbidding the transport of strikebreakers across state 
lines, the bonanza days of Bergoff's profession were over. 

In 1936 Pearl Bergoff, self-styled King of the Strikebreakers, 
closed his office and went into permanent retirement.* 

2. Blackguards and Blacklists 

"We see no reflection in any way in the employment of detec- 
tives," an attorney representing the Michigan Manufacturers Asso- 

* On August II, 1947, Pearl L. Bergoff died in the St. Vincent's Hospital 
in New York City. The hospital records reveal a final gesture of vanity: on 
entering the hospital a week before his death, Bergoff had claimed to be eight 
years younger than he actually was. 

"I knew him a long time," wrote Westbrook Pegler in his syndicated column 
in the Hearst press. "Pearl Bergoff was never on the Communist side. He was 
a law and order man. Pearl was a wonderful strikebreaker ... I think he 
was cleaner and more honest than any union boss in the U. S. A. Breaking 
strikes was a straight business with him. He never rumbled about democracy 
or human rights." 

140 



elation told the members of the Senate Civil Liberties Committee 
in 1937. " 'Detective' and 'spy' are two names that are used in a 
derogatory sense, but even a spy has a necessary place in time of 
war." 

In the war against trade unionism in America, labor espionage had 
long been regarded by big business as a weapon of vital importance. 
For more than half a century, secret battalions of professional labor 
spies, detectives, agents-provocateurs and paid informers had been 
waging clandestine warfare against the labor movement. But it was 
not until the advent of the New Deal, and the outmoding of the 
crude strikebreaking tactics of the Bergoff era, that labor espionage 
operations reached their peak offensive. 

By 1936 there were more than 200 labor espionage agencies doing 
a land office business in the United States. 

Three of the largest and most successful of these agencies, with 
branch offices functioning in dozens of cities, were the Pinkerton's 
National Detective Agency, the Railway Audit and Inspection 
Company and the Corporations Auxiliary Company. 

Among the approximately 500 clients serviced by Corporations 
AuxiHary Company during 1934-1936 were these concerns: 

Aluminum Co. of America Kellogg Co. 

Chrysler Corp. (23 plants) Kelvinator Corp. 

Diamond Match Company Midland Steel Products Co. 

Dixie Greyhound Lines New York Edison Co. 

Firestone Tire and Rubber Co. Radio Corp. of America 

General A4otors Corp. (13 plants) Standard Oil Co. 

International Shoe Co. Statler Hotels, Inc. 

Here is a partial list of the firms with which the Pinkerton 
Agency had accounts: 

Bethlehem Steel Co. National Cash Register Co. 

Campbell Soup Co. Montgomery Ward & Co. 

Curtis Publishing Co. Pennsylvania R.R. Co. 

General Motors Corp. Shell Petroleum Corp. 

Libbey-Owens Ford Glass Co. Sinclair Refining Co. 

The Railway Audit and Inspection Company Included these com- 
panies among its clients: 

Borden Aiilk Co. Frigidaire Corp. 

Carnegie-Illinois Steel Corp. Pennsylvania Greyhound Bus Co. 

H. C. Frick Coal and Coke Co. Western Union 

Consolidated Gas Co. of New Western Electric & Mfg. Co. 
York 

141 



"The known total of business firms receiving spy services from 
these [labor espionage] agencies is approximately 2,500," the Senate 
La Follette Committee investigating violations of free speech and 
rights of labor reported in December 1937. "The list as a whole 
reads like a bluebook of American industry." 

The labor espionage expenditures of General Motors alone 
amounted to approximately $1,000,000 from January 1934 to July 
1936. 

According to statistics compiled in 1936 by Heber Blankenhorn, 
industrial economist on the National Labor Relations Board, the 
total operating costs for that year of labor espionage agencies in 
the United States exceeded $80,000,000. 

"The main purpose of industrial espionage," writes Leo Huber- 
man in The Labor Spy Racket, "is union-prevention and union- 
smashing." 

To accomplish these aims, labor espionage agencies depended 
chiefly on the systematic promotion of disunity and dissension 
among employees, particularly through the use of Red-baiting; the 
widespread distribution of anti-union propaganda; and the compila- 
tion of extensive blackhsts of union members and sympathizers. 

As privately advertised by Robert J. Foster of the Foster In- 
dustrial and Detective Bureau, these were the services offered by 
his firm: 

FIRST:— I will say that if we are employed before any union or or- 
ganization is formed by the employees, there will be no strike and no 
disturbance. This does not say that there will be no unions formed, but it 
does say that we will control the activities of the union and direct its 
policies provided we are allowed a free hand by our clients. 

SECOND:— If a union is already formed . . . although we are not 
in the same position as we would be in the above case, we could— and 
I believe with success— carry on an intrigue which would result in 
factions, disagreement, resignations of officers and a general decrease in 
membership. 

A more genteel approach in the solicitation of business was used 
by the Corporations Auxiliary Company: 

We start on every operation with the idea of making our operative 
a power in his little circle for good, and, as his acquaintance grows, 
the circle of his influence enlarges . . . 

Wherever our system has been in operation for a reasonable length 
of time . . , the result has been that union membership has not in- 
142 



creased, if our clients wished otherwise. A number of local unions 
have been disbanded. We eliminate the agitator and the organizer 
quietly, and with little or no friction. 

Some of the duties of labor spies were outlined in these instruc- 
tions from the Railway Audit and Inspection Company to one of 
its hundreds of undercover agents: 

It will be necessary that you mingle with the employees so that you 
can win their confidence to such an extent that the men will confide 
in you, as to just what they are doing, etc. 

It will be necessary that you render a good, detailed, lengthy report 
each and every day covering conditions as you find them, reporting 
in detail the conversations you hold, those you overhear, etc. 

Report . . . whether there is any union agitation, etc. 

On Sundays and when not working in the plant it will be necessary 
that you render a report, and in order to do so, so that the client can 
be billed for the day, it will be essential that you associate with some 
of the employees, i.e., visit them, so that you will be able to obtain 
from some of the employees information that you may be able to secure 
in no other way, for much information of value to the client is gained 
in this way. 

Of all information gathered by labor spies, the identification of 
active trade unionists was generally considered most important. 
Each week lengthy lists of such employees were compiled by labor 
espionage agencies and turned over to their clients. Employees thus 
designated were promptly fired and their names added to con- 
fidential blacklists. Describing a typical instance of the use of such 
blacklists, Edwin S. Smith, a member of the National Labor Rela- 
tions Board, stated: 

I have never listened to anything more tragically un-American than 
stories of the discharged employees of the Fruehauf Trailer Co., vic- 
tims of a labor spy. Man after man in the prime of life, of obvious 
character and courage, came before us to tell of the blows that had 
fallen on him for his crime of having joined a union. Here they were— 
family men with wives and children— on public relief, blacklisted from 
employment, so they claimed, in the city of Detroit, citizens whose 
only offense was that they had ventured in the land of the free to or- 
ganize as employees to improve their working conditions. Their reward, 
as workers who had given their best to their employer, was to be 
hunted down by a hired spy like the lowest of criminals and there- 
after tossed like useless metal on the scrap heap. 

Another service featured by labor espionage agencies was the 
forming of company unions. Created with the aim of preventing 
employees from joining bona-fide unions, and secretly controlled 

143 



and financed by the employers themselves, these company unions 
were frequently officered by professional labor spies. 

"Where it is desired that company unions be formed," stated a 
brochure published by the labor-espionage Butler System of In- 
dustrial Survey, "we first sell the idea to the workers and there- 
after promote its development into completion. Hundreds of such 
organizations have been formed to date." 

By 1935, according to a survey conducted by the Twentieth 
Century Fund, approximately 2,500,000 workers in the United 
States were covered by company union plans . . . 

In addition, labor espionage agencies made a special effort to 
get their operatives placed as leading officials in bona-fide unions. 

Posing as diligent trade unionists and sedulously cultivating 
popularity among their "fellow workers," scores of labor spies 
maneuvered their way into executive positions in the CIO, AFL 
and Railroad Brotherhoods. Once in these posts, they vigorously 
applied themselves to the task of undermining the unions through 
a variety of disruptive devices. 

So successful were the efforts of one Corporation Auxiliary 
agent, who managed in 1935 to get elected as secretary of an AFL 
Typewriter Workers Local in Hartford, Connecticut, that the local 
was reduced from 2500 to 75 members within less than a year. In 
Flint, Michigan, another local with labor spies among its officers 
dropped from 26,000 members in 1935 to 122 members in 1936. 

"It is very effective," reported the Pinkerton agent, Lawrence 
Baker, regarding the labor espionage campaign for General Motors 
at the Fisher Body factory in Lansing, Michigan. "One time at 
Lansing-Fisher they were almost 100 per cent organized. And fi- 
nally it went down to where there were only five officers left." 

In its preliminary report to the U. S. Senate on February 8, 1937, 
the La Follette Committee investigating violations of free speech and 
rights of labor stated: 

It is clear that espionage has become the habit of American manage- 
ment. Until it is stamped out the rights of labor to organize, freedom 
of speech, freedom of assembly wiH be meaningless phrases. Men can- 
not meet freely to discuss their grievances or organize for economic 
betterment; they may not even express opinions on politics or re- 
ligion so long as the machinery of espionage pervades their daily 
life . . . 
144 



The report added: 

That private persons or interests should be allowed to maintain 
arsenals is surprising enough. That industry should be permitted to 
arm unscrupulous men under their own pay, gravely wearing the 
badge of the law is startling. That there is allowed to flourish a 
gigantic commercial enterprise in which employers collaborate with 
professional spies in assaulting citizens because they exert their lawful 
right to organize for collective bargaining, is shocking to any true 
defender of constitutional government. 

3. Gas and Guns 

"Labor difficulties are in the making all over the country," wrote 
Barker H. Bailey, vice-president of the Federal Laboratories, Inc., 
of Pittsburgh, Pennsylvania, in a letter to one of the company's 
traveling salesmen in the spring of 1934. "The man who has a terri- 
tory with any appreciable amount of manufacturing . . . certainly 
should be on the look-out for advantageous outlets for the protec- 
tive devices which we have. It looks to me like the year 1934 may 
be a very beautiful one for all of our men." 

The Federal Laboratories "protective devices" to which Vice- 
President Barker referred in his letter consisted of machine guns, 
submachine guns, revolvers, automatic pistols, shot-guns, rifles, ar- 
mored cars, gas guns, gas ejectors, gas mortars, ammunition, bullet- 
proof vests, tear and sickening gas, gas projectiles, gas masks and 
similar supplies. 

Federal Laboratories, Inc. was one of the leading firms in the 
United States engaged in the unique American business of selling 
arms, ammunition, and other military supplies to private industry, 
strikebreaking and labor espionage agencies, vigilante groups, state 
and municipal law-enforcement bodies.* 

Among the hundreds of clients serviced by Federal Laboratories 
were such concerns as: 



* The three principal concerns engaged in this business were Federal 
Laboratories, Inc., the Lake Erie Chemical Company, and the Manville Manu- 
facturing Company. During 1933-1936, the income of these three companies 
from the sale of gas and gas equipment amounted to $1,040,621.14. This figure 
was exclusive of income from the sale of machine guns, revolvers, rifles, am- 
munition and other such equipment which grossed an additional several million 
dollars. 

It should be noted that the name Federal Laboratories, Inc. was only a trade 
name, and that the concern had no official connection with any Government 
agency. 



American Hawaiian Steamship Goodyear Tire and Rubber Co. 

Co. Jones and Laughlin Steel Corp. 

Bendix Corp. L. A. Railway Corp. 

Bethlehem Steel Co. Pacific R & H Chemical Corp. 

Carnegie Steel Co. Pontiac Motor Car Co. 

Chevrolet Motor Co. Sears Roebuck Co. 
Chicago & Eastern Illinois Rail- Six Companies, Inc. 

road Co. Standard Oil, Inc. 

Chicago Tribune Tennessee Coal, Iron and Railroad 

General Motors Corp. Co. 

One of the largest stockholders in Federal Laboratories, Inc., was 
the Atlas Powder Company of Wilmington, Delaware, whose in- 
terests were closely affiliated with those of the great chemical firm, 
E. I. du Pont de Nemours and Company. 

Since the operations of Federal Laboratories, Inc. often skirted on 
the edge of the law, discretion and ingenuity were constantly re- 
quired of the firm's representatives. Illustrative of this fact were 
certain negotiations conducted by Federal Laboratories in San Fran- 
cisco during the general strike in that city, in 1934. 

A Federal Laboratories salesman had secured from the San Fran- 
cisco chief of police an order for more than thirteen thousand 
dollars' worth of gas and gas equipment. But difficulties in filHng the 
order, according to a subsequent account by Federal Laboratories 
Vice-President Bailey H. Barker, arose because of "the refusal of 
certain officers of the city to honor the chief's request that he have 
the shipment made." Barker himself hurried to San Francisco to 
straighten matters out. 

After a private conference with several representatives of west 
coast steamship concerns. Barker wrote a letter to the Bank of 
America which read in part as follows: 

Bank of America NT. & SA. 
Market New Montgomery Office 
San Francisco, Calif. 
Gentlemen: 

We are handing you herewith a sealed envelope which we are asking 
you to deliver on payment to you of $13,809.12. 

When these funds are received by you then remit them to my parent 
organization, the Federal Laboratories, Inc., i85-5ist Street, Pittsburgh, 
Penn. 

Yours very truly, 
Federal Laboratories, Inc. 
by B. H. Barker, Vice-Pres. 

146 



The "sealed envelope" delivered by Barker to the Bank of Amer- 
ica contained Federal Laboratories' invoice for the gas and gas 
equipment ordered by the San Francisco chief of poUce. In ex- 
change, Barker received a cashier's check for $13,809.12. The gas 
equipment, paid for by persons whose names were never made pub- 
lic, was shipped to the San Francisco Police Department. 

"We will not forget, I assure you, the peculiar tangle that we 
found ourselves in," wrote Barker, on his return to Pittsburgh, in 
a warmly appreciative letter to Ashfield Stow of the American- 
Hawaiian Steamship Company, "and to find you not only willing 
to advise, but ready to protect the activities of the people who, in 
good faith, had been dealing with us, will remain in our memory 
long after other things are forgotten." 

Later that year, John W. Young, President of Federal Labora- 
tories, Inc., circulated among the company's agents a memorandum 
summarizing the firm's accomplishments during the previous 
months. Young's memorandum began: 

Gentlemen: We have been experiencing some very eventful days— 
history-making days— not only in this business but in the destiny of our 
country. Class struggle has become more defined and more pronounced. 

Sales exceeded the million dollar mark by a healthy margin the first 
six months of this year. 

Indicating the international scope of his firm's operations. Young 
reported: 

Two car loads of gas have been shipped to Cuba and twenty-two 
armored cars for police use all made by Federal Laboratories. Police 
are being instructed in the use of this equipment and hardly a week 
goes by but what gas is used in one or more cases . . . 

But it was in the United States itself that business had been most 
satisfactory. "Approximately $7,500.00 worth of Federal Gas was 
shipped into Toledo for their trouble," wrote Young. "$20,000.00 
worth into Youngstown, $25,000.00 to Pittsburgh, $10,000.00 to 
Wisconsin and $5,000.00 to Seattle." 

The President of Federal Laboratories concluded: 

You have probably noticed that in the newspaper accounts there 
are many items where tear gas has been effective. The reason for this 
is that police departments are becoming better educated in how to use 
the gas. They use plenty of it and in checking back we find they have 
been using Federal Gas in the majority of cases. 

I want to especially compliment Baxter, Roush, Baum, Grieg, Fisher, 

147 



Richardson and those boys who have given their personal services to 
direct the activities of the police in the use of this equipment during 
times of emergency. 

Joseph M. Roush, one of the Federal Laboratories agents singled 
out for special commendation in President Young's letter, had been 
dispatched to California by the Pittsburgh office early in 1934. With 
labor strife intensifying all along the west coast, Federal Labora- 
tories executives wanted one of their most capable representatives 
on the spot. Their confidence in Roush was not misplaced . . . 

After a preliminary survey of the California situation, Roush re- 
ported in a letter to Bailey H. Barker, the vice-president of Federal 
Laboratories, that business prospects were exceedingly promising. 

"One reaction that was practically universal throughout the 
whole state," wrote Roush, "is that this year will witness the worst 
strikes and riots in the history of our country . . . Next month 
should be a good one. Another strike is expected in the Imperial 
Valley . . ." 

A number of other "nice, juicy strikes" were in the offing, added 
Roush, and there was every reason to anticipate a "healthy demand" 
in the near future for machine guns and other firearms, and par- 
ticularly for tear gas products, in California. 

In subsequent reports, Roush informed his superiors that he was 
making a special effort to push the sale of a new piece of Federal 
Laboratories merchandise. Technically known as Diphenylamine- 
chlor ursine (DM) and more colloquially referred to as Sickening 
Gas, this product w^as described in Federal Laboratories promotional 
literature as follows: 

The liquid chemical is used for lachrymating purposes. It also causes 
nausea, severe headache, vomiting, etc. A severe dose will incapacitate 
a person for six to eight hours. While it is also considered as a toxic 
gas in closed quarters, no reports of fatalities have ever been reported 
from its use in the field. 

"I hope all the Reds get sickening gas in L. A.," wrote Roush 
in one letter. "I will do what I can about it up here" . . . 

Like most traveling salesmen, Roush carried in his sales kit 
various promotional material designed to stimulate the sale of his 
merchandise. When soliciting business he was rarely without a copy 
of The Red Network by Elizabeth Dilling, the anti-Communist 
propagandist who was later to be tried on charges of conspiring 
148 



with Nazi Germany against the U. S. Government.* DilHng's book 
was used by Roush to indicate to prospective customers the extent 
to which "Red agents" had infiltrated American society and the 
desirability of using Federal Laboratories equipment as a "protec- 
tion" against them. Roush also usually had on hand, for distribution 
among potential buyers and regular clients, a pamphlet entitled 
The Red Line of Crime and Civil Disorder A 

During the early summer months, Roush encountered unexpected 
difficulties in the sale of his tear gas products. Potential customers 
were plentiful, but, as Roush notified Bailey H. Barker, certain state 
legislation was creating a really serious problem. 

The State Tear Gas Law certainly played heck with my business . . . 
You will remember the trouble we had during the Meat Strike about 
permits, well the City absolutely refuses to issue permits for any more 
private companies. How do you like that . . . 

Showing a sympathetic understanding of Roush's plight. Barker 
wrote in reply, "If this cannot be corrected locally, I don't suppose 
there is a thing we can do from here, and the disappointment will 
just have to be swallowed, in the hopes that other types of business 
. . . can be secured." 

Roush, however, whose sales commissions depended largely on 

* Elizabeth Dilling, and the twenty-nine other alleged pro-Nazi seditionists 
tried with her in 1944, were never convicted. A mistrial was declared after the 
death of the judge during the trial, and the defendants were never again 
placed on trial. 

t Anti-Communist propaganda material was regularly supplied by Federal 
Laboratories to all salesmen and field representatives for promotional purposes. 

On July 24, 1934, in a bulletin addressed 'To all Federal Agents," Federal 
Laboratories President John W. Young notified his representatives that he 
was sending them copies of Elizabeth DQling's The Red Network as an indica- 
tion of "the danger of revolution" in this country. "We are heading for plenty 
of trouble and it is time for all of the American patriotism you can manifest," 
declared Young. "Whatever you do, read this book when you get the time. 
Carry it with you and get every police chief and sheriff you talk to to buy 
one; get each industrial leader to buy one. We would be glad to fill these 
orders at cost ... in an effort to stir up the American public to prepare 
for the things that are facing us." 

Another communication from Young addressed To All Age?2ts read in 
part: "The Third International ... at their convention in Moscow this month 
manifested a change in policy. They are no longer secretly planning revolu- 
tion. They came out and openly boasted of the progress they are making 
in various countries, especially the United States." In concluding this com- 
munication, Young observed: "The most attractive order of the week was one 
for 12 Thompson submachine guns from the city of Detroit, through George 
Grieg." 

149 



tear gas orders, was stubbornly determined not to lose this business. 
He made a point of cultivating the acquaintance of Clarence Mor- 
rill, the Chief of the State Division of Criminal Identification and 
Investigation. Morrill had the authority to approve or deny permits 
for the sale of gas and machine guns throughout California. 

One day, Roush called Barker in Pittsburgh by long distance 
telephone. Would Barker agree, asked Roush, to giving Morrill 
the exclusive right to handle Federal Laboratories sales in Alaska? 

Barker promptly answered in the affirmative. 

Thereafter, no difficulties were encountered in getting permits 
for the sale of gas and machine guns throughout CaUfornia. 

In a lengthy letter to Barker on July 22, 1934, two days after the 
end of the general strike in San Francisco, Roush gave a jubilant 
account of how his business had "picked up": 

The evening of July 2, Sergeant Mclnerney and Officer Myron 
Gernea . . . asked me if I would go with them in the Headquarters' car 
the next morning and take some of my gas equipment. They said they 
expected considerable rioting and would appreciate my experience in 
the use of gas . . . We started out to do battle with (gas) equipment 
and two shotguns. We did not have long to wait. The first riot started 
early in the morning and we went in with short range shells and 
grenades. 

When some of the "rioters"— striking longshoremen who were 
peacefully picketing the San Francisco waterfront— began picking 
up the gas grenades and hurling them back at the police, Roush 
recommended that "long range shells" be used by the police. "Be- 
lieve me," he wrote, "they solved the problem. From then on each 
riot was a victory for us ... It was most interesting as well as 
educational. . . ." 

The gas shells achieved such "remarkable results" on the water- 
front, related Roush, that not only the San Francisco PoHce De- 
partment but numerous other customers started placing large orders 
for Federal Laboratories equipment: 

It was a landslide of business for us. Immediately following the busi- 
ness from San Francisco came orders for gas and machine guns from 
the surrounding territory . . . Naturally I was in seventh heaven. 

As it was unsafe to leave our stock in the warehouse, I moved it 
into the San Francisco Police Department vault . . . No one could have 
received more courtesies than were extended to mt by the Berkeley 
Police Department, the Oakland Police Department and the District 
Attorney's office and the San Francisco Police Department. The com- 

150 



pany and myself certainly owe them a debt of gratitude . . . The Berke- 
ley Department furnished us office space, telephone service, and even 
gasoline when it was impossible to obtain any throughout the city. 

Roush said he was obtaining photographs of the waterfront 
"riots" which he would forward to the home office. "I might 
mention," he added, "that during one of the riots, I shot a long 
range projectile into a group, a shell hitting one man and causing 
a fracture of the skull, from which he has since died. As he was a 
Communist, I have had no feeling in the matter and I am sorry that 
I did not get more." 

Roush's letter concluded: 

Now let me at this time thank you from the bottom of my heart for 
the very wonderful cooperation that you gave me. No words can ex- 
press the feelings I have on the matter . . . Please convey my thanks 
to all the members of the company that made this business possible 
for us. I can think of no greater inspiration to get out and get more 
business than the knowledge of how firmly the factory and its per- 
sonnel are behind me . . . 

I shall make San Francisco my permanent headquarters ... I find it so 
practical and pleasant I shall continue to live here . . . 

With best personal regards to you and the rest of the company, I 
remain, 

Sincerely yours, 
JOSEPH M. ROUSH.* 

* Despite the exultant tone of Roush's letter, West Coast corporations were 
faced with certain problems which could not be solved with gas and machine 
guns. Not the least of these problems was the Australian-born labor leader, 
Harry Bridges. 

As Bridges emerged during and following the San Francisco strike of 1934 
as one of the outstanding and most militant labor leaders in the country (in 
1937 Bridges became President of the International Longshoremen's and Ware- 
housemen's Union), an extraordinary campaign was launched to deport him 
as a "Communist" seeking to overthrow the U. S. Government "by force 
and violence." At the same time, Bridges' own efforts to become a citizen were 
systematically obstructed. 

Prompted by big business interests, the Labor Department conducted an 
exhaustive investigation of Bridges; but in 1936 a Department memorandum 
stated the investigation had failed to uncover "any legal grounds" for deport- 
ing him. Even so, in March 1938, the Department issued a deportation warrant 
against Bridges, charging him with being a Communist. 

In 1939 a deportation hearing lasting eleven weeks was held before James 
M. Landis, dean of the Harvard Law School. Dean Landis ruled that the 
Government had failed to prove Bridges a Communist and that there were 
no grounds for his deportation. The deportation warrant was cancelled and 
the proceedings were dropped. 

In June 1940 a bill passed the House of Representatives, with the stated 
purpose of deporting Bridges; the bill died in the Senate. Immediately there- 



4- Techniques of Terror 

In later years, the Congress of Industrial Organizations, with its 
6,000,000 members, was to be almost universally recognized as a 
vital and integral part of American society. But in the mid-thirties, 
those laboring men and women who set out to build the CIO 
were often treated as common criminals, were widely branded as 
"Communist conspirators" and traitors to their country, repeatedly 
jailed, driven from town after town, and blacklisted in every major 
industry. 

During 193 5- 193 7, more than 47,000 workers were arrested while 
participating in trade union struggles in America . . . 

Frequently union organizers carried on their work at the risk 
of their lives. Time and again they were kidnapped by company- 
hired gunmen and vigilante gangs, mercilessly beaten and brutally 
tortured. Not a few were murdered in cold blood. 



after, the Lower House amended the Immigration Act, with the aim of 
making "constitutional" Bridges' deportation. 

In 1 94 1 a second deportation warrant was issued; and after a hearing, 
Presiding Inspector Charles Sears held that the warrant should stand . . . 

Here is how Dean Landis had characterized some of the Government wit- 
nesses and FBI informers who had testified against Bridges at the first hearing: 
Major Laurence A. Milner— "a self-confessed liar"; Harper L. Knowles of the 
American Legion— "he lied when he dared to"; John R. Davis— "arrested in 
Indiana on a warrant charging him with grand larceny . . . Charged with 
leaving a shortage of $1,800 in his accounts with his union, he was found 
guilty as charged"; Richard A. St. Qair— "(his) repeated convictions for 
drunkenness are at least a circumstance." Another witness against Bridges at 
the Landis hearing was William C. McCuiston, who had been arrested eight 
times and tw^ice convicted of assault, and who was later tried (and acquitted) 
on charges of murdering an official of the National Maritime Union. 

Among the Government witnesses against Bridges at the Scares hearing were 
Peter J. Innes, a labor spy who had been expelled from his union for theft 
and who was later sentenced to jail for attempted rape of a small child; and 
John Oliver Thompson, who had previously stabbed his wife to death, pleaded 
guilty of manslaughter and been sentenced to 2 to 5 years imprisonment. 

In June 1945, after protracted proceedings in the lower courts, the U. S. 
Supreme Court ruled that the warrant of deportation against Bridges was 
unlawful. That September, Bridges took the oath of American citizenship. 

"The record in this case," stated Justice Frank Murphy of the Supreme 
Court, "will stand forever as a monumicnt of man's intolerance of man. Seldom 
if ever in the history of this nation has there been such a concentrated effort 
to deport an individual because he dared to exercize the freedom that belongs 
to him as a human being and that is guaranteed him by the constitution." 

Four years after the end of World War II, in May 1949, Bridges was in- 
dicted by the Justice Department on the charge of conspiracy and perjury in 
connection with his naturalization, and the Department filed suit to cancel his 
citizenship and to deport him to Australia. See footnote page 282 for further 
details. 



One graphic, personal account of the sort of ordeal often ex- 
perienced by these organizers appeared on August 28, 1935, in the 
New Republic. It was written by Blaine Owen, an organizer in 
the steel industry in Birmingham, Alabama. 

Here is the story Blaine Owen told: 

"There are names which should be put in parentheses after the 
name Birmingham: TCI, RepubHc Steel, Schloss-Sheffield. And the 
greatest of these is TCI. TCI is Tennessee Coal and Iron— United 
States Steel, the House of Morgan. 

"In the company houses they have established a rule that workers 
with gardens must not grow corn or anything as high as a man's 
head. Lights burn in the spaces between the houses all night. Don't 
be found in the streets after nine-thirty. But somehow the meetings 
go on, somehow no terror can stop these meetings. Although it 
means jail and beating, leaflets appear miraculously on doorsteps 
overnight, calling for organization and struggle. 

"It was on my way home that a police car went by slowly, two 
uniformed men in the front seat. One drove, the other swung the 
spotlight full on me. Across the street stood a dark sedan, men 
standing about it, smoking. I walked on around the corner. They 
closed in, and the Ford sedan quietly rolled in front of us, the 
doors already open . . . 

"Held firmly between them in the back of the car, we shot past 
the traffic light and between the rows of quiet buildings. No one 
said a word. The windows were closed tight and we all sweated 
slowly, out of breath from the tussle, panting . . . 

"Smash! It came— though I had known it would come— as a sur- 
prise. My Hp was numb as I took a deep breath and tried to double 
as it came again. This time it caught me on the cheek . . . 

"There was a salt taste to the thick blood, and I sucked it in with 
my breath. A sharp knee dug into my stomach and I gasped, strain- 
ing to free my arms. I thought I would never again get air into 
my lungs, they felt crushed and splattered all over inside me. Some- 
how I forgot my face. It was in my lap, maybe, maybe in his lap, 
a trip hammer pounding on it, but it was no longer part of me 
. . . Suddenly the blows had stopped. The realization startled me 
and I opened my eyes, but only the right one would open . . . 
"The tall, gaunt one stood in the shadow with the dull gleam 
of a revolver at his side, and asked me quick, short questions. 
Each time he would pause long enough for the younger one with 

153 



the straight, dark brows and the rolling lips to slam me in the face. 
'He won't talk,' he said. Smash! 'Hasn't said a God-damn word.' 
Smash! . . . "Keep your mouth shut," I said to myself over and over, 
"keep your mouth shut, because they're going to finish you any- 
way, and the more you say, the more they'll pound you before 
they finish you off. 

" 'Throw him in the river,' the fair young one said, and from 
somewhere a rope was brought . . . the rope cut down across my 
shoulders, with a high, crying swish from a sharp slap. I felt hands 
rip off the shirt, strip by strip, yanking it off the places where 
blood had begun to dry and stick. Someone was ripping my trousers 
with a knife . . . 

"The whipping stopped, and a boot crashed into my ribs. I rolled 
over and slumped back on my face. There was a sUght pause before 
it began again . . . 

"I don't know when it stopped. I only know I could think of 
nothing except the great necessity of keeping my mouth shut and 
lying as still as possible. I recall more questions coming out of the 
shadows . . . 

"Vaguely I realized that it had stopped, heard the car door slam, 
and tried to lift my head as the tires dug into the soft dirt and the 
car spun away . . . 

"I let my face drop forward again, and hugged the earth, not 
wanting to slip off into sleep, wanting now to go, somehow, back to 
Birmingham, back to the workers there. 

"Workers kept an armed vigil at my bedside. One metal worker, 
who had been a member of the Klan only a few years ago, brought 
his little eight year old boy to me. He asked me to sit up in bed, 
and he bared the cuts and slashes that crisscrossed my body, back 
and face before the child's eyes. 

" 'Look at that, sonny,' he said. "That's the company. That's 
what you got to learn to hate— and fight agin.' " 

As milUons of workers in the mid-thirties sought to put into 
practice the rights guaranteed them by their Government in the 
Wagner Labor Act, and as the trade union movement gathered 
momentum throughout the land, acts of savage violence against 
labor organizers and trade union members became daily occurrences 
in America. 



These are a few typical instances of the anti-labor violence during 
1935-1938: 

Alaba7na: In August 1935, the cottonpickers of Lowndes County went 
on strike. The local sheriff organized a gang of vigilantes who roved 
the countryside, breaking into strikers' homes, kidnapping strikers and 
subjecting them to merciless beatings. On August 22, the vigilantes 
kidnapped and killed a striker named James Merriweather. Mrs. Merri- 
weather later related: 

"We had heard about the lynch mob whipping the hands on the Bell 
place . . . About half the mob came on to the house where I was . . . 
They started tearing up the place looking for leaflets. They found 
the leaflets under a mattress ... I said I didn't know about the meeting 
because I had been working . . . Vaughn Ryles started doubling the rope 
and told me to pull off all my clothes. He said, 'Lay down across the 
chair, I want naked meat this morning.' I lay down across the chair 
and Ralph McQuire held my head for Ryles to beat me . . . He was 
beating me from my hips on down, and he hit me across the head. 
They said, 'Now see if you can tell us what you know.' They were all 
cussing . . . Ryles put a loop in the rope . . . He threw the rope over 
the rafters . . . drew me up about two feet from the floor ... I heard 
guns firing . . . They told me about my husband being shot . . . They 
were lynching him then . . ." 

Arkansas: Describing violence in this state, Howard Kester, an organ- 
izer for the Southern Tenant Farmers Union, wrote in the New York 
Post of February 10, 1936: 

"At night deputy sheriffs and masked men ride the roads, on the look- 
out for secret meetings of the union . . . Beatings are frequent and 
killings are not uncommon . . . Planters even organized a Fascist band 
wearing green shirts and carrying the swastika as its symbol . . . Hun- 
dreds of our members have been beaten and scores of families have 
been driven from their homes by terror ... At least ten of our mem- 
bers have been killed. 

"Just a few weeks ago, at Earle, Ark., armed vigilantes broke up 
a meeting in a Negro church— and shot two men . . . The next day, 
while I was addressing 450 white and Negro members of the union in 
a Methodist church, about fifteen armed planters and deputies came 
into the meeting house. 

"I was dragged from the platform and thrown into my automobile 
by three men while the others began beating members of the union, men, 
women and children. The interior of the church was wrecked." 

Michigan: Vigilantes including American Legion members and Na- 
tional Guardsmen in mufti called out by Mayor Daniel Knagge of 
Monroe on the night of June 10, 1937, hurled tear and vomit gas bombs 
at strikers' picket lines at the Newton Steel Co. After beating strikers 
with baseball bats, the advocates of "law and order" dragged sympa- 
thizers from their homes, beat them, burned a tent used as picket 
headquarters and wrecked a dozen strikers' automobiles. 

^55 



Texas: During a pecan shellers strike toward the end of 1937 over 
700 workers were arrested in San Antonio for claiming the right to 
picket. Both men and women strikers were beaten, clubbed and kicked. 
Pickets, including women, children and mothers with babies in their 
arms, were lined up by the police who suddenly shot tear gas into their 
midst. Scores were held in jail without any charges placed against them. 

California: Local 283 of the International Union of Mine, Mill and 
Smelter Workers led a strike of gold miners in Nevada County for 
recognition of the union early in 1938. A vigilante mob led by the 
local sheriff and by members of the California State Highway Patrol 
on January 20 attacked strikers at the Murchie mine. Later, a band 
of 300 vigilantes, armed with riot guns and clubs, attacked a picket 
line of 60 strikers. The next evening 12 pickets were sent to the hospital 
and the union headquarters were smashed. Union officers were threat- 
ened with lynching. More than 100 miners with their families were 
driven out of the county. 

Mississippi: On April 15, 1938, in Tupelo, Charles F. Cox, a 27-year- 
old CIO organizer, was forced into an automobile by a group of men, 
driven about 20 miles, stripped naked and beaten with leather belts 
by 1 1 men. Left barely conscious, he crawled back to town. Cox was an 
important witness for the labor board in cases against mill owners result- 
ing from a local strike in 1937. Organizations investigating the case 
charged Cox had been kidnapped to prevent his testifying against the 
company. 

But nation-wide company-organized violence and intimidation, 
vigilante terror, and strikebreaking by National Guardsmen and 
municipal police failed to accomplish their purpose. 

Spurred on by the hardship and misery of the depression years, 
by the pro-labor policies of the New Deal and by union victories 
in mining. West Coast maritime and other industries, American 
workers continued their mass influx into trade unions and intensified 
their fight for higher wages and better working conditions. 

Early in 1936 the leaders of the CIO unions raised a "war chest" 
and pooled their forces to assist organization in rubber, auto, steel, 
aluminum, radio and other major industries. Newspaper men, chem- 
ists and technicians, retail and office workers, government em- 
ployees, lumbermen, seamen, shoe, fur and oil workers joined the 
swelling army of organized labor. 

In February 1936 10,000 Goodyear Tire and Rubber Workers 
at Akron, demanding recognition of the CIO Rubber Workers 
Union, occupied the Goodyear factory buildings in the nation's 
first sit-down strike. After four weeks, the company yielded to the 
workers' demands. 
156 



In November 1936, the United Auto Workers called a strike at 
General Motors, the nation's largest industrial corporation. After 
three months of bitter struggle involving 125,000 workers and ty- 
ing up GiM plants in a score of cities, the company signed a contract 
with the union. Two months later, Chrysler recognized the UAW 
as the bargaining agent for its employees. 

The crucial struggle was in the steel industry. "If Lewis wins in 
steel," commented Business Week on June 13, 1936, "no industry 
will be safe . . ." By the year's end, 100,000 workers had been 
organized by Phil Murray's Steel Workers Organization. On March 
2, 1937, in the CIO's greatest single victory, the new steel union 
signed up U.S. Steel and its subsidiaries. 

5. "Lest We Forget" 

The date was May 30, 1937, Memorial Day, the national holiday 
in honor of American soldiers fallen in battle. The place was a 
large open field adjoining the Republic Steel plant in South Chicago. 

By mid-afternoon, almost a thousand men, women and children 
had gathered at one end of the field. They were striking Republic 
Steel workers and their families, workers from other industries, 
friends and sympathizers. They had come to parade past the Re- 
public Steel factory as a demonstration to protest the company's 
anti-labor policies. 

"I won't have a contract, verbal or written," Tom Girdler, the 
truculent round-faced president of Republic Steel, had declared, 
"with an irresponsible, racketeering, communistic body like the 
CIO." 

Republic Steel was the only major steel corporation which was 
still unorganized by the CIO. 

It was a pleasant warm Sunday, and a gay spirit prevailed among 
the demonstrators. Waiting for the march to begin, they congre- 
gated in small groups, chatting animatedly, laughing, singing, the 
women wearing light summer dresses and most of the men in shirt 
sleeves. In the middle of the crowd two American flags flapped in- 
dolently in the slight breeze. 

There was one seemingly incongruous note to the scene. Midway 
across the field, between the demonstrators and the Republic Steel 
plant, stood several hundred uniformed poUcemen with riot clubs 
hanging from their hands. Most of the police officers were loosely 

^57 



grouped in rows stretching across a dirt road that traversed the 
field. Behind these rows were clusters of reinforcements and a 
number of patrol wagons . . . 

Shortly after four o'clock, about three hundred of the demon- 
strators started to parade down the dirt road and across the field, 
in a long straggling line led by two men carrying American flags. 
The marchers chanted slogans as they came and held up banners and 
placards reading Join the CIO, Republic vs. the People, and Repub- 
lic Steel Violates the Labor Act, 

Halfway across the field, their way barred by the police, the 
marchers slowed to a halt. A young man standing between the two 
flagbearers began urging some of the police ofiicials to allow the 
parade to continue. The paraders closed up, forming a crowd 
around the young man, listening intently to his words. 

Several of the demonstrators called out that they had been given 
a municipal permit to march. The police, they said, had no right to 
interfere with the parade. 

The police stirred nervously, hitching up their belts, fingering 
their riot clubs. 

An ominous tension had settled over the field. 

Suddenly, without warning, acting as if by some prearranged 
signal, a number of police drew back their arms and hurled tear 
gas bombs into the crowd. At the same instant, with terrifying un- 
expectedness, a volley of pistol shots rang out. 

Dozens of men and women among the demonstrators plunged 
to the ground. The remainder of the crowd, aghast and panic- 
stricken, scattered in headlong flight. After them charged the police, 
savagely flailing the fugitives with clubs. 

Amid the intermittent crackle of pistol shots and the screams of 
the injured, one person after another was cornered and clubbed 
to the ground. Groups of policemen stood over fallen victims ham- 
mering them with riot sticks. Men and women with blood-stained 
.faces staggered drunkenly across the field, desperately striving to 
elude the clubs of their pursuers. 

Such was the beginning of the Memorial Day massacre. 

A Reverend Charles B. Fiske who had come to the demonstration 
as an observer for a group of Chicago ministers investigating vio- 
lations of civil liberties, and who had with him a motion picture 
camera, subsequently related: 

158 



I got my camera up to my eyes and I could see where the tear gas 
was breaking out near the crowd, and I could see the people at the very 
head of the column go down, dozens and scores of them falling to the 
ground . . . 

I noticed, out of the corner of my left eye, a young fellow standing 
thirty or forty feet behind me ... He was standing still for a time 
and then he dropped. I took pictures of him lying with his face on the 
ground. I could tell he had been shot by the bloodstains on the back 
of his shirt . . . 

Very close to me, not more than forty yards away, I saw two police- 
men chasing one young fellow, who was running as fast as he could 
go, and shouting over his shoulder, "I'm going, I'm going, I'm doing 
what you told me to. I'm going as fast as I can." He . . . stumbled 
and these t^^^o policemen coming up on him simultaneously struck him 
down behind a little clump of bushes and then stood there for a 
couple of minutes slugging him. I have pictures of them standing 
over him, hitting him with their clubs five or six times after he was 
down and apparently unconscious . . . 

Another witness of the Memorial Day massacre was Mrs. Lupe 
Marshall, a social worker associated with Hull House in Chicago. 
Mrs. Marshall, who was trapped in the melee when the police 
charged the demonstrators, was clubbed to the ground and then 
flung into a patrol wagon. 

She later stated: 

When the policemen started to pick up those men that had been 
lying approximately where I had been standing when the thing started, 
they started bringing them in by their feet and hands, half dragging them 
and half picking them up. None of the men that were in the wagon 
were able to sit up. They [the police] piled them up one on top of the 
other. There were some men that had their heads underneath others. 
Some had their arms all twisted up, and their legs all twisted . . . 

Describing the nightmarish ride to the hospital, Mrs. Marshall 
related: "It was ages before we got there, and every time the patrol 
wagon jolted, these men would go up about a foot or so, and fall 
on top of each other, and there was the most terrible screaming, 
groaning and going on in that wagon . . ." 

When the patrol wagon reached the hospital, the policemen 
dragged the wounded and unconscious out of the vehicle, hauled 
them into the building by their hands and feet, and dropped them 
roughly on the floor. A detective, suddenly appearing on the scene, 
pointed toward the bodies, and shouted angrily at the pohcemen, 
"Who the hell ordered this goddam shooting?" One of the police- 

159 



men replied, "Shut your mug!" Jerking his thumb toward Mrs. 
Marshall, he added, "They're not all dead yet." 

By far the most horrifying record of the Alemorial Day Massacre 
was contained in a Paramount news reel of the entire episode. The 
film was never exhibited publicly; Paramount executives said that 
public showing might lead to "riots." 

A few days after the film was developed, it was privately shown 
to a small audience composed of Senator Robert M. La Follette Jr., 
Senator Elbert D. Thomas and a few staff members of the La 
Follette Civil Liberties Committee. 

An extraordinary account of this private showing of the film 
subsequently appeared in the St. Louis Post-Dispatch. The follow- 
ing are excerpts from the Post-Dispatch article: 

. . . suddenly, without apparent warning, there is a terrific roar of 
pistol shots, and men in the front ranks of the marchers go down like 
grass before a scythe . . . Instantly the police charge on the marchers 
with riot sticks flying . . . 

In a manner which is appallingly businesslike, groups of policemen 
close in on isolated individuals, and go to work on them with their clubs. 
In several instances, from two to four policemen are seen beating one 
man. One strikes him across the face, using his club as he would wield 
a baseball bat. Another crashes it down on the top of his head, and still 
another is whipping him across the back. 

CIO officers report that when one of the victims was delivered at an 
undertaking establishment, it was found that his brains literally had been 
beaten out, his skull crushed by blows , , . 

The account continued: 

A man shot through the back is paralyzed from the waist. Two 
policemen try to make him stand up, to get him into a patrol wagon, but 
when they let him go his legs crumple, and he falls with his face in the 
dirt, almost under the rear step of the wagon. He moves his head and 
arms but his legs are limp. He raises his head like a turtle and claws the 
ground . . . 

The article in the Post-Dispatch concluded: 

The camera shifts back to the central scene. Here and there is a 
body sprawled in what appears to be the grotesque indifference of 
death ... A policeman, somewhat disheveled, his coat open, a scowl on 
his face, approaches another who is standing in front of the camera. He 
is sweaty and tired. He says something indistinguishable. Then his face 
breaks into a sudden grin, he makes a motion of dusting off his hands, 
and strides away. The film ends. 

1 60 



Ten men were killed and scores seriously injured in the Memorial 
Day massacre. 

The massacre was justified by Chicago police officials on the 
grounds that the steel strikers' demonstration was a "Communist 
plot" to invade the Republic Steel plant and "murder" its occupants. 
According to these police officials, "two or three hundred hves'* 
were saved by the "disciplined police action." 

The following are excerpts from testimony given before the 
Senate La Follette Committee on June 30, 1937, by Captain James 
L. Mooney of the Chicago Police Force: 

SENATOR THOMAS: Then you think the disturbance on the 30th 
was a fight between the police and the Communists? 

CAPTAIN MOONEY: It was brought on over there by Red agi- 
tators . . . their real object was to get into the plant . . . They 
would have accomplished killing a lot of people in there. 

SENATOR THOMAS: Do you think that all people you call Com- 
munists want to kill people, that that is one of their objectives? 

CAPTAIN MOONEY: Not all of them, but all that I have met . . . 

Later in his testimony, Captain Mooney asked, "Could I make 
a recommendation that would clarify the mind of the Senate Com- 
mittee?" 

Senator Thomas said yes. 

"Deport every one of those Communists and all of those Reds 
out of the country," said Captain Mooney, "and then we will get 
along." 

"Where would you send them?" asked Senator Thomas. 

"Back to Russia; go over there with Lenin." 

"You actually think they were paid agents of Russia?" 

"The reason I think so, down in the fifty district some of those 
way up in the Communist Party left for Russia to get further in- 
structions." 

"Do you know what part of Russia they went to?" 

"They went to the capital." 

"Where is that?" 

Captain Mooney hesitated a moment and then replied. "Well, 
where Lenin is." 

6. The General Staff 

Once each year during the turbulent New Deal era, a small group 
of immensely powerful American milHonaires gathered with great 

161 



secrecy in Room 31 15 at 30 Rockefeller Plaza in New York City. 
The group called itself the "Special Conference Committee." 

The cryptic inscription on the door of Room 31 15 at 30 Rocke- 
feller Plaza— 'Edward S. Cowdrick, Consultant in Industrial Rela- 
tions"— offered no clue to the business that the Special Conference 
Committee conducted at this office. The Committee was not listed 
in the telephone directory; its name appeared on no letterheads; and 
all Committee minutes, records and communications were marked 
Strictly ConfidentiaL 

Edward S. Cowdrick, who was the secretary of the Special Con- 
ference Committee, never mentioned the Committee by name when 
corresponding with persons who were not among its members; 
he referred to the organization simply as "my associates" or "the 
group by which I am employed." 

The Special Conference Committee was composed of men whose 
names were legendary in industrial and financial circles throughout 
the world. 

These were some of the men attending Committee meetings or 
participating in its general activities: 

Walter S. Gifford: President of American Telephone and Telegraph 

Company 
Lamviot du Font: President of E. I. du Pont de Nemours Company 
Alfred P. Sloan, Jr.: President of the General Motors Corporation 
Harry W. Anderson: Labor Relations Director of General Motors 

Corporation 
Owe?! D. You7ig: Chairman of the Board of General Electric Com- 
pany 
Edward R. Stettinius, Jr.: Vice President of United States Steel Cor- 
poration 
F. W. Abranis: President of Standard Oil Company of New jersey 
Cyrus S. doing: Director of Industrial and Public Relations of United 

States Rubber Company 
Edgar S. Bloofu: President of Western Electric Company 
Eugene G. Grace: President of Bethlehem Steel Company 
/. M. Larkin: Vice President of Bethlehem Steel Company 
Frank A. Merrick: President of Westinghouse Electric & Manufactur- 
ing Company 
Harry E. Ward: President of Irving Trust Company 
Northrop Holbrook: Vice President of Irving Trust Company 
E. J. Thomas: General Superintendent of Goodyear Tire and Rubber 
Company 

The special interest groups represented in the Special Conference 
Committee were as follows: 
162 



Morgan Group: United States Steel Corporation (America's largest 
industrial corporation); General Electric Company; American Tele- 
phone & Telegraph Company 

Dii ¥ont Group: General Motors Corporation (America's 3rd largest 
industrial corporation); E. I. du Pont de Nemours Company 
(America's 4th largest industrial corporation); United States Rub- 
ber Company 

Rockefeller Group: Standard Oil Company of New Jersey (America's 
2nd largest industrial corporation) 

Mellon Group: Westinghouse Electric & Manufacturing Company 

Chicago Group: International Harvester Company 

Cleveland Group: Goodyear Tire and Rubber Company 

The Special Conference Committee was the secret General Staff 
which planned the strategy and tactics, and directed the major 
campaigns of the incessant war being waged during the 1930's by 
American big business against organized labor and the New Deal.* 

While the principals of the Special Conference Committee met 
only once a year, there were frequent interim meetings among their 
representatives and subordinates; and, in numerous memoranda, re- 
ports and other communications, Secretary Cowdrick kept leading 
Committee members constantly informed of all pertinent develop- 
ments on the industrial front. 

The first year of the New Deal was an especially busy one for 
the Committee. "In numbers of meetings," J. M. Larkin, vice-presi- 
dent of Bethlehem Steel and chairman of the Special Conference 
Committee, reported early in 1934, "in variety and importance of 
subjects considered, and in the multiphcity of demands made upon 
its members by their companies and their industries, 1933 established 

an all-time higrh record." 

o 

Expressing gratification with the Committee's record during this 
troubled time, Larkin stated, "The companies which by their in- 
terest and support have maintained the Special Conference Commit- 
tee .. . were in a position to call upon the experience and counsel 
of the Committee in grappling with the labor problems and per- 
plexities growing out of the recovery program." 

However, added Larkin in his report, there were still vexing 



* The Special Conference Committee had been formed in 1919 during the 
period of industrial strife following World War I; but it was not until the 
advent of the New Deal era that the Committee began to function on a 
fulltime, systematically organized basis. 

163 



problems which remained to be solved. Outstanding among these 
was the fact that, "We are facing right now a drive against the open 
shop" . . . 

During the initial stages of the Roosevelt Administration, the 
Special Conference Committee, by utilizing its vastly influential 
connections, was able to do much to shape government poHcy in 
various domestic affairs. When the U.S. Department of Com- 
merce estabhshed a Business and Advisory Planning Council in 
August, 1933, Gerard Swope, president of General Electric, and 
Walter C. Teagle, president of Standard Oil of New Jersey— both 
of whose firms were represented in the Special Conference Commit- 
tee—were named respectively chairman of the Council and chairman 
of the Council's Industrial Relations Committee. Swope and Teagle 
thereupon appointed leading members of the Special Conference 
Committee to the Industrial Relations Committee and made Ed- 
ward Cowdrick its secretary. 

In a confidential letter to W. A. Griffin, president of the 
American Telephone and Telegraph Company, Cowdrick gave this 
explanation of the status of Special Conference Committee members 
on the government agency: 

Each member is invited as an individual not as a representative of his 
company, and the name of the Special Conference Committee will not 
be used . . . The work of the new committee [the Industrial Relations 
Committee] will supplement and broaden— not supplant— that of the 
Special Conference Committee. Probably special meetings will not be 
needed since the necessary guidance for the Industrial Relation Com- 
mittee's work can be given at our regular sessions. 

But as the pro-labor poUcies of the New Deal crystallized and the 
gap widened between the Roosevelt Administration and big busi- 
ness interests, it became increasingly clear to the Special Conference 
Committee that its members could not continue to operate with 
adequate effectiveness within the Government itself. What had now 
become essential, in the opinion of the Committee, was an all-out 
drive directed both against Roosevelt and the trade union move- 
ment . . . 

Public relations experts and specialists in the field of industrial 
relations were summoned for consultation. Detailed analyses of 
pending pro-labor legislation were prepared under Cowdrick's su- 
pervision, and distributed for careful study among Committee mem- 
164 



bers. At the suggestion of Cyrus Ching of United States Rubber, 
the Committee's "informational service" was greatly expanded.* 
Maintaining its policy of operating behind the scenes, and using 
the facilities of sympathetically inclined business organizations, the 
Committee initiated an elaborate propaganda campaign against trade 
unionism and for the maintenance of the open shop. In a memoran- 
dum commenting on the organizational cooperation the Committee 
was receiving in this campaign, Cowdrick noted: 

I have had very useful contacts with individuals and organizations, 
including the National Association of Manufacturers, United States 
Chamber of Commerce, the National Automobile Chamber of Com- 
merce and the Washington offices of some of the Special Conference 
Committee companies. For the most part I have dealt through these 
acquaintances rather than directly -with government officials, as it seemed 
to me best to avoid making myself too conspicuous or doing anything to 
give the impression I am lobbying. 

The NAA4 and the U. S. Chamber of Commerce, stated Cowdrick 
in his memiorandum, were being "extremely friendly and accommo- 
dating—which is not strange in view of the fact that most of the 
Special Conference Committee companies are heavy contributors 
to both organizations" . . . 

The passage of the National Labor Relations Act, despite the 
intense efforts of the Committee to defeat the bill, created a host 
of new problems for the Committee. As the Committee's annual re- 
port of 1936 stated, after reviewing the work of the Committee 
since its formation in 19 19: 

Of all these eighteen years, none has been more difficult than 1936 . . . 
the difficulties of labor administration were increased by continued gov- 
ernmental legislation and by the aggressive pressure of union leaders . . , 

The Special Conference Committee was unusually active in 1936 . . . 

The drastically changed situation necessitated the use of new 
anti-labor tactics. One such tactic recommended in Committee 
memoranda w^as that of enlisting the support of "community" and 
vigilante groups to back up the efforts of large corporations to 
maintain the open shop. In a memorandum commenting on the 
Goodyear Rubber Company's use of this technique during a strike 
at Akron, Cowdrick wrote: 



* On August 7, 1947, Cyrus Ching was appointed by President Harry 
Truman to the post of Director of the Federal Mediation and Conciliation 
Service, with the responsibility of acting as chief arbitrator in major disputes 
between labor and management. 

165 



Sunday afternoon C. Nelson Sparks, a former Mayor of Akron, ac- 
cepted leadership of a law and order league . . . He made a radio speech 
in which he warned outside agitators to leave town. In the meantime, 
fresh pressure is being brought to bear upon the Governor to send state 
troops to preserve order. 

At the same time, the Special Conference Committee undertook 
an extensive study of various American fascist organizations, whose 
services might be employed in breaking strikes and carrying on 
other anti-labor activities. Among such groups discussed in Com- 
mittee memoranda were the Constitutional Educational League, the 
Crusaders, the Sentinels of the Republic, and the Men of America. 

On June i, 1936, Cowdrick wrote H. W. Anderson, General 
Motors Labor Relations Director and assistant to WiUiam S. Knud- 
sen, asking the GM executive for his opinion of the anti-Semitic 
and pro-Nazi Sentinels of the Republic. A few days later Ajiderson 
replied: 

With reference to your letter of June i regarding the Sentinels of the 
Republic, I have never heard of the organization. Maybe you could use 
a little Black Legion down in your country. It might help.* 

A further indication of the Committee's interest in fascist anti- 
labor techniques was contained in a Committee memorandum 
drawn up by Cowdrick at the suggestion of A. H. Young, Vice- 
President of U. S. Steel Corporation. The memorandum included 
a detailed analysis, for the consideration of Committee members, of 
an unusual piece of labor legislation. The labor legislation in ques- 
tion contained this clause: 

The leader of the enterprise makes the decision for the employees and 
laborers in all matters concerning the enterprise ... He is responsible 
for the well-being of the employees and the laborers. The employees 
and the laborers owe him faithfulness according to the principles of the 
factory community. 

In a letter to Cowdrick, A. H. Young explained that he had ob- 
tained this piece of legislation "from an officer of the German 
government." 

The law was Adolf Hitler's Act for the Organization of National 
Labor. 



* The Black Legion was a secret terrorist society which operated in Michi- 
igan, Ohio, Illinois and Indiana during the mid-1930's. Arson, bombing, torture 
and murder were among the Legion's anti-labor techniques. For a detailed 
account of the Legion's operations, see pages 204 ff. 

166 



But despite the elaborate schemings of the members of the Special 
Conference Committee, and notwithstanding their far-reaching in- 
fluence and immense resources, they were unable to stem the tidal 
wave of trade unionism surging through America's factories, mines 
and mills. 

In the six months between March and September 1937, the CIO- 
grew from 1,804,000 to 3,718,000 members. By the end of 1938, 
the total number of organized workers in the United States was 
at the all-time peak of 7,700,000. 

"In a little more than a year's existence," wrote CIO editor Len 
de Caux in Union News Service early in 1938, "the CIO has put 
about $1,000,000,000 in increased annual wages in workers' pay 
envelopes, through its organizing activities in the steel, auto, rubber 
and other previously unorganized mass-production industries— not 
to mention the resulting indirect benefits in other industries." 

Only one great industrial concern in America remained unor- 
ganized by labor. That concern was the Ford Motor Company. 



1(57 



Chapter x 

INSIDE FORD'S EMPIRE 



Ford has directly created and distributed more wealth 
than any other man since the beginning of time. None of his 
wealth and consequent employment was at the expense of 
any one or anything. 

From "Way to Wealth, ^^ an article by 
Samuel Crowther published in the Sat- 
urday Evening Post on May zy, 1930. 

Maybe we were endowed by our creator 

With certain inalienable rights including 

The right to assemble in peace and petition. . . . 

Maybe God Almighty wrote it out 

We could shoot off our mouths where we pleased 

and with what and no Thank-yous 
But try it at River Rouge with the Ford militia. 
Try it if Mister Ford's opinions are otherwise. 
Try it and see where you land with your back broken . . . 

Fro772 Land of the Free, by Archibald 
MacLeish, 



I. Man and Myth 

"We'll never recognize the United Automobile Workers or 
any other union," declared Henry Ford after all other leading auto 
manufacturers had signed contracts with the UAW. "Labor unions 
are the worst thing that ever struck the earth." 

No other American industrialist had waged so ruthlessly effective 
a fight as Henry Ford against trade unions; and the passage of 
the Wagner Labor Act had by no means diminished his determina- 
tion to see that his employees remained unorganized. Ford had long 
regarded himself as above the laws of the land. 
168 



In the three and a half decades that had elapsed since Ford 
first experimented in an empty stable in Detroit with a strange- 
looking contraption resembling a large perambulator with a motor 
in the back, the once obscure mechanic had become one of the 
richest and most powerful men in the world. 

Ford's vast private empire sprawled across six continents. Ford 
had factories and offices in China, Egypt, Argentina, Mexico, Hun- 
gary, Japan, Germany and a dozen other countries. His domain 
included oil wells in California; hundreds of thousands of acres 
of coal and timberlands in Kentucky, West Virginia and northern 
Michigan; 2,225,000 acres of rubber plantations in Para, Brazil. He 
controlled almost a quarter of the glass produced in the United 
States. He owned banks, railroads, airlines and steamship lines. 
Among the commodities produced by Ford factories were cars, 
trucks, tractors, electric locomotives, airplanes, steam turbines, gen- 
erators, steel, cement, textiles, paper. Despite his frequent fulmina- 
tions against "international financiers," Ford's own enterprises were 
closely linked with chemical, munition, steel and rubber cartels in 
Europe and Asia. 

The capital of the Ford empire was the River Rouge plant at 
Dearborn, Michigan. The largest industrial unit in the world, cover- 
ing an area of more than a thousand acres, the River Rouge plant 
was a city in itself. It contained over 100 miles of railroad tracks; 
a mile and a half of docks, capable of accommodating ocean-going 
vessels; an elaborate network of paved thoroughfares and broad 
canals. Its giant, manifold structures included office buildings, foun- 
dries, steel mills, assembly plants, press shops, a paper mill, tire, 
glass and cement plants. When operating at full speed and capacity, 
the plant employed 85,000 workers. 

By 1940, the Ford Motor Company had produced more than 
30,000,000 cars. The firm's yearly income amounted to approxi- 
mately one billion dollars. 

According to the legend that had been assiduously woven around 
the name of Henry Ford by his own highly-paid pubUcists and by 
those devotees for whom he epitomized the virtues of free enter- 
prise, the world-famed auto manufacturer was a great humanitarian, 
philanthropist and sage, motivated by a desire for the advancement 
of mankind in general and the welfare of his own employees in 
particular. Actually, the mechanical genius of the tall, spare, sHghtly 

169 



stooping multi-millionaire was coupled with intellectual sterility, 
fierce bigotry and an intense phobia for social progress.* 

In Ford factories throughout the world, the use of the most 
modern industrial techniques and the lavish care of mechanical 
equipment contrasted sharply with the backward and brutal treat- 
ment of the human beings in Ford's employ. 

Nowhere was this contrast more pronounced than at the Ford 
River Rouge plant at Dearborn, Michigan. 

When a worker passed through the carefully guarded gates to 
the River Rouge plant, it was as if he had entered an autonomous 
fascist state within America— a state which maintained, in the words 
of the National Labor Relations Board, *'a regime of terror and 
violence directed against its employees." 

If the dictator of this state was Henry Ford, its dreaded and all- 
powerful chief of secret police was Harry Herbert Bennett. 

2. -The Little Fellow 

Throughout Ford's fabulous career, strange and often sinister 
adventurers had played a major role in shaping his policies and exe- 
cuting his commands. His entourage invariably included such per- 
sonahties as Major-General Count Z. Cherep-Spirodovitch, a fanat- 
ical anti-Semite and ex-Czarist officer, who helped persuade Ford 
to finance the international distribution of the infamous Jew-baiting 
forgery. The Protocols of Zio7i; Dr. Harris Houghton, a former 
member of the United States Mihtary Intelligence, who in the early 
1920's headed the Ford Detective Service, which secretly compiled 
dossiers on prominent American liberals; Ernest Gustav Liebold, an 
enigmatic Germanophile who, while holding no executive title in 
the Ford Company, had constant access to Ford's ofKce and was 
for a time reputed to be the second most powerful in the company; 
and William J. Cameron, who, first as editor of Ford's Dearborn 
lndepende?it and later as head of the anti-democratic Anglo-Saxon 
Federation, conducted nationwide anti-Semitic propaganda cam- 
paigns. 



* It was more symbolic than paradoxical that Ford— who had done perhaps 
more than any other man of his time to revolutionize methods of industrial 
production— should surround himself with antiques, stage periodic square 
dances, sternly forbid subordinates* to smoke in his presence and, in the early 
1930's, declare that if Prohibition were repealed he would never manufacture 
another car. 

170 



But of all Ford's aides, advisors, and associates, the most sinister 
and extraordinary was Harry Herbert Bennett. 

Harry Bennett's official title was Personnel Director of the Ford 
Motor Company. When asked about his exact job, Bennett liked 
to answer, "iVle? I'm just Mr. Ford's personal man." The answer 
was deceptively modest. By the mid-thirties, many shared the view 
expressed by Look magazine that Bennett was "absolute boss of the 
company." 

"A nod from Bennett may make or break a man in the Ford 
empire," wrote Spencer R. McColloch in an article in the St. Louis 
Post Dispatch. "Major executives who antagonize him may find it 
advisible to 'resign.' Others have been known to roam the buildings 
without an office for months at a stretch in expiation for some 
breach in Bennett's discipline.'* 

In the opinion of Ford himself, Harry Bennett was capable of 
directing even larger enterprises than the Ford Motor Company. 
"Harry Bennett," asserted Ford, "should be President of the United 
States." 

Bennett's own lieutenants usually referred to him as "The Little 
Fellow." A small, tight-lipped, dapper man, who invariably wore 
a bow tie because an assailant had once almost strangled him by 
jerking his four-in-hand tie against his neck, Bennett had served 
several years in the U. S. Navy and fought for a time as a light- 
weight boxer under the name of "Sailor Reese" prior to his em- 
ployment by Ford in 191 6.* 

Tough, quick-witted and resourceful, Bennett had risen rapidly 
in the Ford organization. Given the task of forming a bodyguard to 
protect Ford's grandchildren from possible kidnapping, Bennett 
won the auto magnate's personal esteem by his efficient handling of 
the assignment. In 1926, at the age of thirty-four, Bennett was ap- 
pointed head of the Ford Service Department. 

The purported function of the Service Department was to pro- 
tect company property against theft. But its real purpose, as was 
commonly known, was to guard Henry Ford not against robbery 
but against the unionization of his employees. The Service Depart- 
ment was the anti-union and labor-espionage division of the Ford 
Motor Company. 

* According to Bennett's own various, somewhat ungrammatical accounts 
of his youth, he had been at different times a musician, painter, draftsman, 
cartoonist, football player, champion prizefighter and deep-sea diver. 

171 



Under Bennett's leadership, the Service Department expanded 
into a huge apparatus whose devious ramifications reached far be- 
yond the confines of Ford's factories. By the early 1930's, its net- 
work not only covered the cities of Dearborn and Detroit, but 
extended throughout the country, reaching into every phase of pub- 
lic and private life. Among its ubiquitous paid agents and secret 
allies were labor spies, gangsters, gunmen and ex-convicts; detec- 
tives, poHce chiefs and judges; lawyers, educators, editors and 
merchants; municipal, state and Federal officials. 

Describing the Service Department's far-reaching influence, Mal- 
colm M. Bingay of the Detroit Free Press later wrote: 

Candidates for Governor, Senate, Congress, Mayor, Common Council, 
the judiciary, trembled in fear as to whether "Bennett's gang" would be 
for or against them. Even regents of the University of Michigan waited 
word from him on the conduct of that ancient institution. 

According to conservative estimates, there were more than 3000 
Service Department agents operating in the River Rouge plant by 
1937. Most of them were spies, disguised as regular workers, jani- 
tors, sweepers and window cleaners. The operations of the Service 
Department outside the plant were subsequently described by one of 
the Department's key agents, Ralph Rimar, in these words: 

Our spy network covered Dearborn and the city of Detroit, reaching 
into the home of every worker and into the private offices of the 
highest state and city officials. Years of espionage had provided the 
Company with accumulated files of all the activities of every Ford 
employee. We also had catalogues of the private lives of public officials. 
Governors and Government men who might be of value to the Com- 
pany . . . 

My own agents reported back to me conversations in grocery stores, 
meat markets, restaurants, gambling joints, beer gardens, social groups, 
boys' clubs and even churches. Women waiting in markets to buy some- 
thing might discuss their husbands' jobs and activities; if they did, I 
soon heard what they had said. Children talked of their fathers' lives 
. . . Nick Torres, one of our Servicemen, was boxing instructor at a 
boys' club in Dearborn. His information helped me to secure the dis- 
missal of many men . . . 

Periodically, Rimar submitted to Service Department head- 
quarters lengthy lists of union members and workers suspected of 
union sympathies. In a sworn statement to National Labor Rela- 
tions Board investigators, Rimar later declared: 

Prior to 1937 and the rise of the CIO, I once estimated that I was 
responsible for the firing of close to 1500 men. During the year 1940 
172 



alone I turned in lists of over looo sympathizers, and they were all 
fired as a result of my reports. 

An intimate working relationship existed between the Ford Ser- 
vice Department and the criminal underworld. The Detroit gang 
leader, Chet LaMare, up until the time of his murder by rival 
gangsters, shared in the concession which prepared and distributed 
the lunch boxes at the River Rouge Plant. Joe Adonis, the notorious 
Brooklyn racket chief, had exclusive rights to the trucking of all 
cars at the Ford plant at Edgewater, New Jersey. Members of the 
Purple Gang, the Bloody Gang, and other Detroit and Dearborn 
gangs, frequented the River Rouge Plant, where they received 
various favors.* 

The gangsters, for their part, mobilized support for Ford-endorsed 
politicians, provided the Service Department with reinforcements 
from their own ranks, and beat and tortured active trade unionists. 
More than one labor organizer was found dead in Dearborn with 
a bullet in his back. 

Bennett made no secret of his own close acquaintanceship with 
underworld celebrities. 

"Several times," wrote Spencer McColloch of the St. Louis Post 
Dispatch after interviewing Bennett, "he alluded to friendly chats 
with Al Capone." 

Following a visit to the River Rouge Plant, J. Killgallen of the 
International News Service reported: 

Bennett admitted he has a wide acquaintanceship in the underworld. 
He said he makes it his business to know thugs and racketeers person- 
ally. 

* Houses of prostitution and gambling places in Dearborn, most of which 
were controlled by the Bloody Gang, made payments for the privilege of 
operating to the Dearborn Chief of Police, Carl A. Brooks. Chief Brooks was 
himself a secret agent of the Ford Service Department and had been placed 
on the Dearborn police force at Bennett's personal request. 

Under Brooks' protection, the vice ring in Dearborn reaped an estimated 
$500,000 a year. 

Indicted in May 1941 on charges of selling police protection to gamblers 
and brothel operators, Brooks never came to trial. He was found dead in his 
car, shortly after his indictment; he was reported to have died from a "heart 
attack." 

Inspector Charles A. Slamer, who had turned state's witness in the Brooks* 
case, was also found dead soon after the indictment. An autopsy revealed that 
Slamer had died from the effects of a drug. 



On one occasion, a gangster bearing a grudge against Bennett 
rashly took a shot at the Ford Service Chief, wounding him in the 
stomach. Soon afterwards, Bennett received in the mail a photo- 
graph of the gangster's bullet-ridden body. On the picture was 
scrawled the anonymous inscription: "He won't bother you no 
more, Harry." 

"I ain't afraid of anything," Bennett told the newspaperman, 
Spencer AlcColloch. "If I get mine— well, I'll get it, that's all." 

Even so, Bennett took few needless chances. Powerful bodyguards 
accompanied him at all times. Trusted Service Department men 
were stationed near his office in the basement of the Administration 
Building at the River Rouge Plant, and the door to the office was 
controlled by a button on Bennett's desk. Day and night, armed 
guards vigilantly patrolled Bennett's luxurious estate, "The Castle,'* 
overlooking the Huron River, and after dusk the grounds were lit 
up by an elaborate flood-lighting system. 

3. "Bennett's Pets" 

Among the feverishly active workers at the River Rouge Plant, 
there were always a number of conspicuously idle men. Muscular 
hulking fellows, with broken noses, cauUflower ears and scarred 
faces, they sauntered up and down the busy assembly lines, stood 
beside the doorways to the various shops, and hovered near the 
gates leading into the plant. They were members of the Service 
Department's strong-arm unit. Ford workers called them "Bennett's 
pets." 

The strong-arm unit of the Service Department was composed 
largely of former prize-fighters, discharged police officials, ex-con- 
victs, gangsters and gunmen. A typical member of the strong-arm 
unit, and one of Bennett's favorites, was Kid McCoy, a former box- 
ing champion who had served a term of imprisonment at San 
Quentin for murdering his wife . . . 

Bennett was in a highly advantageous position to augment the 
number of criminals on the payroll of the Ford Service Depart- 
ment. He not only had his numerous personal contacts in the crim- 
inal underworld; he also was a member of the Michigan Parole 
Board. 

These are a few of the criminals who were paroled from Michi- 
gan jails to enter the employment of the Ford iMotor Company: 

174 



MURDER, 2ND DEGREE 

James B. Soldan 
Charles Stover 

RAPE 

Anthony Cevette 
Joseph Laborn 

MANSLAUGHTER 

Tom Kaschuk 
Samuel S. Smith 

INDECENT LIBERTIES 

Herlon Carver 

GROSS INDECENCY 

Frank Gage 

FELONIOUS ASSAULT 

Melvin Campbell 
George King 
Geo. Maid, alias Mallo, 
Leo Pimpinalli 

ASSAULT TO ROB 

Arthur Fodov 
Chas. Foster 

GRAND LARCENY 

Ramon Cotter 

LARCENY 

Frank Ditzek 
Archie Forgach 
Henry Jones 
Robert Paul Lavi^son 
Harry Douglas 
Alex Guba 
Steve Paley 

FORGERY 

Louis F. Randall 

"We don't tolerate rough stuff or thugs in the Ford organiza- 
tion," Bennett once told a newspaperman visiting the River Rouge 
Plant. Pointing to a group of bulky Service Department men stand- 
ing nearby, Bennett added, "These fellows thugs? Why, it's to 
laugh! They have nice families and homes in Detroit." 

175 



ROBBERY, ARMED 

Willard Cleary 

Robert Cook 

Dennis Coughlin 

Gilbert Cunningham 

John Doe (Frank Korvcinski) 

Stanley M. Edwards 

Gerald Fahndrick 

Trevor Falkner 

Albert Gazie 

Stanley Heay 

Taft Hicks 

Kenneth Hilliard 

George Kalburn 

Peter Poppy (alias Popy) 

William Thomas 

Unice Thompson 

Marion Williams 

Leo Waller 

BURGLARY 

Ray Carney 

BREAKING AND ENTERING 

Walter Hatbowy 
Harold R. Harrison 
Jefferson D. Haskins 
William G. Crane 
Francis Dolson 
Ernest Martin 
Leo Mazzarello 
Morris Nadorozny 

EMBEZZLEMENT 
Roy D. Jones 

VIOLATION DRUG LAW 

Lorenzo Sachez 

BANK ROBBERY 
Floyd E. Drennan 



Such genteel qualities, however, were not reflected in the prac- 
tises of the strong arm unit . . . 

A typical instance of the strongarm unit's mode of operation oc- 
curred on March 26, 1937. On that day, having previously obtained 
a permit from the Dearborn City authorities, members of the 
United Automobile Workers went to distribute union leaflets at the 
gates of the River Rouge Plant. At the top of the stairway of an 
overpass leading to the plant, the union men found a group of Ford 
Servicemen barring their passage. 

"This is Ford property," said one of the Servicemen. "Get the 
helloff of here!" 

As the union men turned, they were suddenly attacked from be- 
hind by the Ford Servicemen. 

The Reverend Raymond P. Sanford, a Chicago minister who was 
acting as an observer for the Conference for the Protection of Civil 
Rights, later gave this description of the assault on Richard Frank- 
ensteen, the director of the UAW Ford Organizing Committee: 

A separate individual grabbed him by each foot, by each hand and 
his legs were spread apart and his body was twisted over to my left, and 
then other men proceeded to kick him in the crotch and groin and left 
kidney and around the head and also to gore him with their heels in the 
abdomen or the general region of his solar plexus. 

While members of the Dearborn police force stood by and 
watched, union men distributing leaflets near the overpass, and not 
on Ford property, were assaulted with equal ferocity. One of the 
UAW members, William Merriweather, was clubbed to the ground 
and stomped upon by Ford Servicemen shouting: "Kill him . . . 
Bash his face in . . . Kick his brains out . . ." Doctors who later 
examined Merriweather found that the Servicemen had broken his 
back. 

Women distributing union leaflets were also attacked. Ford Ser- 
vicemen grabbed them, twisted their arms to make them drop the 
leaflets, and beat them mercilessly. Reverend Sanford subsequently 
related: 

The girls were at a loss to know, apparently, what to do, and then 
one girl near me was kicked in the stomach and vomited at my feet, 
right at the end of the steps there, and I finally shot an imploring glance 
at one of the mounted policemen, to whom I had previously spoken, and 
he dashed over on horseback to the west side of the fence, and in a 
rather pleading tone . . . said: "You mustn't hurt those women; you 
mustn't hurt those women." ... he seemed to speak as one not having 

176 



authority in the situation and seemed to be pleading, rather, not to 
injure the women. 

Next day, Harry Bennett released a statement to the press. The 
Ford Motor Company, he said, was in no way responsible for what 
had happened. "The union men were beaten by regular Ford em- 
ployees," stated Bennett. "The employees of the Ford plant want to 
be left alone by CIO organizers so they can do their work here 
in peace . . .'* 

4. The Dallas Affair 

In the spring of 1937, Harry Bennett was informed through a 
report from one of his undercover agents that the International 
Union of the United Automobile Workers of America was about 
to launch an organizational drive among the workers at the Ford 
assembly plant at Dallas, Texas. 

The Dallas plant was one of sixteen Ford assembly plants in the 
United States.* Since the unionization of any one of them would 
establish a precedent for the others, Bennett dispatched one of his 
most dependable aides, a man named Warren Worley, to Dallas to 
help forestall the anticipated union drive. 

As soon as Worley arrived at the Dallas plant, Rudolf F. Rutland, 
general body foreman and head of the Dallas branch of the Service 
Department, summoned the key servicemen in the plant to his 
office to confer with Bennett's emissary. Worley and Rutland out- 
lined a plan of action against UAWA organizers. "We don't want 
any of them rats in the plant," declared Rutland. . . . 

"Fats" Perry, a massive thug and onetime wrestler weighing 230 
pounds, was placed in charge of a special strong-arm squad. He 
chose as his chief aides a former pugilist, "Sailor" Barto Hill, and a 
violent, sadistic ex-convict, "Buster" Bevill. The squad as a whole 
was composed of about forty criminals, gunmen and professional 
thugs. 

A large and varied arsenal of weapons, including blackjacks, 
whips, brass knuckles, steel rods and clubs, was maintained for the 
use of the strong-arm squad. "The boys got their own guns," stated 
"Fats" Perry later, "and the blackjacks, they were made in the 
maintenance department." 

* Ford motors, rear ends, body pieces and other car parts were shipped 
from Dearborn, Michigan, to these assembly plants. 



Perry also kept on hand a supply of lengths of leaded rubber 
hose which he called "persuaders." They were for use on reticent 
union men. In Perry's words: "We persuaded them to talk by 
applying the rubber to them." 

Under Perry's supervision, special cruising detachments were or- 
ganized to keep a constant watch in all parts of Dallas for any 
union activity, and to check at bus stations, train depots and hotels 
for the possible arrival of union organizers. The vigil soon extended 
to Fort Worth, Houston, Beaumont and other neighboring cities. 
"We knew if they got into those cities," explained "Buster" Bevill 
afterwards, "they'd be in Dallas next, and so we went after them." 

As soon as the cruising detachments located a union man, they 
got in touch with "Fats" Perry. Then the strong-arm squad went 
into action . . . 

On June 23, 1937, a UAWA official named Baron De Louis 
arrived in Dallas with Leonard Guempelheim, a member of the 
executive committee of the union's Kansas City Local. Even before 
they registered at the New Dallas Hotel, "Fats" Perry knew of their 
presence in town. 

Later that same day the two union representatives were eating 
lunch in a drug store when Perry and a group of his thugs strolled 
up to them. 

"You're a union organizer, aren't you?" Perry asked De Louis. 

"If you call it that," De Louis replied. "Fm trying to line some 
of the boys up." 

Without \^^arning. Perry smashed his fist into De Louis' face, 
knocking him backwards over the soda fountain. At the same time, 
the other Ford thugs attacked the two union men with fists and 
blackjacks. Breaking away, De Louis ran from the drugstore. 
Guempelheim was less fortunate. He was dragged to a nearby 
schoolyard, knocked down, kicked and repeatedly lifted to his feet 
and battered to the ground again. Finally, the beating stopped. 

"Now you get the hell out of town," Perry told Guempelheim, 
"and take that other CIO son-of-a-bitch with you and never come 
back to Dallas." 

His face covered with blood and several of his ribs broken, 
Guempelheim staggered down the street and made his way back to 
the New Dallas Hotel. 

The brutal assault, which had been witnessed by a number of 

178 



bystanders, was promptly reported to the Dallas Police Department. 
No arrests were made . . . 

To guard against possible infiltration of the Dallas plant by 
union organizers, every applicant for a job was carefully questioned. 
Those suspected of "union leanings" were given the "third-degree" 
by the strong-arm squad. "We would whip them," Perry later 
related, "some with fists, some with blackjacks, some with lashes 
made out of windshield cord." 

If workers were so badly injured that the local authorities had to 
make inquiries, members of the strong-arm squad temporarily left 
Dallas. As Perry put it: "When things got too hot for the boys, 
they beat it out of town for a while." Traveling expenses for these 
hasty trips were ordinarily advanced by the Ford office. 

As these expenses mounted, and there was also the occasional 
necessity of paying fines and fees to bondsmen and attorneys, the 
Dallas Service Department chief, Rudolf Rutland, declared to have 
the workers in the plant help defray the costs. A glass jar was placed 
every pay-day on a stand which workers had to pass after receiving 
their pay checks. Members of the strong-arm squad stood nearby 
and told the workers to "hit the jar." After each pay-day's collec- 
tion, Perry took the jar to the office of W. A. Abbott, the plant 
superintendent. The money was turned over to Abbott's secretary, 
Leon Armstrong, who had opened in his own name a special 
account for the "fighting fund" at the Grand Avenue State Bank 
of Dallas . . . 

On August 7, 1937, Rutland received a telephone call from the 
Dallas Police Department advising him that an official of the 
United Hatters, Cap and Millinery Workers International Union 
named George Baer had arrived in Dallas for the purpose of or- 
ganizing the millinery workers in the city. The poHce inspector 
recommended that "Perry's boys go after him." 

Two days later, Baer was kidnapped by some of "Fats" Perry's 
men and taken to the Sportatorium, a stadium on the outskirts of 
the city. 

Shortly afterwards, the Ford thugs telephoned "Fats" Perry from 
the stadium. "You better come down and look at Baer," Perry was 
told. "He's in pretty bad shape." 

Together with "Buster" Bevill, Perry drove to the Sportatorium. 
The car containing Baer and his captors was parked in back of the 
stadium. Baer was lying on the floor. Blood covered his disfigured 

179 



face. His nose was smashed and most of his teeth had been knocked 
out. One eye was hanging from its socket. 

"Well, you better get rid of him," said Perry. "You better put him 
somewhere." 

"Buster" Bevill pulled Baer out of the car and let him fall on the 
ground. "Let's take the son-of-a-bitch," said Bevill, "and throw him 
in the river." 

The Ford thugs put Baer back in the car, drove along the high- 
way for a few miles and threw him out into a field. 

As the strong-arm squad was driving back to Dallas, Bevill said, 
"We better call the McKamy Cambell Funeral Home and have them 
pick him up." 

But despite the fearful punishment he had received, George Baer 
did not die. In a semi-conscious state, he crawled out to the high- 
way, was picked up by a passing motorist and taken to a hospital. 
Ten days later, Baer was well enough to leave the hospital. He was, 
however, totally blind in one eye. 

Within six months after the arrival at the Dallas plant of Bennett's 
aide, Warren Worley, approximately fifty union members, "sus- 
pects" and organizers had been assaulted by "Fats" Perry's strong-arm 
squad on the streets of Dallas, or kidnapped and taken to the out- 
skirts of the city, where they were flogged, blackjacked, tarred and 
feathered, and tortured. A mood of suspicion and fear permeated 
the plant. Not knowing who might be a company spy, the workers 
were now afraid even to mention the subject of unions. The 
UAWA efforts to organize the Dallas plant were at a standstill. 

An expression of the management's satisfaction with the anti- 
union drive was contained in a letter sent by the Plant Superin- 
tendent, W. A. Abbott, to "Fats" Perry, the day before Christmas, 
on December 24, 1937. The letter read: 

Dear "Fats": 
"RING OUT THE OLD, RING IN THE NEW" 

That statement covers a lot of territory, and it means that you per- 
sonally have taken many steps, so to speak, since last December 25th. 

For your various steps toward better cooperation, a better under- 
standing among your coworkers, and the best organization in the com- 
pany, I wish to express sincere appreciation from the writer and from 
the Company. 

I know that you have on many occasions tackled problems that 

180 



seemed difficult to solve— but you made the grade. Though you may not 
have realized it, your efforts and ability to carry on enabled the Dallas 
Branch to pass another milestone and hang up the sign "PRODUCTION 
NOT INTERRUPTED." That too covers a lot of territory. 

I thank you for your genuine loyalty to the Company and for your 
individual accomplishments to maintain harmony and efficiency . . . You 
kept the Dallas Branch ahead another year, in more v^ays than one. 
LET'S CARRY ON. 

With best regards, and the Season's Greetings, I am. 
Sincerely yours, 

s/ W. A. Abbott, 
Superintendent. 

Early in 1940, after many months of preliminary investigation 
and painstaking collation of evidence, the National Labor Relations 
Board charged the Ford Motor Company with violation of the 
Wagner Labor Act at its Dallas plant. 

At an extraordinary Board hearing held in Dallas from February 
26 to March 28, 1940 there unfolded the whole appalHng story of 
the anti-union campaign waged by the Ford Management at the 
Dallas plant. Among the numerous witnesses who testified concern- 
ing the machinations of the Ford espionage apparatus and the grue- 
some operations of Perry's strong-arm squad were former company 
spies, ex-members of the strong-arm squad, and union organizers and 
*'suspects" who had been beaten and tortured by the Ford thugs. 
The total testimony filled 4,258 closely-typed pages. 

The most comprehensive and damning testimony against the Ford 
Company came from "Fats" Perry himself, who had turned state's 
evidence and who described in full detail his activities as head of the 
strong-arm squad. Here is an excerpt from Perry's testimony re- 
lating how "union suspects" were "taken for a ride": 

Q. What would you do then? 

A. Well, the first thing we would do, we would search them and find 
out if they had any identification belonging to a union of any 
kind, or where they were from, or what they belonged to, and 
give them a good talk, and worked over some of them, ones that 
we had under suspicion of being a union man or if they had cards 
on them. 

Q. What do you mean "gave them a working over".? 

A. We would whip them, beat them up. 

Q. With what? 

A. Put the fear of God in them as they call it. 

Q. What would you whip them with? 

181 



A. Some with fists, some with blackjacks. 

Q. Anything else? 

A. One or two of them we whipped with a regular whip we had 
made out of rubber wind cord and some of them— one of them 
was whipped according to whether we thought he could take it 
or not with brushes off of trees, limbs. 

Through such beatings, it was revealed at the hearing, Ford thugs 
had crippled thirty-five men, blinded one, and mutilated and seri- 
ously injured dozens of others. 

One of the most shocking revelations at the hearing came during 
the testimony of Archie C. Lewis, a salesman of fire-fighting equip- 
ment in Dallas, whose outspoken pro-union views had incurred the 
enmity of members of the Ford Service Department. Lewis related 
how Ford thugs, mistaking his twin brother for himself, had brutally- 
attacked his brother, beating 'him unconscious with blackjack blows 
on the head and kicks in the stomach. After the beating, his 
brother hovered between Hfe and death for several months. Shortly 
before he finally died, he told Archie Lewis: "You know they killed 
me, mistaking me for you." 

Ford attorneys offered a singular defense. They introduced wit- 
nesses who solemnly declared that the Ford workers "feared" union 
organizers were going to "invade" the Dallas plant, and had there- 
fore organized gangs to "protect" themselves. 

The Ford counsel, Neth L. Leachman, summed up this line of 
defense with the statement: "The things these people were protect- 
ing was their lunch baskets and they did not want to be molested in 
their happy conditions." 

The evidence against Ford was overwhelming. 

"No case within the history of this board," stated Trial Ex- 
aminer Robert Denham in his report, "is known to the undersigned 
in which an employer had deliberately called and carried into 
execution a program of brutal beatings, whippings and other mani- 
festations of physical violence comparable to that shown by the 
uncontradicted and wholly credible evidence on which the findings 
are based." 

The Board found the Ford Motor Company guilty of flagrant 
violations of the Wagner Labor Act, and ordered the company to 
cease these practices and to rehire those employees who 'had been 
discharged because of their union activities. 
182 



It was the eleventh decision of the National Labor Relations 
Board against the Ford Motor Company.* 

5. Boring From Within 

Notwithstanding the virtual impunity with which Ford con- 
tinued to violate the Wagner Labor Act, a serious challenge had 
arisen to the auto magnate's despotic rule over the workers in his 
factories. The challenge came from the United Automobile 
Workers Union. 

Following the victorious sit-down strikes of 1937, the UAW had 
grown with phenomenal rapidity. As some 400,000 auto workers 
poured into its ranks within a matter of months, the UAW became 
the third largest union in the CIO. 

Aware of the wage increases and improved working conditions 
won in auto plants organized by the UAW, Ford workers began 
growing increasingly restive . . . 

Harry Bennett was quick to recognize the gravity of the situa- 
tion. When it came to handling an adversary as powerful as the 
UAW had suddenly become, Bennett's past methods were clearly 
outdated. Effective as violence, terror and intimidation had previ- 
ously been, their future value had obvious limitations . . . 

As Bennett saw it, since the UAW had apparently come to stay 
and since the union would undoubtedly make inroads among Ford 
employees, certain basic revisions were necessary in Ford's labor 
policy. Bennett decided not only to permit but to encourage the 
formation of a union at River Rouge— with this single qualification: 

* Other NLRB hearings had been held in connection with the company's 
anti-labor operations at River Rouge and Ford branch plants, located in 
Chicago, Buffalo, St. Louis, Kansas City, Somerville (Mass.), and Richmond 
and Long Beach, California. 

In all of these cases, the American public was kept largely unaware of the 
sensational findings by the NLRB. The Dallas hearing, for example, was 
covered by only one major newspaper, the New York Times. Otherwise, with 
the exception of the lefuving and labor press, the extraordinary revelations 
at the hearing were almost entirely suppressed by the nation's press. 

When the author of this book was collecting material for a series of articles 
on Ford in 1939, which were subsequently published in Friday magazine, he 
learned that a considerable amount of Ford data uncovered by Dallas reporters 
had never been printed by their newspapers but had, instead, been filed away 
in the newspaper "morgues." Among such material, which the author man- 
aged to obtain, were photographs of trade unionists after they had been beaten 
and tortured by "Fats" Perry's strong-arm squad. 

183 



the leaders of the union would be secret agents of Bennett's Service 
Department and the union itself would be completely under his 
domination . . . 

Well aware that his own overt sponsorship of any union would 
be a sure way to keep Ford workers from joining, Bennett enlisted 
the assistance of an old friend, with unusual promotional facilities at 
his disposal. The friend was Father Charles E. Coughlin.* 

* The relationship between Harry Bennett and Father Coughlin was only- 
one instance of a close alliance that had existed for many years between the 
Ford Motor Company and fascist elements not only in the United States but 
throughout the world. 

Shortly after World War I, Henry Ford's name had been connected with 
the rapidly growing Nazi movement in Europe. According to the February 
8, 1923, edition of the New York Times, Vice-President Auer of the Bavarian 
Diet had publicly declared, "The Bavarian Diet has long had information that 
the Hitler movement was partly financed by an American anti-Semitic chief, 
who is Henry Ford. . . . Herr Hitler openly boasts of Mr. Ford's support and 
praises Mr. Ford not as a great individualist but as a great anti-Semite." 

In March 1923 Adolf Hitler declared: "We look on Heinrich Ford as the 
leader of the growing Fascisti movement in America. We admire particularly 
his anti-Jewish policy which is the Bavarian Fascisti platform. We have just 
had his anti-Jewish articles translated and published. The book is being cur- 
rently circulated to millions throughout Germany." 

A number of German agents who came to America during the 1920's and 
1930's to build a Nazi fifth column in the United States were in close touch 
with the Ford Motor Company. Heinz Spanknoebel, the Nazi agent who 
founded the Friends of New Germany, and Fritz Kuhn, the Nazi agent who 
organized the German-American Bund, were both on the payroll of the Ford 
Motor Company while they were openly carrying on their Nazi organizational 
activity. 

Up to, and even after, the outbreak of the World War II, Ford plants 
throughout the world were centers of fascist intrigue. The managers and 
officials of Ford's factories in Germany, Austria and Hungary cooperated 
closely with the Nazi Party. Gaston Bergery, Ford's personal and business 
representative in Paris, was one of the key Nazi agents in France and was 
described by the New York Sunday Times of August 11, 1940, as the "coming 
man" in Hitler's schemes for the Nazification of France. Julio Brunet, General 
Manager of the Ford Motor Company in Mexico City, was associated with 
the Nazi-supported General Nicholas Rodriguez, organizer of the Fascist 
Gold Shirts, who sought to overthrow the Cardenas Government m 1936. 
Lord Perry, head of the Ford Motor Company, Ltd., of England, which until 
1934 controlled Fordwerke, A.G., in Germany, was on intimate terms with 
members of the notorious pro-Nazi Link organization. 

In August 1938 Henry Ford became the first American to be awarded the 
Grand Cross of the German Eagle by the Government of Nazi Germany . . . 

Pro-fascist groups and individuals in the United States were in constant 
touch with the Ford Motor Company. 

John Koos, a close associate of Harry Bennett's at the Ford River Rouge 
Plant, was a leading spokesman for the American branch of the fascist 
Ukrainian Hetman Society, which had its headquarters in Berlin. On Septem- 

.84 



Late in 1937, the formation of the Workers Council for Social 
Justice, Inc., an "independent body" to "organize and benefit" Ford 
employees, was publicly announced. A series of articles, urging 
Ford workers to join the Council, started appearing in CoughUn's 
Social Justice, and the publication was distributed in mass quantities 
throughout the River Rouge Plant by Ford foremen and Service 
Department agents. "Bennett bought about 30,000 copies a week," 
the Service Department agent, Ralph Rimar, subsequently related. 
"This sort of helped Coughlin in a financial way too." 

Even so, only a handful of Ford workers joined the Council. The 
vast majority wanted nothing to do with any movement with which 
Coughlin's name was connected. 

After Uvo more abortive attempts to estabHsh an effective com- 
pany union among the workers at River Rouge, Bennett embarked 
upon his boldest and most ambitious undertaking in the field of 
trade unionism. The grandiose aim of Bennett's new scheme was to 
capture control of the United Automobile Workers Union. 

Since 1936, the UAW president had been an egoistic, youthful 
former college track star and ex-Baptist minister named Homer 
Martin. An impassioned orator of the revivalist school, who had 



her 30, 1938, Koos sent a congratulatory cable to Adolf Hider praising him 
for his "history-making efforts in the adjustment of minority rights." 

Parker Sage, the head of the fascist National Workers League in Detroit, 
which was partly financed with funds received from the Nazi spy Dr. Fred 
Thomas, held meetings on Dearborn property, was permitted to recruit 
members for his organization in the River Rouge Plant, and referred to Henry 
Ford as "the greatest living American" who "knows that the Jews got us into 
this war." 

The top man in the Michigan Ku Klux Klan, Charles E. Spare, worked for 
a "detective agency" which subsisted by providing labor spies for the Ford 
Service Department. 

Harry Bennett periodically made sizeable financial contributions to Gerald 
L. K. Smith, ex-Silver Shirter No. 3223 and head of the fascist America First 
Party. Smith's confidential adviser William E. Nowell, was a Ford man. . . . 

Late in 1943, the author of this book wrote an article disclosing these and 
other facts about the relationship existing between the Ford Motor Company 
and fifth column elements in the United States. The author sent documenta- 
tion of this material to the Attorney General and suggested he verify these 
facts by sending an agent of the Department of Justice to interview Harry 
Bennett. 

Shordy afterwards, John S. Bugas, director of FBI operations in the Mich- 
igan area, went to the River Rouge Plant— although not exactly in the manner 
this author had recommended. Bugas resigned from his job with the FBI 
and went onto the Ford payroll as an assistant to Harry Bennett. In 1946, 
Bugas became Ford vice-president in charge of labor relations. 

185 



won a large mass following during the chaotic days of the sit-down 
strikes, Martin deeply resented any questioning of his autocratic 
decisions and accused critical UAW officials of being "Reds" 
secretly plotting against his leadership. 

Bennett arranged for a private conference with Homer Martin. 
Henry Ford, Bennett told the union chief, was now willing to have 
his workers organized but he still had one serious objection against 
Martin's union— Ford wanted all "Commies" out of the union 
leadership . . . 

The head of the Ford Service Department and the UAW presi- 
dent began meeting with increasing frequency. Describing these 
negotiations, the Service Department agent Ralph Rimar subse- 
quently related: 

. . . Bennett handled Martin with kid gloves. Martin was having a 
tough time with the union. The bunch opposing him was getting 
stronger. He needed dough. Bennett said he'd like to help— for the "good 
of the union." Homer swallowed the bait. The money was to be con- 
sidered as a loan. It was to be paid back as soon as Martin got things 
straightened out in the union ... I don't know how much he got in all, 
but I was told that an account was opened in Martin's name on a New 
York bank and that the first two checks drawn were for $10,000 and 
$15,000 . . . 

Meanwhile, Bennett's agents in the UAW were instructed to use 
the rift in the leadership as means of promoting dissension through- 
out the union. "We were told to split the union into two camps," 
Ralph Rimar later revealed. "We were also told to spread the word 
that the bunch opposing Martin were Reds . . ." 

By the fall of 1938 the UAW was torn by bitter factional strife. 
Acrimonious charges and counter-charges filled the pages of UAW 
publications. Violent arguments, and not infrequently fistfights, dis- 
rupted one union meeting after another. 

"Here these guys have been talking about organizing Ford, and 
now they're knocking one another off!" Bennett exultantly told one 
of his Service Department aides. "The whole damn union's falling 
apart! Is that a hot one.^" 

But Bennett's elation was premature. Resentment against Martin's 
dictatorial conduct was rapidly mounting among the UAW rank- 
and-file. When Martin summarily suspended five members of the 
UAW Executive Board, widespread indignation within the union 
186 



forced him to reinstate them. Soon afterwards, Martin suspended 
fifteen Board members. The fifteen union officials, who comprised 
the majority of the Board, promptly issued a statement to the effect 
that Martin no longer represented the union membership and that 
they were suspending him from the presidency of the union . . . 

Alarmed at this unexpected turn of events, Bennett hurriedly 
called a press conference and announced that the Ford Company 
was entering into union negotiations with Martin. Following a 
widely publicized meeting between Bennett and Martin, newspapers 
proclaimed that complete agreement had been reached between the 
Ford Motor Company and "Homer Martin, President of the United 
Automobile Workers Union," 

But far from being favorably impressed by the hasty agreement, 
the vast majority of the UAW membership regarded it as conclusive 
proof of collusion between Martin and the hated chief of the Ford 
Service Department. An angry demand for the expulsion of Martin 
swept through the UAW. 

In January 1939, the UAW Executive Board expelled Martin 
from membership in the union. 

It was the end of Homer Martin's brief, stormy career as a trade 
union leader. Not long afterwards, the former UAW president 
moved his headquarters to the River Rouge Plant* 

6. Final Drive 

With Homer Martin's disruptive influence eliminated, and with 
R. J. Thomas as the new UAW president, the union began inten- 
sive preparations for an all-out drive to organize the River Rouge 
Plant. A special Ford Organizing Committee was set up. The Execu- 
tive Board of the CIO and the UAW each allocated $50,000 to the 
campaign fund. 

By the fall of 1940, the drive was well under way. 

So enthusiastic was the response of the Ford workers to the 
campaign that Bennett himself soon admitted in a newspaper inter- 
view that an NLRB election at River Rouge would proba'bly result 
in a victory for the UAW. If this occurred, added Bennett, he 
would meet with representatives of the union and "bargain until 
hell freezes over and give the union nothing." 

Using every possible device to forestall the NLRB election, 

187 



Bennett ordered the wholesale firing of UAW members at the River 
Rouge Plant; but this measure only served to intensify the rebelUous 
spirit mounting among Ford workers . . . 

On April i, 1941, the revolt in the Ford empire reached its 
climax. Late in the afternoon, in protest against the dismissal of the 
members of their UAW bargaining committee, 10,000 workers in 
the rolling mill at the River Rouge Plant left their machines. As 
word of the work-stoppage spread through the great plant, workers 
poured out of the pressed steel, tool and die, open hearth, and motor 
buildings. In a great tide, tens of thousands of workers streamed 
through the plant gates. By midnight, every building at River Rouge 
had ceased to operate. 

Daybreak found an extraordiary spectacle at River Rouge. All 
roads leading to the plant were being picketed, and blockades of 
cars backed up the picket Hnes. Thousands of Ford workers on 
the morning shift, who had not yet been ink)rmed of the strike, 
were arriving by streetcar, bus and automobile. For miles, the 
highways were clogged with densely packed vehicles. 

Within a few hours, there was an enormous picket line reaching 
all the way around the huge plant. Marching four abreast, waving 
hastily constructed placards, singing and shouting slogans, the 
pickets soon numbered more than 10,000 men. 

For the first time in its thirty-five years of existence, the Ford 
Motor Company was shut down by a strike. 

In a statement to the press, Harry Bennett declared that under no 
circumstances would he or any other Ford executive meet to discuss 
terms with representatives of the UAW. "It's all a Communist plot," 
he said, "and is a move to create a revolutionary situation so that 
the Communists can have the conditions necessary for the setting 
up of a dictatorship of the proletariat." 

During the next twenty-four hours, Bennett embarked on a 
desperate scheme to break the strike. With the aim of fomenting 
race riots at the River Rouge Plant and discrediting the strike in 
the eyes of the public, Bennett began smuggHng Negro strike- 
breakers into the plant. They were encouraged to manufacture 
knives and other murderous weapons in the shops of the plant. 
Then, Service Department agents began agitating the strikebreakers 
to attack white workers on the picket lines. 
188 



A tragic catastrophe was averted only by quick, far-sighted action 
on the part of the UAW leadership and the Negro community in 
Detroit. Instructions were issued to all pickets not to be provoked 
into fighting with the strikebreakers. Prominent Negro citizens hur- 
ried to River Rouge and, addressing the strikebreakers through 
loudspeakers in UAW sound cars, exhorted them to leave the plant. 
Thousands of Negro workers marching on the picket lines urged 
the strikebreakers to come out and join them. 

Gradually, the strikebreakers straggled out . . . 

The River Rouge Plant was Hke a deserted city. Its huge buildings 
stood silent and empty. Not a railroad car moved on the miles of 
track. Ford ships lay idle at their docks. 

Hourly, the gigantic human chain encircling the six square miles 
of the River Rouge Plant grew in numbers. Workers from General 
Motors, Chrysler and other auto plants in the Detroit area came, 
after working hours, to take their places on the picket lines. By the 
third day of the strike, a total of 35,000 men and women, operating 
in three shifts, were picketing the plant. 

On April 4, the Ford Company announced it was closing down 
its sixteen assembly plants throughout the country, because of parts 
shortages caused by the strike at the River Rouge Plant. Eighteen 
other Ford plants simultaneously ceased operations. 

On April 8, with all hope of breaking the strike ended, Harry 
Bennett entered into negotiations with CIO President Philip Murray 
and the UAW leaders. 

Three days later, after lengthy parleys between Ford executives 
and union officials, the Ford Motor Company agreed to bring its 
wages into line with those of other major automobile manufacturers, 
to recognize the UAW as the spokesman for its members in Ford 
employ, and to permit the holding of an NLRB election. 

On June 21, after the union had won a resounding victory in an 
NLRB election at the River Rouge Plant, the Ford Motor Company 
signed a contract with the United Auto Workers. 

The settlement of the prolonged and bitter conflict at America's 
largest defense plant came none too soon. 
Five and a half months later, the United States was at war. 



189 



Chapter xi 

DANGEROUS AMERICANS 



There are also American citizens, many of them in high 
places, who, unwittingly in most cases, are aiding these 
[Axis] agents. 

President Franklin D. Roosevelt, 
December 2g, 1940. 

In the United States we have many of our compatriots 
and even more friends among the citizens of the United 
States who are favorably disposed toward us. Many of the 
latter hold important positions in political and economic life. 

From a speech delivered in Berlin in 
ip^o by Reichsminister R, Walter Darre. 



I. Secret Offensive 

The Axis war against America did not begin on December 7, 1941, 
with the Japanese attack on Pearl Harbor. The momentous events 
of that morning climaxed a secret war that the German, Japanese 
and Italian General Staffs had been waging against the United States 
for almost a decade. The major battles of this undeclared war were 
fought on American soil. 

During the 1930's a huge fifth column apparatus of Axis-inspired 
organizations, pro-Nazi propaganda centers, military-espionage and 
racist terrorist cells, ramified through every phase of American 
hfe. When Hitler's mechanized legions swept into Poland on Sep- 
tember I, 1939, and launched the Second World War, there were 
already more than 700 fascist organizations operating in the United 
States. 

These were a few of the openly pro-Axis or native fascist organ- 
izations which functioned in America during 1933-41: 
190 



American Desdny Party Italian Fascist Clubs 

American Guards Japanese Imperial Comradeship 

American White Guards League 

Ausland-Organization der Japanese Military Servicemen's 

N.S.D.A.P. (Overseas Branch of League 

the Nazi Party) Ku Klux Klan 
A.V. Jugendschaft (Hitler Youth) Kyffhaeuser Bund (German Vet- 
Black Dragon League erans League) 
Black Legion National Copperheads 
Blackshirts National Workers League 
Christian Front ODWU (Organization for the 
Christian Mobilizers Rebirth of the Ukraine) 
Deutscher Krieger Bund von Ordnungsdienst (Order Service— 

Nord-A?nerika (German Sol- Storm Troops) 

diers League of North America) Patriots of the Republic 

Ethiopian-Pacific League Russian Fascist National Revolu- 

Falangists tionary Party 

German-American Bund Silver Shirts 

Gray Shirts Social Justice Clubs 

Hetman Stahlhehn (Steel Helmets) 

Hindenburg Youth Association White Russian Fascists 

Cooperating with or directly supervised by the Axis Propaganda 
Ministries and Military Intelligence Agencies, such organizations 
flooded America with anti-democratic and anti-labor publications, 
openly fomented racial antagonisms, denounced the Roosevelt Ad- 
ministration, or called for the establishment of a fascist regime in 
America. At mass rallies and clandestine conferences, on the radio 
and by mail, in industrial centers and small towns, in factories, 
farms, schools, chnirches and army training posts, the fifth column 
network conducted ceaseless hostilities against the American nation. 

The major objectives of the fascist fifth column were these: to 
disrupt and disunite the American -people; to undermine public con- 
fidence in Roosevelt; to convince Americans they were menaced not 
by Fascism but by Communism; to hamstring U.S. defense prep- 
arations; and to isolate America from its anti-fascist allies abroad. 

Extraordinarily enough, the fascist fifth columnists were allowed 
to pursue these pernicious aims in America, with practically no 
interference whatsoever from the Department of Justice and the 
Federal Bureau of Investigation. 

And, from the beginning, the machinations of the fifth column- 
ists were directly aided by some of the wealthiest and most power- 
ful men in the United States.* 



The organization most vividly exemplifying the amazing impunity with 

191 



"It becomes more apparent every day that there is a sinister 
movement in this country that seeks to super-impose on our free 
American institutions a system of hateful fascism," declared Secre- 
tary of Interior Harold L. Ickes in a speech at Altoona, Pennsyl- 

which the Axis fifth column was permitted to operate in the United States 
was the German-American Bund, which functioned under the command of 
Nazi agents trained at Dr. Goebbel's Propaganda Ministry and German Mili- 
tary Intelligence espionage -sabotage schools. 

By the time of the outbreak of the Second World War in Europe, seventy- 
one branches of the German-American Bund were active in key cities through- 
out the United States; four official Bund newspapers were being issued in 
New York, Chicago, Philadelphia and Los Angeles; and the Bund membership 
and that of its affiliates was estimated at 200,000. Thousands of goosestepping, 
brown-shirted Bund Storm Troops, complete with swastika armbands and 
rubber truncheons, were staging public Nazi demonstrations in American 
cities and openly heiling Hider. 

Bund members, all of whom had to take an oath of allegiance to Hitler and 
Nazi Germany, held jobs in vital defense plants, on railroads and steamship 
lines, and in every major industry, and moved in large numbers into the 
U. S. Army . . . 

From the outset, the German-American Bund served as a recruiting agency 
for the German Military Intelligence, and enlisted and trained spies and 
saboteurs. Almost every major spy trial in the United States during the Second 
World War involved Bund members. Figures issued by the Federal Bureau 
of Investigation revealed that during 1940-41 the Bund was responsible for 
smuggling into the United States and protecting "at least 200 key Nazi agents." 

Most astounding of all was the fact that the Bund's army of trained Nazi 
spies and propagandists continued to operate unmolested on American soil 
for seven months after Nazi Germany had formally declared war on the 
United States. Not until July 1942 did U. S. authorities finally get around 
to arresting twenty-nine of the top Bund leaders and begin rounding up other 
Bundists on charges of conspiring to obstruct the Selective Service Act. Only 
a few hundred of the many thousands of active Bundists were arrested and 
imprisoned or interned for the duration of the war. Officially disbanded in the 
summer of 1942, the Bund continued to operate during the war years through 
affiliate societies and various other channels. 

The only possible explanation for the amazingly temperate attitude of the 
Justice Department and the FBI toward the German-American Bund was the 
fact that these Government agencies were traditionally far less concerned 
about fascist machinations than about labor, progressive and left-wing acdvities 
in the United States. Moreover, much of the Bund's program-such as its 
"anti-Communist" and anti-labor agitation-was not exactly sharply divergent 
from the general orientation of the Justice Department and the FBI. 

In this respect, the Bund was not an exceptional case. Leniency toward 
fascist conspiratorial operations in America has been a consistent policy with 
the Justice Department and FBI. When editor of The Hour, the author of 
this book repeatedly called to the FBI's attention cases of Axis and native 
fascist intrigue in America, and was almost invariably unable to effect action 
by the FBI. 

192 



vania, in 1935. "This group is composed of, or at least lias the active 
support of, those who have grown tremendously rich and powerful 
through the exploitation not only of natural resources, but of men, 
women and children of America. Having stopped at nothing to ac- 
quire the wealth that they possess, they will stop at nothing to hold 
onto that wealth and add to it." 
Secretary Ickes added: 

Stimulating us to a patriotic fervor by pretending that a Communist 
uprising threatens in this country, these gentry are attempting to line 
us up in support of a facist coup d'etat. 

In the movement to which Ickes referred, a leading role was 
being played by an organization headed by a group of Americans 
outstanding industrialists and financiers. The organization was 
called, rather euphemistically, the American Liberty League . . . 

In August 1934, the American Liberty League had been officially 
incorporated with the proclaimed intention "to combat radicalism," 
and "defend and uphold the Constitution of the United States." 

The dominant influence in the Liberty League came from 
du Pont-Morgan interests. On the League's national executive com- 
mittee and advisory council sat Pierre S. du Pont, Irenee du Pont, 
and John J. Raskob, respectively Chairman of the board. Vice- 
chairman of the board and Vice-President of E. I. du Pont de 
Nemours & Co. 

Among the other members of the national executive or advisory 
council were: 

John W. Davis, former presidential candidate, counsel for the House 
of Morgan, director in Morgan's Guaranty Trust Company and of 
the Morgan-dominated American Telephone and Telegraph Com- 
pany 

Sewell L. Avery, president and chairman of the board of the Morgan- 
controlled Montgomery Ward & Co. 

Alfred P. Sloan, chairman of the board of General Motors Corp. 

Williain S. Knudsen, president of General Motors Corp. 

Cornelius F. Kelley, president of the Anaconda Copper Co. 

Colby M. Chester, chairman of the National Association of Manufac- 
turers and of the board of General Foods Corp. 

Ernest. T. Weir, chairman of the board of National Steel Corp. and 
president of Midwest Steel Corp. 

Alvan Macauley, president of Packard Motor Car Co. 

Herbert L. Pratt, chairman of the board of Socony- Vacuum Co. 

193 



In a lavishly financed promotional campaign, the Liberty League 
was presented to the American public as a patriotic society dedi- 
cated to championing "the rights of the American citizen." The 
extent to which the League actually reflected the interests of 
average Americans was indicated in a United Press dispatch on 
January 9, 1935, which read in part: 

The American Liberty League, a non-partisan society created to op- 
pose "radical" movements in the national government, was shown today 
to be under control of a group representing industrial and financial or- 
ganizations possessing assets of more than $37,000,000,000. 

League directors were shown to have affiliations with such organiza- 
tions as the United States Steel Corp., General Motors, Standard Oil Co., 
Chase National Bank, Goodyear Tire and Rubber Co., Baltimore and 
Ohio Railroad, the Mutual Life Insurance Co. and scores of others. 

The writer Herbert Harris had this to say about the underlying 
aims of the American Liberty League: 

. . . the only liberty the League fosters is the liberty to water stock, rig 
the market, manipulate paper, and pyramid holding companies to the 
stratosphere ... It is the liberty to pay starvation wages and break 
strikes with hired thugs ... It is the liberty to warp the minds and 
bodies of children in textile mills and on "share-cropping" farms. It is 
the liberty to buy opinions of the pulpit and the press. It is the liberty 
which leads to death. 

While pubUcly proclaiming the Liberty League's concern for the 
nation's welfare, the leaders of the League were privately spending 
huge sums in an intensive effort to discredit the Roosevelt Admin- 
istration, impugn New Deal social reforms, and incite hostility 
against the organized labor movement. To help promote these aims, 
League members created or subsidized a number of anti-democratic 
auxiharies. These were the names of some of them: 

American Federation of Utility National Economy League 

Investors New York State Economic Coun- 

American Taxpayers League cil 

Crusaders Sentinels of the Republic 

Farmers Independence Council Southern Committee to Uphold 

League for Industrial Rights the Constitution 

Minute Men and Women of To- Women Investors in America, Inc. 
day 

On April 18, 1936, the New York Post reported: 

The brood of anti-New Deal organizations spawned by the Liberty 
League are in turn spawning fascism. 

194 



One of the first fascistic organizations to be formed under 
Liberty League sponsorship was the Southern Committee to Uphold 
the Constitution.* 

The Southern Committee concentrated on two main objectives: 
spUtting the Democratic vote of the South away from Roosevelt; 
and stirring up anti-Negro sentiment, to prevent white and colored 
workers from uniting in trade unions. "This is a hybrid organiza- 
tion," commented the Baltimore Sun regarding the Southern Com- 
mittee, "financed by northern money, but playing on the Ku Klux 
Klan prejudices of the South. When Raskob, a Roman Catholic, 
contributed $5,000, he was told his money would be used to stir 
up the KKK and also to finance a venomous attack on Mrs. Roose- 
velt." 

The chairman of the Southern Committee was John Henry 
Kirby, former NAM President, Texas oil magnate and one of the 
wealthiest lumbermen in America. Acting as Kirby's right-hand 
lieutenant in the Committee was a self-styled "public relations 
counsel" named Vance Muse, editor of The Christian American 
and specialist in the promotion of "Christian" and "anti-Communist" 
organizations. "From now on," said Vance Muse regarding the 
New Deal labor policies, "white women and white men will be 
forced into organizations with black African apes whom they will 
have to call 'brother' or lose their jobs.". . . 

Another fascist organization financed by Liberty League members 
was the Sentinels of the Republic. The National Chairman of the 
Sentinels was Raymond Pitcairn, President of the Pitcairn Com- 
pany; and the total contribution of the Pitcairn family to the 
Sentinels amounted to more than $ioo,ooo.t Other large contribu- 
tors were Atwater Kent, President of the Atwater Kent Manu- 
facturing Company; Horatio Lloyd, banker and Morgan partner; 

* League members contributing most heavily to the financial support of the 
Southern Committee included Lammot du Pont, President of du Pont de 
Nemours and Chairman of the board of General Motors Corporation; Pierre 
S. du Pont; Alfred P. Sloan; and John J. Raskob, Vice-President of the du 
Pont firm. 

t According to the findings of the Temporary National Economic Com- 
mittee in 1 94 1, the Pitcairn family of Pennsylvania had holdings in industrial 
corporations amounting to $65,576,000 and ranked tenth among the nation's 
richest families with industrial holdings. The largest holdings of the Pitcairn 
family were in the Pittsburgh Plate Glass Company. 



J. Howard Pew, President of the Sun Oil Company; and Bernard 
Kroger, banker and grocery tycoon. 

Like official Nazi propaganda, the literature disseminated by the 
Sentinels of the Republic stressed "the Jewish-Communist" menace 
of the New Deal. In 1936 the Senate Black Committee investigating 
lobbying activities made public certain revealing correspondence 
found in the files of the Sentinels. The correspondence consisted 
of an exchange of letters between Alexander Lincoln, the Boston 
investment banker who was President of the Sentinels, and W. 
Cleveland Runyon of Plainfield, New Jersey. Runyon's first letter 
to Lincoln excoriated "the Jewish brigade Roosevelt took to Wash- 
ington" and went on to say: 

The fight for Western Christian civilization can be won; but only if 
we recognize that the enemy is world-wide and that it is Jewish in 
origin. All we need here is money . . . The time is getting short. Can 
you not do something? 

To which the President of the Sentinels, Lincoln, replied: 

I am doing what I can as an officer of the Sentinels. I think, as you 
say, that the Jewish threat is a real one. My hope is in the election next 
autumn, and I believe that our real opportunity lies in accomplishing 
the defeat of Roosevelt. 

Runyon then wrote back: 

The people are crying for leadership and we are not getting it. Our 
leaders are asleep. The Sentinels should really lead on the outstanding 
issue. The old-line Americans of $1,000 a year want a Hitler. 

The concept of an American dictator was not new. As early as 
September 1932 the magazine Current History had reported: 

For a good while, certain powerful elements have been toying with 
the idea that the way out of our troubles lies through the establishment 
of some form of economic and political dictatorship, and meetings of 
important personages are known to have been held in New York and 
Chicago, at which sentiment was tested out and possibilities discussed. 

Returning from a visit to Europe in 1933, WilHam S. Knudsen, 
President of General Motors, told a New York Times reporter that 
Hitler's Germany was "the miracle of the twentieth century." 

If such a miracle could occur in Germany, why not in the 
United States? 

One of the men being seriously considered in the early 1930's for 
the role of American Fuehrer was Major General Smedley Butler of 
the United States Marines. 
196 



2. Abortive Putsch 

Major General Smedley Darlington Butler, wearer of two con- 
gressional medals of honor, was a colorful hard-bitten soldier who 
had served thirty-three years in the Marine Corps before his habit 
of blunt speaking involved him in an international incident that 
brought about his enforced retirement. In 193 1, in a pubHc speech 
dehvered in Philadelphia, General Butler had described Benito 
Mussolini as "a mad dog about to break loose in Europe." The 
General had also related how II Duce while speeding in his car 
through an Italian town had run over a child, driven on without 
slowing down and told an American journalist with him at the 
time, "Never look backward. What is one life in the affairs of 
state?" When the ItaHan Ambassador furiously protested against 
Butler's remarks, and President Hoover issued an order to the Secre- 
tary of the Navy that the General withdraw his remarks or face 
court-martial, Butler stubbornly refused to recant. Shortly after- 
wards, the Italian government, embarrassed by the mounting pub- 
licity and reluctant to have more of the facts aired, requested the 
case be dropped. The court-martial proceedings against General 
Butler were discontinued, and the General was retired from active 
service. 

Far from diminishing General Butler's widespread popularity, the 
episode had considerably increased the number of his enthusiastic 
admirers— a fact not unnoted by certain influential circles then pri- 
vately discussing potential candidates for the role of America's 
"man on the white horse". . . 

In July 1933, General Butler was visited at his home in Newton 
Square, Pennsylvania, by two prominent American Legion officials, 
Gerald C. MacGuire and William Doyle. They proceeded to urge 
Butler to make a bid for the post of American Legion National 
Commander at the Legion convention which was scheduled to take 
place that October in Chicago. The General, said MacGuire, was 
just the man to lead a rank-and-file movement to oust the Legion's 
autocratic leadership. 

The General said he liked the idea of "unseating the royal family 
. . . because they've been selling out the common soldier in this 
Legion for years." But he didn't see how rank-and-file support could 
be rallied for his candidacy. What average veteran, he asked, could 
afford to go to the Chicago convention.^ 

197 



MacGuire reached into his pocket and took out a bank deposit 
book. He pointed to two entries— one for $42,000, and the other for 
$64,000. Rank-and-file delegates, said MacGuire, would be brought 
to the convention from all parts of the country ... 

Up to this point in the discussion. General Butler had felt there 
was something strange about the proposition being made to him. 
Now he was certain. "Soldiers don't have that kind of money," said 
Butler later. 

The General decided not to let his visitors know his suspicions 
had been aroused. In his own words, "I wanted to get to the bottom 
of this thing and not scare them off." 

He would need time. General Butler told the two men, to think 
the whole thing over. He proposed they meet again in the near 
future . . .* 

At a second meeting, MacGuire and Doyle presented General 
Butler with a typewritten "draft" of a speech which they suggested 
he deliver at the Legion convention. Among other things, the speech 
recommended the convention adopt a resolution urging that the 
United States return to the gold standard. "We want to see the 
soldiers' bonus paid in gold," said MacGuire. "We don't want 
the soldiers to have rubber money or paper money." 

When General Butler bluntly asked who was going to foot the 
cost of the campaign to make him Legion Commander, MacGuire 
replied that nine very wealthy men were putting up the necessary 
funds. One of them was the well-known Wall Street broker. Colonel 
Grayson M.-P. Murphy. "I work for him," said MacGuire. "I'm in 
liis office." 

"What has Murphy got to do with this?" Butler inquired. 

"Well, he's the man who underwrote the formation of the 
American Legion for $125,000," MacGuire answered. "He paid for 
the field work of organizing it and has not gotten all of it back yet.'* 

"That is the reason he makes kings, is it?" said Butler. "He has 
still got a club over their heads." 

"He's on our side," MacGuire insisted. "He wants to see the 
soldiers cared for." t 



* The description of this meeting, and the dialogue quoted, is taken from 
testimony given by General Smedley Butler in November 1934 before the 
Special House Committee investigating Nazi Propaganda Activities, as is the 
balance of the material in this section, except where specifically indicated. 

t Grayson M.-P. Murphy— who besides heading his own brokerage firm, 
held directorships in the Anaconda Copper Company, Goodyear Tire Com- 

198 



General Butler said that before discussing the matter any further, 
he wanted to meet some of "the principals" who were putting up 
the money. MacGuire said this would be arranged . . . 

Not long afterwards, a Wall Street broker named Robert Sterling 
Clark came to see General Butler at his home. He was, he told 
Butler, one of the men who were interested in seeing the General 
take over the leadership of the Legion. 

During the conversation that followed, General Butler mentioned 
the speech that MacGuire and Doyle had given him. "They wrote 
a hell of a good' speech," said Butler. 

"Did those fellows say that they wrote that speech?" asked 
Clark. 

"Yes, they did." 

The broker chuckled. "That speech cost a lot of money," he 
said. 

General Butler spoke of the resolution calling for a return to 
the gold standard. "It looks to me as if it were a big business speech. 
There is something funny about that speech, Mr. Clark." 

"I've got thirty million dollars," Clark quietly told the General. 
"I don't want to lose it. I am willing to spend half of the thirty 
miUion to save the other half. If you get out and make that speech 
in Chicago, I am sure that they will adopt the resolution and that 
will be one step toward the return to gold, to have the soldiers stand 
up for it . . ." 

When General Butler said he wanted no part in such a project, 
Clark politely asked if he might use the General's telephone. Calling 
Gerald MacGuire by long distance, the broker told him that Butler 
would not be coming to the convention. "You've got forty-five 
thousand dollars," said Clark to MacGuire. "You'll have to do it 
that way." 

Clark then took his leave of General Butler. 



pany, Bethlehem Steel Company and several Morgan banks-was a man of 
considerable experience in political-financial intrigues. 

In the early iqoo's, after visiting Panama on a confidential mission as a 
lieutenant in the U. S. Army, Murphy had sought to interest J. P. Morgan 
and Company in financing a military putsch in that country. 

Following World War I, Murphy headed the Red Cross Mission to France 
and, later to Italy. Like Herbert Hoover, Murphy saw to it that food and 
other supplies were used as a weapon against the postwar revolutionary 
upsurgence in Europe. Subsequently, Murphy was decorated by Mussolini 
and made a Commander of the Crown of Italy. 

199 



That October, the gold standard resolution was passed at the 
Legion convention in Chicago. 

In the spring of 1934, Gerald MacGuire traveled to Europe. The 
purported reason for his trip was "business." Actually, MacGuire 
was being sent to conduct a private survey of the role played by 
war veterans in the Nazi Party in Germany, the Fascisti in Italy 
and the Croix de Feu movement in France. 

In a letter from Paris, MacGuire reported to the broker, Robert 
Sterling Clark: 

The Croix de Feu is getting a great number of recruits, and I recently 
attended a meeting of this organization and was quite impressed with the 
type of men belonging. These fellows are interested only in the salvation 
of France, and I feel sure that the country could not be in better hands 
. . . and that if a crucial test ever comes to the Republic these men 
will be the bulwark upon which France will be saved . . . 

Returning to America that' summer, MacGuire rendered a per- 
sonal account to his "principals" in New York City of his findings 
on the European continent. 

Soon afterwards, MacGuire again went to see General Butler. 
The proposition MacGuire now made to the General was more 
startling than his original one. What was needed in America, 
MacGuire told Butler, was a complete change of government to 
save the nation from the "communist menace." Such a change, said 
MacGuire, could be brought about by a militant veterans' organiza- 
tion, Hke the Croix de Feu in France, which would stage a coup 
d'etat in the United States. The financial details were already ar- 
ranged. "We have three million dollars to start with on the line," 
said MacGuire, "and we can get three million more if we need it." 
And the ideal person to head the projected "militantly patriotic" 
veterans' organization and to lead "a march on Washington," Mac- 
Guire emphatically stated, was General Smedley Butler . . , 

General Butler subsequently related: 

To be perfectly fair to Mr. MacGuire, he didn't seem bloodthirsty. 
He felt such a show of force in Washington would probably result in a 
peaceful overthrow of the government. He suggested that "we might 
even go along with Roosevelt and do with him what Mussolini did with 
the King of Italy." . . . 

Mr. MacGuire proposed that the Secretary of State and Vice-Presi- 
dent would be made to resign, by force, if necessary, and that President 
Roosevelt would probably allow MacGuire's group to appoint a Secre- 

200 



tary of State. Then, if President Roosevelt was "willing to go along," 
he could remain as President. But if he were not in sympathy with the 
Fascist movement, he would be forced to resign, whereupon, under the 
Constitution the President succession would place the Secretary of State 
in the White House . . . 

He told me he believed that at least half of the American Legion and 
Veterans of Foreign Wars would follow me. 

"Is there anything stirring about yet?" General Butler asked 
MacGuire. 

"Yes, you watch," MacGuire replied. "In two or three weeks, 
you will see it come out in the papers. There will be big fellows in 
it. This is to be the background of it." 

MacGuire did not reveal the specific nature of the development 
to which he was referring, and the discussion ended with MacGuire 
urging the General to give the entire matter very careful considera- 
tion. 

A fortnight later, the formation of the American Liberty League 
was publicly announced. Named as Treasurer of the Liberty League 
was MacGuire's employer, the Wall Street financier, Grayson M.-P. 
Murphy . . . 

Amazed at the audacity of the scheme of which he had learned, 
General Butler immediately contacted Paul Comly French, an en- 
terprising journalist on the Philadelphia Record, with whom he was 
acquainted. The General enlisted the services of the newspaperman 
to help him uncover the full details of the plot. "The whole affair 
smacked of treason to me," said Butler later. 

On September 13, 1934, Paul French visited MacGuire at his 
office at the brokerage firm of Grayson M.-P. Murphy Company in 
New York City. Pretending a sympathetic interest in the proposition 
made to General Butler, French won MacGuire's confidence. 

MacGuire then told the journalist, as French later revealed, "sub- 
stantially the same story as related by the General." 

"The whole movement is patriotic," said MacGuire, "because the 
Communists will wreck the nation unless the soldiers save it through 
Fascism. All General Butler would have to do to get a miUion men 
would be to announce the formation of the organization and tell 
them it would cost a dollar a year to join." 

The chief financial support of the movement, however, was to 
come from other sources. French subsequently related: 

201 



He [MacGuire] said he could go to John W. Davis or Perkins of the 
National City Bank, and any number of persons and get it [financial 
backing] . . . 

Later we discussed the question of arms and equipment, and he sug- 
gested that they could be obtained from the Remington Arms Company 
on credit through the du Fonts. I do not think at that time he men- 
tioned the connection of du Pont with the American Liberty League, 
but he skirted all around the idea that that was the back door, and that 
this was the front door. 

To indicate to French the progress already made toward securing 
support from American veterans groups for the projected move- 
ment, MacGuire held up a letter. "It's from Louis Johnson, the 
former National Commander of the American Legion," he said. 

Then, according to French's account: 

He [MacGuire] said that he had discussed the matter with him 
[Johnson] along the lines of what we were now discussing, and I took it 
to mean that he had discussed this Fascist proposition with Johnson, and 
Johnson was in sympathy with it.* 

Both General Butler and Paul French were now convinced they 
had unearthed sufficient evidence to warrant a full-scale Govern- 
ment investigation of the plot for a fascist coup d'etat. Contacting 
the McCormack-Dickstein Congressional Committee then investi- 
gating Nazi and other propaganda in America, Butler asked to 
testify at one of its hearings. 

On November 20, at a private session of the McCormack-Dick- 
stein Committee, General Butler gave a detailed account of the 
manner in which he had been asked to lead a fascist putsch against 
the U.S. Government. If the committee wanted to get at the bottom 
of the conspiracy, said Butler at the conclusion of his testimony, it 
should call for questioning Grayson M.-P. Murphy, General 
Douglas MacArthur, ex-American Legion Commander Hanford 
MacNider and various members of the American Liberty League.f 

Among other witnesses to testify before the Committee were 



* When Louis Johnson was National Commander of the American Legion, 
Gerald MacGuire had served on his staff as chairman of the League's distin- 
guished-guest committee. 

On March 28, 1949, Louis Johnson was appointed U. S. Secretary of 
Defense by President Harry S. Truman. 

For further details on Johnson, see footnote page 250. 

tin his testimony, Butler had related that he had been told by MacGuire 
that General MacArthur and Hanford MacNider were also being considered 
as potential leaders of the fascist putsch. 

202 



James Van Zandt, commander of the Veterans of Foreign Wars, 
who admitted knowledge of the whole plot and corroborated Gen- 
eral Butler's story; and Gerald MacGuire, who admitted to having 
met periodically with General Butler but asserted that he had been 
"misunderstood," by the General . . . 

An exclusive news-story by Paul French revealing the content 
of General Butler's testimony before the McCormack-Dickstein 
Committee appeared in the Philadelphia Record, the New York 
Post and two papers in New Jersey. 

Immediately, General Butler's story became a national sensation. 

But the startling disclosures by General Butler and Paul French 
did not accomplish what they had anticipated. With the exception 
of a handful of liberal and left-wing newspapers, the nation's 
press rallied to the defense of the powerful interests involved in 
the conspiracy, suppressed the most incriminating portions of Gen- 
eral Butler's testimony, and ridiculed his story as a whole. The New 
York Times casually reported that the "so-called plot of Wall 
Street interests" had "failed to emerge in any alarming proportion." 
Ti77te magazine mockingly dismissed the affair as a "plot without 
plotters." 

The broker Grayson M.-P. Murphy's statement to the press flatly 
denying all knowledge of the plot and characterizing General 
Butler's story as "a joke— a publicity stunt," was more prominently 
featured by most newspapers than the General's charges. 

Soon, all references to the sensational case vanished from the 
newspapers. 

No Government investigation of the conspiracy took place. 

The McCormack-Dickstein Committee never summoned as wit- 
nesses any of the prominent persons named by General Butler; and 
when the Committee finally made public the General's testimony, 
many of his most startling charges, including the names of various 
Wall Street figures and all mention of the American Liberty 
League, had been deleted from the report on the hearing. 

Even so, the Committee report stated: 

There is no question that these attempts [of a fascist putsch'] were 
discussed, were planned, and might have been placed in execution when 
and if the financial backers deemed it expedient. . . . 

. . . your committee was able to verify all the pertinent statements 

203 



made by General Butler, with the exception of the direct statement 
suggesting the creation of the [fascist] organization. This, however, was 
corroborated in the correspondence of MacGuire with his principal, 
Robert Sterling Clark, of New York City, while MacGuire was abroad 
studying the various forms of veterans' organizations of Fascist character. 

Following the publication of the Committee's report, the head 
of the Civil Liberties Union, Roger Baldwin, made this observation: 

The Congressional Committee investigating un-American activities 
has just reported that the Fascist plot to seize the government . . . was 
proved; yet not a single participant will be prosecuted under the per- 
fectly plain language of the federal conspiracy act making this a high 
crime. Imagine the action if such a plot were discovered among Com- 
munists! 

Which is, of course, only to emphasize the nature of our government 
as representative of the interests of the controllers of property. Violence, 
even to the seizure of the government, is excusable on the part of those 
whose lofty motive is to preserve the profit system . . . 

3. Murder in the Middle West 

Of the myriad fascist organizations that mushroomed in the 
United States during the 1930's, none practised greater violence or 
perpetrated more appalling crimes than the Black Legion. A secret 
society, whose night-riding members wore black robes with slitted 
hoods adorned with skull and crossbones, the Black Legion main- 
tained a reign of terror from 1932 to 1936 in Michigan, Indiana, 
Ohio and other mid western states. In its wake, the Legion left a 
grisly trail of bumed-down homes, bombed union halls, fear- 
stricken communities, and dead and crippled human beings. 

"What gave it [the Black Legion] significance," record A. B. 
Magil and Henry Stevens in their book The Peril of Fascism, "w^as 
the peculiarly violent character of its activities, its penetration into 
police departments and high places in city, county and state gov- 
ernment, its connections with the Republican Party, and the fact 
that it was interwoven with the espionage systems and company 
unions of the automobile corporations." 

The conspiratorial apparatus of the Black Legion was organized' 
along mihtary lines. Its members, most of whom were required to 
possess firearms, were grouped into "divisions" which operated under 
the direction of "colonels" and "captains." For performing such 
tasks as breaking up labor meetings, dynamiting or burning down 
buildings, flogging or killing trade unionists, there were special 
204 



"anti-Communist squads" or "arson squads", "bombing squads", 
and "punishment" or "execution squads." Members were sworn to 
blind obedience and utter secrecy. The penalty for insubordination 
or failure to perform an assignment was torture or death. 

Initiation ceremonies were conducted at night in the macabre 
atmosphere of unlighted cellars or dark, secluded woods. Each new 
recruit was commanded to kneel within a circle of black-robed 
Legionnaires. With a loaded pistol pressed against his chest, he 
repeated the Black Legion oath of allegiance. Among the Black 
Legion "secrets" then revealed to the new recruits was this one: 

We regard as enemies of ourselves and our country all aliens, Negroes, 
Jews and cults and creeds believing in racial equality and owing 
allegiance to any foreign potentate. 

Once initiated, new members were given a .38 calibre bullet. They 
were told that should they ever betray the Legion's secret, they 
would receive "another bullet". . . 

The Black Legion's stronghold was in Michigan, where the per- 
centage of unemployment was at a national peak during the depres- 
sion years and every industrial center was simmering with social 
unrest. By 1935 Legion members in Michigan numbered in the 
tens of thousands, and its secret apparatus reached like a hidden 
cancerous growth throughout the industrial and political life of 
the state. 

Factories were honeycombed with Black Legion terrorist cells. 
The upper echelons of the Black Legion included city councilmen 
and state legislators, judges and police chiefs, prominent business- 
men, sheriffs, mayors and officers of the National Guard. As Will 
Lissner of the New York Times later reported: 

An important section of the membership consisted of substantial 
citizens. Campaign funds were raised at meetings in at least two churches 
in Detroit. Scores of politicians joined the organization, hoping to win 
its votes. 

To accomplish some of its aims, particularly in the field of 
politics, the Legion operated through various front organizations. 
One of these was called the Wolverine Republican League. The 
League, whose leadership was composed largely of Black Legion- 
naires, was used to muster votes for Legion members and sym- 
pathizers running for poUtical office. 

The headquarters of the Wolverine Republican League were 

205 



located at Room 2120 in the Union Guardian Building in Detroit. 
This room also served as the office of the Republican attorney, 
Harry Z. Marx, former head of the Americanization Committee of 
the American Legion and counsel for Detroit's Chief of Police, 
Heinrich Pickert. Marx himself was one of the directors of the 
Wolverine Republican League and Chairman of its Delegate Com- 
mittee. 

An indication of the poHtical influence of the Wolverine Re- 
publican League was the fact that when former Governor Wilbur 
M. Brucker was running as a candidate for the United States Senate 
in May 1936, he delivered his opening campaign address at a 
meeting sponsored by the League. 

On the night after ex-Governor Brucker had delivered this 
speech, five of the leading members of the Wolverine RepubUcan 
League, who were also Black Legionnaires, participated in the 
murder of a WPA worker named Charles Poole*. . . 

The anti-labor terrorist activities of the Black Legion, like those 
of other fascist organizations in America, were generally carried on 
in the name of combatting the "Communist menace." After investi- 
gating Black Legion operations in Oakland County, Michigan, a 
Grand Jury reported: 

Communist activities had engaged the Oakland County members 
from the first . . . 

A member spy was directed to join the Communist Party in Pontiac 
and report to Col. Pierce (Police Sergeant) relative to the activities of 
this group . . . 

Anti-Communist prejudice was constantly inflamed by the su- 
periors ... 

For the purpose of more direct "anti-Communist" action, Black 
Legion leaders compiled an "execution list" of "Reds" and "Party 
sympathizers." 

Among the names on the Legion execution list was that of the 
well-known labor attorney, Maurice Sugar, who in the spring of 
1935 was a candidate for the office of Recorders Judge. A Black 
Legion member named Dayton Dean was given the assignment of 
bombing Sugar's apartment. Dean rented an apartment in the build- 

* When Charles Poole's murderers were arrested and brought to trial, their 
defense attorney was Harry Z. Marx. For further details on Poole's murder, 
see page 209. 

206 



ing where Sugar lived, but failed to go through with the assign- 
ment. "I got cold feet," Dean explained later, "because too many- 
people would have been killed." 

Ordinarily, such qualms did not hinder the work of the Legion's 
"bombing squads." In one town after another, homes of trade 
unionists were dynamited or burned down by the black Legion- 
naires. During a strike at the Motor Products Company, Legion 
members dynamited the union headquarters and the homes of a 
number of the strike leaders. On other occasions. Legionnaires in 
Detroit bombed the Hall of the Ukrainian Educational Society, the 
Workers' Bookshop and the offices of the Communist Party , . . 

A typical Black Legion note, delivered to a small businessman 
who had allowed his shop to be used as a meeting place for union 
organizers, read as follows: 

One more meeting of the Communist Party in this joint and out of 
business you go and you won't be on earth to know what business means. 

Such threats were not infrequently followed by death. 

One of the first murder victims of the Black Legion was George 
Marchuk, a Communist who was Secretary of the Auto Workers 
Union in Lincoln Park, Wayne County, Michigan. Marchuk had 
received several warnings from the Black Legion to cease his "Red" 
activities in organizing workers at the Ford plant or "suffer the 
consequences." When Marchuk continued his trade union work, he 
was visited by a one-legged Black Legionnaire and former police- 
man named Isaac, or "Peg-Leg," White. White gave the Auto 
Workers' Secretary a final warning. On December 22, 1933, 
Marchuk was found dead in an empty lot with a bullet through his 
head. 

A few weeks later, on March 15, 1934, the body of John Bielak, 
who had been an A.F.L. organizer in the Hudson plant, was found 
riddled with bullets beside a lonely country road on the outskirts 
of Monroe, Michigan. Like Marchuk, Bielak had been "visited" 
shortly before his death by the Black Legionnaire, "Peg-Leg" 
White.* 



* In 1932, the ex-policeman "Peg-Leg" White had been a member of a 
vigilante "Citizens Committee", which was established with the aid of Harry- 
Bennett's Service Department at the Ford plant. White also worked closely 
with the labor espionage departments of other auto factories. Describing how 

207 



Sometimes, Black Legion members committed murder for the 
sheer "thrill" of killing. Describing one such murder which took 
place in May 1935, Black Legionnaire Dayton Dean later related: 

. . . Harvey Davis [a Black Legion leader] came in one day and we 
were talking and he wanted to know if I could get a colored guy for 
him. 

He said they were going to have a party out to the lake and they 
wanted to have a little excitment. They wanted to have a colored fel- 
low, didn't make any difference where he came from so long as he was 
black. They wanted to take him out and kill him. Colonel Davis said 
he wanted to know what it felt like to shoot a Negro. 

So I got hold of Charlie Rouse and Charlie said he had just the right 
man, he had one working for him, so we made arrangements with 
Davis . . . 

The Negro selected as "just the right man" to be killed was a 
42 -year old veteran and laborer named Silas Coleman. On the 
pretext he was to be paid some back wages he was owed by his 
employer, Coleman was lured at night to a summer cottage on the 
outskirts of Detroit, where Harvey Davis and several other Black 
Legionnaires were having a drinking party, together with their 
wives. When the unsuspecting Coleman arrived, the Legion mem- 
bers drove with him to a nearby swamp, parked their car and got 
out. Here, in Dayton's words, is what then happened: 

. . . the colored fellow came around to the rear of the car, wondering 
to see what we was doing around there, and just as he came around 
and faced up, Davis took his .38 and he shot first and then the others 
shot. The colored fellow went to say something and the bullet seemed 



he had drawn up lists of "Communist" labor organizers for the auto com- 
panies, White told a Detroit News reporter in June, 1936: 
"... I called on all the plants of Detroit. Once or twice I turned in a 
bunch of names to the Hudson Motor Car Company. How many I don't 
remember but there were several typewritten sheets ... I took some to 
Ford's, some to Budd Wheel, in fact to all the plants that had strikes or 
threats of strikes . . . the personnel departments of the plants v/ere always 
glad to get information about the Communists and they thanked us. It was 
merely a courtesy proposition." 

The interview with the News reporter was published at a time when some 
of the shocking facts about the Black Legion were finally being brought to 
light; and there was widespread demand that White be questioned by the 
police authorities in connection with the Marchuk and Bielak murders and 
other outrages perpetrated by the Black Legion. 

Not long after his indiscreet remarks to the News reporter, White was 
arrested. Five days after his arrest, he was reported to have died of "pneu- 
monia." 

208 



to pierce his lung or something and he couldn't talk and he made a kind 
of "a-h-h-h" gurgle in his throat or something kind of so. 

He run like a deer down there and when he started running they 
say "Don't let him get away" and ran after him emptying their guns after 
him. 

We went back to our cars and drove back to the cottage. They 
gave Charlie Rouse and I a shot of liquor and a bottle of beer and we 
drove back to Detroit but they stayed there and continued the party. 

Silas Coleman's body was later found, riddled with bullets, lying 
in the woods . . . 
These were some other murders traced to the Black Legion: 

Paul Avery: died April 14, 1935, as a result of a flogging he had re- 
ceived from Black Legion members 
Oliver Hiirkett: found dead in his car on April 25, 1935; he himself 

had close connections with the Black Legion and was said to have 

been killed as a "disciplinary measure" 
Rudolph Anderson: found dead on a street in Detroit on December 

16, 1935, with a bullet wound in his chest from a high-powered rifle 
Charles A. Poole: found shot to death, his body lying in a ditch beside 

a road on the outskirts of Detroit, on May 13, 1936 
Roy V. Pidcock: found hanging on Fighting Island, Detroit River, on 

May 29, 1936; an active trade unionist, he had been previously 

flogged by Black Legion members. 

Most of the killings carried out by the Black Legion, however, 
were never oflicially blamed on the secret terrorist society. The 
murders were listed in police records simply as "unsolved" crimes. 
According to subsequent testimony by Captain Ira H. Marmon of 
the Michigan State Police, at least fifty unexplained "suicides" in 
Michigan during the years 193 3- 1936 were the work of the Black 
Legion . . . 

In the summer of 1936, after a series of particularly bloodcurdling 
and brazen Black Legion crimes, public clamor forced Michigan 
state and municipal authorities to initiate investigations of the 
Legion's activities. Eleven Legionnaires were arrested in connection 
with the murder of Charles Poole, tried and sentenced to life im- 
prisonment. Some fifty other Black Legion members were rounded 
up and indicted on charges of murder, kidnapping, arson and other 
crimes. 

Trade unions, civic organizations and other public-spirited groups 
urged that the Department of Justice conduct a thorough probe of 
Black Legion operations throughout the Middle West. "It is only a 
Federal investigating Bureau that can coordinate the clues from all 

209 



these areas . . . ," a group of Michigan citizens stated in a report 
submitted to the Justice Department. "Local authorities are hamp- 
ered by fears of witnesses . . . Detroit newspapers have indicated 
how the Black Legion dominates even upper circles of officialdom." 

In Washington, Senator Elmer A. Benson of Minnesota intro- 
duced a resolution in the Senate caUing for a Federal investigation 
of the Black Legion. 

On May 28, 1936, Attorney General Homer S. Cummings stated 
that the Justice Department had "known of the Black Legion for 
about a year," but that action by the Department was impossible 
because "no federal law had been violated." 

The local investigations of the Black Legion concealed many 
more facts than they revealed. 

Few disclosures ever got beyond the court-room of the one-man 
grand jury. Judge E. Chenot. "I have control of the proceedings 
in this court," said Judge Chenot, at the opening session of the 
hearing. "Anyone who violates the secrecy of the grand jury will 
go to jail." 

A Detroit lawyer, Duncan McCrea, was the Wayne County 
Prosecutor in charge of investigating Black Legion activities. Mc- 
Crea's Chief Investigator was a man named Charles Spare. Unknown 
to the public. Spare was himself a leading member of the Ku Klux 
Klan, the Michigan branch of which he had helped to incor- 
porate. 

At the height of the Wayne County investigation, the Detroit 
Tbnes pubHshed a photograph of a Black Legion application card 
bearing the name of Prosecutor Duncan McCrea. McCrea did not 
deny that the signature was his. It was possible, he said, that he 
"might have signed the card"— after all, like other poUticians, he 
was "a joiner" . . . 

Commenting at the time on the criminal conspiratorial activities 
of the Black Legion, Governor George H. Earle of Pennsylvania 
declared: 

I charge that this organization is the direct result of the campaign of 
subversive propaganda subsidized by the Grand Dukes of the Duchy of 
Delaware, the du Ponts, and the munition princes of the American 
Liberty League. 

I was United States Minister to Austria in 1933-34. ^ saw for myself 
how fascism and Nazism are born furtively, in the dark; how they de- 
velop through just such organizations as the Black Legion • • • 

210 



I say to you that the money changers and the great industrialists 
behind the RepubHcan Party leadership cannot escape responsibility 
for this creature . . . The Black Legion is the first fruit of their 
campaign for fascism. 

4. Fifth Column in Congress 

In August 1936 an extraordinary national convocation attended 
by American fascist and anti-Semitic propagandists took place at 
Asheville, North Carolina. The gathering, which was called the 
National Conference of Clergymen and Laymen, had been arranged 
with the assistance of the prominent Liberty Leaguer and lumber 
king, John Henry Kirby, and his aide, Vance Muse, who together 
had organized the fascist Southern Committee to Uphold the Con- 
stitution. 

Among those present at the Asheville assembly, whose promoters 
had the avowed purpose of making anti-Semitism a key issue in the 
1936 Presidential campaign, were William Dudley Pelley, Silver 
Shirt chief and Nazi collaborator; James True, pro-Axis propa- 
gandist and inventor of a patented blackjack called the "kike- 
killer"; and George Deatherage, head of the "official Fascist 
Party," the American Nationalist Confederation, who was later to 
attend a World Congress of anti-Semites held in Erfurt, Germany, 
and there dehver a speech entitled, "Will America be the Jews' 
Waterloo?" 

One of the main addresses at the Asheville conference was de- 
livered by a stocky round-faced man with short-cropped hair whose 
name was Edward F. Sullivan. His remarks, according to the Ashe- 
ville press, were "what Hitler would have said had he been speak- 
ing" . . . 

Edward F. Sullivan had first become associated with the fascist 
movement in 1933, shortly after Hitler's rise to power in Germany. 
Nazi agents were already swarming over the globe to organize fifth 
columns within the democracies, particularly among national groups 
and minorities. There were one miUion Ukrainian-Americans in the 
United States, and, under expert Nazi supervision, a pro-Axis fifth 
column soon mushroomed among them. When a publicity man 
was needed to help rally mass support for the movement, several of 

211 



the Ukrainian-American fascist leaders recommended Edward F. 
Sullivan for the job. Sullivan was then an impecunious young news- 
paperman in Boston who, according to the records of the Senate 
Civil Liberties Committee, had been employed for a time by the 
labor-espionage Railway Audit and Inspection Company. Ap- 
proached by the Ukrainian-Americans, Sullivan readily went to 
work for them. 

By 1936, when he attended the Asheville conference, Sullivan 
was already regarded in fifth column circles as one of the more 
promising anti-democratic propagandists in the country. 

Even so, under ordinary circumstances there would have been 
little to distinguish Sullivan from numerous such agitators then 
operating in the United States. But an event was soon to occur 
which would place Sullivan in a very special category . . . 

In the summer of 1938 a Special Congressional Committee was 
formed, under the chairmanship of Representative Martin Dies of 
Texas, to investigate un-American activities in the United States. 

The first Chief Investigator appointed by the Dies Committee 
was— Edward F. SuUivan. 

American taxpayers who paid Sullivan's salary while he was Chief 
Investigator for the Un-American Activities Committee were un- 
aware of his anti-democratic previous activities. They might also 
have been interested in Sullivan's police record. Here it is: 



Offense 
Drunkenness 

Driving so as to endanger 
Driving without license 
Driving so as to endanger 
Larceny 

Larceny 



Place of Offense 
Charleston 
Roxbury 
Suffolk 
Suffolk 
Maiden 



Date 

Mass. 9/7/20 
12/18/23 
2/1 1/24 
6/27/24 



Middlesex 4/12/32 

Superior Court 
Operating after license sus- Lowell 2/1 1/32 

pended 
Violation of Section 690 of New York City 12/20/33 

the penal law (Sodomy) 
Arrested on charges of im- Pittsburgh 12/11/39 

personating FBI officer 



Disposition 

Released 

Fined $25 

Fined $25 

Placed on file 6 mo. 
House of Correc- 
tion; appealed 

Nolle prossed 

Filed 

Acquitted 
Charges dropped 



After supervising the initial "investigations" conducted by the 
Un-American Activities Committee, Edward Sullivan was reluc- 
tantly dropped as Chief Investigator by Congressman Dies. "For 
reasons of economy," said Dies. Actually, liberal American organi- 



212 



zations had uncovered certain details about Sullivan's unsavory 
record; and Dies, with an eye to a new appropriation for his Com- 
mittee, wanted to avoid a public scandal. 

Sullivan's place as chief investigator for the Un-American Activ- 
ities Committee was taken by J. B. Matthews, an embittered rene- 
gade radical who, Hke his predecessor, was held in high esteem by 
Axis agencies and their fifth column alHes. Matthew's diffuse auto- 
biography, Odyssey of a Fellow Tr^x;e/^r— dedicated to Martin 
Dies, J. Parnell Thomas, and other members of the Un-American 
Activities Committee and published by John Cecil, head of an anti- 
Semitic organization called the American Immigration Conference 
Board— was widely distributed in American fascist circles. The 
Nazi Propaganda Ministry warmly recommended Matthew's writ- 
ings, and articles by him were printed in Contra-Komintern, an of- 
ficial organ of the German Foreign Ofiice. . . .* 

The alleged purpose for which the Un-American Activities Com- 
mittee was established on May 26, 1938, was to gather information 
on "the diffusion within the United States of subversive and un- 
American propaganda that is instigated from foreign countries or 
of a domestic origin that attacks the principle of the form of gov- 
ernment as guaranteed by the Constitution." 

Instead, from its inception, the Un-American Activities Com- 
mittee itself served as a fountainhead of virulently anti-democratic 
propaganda and as an agency seeking to undermine basic tenets of 
the Constitution. 

As The New World, official organ of the Chicago diocese of the 
Catholic Church, stated editorially six months after the formation 
of the Committee: 

If it is really a committee to investigate "un-American activities," 
it really should begin with an investigation of itself. 

Week after week, in the marble-columned caucus room in the 
old House Office Building, an endless macabre procession of ex- 
convicts, labor spies, foreign agents, racketeers, fascist propagandists 
or political renegades were solemnly paraded before the Committee 

* In directing the "investigatory" operations of the Un-American Activities 
Committee, both Edward F. Sullivan and J. B. Matthews were assisted by a 
lean, sleek, pale-faced southerner named Robert E. Stripling who in 1943 be- 
came Chief Investigator of the Committee. 

213 



to testify as "expert witnesses" on "communist activities" in the 
United States. 

One of the first witnesses to appear before the Committee was a 
man by the name of Alvin I. Halpern. On the second day of 
Halpern's testimony, a District of Columbia court sentenced him to 
serve a prison term of one to two years for the crime of larceny. 

Nevertheless, Halpern's testimony was included, without any 
reference to his criminal record, in the official published reports of 
the Un-American Activities Committee. . . . 

These were some of the other "expert witnesses" to appear be- 
fore the Committee: 

Peter J. Innes: a labor spy who had been expelled from the National 
Maritime Union for stealing $500 from the union treasury; he was 
subsequently sentenced to eight years imprisonment for attempted 
rape of a small child. 

Willia?n C. McCuiston: an organizer of strong-arm squads for attack- 
ing trade unionists; he testified before the Committee while under 
indictment for the murder of Philip Carey, a labor leader who was 
shot and clubbed to death in New Orleans; subsequently acquitted 
on murder charge. 

Willia?7i T. Gernaey: a labor spy, exposed by the LaFollette Commit- 
tee as agent No. 0273 employed by the notorious labor espionage 
agency. Corporations Auxiliary. 

Edivm Perry Baiita: a pro-Axis propagandist, member of the Christian 
Front and collaborator with Nazi agents; he died in jail on Novem- 
ber 8, 1945, while serving a three year sentence for conspiracy to 
commit a felony. 

John Koos: 2. former leading spokesman for the American branch of 
a fascist Ukrainian organization called the Hetman, which had its 
headquarters in Berlin during the Nazi regime and operated under 
the direction of the German Military Intelligence; on September 30, 
1938, he sent a congratulatory cable to Adolf Hitler praising him for 
his "history-making efforts in the adjustment of minority rights." 

Richard Krebs, alias Jan Valtin: a renegade German Communist who 
served thirty-nine months in San Quentin penitentiary; and who, in 
his book, Out of the Night, explained his former membership in the 
Nazi Gestapo on the grounds that he was combatting its activities. 

Walter S. Steele: editor of the National Republic, a pro-Coughlin 
magazine; and one of the American sponsors of a book entitled 
Coimmmism in Germany, which was the first official Nazi propa- 
ganda document to be distributed in the United States and which 
was prefaced with a quotation from Adolf Hitler. 

These individuals did not appear before the Un-American Activ- 
ities Committee as the accused. They were the accusers. Under the 

214 



pretext of exposing "Communist activities" in the United States, 
they vilified outstanding American liberals, slandered progressive 
organizations, and calumniated the organized labor movement. The 
torrent of character assassination and abuse which flowed from 
their lips filled dozens of volumes published by the Government 
Printing Office and was widely quoted in the nation's press. 

None of the groups or persons thus publicly denounced had the 
opportunity to confront their defamers. The Committee permitted 
no cross examination of its "expert witnesses." 

"We can say anything we please about people and they have no 
recourse," declared Representative John J. Dempsey, a member of 
the Committee . . . 

While these hearings were being held, an elaborate espionage ap- 
paratus of secret agents was organized by the Committee to spy 
upon American citizens, plant dictaphones, seize private records, 
and compile extensive blacklists of liberals, anti-fascists and active 
trade unionists. 

According to the Committee's own claims, its files soon con- 
tained the names of "more than one million subversive Americans." 

"And how did they get those names?" asked Representative John 
J. Cochran of Missouri. "They confiscated mailing lists of so-called 
subversive organizations. . . . Undoubtedly my name is on the list; 
and so is yours." 

After learning that his name was included on the Committee's 
blacklists. Professor Clyde R. Miller of Teachers College, Columbia 
University, paid a visit to the Committee's ofHce in Washington, 
D. C. He said he wanted to know why the Committee had listed him 
as a "dangerous American." 

A Committee investigator named Chester Nickolas told Profes- 
sor Miller that, according to the Committee's records, he had been 
a member of several organizations combatting anti-Semitism. 
"You're just a college professor," said Nickolas. "You should know. 
Professor, that all these groups fighting anti-Semitism are Com- 
munist transmission belts." 

Then Investigator Nickolas added: 

"You better go back and tell your Jewish friends that the Jews 
in Germany stuck their necks out too far and Hitler took care of 
them, and the same thing is going to happen here unless they watch 
their step. . . ." 

215 



On February ii, 1941, Congressman Samuel Dickstein of New 
York made a startling accusation against the Un-American Activ- 
ities Committee. Speaking on the floor of the House of Represen- 
tatives, Dickstein charged: 

One hundred and ten fascist organizations in the United States have 
had, and have now the key to the back door of the Un-American Activi- 
ties Committee! 

In the crucial years immediately preceding Pearl Harbor, with 
the Axis fifth column in America feverishly endeavoring to under- 
mine national morale and hamstring U. S. defense preparations, the 
Un-American Activities Committee not only failed to combat these 
machinations; it actually worked in collusion with German and 
Japanese agents and their American accomphces. 

One of the largest and most menacing of the pre-war fifth column 
organizations in America was the Christian Front. Its members, 
operating under the supervision of Nazi agents, ran into the tens 
of thousands; its secret stormtroop cells were armed and drilling 
in every major city; and its leader. Father Charles E. Coughlin, by 
means of his radio program and his pubhcation, Social Justice, was 
disseminating copious quantities of propaganda received directly 
from the Nazi Propaganda Ministry. 

The Un-American Activities Committee never investigated 
Father Coughhn and his vast fascist apparatus. On the contrary, a 
secret understanding existed between the Committee and the pro- 
Nazi priest, who periodically provided Chairman Martin Dies with 
lists of "Communists" and various propaganda material. 

In 1939, Father Coughlin issued these instructions to his storm- 
troopers: 

In your appreciation of the work accomplished by Dies, employ some 
of your leisure moments to write him a letter of encouragement. In fact, 
a million letters brought to his desk would be an answer to those who are 
bent on destroying him and the legislative body he represents. 

On December 8, 1939, the German-American Bund leader and 
Nazi spy, Fritz Kuhn, was asked by newspapermen what he thought 
of the Un-American Activities Committee. "I am in favor of it 
being appointed again," Kuhn replied, "and I wish them to get 
more money." 

Here are other typical comments by leading fifth columnists or 
fascist propagandists on the work of the Un-American Activities 
Committee: 
216 



"I have the highest respect for the Comniittec and sympathize with its 
program."— George Sylvester Viereck, Nazi agent sentenced on Feb- 
ruary 21, 1942, to serve eight months to two years in prison. 

"I founded the Silver Legion in 1933 ... to propagandize exactly the 
same principles."— William Dudley Pelley, former head of the pro- 
Nazi Silver Shirts, sentenced on August 13, 1942, to 15 years imprison- 
ment for criminal sedition. 

"[The Committee's] program ... so closely parallels the program 
of the Klan that there is no distinguishable difference between them." 
—James Colescott, Imperial Wizard of the Ku Klux Klan. 

". . . the Committee of One Million carried a petition bearing more 
than 400,000 names to Washington calling for the continuation of the 
investigation."— Gerald L. K. Smith, ex-Silver Shirter No. 3223, Na- 
tional Chairman of the fascist Committee of One Million.* 

5. America First 

The members of the Un-American Activities Committee were 
not the only U. S. congressmen involved in the secret war the Axis 
was waging against America in the days before Pearl Harbor. There 
were other Representatives and Senators who, wittingly or un- 
wittingly, proved extremely useful to Axis agents operating in the 
United States. 

There was, for example, Senator Ernest Lundeen of Minnesota. 
On June 19, 1940, Lundeen delivered on the floor of the Senate 
a lengthy speech attacking Lord Lothian, then British Ambassador 
to the United States. Lundeen's speech was widely distributed by 
American fifth column organizations after being reprinted by a 
publishing house called Flanders Hall, Inc. 

It happened that the firm of Flanders Hall had been founded and 
was financed by the ace Nazi agent, George Sylvester Viereck. It 
also happened that Viereck had written Senator Lundeen's speech 
for him. For the m.ost part, the speech was a compilation of material 

* After America's entry into the war, the Un-American Activities Commit- 
tee carried on a continuous propaganda campaign which closely paralleled 
that of the Axis, violently attacking the Roosevelt Administration, charging 
that U. S. Government agencies were riddled with "Reds," and denouncing 
America's fighting allies. These charges were repeatedly picked up and re- 
peated by the Axis Propaganda Ministries. A report made by the Federal 
Communications Commission on Axis short-wave broadcasts to this hemisphere 
stated: "Representative Dies received as many favorable references in Axis 
propaganda in this country as any living American public figure. His opinions 
were quoted by the Axis without criticism at any time." 

217 



Viereck had acquired at the German Embassy in Washington . . . 

Two other American pohticians who were in close touch with 
Flanders Hall were Representative Stephen A. Day of Illinois and 
ex-Senator Rush D. Holt of West Virginia. 

In the summer of 1941, Representative Day turned over to Sieg- 
fried Hauck, President of Flanders Hall, a manuscript savagely at- 
tacking the domestic and foreign poHcies of the Roosevelt Admin- 
istration. After various editorial revisions by Nazi agent Viereck, 
the manuscript was published as a book called We Must Save the 
Republic. 

Ex-Senator Holt, following conferences at his Washington house 
with Hauck and Viereck, wrote for Flanders Hall a manuscript en- 
titled Who^s Who Among the War Mojigers. Holt's book was 
never pubHshed, but the manuscript went on an interesting journey. 
It was mailed by Viereck to the German Ambassador in Portugal, 
who was to forward it for inspection to Berlin. The manuscript, 
however, never reached its destination. It was intercepted at Ber- 
muda by the British censors. 

Viereck, who was later characterized by an Assistant U. S. At- 
torney General as "the head and brains" of the Nazi propaganda 
network in America, had frequent urgent business in the nation's 
capitol during 1 940-1 941. As Hitler's legions overran Europe and 
then plunged eastw^ard into Russia, and as Axis plans were readied 
for the open military assault on America, the Fascist Powers placed 
increasing importance on sabotaging Lend-Lease aid and U. S. 
defense legislation. To further these aims, Viereck established a 
special propaganda apparatus in Washington. 

The headquarters of Viereck's Washington propaganda machine 
was in Room 1424 in the House Office Building. Room 1424 was 
the office of Congressman Hamilton Fish of New York, an arch 
exponent of isolationism and appeasement.* 

Representative Fish's secretary, George Hill, was one of Viereck's 
key assistants. After being introduced to Viereck by the Congress- 

* In the fall of 1939 Representative Fish traveled to Nazi Germany. There, 
immediately prior to the outbreak of war, the Congressman conferred with 
Joachim von Ribbentrop, Nazi Foreign Minister; Count Galeazzo Ciano, 
Italian Foreign Minister; and other Axis leaders. In a private plane placed at 
his disposal by the Nazi authorities. Fish toured Europe urging the smaller 
nations to accede to Germany's demands. In Berlin, Fish told American news- 
papermen, "Germany's claims are just." 

218 



man, Hill became— as Special Assistant Attorney General William 
P. Maloney later declared— "an important cog in ... a [propaganda] 
machine so diabolically clever that it was able to reach in and use 
the halls of our own Congress to spread its lies and half truths to 
try to conquer and divide us as they did France and other con- 
quered nations." 

Another of Viereck's Washington aides was an isolationist pub- 
licist named Prescott Dennett. With Dennett acting as his front 
man, Viereck set up a special propaganda "committee" in Wash- 
ington which arranged to have isolationist propaganda inserted in 
the Congressional Record and then mailed throughout the country, 
under the congressional frank, mass quantities of reprints of this 
material in the Record. The Chairman of this propaganda com- 
mittee was Senator Ernest Lundeen. Honorary Chairman was 
Senator Robert R. Reynolds of North Carolina, the Chairman of 
the Senate Military Affairs Committee. Representative Martin L. 
Sweeney of Ohio acted as Vice-Chairman. Prescott Dennett was 
Secretary-Treasurer. 

Here is a list of congressmen whose franking privilege was used, 
whether or not all of them were aware of it, by the Viereck-Den- 
nett Committee: 

Senators: D. Worth Clark, Rush D. Holt, E. C. Johnson, Gerald 
P. Nye, Robert R. Reynolds, and Burton K. Wheeler. 

Representatives: Philip Bennett, Stephen Day, Henry Dworshak, Ham- 
ilton Fish, Clare E. Hoffman, Bartel Jonkman, Harold Knutson, 
James C. Oliver, Dewey Short, William Stratton, Martin L. 
Sweeney, Jacob Thorkelson, George Holden Tinkham, and John 
M. Vorys. 

But the most important agency used by George Sylvester Viereck 
for the distribution of his isolationist and pro-Axis material was not 
his own propaganda apparatus. It was the America First Committee. 

The America First Committee appeared on the American political 
scene in September 1940. Operating on a national scale up until the 
day of Pearl Harbor, through the medium of the press, radio, mass 
raUies, street-corner meetings and every other kind of promotional 
device, the America First Committee spread a prodigious amount 
of anti-British, anti-Soviet and isolationist propaganda, and vigor- 
ously opposed the sending of Lend-Lease supplies to England and 
Russia. 

219 



The Committee was headed by the isolationist Chicago business- 
man General Robert E. Wood, who publicly stated that he was 
willing to hand Europe over to Hitler and, if necessary, all of South 
America "below the bulge." Other original America First leaders 
included Henry Ford, who as early as 1923 was reported to be an 
active supporter of the Nazi Party in Germany and was decorated 
by the Hitler Government in August 1938; Colonel Robert R. iMc- 
Cormick, publisher of the violently isolationist Chicago Tribwie; 
Charles E. Lindbergh, who blamed the war danger to America on 
"the British, the Jews and the Roosevelt Administration," ad- 
vocated cooperation with Nazi Germany against Russia, and had 
accepted a medal from Hitler in October 1938; Senators Burton K. 
Wheeler, Gerald P. Nye and Robert Rice Reynolds, and Represen- 
tatives Hamilton Fish, Clare E. Hoffman and Stephen Day— all of 
whose franking privileges had been used for propaganda purposes 
by the Nazi agent Viereck. 

From the start, the America First membership was riddled from 
top to bottom with German and Japanese agents, and with noto- 
rious American anti-Semitic agitators, fascist propagandists and 
fiftli column leaders. The chief woman spokesman for the Commit- 
tee was the ex-aviatrix and socialite Laura Ingalls; she was later con- 
victed on charges of having failed to register as a paid agent of the 
Third Reich. Werner C. von Clemm, subsequently jailed for smug- 
gling diamonds into the United States in collusion with the German 
High Command, served as an anonymous strategist and financial 
supporter of the New York branch of the America First Commit- 
tee. Frank B. Burch, later convicted of having received $10,000 from 
the Nazi Government for illegal propaganda services in the United 
States, was one of the founders of the Akron, Ohio, branch of the 
Committee. The American journalist, Ralph Townsend, who was 
later given a prison sentence for having failed to register as a paid 
Japanese agent, was head of a West Coast branch of the Commit- 
tee and a member of the editorial board of the two leading America 
First propaganda organs, Scribner^s Commentator and The Herald, 
Both of these journals regularly published Axis propaganda received 
via shortwave radio from Europe and Japan. 

Behind the scenes, the Nazi agent George Sylvester Viereck pre- 
pared much of the propaganda material which was distributed from 
coast to coast by the America First Committee . . . 

Via shortwave to America on January 22, 1941, Dr. Paul Joseph 
220 



Goebbels' Propaganda Ministry announced: "The America First 
Committee is truly American and truly patriotic!" 

Not all of the prominent Americans who were associated with 
the America First Committee were publicly known as members of 
its executive bodies or appeared as speakers at America First mass 
rallies. There was, for instance, William R. Castle, the wealthy 
former Under-Secretary of State in the Hoover Administration. 
Several of the conferences at which the original plans for the Com- 
mitte were drafted took place at Castle's palatial residence in Wash- 
ington, D. C. Among the leading American advocates of isolatism 
and appeasement with whom Castle maintained close contact were 
Senator Burton K. Wheeler, General Robert E. Wood, Charles 
Lindbergh and former President Herbert Hoover. 

Public statements by Herbert Hoover bitterly attacking the 
foreign poUcy of the Roosevelt Administration and condemning 
Lend-Lease, were enthusiastically reprinted and widely circulated 
by the America First Committee. 

In a confidential cable sent from London by Harry Hopkins to 
President Roosevelt early in 1941, Hopkins reported: 

"Last night I saw Wendell Willkie. He told me that he believes 
the opposition to Lend Lease is going to be vehemently expressed 
and it should not be underrated under any circumstances. It is his 
belief that the main campaign against the Bill will be directed from 
Chicago and heavily financed. As perhaps he told you it is his 
opinion that Herbert Hoover is the real brains behind this opposi- 
tion." 

Wilham R. Castle was not the only old friend of Hoover's who 
was quietly cooperating with the America First Committee. An- 
other was the Wall Street attorney, John Foster Dulles. A staunch 
exponent of appeasement, Dulles had dehvered a speech before the 
Economic Club in March 1939 in which he spoke of the German, 
Japanese and Italians as "dynamic peoples determined ... to take 
their destiny into their own hands." Dulles added: 

There is no reason to believe that any of the totalitarian states either 
collectively or separately would attempt to attack the United States. Only 
hysteria entertains the idea that Germany, Italy or Japan contemplates 
war against us . . . 

The incorporation papers of the New York Chapter of the 

221 



America First Committee were drawn up in the office of Dulles' 
law firm, Sullivan & Cromwell; and the records of the America 
First Committee listed both Mr. and Mrs. John Foster Dulles among 
the Committee's financial supporters.* 



* In 1943, when Dulles was queried by newsmen about his former connec- 
tions with the America First Committee, he was quoted as indignantly de- 
claring: "No one who knows me and what I have done and stood for con- 
sistently over thirty-seven years of active life could reasonably think that I 
could be an isolationist or 'America Firster' in deed or spirit." 

In one respect, Dulles was perfectly justified in claiming not to be an isola- 
tionist. In the years between the two world wars, few Americans had been 
so constantly and deeply involved in international financial-political operations. 
"Imperialism and cartels," declared Senator Claude Pepper, "are the only 
economic theories Dulles knows." 

In 1919, as the chief American counsel on the Paris Peace Conference Com- 
mittees on reparations and financial matters, and as a member of the Supreme 
Economic Council, Dulles helped project the disastrous policies of the post- 
war period. During the 1920's, as a member of the law firm of Sullivan & 
Cromwell, Dulles assisted in drafting the Dawes and Young Plans and chan- 
neling American funds to reactionary European regimes, and in making cartel 
arrangements between great German and American trusts. 

After Dulles had become senior partner of Sullivan & Cromwell, one of the 
world's wealthiest law firms (its partners sit on the boards of more than forty 
industrial corporations, utilities and banks), the concern represented such 
clients as these: J. H. Schroeder Banking Corp., whose parent banking house 
in London was described by Time magazine in 1939 as "an economic booster 
for the Rome-Berlin Axis"; the Bank of Spain, following fascist Generalissimo 
Franco's seizure of power; and Count Rene de Chambrun, son-in-law of the 
French traitor, Pierre Laval. 

"It may be only coincidence, of course," stated the October 1947 issue of 
Social Questions, the bulletin of the Methodist Federation for Social Action, 
"that the firm (Sullivan & Cromwell) had such close relations with the 
Schroeder Bank, I. G. Farben, the famous German law firm of Albert & 
Westrick, etc., and that Mr. Dulles is listed as a director of the International 
Nickel Co. of Canada, which in 1946 was sued by the U. S. Government for 
having a cartel price-fixing alliance with I. G. Farben and giving illegitimate 
aid to German rearmament . . ." 

On October 10, 1944, Senator Pepper declared: "One of Mr. Dulles' con- 
nections which I believe the American people are especially entided to know 
is his relationship to the banking circles that rescued Adolf Hitler from the 
financial depths and set up his Nazi Party as a going concern . . . It . . . 
should in my opinion be one of the central points of a Senate investigation 
before entrusting the making of peace into the hands of any man with these 
past loyalties." 

At the end of World War II, as a U.S. delegate to the San Francisco Con- 
ference, advisor to Secretary of State Byrnes and a U. S. delegate to the U. N. 
Assembly, Dulles became one of the chief architects of American foreign 
policy. (See Book Four.) On April 6, 1950, Dulles was appointed by President 
Harry Truman as top-ranking advisor and consultant to Secretary of State 
Dean Acheson. 



222 



Chapter xii 

THE WAR YEARS 



We of the United Nations are not making all this sacrifice 
of human effort and human lives to return to the kind of 
world we had after tlie last World War. 

We are fighting today for security, for progress, and for 
peace, not only for ourselves, but for all men, not only for 
one generation but for all generations. We are fighting to 
cleanse the world of ancient evils, ancient ills. 

From a radio address by President 
Franklin D. Roosevelt, October 12, 1942 

They [corporations] cannot commit treason, nor be out- 
lawed nor excommunicated, for they have no souls. 

Sir Edward Coke, 16 is 



I. Gold Internationale 

In the early spring of 1940, a German emissary named Dr. Ger- 
hardt Westrick arrived in the United States on a mission of the ut- 
most importance. Officially, Dr. Westrick traveled as a Commercial 
Attache to the German Embassy in Washington. Unofficially, he 
was in America as a personal representative of the Nazi Foreign 
Minister, Joachim von Ribbentrop. Westrick's secret mission was 
to discuss certain confidential trade agreements with a number of 
leadincr American industrialists and financiers. 

Westrick was well quahfied for his assignment. For some years, 
he had been a familiar figure in international big business circles. 
As a partner in the prosperous German law firm of Albert & West- 
rick, which numbered among its clients such concerns as the colos- 
sal chemical trust, I. G. Farbenindustrie, Westrick had served as 
a counsel for the German subsidiaries of the Underwood Elliot- 

"3 



Fisher Company, Eastman Kodak Company, and other outstanding 
American firms. In addition Westrick was head of the Standard 
Elektrizitaets Gesellschaft, German subsidiary of the International 
Telephone and Telegraph Company.* 

Though accredited with the U.S. State Department as a diplo- 
matic official attached to the German Embassy, Dr. Westrick spent 
little time in Washington following his arrival in the United States. 
He established himself in a sumptuous suite at the Hotel Waldorf- 
Astoria in New York City; made arrangements to receive his con- 
fidential mail at another New York hotel, where he was registered 
under an assumed name; and rented a secluded suburban estate at 
Scarsdale in Westchester County as a private headquarters for trans- 
acting the more vital business of his mission. 

Handsome limousines driven by liveried chauffeurs were soon 
arriving at the Scarsdale estate. Among the first of Dr. Westrick's 
various distinguished visitors were Captain Torkild Rieber, Chair- 
man of the Board of the Texas Company, one of America's largest 
oil concerns, and Philip D. Wagoner, President of the Underwood- 
Ellliott Fisher Company. 

For his own convenience in traveling: to and from New York 
City, Westrick had at his disposal a car which belonged to Captain 



* An interesting sidelight to Dr. Westrick's mission in the United States 
dnring World War II was the role that had been played by his law partner, 
Dr. Heinrich Albert, in America during W\irld War I. 

Prior to America's entry into the Great War, Dr. Albert was the German 
Ccmm.ercial Attache in Washington. He was also the secret paymaster of a 
German espionage and sabotage ring then operating in America. 

In 1919, following a Senate investigation of German wartime espionage- 
sabotage activities in the United States, Senator Knute Nelson characterized 
Dr. Albert as the "Machiavelli of the whole thing . . . the mildest mannered 
man that ever scuttled ship or cut throat." 

The sabotage ring financed by Dr. Albert carried out such operations as 
blowing up American ships, infecting American cattle with disease germs, 
setting fire to American war plants and docks, and stirring up anti-Allied 
sentiment throughout the country. Through Albert's hands passed at least 
$40,000,000 to subsidize sabotage, sedition and conspiracy in the United States. 
In 191 7, Dr. Albert was finally forced to leave America and return to 
Germany. 

During the 1920's and 1930's, as a member of the German General Staff 
and a representative of I. G. Farben, Dr. Albert helped train German "business 
agents" for espionage operations in the United States. He himself remained in 
Germany, running the law firm of Albert and Westrick with Dr. Gerhardt 
WestricK. 

As of February 1945 Dr. Heinrich Albert still held, among other posts, that 
of Director of the Ford Motor Company, Cologne, Germany. 

"4. 



Torkild Rieber. In applying for his auto license, Westrick gave 
the Texas Company as his business address . . . 

On August I, 1940, the New York Herald-Tribune featured a 
sensational front-page story headhned: "Hitler's Agent Enscoased in 
Westchester— Dr. Westrick Traced to Secluded Headquarters on 
Scarsdale Estate." In this and two subsequent articles, the Herald- 
Tribune revealed a number of Westrick's mysterious, ex-officio 
activities in the United States.* 

Editorially, the Herald-Tribune commented: 

It is desirable to know what those who have been dealing with him 
[Westrick] have been doing; it is even more desirable to get those who 
may have been dealing with him to stand up, to be counted and to ex- 
plain themselves . . . The great danger to a democracy from its potential 
Petains and Lavals and Baudouins is that they exist in secret, pretending 
to support the majority until that critical moment when their sudden 
defection may paralyze the whole national will just when it is needed 
most. 

Hurriedly returning to Nazi Germany after the Herald-Tribwie 
expose. Dr. Westrick had at least the consolation of knowing that 
one of his distinguished American friends had come to his defense. 

"I don't believe he has done anything wrong," John Foster Dulles 
told a Herald-Tribune reporter. "I knew him in the old days and 
have a high regard for his integrity." 

Some years later, when questioned by American occupation 
authorities in Germany at the end of World War II, Dr. Westrick 
disclosed these facts about his visit to the United States in 1940: 

My most important connection with American business was with 
International Telephone and Telegraph Co., whose president was Col. 
Sosthenes Behn. Behn was also a director of Standard Elektrizitaets 
Gessellschaft, which was affiliated with International Telephone and 
Telegraph Co. . . . 

Among those I saw in the United States were Torkild Rieber of the 
Texas Co., Eberhard Faber of the Faber Co., James Mooney of General 
Motors, and Edsel and Henry Ford . . . 

I paid Mooney a visit and one day he came to visit me in the 
Waldorf-Astoria, and on his own initiative he told me that he and a 
group of other people had the intention of seeing the President and 
trying to convince the President that he should insist on normal political 
relations between the United States and Germany. This was after Ger- 
many had invaded France, Belgium and Norway. 

* The first stories exposing Dr. Gerhardt Westrick's mission in the United 
States appeared on April 6 and April 20, 1940, in the newsletter. The Hour, 
of which this author was then managing editor. 

"5 



In the critical period of 19 39-1 941, as Hitler made his open bid 
for world conquest, there were not a few big businessmen in the 
United States who, like Dr. Westrick's American friends and asso- 
ciates, were eager to maintain "normal political relations" with Nazi 
Germany. Their viewpoint was reflected in a remarkable letter 
which Alfred P. Sloan, chairman of General Motors, wrote to a 
stockholder in the spring of 1939. Sloan's letter read in part: 

General Motors is an international organization. It operates in 
practically every country in the world . . . many years ago, General 
Motors— before the present regime in Germany— invested a large amount 
of money in Adam Opel A.G. It has been a very profitable investment, 
and I think outside of the political phase, its future potentiality from 
the standpoint of development and profit, is equal to, if not greater 
than many other investments which the Corporation has made. It en- 
joys about 50% of the business in Germany— a little less than that to be 
exact. It employs German workers and consumes German materials . . . 

Having attained the position which we have, through evolution, 
hard work, and, I believe, intelligent management, of approaching 50% 
of one of the most important industries in Germany, I feel that we 
must conduct ourselves as a German organization, involving German 
capital . . .* 

"By the time the present war broke out," Sims Carter, Assistant 
Chief of the Economic Warfare Section of the U.S. Department of 
Justice, told the Kilgore Committee in September 1944, "most of 
Germany's leading industrial, commercial and banking firms had 
American connections. Even after hostilities had begun, key figures 
continued to arrive in the United States and other parts of the 
hemisphere from Germany." 

Most of the intimate, war-time dealings between American and 
German businessmen, however, were not transacted in the western 
hemisphere. A more convenient meeting place for their secret nego- 
tiations was the headquarters of the Bank of International Settle- 
ments at Basle, Switzerland. 

On May 19, 1943, an article in the Neiv York Times had this to 
say about the Bank at Basle: 

Allied preparations for an invasion of the European continent make 
the Bank of International Settlements at Basle, Sv/itzerland, look still 



* The operations of the great auto manufacturing firm of Adam Opel A.G. 
were no less valuable to the German Government than they were to General 
Motors Company. Opel was producing the major portion of the mobile equip- 
ment for the Nazi Wehnnacht . . . 

226 



more incongruous than it ever looked since the outbreak of the war 
in September, 1939. In the seclusion of a Swiss city, American, German, 
French, and Italian bankers, not to mention Swedish, Swiss and Nether- 
land representatives, are still at work side by side and attend to com- 
mon business . . . 

Does it mean that, in this world of today, so hopelessly torn asunder, 
all belligerents are tacitly agreed to preserve a unique shelter for what 
was formerly called international finance— a shelter to be eventually 
used at will for the purpose of a policy of appeasement? 

The directors of the Bank of International Settlements included 
three directors of the Bank of England; the powerful Nazi finan- 
ciers—Baron K. F. von Schroeder of Cologne, Reichsbank President 
Walther Funk and Dr. Hermann Schmitz, President of I. G. Farben; 
and the American Wall Street banker, Thomas H. McKittrick, 
Director of the First National Bank of New York and President and 
General Manager of the Bank of International Settlements. 

"It is German-controlled," Harry White, special adviser to the 
U.S. Treasury Department said regarding the International Bank of 
Settlements on November 23, 1943. 'There's an American president 
doing business with the Germans while our boys are fighting 
Germans." 

The American banker McKittrick informed a United Press cor- 
respondent in Switzerland in the summer of 1944: "We keep the 
machine ticking . . . because when the Armistice comes the formerly 
hostile powers will need an efficient instrument such as the BIS." 

Two other important personages reported to be doing their part 
toward keeping the machdne ticking in Basle, Switzerland, were von 
Ribbentrop's former personal emissary to the United States, Dr. 
Gerhardt Westrick, who made frequent trips during the war to the 
BIS headquarters; and Westrick's old friend, Allen Dulles, John 
Foster Dulles' brother, a member of the law firm of Sullivan & 
Cromwell, and a director of the Schroeder Banking Company. In 
1942 Allen Dulles had been appointed as head of the Switzerland 
branch of the U.S. Office of Strategic Services. He remained in 
Switzerland until the fall of 1944 . . . 

On June 3, 1942, in a speech delivered before the Illinois Bar 
Association, Assistant U.S. Attorney General Thurmond Arnold 
had this to say about the international cartel agreements which lead- 
ing American industrialists were still maintaining with their German 
counterparts: 

227 



The small group of American businessmen who are parties to these 
international rings . . . still think of the war as a temporary recess from 
business-as-usual with a strong Germany. They expect to begin the game 
all over again after the war. 

It is significant that these cartel leaders still talk and think as if the 
war would end in a stalemate, and that, therefore, they must be in a 
strong position to continue their arrangements with a strong Ger- 
many after the war. This is not shown by their speeches, but by the 
actual documents and memoranda of business policy which we find in 
their files. 

Throughout the war years, most of the largest American corpora- 
tions continued to collaborate with Nazi trusts through cartel ar- 
rangements, or were under agreement to resume business relations 
with their German partners as soon as hostilities ended. Within the 
single week of May 1942, the U.S. Department of Justice uncovered 
no less than 162 cartel agreements betw^een the German I. G. Farben 
trust and American business firms. Cartels which remained operative 
during the war years, or were temporarily "suspended," covered 
chemicals, rubber, magnesium, zinc, aluminum and many other vital 
products. Some of these cartel contracts were legally valid until 
after i960. 

At least one great American company, Standard Oil of New 
Jersey, publicly refused to cancel postwar cartel deals with Ger- 
many. As Homer T. Bone, Chairman of the Senate Patents Com- 
mittee, informed the Senate Military AflFairs Committee on June 4, 
1943: 

The Standard Oil Company of New Jersey directors were asked by 
certain stockholders to cut ofiF all relations with Farben after the war, 
but it was refused. One official said such a request was "an affront." 
There is clear indication that after this unpleasant interlude of war they 
will hold hands again and resume their very harmonious and beautiful 
arrangement with the cartels. 

The sinister implications of cartel, patent and other such agree- 
ments were by no means limited to the period that would follow 
the war. As Drew Pearson later reported: 

I. G. Farben's monopoly agreement with Standard Oil of New Jersey 
prevented the United States from developing synthetic rubber and kept 
the Americans without rubber tires for four years. The monopoly be- 
tween Aluminum Corporation of America and I. G. Farben kept mag- 
nesium away from the American aircraft industry and retarded our 
production of airplanes. Bausch and Lomb's secret agreement with Carl 

228 



Zeiss was extremely detrimental to the U.S. Navy on submarine 
sights . . .* 

There were other ways in which certain leading figures in Ameri- 
can industrial and financial circles pursued a business-as-usual policy 
during the years of the Second World War. 

2. "What price patriotism?" 

In the middle of the crucial month of September 1942, as the 
German Sixth Army of some 330,000 men launched a ferocious, 

* These were some of the scores of American firms listed by the Senate 
Kilgore Committee as having entered into various cartel arrangements with 
Nazi trusts: Agfa Ansco Corp.; Aluminum Co. of America; American Cyani- 
mid Co.; Bell and Howell Co.; Carbide and Carbon Chemical Corp.; National 
Aniline & Chemical Co.; Dow Chemical Co.; Eastman Kodak Co.; General 
Motors Research Corp.; Goodyear Tire and Rubber Co.; Procter and Gamble; 
Standard Oil Groups. 

"Under our agreement," stated officials of Siemens-Halske, the great German 
electrical equipment producer, in a memorandum to the American firm, Ben- 
dLx Aviation Co., on October 25, 1939, "your geographical contract territory 
includes the United States, its territories and Canada. A state of war exists at 
the present time between Canada and ourselves. Notwithstanding the war we 
are of course willing to live up to the agreement as far as possible." The 
Siemens executives went on to request that Bendix "supply no instruments, 
built under a license, if you know that they are destined for our enemies." 

A Bendix official replied: "As regards the drawings sent over, you may rest 
assured. As regards fabrication ... we wUl arrange to the best of our ability 
to keep within the orbit of domestic use." 

Siemens maintained cartel and patent agreements with numerous other Aner- 
ican concerns, including Westinghouse Mfg. Co. 

After the war, it was established that Siemens had devised and manufactured 
the gas-chamber installations at Oswiecim and other Nazi death camps, and 
had a monopoly on gas-chamber electrical equipment. One of the devices 
patented by Siemens was a ventilating system for regulating the flow of gas 
with such efficiency that at Oswiecim 10,000 persons could be killed within 
twenty-four hours . . . 

I. G. Farbenindustrie, the gigantic chemical combine, maintained cartel ar- 
rangements with more American firms than any other German trust. Among 
these American firms were Standard Oil of New Jersey, duPont de Nemours, 
and Ethyl Gasoline Corp., which was half-owned by General Motors. 

I. G. Farben was Hitler's largest financial backer and reaped the greatest 
profits in Germany from the Nazi war efi^ort. At the Nurnberg trial of Nazi 
war criminals, moreover, it was established that I. G. Farben conducted many 
wartime "experiments," with chemicals and drugs, using concentration camp 
inmates as guinea pigs. In one typical case, Farben bought 150 women from 
the Oswiecim camp, for approximately $70.00 apiece, "in contemplation of 
experiments of a new soporific drug." 

Later a Farben memorandum reported: "Received the order of 150 women. 
Despite their emaciated condition, they were found satisfactory . . . The tests 
were made. All subjects died. We shall contact you shordy on the subject of 
a new load." 

22Q 



all-out assault against Stalingrad, and as American marines and war- 
ships battled furiously to hold the Pacific island of Guadalcanal, the 
resolutions committee of the National Association of Manufacturers 
held a private meeting at the Hotel Pennsylvania in New York City. 
The purpose of the meeting was to prepare a 1943 program for 
presentation at the December NAiVl convention. 

Some of the more patriotic members of the resolutions commit- 
tee urged that the NAM program concentrate on one issue, winning 
the war. James D. Cunningham, president of Republic Flow Meters 
Company, pointed out that "if we don't win the war, there won't 
be a postwar." 

Lammot du Pont, chairman of the Board of du Pont de Nemours 
& Co., spoke in reply. A respectful hush fell over the resolutions 
committee as he began his remarks. 

"Deal with the government and the rest of the squawkers the way 
you deal with a buyer in a seller's market!" du Pont said. "If the 
buyer wants to buy, he has to meet your price. Nineteen hundred 
and twenty-nine to 1942 was the buyer's market— we had to sell on. 
their terms. When the war is over, it will be a buyer's market again. 
But this is a seller's market. They want what we've got. Good. 
Make them pay the right price for it. The price isn't unfair or un- 
reasonable. And if they don't like the price, why don't they think 
it over?" 

As his audience listened intently du Pont asked, "Are there com- 
mon denominators for winning the war and the peace? If there 
are, then, we should deal with both in 1943. What are they?" The 
famous industrialist proceeded to answer his own question: 

We will win the war (a) by reducing taxes on corporations, high 
income brackets, and increasing taxes on lower incomes; (b) by re- 
moving the unions from any power to tell industry how to produce, 
how to deal with their employees, or anything else; (c) by destroying 
any and all government agencies that stand in the way of free 
enterprise. 

The majority of the members of the NAM resolutions commit- 
tee were in hearty agreement with the views expressed by Lam- 
mot du Pont. So were certain other big businessmen. 

From the inception of the U.S. defense program in the summer 
of 1940 many leading American industrialists had stubbornly re- 
fused to manufacture weapons of war except on terms which they 
230 



themselves dictated. Failing at first to get agreement from the Ad- 
ministration on exorbitant profits, special tax privileges and other 
concessions they demanded, these industrialists staged what came 
to be known as the "sitdown strike" of American capital. 

"In the great capital sitdown strike of 1940, which delayed the 
signature of defense contracts and the start of them from May 
1940, until the beginning of October," I. F. Stone writes in his 
book, Business as Usual, "the aviation industry was used as a front 
for the rest of business in its fight for special tax privileges on 
defense contracts." 

The Temporary National Economic Committee investigating 
Concentration of Economic Power in the United States gave this 
description of the dilemma with which the Roosevelt Administra- 
tion was confronted in getting war supplies manufactured: 

Speaking bluntly, the Government and the public are "over a barrel" 
when it comes to dealing with business in time of war or other crisis. 
Business refuses to work, except on terms which it dictates. It controls 
the natural resources, the liquid assets, the strategic position in the coun- 
try's economic structure, and its technical equipment and knowledge 
of processes. The experience of the [First] World War, now appar- 
ently being repeated, indicates that business will use this control only 
if it is "paid properly." In effect, this is blackmail . . . 

The TNEC report added: 

Business apparently is not unwilling to threaten the very foundations 
of government in fixing the terms on which it will work. It is in such a 
situation that the question arises: What price patriotism? 

The attack on Pearl Harbor and the fact that the American 
nation was now engaged in a desperate struggle for survival did 
little to alter the attitude of many American big businessmen to- 
ward the war. Profit, not patriotism, remained their paramount 
concern. 

"The present grave lack of steel is the responsibility of the large 
steel companies which have sought to perpetuate their monopolies," 
Senator Harry S. Truman, then Chairman of the Senate Committee 
Investigating National Defense declared early in 1942. "Even after 
we were in the war, Standard Oil of New Jersey was putting forth 
every effort to protect the control of the German government over 
a vital war material . . . Yes, it is treason. You cannot translate it 
any other way." 

Among the prices paid to secure the cooperation of big business- 

231 



men in the American war effort was that of turning over to them 
almost absolute control of Government war production agencies. 

The extent to which these agencies were dominated by big busi- 
ness interests made a profoundly disturbing impression on William 
Allen White when he visited the nation's capital in the sum- 
mer of 1943. "One cannot move about Washington without bump- 
ing into the fact that we are running two wars— a foreign war and a 
domestic war," wrote the dean of American journalists in his £7;/- 
poria Gazette. White continued: 

The domestic war is in the various war boards. Every great com- 
modity industry in this country is organized nationally and many of 
them, perhaps most of them, are parts of great international organiza- 
tions, cartels, agreements, which function on both sides of the battle 
front. 

One is surprised to find men representing great commodity trusts 
or agreements or syndicates planted in the various war boards. It is 
silly to say New Dealers run this show. It's run largely by absentee 
owners of amalgamated industrial wealth, men, who either directly or 
through their employers control small minorit)^ blocks, closely organ- 
ized, that manipulate the physical plants of these trusts. 

These "managerial magnates," declared WiUiam Allen White, 
were determined at all costs "to come out of this war victorious for 
their stockholders" . . . 

Here are a few of the "managerial magnates" and the posts they 
occupied in the U.S. war agencies: 

William S, Knudsen, President of General Motors: Chairman of the 
War Production Board * 

Edward J. Stettinius, Jr., Chairman of the Board of U.S. Steel: Chair- 
man of the War Resources Board 

Ja?nes V. Forrestal, President of the Dillon, Read & Co., Investrnejit 
Bankers: Under Secretary, and then Secretary of the Nav)^ 

William H. Harrison, Vice-President of American Telegraph and 
Telephone Company: Director of Production, Office of Produc- 
tion Management 

Philip Reed, Chairman of the Board of General Electric Company: 
Director of the Consumer Goods Division, War Production Board 



* The political orientation of some General Motors executives was indicated 
by William S. Knudsen's comment in 1933 that in his opinion Hitler's Ger- 
many was "The miracle of the 20th century"; and by GM Vice-President 
James Mooney's acceptance in 1938 of a medal from Adolf Hitler. During t!ie 
war, James Alooney acted as the liaison between General Motors and the 
U. S. Government, in connection with war contracts. General Motors received 
contracts aggregating almost 14 billion dollars, or approximately one-twelfth 
of the total contracts awarded. 

232 



Williain M. Jeffers, Fresideiit of the Union Pacific Railroad: Direc- 
tor of the Office of Rubber Production 

Ralph K. Davies, Director of Standard Oil Cojnpany of California: 
Deputy Petroleum Administnuor 

Sain H. Husbands, Director of the Anglo -California National Bank: 
President of the Defense Plant Corporation of the Reconstruction 
Finance Corporation. 

Charles B. Henderson, Director of the Western Pacific RR: Presi- 
dent of the Aletals Resources Corporation of the RFC 

Donald AI. Nelso?j, Executive Vice-President of Sears Roebuck & Co.: 
Chairman of the War Production Board 

Leo T. Crowley, Chairman of the Board, Standard Gas <b- Electric 
Co.: Administrator of the Foreign Economics Administration 

Charles E. Wilson, President of General Electric Co.: Executive Vice- 
Chairman, WPB 

William L. Batt, Chair77ian of the Board of American Management 
Association, President, SKF Industries: Asst. Vice-Chairman WPB 

Donald D. Davis, President General Mills, Inc.: WPB Vice Chairman 

T. P. Wright, Vice-President Curtiss-W right Corp.: Aircraft Re- 
sources Control Office 

Walter S. Gifford, President of the American Telephone & Telegraph 
Co.: Member War Resources Board and Chairman Industry Ad- 
visory Committee of Board of War Communications * 

Inevitably, with control of the armaments program in such hands, 
war production became overwhelmingly the monopoly of the few 
most powerful industrial concerns in the United States. So con- 
centrated was this monopoly that, according to statistics later re- 
leased by the Senate Smaller War Plants Committee the leading loo 
corporations in America received approximately 70 per cent of all 
the v\'ar contracts. 

By the summer of 1945, twenty-six bilUon dollars' worth of new 
industrial plants and equipment— mostly subsidized with govern- 
ment funds— had been added to the nation's manufacturing facihties. 
The interests which acquired ownership of these colossal new in- 

* As early as August 1941, Representative John M. Coffee read into the 
Congressional Record a list of the names of forty-two presidents of large 
corporations who were acting as important officials in the armament program. 
Throughout the war these business leaders and hundreds of lesser executives 
of their enterprises held key posts in all government bodies connected with 
planning war production and purchasing war supplies. A postwar study of the 
War Shipping Administration revealed that 186 of its 312 officials had been on 
the payroll of shipping and shipbuilding companies, and that many of the 
remainder had been employed in associated fields like marine insurance and 
naval architecture. The case of the WSA was typical rather than exceptional. 

233 



dustrial resources were indicated in a report of the War Assets 
Administration: 

The 250 largest war manufacturing corporations operated during the 
war 79 percent of all new, privately operated plant facilities built with 
Federal funds . . . these companies have acquired 70 percent of total 
(surplus) disposals . . . 

"It is quite conceivable," the Temporary National Economic 
Committee had prophetically stated before America's entry into the 
war, "that the democracies might attain a mihtary victory over the 
aggressors only to find themselves under the domination of eco- 
nomic authority far more concentrated and influential than any 
which existed prior to the war." 

And on April 29, 1938, in a message to the Congress, President 
Roosevelt had given this eloquent warning of the dangers inherent 
to American democracy in the concentration of such economic 
power in the hands of a few men: 

Unhappy truths abroad have retaught us two simple truths about the 
liberty of a democratic people. 

The first truth is that the liberty of a democracy is not safe if the 
people tolerate the growth of private power to a point where it becomes 
stronger than the democratic state itself. That, in its essence, is fascism- 
ownership of government by an individual, by a group, or by any other 
controlling private power . . . 

Among us today a concentration of private power without equal 
in history is growing . . . 

The Second World War resulted in an unprecedented accelera- 
tion of the concentration of private powxr in the United States. 

The basic and most ominous paradox of the American war eflFort 
was the fact that while the nation w^as helping to destroy fascism 
abroad, the economic base for fascism was being laid at home. 

3. People's War 

In spite of the business-as-usual operations and voracious war 
profiteering of giant American corporations, their uninterrupted 
dealings with enemy cartel interests and their growing hold on the 
nation's economy, the American people had never before achieved 
such unity or engaged in such a prodigious democratic struggle as 
during the epochal days of the Second World War. 

Following Pearl Harbor, the manpower and industrial might of 
the land were galvanized with lightning speed into a stupendous 

234 



war effort under the leadership of President Roosevelt. Within a 
matter of months, millions upon millions of American men and wo- 
men had been mobilized into the Armed Services and transported 
overseas, or were undergoing intensive training at huge army en- 
campments throughout America; supply lines totaling more than 
56,000 miles, to ten fighting fronts, webbed the oceans and con- 
tinents of the earth; and the names of scores of far-off, hitherto 
unfamihar places— Bataan, Midway, Guadalcanal, Okinawa, Anzio, 
Buna, Guam, Wake, Tarawa, Bizerte— had become every-day words 
designating battlefields where U. S. soldiers and sailors were carry- 
ing the offensive to the Axis enemy by land, sea and air. 

By the winter of 1942 American troops, convoyed 5,000 miles 
across the Atlantic Ocean, had landed in North Africa. Ten months 
later Anglo-American armies forced Italy out of the war and drove 
the Germans back to the north of the Italian peninsula. On June 6, 
1944, in Operation Overlord, a gigantic armada of 800 warships and 
4,000 boats loaded with men and guns swarmed across the English 
Channel, debarked Allied troops in Normandy and opened up the 
long-awaited Second Front. "The history of wars," declared Marshal 
Joseph Stalin of this military achievement, "does not know any such 
undertaking so broad in conception and so grandiose in its scale 
and so masterly in its execution." 

On the homefront, American men and women gave full meaning 
to Roosevelt's phrase— Arsenal of Democracy. One year after Pearl 
Harbor, America was producing as much war material as the com- 
bined industrial plants of the Axis powers. By V-J Day, almost fifty 
bilHon dollars' worth of Lend-Lease— military supplies, petroleum 
products, food, industrial materials and equipment— had been fur- 
nished by the United States to its allies ... 

Two weeks after America entered the war, the leaders of almost 
eleven million organized workers voluntarily relinquished their 
right to strike. Joint labor-management committees, which were set 
up in every industry to increase production and arbitrate labor- 
management differences, numbered almost 5,000 by 1944, included 
50,000 committeemen and represented some 8,000,000 workers. 

"The contribution of the production front to America's success- 
ful offensives," Admiral Ernest T. King, Commander-in-Chief of 
the U.S. Fleet, declared on May 15, 1944, three weeks before the 
invasion of France, "constitutes in itself a lasting tribute to the 

235 



American workman. He is doing more than I can tell you to help 
win the war." 

Said General Dwight Eisenhower, Supreme Commander in the 
European Theatre of Operations, at the war's end: 

When great emergency demanded special effort, time and again our 
unions loyally responded. American labor rightly shares in the laurels 
won by American troops on the battlefield. 

The total membership of American trade unions grew from 8,- 
944,000 in 1940 to 14,796,000 in 1945 . . . 

In marked contrast to the Great War of 1914-1918, the Second 
World War gave rise to a new democratic spirit in America. 
"During the war," the American Civil Liberties Union later re- 
ported, "national unity and necessary government controls resulted 
in protecting and even extending democratic liberties, and in a 
remarkable lack of hysteria and intolerance." * 

The Fair Employment Practices Committee was established by 
President Roosevelt to enforce Executive Order 8802 which stated 
that "there shall be no discrimination in the employment of workers 
in defense industries or Government because of race, creed, color, 
or national origin." Commxunists were officially recognized as part 
of the broad coalition supporting the American war effort. On 
February 5, 1944, Major General James A. UUo, the Army Ad- 

* The American Civil Liberties Union was referring in its report to the 
period in which the United States was actively engaged in the war. 

During the early stages of the war— the so-called phoney war phase, when 
Britain and France were still under the influence of the Chamberlain-Daladier 
appeasement policies— there were extensive curbs on civil liberties in America 
and widespread repressions against the progressive and labor movement, which 
strongly opposed any American involvement in the war which had not yet 
become a people's war. On the other hand, America First and other pro-fascist 
isolationist forces were permitted to operate with complete freedom. This was, 
in fact, the most reactionary period of the Roosevelt Administration. 

Regarding the Smith Act, which epitomized this period, Zechariah Chafee, 
Jr., writes in Free Speech in the United States: 

"On June 28, 1940, the Alien Registration Act became law. Its official tide 
would make us expect a statute concerned only with finger-printing aliens and 
such administrative matters . . . Nor until months later did I for one realize 
that this statute contains the most drastic restrictions on freedom of speech 
ever enacted in the United States during peace. . . . the 1940 Act gives us a 
peace-time sedition law— for everybody, especially United States citizens. . . . 

"A. Mitchell Palmer is dead, but the Federal Sedition Act he so eagerly de- 
sired is at last on the statute-books. The host of over forty alien and sedition 
bills in Congress in 1939 and 1940 recalls the similar situation cxacdy twenty 
years before . . ." 

236 



jutaiit General, circularized a directive authorizing the granting of 
army commissions to known members of the Communist Party. 
When the House Military Affairs Committee instituted an investi- 
gation of this directive, and twenty-three Communist officers were 
singled out by the die-hard Chicago Tribune for special attack. 
Major General Clayton Bissel, head of the U.S. Army Intelhgence 
Corps, declared: "The Army files show the loyalty of these of- 
ficers . . . these officers have shown by their deeds that they are 
upholding the United States by force and violence." * 

Out of the global conflict between the armies of progressive 
mankind and the international forces of fascism, and in the suffer- 
ing, sacrifice and bloodshed of battle, a new and unprecedented 
unity— symbolized in the United Nations Organization— was born 
among the democratic nations of the world. The most meaningful 
expression of this unity was in the friendly relations and fighting 
alliance established between the United States and the Soviet Union, 
the two greatest powers in the world. As one anti-Soviet propaganda 
lie after another was stripped bare by the grim realities of the war, 
Americans came to regard Russia as their most valuable fighting 
ally and learned much about the true stature of the Soviet nation, 



* Of the 15,000 Communists in the U. S. Armed Forces, a number received 
commendations and decorations for bravery in action and other exemplary 
services. 

Among such soldiers was Robert Thompson, former vice-president of the 
Young Communist League and later member of the national board of the 
Communist Party, who was awarded the Distinguished Service Cross for 
heroism in the campaign at Buna, New Guinea. (In 1949 Thompson, together 
with ten other Communist leaders, was sentenced to prison for having alleg- 
edly conspired "to teach and advocate the overthrow and destruction of the 
Government of the United States by force and violence." For details of this 
case, see pages 332 ff.) 

Another Communist with a particularly distinguished record in the U. S. 
Army was Herman J. Bottcher, an anti-Nazi German who had fought with 
the International Brigade against Franco in Spain. After being promoted from 
sergeant to captain and decorated for bravery on the field of battle during 
the Buna campaign, Bottcher later became a major before he was killed in 
combat in the Philippines. In an article published in the Saturday Evening Post 
on August 13, 1949, Lieutenant-General Robert L. Eichelberger, former com- 
mander in the Buna campaign, wrote regarding Bottcher: "On my recommen- 
dation, the Allied commander commissioned Bottcher as a captain of infantry 
for bravery on the field of battle. He was one of the best Americans I have 
ever known. . . . His combat experience was extremely useful at Buna, and 
his patriotism as a new American was vigorous and detemiined." According 
to General Eichelberger's article, Bottcher was "Buna's greatest hero." 



its leaders, its industry, its army and, in Secretary of State Cordell 
Hull's words, "the epic quality of their patriotic fervor." * 

More than that, the realization came to the American people that 
the achievement of their major war aims— security, progress and 
durable peace in the postwar world— depended primarily on the 
maintenance of friendship between the Soviet Union and the 
United States. As the New York Herald-Tribune stated on Feb- 
ruary II, 1943: 

There are but two choices before the democracies now. One is to 
cooperate with Russia in rebuilding the world— as there is an excellent 
chance of doing, if we believe in the strength of our own principles 
and prove it by applying them. The other is to get involved in intrigues 
with all the reactionary and anti-democratic forces in Europe, the only 
result of which will be to alienate the Kremlin. 

"Today," wrote President Roosevelt in the draft of a speech 
during the early days of April 1945, on the eve of the San Fran- 

* In 1943 the former Republican presidential candidate Wendell L. Willkie, 
after a seven-weeks world-encircling tour by airplane, wrote a book entitled 
One World, in which he summed up his views on the Soviet Union as follows: 

"First, Russia is an effective society. It works. It has survival value. The 
record of Soviet resistance to Hitler has been proof enough for most of us, 
but I must admit in all frankness that I was not prepared to believe before I 
went to Russia what I now know about its strength as a going organization of 
men and women. 

"Second, Russia is our ally in this war. The Russians, more sorely tested by 
Hitler's might even than the British, have met the test magnificently. Their 
hatred of Fascism and the Nazi system is real and deep and bitter . . . 

"Third, we must work with Russia after the war. At least it seems to me 
that there can be no continued peace unless we learn to do so . . . Russia is 
a dynamic country, a vital new society, a force that cannot be bypassed in 
any future world." 

Regarding the Soviet war effort, Winston Churchill declared in 1943: "No 
government ever formed among men has been capable of surviving injuries 
so grave and cruel as those inflicted by Hitler on Russia . . . Russia has not 
only survived and recovered from those frightful injuries but has inflicted, 
as no other force in the world could have inflicted, mortal damage on the 
German army machine." 

Such statements by Churchill and numerous other Allied leaders are worth 
recalling in view of the postwar tendency in some quarters in America to 
belittle the Soviet war effort. The historical fact is that the Red Army en- 
gaged approximately 240 German divisions throughout four years of the war 
(during most of the war, German troops in the West did not exceed 50 
divisions). Soviet military losses, in killed, prisoners and missing, were esti- 
mated at some 6,500,000— a number almost seven times as great as the combined 
casualties of the Anglo-American armies. This figure does not include the 
enormous casualties among the civilian population of Soviet regions occupied 
by the Germans. 

238 



Cisco Conference of the United Nations, "we are faced with the 
pre-eminent fact that, if civilization is to survive, we must cultivate 
the science of human relationships— the ability of all peoples, of all 
kinds, to Uve together and work together in the same world, at 
peace. . . . The work, my friends, is peace, more than an end to 
this war— an end to the beginnings of all wars, yes, an end, for- 
ever, to this impractical, unrealistic settlement of differences be- 
tween governments by the mass killing of peoples." 

Roosevelt concluded his speech with these words: "And to you, 
and to all Americans who dedicate themselves with us to the making 
of an abiding peace, I say: The only limit to our realization of 
tomorrow will be our doubts of today. Let us move forward with 
strong and active faith." 

The speech, which was scheduled to be broadcast as the Presi- 
dent's Jefferson Day Address, was never delivered . . . 

At 5:49 P.M., Eastern War Time, on April 12, a radio program 
being broadcast over the Columbia Broadcasting System was 
abruptly halted. "We interrupt this program to bring you a special 
news bulletin from CBS World News," stated the tense voice of a 
radio commentator. "A press association has just announced that 
President Roosevelt is dead . . ." 

As the terrible and tragic news sped through the nation, men 
and women wept like children in the streets, and work stopped in 
the factories and on the farms. Grief, like a dark and sudden night, 
engulfed the land. 

To millions of Americans the very world seemed suddenly to 
change, as if an elemental part of life itself were strangely, un- 
believably and irrevocably lost '. . . 

And when the funeral train brought Roosevelt's body from 
Warm Springs to Washington and from Washington to Hyde Park, 
hundreds of thousands of mourning people stood along the many 
miles of track and clustered silently at railroad stations and cross- 
ings; and as the train went by, men bared their heads and women 
raised children in their arms, bidding their President a last fare- 
well. 

At Harmon Station on the Hudson River, as the funeral train 
passed through during the grey early morning, a man said to a 
stranger standing beside him, "I never voted for him. I should have 
but I never did. We're going to miss him, miss him terribly." 

239 



A small boy asked his father, "Daddy, when Pvoosevelt died did 
he leave treasures in his house?" 

The father answered, "Yes, he left a lot of treasures, but his 
house wasn't just the building where he lived, his house was ail 
America, and the treasures he left belong to all of us". . . . 

In every part of the world countless miUions shared America's 
sorrow. Throughout the British Empire, the Union Jack was or- 
dered to half-mast. Black-edged red flags were hoisted above the 
Kremlin in Moscow and in the city squares. In Nanking and Paris, 
in Warsaw and Manilla, in Prague, Mexico City, Bombay, Budapest, 
and hundreds of other cities and towns on every continent men and 
women grieved and wept. 

Never before had the death of any American been so widely 
mourned among the peoples of the world. 

On the evening of April 12, Vice-President Harry S. Truman 
was svv^orn in by Chief Justice Harlan Fiske Stone at the White 
House as President of the United States. 

Three weeks after Roosevelt's death, armored troops of the Red 
Army stormed and captured Berlin. On May 8, 1945, Field Marshal 
Wilheim Keitel of the German High Command, in the presence of 
Am^erican, British and Russian generals signed the final act of un- 
conditional surrender of the forces of the Nazi Wehrmacht. 

In mid-August the Government of Japan accepted the terms laid 
down in the Potsdam Declaration. On September 2, aboard the U. S. 
battleship Missouri in Tokyo Bay, the official instrument of sur- 
render was signed by Foreign Minister Magoru Shigemitsu on be- 
half of the Japanese Emperor. 

The Second World War was over. 



240 



BOOK FOUR: THE NEW INQUISITION 



Indeed, if such reaction should develop— if history were to 
repeat itself and we were to return to the so-called "normalcy" 
of the 1920s— then it is certain that even though we shall have 
conquered our enemies on the battlefields abroad, we shall 
have yielded to the spirit of Fascism here at home. 

President Franklin D. Roosevelt 
January //, 1^44 



Chapter xiii 

DEATH OF THE NEW DEAL 



This war that I saw going on all around the world is, in 
Mr. Stalin's phrase, a war of liberation. It is to liberate some 
nations from the Nazi or the Japanese Army, and to liberate 
others from the threat of those armies. On this much we are 
agreed. Are we agreed that liberation means more than this? 
Specifically, are the thirty-one United Nations now fighting 
together agreed that our common job of hberation includes 
giving to all peoples freedom to govern themselves as soon 
as they are able, and the economic freedom on which all 
lasting self-government inevitably rests? . . . 

Our very proclamations of what we are fighting for have 
rendered our own iniquities self-evident. When we talk of 
freedom and opportunity for all nations, the mocking para- 
doxes in our own society become so clear they can no longer 
be ignored. If we want to talk about freedom, we must mean 
freedom for others as well as ourselves, and we must mean 
freedom for everyone inside our frontiers as well as outside. 

Wendell Willkie, One World, ip4S 

According to the London Tmies, the expression "iron cur- 
curtain" was coined by von Krosigk, Hitler's Minister of 
Finance, and was used by Goebbels, in his propaganda for 
some years before iMr. Churchill adopted it. 

Bartletfs Familiar Quotations, 
1^48 Editio?i 



I. War's Legacy 

Twenty million men had died in battle. Tens of millions of men, 
women and children had perished by starvation and disease, and 
in concentration camps and death chambers. Great warehouses at 
Nazi extermination centers remained still crammed with the myriad 
possessions of the murdered dead, with clothing, children's toys and 
242 



women's hair. Where cities world-famed for their beauty had once 
stood, there now stretched endless miles of gutted skeletons of 
buildings and mountainous piles of rubble. Countless human beings 
wandered destitute and homeless across the blood-soaked continents 
of Europe and Asia. In the wake of the war stalked famine, plague, 
misery and mass impoverishment. 

And all of this ineffable suffering and loss had stemmed from the 
fierce Counterrevolution following the First World War, and from 
the savage measures of world reaction during the ensuing years to 
frustrate the democratic aspirations of the masses of mankind. It 
was this global conspiracy to protect the privileges of the few by 
the repression and enslavement of the many that had conjured 
Fascism into being. It was this treason against the people that had 
culminated inevitably in the Second World War. 

Yet out of this dark and dreadful epoch of bloody terror, anti- 
democratic intrigue, treachery, fascism and total war, the peoples 
of the world had triumphantly emerged with greater power in 
their hands than ever before in history. 

The monstrous prison-empire of the Axis lay in crumbled ruins, 
and the liberated milUons were marching inexorably toward the 
achievement of their ancient goals. In Eastern Europe, great sec- 
tions of the land were being divided up among the impoverished 
peasantry, and prodigious reconstruction programs had been swiftly 
begun. Indonesia, IndoChina, Palestine, Korea and other colonial 
and semi-colonial parts of the world were in a ferment of popular 
revolt. Across the great land mass of China, a people's revolution 
was gathering momentum like a vast and irresistible storm. 

In every land the hearts of men and women were filled with hope 
for a new era of freedom, friendship among the nations and lasting 
peace on earth. 

The cornerstone of world peace and security was the United 
Nations Organization; and the fruitful functioning of this body, all 
knew, depended essentially on the maintenance of the close alliance 
that had been forged during the war between the Western democ- 
racies and the Soviet Union. 

But on both sides of the Atlantic there were powerful reaction- 
ary forces which had Httle interest in the maintenance of this al- 
liance. Their primary concern, as after the First World War, was 
to protect their vested interests, dam the swelling tide of demo- 

243 



cratic revolt and prop up the archaic system of the past. And once 
again, linked with the struggle against world democracy, the coun- 
terrevolutionary cry for an international crusade against "Com- 
munism" was heard. 

Barely six months after V-J Day, on the heels of the smashing 
defeat of his Tory Party in England and faced with a mounting 
crisis in the British Empire, Winston Churchill rediscovered the 
"menace of Bolshevism." In a widely pubHcized speech delivered 
in the United States on March 5, 1946, Churchill called for an anti- 
Soviet alliance between Great Britain and the United States against 
"the growing challenge and peril to Christian civilization" from 
Russian Communism. 

Churchill's internationally sensational speech was deUvered on 
the occasion of his being awarded an honorary degree by West- 
minster College in Fulton, Missouri. The little-known college was 
located approximately 150 miles from President Truman's home- 
town of Independence; and the President who had previously read 
Churchill's speech, was conspicuously present at the time of its 
delivery. 

Following his inauguration. President Truman had fervently 
echoed Roosevelt's repeated warnings against disunity among the 
United Nations. But almost as soon as Truman took office, members 
of his Administration embarked upon a course which would inevi- 
tably create dissension within the United Nations . . . 

The first serious split in the United Nations developed at the 
San Francisco Conference in the summer of 1945. The issue of 
dispute was whether or not Argentina should be invited to join 
the Conference and become a UN member. British and American 
delegates supported and secured Argentina's admission, against the 
opposition of the Soviet delegate, Vyacheslav Molotov. 

Some months later, the U.S. Government released an ofiicial 
report entitled Blue Book on Argentina which conclusively proved 
the "Nazi-Fascist character of the Argentine regime" and estab- 
lished that the Argentine "mihtary government collaborated 
v/ith enemy agents for important espionage and other piu*poses 
damaging to the war effort of the United Nations" . . . 

The most basic aim of the United Nations was the complete 
extirpation of fascism in the world; but in forcing Argentina's 
admission to the San Francisco Conference, the American and Brit- 
244 



ish delegates had championed, not opposed, the cause of a fascist 
power. In this fashion, the Anglo-American Governments initiated 
the so-called "get-tough-with-Russia" policy. 

During the months that followed, this policy was to become the 
dominant political orientation of the Governments of Great Britain 
and the United States. 

Nowhere was the postwar betrayal of the fundamental principles 
of the United Nations more flagrantly demonstrated than in the 
policies pursued by the British and American Governments toward 
their recent arch-enemy, Germany. 

Months after Germany's surrender, uniformed units of German 
troops totaling a force of almost half a million men were still intacl 
in British-occupied German territory; and in the American zone 
of occupation, the U. S. Army was equipping and arming thousands 
of fascist Polish, Yugoslavian and Ukrainian troops to serve in "labor 
service companies" and as "guards." "Most members of these service 
companies," reported Raymond Daniell in a dispatch to the New 
York Times on February 3, 1946, "are as anti-Semitic and anti- 
Russian as any Nazi." Many of them, according to Daniell, had 
fought with the Nazi Wehmacht on the Eastern Front * . . . 

Following V-E Day, Senator Harley M. Kilgore, Chairman of 
the Sub-Committee of the Senate Military Affairs Committee, re- 
peatedly warned that the German cartel apparatus, instead of being 
destroyed, was being deliberately rebuilt in the western zones of 
occupation. By the spring of 1946, I. G. Farben stock had risen on 
the Munich and Frankfurt Stock Exchanges from 68 to 142 Vz- 

"It is still not clear to me whether Mr. Byrnes intends to scrap the 
Allied program of Quebec, Yalta and Potsdam . . . ," declared 
former Secretary of the Treasury Henry Morgenthau, Jr., in a 
radio address on May i, 1946, denouncing the poUcy being pursued 

* On March 31, 1948, John O'Donnell reported in the Washington Times 
Herald: ". . . we are now about to make military sense in Germany. Despite 
denials from some sources, we have drawn up plans to reactivate some of 
those tough fighting German Panzer and SS divisions, give them plenty of 
food and first-rate American equipment . . . The Germans, always good 
soldiers, would rather fight against their historic enemies— the Mongol-Slavs of 
eastern Europe— than against their blood cousins to the west— Scandinavians, 
British, Americans and French . . . Years and years ago, we pointed out that 
FDR was backing the wrong horse in this war— that the continent of Europe, 
so far as sternly isolationist America was concerned was better off under 
Germanic rule than under Joe Stalin," 

245 



in Germany by Secretary of State James F. Byrnes. "If it is Mr. 
Byrnes' intention to scrap the Potsdam pact . . . then I prophesy 
we are simply repeating the fatal mistakes of Versailles, and laying 
the foundations of World War III." 

On September 1 1, 1946, Edwin Hartrich of the Neiv York Herald 
Tribune reported in a dispatch from Germany that "German busi- 
nessmen and industrialists" were satisfied that "America and Britain 
have definitely decided to build up western Germany as a balance 
against the Russian zone." 

The replacement of James F. Byrnes by General George C. Mar- 
shall as Secretary of State in January 1947 brought about no change 
in American foreign policy. Shortly afterwards, Undersecretary of 
State Dean Acheson declared: 

We must push ahead with the reconstruction of those two great work- 
shops of Europe and Asia— Germany and Japan . . . We must take what- 
ever action is possible immediately, even without full Four Power agree- 
ment, for a larger measure of European, including German, recovery.* 

In the Far East, as in Europe, the American get-tough-with- 
Russia pohcy went hand in hand with the support of the militarists 
and reactionaries. 

Following Japan's surrender, the American Army in China pro- 
ceeded to train and equip forty Kuomintang divisions, numbering 
more than 700,000 men— a force twice as large as the American 
Army had trained and equipped during the entire Second World 
War. With GeneraHssimo Chiang Kai-shek desperately striving to 
keep his feudal corrupt regime in power, the Truman Administra- 
tion granted the Kuomintang more than $600,000,000 in loans for 
the purchase of American surplus arms from the Pacific Islands. 
By 1947 the total value of American war material and other aid 
given to Chiang Kai-shek exceeded four billion dollars. 

As early as November 26, 1945, Congressman Hugh DeLacey of 
Washington had warned that Truman's Far Eastern pohcy repre- 
sented— 

the logic of American big businessmen, wanting unrestricted economic 
exploitation of Asia. It is the logic of dollar imperialism. It is the logic 
of a new world war, this time against the Soviet Union, launched from 
great bases in the Pacific, from a Japan whose militarists we have not yet 
rooted out, from anti-Communist bases in North China . . . 



* On January 7, 1949, Dean Acheson was appointed Secretary of State. 
246 



The continuation of this poUcy, declared DeLacey, would make 
"civil war inevitable" in China . . .* 

On March 12, 1947, the get-tough- with-Russia policy reached 
an historic climax. On that day, President Truman appeared before 
a joint session of the United States Congress to deliver a momentous 
address requesting a loan of $400,000,000 and military assistance 
for the Greek and Turkish Governments. The acknowledged pur- 
pose of the loan, although it was not specifically mentioned as such 
by Truman, was to halt "Soviet expansionism" and the spread of 
"Bolshevism" in Europe. 

The Chicago Daily News characterized Truman's address as an 
"open invitation to war" with Soviet Russia. 

"It is not a Greek crisis that we face, it is an American crisis . . .," 
former Vice-President Henry Wallace, who had been ousted as 
Secretary of Commerce because of his opposition to Truman's 
foreign poHcy, declared over a nationwide radio hook-up on the 
day after Truman's speech. "When President Truman proclaims the 
world-wide conflict between East and West, he is telling the Soviet 
leaders we are preparing for eventual war . . ." 

While oflicially presented to the American public in terms of an 
anti-Communist crusade, the Truman Doctrine reflected other con- 
siderations of a more compeUing, if unoflicial, nature. As Tijne mag- 
azine reported on March 24, 1947: 

* By the summer of 1946, civil war was raging in China. At first the Com- 
munists, vastly outnumbered and confined to a few provinces in North China, 
suffered setbacks at the hands of Chiang Kai-shek's well-equipped troops. 
Within two years, however, as increasing millions rallied to the support of the 
Communists, their armies assumed the off^ensive on one front after another. 
In October 1948, Mukden, chief city of industrial Manchuria, fell to the 
Chinese Red Army. In the following twelve months, in an extraordinary mili- 
tary campaign, the Communist armies swept across the vast expanse of China, 
with the Nationalist forces reeling before them. In rapid succession Peiping, 
Nanking, Shanghai, Canton and Chungking fell to Mao Tze-tung's victorious 
forces. 

On December 9, 1949, Communist troops occupied Chengtu, the last Na- 
tionalist stronghold, and reached the Indo-Chinese border. Except for the 
island of Formosa, to which the nationalist remnants had fled, the entire nation 
of 470,000,000— almost one-fourth the population of the world— had been won 
by the Chinese Communists. 

In August 1949, in a letter sent to the President along with a State Depart- 
ment White Paper on Sino-American relations. Secretary Acheson declared 
that "the ominous result of the Civil War in China was beyond the control 
of the government of the United States." Acheson added that "nothing . . . 
was left undone" by America to prevent the outcome of the war. 

247 



The loud talk was all of Greece and Turkey, but the whispers behind 
the talk were of the ocean of oil to the south. 

As the U.S. prepared to make its historic move, a potent group of 
U.S. oil companies also came to an historic decision. With the tacit ap- 
proval of the U.S. and British Governments, the companies concluded 
a series of deals— biggest ever made in the blue-chip game— to develop 
and put to full use this ocean of oil. . . . Jersey Standard and its partners 
were going to spend upwards of $300,000,000 in the stormy Middle 
East to bring out this oil. 

The headlines of the feature article in Business Week on March 
22 read: "New Democracy, New Business; U.S. Drive to Stop 
Communism Abroad Means Heavy Financial Outlays for Bases, 
Relief and Reconstruction. But in Return, American Business is 
Bound to Get New Markets Abroad." 

"All of this," wrote Ralph Henderson, financial editor of the 
New York World-Telegrmii, "is a much safer and profitable state 
of affairs for investors. It is good new^s of a fundamental character." 

At the same time, American big businessmen were finding equal 
cause for enthusiasm in the postwar domestic policies of the Tru- 
man Administration. 

2. Return of Herbert Hoover 

Less than two months had elapsed since the death of Franklin 
D. Roosevelt when, on the morning of May 28, 1945, Herbert 
Hoover entered the White House for the first time in twelve years. 

Hoover was a few^ minutes early for his appointment wdth Presi- 
dent Truman, and, while waiting, he strolled slowly through some 
of the rooms he had not seen since March 1933. The former Presi- 
dent was now seventy years old; his white hair was sparse, his face 
wrinkled and pudgy; but, as the journalist Sidney Shallet was to 
report a few months later. Hoover felt like "a new man" . . . 

The conference between Truman and Hoover lasted for three 
quarters of an hour. The news photographers w^ere then called in 
to take pictures of the two men shaking hands and smiHng affably 
at each other. 

As Hoover left the White House, newsmen crowded around him. 
"What did you discuss?" asked one of them. 

Hoover's face crinkled into a smile. "The President of the United 
States," he said, "has the right to make his ow^n announcement 
concerning anything he may have said to his visitors or what visitors 
248 



may have said to him. I think that is all you will get from me at 
the present time." 

But Truman's action in summoning the ex-President to the White 
House spoke for itself. 

"The capital;" reported Time magazine on June 4, "buzzed with 
rumors that Herbert Hoover . . . was to be put back into harness, 
if only as an adviser. Whatever the outcome, Harry Truman's invi- 
tation had been as shrewd as it was generous. In one master stroke, 
he had won the applause of Republicans . . . [and] had made it 
plain that he is not mad at anybody, an attitude which he further 
dehneated by inviting both Thomas E. Dewey and Alfred Landon 
to confer with him 'any time they might be in Washington.' " 

Two days after the conference between Truman and Hoover, an 
editorial in the Wall Street Journal enthusiastically observed: 

"The crusading days of the New Deal as directed from the White 
House are over." 

At the time of Hoover's visit to the White House, a number of 
New Dealers, including three former members of the Roosevelt 
cabinet, had already been dropped from office, and many more 
such changes were in the immediate offing. 

"The Truman Cabinet appointments are regarded in Congres- 
sional circles as constituting a major alignment in Government 
pohcy," reported the official pubhcation of the National Associa- 
tion of ^Manufacturers on July 7, 1945. "Quietly, the new President 
is removing the New Deal element from high authority and replac- 
ing it with men recognized as Democrats in the sense this word 
was used before 1932. The effect upon business will be a definite 
lessening of much of the sticky humidity which has prevailed for 
the last 12 years." 

Among the "Democrats in the sense this word was used before 
1932" and the non-Democrats, in any sense of the word, to assume 
key posts in the Truman Administration were the following indi- 
viduals: 

James V. Forrestal, Secretary of Defense: former president of the 
investment banking firm of Dillon, Read & Co., and ex-Secretary of the 
Navy. In the words of Time, Forrestal was "a lone wolf who came up 
the hard way." * 



* During the 1920's Forrestal's firm, Dillon, Read & Co., floated several 
hundred million dollars in loans to German and Italian trusts, and to South 

249 



W. Averell Harriman, Secretary of Commerce: partner in the bank- 
ing firm of Brown Brothers Harriman & Co.; chairman of the board 
of Union Pacific Railroad Co., and director in five other major rail- 
roads; director in Guaranty Trust Co., Western Union Telegraph Co., 
and other large concerns. 

Arthur M. Hill, Chairman of the Natiojial Resources Board: president 
of the Atlantic Greyhound Corp. 

Sidney W. Soiiers, Secretary of the National Security Council: 
former vice-president of the General American Life Insurance Corp. 

Robert A. Lovett, Undersecretary of State: partner in the banking 
firm of Brown Brothers Harriman & Co. 

Brigadier General Charles E. Saltzman, Assistant Secretary of State: 
former vice-president of the New York Stock Exchange 

Lewis W. Douglas, Ambassador to Great Britain: former president of 
the Mutual Life Insurance Co., ex-vice president American Cyanamid 
Co., and director of General Motors 

Archibald Wiggins, Undersecretary of the Treasury: former presi' 
dent of the Trust Company of South Carolina, and former president of 
the American Bankers Association 



American dictatorships. (See page 8i). At the same time, Dillon, Read was 
making major investments in the Stinnes' coal and iron interests and in the 
Vereinigte Stahlwerk steel trust in Germany, two concerns which were help- 
ing finance the growing Nazi movement. 

Regarding the Deutsche Bank and the Dresdner Bank, two German banking 
houses with which Dillon, Read & Co. was associated, the American Military 
Government's Weekly hiformation Bulletin reported on June 30, 1947: 'They 
participated actively in building the Nazi war machine, and the exploitation of 
Europe . . . Certain top officials of the Dresdner Bank are facing indictment 
and trial at Nuernberg for crimes." 

On Forrestal's resignation from the post of Secretary of Defense in March 
.1949, Louis A. Johnson was appointed as his successor. An affluent corpora- 
tion lawyer and former Assistant Secretary of War, Johnson— like his pre- 
decessor—had for some time been a prominent figure in international financial 
circles. In March 1943, Johnson was appointed a director of Consolidated 
Vultee Corp., which had been heavily backed by the Anglo-German- Ameri- 
can Schroeder banking interests. In April 1943, Johnson became a direc- 
tor of I. G. Farben's U.S. subsidiary. General Aniline and Film Co., and 
subsequently president of a General Aniline affiliate. 

In the summer of 1949, Johnson's name was prominendy connected with a 
major scandal involving large Government orders for B-36 bombers, after the 
Army had practically decided to abandon building this model bomber. On 
June 6, 1949, Life magazine stated: "Congressman Van Zandt . . . pointed out 
that Louis Johnson was formerly a director of Consolidated Vultee, which 
builds the B-36, and that Secretary of Air Stuart Symington is reported to be 
a frequent house guest at the California ranch of Floyd Odium, the financier 
who now controls Consolidated Vultee. Odium, according to gossip Van 
Zandt had heard, had helped Louis Johnson raise anywhere from $1.5 to %6.$ 
million for the Democratic campaign chest." 

(See page 202, for data on Louis Johnson's alleged interest in the abortive 
fascist putsch exposed by General Smedley Butler in 1934.) 



Thomas B. McCabe, Chairman of the Federal Reserve Board: presi- 
dent of the Scott Paper Co. 

William M. Martin, Chairjnan of the Export-Import Bank: former 
president of the New York Stock Exchange 

William S. Symingto77, Secretary of the Air Force: president of the 
Emerson Electrical Manufacturing Co. 

Arthur Barrows, Undersecretary of the Air Force: former president 
of Sears, Roebuck & Co. 

Cornelius Vanderbilt Whitney, Assistant Secretary of the Air Force: 
chairman of the board of Hudson Bay Mining and Smelting Company 

Thomas H. Har grave, Chairman of the Munitions Board: president of 
Eastman Kodak Corp. 

Kenneth C. Roy all, Secretary of the Army: Chairman of the Board of 
Mebane-Royall Co. 

Major Gejieral William H. Draper, Undersecretary of the Army: 
former vice-president of the banking firm of Dillon, Read & Co. 

Under the aegis of Secretary of State Marshall, a constantly 
growing number of professional soldiers joined the diplomatic corps 
and assumed key posts in the State Department. Before long, ten 
out of twenty of the Department's executive officers were military 
men, and the Army and Navy BullettJi could claim, "Today the 
Army has virtual control of foreign affairs" . . . 

"Into the vacuum created by the exodus of the New Dealers," 
noted the New Republic, "two groups have moved— the Brass Hats 
and the Wall Streeters." 

There was a third group. Washington correspondents dubbed it 
the Missouri Gang. 

3. Missouri Gang 

The Missouri Gang was composed of old cronies of President 
Truman and buddies who had served with him in the First World 
War. They formed what soon came to be known as the President's 
"kitchen cabinet." * 



* A one-time haberdasher in Independence, Missouri, whose business had 
failed in the early 1920's, Harry S. Truman had become involved in pohtics as 
a protege of the notorious, corrupt Pendergast machine in Missouri. Boss 
Tom Pendergast obtained a county judgeship for Truman in 1922 and then 
backed Truman's election to the Senate in 1934, declaring he wanted "his own 
emissary" in the Senate. 

During the following years, Truman maintained close connections with 
Pendergast and his political machine. When Pendergast was found guilty of 
tax evasion in 1939 and sent to jail, Truman remained a staunch supporter of 



One of the most influential members of the Missouri Gang was 
Harry H. Vaughan, a burly coarse-humored former reserve corps 
colonel who had been Truman's secretary in the Senate. Truman 
and Vaughan had been close friends since the First World War, 
when both had served as officers in artillery batteries from Mis- 
souri. Immediately upon Truman's inauguration, Vaughan became 
the President's military aide and shortly afterwards was pro- 
moted to Major General. General Vaughan soon had his hands in 
the affairs of practically every important government agency and 
was using his newly acquired influence to benefit various acquain- 
tances. "I'm considered in many circles to be very unethical, and 
I'm sure I will continue to be," the General pubUcly replied to 
critics of his conduct. "There are only two people I have to please 
—Mr. Truman and Mrs. Vaughan. As long as I please them, I'm 
satisfied." * 

Another of the Missouri Gang was James K. Vardaman, Jr., son 
of the late Senator James K. Vardaman who during World War I 

his former political mentor. Later, as President, Truman removed from office 
the U.S. district attorney who had prosecuted Pendergast. 

Truman's record in the Senate was undistinguished until in 1941 he was 
appointed chairman of the Senate Committee Investigating National Defense. 
Largely through the work of capable staff members, this committee achieved 
considerable prominence. 

In 1944, Truman was selected at the Democratic National Convention as a 
compromise candidate for the vice-presidency, in order to prevent the bolting 
of the Southern Democrats and rightwingers who opposed the re-nomination 
of Henry A. Wallace as Roosevelt's running mate. 

* In the summer of 1949, acting on disclosures by the Neiv York Herald 
Tribune a Senate  from the Justice Department, beginning 
in late October, in order to make a lecture tour. The subject of his 
lectures was to be the fascist menace in the United States and the 
methods by which the Nazis had sought to subvert American de- 
mocracy. 

On October 22, at Swarthmore College in Pennsylvania, Rogge 
delivered the first lecture of his tour. Among those Americans men- 
tioned by Rogge as having proved useful to the Nazis was ex- 
Senator Burton K. Wheeler . . . 

On the morning of October 25, Rogge left New York by plane 
for the west coast to keep a speaking engagement at Seattle, Wash- 
ington. Encountering bad weather after nightfall, the plane made 
an unscheduled stop for refuehng at Spokane. At the airport Rogge 
was informed that there was no room for him on the plane for the 
remainder of the trip, and that he would have to make other ar- 
rangements for flying on to Seattle. He was also told that a "Mr. 
Savage" was on his way to the airport to see him. 

Soon afterwards, a stranger approached Rogge at the airport. 
*'My name's Savage," he said. "I'm from the Federal Bureau of In- 
vestigation." He handed Rogge an unsealed envelope. 

The envelope contained a letter to Rogge bearing the typewritten 
signature of Attorney General Clark. The letter curtly notified 
Rogge that he was dimissed from the Justice Department "as of 
the close of business this day" . . . 

On October 24, the day before Rogge was discharged, ex-Senator 
Wheeler had visited the White House and conferred privately with 
President Truman. That evening the President had telephoned At- 
torney General Clark. A few hours later, the Attorney General 
called a midnight press conference and announced that Assistant 
Attorney General O. John Rogge was being dismissed from the 
Justice Department for having "wilfully violated . . . long-standing 
rules and regulations ..." 

Almost twenty-four hours elapsed after this press conference be- 
fore Rogge himself was notified that he had been discharged. 

Commenting on Rogge's dismissal, I. F. Stone noted in PM that 
"the Truman Administration and Tom Clark have no stomach for 
a fight which involves Lindbergh, Coughlin, Wheeler, Ford." 

259 



Stone added: 

The intellectual climate produced by the anti-Red, anti-Soviet tom- 
toms of the government and press is hardly conducive to the criminal 
prosecution of people whose stock in trade has always been— as was 
Hitler's— that they are a bulwark against Bolshevism. 

It was not former pro-Nazis but liberals and anti-fascists 
who were now being investigated by Government agencies in the 
United States. 

A leading role in these investigations was being played by the 
House Committee on Un-American Activities. 

5. Sound and Fury 

Toward the end of the war, with public resentment against the 
disruptive practises of the Un-American Activities Committee at a 
peak, Chairman Martin Dies had withdrawn as a congressional can- 
didate and three other Committee members had been crushingly 
defeated at the polls. At the time, it was generally believed that the 
Committee was about to be disbanded by Congress. Then, on Jan- 
uary 3, 1945, during the opening session of the 79th Congress, a 
surprise bill was passed by a vote of 207-186 converting the Com- 
mittee into a permanent congressional body. 

The congressman responsible for this legislative coup was Rep- 
resentative John E. Rankin of Mississippi. 

A rabid anti-Semite and white supremacist, the wizened, sallow- 
faced congressman from Mississippi had been described by the of- 
ficial Nazi propaganda bulletin, Welt-Dienst (World Service) as 
"an outstanding American." 

Under Rankin's leadership,* in the months following V-J day, 
the Un-American Activities Committee launched an all-out anti- 
Communist crusade. 

In an incessant stream of lurid press releases, pubHc statements 



•Nominally, the chairman of the Committee was Representative Edward 
J. Hart of New Jersey. The actual head of the Committee was Representative 
Rankin. When Hart resigned as chairman in July 1945, and was succeeded bv 
Representative John S. Wood of Georgia, the change did not affect Rankin's 
domination of the Committee. 

In January 1947, Representative J. Parnell Thomas of New Jersey assumed 
the chairmanship. 

260 



and "official reports," the Committee proclaimed that "Soviet im- 
perialism" was plotting world domination and that a Kremlin- 
directed network of saboteurs and atom bomb spies honeycombed 
the United States. Professional anti-Soviet propagandists, Com- 
munist renegades, and other "expert witnesses" appeared at Com- 
mittee hearings and told hair-raising tales of "Red spy rings" and 
Soviet war preparations against America. 

Typical of the "authoritative" testimony at the Committee's hear- 
ings was that given by the anti-Soviet ex-diplomat, William C. 
BuUitt. Here are excerpts from BulHtt's testimony: 

RANKIN: Is it true that they eat human bodies there in Russia? 

BULLITT: I did see a picture of a skeleton of a child eaten by its 
parents. 

RANKIN: Then they're just like human slaves in Russia? 

BULLITT: There are more human slaves in Russia than ever existed 
anywhere in the world. 

RANKIN: You said before that sixty percent of the Communist 
Party here are aliens. Now what percentage of these aliens are Jews? 
... Is it true, Mr. Bullitt, that the Communists went into the southern 
states and picked up niggers and sent them to Moscow to study revolu- 
tion? Are you aware they teach niggers to blow up bridges? 

There was nothing new in the fantastic tales told by Bullitt and 
other Committee witnesses. Since 1938 these tales had been the 
regular stock in trade of the Un-American Activities Committee. 
But now they were presented to the American people by the na- 
tion's press and radio as news of momentous importance, and were 
even cited by high-ranking Government officials as data vitally af- 
fecting America's domestic and foreign policies. 

Behind the facade of investigating "Soviet plots" and "Communist 
intrigue," the Un-American Activities Committee conducted a 
steadily broadening offensive during 1946- 1947 against the demo- 
cratic institutions and constitutional rights of the American people. 
The Committee launched "investigations" of numerous progressive 
and anti-fascist organizations which it characterized as "subversive." 
These were some of them: 

Civil Rights Congress 

Independent Citizens Committee of the Arts, Sciences and Professions 

National Committee to Combat Anti-Semitism 

National Council of American-Soviet Friendship 

Unitarian Service Committee 

261 



Veterans Against Discrimination 
Joint Anti-Fascist Refugee Committee * 

The most overt and brazen of the Committee's attacks on free- 
dom of expression in America was directed against the motion pic- 
ture industry. 

On October 20, 1947, after elaborate promotional preparations, 
the Committee opened public hearings on "subversive activities" in 
Hollywood. Two groups of witnesses had been subpoenaed. One 
group was composed of "friendly witnesses," mostly famous movie 
stars, through whose "expert" testimony the Committee intended to 
reveal the extent to which Communists had subverted the film in- 
dustry. The "unfriendly witnesses" were nineteen screen writers, 
actors and directors, who, according to the Committee, were lead- 
ing figures in Hollywood's "Red underground." t 

*The tactics employed against the Joint Anti-Fascist Refugee Committee 
were t}^pical. They represented, in the words of Albert Deutsch of PM, "not 
an investigation but an inquisition." 

Since 1942, the Joint Anti-Fascist Refugee Committee had been engaged in 
raising funds and medical supplies, and maintaining hospitals and orphanages, 
to aid anti-fascist refugees abroad, particularly Spanish Republicans who had 
emigrated to France and Mexico after Franco's fascist regime came into power 
in Spain. 

Early in 1946 the Un-American Activities Committee denounced the Joint 
Anti-Fascist Refugee Committee as a "Communist-front organization," and 
demanded that the relief agency surrender all its books and records. When 
the officers of the Refugee Committee refused to comply, its Chairman (the 
eminent surgeon. Dr. Edward K. Barsky), its Executive Secretary, and the 
sixteen members of its executive board were cited for contempt of Congress, 
tried and found guilty in Federal Court, and, on January 16, 1947, sentenced 
to prison terms ranging from three to six months and fines of $500 each. 

Other persons indicted during the postwar period at the instigation of the 
Un-American Activities Committee, on charges of contempt of Congress in- 
cluded George Marshall, chairman of the Civil Rights Congress; Reverend 
Richard Morford, executive director of the National Council of American- 
Soviet Friendship; the ten Hollywood writers, actors and directors referred to 
above; and Leon Josephson, a Communist lawyer and former anti-Nazi 
underground fighter in Germany, who served a one-year prison sentence for 
his refusal to testify before members of the Committee on the grounds that 
this agency was unconstitutional. 

In June 1947, the general secretary of the American Communist Party, 
Eugene Dennis, was tried on contempt charges brought by the Un-American 
Activities Committee, found guilty and sentenced to one year in prison and 
a fine of $1,000. On March 27, 1950, the conviction was upheld by the U. S. 
Supreme Court. 

t Among the "unfriendly witnesses'* were Albert Maltz, author of such 
novels as The Cross and the Arrow and winner of the 1938 O. Henry Me- 
morial Award; John Howard Lawson, author of the play Processional^ and 

262 



From the start, the hearing assumed the character of a fantastic 
extravaganza. A battery of newsreel cameras with sound equipment 
recorded every gesture and word of the witnesses and Committee 
members. Reporters wore dark glasses to protect their eyes from 
the blazing Klieg lights. Special provisions had been made for tele- 
vision and radio coverage. Periodically, Chairman Thomas inter- 
rupted the proceedings to help cameramen secure dramatic picture 
effects. 

Here is how Ruth Montgomery of the New York Daily News 
described the testimony of one of the Committee's key witnesses, 
Robert Taylor: 

More than i,ooo shoving, sighing women today mobbed the House 
caucus room to see the film star Robert Taylor. The hearing room was 
jammed to capacity, with hundreds of curious lining the halls outside. 
A 65-year-old woman, scrambling on a radiator for a better look at the 
screen star, fell and struck her head. The clothes of others were torn 
in the mad scramble to the door . . . Wild applause frequently punctu- 
ated Taylor's testimony. 

With his head carefully cocked at the proper angle for the pho- 
tographers, Taylor solemnly declared: "I personally believe the 
Communist Party should be outlawed. If I had my way, they'd all 
be sent back to Russia." Asked to name some of the Communists in 
the motion picture industry, Taylor mentioned the names of two 
actors. "They're the only two I can think of at the moment,'* he 
said. He paused^ then added, hesitantly, "I don't know whether 
they're Communists." 

For five days, other "friendly witnesses" gave similar testimony 
regarding "Communist activities" in Hollywood . . . 

When the "unfriendly witnesses" took the stand, they were per- 
emptorily forbidden to read prepared statements and aggressively 
questioned regarding their political and trade union affihations. 
When they challenged the constitutionaHty of such questions. 



well-known scholar and historian; Dalton Trumbo, author of the novel Johnny 
Got His Gun; Samuel Ornitz, author of Haunch, Faunch and Joivl; and Ring 
Lardner, Jr. The motion pictures on which these writers had worked had 
included such outstanding films as Pride of the Marines; Destination Tokyo; 
Action on the North Atlantic; Brotherhood of Man; and The House I Live In. 
Two other "unfriendly witnesses" were Adrian Scott and Edward Dmytryk, 
respectively producer and director of the widely acclaimed film, Crossfire. 

263 



they were curtly ordered from the stand and cited by Chairman 
Thomas for contempt. 

Despite every effort to browbeat them, the "unfriendly wit- 
nesses" refused to be cowed. 

"In this country we have the secret ballot and how a man votes 
is his own affair," stated author Alvah Bessie. "General Eisenhower 
has refused to reveal his pohtical affiliation and what's good enough 
for him is good enough for me." 

Meanwhile, popular indignation against the whole proceedings 
was growing on a national scale. Trade unions, civic and fraternal 
organizations, church groups, and prominent citizens issued state- 
ments denouncing the character and conduct of the Committee. 
Mass protest rallies took place in many cities . . . 

The Detroit Free Press editoriahzed: 

The most un-American activity in the United States today is the 
conduct of the congressional committee on un-American activities . . . 

No congressional committee that robs men and women of their good 
names for the sheer sadistic glee of getting headlines should be allowed 
to exist . . . The hypocritically named "Committee on Un-American 
Activities" should be abolished at the earliest possible moment by the 
United States Congress. 

Confronted with mounting public condemnation and frustrated 
by the courageous conduct of the witnesses, the Un-American Ac- 
tivities Committee brought the hearing to a hasty, unexpected con- 
clusion. On October 30, having questioned only ten of the nineteen 
"unfriendly witnesses," Chairman Thomas abruptly announced that 
the hearings were being indefinitely adjourned. 

An important victory had been won by the forces of decency and 
democracy in the United States. 

But the victory was not unqualified. 

On November 25, fifty executives of the motion picture indus- 
try, representing all the major studios and most of the independents, 
released a statement announcing their decision to refuse employ- 
ment to Communists and to "discharge or suspend without com- 
pensation" those of the ten Hollywood figures cited for contempt of 
Congress who were then in their employ.* 

The action of the film executives was enthusiastically hailed by 
Representative Thomas as "a constructive step and a body blow 

* The statement of the film executives was drawn up under the legal advice 
of James F. Byrnes, former Secretary of State 

264 



at the Communists." The chairman of the Un-American Activities 
Committee added: "Our hearings and exposures will continue." * 

The most significant fact, however, about the House Un-Ameri- 
can Activities Committee in 1947 was not that it was continuing, 
on a greatly intensified scale and as a permanent congressional body, 
the ugly anti-democratic conspiracy that Congressman Dies had 
initiated a decade before. The most significant fact about the Com- 
mittee was that its policies and those of the U.S. Government had in 
many respects now become identical. 

During the Roosevelt Administration, leading Justice Department 
officials had denounced the Un-American Activities Committee as 
"anti-democratic" and "itself bordering on the subversive." Now, 
Attorney General Tom Clark informed members of the Committee 
at one of its hearings: 

We may say, I think, that you in Congress and we in the Department 
of Justice are laboring in neighboring vineyards and that we have the 
same purpose in view. The program of this Committee . . . can render 
real service to the American people. 

During the Roosevelt Administration, even J. Edgar Hoover had 
carefully avoided all public association with the Committee. Now 
the Committee enjoyed in the words of Life magazine, "the hearty 
cooperation of the Federal Bureau of Investigation," and FBI chief 
Hoover himself stated: 

As this Committee fulfills its obligation of public disclosure of facts 
it is worthy of the support of loyal, patriotic Americans. 

During the Roosevelt Administration, none of the Committee's 
propaganda activities was more sharply condemned by responsible 

* On November 8, 1948, Representative Thomas, who had been a member 
of the Un-American Activities Committee since its formation in 1938, was 
indicted by a Federal Grand Jury on charges of conspiracy to defraud the 
Government. He was accused of padding his own payroll and that of the 
Un-American Activities Committee by placing on them the names of persons 
who performed no services and who turned over their paychecks to him. 
Thomas, according to the indictment, had been pursuing this criminal practise 
since January 1940. 

Indignantly denying the charge, the Chairman of the Un-American Activi- 
ties Committee declared he would "continue to expose the participants in this 
Communist conspiracy whether they be Government employes, scientists, 
diplomats, labor leaders or movie stars." 

Found guilty as charged, Thomas was sentenced on December 9, 1949, to 
six to eighteen months in prison and a fine of $10,000. 

265 



Government officials than its oft-repeated charge of "Communist 
infiltration" of Federal agencies and its constant demand for a 
"purge" of "disloyal Government employes." Now, on March 22, 
1947, President Truman himself promulgated an Executive Order 
calling for a loyalty investigation of all Government employes and 
the dismissal of those found to be "disloyal." 

President Roosevelt had characterized the Un-American Activi- 
ties Committee as "sordid, flagrantly unfair and un-American." 

President Truman in his Executive Loyalty Order stipulated that 
one of the four investigative agencies chiefly to be relied upon in 
determining the loyalty of Government employes was "the House 
Committee on Un-American Activities." 



266 



Chapter xiv 

WASHINGTON WITCH HUNT 



And lest some one should persuade ye, lords and com- 
mons, that these arguments of learned men's discouragement 
at this your order are mere flourishes, and not real, I could 
recount what I have seen and heard in other countries, where 
this kind of inquisition tyrannizes . . . There it was I found 
and visited the famous Galileo, grown old, a prisoner to the 
inquisition, for thinking in astronomy otherwise than the 
Franciscan and Dominican licensers thought. 

John Milton, Areopagitica, 1644 

The country will swarm with informers, spies, delators, 
and all the odious reptile tribe that breed in the sunshine of 
despotic power. The hours of the most unsuspected confi- 
dence, the intimacies of friendship, or the recesses of do- 
mestic retirement, afford no security . . . Do not let us be 
told that we are to excite fervor against a foreign aggression 
to establish a tyranny at home; and that we are absurd 
enough to call ourselves free and enlightened while we 
advocate principles that would have disgraced the age of 
Gothic barbarity. 

Congressman Edward Livingston, speak- 
ing in the U. S. House of Representa- 
tives in opposition to the Sedition Act of 

Are your friends and associates intelligent, clever? 

A question put by a U. S. Loyalty Board 
in 1948 to a government e?nployee ac- 
cused of disloyalty 



I. The Loyalty Order 

Executive order 9835 was issued by President Truman ten days 
after his speech before Congress proclaiming the Truman Doctrine. 

267 



Proximity in time was not the sole relationship between the two 
events. While the Truman Doctrine projected a foreign policy of 
aiding reaction and counterrevolution in the name of halting 
*'Communist expansion" abroad, the Truman Loyalty Order enun- 
ciated a domestic program of thought control and repression in the 
name of combatting the "Communist menace" at home. 

One act complemented the other. Both crystallized the profound 
metamorphosis that had taken place in the United States since the 
death of Franklin Delano Roosevelt . . . 

The sweeping scope and nationwide implications of the Executive 
Loyalty Order were indicated by an Associated Press dispatch from 
Washington on the day of the promulgation of the President's 
decree: 

President Truman's Order . . . covers about 2,200,000 executive branch 
positions . . . On an individual basis the order could conceivably affect 
everybody in the executive branch from the President to the janitor 
in a small-town postoffice. 

The Loyalty Order— without defining the meaning of "loyalty"— 
prescribed an elaborate program of investigative procedure, includ- 
ing the establishment of "loyalty boards" in all executive branch 
agencies of the Government and the compilation of a list of "dis- 
loyal organizations" by the Attorney General. The stated purpose 
of this program was to effect "maximum protection" to "the United 
States against infiltration of disloyal persons into the ranks of its 
employes." 

Actually, the Order provided no method for counteracting the 
operations of possible foreign agents and spies within the United 
States Government— such contingencies were already amply cov- 
ered by existing Federal statutes. As L. A. Nikoloric, a member of 
the well-known Washington law firm of Arnold, Fortas and Porter, 
wrote in an article entitled "Our Lawless Loyalty Program" in 
The Progressive magazine: 

The loyalty program couldn't catch a spy, for it is what its name 
implies— a method to test the total adherence of Federal employes to 
certain undefined standards of thought. Its purpose, ostensibly, is to 
catch Communists, but if you're a Government worker, you can be 
branded for life even if you aren't and never were a Communist. You 
are disloyal— in the Federal service— if, in the opinion of your agency's 
loyalty board, you are or ever have been 

(i) sympathetic to Communism, 

268 



(z) friendly to organizations allegedly sympathetic to Communism, 

(3) associated with persons in groups (i) or (2) 

(4) considered talkative in the presence of persons in groups (i), 

(2) or (3). 

Nikoloric added: "Furthermore, it is not required that the boards 
prove that you belong in any of these categories. If there is any 
doubt you lose the verdict." 

Commenting on the procedural techniques outlined in the Order, 
four outstanding legal authorities— Ernest N. Griswold, Dean of the 
Harvard Law School; Austin W. Scott, an eminent specialist on the 
law of trusts; Milton Katz, Professor of Law at Harvard Law 
School; and Zechariah Chafee, Jr., noted authority on constitutional 
law and Professor of Law at the Harvard Law School— wrote in a 
letter to the New York Times on April 13, 1947: 

There is no provision that the accused shall be confronted by such 
evidence as there may be to support the charges against him, so that he 
may undertake to rebut it. Indeed there is no requirement that the 
evidence against him shall be introduced at the hearing at all. 

No provision is made for a detailed record of the hearing or, for 
that matter, for a record of any kind. There is no requirement that 
the findings of the loyalty board must be supported by the evidence . . . 

Considerably less concern over the anti-democratic and uncon- 
stitutional character of the loyalty program was displayed by the 
elected representatives of the American people. With few excep- 
tions, Democratic and Republican congressmen enthusiastically 
hailed Truman's Loyalty Order as a "vital contribution" to the 
nation's welfare. 

"It's good to see that he [Truman] has finally awakened to the 
truth of what we've been telling him for the last few years," de- 
clared Congressman Joseph E. Martin, Republican speaker of the 
House of Representatives. 

"The President's program is almost precisely that which the 
House Committee on Un-American Activities has been advocating 
for at least four years," asserted Representative Karl E. Mundt, 
one of the Committee's most active members. 

In the opinion of Representative John E. Rankin, the Loyalty 
Order was "just what the country needs" . . . 

Returning from the Nuremberg trials in Germany, where he had 
been Deputy Chief Counsel to the American prosecution staff, 
attorney Abraham Pomerantz wrote in a letter to the New York 
Times on May 4, 1947: 

269 



., • , we have absorbed into our own legal system the German 
tyranny that we fought and inveighed against. I refer to our executive 
order which provides that any one of two and one-half million em- 
ployees in the executive branch of our Government can be summarily 
fired if he is, or ever was, a member of, or in "sympathetic associa- 
tion" with, any organization or combination of persons placed by the 
Attorney General of the United States on his private blacklist. 

The condemned organization receives no indictment or even intima- 
tion that its loyalty is impugned. It gets no hearing or opportunity to 
contest the charge . . . The American citizen ... is afforded no oppor- 
tunity to challenge the Attorney General's ex-parte condemnation of his 
organization. 

This conviction without trial, borrowed from the darkest days of 
the Nazi inquisition, is a startling innovation in American judicial 
procedure. 

Pomerantz added: 

Another aspect of the Executive Order presents a striking and sicken- 
ing parallel to a Nazi decree which provided that no person could hold 
public office unless he could prove "by his conduct that he is willing 
and able to serve loyally the German people and the Reich." (Law 
regarding Citizens of the Reich, of September 15, 1935.) ... In my 
judgement, the Executive Order is, both substantially and procedurally, 
the most Nazi-like and terrifying law since die Alien and Sedition 
Acts. 

Such condemnation of the Loyalty Order failed to perturb At- 
torney General Tom C. Clark. In language remarkably reminiscent 
of that used by Attorney General Palmer during the anti-Com- 
munist drive after the First World War, the soft-spoken Texan 
depicted the loyalty program as a means of promoting "Christian 
principles" and defending "the democracy and constitutional rights 
fought for and secured by our forefathers." 

From material provided for the most part by the FBI and the 
Un-American Activities Committee, the Attorney General pro- 
ceeded to compile what the New York Times described as "an 
initial master list of Communist organizations for use in ferreting 
out disloyal Government employees." On December 4, 1947, the 
"initial master list" was released to the nation. It included the names 
of seventy-eight organizations which, according to Attorney Gen- 
eral Clark, were "totalitarian, fascist. Communist or subversive." 

About half of the organizations named by the Attorney General 
were German, Japanese and Italian organizations which had oper- 
ated in the United States before or during the war. None of these 
organizations was any longer in existence. 
270 



The remainder of the list consisted almost entirely of progressive 
and left-wing groups, committees engaged in the defense of civil 
liberties, and anti-fascist organizations. In making his selection, re- 
ported PMj Clark "appeared to follow the lead of the House Com- 
mittee on Un-American Activities." * 

On May 28, 1948, Clark published a second "subversive" list, 
naming thirty-two more organizations as "disloyal." The only fascist 
organization on this second list was the Aiisland-Organization der 
N.S.D.A.F., the overseas branch of the Nazi Party, which, of course, 
had ceased to exist long before Clark's list was drawn up . . . 

Regarding the use to be made of his lists, the Attorney General 
declared: "We shall do this in the American way ... in a legal 
orderly manner. We shall not use Gestapo tactics of a Hitler or 
destroy the very institutions of Hberty and justice that we have 
fought so hard to preserve." 

But the actions of the newly established Loyalty Boards spoke 
louder than the words of the Attorney General. These actions were 
soon conjuring up in America what Abraham Pomerantz described 
as "shades of the malodorous German People's Courts." 

2. Behind Closed Doors 

"The procedure before the boards," wrote the attorney, L. A. 
Nikoloric, in his article, "Our Lawless Loyalty Program," "violates 
the provisions of the Fifth and Sixth Amendments of the Bill of 
Rights. The employe 'answers' the charges to his accusers— not to 
an impartial judge. He is not told where the derogatory information 
originated; it is impossible to impeach the reliability of its source 
. . . His only defense is to prove a somewhat nebulous 'loyal' state 
of mind." 

But the "most reprehensible feature of the Loyalty Program," 
according to Nikoloric, was "the character of the evidence on 
which charges are issued." 

The attorney, who had acted as counsel for Government em- 
ployes in various loyalty proceedings, cited specific cases to illus- 
trate his point. These were some of them: 

* Among the progressive organizations on Clark's list, grouped together with 
the Communist Party of America, were the Civil Rights Congress, the Joint 
Anti-Fascist Refugee Committee, the National Council of American-Soviet 
Friendship, the Veterans Against Discrimination, the National Negro Con- 
gress, the United Negro and Allied Veterans of America, and the International 
\Vorkers Order. 

271 



Miss A. spent one afternoon a week collecting money for Russian 
War Relief in front of a movie house. She also was instrumental in 
having Senators Ball and Pepper talk to the people of her city concern- 
ing the necessity of accepting Russia as an ally. These events took place 
in 1943, when the Russians were bearing much of the brunt of the war 
in Europe. Miss A. also did Red Cross work, collected money and 
knitted sweaters for British and French War Relief, and spent one night 
a week at the U. S. O. . . . She was charged on these facts with being 
disloyal to the United States. 

Mr. B. married a girl, who, 10 years before, as a sophomore in col- 
lege, had been a member of the Young Communist League. The YCL 
in her school was almost exclusively interested in low-cost dormitory 
facilities and in higher pay for scholarship jobs. Mrs. B. resigned from 
the YCL after six or eight months, and it was not alleged that she 
has since been in any way connected with Communism. Mr. B. was 
accused of disloyalty to his country. 

Mr. C. had an acquaintance in college. The acquaintance, whom C. 
had not seen for 15 years, was named a defendant in a proceeding 
involving alleged Communists. In answer to an appeal made to most 
of his classmates, Mr. C. contributed some money to his friend's defense. 
Although the friend was acquitted, Mr. C. was charged with disloyalty. 

Mr. D. served as a civilian employe with the occupation forces in 
Japan. At a conference he suggested that in distributing fertilizer to 
Japanese farmers the occupation forces require that a certain percentage 
of the farmers' produce be marketed immediately, through occupa- 
tion channels, to stop hoarding. The senior Army officer at the con- 
ference asked Mr. D. if he were a Communist, and whether he believed 
in free enterprise. Mr. D. stated that he was not a Communist, that he 
believed in free enterprise, but thought that his suggestion would curb 
the black market. Shortly thereafter, Mr. D. was relieved and returned 
to the United States on a loyalty charge because of this incident. 

It was reported to the FBI by an associate of Mr. E. that the associate 
had "heard" that E's mother-in-law was pro-Russian. Mr. E. was charged 
with disloyalty. 

These cases were not unique. They were, in Nikoloric's words, 
''Hypical of the charges made in the generous sampling of cases with 
which I am fajmliar. Freque?itly , the einploye, even after a hearing 
has been conducted^ is unable to determine njohy charges were ever 
preferred." 

No less extraordinary than the "evidence" on which Govern- 
ment employes were charged with disloyalty was the manner of 
their interrogation by the loyalty boards. Here, taken from tran- 
scripts of loyalty board hearings, are some typical questions ad- 
dressed to Federal employes by the boards: 
272 



Are your friends and associates intelligent, clever? 

Have you a book by John Reed? 

There is a suspicion that you are in sympathy njoith the underpriv- 
ileged. Is that true? 

Was your father native born? . . . How about his father? 

Do you think that the Russian form of Government is good for the 
Russians? 

Are you in favor of the Marshall Plan? 

How do you feel about the segregation of Negroes? 

Did you or your wife ever invite a Negro into your home? 

Would you say that your wife has liberal political viewpoints? 

Were any of your relatives ever members of the Coimnunist Party? 

Did you ever attend any affairs with your wife where liberal views 
were discussed? 

What do you think of the Italian situation? 

Do you understand why the Catholic Church is opposed to Com- 
munism? 

Suppose you should find out that your wife was a Communist, what 
would you do about it? 

"Loyalty board 'loyalty' does not mean loyalty to America," 
declared the former Assistant Attorney General, O. John Rogge. 
"It means loyalty to the bi-partisan foreign policy abroad, to segre- 
gation and the open shop at home . . . The loyalty cases are not 
directed exclusively or even primarily against the Communists. 
They are directed at the labor movement, and at those who share 
the intellectual and social bequests of Franklin Delano Roosevelt 
and the New Deal." 

In a book entitled Our Vanishing Civil Liberties, which was pub- 
lished early in 1949, Rogge recounts the details of some of the 
loyalty cases in which he acted as counsel for accused Govern- 
ment employes. One such case involved a Swedish-born mechanic 
named Charles Oscar Matson, who had been employed in the New 
York Naval Shipyard for thirty years. 

In February 1948 iMatson's case came up before the Loyalty Board 
at the New York Naval Shipyard. 

The Board, as Rogge relates, "soon got down to business": 

BOARD: Are you now or have you ever been a member of the Com- 
munist Party? 

MATSON: No, I have never been a member. 

BOAP.D: Has your wife or any relative been a member? 

MATSON: No, my wife is a church member. All she does is vote. 
Outside of that she doesn't belong to anything . . . 

BOARD: Do you ever recall attending a meeting of the American 
League for Democracy? 

273 



MATSON: I may have. I don't know for sure. The name don't even 
sound familiar. 

BOARD: Did you ever attend meetings sponsored by the Saints and 
Sinners? 

MATSON: What are they? Religious? 

BOARD: No . . . 

On questioning Matson about his reading habits, the Board learned 
he had once been a subscriber to the Literary Guild: 

BOARD: What kind of books did they put out? 

MATSON: They were supposed to be the best for the month. 

BOARD: Did they put out books by Theodore Dreiser? 

MATSON: Yes, I think- 

BOARD: Feuchtwanger? 

MATSON: I think there was one by Dreiser . . . 

BOARD: Have you ever read any of Feuchtwanger? 

MATSON: No. 

BOARD: Howard Fast? 

MATSON: I don't know him. Never heard of him. 



The Board proceeded to question Matson about his "political 
views": 

BOARD: Have you ever discussed the Truman Doctrine? 

MATSON: Yes, a little bit. 

BOARD: What do you think of it? 

MATSON: Well, I went fifty-fifty on that. 

BOARD: You aren't settled on that? 

MATSON: No. 

BOARD: Neither for or against? 

MATSON: No, I feel sorry for a lot of people over there and I 
feel sorry for people here. For instance, I will give you a case. They 
want packages. My daughter and myself gathered up some old clothes 
and instead of sending them over to the other side we sent them to the 
Indians. The Navajos or something . . , 

Following Matson's testimony, a number of workers from the 
naval shipyards were put on the witness stand by Rogge. "Witness 
after witness," records Rogge, "declared that Matson had never said 
or done anything disloyal. Not one witness had an unkind word 
for him." 

One of the witnesses was asked by the Board if he considered 
Matson "to be a rather deep thinker." The witness said he was not 
sure. 

"Did you have any reason," demanded the chairman of the 
Board, "to believe that he was fairly well read?" 
274 



Summarizing his account of the Matson case in his book, Our 
Vanishing Civil Liberties, Rogge writes: 

I have the transcript of the Matson hearing before me now. It en- 
compasses 95 single-spaced typewritten pages of testimony, every line 
of which is an indictment of Executive Order 9835. After the indignities 
of this hearing which was not even a competent imitation of justice, 
Charles Oscar Matson was fired. 

Another loyalty case handled by O. John Rogge was that of 
George Gorchoff, an Engineering Material and Equipment In- 
spector in the New York Naval Yard. Unlike many of the indi- 
viduals accused of disloyalty, who were not unnaturally bewildered 
and at a loss for words at their loyalty board hearings, Gorchoff 
turned out to be not only aggressive but extremely articulate. 

The hearing had barely opened when this interchange took place: 

GORCHOFF: In the charges here— this here— they specify that addi- 
tional information will be given at the hearing, detailing these charges. 
Can I have that additional information at this time? 

BOARD: This is an informal hearing. We have no additional in- 
formation for you. 

GORCHOFF: It so states in the letter that Admiral Haeberle sent 
me. 

BOARD: That is incorrect procedure. . . . Any information that has 
been given to me in regard to this case has been given to us as confi- 
dential and cannot be divulged to you. 

GORCHOFF: It is quite obvious that I can't refute these specific 
questions without the people being brought here . . . For example, that I 
recruited people into the Communist Party. 

BOARD: Did you or didn't you? 

GORCHOFF: Who said that I did. 

BOARD: This is not a court of law. 

GORCHOFF: I know, and I am not a lav^yer. 

BOARD: This is not a court of law. You have been accused— 

GORCHOFF: Have you— these people— the authority to exonerate 
me? 

BOARD: No. 

GORCHOFF: Who has? 

BOARD: All we can do is submit a recommendation to the Com- 
mander of the Shipyard. 

As the hearing progressed, Gorchoff continued to demand con- 
crete information regarding the charges against him and to pro- 
test against the Board's using as "secret evidence" the vague accusa- 
tions of unidentified informers. "This is a hearing where I am 
attempting to prove my innocence," protested Gorchoff. "In order 

275 



to do that I have to have something ... It is not only a question 
of a job, it is my life— 15 years of my life. While I was here I got 
married and had two kids. I am not a young kid flitting around 
looking for a job." 

At one point, when Gorchoff was requesting concrete informa- 
tion about one of his anonymous accusers, Rogge's colleague, 
Robert Goldman, asked the Board: "Are you declining to give such 
information?" 

"We don't have such information," answered the Board chairman. 
"We don't know the name of the person." 

Rogge spoke up. "You merely have a statement without any 
proof?" 

"It has been corroborated, checked and verified," said the Board 
chairman. 

"By whom?'* 

"I can't tell you." 

"By unknown parties?" 

The Board chairman hesitated a moment. "Put it any way you 
like," he then replied. 

"Do you have an enemy who happens to be a government em- 
ployee or a worker in a plant with a government contract? I will 
tell you how to dispose of him," writes Rogge with bitter irony 
in Our Vmiishing Civil Liberties. He continues: 

Write a postcard to the F.B.I. Do not sign it. A signature would be a 
gratuitous gesture of courage ... In this postcard state that your enemy's 
wife read something by Theodore Dreiser, subscribed to the New 
Republic^ and once invited a Negro into her home . . . 

Mail your postcard, and rest assured— your enemy is finished. The 
F.B.I, will conduct a secret investigation. Your enemy will end up 
before a Loyalty Board where your postcard will be vital but secret 
part of the evidence against him. He will not have the chance to face 
you, his accuser. He will have to defend himself against charges he has 
never heard. He may be fired. He may be allowed to resign. He may 
even be cleared. But in any case, he is a marked man. 

He was once investigated for "disloyalty." 

The grim truth of Rogge's observation was confirmed by an 
experience of Bert Andrews, Chief of the Washington Bureau of 
the New York Herald-Tribune and winner of the Pulitzer Prize in 
Journalism for 1947. 

While collecting material for a series of expose articles on the 
276 



loyalty program, Andrews visited the State Department to check on 
the cases of seven employes v^ho had been dismissed on charges 
of disloyalty. An informal conference took place between Andrews 
and three State Department officials. Andrews questioned the "de- 
cency and fairness" of branding an employe disloyal and dismissing 
him "without letting him in on the secret of who had accused him 
of what." Was this, Andrews wanted to know, the American way 
of doing things? 

Finally wearying of the discussion, one of the State Department 
officials blurted out: "Why beat around the bush on a matter like 
this? It is entirely conceivable that any one of us in this room could 
be made the victim of a complete frame-up, if he had enough ene- 
mies in the Department who were out to get him." 

While Andrews listened with growing astonishment, the Depart- 
ment official went on: "Yes, such a thing would be perfectly con- 
ceivable. And we would not have any more recourse than Mr. 

," he named one of the Department employes who had been 

dismissed— "even though we were entirely innocent." 

"What did you say," demanded the astounded Andrews. 

The State Department man calmly repeated his statement. 

"If a man of your intelligence," said Andrews, "can say a thing 
like that without being shocked at what you are saying and without 
a feeling of personal peril, then something is wrong." 

Not only in the nation's capital, but throughout the length and 
breadth of the land, something very definitely was wrong in the 
United States. 



277 



Chapter xv 

PATTERN OF SUPPRESSION 



We have seen the war powers, which are essential to the 
preservation of the nation in time of war, exercised broadly 
after the military exigency had passed and in conditions for 
which they were never intended, and we may well wonder 
in view of the precedents now established whether constitu- 
tional government as heretofore maintained in this republic 
could survive another great war even if victoriously waged. 

From cm address delivered by Charles 
Evans Hughes at the Harvard Law 
School, June 21, 1^20. 

The real traitors to America at present , . . are precisely 
those false patriots who cry down truth, obstruct the path of 
social discovery, deny a free forum to Intellectual Honesty, 
pretend— while storm clouds gather ominously overhead,— 
that America is a cooing dove of peace and prosperity, a 
bird of paradise, a harbinger of glad tidings to a world in 
despair. 

From Samuel D. Schmalhausen^s preface 
to Behold America!, published 1^31, 



I. Grim Schedule 

On June 15, 1947, returning from a state visit to Canada, President 
Harry Truman stopped en route to view the famous spectacle of 
Niagara Falls. 

For several moments, in pensive silence, Truman contemplated 
the giant thundering waterfall. Then, thoughtfully, the President 
said: "I'd sure hate to go over 'em in a barrel." 

There were, at the time, other problems confronting the Amer- 
ican people. 

Since the end of the war, the cost of living had continued to soar, 

278 



with wages lagging far behind. By June 1947, according to Depart- 
ment of Labor statistics, prices had registered an 1 8 percent increase 
over June 1946. "If the present trends of living costs continue," 
warned the New York City Hospital Commissioner, Dr. Edward 
Bernecker, "there is a grave danger that the health of large segments 
of our population will deteriorate." Should food prices climb still 
higher, said Dr. Bernecker, there would be "a definite increase in 
the rate of illness in a population weakened by malnutrition." 

Regarding the greatly increased cost of food, Senator Robert A. 
Taft dryly commented that he agreed with Herbert Hoover that 
"the best answer is for the people to cut down on their extrava- 
gance. They should eat less." 

The housing shortage had reached emergency proportions. Ap- 
proximately three million American families were sharing their 
living quarters; hundreds of thousands were desperately searching 
for places in which to live; more than 20,000,000 people were living 
in slum areas, shacks and iiretrap tenements; and one-third of all the 
families in the nation were living in homes lacking minimum stand- 
ards of decency. 

And, as the living standards of the American people declined, the 
grim schedule of the offensive against their political and economic 
rights moved inexorably ahead . . . 

More than two hundred anti-labor bills were pending in Congress, 
and one state after another was enacting legislation aimed at under- 
mining the strength of the trade union movement. 

In Nebraska, South Dakota, and Arizona, the closed shop was 
made illegal. Anti-union shop or "right to work" bills were passed 
in Georgia, North Carolina, Virginia, Tennessee, Arkansas, Florida 
and Alabama. Regarding eight anti-labor bills passed by the Texas 
legislature, the Manufacturers' Association in that state noted with 
satisfaction: "The legislature's action has . . . answered the aims 
of this organization." 

On June 23, 1947, the United States Congress enacted a law 
which, in the words of the American Civil Liberties Union, "in one 
sweeping act aimed at labor's economic and political power put 
many of its hard-won rights of more than a decade in a legal 
straight-jacket." 

Officially designated as the Labor Management Relations Act of 
1947, and more familiarly known as the Taft-Hartley Law, the new 
statute virtually nullified the historic National Labor Relations Act. 

279 



It outlawed the closed shop, industry-wide bargaining, jurisdictional 
strikes and strikes by Government employees; revived the injunc- 
tion as a strike-breaking weapon for employers; banned contribu- 
tions or expenditures by unions for political purposes; and withdrew 
union rights from any labor union whose officers failed to sign non- 
Communist affidavits. 

"This bill is not a milk toast bill," Senator Robert A. Taft, the 
chief architect of the measure, had remarked during the debate in 
the Senate on his proposed labor law. "It covers about three quarters 
of the matters pressed on us very strenuously by employers." 

According to Earl Bunting, president of the National Association 
of Manufacturers, the new law was "full of benefits" and would 
bring "a better tomorrow for everybody." 

The Neijo Republic declared: 

Fully exploited by anti-labor corporations and fully backed by an 
anti-labor government, the Taft-Hartley law can destroy trade unionism 
in America.* 

"The Eightieth Congress has reversed the ruinous New Deal 
trend," proclaimed a twenty-three page document entitled Republi- 
can Congress Delivers, issued in August 1947 by the RepubUcan 
National Committee as a summary of the accomplishment of the 
first session of this Congress. "This is a Congress . . . well ad- 
vanced in its comprehensive program for clearing away the debris 
left by fourteen long years of New Deal-Democrat misrule . . ." 

"The Republican Party has delivered— to big business," wryly 
countered Gael Sullivan, executive director of the Democratic Na- 
tional Committee. "It has responded to the will of Wall Street." 

Sullivan, naturally enough, made no mention of the close work- 
ing alliance that Democratic and Republican congressmen had 
maintained in supporting the cold war policy of the Truman Doc- 

* When the bill was sent to the White House after its initial passage by 
Congress, Truman had returned it with a 5,500-word veto message charac- 
terizing the measure as a "clear threat to the successful working of our demo- 
cratic society." But, in the opinion of many, the Chief Executive was only 
making a politically expedient gesture, with an eye to the 1948 Presidential 
election. On June 20, the day that Truman's veto message was made public, 
the New York Times correspondent, William S. White, reported in a dispatch 
from Washington that the President "up until this morning had given no 
visible evidence of the application of White House pressure" to rally his 
Party forces against the bill. With the overriding of his veto by Congress 
practically a foregone conclusion, Truman staged a last-minute, highly pub- 
licized but completely ineffectual campaign against the measure. 

280 



trine, the President's inquisitorial loyalty program, increased appro- 
priations for the Un-American Activities Committee, the Taft- 
Hartley law, and numerous other measures taken by the Eightieth 
Congress to wipe out every last vestige of the New Deal. 

2. Fear Itself 

In August 1947 the American Civil Liberties Union published a 
report on "U. S. Liberties" which summarized developments of the 
preceding twelve months in these words: 

A general retreat to nationalism, militarism and defense of the status 
quo increasingly marked the country. Excitement bordering on hysteria, 
characterized the public approach to any issue related to Communism, 
accentuated by the declaration of a foreign policy aimed at blocking the 
advance of Soviet influence. 

In such an atmosphere of militant conservatism it was inevitable that 
practically all forces seeking reform should be blocked, and that even 
established liberties associated with them should be attacked ... In 
almost all fields of expression, liberal and minority forces were thrown 
back on the defensive. 

Not even during the days of the Palmer raids and the frenzied 
anti-Communist crusade following the First World War had there 
been such a sweeping assault on traditional American freedoms as 
was rampant in the land by the summer of 1947. ^^ every part of 
the country, investigations of "Communism," denunciations of 
"Reds," witchhunts and purges were under way. Everywhere Fed- 
eral agents, labor spies, state investigators and private detectives 
were prying into the affairs of American citizens, drawing up ex- 
tensive blacklists of "radical agitators" and "Communist sympa- 
thizers," compiling detailed records of "fellow travelers," anti- 
fascists and liberals. 

J. Edgar Hoover, after a quarter of a century in office, had really 
come into his own. "Director of the Federal Bureau of Investigation 
J. Edgar Hoover," wrote Jan Hasbrouck in the New Republic on 
December 15, 1947, "is one of the half-dozen most influential men 
in Washington." There was no phase of American life into which 
Hoover's secret agents had not infiltrated. Trade unions and political 
parties, newspapers and universities, private corporations and fra- 
ternal orders, local law enforcement bodies, Government agencies 

281 



and the Armed Forces— all were honeycombed with Hoover's spies, 
investigators and paid informers. As aptly characterized by Bill 
Davidson in an article in Coronet magazine, J. Edgar Hoover was 
"Master of the Hunt." 

Like Hoover's former chief, A. Mitchell Palmer, Attorney Gen- 
eral Tom Clark was conducting an intensive campaign to deport 
foreign-born "radicals." However, according to the FM columnist, 
Max Lerner: 

Tom Clark . . . has learned a thing or two that Palmer didn't know. 
He doesn't arrest thousands for deportation in a single month. . . . He 
arrests only the key figures who are alien radicals and who are strategi- 
cally important in the left-wing trade unions. He carries the arrests out 
one at a time . . . His game is often big game, and always lands on the 
front pages. He uses warrants, but denies administrative bail . . . One 
cannot but feel that the Department of Justice has left behind the . . • 
primitive methods of the Mitchell Palmer days.* 

In a number of states the legislatures had established their own 
little un-American Activities Committees and were busily drafting 
repressive laws based on the "findings" of these committees. On 

* Among the more outstanding men and women arrested for deportation 
during 1947- 1948 were Ferdinand C. Smith, secretary of the National Mari- 
time Union; Ir\-ing Potash, vice president of the International Fur and Leather 
Workers Union; Charles A. Doyle, vice president of the United Chemical 
Workers of America; John Williamson and Claudia Jones, Communist leaders; 
George Pirinsky, executive secretary of the American Slav Congress; 
Peter Harisiades and Henry Podolsky, leaders in the International W^orkers 
Order. 

In 1949 the Justice Department extended its attack on the foreign-bom, 
announcing it was preparing to revoke the citizenship of some 250 naturalized 
Americans. 

On April 4, 1950, after a trial lasting nearly five months, the West Coast 
labor leader Harry Bridges was found guilty of perjury and conspiracy on 
the charge that he lied to conceal that he was a Communist when he took 
the oath of American citizenship. Bridges was sentenced to five years im- 
prisonment, and the Government authorities immediately initiated proceed- 
ings to cancel his citizenship and deport him. Among the Government 
witnesses upon whose testimony Bridges' conviction was based were con- 
fessed perjurers like the labor spy and FBI agent, Lawrence Ross. 

One extraordinary episode summed up Justice Department tactics in the 
case. During the trial, two Department agents approached Herman Mann, a 
member of Bridges' union, whose wife was suffering with malignant cancer. 
The Government agents told Mann that special facilities at the Government- 
subsidized Cancer Institute would be placed at his wife's disposal free of 
charge if he would testify that Bridges was a Communist. Mann refused the 
offer. His wife died shortly afterwards. 

282 



August II, 1947, in a "Report on the State of Civil Liberties 
Today," the New Republic published on-the-spot accounts from 
different sections of the country vividly indicating the scope and 
intensity of the anti-democratic campaign. From Michigan, Nev} 
Republic correspondent Andrew A. Bishop reported that "civil 
liberties . . . have been dealt their severest blow since the 'Palmer 
raids' period." In California, wrote Robert Kincaid, "the current 
attack on civil liberties . . . has been marked by efforts at 'thought 
control' among public servants, school teachers and trade unionists 
... by increasing economic pressure on minorities and by raids on 
allegedly seditious school books." Gould Beech related: "Reaction- 
aries in the South are in a frenzy to find new and fancier ways to 
attack labor unions, Negroes and 'Communists'. . . Everywhere the 
reactionaries are having a field day . . ." 

In universities and scientific institutions, factories and fraternal 
societies, trade unions and veterans organizations, in federal, state 
and municipal agencies, "loyalty" investigations were taking place 
and Americans were being ordered to give an accounting of their 
social and political beliefs ... 

On November 26, 1947, in a letter addressed to the President of 
the United States, the Secretary of State, and the Speaker of the 
House of Representatives, twenty-two members of the faculty of 
the Yale University Law School gave sober warning of the extent 
to which democracy had been undermined in America since the end 
of the war. The letter read in part: 

A pattern of suppression is today evolving at the highest levels of the 
Federal Government. The more alarming aspects of the situation include 
the President's loyalty order of last spring, the recent "Statement of 
Security Principles" by the Department of Justice and the current per- 
formance of the Committee on Un-American Activities of the House 
of Representatives . . . 

Under the cloak of congressional immunity or the cloak of anonym- 
ity, high officials of the national Government are today acting in dis- 
regard and in defiance of the American tradition of civil liberties, and, 
in our considered judgment, in violation of the Constitution of the 
United States. 

The faculty members of the Yale Law School added: 

There are alarming signs that persecution for opinion, if not curbed, 
may reach a point never hitherto attained even in the darkest period of 
our history. With it, we may expect racial, religious and every other 
kind of bigotry which, if allowed to run its full course, can loose such 

283 



a flood of intolerance as utterly to destroy the civil liberties without 
which no democratic society can survive. 

And in an article published in the Lawyers Guild Review, 
Richard F. Watt, Assistant Professor of Law at Chicago University, 
wrote: "The spirit of fascism is abroad in America. Gone is the 
spirit that produced the dream of the Four Freedoms, and here at 
home the freedoms themselves are in danger . . . The spirit of 
Fascism is here— only two short years after we conquered our Fascist 
enemies on the battlefields overseas." 

At no time during the dark and perilous days of the Second 
World War had the American people been gripped by such feverish 
anxiety and apprehension as now permeated the land, after two 
years of peace. 

Over the whole nation, shadowing every aspect of its life, there 
hung a pall of fear— fear of the "Communist fifth column," fear of a 
third world war, fear of atomic and biological weapons, fear of 
another depression, fear of being "purged" on charges of disloyalty, 
fear of being branded as a "Red." 

"People afraid to speak their minds," wrote Eleanor Roosevelt in 
her syndicated column, "people afraid to meet for discussions on 
unpopular subjects, people afraid to be seen talking to certain other 
people, people afraid to be known to be reading certain books— all 
these are afraid not because of any wrong-doing, but because of 
what might be expected." 

"There is hysteria, in Washington and in the country," said the 
well-known news commentator and former head of the Office of 
War Information, Elmer Davis, speaking over the American Broad- 
casting Company network. 

George Seldes, veteran journalist, author and editor of the news- 
letter, In Fact, reported in his publication: 

There is fear in Washington, not only among government employes, 
but among the few remaining liberals and democrats who have hoped 
to salvage something of the New Deal . . . There is fear in Hollywood 
. . . There is fear in the book publishing houses. There is fear among 
writers, scientists, school teachers, liberals; among all who are not part 
of the reactionary movement, all who do not belong to the native 
fascist cliques. 

"We in America," stated the newspaper FM, "live in an age of 
fear." 

284 



Such was the mood prevailing in the land a decade and a half 
after President Franklin D. Roosevelt in his first inaugural address 
had told the nation: ". . . let me assert my firm belief that the only- 
thing we have to fear is fear itself." * 

3. Storm troop Strategy 

On the cloudy afternoon of November i, 1947, some two 
thousand men and women gathered at Independence Hall Square 
in Philadelphia to attend a rally held under the auspices of the Pro- 
gressive Citizens of America. The purpose of the rally was to pro- 
test the anti-democratic practises of the House Committee on Un- 
American Activities. 

As the speakers mounted the rostrum, scores of young toughs 
scattered throughout the crowd and groups of middle-aged men 
wearing American Legion and Catholic War Veterans insignia, 
began hooting, booing, and shouting insults and threats. When the 
chairman of the meeting approached the microphone, there were 
howls of "Go to Russia, you bums!"— "Beat it, you dirty com- 
munists!"— "Back to the ghetto!" The shrieking siren and clanging 
bell of an American Legion truck parked on the outskirts of the 
crowd added to the pandemonium. 

The voices of the speakers were lost in the mounting din. 

When a woman in the crowd urged that the speakers be given a 
chance to be heard, several rowdies promptly set upon her, 



* Symptomatic of the tense and fear-ridden atmosphere in postwar America 
were a number of sudden deaths and suicides. On November 3, 1947, John 
Gilbert Winant, prominent New Dealer and ex-Ambassador to England, 
committed suicide at his home in Concord, New Hampshire. On June 4, 
1948, Morton E. Kent, a former State Department employe, who had been 
accused of seeking to contact an alleged Soviet agent, slashed his throat. Two 
months later, on August 16, Harry Dexter White, former Assistant Secretary 
of the Treasury, died of a heart attack following grueling questioning at a 
hearing of the House Un-American Activities Committee. On December 20, 
1948, Laurence Duggan, a former State Department official who had been 
accused of being a Communist, leaped to his death from a New York office 
building. On December 24, 1948, Mrs. Minnie Outride, a New York school- 
teacher who was being investigated for "communist" activities, committed 
suicide. On February 14, 1950, after stating she did not want to live in a 
hydrogen bomb age, Mrs. Emily Anderson of Burlington, California, threw 
herself before a train. On April i, 1950, Professor F. O. Matthiessen of Har- 
vard University, a leader of the Progressive Party, jumped to his death from 
a hotel window. Three days later, N. W. Robertson, a liberal Washington 
newspaper correspondent, committed suicide. 

285 



knocked her to the ground and trampled on her. Fist fights began 
throughout the square . . . 

At a given signal, a number of hoodlums surged toward the 
speakers' platform. Kept from clambering onto it by police officers, 
they milled about the stand, raising their arms in fascist salutes, 
yelling taunts and oaths at the speakers. 

Among those on the speakers' platform was Francis Fisher Kane, 
a distinguished jurist and former recipient of the Bok Award as 
Philadelphia's outstanding citizen, who in 1920 had resigned from 
his post as U. S. District Attorney in protest against the Palmer 
raids. Kane came to the microphone and pleaded for silence. "Un- 
less there is tolerance of free speech," said the eighty-one year old 
attorney, "liberty is gone ... all that we have fought for during 
the past will be gone . . ." His words were drowned out in a 
furious outcry. He was showered with pennies and stones. One of 
them broke his glasses. Stench bombs hurtled through the air onto 
the platform . . . 

For an hour the speakers attempted in vain to be heard. Then the 
chairman declared the meeting at an end. 

More than a hundred police officers and plainclothesmen had been 
present at the rally. They made one arrest. The young man taken 
into custody was a member of the Progressive Citizens of Amer- 
ica. . . . 

"It was bound to happen sooner or later . . . ," wrote H. E. 
Sharkey, editor of the Gazette and Daily of York, Pennsylvania. 
"The mob was applying the new loyalty in a way that was pre- 
pared for it in the halls of Congress ... If it takes more riotmg, 
and some real skull-cracking to make Americans conform to the 
new loyalty, there'll be plenty of volunteers." 

Three weeks later, at the other end of the continent, an evening 
meeting of the LaCrescenta Democratic Club was in session at a 
private home in the suburbs of Los Angeles when suddenly a band 
of men wearing American Legion caps poured into the house. The 
leader of the band pushed his way through the startled members of 
the Club, thrust the Club secretary from the speakers' table, and 
began reading a statement which opened with the words: "Progres- 
sive Citizens of America ..." 

The owner of the house, a retired fruit grower named Hugh 
Hardyman, told the Legionnaire he was raiding the wrong organi- 

286 



zation. Ignoring Hardyman, the Legionnaire sharply ordered his 
men, "Proceed according to plan!" 

"It was just like the Gestapo," later reported Don Carpenter, 
editor of the Montrose Ledger, who was covering the meeting. "The 
leader read some sort of edict that they knew what this outfit was, 
had scouted the meetings, checked backgrounds and would give us 
ten minutes to disperse or they'd take matters into their own 
hands." 

In Congress, Representative Chet Holifield of California de- 
nounced the raid as part of a nationwide "wave of fear, suspicion 
and hysteria." Holding up newspaper photographs taken of the 
raiders. Congressman HoHfield warned: 

It was a Democratic Club in Montrose ... it may be a Catholic 
group, or a Jewish group, or a Republican group, or a Negro group, 
or a labor group next time . . . 

"Are we on the verge of storm trooper incidents throughout 
America?" asked Holifield. 

Almost as the Congressman spoke, the answer was being given to 
his question. In Trenton and Newark, in Philadelphia and New 
York City, in Detroit, Chicago and New Orleans, gangs of Amer- 
ican Legionnaires, CathoUc War Veterans, Ku Kluxers, and former 
members of the Christian Front and the German-American Bund 
were raiding public and private meetings, attacking peacefully 
assembled American citizens, and perpetrating lawless and violent 
acts against what they called "Communist organizations." 

"Men wearing Legion caps," reported the railroad brotherhood 
weekly, Labor, "are breaking up meetings from Washington to 
Los Angeles. Their excuse is that the participants are *reds' or 'fel- 
low-travelers.' That's the way Mussolini started in Italy and Hitler 
in Germany . . ." 

As in Europe during the rise of fascism, Communists in America 
were singled out for especially violent treatment. 

In Columbus, Ohio, on the night of March 30, 1948, a mob of 
several hundred men smashed into the home of Frank Hashmall, 
the executive secretary of the local branch of the Communist 
Party. Not finding Hashmall, who had been forewarned of the 
raid and taken his family to the house of a friend, the mob ran- 
sacked the house, tearing up books, demolishing furniture, breaking 

287 



/ 



windows. Police officers summoned to the scene stood around 
joking with members of the mob and then withdrew. 

None of the participants in the raid was arrested. 

Asked to comment on the raid, Governor Thomas J. Herbert of 
Ohio dismissed it as an incident "where a few men lost their 
heads. . . . This wasn't an organized mob. I don't intend to inter- 
fere unless there is a pattern estabhshed." The Governor went on 
to say: 

"Hashmall should go back to Russia . . . We don't Hke Com- 
munists and we don't need any in Ohio. It's not that kind of state.'* 

Six weeks later, the anti-Communist crusade claimed its first 
murder victim. He was a twenty-eight year old seaman named 
Robert New, who was port agent for the National iMaritime 
Union and Chairman of the Wallace for President Committee in 
Charleston, South Carolina. 

New's murderer, Rudolpho Serreo, was a member of the NMU's 
anti-Communist bloc, which was headed by the union's president, 
Joseph Curran. A vicious brawler once acquitted on a plea of self- 
defense after stabbing a shipmate to death, Serreo had repeatedly 
threatened to "fix New, that nigger lover and Wallace stooge." 

On the afternoon of May 7, 1948, Serreo telephoned Charleston 
police headquarters and told the police he intended to put an end 
to New's "Commie propaganda" and "niggerism." "You better 
bring an ambulance along," said Serreo. "I'm looking for trouble, 
and someone may get hurt." 

Shortly afterwards, at the union hall, Serreo attacked New with 
a butcher knife, stabbing him several times in the body and then 
slashing his jugular vein. 

Arrested and jailed, Serreo was treated with marked solicitude 
while awaiting trial. "I'm doing everything I can for Serreo," an- 
nounced the jail warden. 

Charleston's ex-mayor Thomas P. Stoney, head of the largest 
law firm in town, undertook Serreo's defense. According to Stoney, 
the real criminal was not the murderer but the man who had been 
murdered. "At the trial," said the ex-mayor, "I will prosecute Bob 
New for raising unrest among colored people in the south. I will 
prosecute him also as the chairman of the Wallace committee, as a 
communist." 

Serreo himself felt that in killing New he had performed an im- 
portant, patriotic service. In a letter to the NxMU chief, Joseph 
288 



Curran, Serreo wrote: "Well, Joe, I did all I can to keep the NMU 
from going Commie, and I'm very, very sorry I can't do more." 

Serreo's trial took place in September. He was found guilty of 
manslaughter. In passing sentence. Judge J. Frank Eaton cliided 
Serreo for "acting unwisely" and taking the law into his own 
hands. The killer was sentenced to three years imprisonment . . . 

On September 22, 1948, the chairman of the New York State 
Communist Party, Robert Thompson, was attacked late at night on 
his way home by two thugs wielding blackjacks. When Thompson, 
a sturdy thirty-three year old war veteran who was awarded the 
Distinguished Service Cross for heroism during the war, fought 
back vigorously, one of his assailants drew a knife and stabbed 
Thompson in the abdomen. The thugs then jumped in a waiting car 
and sped away. 

Half-conscious and bleeding profusely, the Communist leader 
dragged himself to a nearby house of a friend. Medical examination 
showed that Thompson had suffered contusions of the cervical spine 
and brain concussion, and that if the knife wound had been half an 
inch higher, it would have been fatal . . . 

A delegation headed by the Communist New York Council- 
man, Benjamin J. Davis, went to see Mayor William O'Dwyer to 
demand a special investigation of the crime. The mayor refused to 
grant the delegation an audience. Newspapers intimated that the 
assault had been dehberately staged by the Communists to win 
"public sympathy." The New York Pohce Department conducted 
a brief, casual investigation. No arrests were made . . . 

Two months after the attack, on the evening of November 20, 
while Thompson and his wife were at a motion picture theatre, 
a private detective and former labor spy named Robert J. Burke 
burst into Thompson's house. Flashing his detective's badge at Mrs. 
Mildred Cheney and Harry Rainey, who were minding the Thomp- 
son children, Burke told them he was carrying a gun and warned 
them not to make a sound. Burke went to the bedroom of Thompn 
son's eight-year old daughter, made an indecent exposure in front 
of her, and carried the terrified child into the bathroom, locking 
the door behind him. 

Mrs. Cheney and Rainey broke open the door. They wrested 
the child from Burke, who then shambled from the house . . . 

Arrested and brought to trial on charges of illegal entry, inde- 

289 



cent exposure and seeking to impair the morals of a minor, Burke 
pleaded that he did not like Communists and that he wanted to give 
Thompson a "hard time." The judge held Burke innocent of illegal 
entry but found him guilty on the two morals charges. 

The judge's ruling, however, was set aside and a new trial 
scheduled when Assistant District Attorney Irving Shapiro, who 
had himself prosecuted the case, found a technical "error" in 
Burke's typewritten confession. 

A second trial was held. This time, Burke was found not guilty 
on all charges and set free. 

4. "Is this America?" 

"There is an hysterical campaign raging here ostensibly directed 
against the ever-popular target, the Communists," wrote attorney 
Abraham Pomerantz in the December 1947 issue of the Protestant 
magazine. "When you examine it more closely, however, it becomes 
apparent that the attack is really aimed at the liquidation of all 
resistance to the mounting tide of war and reaction." 

Pomerantz went on to say: 

The approach, copied from the Nazis works this way: 

The press and radio first lay down a terrific barrage against the Red 

Menace. Headlines without a shred of substance shriek of atom bomb 

spies, or plots to overthrow our government, of espionage, of high 

treason, and of other blood-curdling crimes. 

We are now ready for the second stage: the pinning of the label 

"Red" indiscriminately on all opposition. 

The chief opposition to the domestic and foreign policies of the 
Government in 1948 was formed by the Progressive Party under 
the leadership of former Vice-President Henry A. Wallace. 

On January 29, 1948, a National Wallace for President Committee 
had been set up under the chairmanship of Elmer Benson, the 
militantly progressive former Governor of Minnesota. Acting as 
Co-Chairman of the Committee were the noted sculptor, Joe David- 
son; Paul Robeson, renowned singer and actor; and Rexford Guy 
Tugwell, former prominent New Dealer and ex-Governor of Puerto 
Rico. The Executive Director was C. B. Baldwin, former Farm 
Security Administrator.* 

* Among other New Dealers, liberals and labor leaders who became mem- 
bers of the National Wallace for President Committee were Robert Morss 

290 



In his opening address to the first convention of the National 
Wallace for President Committee which was held in Chicago in 
April 1948, former Governor Benson summarized the reasons why 
there was "an imperative need for a new party." Said Benson: 

On the day after tomorrow, three years will have elapsed since 
FrankHn Delano Roosevelt died. Within that brief period, profound and 
sinister changes have occurred in our land. 

During the thirteen years that Roosevelt was President, our nation 
moved steadily forward toward the achievement of a secure and mean- 
ingful way of life . . . 

Following Roosevelt's death, declared Benson, the Government of 
the United States had "fallen into the hands of that small but vastly 
powerful clique which was characterized by Roosevelt as the eco- 
nomic royalists." Controlling both major parties, this cHque had 
"embarked upon a scheme to dominate and control the world 
market . . . Nor do they care if they thrust our country into an- 
other war." As part of their campaign, which was being carried 
on "in the name of a crusade against Communism," they had 
launched "an intensive assault on the civil and pohtical rights of 
American citizens." 

"When a Government ceases to represent the people," stated 
Benson, "when men holding pohtical power become the hirehngs 
of the privileged few, then it is time to change the composition of 
that Government. That time is now!" 

By the first week in February, Wallace for President Committees 
had been established in twelve states and fourteen more committees 
were in the process of formation. On February 18, Leo Isaacson, 
an American Labor Party candidate running on the Wallace ticket 
in a congressional bi-election in the Bronx, New York, was elected 
to the House of Representatives by an overwhelming majority. In 
March, the Independent Progressive Party supporting Wallace in 
CaHfornia filed 295,951 vahd petitions to win a place on the ballot 
in that state. Throughout the spring and early summer, giant mass 
rallies for Wallace were held in New York, Philadelphia, Detroit, 
Chicago, Los Angeles, and other cities. 



Lovett, former Governor of the Virgin Islands; Albert J. Fitzgerald, President 
of the United Electrical and Machine Workers Union; O. John Rogge, former 
Assistant to the U. S. Attorney General; Dr. W. E. B. DuBois, outstanding 
scholar and historian; Dr. Maud Slye, distinguished cancer specialist; Charles 
P. Howard, Des Moines publisher and ex-member of the Republican National 
Committee; and Rockwell Kent, well-known artist. 

291 



The founding convention of the Progressive Party, attended by 
3240 delegates and alternates from forty-eight states, took place in 
Philadelphia on July 22-25. Henry Wallace was nominated as the 
new party's candidate for President, and Senator Glen H. Taylor 
for Vice-President. 

From its inception, the Wallace movement was the target of an 
intensive barrage of violent denunciation and vitriolic abuse. The 
nation's press and radio branded the Progressive Party as a "Com- 
munist-front organization" controlled by a cabal receiving "orders 
from Moscow." Wallace was pictured as a "muddle-headed 
dreamer" who had become "Stalin's chief spokesman" in America. 
"Tools of the KremHn," "fifth columnists for Russia" and "traitors 
to the American Government" were some of the typical terms used 
to describe Progressive Party members. 

In Congress, members of both houses called for a Federal investi- 
gation of the Progressive Party. "A vote for Henry Wallace," 
declared Senator Scott W. Lucas of Illinois, "is a vote for the 
Kremlin." 

At a White House press conference, President Truman asked: 
"Why doesn't Wallace go back to Russia?" 

As the anti- Wallace propaganda mounted in virulence and pro- 
vocativeness, there simultaneously evolved a nationwide pattern of 
repressive measures against the Progressive Party. 

With increasing frequency, the Progressive Party was denied 
access to public halls, refused permits for street corner meetings 
and forbidden to distribute campaign literature. Arrests of Pro- 
gressive Party public speakers, sound truck drivers, canvassers and 
even candidates for office became commonplace throughout the 
country. 

While many newspapers refused to accept paid advertisements 
of the Progressive Party, the press in Pittsburgh, Birmingham, 
Danbury and other cities pubHshed the names and addresses of per- 
sons who had signed petitions to place Wallace on the ballot. Small 
merchants who publicly supported the Progressive Party found 
themselves faced with organized boycotts, and men and women 
were repeatedly dismissed from jobs simply for wearing Wallace 
buttons. 

Not a few professors were discharged from college posts for 
pro- Wallace sympathies and activities. These were typical cases: 
292 



Dr. Clare?ice R. Athearn, professor of philosophy and social ethics -at 
Lycoming College in Pennsylvania, requested by the college authorities 
to resign from the chairmanship of the Lycoming County Progressive 
Party and subsequently dismissed from the college. 

Dr. George Farker, teacher of religion and philosophy at Evansville 
College in Indiana, ousted from his post tv^o days after presiding at a 
Wallace rally. 

Professor Luther K. MacNair^ Dean of Lydon State Teachers College 
in Vermont, forced to resign after being sharply attacked in the local 
press for his support of Wallace, and following the appearance of an 
editorial in the Burlington Times of an article entitled "MacNair Must 
Go." 

Processor Clyde Miller, well-known authority on propaganda analysis, 
dropped by Columbia University after being listed as a member of the 
700-man national committee of the Wallace movement. 

Leonard Chosen, Charles G. Davis and Daniel D. Ashkenes, faculty 
members at the University of Miami, discharged for Progressive Party 
activity. 

Professor Curtis D. MacDougall, at Northwestern University, was ad- 
vised by university authorities he would be forced to resign unless he 
withdrew as Progressive Party candidate for United States Senate. 
Twenty-five other professors and instructors at this university were 
told that unless they discontinued their pro-Wallace activities they 
would be discharged. 

The chief of police in Detroit, Harry S. Toy, publicly announced 
that in his opinion members of the Progressive Party were "un- 
American," and that such "un- Americans ought to be either shot, 
thrown out of the country, or put in jail." * 

In one state after another, open attempts were made to keep the 
Progressive Party off the ballot. 

* The forms of public and private pressure against Wallace supporters in 
all walks of life were infinitely varied. In Minneapolis, Minnesota, a socially 
prominent woman who had invited a group of doctors and professors to her 
home to discuss a program for the improvement of state hospitals later learned 
that, because of her well-known pro-Wallace sentiments, police officials had 
recorded the license plate numbers of all cars parked outside her house during 
the meeting. In Boston, Massachusetts, several women circulating Wallace 
petitions were warned by school headmasters that if they continued their 
political activities, their children might later find it "difficult" to enter certain 
leading universities. In St. Louis, Missouri, a woman whose favorite pet was 
a small blind dog received anonymous telephone calls informing her that if 
she did not discontinue her pro-Wallace activities, her dog would be poisoned. 

In the little town of Au Sable Forks in up-state New York, a boycott was 
secredy organized against the Asgaard Dairy which was owned by the famous 
artist, Rockwell Kent, an outspoken Wallace supporter and a congressional 
candidate on the American Labor Party ticket. The boycott forced Kent's 
dairy out of business. 

293 



On June 4, Secretary of State Edward Hummel of Ohio an- 
nounced that the new party would not be permitted to appear on 
the ballot in that state, as he had received "conclusive proof" from 
the FBI that leading Wallace supporters advocated overthrow of 
the United States Government "by force and violence." In Ne- 
braska and Oklahoma the Progressive Party was ruled off the ballot 
on technical grounds. Ballot certification was at first refused the 
Progressive Party in Wyoming, Arkansas, Missouri, and Florida. 

Despite the fact that 100,000 petition signatures were collected in 
Illinois, the Progressive Party was barred from the ballot through- 
out the state, with the exception of Cook County, on the grounds 
of failure to meet technical requirements.* 

"This letter," read a communication received at the New York 
headquarters of the Progressive Party from the Birmingham, Ala- 
bama, office in the summer of 1948, "is being written in longhand 
due to the fact that our office was broken into a few nights ago 
and all of our office equipment was damaged. The intruders took 
all our literature as well as our files." 

The incident was not exceptional. Acts of vandalism and violence 
against the Wallace movement were becoming commonplace. In 
Boston, Cleveland, Philadelphia, Detroit and a score of other cities, 
the windows of Progressive Party headquarters were smashed, 
meetings of Wallace supporters were broken up by hoodlums, and 
persons attending open-air rallies were egged and stoned . . . 

On April 6, when a Wallace rally took place in the Coliseum at 
Evansville, Indiana, a shouting mob stormed into the building and 
tried to force their way into the auditorium where Wallace was 
speaking. After a wild skirmish, during which Wallace's campaign 
manager, C. B. Baldwin, and several Wallace aides were assaulted, 
the intruders were finally driven from the Coliseum. 

The harrowing experience of a group of Progressive Party cam- 
paign workers in Augusta, Georgia, was later vividly recounted by 
one of them, Rhoda Gaye Ascher, in an article published in the 
New York Star. Miss Ascher related how a band of men "all armed 
with pistols or revolvers" had raided at night the house where the 
Wallace campaigners were staying: 

* In the end, after prolonged litigation and organized popular pressure, the 
Progressive Party succeeded in obtaining certification in forty-five states. The 
Party remained off the ballot in Nebraska, Oklahoma and Illinois (with the 
exception of Cook County). 

294 



. . . one of the men reversed his gun and repeatedly banged Forbes 
[one of the Wallace group] on the head . . . Forbes fell back, with 
blood streaming from two wounds on his forehead. 

Annie Mae Leathers, an Atlanta worker for Wallace, came screaming 
from the kitchen. "Who are you?" she kept saying over and over again 
to the men. 

One of the crowd grabbed her by her hair and slapped her across the 
mouth. "Shut up, you dirty New York Communist," he said. 

After smashing the windows and breaking up the furniture in the 
house, the raiders forced Miss Ascher and her co-workers into cars. 
They were driven out into the country to a field where dozens of 
cars were already parked and a crowd was waiting. From all sides 
came shouts of "String 'em up." One of the mob produced a rope. 
Another said, "The chief ain't here. Let's let it ride." 

The Progressive Party campaign workers were warned: "The 
Klan tells you to get out and stay out. We don't want any Jew 
Communists stirring up the niggers." 

The members of the mob then got in their cars and drove off. . . . 

Miss Ascher and her companions had managed to note the license 
plate numbers of several of the cars assembled in the field. One of 
these licenses, they later found out, belonged to an Augusta police 
car. 

Organized violence against the Progressive Party reached a peak 
of intensityN during Wallace's campaign tour of the South at the end 
of the summer. 

Wallace's key-note address of the southern tour was delivered at 
the North Carolina Progressive Party Convention on August 29 at 
Durham. At a strategic moment, hoodlums attacked some of the 
convention delegates. "Eggs were thrown," reported Twie maga- 
zine, "firecrackers and stinkbombs exploded, a national Guardsman 
fired into the air." Uniformed policemen and National Guardsmen 
finally quelled the rioting. During the melee, a University of North 
Carolina student and Wallace supporter named James Harris, was 
stabbed in the arm and back . . . 

On the following day Wallace drove to Burlington, N. C, to 
speak at a large street-corner meeting. As the Presidential candidate 
stepped from his car, he was pelted with eggs and tomatoes. There 
was a tumult of boos, epithets and cries of "Why don't you go 
back to Russia?" Without hesitation, Wallace strode into the midst 

295 



of the crowd. Confronting several of his assailants, he demanded: 
*'Is this America?" 

At the town of Charlotte, only one policeman was assigned by 
the local authorities to protect Wallace at a meeting attended by 
more than 3,000 people. As the Presidential candidate shouldered 
his way through the crowd toward his car after his speech, an 
angry shouting mob surged menacingly about him. "For a few 
moments," reported John Cabot Smith of the Ne^co York Herald 
Tribune, "it looked as if he might not be able to make it . . ." 

In town after town where Wallace spoke on his southern tour, 
ugly-tempered mobs subjected him to every imaginable form of 
personal insult, bombarded him with eggs, tomatoes and other 
missiles, and sought to break up his meetings by provoking riots. 

Never before in the history of the United States had a Presi- 
dential candidate been the object of such abuse, open threats of 
violence and organized mob assaults. 

The Cass Lake Times of Minnesota stated: 

The newspapers of the country are holding up their hands in holy 
horror at the t^^ throwing . . . These primitive acts of primitive men 
have been condemned as cowardly, unfair, intolerant and un-American. 

We cannot see much difference between the throwing of eggs and 
tomatoes at Wallace, and the hurling of epithets that have branded him 
as a Communist. We do not know which is worse— throwing tomatoes 
and eggs or cartooning Wallace as a slave of Stalin. 

The mob has taken seriously the newspapers' attacks on Wallace . . . 

The months of virulent propaganda, systematic intimidation, 
widespread repression and violence against the Progressive Party 
were not without their effect. Estimates of Wallace's potential vote 
had ranged from five to ten milHon. The actual vote received by 
Wallace on November 7, 1948, was 1,137,957.* 

Harry S. Truman, orating about a "Fair Deal" for the nation and 
pledging a new era of far-reaching Rooseveltian reforms, con- 
founded political wiseacres and public opinion experts by over- 
whelming his Republican opponent Thomas E. Dewey. 

"So now we have in the White House a man with the most 



* The unexpectedly limited vote obtained by Wenry A. Wallace was not 
to be explained entirely in terms of the intensive campaign against the Pro- 
gressive Party. A major cause of the smallness of Wallace's vote was the 
failure of the organized labor movement— with the exception of a handful of 
unions— to support his candidacy. (In New York Citv, where considerable 
labor support was forthcoming, the militantly progressive Representative Vito 
Marcantonio was re-elected to Congress on the Progressive Part^' ticket.) 

296 



radical platform in presidential history . . . ," proclaimed the Neni> 
Republic. "Reaction is repudiated. The New Deal is again em- 
powered to carry forward the promise of American life. . . . The 
government ... is one whose watchword is: Da?mi the torpedoes- 
Full speed aheadr 

But the editors of the Neuo Republic^ like many other American 
liberals, mistook campaign promises for the realities of life. 

5. Method in Madness 

The first to witness the strange and awesome phenomenon had 
been a businessman in Boise, Idaho. Late one afternoon, he had 
suddenly seen nine huge objects resembling "flying saucers" which 
hurtled through the sky at terrific speed and then, as abruptly as 
they appeared, vanished over the Cascade Mountains. Soon after 
the details of this remarkable experience had been reported in the 
press and on the radio, Lieutenant Governor Don. S. Whitehead of 
Idaho announced he had seen a huge disk-like object which "didn't 
move but just seemed to go below the horizon with the rotation of 
the earth." A tradesman in Pine Bluff, Arkansas, sighted a flying 
form "about the size and color of a washtub." Weird engines fol- 
lowed by "vapor trails" raced through the heavens before the 
startled eyes of a carpenter in Kansas City, Missouri. Two airmen 
flying a passenger plane over a mountain range in Utah beheld "sev- 
eral enormous luminous cylindrical objects" not far off in the sky» 
turning their plane from its course, pursued the objects for some 
distance before the mysterious quarry suddenly disappeared . . . 

With similar reports coming from every section of the country, 
Meade Layne, a publisher of an occult magazine in San Diego, 
California, informed the press that he had managed— with the aid of 
a spiritual medium— to establish direct contact with one of the "fly- 
ing saucers." Aboard it, said Layne, were living creatures who 
wanted to take up residence in the United States. "They come with 
good intent," Layne confidently assured newsmen. 

The spiritualist's optimistic opinion, however, was not shared by 
considerable numbers of Americans who were firmly convinced 
that the extraordinary objects plunging through the skies were 
"secret Soviet weapons" . . . 

Subsequently indicating the extent of the flying saucer "epi- 
demic," the United States News reported on January 6, 1950: 

After two years spent running down 375 rumors and reports of 
mysterious flying saucers, the Air Force closed down its investigation 

297 



last week with this conclusion: There is no such thing. The flying 
saucers that hundreds of people think they have seen are really: "(i) 
misinterpretation of various conventional objects, (2) a mild form of 
mass hysteria or (3) hoaxes." 

In one respect at least the "mysterious flying saucers" were not 
unique. There were at the time other, not unrelated, forms of "mass 
hysteria" in America. 

Shortly before the first flying saucers had been seen in the United 
States, Tmie magazine had told its readers: 

In 1948, strategists guess, Russia will have power to send one-way 
missions of 1,000 planes against the U.S. By 1949, they think, Russia will 
probably have guided missiles, armed with one-ton war head, with a 
range of 3,000 miles. By 1952 diseaSe-tipped bacterial weapons may be 
practical. Any time after 1952, by their estimates, Russia is very likely 
to have the Bomb. 

Day by day, during the years 1947-49, ^^^ nation's press was 
filled with similar portentous accounts of stratosphere and inter- 
continental bombers, giant rockets and increasingly powerful atom 
bombs, bacterial weapons, military maneuvers, mobilization plans, 
and urgent secret conferences between American and Western 
European Chiefs of Staff. Scarcely a week went by without some 
frightening new "threat of war" looming on the international 
horizon. Cabinet members, diplomats, congressmen and four-star 
generals dwelt incessantly on the "world crisis," "the Russian men- 
ace to world peace," and the urgent need for "adequate defense 
measures." 

"The atmosphere in Washington today," wrote Joseph and 
Stewart Alsop in their column in the Neuo York Herald-Tribune 
on March 17, 1948, "is no longer a postwar atmosphere. It is, to put 
it bluntly, a prewar atmosphere ... it is now universally admitted 
that war within the next few months is certainly possible." 

The Gallup poll reported that seventy-three percent of the voting 
population of America already believed that a third world war was 
inevitable . . .* 



* Accompanying the growing war hysteria, and in no small measure con- 
tributing to it, were a series of sensational cases involving "secret Soviet 
agents," purportedly engaged in plots against American security. 

On March 26, 1946, with much fanfare, the FBI announced the arrest of Lieu- 
tenant Nicolai Redin, a Russian officer attached to the Soviet consulate in 
San Francisco. The FBI charged that Redin had been secretly involved in 
obtaining plans and information connected with the U.S. destroyer tender 
Yellowstone, which was slated to take part in the Bikini atomic bomb test. 

298 



"A war strategy is guiding U.S. policy," U.S. Nezus had reported 
on August 8, 1947, less than two years after V-J Day. "There's a 
regular war strategy in moves made. The war in this state is politi- 



During the ensuing trial, none of the charges were proved against Redin. He 
Avas acquitted July 17, 1946. 

In February, 1947, newspapers throughout the country headhned the news 
that the Un-American Activities Committee had tracked down and was sum- 
moning for questioning "the key Kremhn agent in America" and "the brains of 
a red atom bomb spy ring." His name was Gerhart Eisler. An anti-fascist 
refugee and German Communist journalist, Eisler had resided in America 
since 1941 and had been about to return to Germany late in 1946 when his 
exit visa was suddenly cancelled. At the Committee hearing, Eisler requested 
permission to read a brief statement. Denied this request, Eisler refused to 
testify. For this action, he was subsequently found guilty of contempt of 
Congress. In May 1949, after being repeatedly refused an exit permit, Eisler 
stowed away aboard the Polish boat, Batory and returned to Germany. No 
evidence was ever produced to establish that Eisler was a Soviet spy or that 
he had conspired against the U.S. Government. 

On August 13, 1947, the New York World Telegram and Sun front-paged 
stories reporting that a secret federal grand jury hearing of vital importance 
was underway in New York City. According to these papers, the grand jury 
was investigating a major "spy ring" involving top American Communist func- 
tionaries, trade union leaders and Soviet agents. Despite the sensational story, 
no such plot was to be uncovered by this or any other jury. 

In July and August, 1948, the American press and radio blazoned a lurid 
tale of "Soviet war-time espionage operations in America" as told by a Com- 
munist renegade named Elizabeth Bentley in testimony before a Senate in- 
vestigating committee and the Un-American Activities Committee. Aliss 
Bentley, a heavy-set rather ungainly woman who had been glamorously de- 
scribed before her public appearance as a "Soviet Alata Hari" and "blonde 
spy queen", related how "Red agents" in key U.S. war offices had stolen vital 
secret data which they gave her and she in turn delivered to Soviet repre- 
sentatives. The "Supreme Presidium of the Soviet Union," said Aliss Bentley, 
had awarded her— in absentia— the Order of the Red Star for "extremely 
valuable services" to Russia. Government investigators were unable to sub- 
stantiate the details of her fantastic story. 

The most sensational "spy ring" case— and most widely publicized by press, 
radio, newsreel and television— began on August 3, 1948, with the testimony 
before the un-American Activities Committee of Whittaker Chambers, ex- 
Communist and senior editor of Thjie magazine. A self-admitted perjurer, 
who was subsequently to be characterized in court by two eminent psychia- 
trists as a "psychopathic personality," Chambers testified that he had served 
before the war as a courier in a Soviet espionage ring. Among those charged 
by Chambers with giving him confidential data was Alger Hiss, a former high 
State Department official who had acted as adviser to Roosevelt at Yalta and 
as Secretary of the Dumbarton Oaks and San Francisco Conferences. Sum- 
moned before a Federal Grand Jury, Hiss was indicted for perjury for deny- 
ing Chambers' accusations against him. When Hiss' first trial in. the summer 
of 1949 ended in a hung jury, several congressmen demanded that the judge 
be investigated; newspapers published the voting record of the jury; and 
jurors who had voted for Hiss' acquittal received threatening telephone calls 

299 



cal, economic, not military . . . War itself, fighting war, is prob- 
ably ten years away, maybe 15, maybe 5." 

These were some of the more important events of 1947- 1949 
which reflected the war strategy guiding U.S. pohcy: 

May 26, 194"]: Exactly two and a half months after the promulgation 
of the Truman Doctrine, the President submitted the Inter-Con- 
tinental Defense Plan to Congress, calling for the modernization 
and standardization of the equipment and training methods of Latin 
America and Canada under the supervision of the United States. 

]ime 2j ip4j: The President's Advisory Commission on Universal 
Training warned that "the coming war will be cataclysmic in its 
suddenness and destructiveness," and called for a special army of 
trained men throughout the nation to deal with "wartime emerg- 
encies," and for universal military training for all young men. 

June y, 194-]: Speaking at Harvard University, Secretary of State 
Marshall projected a program of American aid to European coun- 
tries, which was to become known as the Marshall Plan.* 



and letters. In a second trial, a new jury found Hiss guilty and, on January 25, 
1950, he was sentenced to five years imprisonment. 

Rivaling the Hiss-Chambers case for headlines in the nation's press was the 
Coplon-Gubitchev case. On March 24, 1949, Judith Coplon, a Justice Depart- 
ment employe, and Valentin Gubitchev, a Soviet citizen employed by the 
United Nations, were arrested in New York. In Miss Coplon's purse, the FBI 
agents found documents relating to "national defense"— documents which Miss 
Coplon later claimed had been planted on her. Among these documents were 
confidential FBI reports charging outstanding Hollyu'ood personalities and 
national literary figures with being Communists or Communist sympathizers. 
Miss Coplon was brought to trial in Washington on the charge of stealing 
government secret documents to aid a foreign power. Although the Govern- 
ment was unable to prove Miss Coplon intended to transmit the documents to 
Gubitchev, she was sentenced on July i, 1949, to from 40 months to 10 years 
imprisonment. A second trial involving both Judith Coplon and Valentin 
Gubitchev began in November. During the early stages of the trial, FBI agents 
admitted, under questioning by defense counsel, that some 81 agents had illeg- 
ally tapped telephone wires, and that numerous statements in their own reports 
were inaccurate. Regarding defense attorney Abraham Pomerantz, Newsweek 
reported on January 30, 1950: "He was able to demonstrate that if FBI agents 
had not committed perjury in describing the bureau's wiretap activities, they 
had skirted very close to it." On March 9, the two defendants were found 
guilty and sentenced to 15 years imprisonment. Gubitchev, acting on a State 
Department proposal, left the country. 

* At the end of 1948, before the European Recovery Program had been in 
effect a year, Joseph W. Frazer of the Kaiser-Frazer Automobile Corporation 
told reporters in Rome that the "Marshall Plan is proper as a military ex- 
pedient but stinks as a business project." 

Despite the appropriation of more than ten billion dollars for European aid 
during 1948- 1949, American exports declined drastically. Moreover, in the 
nations covered by ERP, unemployment increased at an accelerating tempo. 
During 1948, the number of unemployed nearly doubled in France and rose 

300 



July 26, 194"]: President Truman signed the National Security Act, 
establishing a National War Council and unifying the armed serv- 
ices under a Secretary of Defense. The President appointed James 
V. Forrestal, former Secretary of the Navy, to the new post. 

January 12, 1948: In his budget message to Congress, President Tru- 
man called for the expenditure of $18,034,000,000 for national 
defense and international subsidies. "Five budget items directly re- 
lated to war," reported the United States News, "make up 79 per 
cent of the budget." 

May 6, 1948: The Senate approved the establishment of a seventy 
force air group, following discussion in which Senator Henry 
Styles Bridges, chairman of the Appropriations Committee, had 
characterized the Soviet Union as America's "only possible foe." 

June 24, 1948: President Truman signed a bill authorizing the first 
peacetime draft in the nation's history. 

Nove77iber 75, 1948: The National Military Establishment published a 
plan detailing civilian defense needs and calling for the mobilization 
of 15,000,000 men and women "prepared and equipped to meet the 
problems of enemy attack, and to be ready against any weapon that 
the enemy may use." 

June 20, 1949: President Truman signed the Central Intelligence 
Agency Act, commonly known as the Spy Bill. For "security 
reasons," not even Congress was informed of many of the details of 
various provisions of the Act. Included among these provisions 
were stipulations for the safeguarding of "military secrets"; a plan 
for infiltrating American intelligence agents into foreign countries; 
and measures to facilitate the recruitment of foreign spies by waiv- 
ing immigration regulations in the case of aliens useful "to the 
furtherance of the national intelligence mission." So sweeping were 
the powers granted the Central Intelligence Agency that the New 
York Times warned it was "a legislative catch-all with very broad 
. . . implications, which under improper administration or the spur 
of hysteria could lead to grave abuses of freedom." 

July 2$, 1949: President Truman signed the North Atlantic Pact, 
binding twelve "North Atlantic nations," including Denmark on the 
North Sea and Italy on the Mediterranean, in a treaty providing for 
"mutual assistance against aggression." Directly after signing the 
Pact, Truman sent a message to Congress calling for the passage of 
the Military Assistance Program, to provide $1,450,000,000 for arms 
for the European signatories of the Pact, Iran, the Philippines and 



to almost two million in Italy and to an equal number in Western Germany. 
In its January 27, 1950 issue, the United States News reported: 

"Truman doctrine is dead, discarded . . . Marshall Plan is on the way 
down . . . 

"The turn is away from postwar phase in which U.S. tried, with dollars, 
to mold the kind of world it wanted. Communist victory in China was one 
jolt. Badly unbalanced budget at home was another. Idea is dawning that 
maybe U.S. cannot do in the world all the things it would like to do." 

/ 



Korea, and to effect the "transfer of certain essential items of mili- 
tary equipment, and . . . the assistance of experts in the production 
and use of military equipment and the training of personnel." 

According to Secretary of Defense Louis Johnson, "the basic 
objectives" of the North Atlantic Pact were "to deter war and to 
attain maximum military effectiveness if war cannot be prevented." 

Putting the case somewhat more bluntly, Representative Clarence 
Cannon of Missouri stated: "We will blast at the centers of opera- 
tion and then let our allies send the army in, other boys, not our 
boys, to hold the ground we win . . . With the signing of the At- 
lantic Treaty we have the bases, and all we need now are the planes 
to deliver the bombs." 

The New York Daily News editorialized: "Let's stow the ba- 
loney and doubletalk, and admit there is a treaty creating a military 
alliance which contemplates war on Soviet Russia." 

As the war fever mounted in the United States, an increasing 
number of voices called for immediate launching of a "defensive 
war" against the Soviet Union. Newspapers, magazines and military 
journak began featuring scores of articles graphically forecasting 
the tactics and strategy of an atom bomb offensive against Russia. 

Typical of these military analyses were two lengthy articles by 
the former Chief of Staff of the U.S. Air Force, General Carl Spaatz, 
which were published in consecutive issues of Life magazine in 
June 1948. "It may smack of cynicism," observed General Spaatz in 
the opening passage of the first article, "for a soldier, so soon after 
one war, to start laying out the strategy for the next." The General 
then proceeded to outline a plan for attacking the Soviet Union 
whereby "the precision bombing of a few hundred square miles of 
industrial area in a score of Russian cities would fatally cripple in- 
dustrial power." 

"The first question," said General Spaatz, "is: is it possible to 
reach the vulnerable industrial system of Russia? The controlling 
factor now is the radius of the B-29, which with postwar improve- 
ments is more than 2,000 miles . . ." 

The General answered his own question by making this sugges- 
tion to the reader: 

Take a globe and a string scaled to 2,000 miles, pin one end down at 
Moscow, and swing the free end westward. It will take in the British 
Isles and part of Iceland. Swing it south and it will take in part of North 
Africa. Now do the same thing from the Urals, fixing one end of the 
string on Magnitogorsk and swinging the other south. The free end in 
its sweep will take in Iraq, Iran, and Pakistan as far south as Karachi. 
From the Ukraine-Volga center, the string will pass through Britain, 

302 



France, and North Africa. From Baku in the Caucasus the sweep will 
encompass part of India, Saudi Arabia and part of Europe. There is 
additionally in Siberia a fast-growing center of industry, not to mention 
the double-track Trans-Siberian railroad. This region could be reached 
by B-29 from China and Japan. 

In each case, General Spaatz pointed out, there were within the 
arc formed by the "free end of the string" air bases from which 
B-29 bombers could conduct raids against the specified "priority 
targets" . . . 

In the autumn 1948 edition of the Air University Quarterly Re- 
view, Colonel Dale O. Smith, an ardent exponent of the Spaatz 
school of air warfare, envisioned a "super atomic bhtz" which 
would accomplish an American victory within a matter of weeks. 
"If the war lasts as long as one month," wrote Colonel Smith, "what 
possible targets will there be left to bomb?" The Colonel added, 
"Not to be overlooked are the strategic results of population bomb- 
ing in urban centers." * 

On December 29, 1948, Secretary of Defense Forrestal announced 
that the U.S. high command was studying possibilities of establish- 
ing a "rocket outpost" hung in the skies. An Associated Press dis- 
patch reported: 

From an altitude of more than 200,000 miles, the . . . satellite would 
have the whole earth in its "bomb sight." Beyond the possibility of an 
unmanned, automatic transmitting satellite is the possibility that ways 
might be found to send men and equipment to the satellite, there to 
launch direct rocket attack on earth targets. 

Some scientists believe that the nation which first creates an outer 
space platform for the guidance of launching of atomic warhead rockets 
will dominate the earth. 

"Yet what nation is there that desires war?" demanded former 
Governor Elmer Benson of Minnesota. "The American people do 
not want war; we want peace. We are told by certain voices that 
Russia wants war. But is it conceivable that a country which lost 
close to 10,000,000 of its citizens and had one third of its land and 
resources laid waste in the Second World War— is it conceivable 
that such a country should now deliberately seek a third world 

* Differing quite sharply with the atomic warfare enthusiasts, P. B. Har- 
wood, vice-president of Cutler-Hammer, Inc., told a meeting of the American 
Interprofessional Institute of Milwaukee, "The atom bomb is a poor weapon 
of war because it destroys too much property. Although it sounds cold- 
blooded, the type of weapon we should have, if we must wage war at all, is 
one that will kill only people . . ." 



war? No, it is utterly inconceivable. Like the American people, the 
Russian people want peace. And if the peoples of the world want 
peace, why then is there in our country all this mad talk of war?" 

There was, however, definite method in this seeming madness. 
Behind the frantic talk of war lay certain "practical" calcula- 
tions . . . 

By early 1947 the ephemeral postwar boom had run its course. 
As prices continued to soar, and consumer purchasing power ebbed, 
unsold goods piled up in the nation's warehouses. Talk of an im- 
pending crash was widespread in business circles. 

A crash was averted. The "menace of war," "Soviet aggression," 
spy scares and the "spread of Communism" provided the rationale 
for placing the American economy on a war footing. As Hershel 
Meyer writes in his book, Must We PerishF: 

Big business got its "shot in the arm"— more billions in new armament 
contracts. It was miraculous how the "Communist danger" kept on 
growing and, parallel with it, the monopoly demands for still bigger 
armament orders. With each billion appropriated for planes, bombs and 
guns the war cries of the militarists became more frenzied. Over $20 
billion were to be spent on armaments in the 1949 fiscal year alone, 
more than the United States spent in the entire decade between 1930-40, 
when Japan and Germany threatened American security and world 
peace. This huge peace-time armament appropriation was at once re- 
flected in the rise of stocks and commodities on the exchanges. 

"All fear of a business setback should now be removed," exulted 
Barron^ s Fina?icial Weekly on October 8, 1948, "by a revelation 
that a plan for military aid patterned on the E.C.A. program will be 
one of the first programs submitted to Congress next January. As 
long as the armament prop remains under business it is difiicult to 
beheve that a collapse in demand is imminent." 

Two weeks later, the same Wall Street periodical stated: 

... if military demand should grow much larger it would eliminate any 
dangers from expanded inventories ... If an enormously speeded up 
defense program, or warfare itself, should come, the problem of excess 
inventories would vanish completely. 

On January 14, 1949, in an editorial in the United States News 
entitled "Our Unpreparedness for Sudden Peace," David Lawrence 
wrote: 

We are being asked to spend $15,000,000,000 a year for armaments 
and an additional $1,000,000,000 at least to supply arms to the North 
Atlantic military alliance. 

304 



It is obvious that armament expenditures have given America a false 
prosperity . . . 

Hence the paradox that the biggest economic danger faced by 
America is the danger of a sudden turn to peace by Russia. 

In France, the conservative journal, Vie Francaise, summed up 
this line of reasoning with the headline: "Better a War Than a 

Crisis." * 



* The satisfaction of American businessmen and industrialists with the war 
preparations was by no means shared by the American millions. 

In the forefront of the peace movement in America were the Protestant 
Church organizations. In 1948 the Northern Baptist Convention called for the 
establishment of a World Peace Movement "to save the world from destruc- 
tion." The Michigan Conference of the Methodist Church protested to the 
President "the continuing pressure for military domination of our life" and 
urged "an honest attempt to make peace with Russia." The 400,000 members 
of the United Council of Church Women announced a campaign to ring 
doorbells to build support for peace. 

In its Christmas, 1948 issue The Churchjnan noted ironically: "So, because 
the Christmas song of 'Peace on Earth' haunts Protestantism, it is subversive 
and identical with communism! We suggest that all the 50,000,000 American 
Protestants be jailed." 

On March 25, 26 and 27, 1949, more than 600 outstanding American per- 
sonalities sponsored the Cultural and Scientific Conference for World Peace 
held in New York City under the auspices of the National Council of the 
Arts, Sciences and Professions. Among the sponsors were Dr. Harlow Shapley, 
Henry A. Wallace, Bishop Arthur W. Moulton, Thomas Mann, Albert Ein- 
stein, Aaron Copland, Olin Downes and Lillian Hellman. The plenary and 
panel sessions of the conference were filled to overflowing, and hundreds of 
people were turned away. At the concluding Madison Square Garden meeting 
on March 27, there was an audience of 20,000 people. 

The State Department restricted foreign representation to guests from 
Eastern Europe, refusing visas to more than twenty Western Europeans and 
Latin Americans, including such renowned individuals as Paul Eluard, J. D. 
Bernal, Carlo Levi and Abbe Jean Boulier. Among the foreign guests who did 
attend the conference were Dimitri Shostakovich, Juan Mariniello, Olaf 
Stapledon and Alexander Fadayeev. 

The following month some 300 prominent American figures formed an 
American Sponsoring Committee of the World Congress of Fighters for 
Peace, held in Paris during April 20-25, 1949. Co-chairmen of the American 
Sponsoring Committee were Bishop Arthur W. Moulton, Dr. W. E. B. DuBois 
and O. John Rogge. Fifty American delegates attended the Congress, at which 
there were 2,000 delegates from 72 countries who represented more than 600,- 
000,000 human beings. 

During the first week of September 1949 over 200 American delegates 
attended the American Continental Congress for Peace held in Mexico City. 

On October i and 2, 1949, a National Labor Conference for Peace was held 
in Chicago. It was attended by more than 1,000 delegates from 28 states, each 
representing a minimum of 25 supporters in AFL, CIO, independent unions 
and Railroad Brotherhoods. 

In addition, throughout the nation, there were numerous local individual 
manifestations for peace by widely diversified groups and organizations. 



Chapter xvi 

THE MONSTROUS FACT 



We hold these truths to be self-evident: That all men are 
created equal; that they are endowed by their Creator with 
certain inalienable rights; that among these are hfe, hberty, 
and the pursuit of happiness . . . 

The Declaration of Independence, 
July 4, n-jS. 

For any colored man who has become inocculated with 
the desire for political equality, there is no employment for 
him in the South. This is a white man's country, and will 
always remain a white man's country. 

Congressvmn James F. Brynes, 
August 2$ J 1919. 

When people are divided by a master-race theory, liberty 
and justice are impossible. 

Segregation in Washington— A Report 
of the National Cormnittee on Segrega- 
tion in the Nation^s Capital, 1948. 



I. In Freedom's Name 

From September 1947 to December 1948 a Freedom Train, sym- 
bolically painted red, white and blue, journeyed on an elaborately 
pubUcized tour of America, with three exhibition cars containing 
131 historical documents and flags "marking the development of 
liberty in the United States." The tour, which covered every state 
in the Union, was sponsored by Attorney General Clark and en- 
dorsed by President Truman. It was conducted under the auspices 
of the American Heritage Foundation, the chairman of whose board 
of trustees was Winthrop W. Aldrich, head of the Chase National 
Bank. 

306 



In making public the purposes of the Freedom Train project, the 
American Heritage Foundation stated: 

We shall announce as a basic credo that the essence of democracy is 
the sanctity of the individual. . . . Men were born to be free, for only 
free men can walk the earth with dignity. We shall emphasize the fact 
that our nation holds secure for its people the integrity of the individual 
and the freedom to aspire to the fullest development of the personality. 

The Foundation stressed that the principles it was propagating 
were of international, as well as national, import; 

. . . when we speak of "our way of life" we speak of the hopes and 
aspirations of countless millions all over the world. There are no geo- 
graphic boundaries to the universal yearning of men to be free. . . , 
always we must hold forth "our way of life" as an inspiration to the rest 
of the world. 

Even if such grandiloquent protestations about American democ- 
racy had not come at a time when the traditional rights and free- 
doms of Americans were under unprecedented attack, there would 
still have been one sahent aspect of the American "way of Hfe'* 
which could scarcely serve as an inspiration to the rest of the world. 

That was the infamous and monstrous fact that 1 5,000,000 Ameri- 
cans—one out of every ten in the nation— were sentenced from birth 
to second-class citizenship and were systematically subjected to 
lifelong oppression, humiliation and most dreadful persecution. 

More than a century and a half after the American Republic 
was founded on the basic principle that all men are created equal, 
and almost a hundred years after the signing of the Emancipation 
Proclamation, Negro citizens in postwar America were living under 
conditions comparable in many respects to those endured by Jews 
in pre-war Nazi Germany. 

"With the possible exception of South Africa," Harry Haywood 
wrote in 1948 regarding the status of American Negroes in his 
book, Negro Liberation, "in no other country has 'race' been made 
to play such a decisive role in the socio-economic oppression of a 
people . . . Slavery as ownership of chattel is gone; as a caste system 
it remains. Its purpose is to keep non-whites in a position which, 
in one way or another, is inferior or subordinate to that of whites. 
Its devices range from lynchings and mob violence, at the one 
extreme, through legal enactments and extra-legal manipulations of 

307 



courts and police, to custom and etiquette as instruments of caste 
control." 

During the New Deal era, particularly in the war years, certain 
breaches had been made in this American caste system. With the 
growth of progressive trade unionism, symbolized chiefly in the 
CIO, and with the establishmant of the Fair Employment Practices 
Committee, tens of thousands of Negro men and women obtained 
jobs as skilled workers from which they had previously been barred. 
And, as the manpower needs of the armed forces multiplied, the 
traditional discrimination against Negro enlistments in various 
branches of the service was largely broken down.* 

Following V-J Day, however, the old policies were swiftly re- 
vived. In the summer of 1946, the Army stopped accepting Negro 
enlistments; t and a few months later every Negro in the Marine 
Corps was given his choice of a discharge or a transfer to the 
steward's branch. 

Last to be hired in industry, Negro workers were first to be fired. 
Between July 1945 and April 1946, unemployment among Negroes 
increased twice as rapidly as among whites. Congress refused to 
appropriate money to enable the FEPC to continue its work beyond 
May 1946. In its final report, the Committee stated: 

The wartime employment gains of Negro, Mexican- American and 
Jewish workers are being lost through an unchecked revival of dis- 
criminatory practises . . . Nothing short of congressional action to end 
employment discrimination can prevent the freezing of American work- 
ers into fixed groups, with ability and hard work of no account to those 
of the "wrong" race or religion. 

Jim Crow was again the law of the land. 

Some concept of the legally institutionalized Jim Crowism exist- 
ing in many states in postwar America may be derived from these 
clauses in the Constitution of Mississippi: 

Article 8, Education, Section 20J 

Separate schools shall be maintained for children of the white and 
colored races. 



* Despite the gains made by Negroes in the armed services during the war, 
it remained a shocking fact— and one of the major contradictions of the 
American war effort— that almost all Negroes were compelled to serve in 
separate units. Negro soldiers were given the right to die, but not the right to 
fight in the company of white soldiers. 

tin 1947, when the Army had reduced the number of Negro soldiers to 
the desired proportion, a limited number of enlistments were accepted. 

308 



Article lo, The Penitentiary and Prisons, Section 22$ 

It [the legislature] may provide for . . . the separation of the white 
and black convicts as far as practicable, and for religious worship for 
the convicts. 

Article 14^ General Provisions, Section 263 

The marriage of a white person with a Negro or mulatto, or person 
who shall have one-eighth or more Negro blood, shall be unlawful and 
void. 

Perhaps the most remarkable of the Mississippi statutes is the 
following: 

Any persons, firm or corporation who shall be guilty of printing, 
publishing, or circulating printed, t}^pewritten or written matter urging 
or presenting for public acceptance, or general information, arguments 
or suggestions in favor of social equality, or intermarriage, between 
whites and Negroes, shall be guilty of a misdemeanor and subject to a 
fine not exceeding five hundred dollars or imprisonment not exceeding 
six months or both fine and imprisonment in the discretion of the court. 

"Legislation similar to that of Mississippi," the National Associa- 
tion for the Advancement of Colored People stated in An Appeal to 
the World!, a document submitted in February 1947 to the United 
Nations, "is in force in Virginia, North Carolina, South CaroHna, 
Georgia, Alabama, Florida, Louisiana, Arkansas, Oklahoma and 
Texas. Similar but less stringent legislation is in force in Delaware, 
West Virginia, Kentucky, Tennessee, and Missouri . . . Eight north- 
ern states (Cahfornia, Colorado, Idaho, Indiana, Nebraska, Nevada, 
Oregon and Utah) forbid intermarriage . . .'* 

The Appeal continued: 

In twenty states segregation of pupils in schools is mandatory or ex- 
pressly permitted. In three states the statutes call for even separate 
schools for the deaf, dumb and blind. In six states the statutes call for 
separate schools for the bUnd . . . Florida stipulates that textbooks used 
by Negro pupils shall be stored separately. 

In fourteen states the law requires separate railroad facilities. . . . 
Separate waiting rooms are required in eight states. Separation in buses 
is required in eleven states; ten states have the same requirements affect- 
ing streetcar transportation . . . 

There are laws which require separation of the races in hospitals. In 
eleven states even mental defectives must be separated by race. . . . 

Separation is required by eleven states in penal and correctional in- 
stitutions. ... 

There are laws which require separation of the races in a multitude 
of relations— too many to be mentioned here. Several examples will 
make clear the scope of Jim Crowism imposed by law: Oklahoma re- 
quires separate telephone booths for Negroes; a Texas statute prohibits 

309 



whites and Negroes from engaging together in boxing matches; ... in 
South Carolina Negroes and whites may not work together in the same 
room in cotton textile factories, nor may they use the same doors of 
entrance and exit at the same time.* 

At the end of the war, there were 5,000,000 Negroes in the Black 
Belt of the South, most of them living in virtual serfdom or invol- 
untary servitude on great cotton plantations as sharecroppers and 
as tenant farmers. Although Negroes comprised approximately sixty 
per cent of the population of the Black Belt area, which stretched 
through twelve southern states, the overwhelming majority of them 
were deprived of the right to vote. The methods used to keep 
Negro citizens from the polls ranged from the poll-tax and other 
"legal" devices to terrorization and lynch mobs ... 

Throughout the North, too, "Black Belts" existed. 

In every major northern city, the overwhelming majority of 
Negro residents were confined in squahd, frightfully overcrowded 
ghettos— miasmic slums of crumbling hovels and rat-infested, fire- 
trap tenements. In Chicago's Black Belt the population density was 
90,000 per square mile in an area where health authorities set the 
optimum density at 35,000. In Harlem, the average number of 
residents per block was 3,781. "At a comparable rate," stated Archi- 
tectural Forum of the population density in Harlem, "the entire 
United States could be housed in half of New York City." 

Through restrictive covenants and various other "legal" and 
extra-legal means, and not infrequently through mob violence, 
Negroes were quarantined in these Black Belts almost as rigorously 
as Jews had been by the walls of the Warsaw Ghetto. Between 
1944-46 in Chicago alone, fifty-nine attacks were made on the 
homes of Negroes trying to settle in white areas— five shootmgs, 
twenty-two stonings and more than a score of arson-bombings. 
Not a single culprit was punished for these crimes . . . 

In a report pubHshed by the U.S. Office of Education, I. C. 
Brown stated regarding the living conditions in Negro ghettos in 
many parts of America: 

* The author of this particular section of the NAACP Appeal was Milton 
R. Konvitz, Associate Professor at Cornell University. 

The full tide of the NAACP document was An Appeal to the World! 
A Statement on the Denial of Human Rights to Minorities in the Case of 
Citize72s of Negro Descent in the United States and cm Appeal to the Ufiited 
Nations for Redress. 

310 



... in cities, paving, lighting, sewerage service and police protection 
often cease where the Negro section begins ... In many areas there is 
no hospital service of any kind available to Negroes, and the medical 
and nursing service is often wholly inadequate if not lacking altogether. 

In Chicago and New York City, the tuberculosis rate among 
Negroes in 1947 was approximately five times as high as among 
whites. In Newark, New Jersey, it was almost seven times as high. 

More than twice as many American Negro mothers as white 
mothers died in child-birth. Infant mortality among Negroes was 
seventy per cent higher than among whites. 

The average life expectancy of Negro Americans was ten years 
less than that of white Americans. 

"Why apologize or evade?" asked Senator Walter F. George of 
Georgia, former member of the Georgia Supreme Court, in an ar- 
ticle in Liberty magazine. "We have been very careful to obey the 
letter of the Federal Constitution— but we have been very diligent 
and astute at violating the spirit of such amendments and statutes 
as would lead the Negro to believe himself the equal of the white 
man. And we shall continue to conduct ourselves in that way!" 

2. In the Nation's Capital 

"The capital of a nation," Justice Wendell Philipps Stafford of 
the Supreme Court of the District of Columbia once declared, 
"though it may lie, as ours does, at the level of the sea, must be in 
a very true sense, a city that is set on a hill and which cannot be 
hid ... it will become a symbol— a symbol of the great Republic 
whose visible throne is here." 

With its stately white granite buildings, majestic monuments and 
spacious tree-lined boulevards, postwar Washington was seemingly 
a worthy symbol of the great traditions of the American Republic. 
But the superficial beauty and dignity of the capital of the United 
States were a deceptive facade. They concealed a noisome morass 
of racial prejudice, discrimination, Nazi-Hke segregation and the 
deliberate humiliation of human beings whose skin was not white . . . 

Within view of the White House, and in the shadow of Lincoln's 
gravely beautiful memorial, there sprawled a hideous ghetto in 
which more than a quarter of the city's inhabitants, 250,000 Negro 
Americans, were penned. In the Capital of their own land, Negro 

3" 



citizens were barred from "white" hotels, restaurants and theatres, 
denied the right to patronize the main department stores, forced 
to attend separate schools and hospitals, and compelled to stand 
while eating at downtown lunch counters . . . 

In 1947, the proprietor of a dog cemetery in Washington publicly 
announced that henceforth he would not accept for burial dogs 
belonging to Negroes. Although, he explained, he knew that dogs 
would not object to non-segregated burial, he had found that his 
white clientele were offended by such treatment of their deceased 
pets . . . 

After a visit to the capital of the United States, a native of India 
declared: "I would rather be an Untouchable in the Hindu caste 
system than a Negro in Washington." 

The booklet, Segregation in Washington— A Report of the 
National Committee on Segregation in the Nation'' s Capital* which 
was published in November 1948, included this comment: 

On occasion, the State Department has sent vigorous protests to cer- 
tain nations which attempt to restrict the movements of our representa- 
tives abroad. But Washington is the only major capital in the world 
where it is necessary to chaperone foreign guests to protect them from 
insult on account of color. 

As typical examples of the experiences of foreign colored visitors 
in Washington, the Report cited these cases: 

During the war, the Foreign Minister of an African country was in- 
vited to Washington by the State Department, which made hotel reser- 
vations in advance. He arrived late at night, however, and the hotel 
manager flatly refused to admit him. A high official of the Department 
was routed out of bed, and persuaded the hotel by telephone to admit 
the Foreign Minister— on a plea of urgent "war necessity." 

An influential Puerto Rican Senator comes to Washington frequently 
to see the Resident Commissioner who must devise ways and means to 
provide him with rooms and meals. On one visit a private family in 
Alexandria gave him shelter. On another, a Puerto Rican newspaper 
correspondent took him to his home. On a third, the Commissioner 
was not able to find private quarters and asked the Senator to sleep on 
the couch in his office. 

A devout Catholic from Panama entered a Catholic Church in Wash- 



* Among the members of the National Committee on Segregation in the 
Nation's Capital were Roger N. Baldwin, Bruce Bliven, Reverend Harry 
Emerson Fosdick, Philip Murray, Professor Louis Wirth, Bishop G. Bromley 
Oxnam, Walter White and Eleanor Roosevelt. 

312 



ington. As he knelt in prayer, a priest approached him and handed him 
a slip of paper. On the paper was the address of a Negro Catholic 
church. The priest explained that there were special churches for Negro 
Catholics and that he would be welcome there. 

Ordinarily, however, a distinction was made in Washington be- 
tween foreign visitors and native Americans with dark skins. "Most 
of the capital's stores and eating places," reported the National 
Committee on Segregation in the Nation's Capital, "are alert to the 
importance of distinguishing between American Negroes and 
foreigners of dark complexion, so as to treat the latter like white 
persons . . . Often an alien Negro will be allowed to eat sitting 
down at a lunch counter if he has a diplomatic pass, or some other 
means of proving that he is not an American Negro." 

Discrimination in the American capital was intended to be re- 
served as the special prerogative of black Americans. 

"No property in a white section," stipulated a clause in the Code 
of Ethics of the Washington Real Estate Board, published in 1948, 
"should ever be sold, rented, advertised or offered to colored 
people." 

In an article in the Washington Post headed, "Negro Housing- 
Capital Sets Record for U.S. in Unalleviated Wretchedness of 
Slums," Agnes E. Meyer described the Negro ghetto in Wash- 
ington in these words: 

In my journey through the war centers I . . . visited the worst 
possible housing. But not in the Negro slums of Detroit, not even in 
the southern cities, have I seen human beings subjected to such un- 
alleviated wretchedness as in the alleys of our own city of Washing- 
ton . . . 

Not only houses have been subdivided, but small rooms already too 
filthy for animal habitation, have been partitioned with cardboard to 
absorb more tenants. 

In Burke's Court, 14 occupants have been stowed away in a single 
room; in Ninth Street, N.W., a small house holds 19 persons, while a 
woman and three children live in the basement. 

Five or six persons to a room, occupying at times a single bed, is 
commonplace . . . 

Only thirty per cent of the residents of the District of Columbia 
were Negroes, but Negroes had seventy per cent of the slum resi- 
dents and sixty-nine per cent of the tuberculosis deaths . . . 

Front-paged on the New York Times of May 14, 1948, under the 

313 



headline, "RACE BIAS IN WASHINGTON DEPRIVES 51 
YOUNGSTERS OF TRIP TO CAPITAL," was a news item 
which read in part as follows: 

Long-cherished dreams of passing a few hours among the tokens of 
freedom and historical attractions of the nation's capital were shattered 
yesterday for fifty-one New York children by Negro segregation and 
discrimination rules as practised in Washington. All of the youngsters 
were medal winners in the safety patrol contests in the New York met- 
ropolitan area . . . 

Among the youths designated to share in the safety honors were four 
Negro children . . . When the Automobile Club sought accommodations 
for them with their white companions, the Washington hotel doors 
were closed to them. This action caused the cancellation of the junket 
yesterday. A special citation was to have been given by President 
Truman . . . 

Commenting on this incident, the New York Herald Tribune 
editorialized: "The humihation of these New York schoolboys was 
a national disgrace." * 

The most shocking fact about discrimination against Negro 
citizens in postwar Washington was that it was not only condoned 
but actually fostered by the Government itself. 

In the words of the National Committee on Segregation in the 
Nation's Capital: 

AUied against the Negro in this doubtful enterprise ... is the full 
majesty of the United States Government. . . . 

In spite of all its principles and all its professions, its executive orders 
and directives, the United States Government is systematically deny- 
ing colored citizens of the capital equal opportunity in employment, 
and is setting an example of racial discrimination to the city and nation. 

Following the war. Government departments and agencies re- 
verted once more to the pohcy of excluding Negroes from all but 

* Negro children in Washington are carefully segregated and systematically 
made to feel inferior to children whose skins are white. Separate schools are 
set aside for Negro children. Operated under the cynical, self-contradictory 
formula of "separate and equal," the Negro schools are in old, dilapidated 
buildings, one third of which were constructed before the turn of the century. 

White athletic and debating teams cannot compete with Negro teams. In 
1947 the finals of a Bill of Rights oratorical contest sponsored by the Junior 
Chamber of Commerce could not be held as contemplated in a public school 
auditorium because both white and Negro children were taking part in the 
competition. 

On public playgrounds as elsewhere, Jim Crow is rigidly enforced. Colored 
boys and girls are forbidden by the regulations of the District of Columbia 
Recreation Board to enter the playgrounds of white children. 



the lowest custodial and clerical jobs. In the State Department, 
Justice Department, the Bureau of the Budget, the Federal Trade 
Commission and the Federal Reserve Board, colored workers were 
relegated almost entirely to the most menial work. In the Census 
Bureau, the Government Printing Office, and the Bureau of En- 
graving and Printing, most Negro employees were kept in the low- 
est paid jobs and segregated in separate units . . . 

Such were the post-war anti-Negro policies practised in Wash- 
ington by the Government that the National Committee on Segre- 
gation in the Nation's Capital stated toward the conclusion of its 
Report: 

At this very moment the Federal Government is holding more citi- 
zens in bondage than any single person or agency in the country. It is 
responsible because it, and it alone, has the power to break the chains 
that bar a quarter of a million Negroes in Washington from their 
equal rights as Americans. 

Worse, the government has helped to make the chains. Its District 
courts have been used, unconstitutionally as it now appears, to force 
colored people in ghettoes. Its lending, housing and planning agencies 
have been drawn into the general undertaking. Its District Commissions, 
appointed by the President, and its various other officers, have helped 
maintain the color bar in municipal agencies, schools, hospitals, and 
recreational facilities. . . . 

When people are divided by a master-race theory, liberty and justice 
are impossible. Nowhere is this plainer than in the capital . . . 

"It must be viewed as one of the ironies of history," commented 
the Washington Evening Star one year after the defeat of the Fascist 
Powers, "that the Confederacy, which was never able to capture 
Washington during the course of that war, now holds it as a help- 
less pawn." 

3. Terror in Tennessee 

On the morning of February 25, 1946, in the little town of 
Columbia, Tennessee, James C. Stephenson, a nineteen-year-old 
Negro Navy veteran, and his mother went to the Castner & Knott 
store to fetch a radio they had left for repairs. 

Mrs. Stephenson paid the thirteen-dollar repair bill. On testing 
the radio, she found it still would not work. "Thirteen dollars, 
and the radio not playing!" she exclaimed. 

Enraged that a Negro had the temerity to speak in this fashion, 
the repairman, William Fleming, stepped menacingly from behind 

315 



the counter and ordered the Stephensons out of the shop. As they 
left, one of the shop clerks punched James Stephenson from be- 
hind. At the same time, Fleming kicked Mrs. Stephenson and 
knocked her down. 

The young Negro veteran sprang at Fleming and struck him a 
blow that sent him crashing through the display window. A grocer 
came running from a neighboring shop, crying, "Kill the black 
bastards!" As a crowd gathered, someone shouted "Let's lynch 
them!" 

Several policemen arrived on the scene. One of them raised his 
nightstick over young Stephenson's head. Mrs. Stephenson cried 
out, "Don't hit my boy!" The policeman turned and struck her 
with the club. 

The Stephensons were then arrested. 

At the City Hall, the police judge asked the prisoners, "Were you 
fighting?" 

They answered in the afiirmative. 

"Guilty," said the judge. "Fifty dollars." 

A man hurried into the City Hall. A crowd was gathering out- 
side, he told the judge, and there was talk of a lynching. 

The judge telephoned the sheriff. "You better get these people 
out of here," he said. "We can't give them any protection." 

The Stephensons were taken to the county jail by the sheriff and 
locked up . . . 

Meanwhile a local magistrate, C. Hayes Denton, had arranged 
for a warrant to be sworn out charging the Stephensons with "at- 
tempting to commit murder by use of dangerous instrument, to- 
wit, pieces of glass." Denton set bail for the Stephensons at $3,500 
each. 

That afternoon, the sheriff telephoned a Negro businessman in 
Columbia named Julius Blair. "You better make bond and get them 
out of here," the sheriff told Blair, "because they're going to be 
lynched. There's a mob miUing around." 

Quickly, Blair posted the $7,000 bond at the magistrate's office, 
drove to the county jail and picked up the Stephensons. The veteran 
and his mother were then spirited out of town. 

By sundown, a mob of about a hundred men carrying rifles, shot 
guns and pistols had congregated in Columbia's courthouse square. 
Bottles of liquor were being passed from hand to hand. Speakers 
316 



harangued the crowd, urging them to go to Mink Slide, the segre- 
gated Negro district, and "get those niggers." 

But the mob was not eager to invade the Negro community. The 
rumor had spread that Negro war veterans, armed with German 
and Japanese war trophy guns and other firearms, had been mobil- 
ized to meet the attack . . . 

In Mink Slide a group of Negro citizens, including a number of 
veterans, were going from house to house, urging their occupants 
to lock their doors and keep off the streets. The veterans had 
gathered together a handful of weapons— a few shotguns, two 
target rifles and a few pistols— which they planned to use as a last 
resort, if necessary, to defend their families and homes. 

When night came, there was scarcely a sign of life in Mink 
Slide. Except for occasional Negro patrol units, the streets in the 
Negro district were completely deserted. Doors were locked and 
shades tightly drawn. Children had been hidden in back rooms and 
garrets. The whole area was silent, blacked-out, tensely waiting . . . 

Shortly after dark, cars filled with armed white men began cruis- 
ing the outskirts of Mink SHde. Sporadic shots cracked as the oc- 
cupants of the cars fired at random into the unlighted buildings. 

A car carrying four poHcemen headed into Mink Slide. The car 
had no distinctive markings and in the darkness was mistaken for 
one of the mob's vehicles. A voice cried out, "Here they come!" 
There was a shotgun blast. Peppered with bird shot, the poHcemen 
swung their car about and drove back to the center of town . . . 

The mayor of Columbia now put through a telephone call to 
Governor McCord at Nashville and asked that armed forces of the 
State be sent immediately to Columbia. 

Before dawn, 500 state guardsmen, including a machine gun com- 
pany, had been rushed into Columbia with full military equipment. 
State Guard Brigadier General Jacob Dickinson was in command 
of the troops. In Columbia, the state troops were joined by seventy- 
five highway patrolmen under the leadership of Lynn Bomar, State 
Director of Public Safety. 

Paying no attention to the armed white mob still gathered in the 
square, General Dickinson deployed his force in a cordon around 
Mink Slide. This done, the General informed newspapermen: "The 
Negroes are surrounded." 



Promptly at five o'clock in the morning, the invasion of the 
Negro section began. 

The attack was carried out with military precision. State High- 
way police led the way, with tommie guns, automatic rifles and 
carbines blazing. Close on their heels came rows of steel-helmeted 
state guardsmen carrying rifles with fixed bayonets. Volley after 
volley crashed into houses and shops as the troops slowly advanced 
through the smoke-filled streets. 

Describing the assault, the Nashville Banner stated later that day: 

As the highway patrolmen moved into the "Mink Slide" or "Black 
Bottom" section, this morning, they blasted a number of business estab- 
lishments with machine guns and carbines . . . Plate glass windows 
were shattered, doors knocked down and all the places of business 
were virtually wrecked . . . 

"To the war veterans," commented the newspapermen, Tom 
Ketterson and Paul Page, in the Columbia Daily Herald, "the scene 
was reminiscent of American troops going through a captured town 
in Europe." 

There were, however, significant differences. between the military 
tactics of U.S. troops overseas and those of the invaders of Mink 
Silde. As Robert Minor records in his pamphlet. Lynching and 
Frame-up in Tennessee: 

, . . only the places owned by Negroes were destroyed; every white 
shop was left untouched, and in that respect it was more like a Nazi 
storm-troop raid on a Jewish quarter. 

Under the personal command of State Director of Public Safety, 
Lynn Bomar, state poUce stormed into the Negro-owned shops, 
restaurants and offices, wrecking furniture and hurling supplies and 
equipment into the street. They fired tommie gun blasts at mirrors 
and pictures, smashed cash registers and emptied them of their con- 
tents. 

Breaking down doors, the police forced their way into private 
homes and apartments. Men, women and children ahke were driven 
into the littered streets, clubbed with rifle butts, and ordered to 
stand with their hands above their heads. 

The Negro prisoners were then marched in a long procession 
through the streets of the town to the jail . . . 

At noon. Governor McCord arrived in Columbia. At a hurried, 
private conference with municipal authorities, it was agreed there 
should be no more public -talk about lynchings. The episode was to 

318 



be officially described as "an armed Negro uprising" that had 
been forestalled in the nick of time. The Governor's executive sec- 
retary, Bayard Tarpley, told newspapermen that Negroes were 
known to have been. buying weapons "all over the state." 

That afternoon the Columbia Daily Herald stated editorially: 

The Negro has not a chance of gaining supremacy over a sovereign 
people, and the sooner the better element of the Negro race realize 
this the better off the race will be . . . 

Headlines throughout America blazed the news of a "Negro 
Riot" in Columbia, Tennessee. 

Seventy Negroes were placed under arrest, most of them charged 
with attempt to commit murder. Their bail was set by Magistrate 
Denton at $5,000 each, totaling $350,000. 

The preliminary interrogation of the arrested Negroes was con- 
ducted at the packed county jail. One after another, the prisoners 
were taken from their cells, led down corridors bristling with armed 
guards and pushed into a room which ordinarily served as the 
sheriff's dining room. They were told that if they "talked" and dis- 
closed what they knew about "the plot," they would be dealt with 
leniently. Despite cajolery, threats and third degree, no prisoners 
"talked''' . . . 

On February 28 three prisoners were brought together into the 
sheriff's dining room. Their names were William Gordon, James 
Johnson and Napoleon Stewart. After a prolonged interrogation, 
during which they failed to give what police officials termed "satis- 
factory answers," the three men were taken by deputy sheriffs 
and state troopers into an adjoining office. 

Suddenly there was a burst of machine gun fire. 

With blood pouring from bullet wounds, Gordon and Johnson 
were taken to King's Daughters Hospital. They were given blood 
plasma but refused bed accommodations because the institute was, 
in the words of the Washington Post, "a white hospital." While 
being driven to Nashville, the two men died. 

Following nationwide demands for Government action, a Federal 
Grand Jury was set up to conduct an investigation of the events 
at Columbia. 

All persons selected to serve on the Federal Grand Jury were 
white. 

319 



After a two months' inquiry, the Grand Jury reported that it had 
found "no violation of civil rights," and that there was no evidence 
of any attempt at a lynching in Columbia. 

Sharp criticism by the Grand Jury was reserved for "inflam- 
matory articles" that had appeared in the "Communist press" . . . 

In reporting the findings of the Federal Grand Jury, the nation's 
press neglected to mention an extremely interesting fact about 
Judge Elmer D. Davies, who had presided at the hearings as the 
appointee of Attorney General Clark. The unmentioned fact was 
this: Judge Davies— according to a news story which had appeared 
in the New York Times on July 19, 1939— was, by his own admis- 
sion, a former member of the Ku Klux Klan. 

4. By Trigger, Lash and Noose 

On June 6, 1947, in a feature article entitled "Lynch Trial Makes 
Southern History," Life magazine saw fit to express satisfaction 
over a "forward step" in the extension of "justice" to Negroes in 
the South. 

In Greenville, South Carolina, a white taxi driver had been 
stabbed to death the previous February. County authorities had 
promptly arrested a Negro youth, Willie Earle. "Early next morn- 
ing," recorded Life, "a lynch mob driving cabs took Earle from 
the jail at nearby Pickens, beat him, kicked him, pounded him with 
the butt of a shotgun, then stabbed him five times, gouged a huge 
piece of flesh from his thigh and finally blew off most of his head 
with three blasts from the shotgun." 

Twenty-six confessed participants in the lynching were placed 
on trial. The court proceedings, according to Lije^ "frequently took 
on the informal aspect of a family picnic." The jury's verdict was 
"not guilty." 

Following the acquittal of the defendants, R. C. Hunt, the man 
who had blown out Earle's brains with a shotgun, gave a party, an- 
nouncing: "Justice has been done on both sides." Duran Keenan, 
another of the lynchers, told the press: "It's the best thing that ever 
happened to this country." 

Summing up its views on the case, Life praised the trial as "the 
first time the entire ugly story of a brutal lynching was put in the 
legal records." The magazine opined: 

320 



For nine days they were tried, in all seriousness . . . The trial did 
not end in a way to satisfy those who believe that democracy means 
what it says, regardless of the color of a man's skin . . . But history 
had been made nonetheless ... It was clear that the South could no 
longer be considered ioo% safe for a lynch mob, or at least that lynch- 
ing could not be kept ioo% secret. 

On August 13, 1947, two months after the appearance of the 
Life article, the New York Times carried an editorial headed, 
"Georgia Moves Forward." The editorial concerned a case involv- 
ing the massacre of eight Negro convicts at the Anguilla Prison near 
Brunswick, Georgia. 

On July II, 1947, a group of Negro prisoners from the Anguilla 
camp had been ordered by prison guards to work in a swamp in- 
fested with rattlesnakes. When some of the convicts hesitated and 
asked for boots to protect themselves. Warden H. G. Worthy 
furiously ordered them back to camp. At the prison stockade. 
Warden Worthy told five prisoners he accused of being "ring- 
leaders" to step forward. When the prisoners failed to obey his 
command. Worthy shouted to the prison guards, "Let 'em have it." 
The guards and the warden opened fire. 

Five convicts were killed instantly. Three more were mortally 
wounded. 

At county grand jury hearings, Warden Worthy claimed the 
Negroes had been attempting a "jail break." The county grand jury 
ruled that the warden and the guards were "justified in their action" 
and were "acting in order to maintain order." The jury statement 
added: "This would not have happened if the men were in chains 
and stripes." 

Protests from the National Association for the Advancement of 
Colored People and other liberal organizations resulted in the Fed- 
eral indictment of the warden and four guards for violating Federal 
civil rights statutes. At the Federal trial, the defense counsel con- 
tended the shooting had been necessary to crush a "Communist- 
inspired plot" to take over the prison camp. After dehberating eight 
minutes, the all-white federal jury acquitted the defendants. 

The New York Times commented in its "Georgia Moves For- 
ward" editorial: 

The one encouraging aspect of still recurrent outbreaks of race op- 
pression in the deep South is that they are at last, in one way or another, 
producing a healthy reaction toward amelioration ... In Georgia, as 



in the rest of the South, the area of enlightenment perceptibly spreads 
and "freedom slowly broadens down from precedent to precedent." 

On March 14, 1947, Secretary of State George C. Marshall told 
the Four Power Council of Foreign Ministers meeting in Moscow: 

I realize that the word ^^democracy" is given many interpretations. 
To the America?! Government and citizens it has a basic ?neaning. We 
Jpelieve that human beings have certain iiialienable rights . . . 

They include the right of every individual to develop his ??iind and 
his soul in the ways of his own choice, free of fear and coercion . . . 
To us a society is not free if law-abiding citizens live in fear of being 
denied the right to work or deprived of life, liberty and the pursuit of 
happiness. 

During the year in which Secretary Marshall made this statement 
scarcely a day passed in the United States without frightful viola- 
tions of the "inalienable rights" of American Negroes. The follow- 
ing are a few of the countless episodes:* 

Atlanta, Georgia, February: Two weeks after a band of white men 
had warned a Negro minister, Reverend A. C. Epps, to move out of a 
white neighborhood, the minister's house was dynamited. The band 
was seen joking with the police after leaving the Epps home. 

SMirm^iELD, North Carolina, April: Fletcher Martin, a Negro orderly 
at the Provident hospital in Baltimore, was traveling by train to his 
home in North Carolina. When he objected to the order to move into 
a Jim Crow railway coach, he was shot and killed by the train con- 
ductor. The conductor claimed he shot Martin in "self-defense." 



* It is impossible to estimate accurately the number of crimes and atrocities 
committed against the Negro people. Only a few of the cases get into print, 
and then, almost only when progressive groups fighting for the rights of 
Negroes have taken an active interest. Innumerable brutalities are never 
recorded. 

In postwar America, moreover, a method of lynching Negroes was being 
practised which prevented many killings from being known. In the words of 
a Petition prepared by the historian, Dr. Herbert Aptheker, and submitted by 
the National Negro Congress in June 1946 to the Economic and Social Council 
of the United Nations: "Of greater importance today is the device of 'dry 
lynching', the secret, unpublicized mutilation or destruction of an undesirable 
Negro by a small group of individuals (frequendy, it is believed, officers of 
the law). From the nature of this device precise details and figures are not 
available, but it is significant that a study, in 1940, sponsored by four United 
States Congressmen, including Senators Wagner and Capper, by a 'native 
white southerner who must remain anonymous', states, 'that countless Negroes 
are lynched yearly, but their disappearance is shrouded in mystery, for they 
are dispatched quiedy and without general knowledge.' Other recent works 
have offered substantiating remarks, and this is certainly a type of barbarism 
that should be thoroughly investigated and absolutely extirpated." 



Rocky Mount, North Carolina, May: The body of Willie Pittman, 
a Negro taxi driver, was found horribly mutilated on the side of a 
country road near Rocky Mount. His head had been smashed in and 
his legs and arms cut off. 

Sardis, Georgia, May: Joe Nathan Roberts, a twenty-three year old 
Negro veteran studying at Temple University under the GI Bill of 
Rights was shot to death when he failed to say "sir" to a white man. 
The killer was never brought to trial. 

Hamilton, Georgia, May: Henry Gilbert, a Negro farmer, was killed 
in Harris County jail by police officers. Gilbert's head was smashed in 
and his ribs crushed. 

Lettworth, Louisiana, July: A game warden got in an argument with 
William Brown, 83 year old Negro, who was hunting squirrels in 
the woods. The warden took Brown to the edge of the forest and shot 
him in the back of the head. The warden then walked to a nearby white 
sharecropper and told him, "I just shot a nigger; let his folks know." 
The coroner's report stated: "The killing was justified because the 
warden shot in self-defense." 

Calhoun, Louisiana, July: When Wesley Thomas, a Negro wood- 
cutter, quit his job with a white farmer, the latter offered $50 for the 
killing of Thomas, claiming Thomas had threatened his life. Another 
white farmer found Thomas and shot him, explaining, "When he tried 
to run into a house, I just let him have it." The coroner's jury termed 
the shooting "justifiable homicide," asserting that the killer had acted 
in "self-defense." 

Prentiss, Mississippi, August: After a mob had given the sheriff eight 
hours to "get a confession" from Versie Johnson, a Negro sawmill 
worker held on a charge of rape, the sheriff and two deputies shot the 
prisoner. The sheriff declared a coroner's inquest "wasn't necessary" 
since the officers had shot Johnson when he reached for one of the 
officer's guns. 

New York, New York, August: Lloyd Curtis Jones, a disabled Negro 
veteran and music student working for a Guggenheim Fellowship was 
singing with a small group at the Columbus Circle entrance to Central 
Park. Patrolman Francis LeMaire ordered Jones to move on, jabbing 
Jones with his nightstick. When Jones objected, LeMaire struck the 
Negro on the head with such force that his stick broke. Jones lifted his 
arms to protect himself. LeMaire then fired three bullets into Jones' 
stomach, seriously but not mortally wounding him. After a cursory 
investigation, LeMaire was exonerated. 

Rochester, New York, November: When Roland T. Price, a Negro 
war veteran insisted he had been short-changed in a restaurant, the 
management summoned the police. After an altercation, the officers 
shot and killed Price. They claimed Price had attempted to draw a 

323 



revolver. Later it was revealed that Price had been unarmed. The police 
were exonerated by a coroner's jury. 

Louisville, Kentucky, November: Two policemen entered a confec- 
tionery store and accused George E. Kelly, a Negro, of creating a dis- 
turbance. Kelly tried to knock a gun from one officer's hand. The 
policeman beat Kelly unconscious and riddled his body with bullets. 
The officer was exonerated. 

On January 7, 1948, President Harry S. Truman declared in his 
State of the Union address to Congress: 

The basic source of our strength is spiritual. For we are a people with 
a faith. We believe in the dignity of man . . . 

We have a profound devotion to the welfare and rights of the indi- 
vidual as a human being. 

Our first goal is to secure fully the essential hu7nan rights of our 
citizens . . . 

Any denial of human rights is a denial of the basic beliefs of democ- 
racy and of our regard for the worth of each individual. 

That same year— while anti-lynch, anti-poll tax and Fair Employ- 
ment Practices legislation remained deadlocked in Congress— these 
were some of the innumerable violations of the human rights of 
Negro Americans: 

Macon, Georgia, February: After a one-day trial, an all-white jury 
found Mrs. Rosa Lee Ingram, a Negro woman, and her two sons, 17 
and 14 years old, guilty of murder in the first degree. The "crime" 
for which they were then sentenced to death had occurred three 
months earlier when the two Ingram boys had defended their mother 
against the assault of a white farmer. In the struggle, one of the boys 
had struck the farmer a fatal blow on the head. The execution of Mrs. 
Ingram and her sons was stayed, and their sentence was commuted to 
life imprisonment, following widespread protests. 

Trenton, New Jersey, February: After the murder of a white store- 
keeper, Trenton police rounded up dozens of Negroes, and eventually 
placed six Negro youths under arrest. Later, the police produced con- 
fessions signed by five of the prisoners. At the trial, however, all the 
accused offered satisfactory alibis; the chief defense witness was unable 
to identify the suspects; and three of the accused testified they had been 
doped by the police. The jury returned a verdict of guilty, and all six 
men were sentenced to be electrocuted. Defense counsel headed by 
former U. S. Assistant Attorney General O. John Rogge appealed the 
verdict. 

MEMPms, Tennessee, May: A Negro, Eli Blaine, complained at police 
headquarters that money had been taken from him during a police 

324 



investigation of a disturbance. Officers at the police station savagely 
beat Blaine and blinded him in one eye. 

Detroit, Michigan, Jzme: After brutally manhandling Leon Moseley, a 
15 year old Negro boy, two policemen shot him to death. The police 
report of the case stated that Moseley's car did not have lights. 

August, Georgia, July: A Negro prisoner, Ike Crawford died of 
wounds from a beating inflicted by Rochmond County stockade guards. 
One of his eyes had been gouged out and his skull fractured. 

Calhoun Falls, South Carolina, August: After Rev. Archie Ware, a 
Negro minister, had defied warnings not to vote in the primary elections, 
he was set upon, clubbed, stabbed and left for dead, while two police- 
men stood by and watched. 

MontgOxMery County, Georgia, SepteiJiber: D. C. Carter, president of 
the county branch of the NAACP disregarded threats and voted in 
the state primary elections. He was beaten with iron bars by a gang of 
white men, and was ordered at the point of a gun to cease transporting 
neighbors to the polls. 

Lyons, Georgia, Novejitber: Robert Mallard, a Negro farmer was shot 
on a lonely road by a group of white men, as he returned with his wife 
and child and two other Negroes from church services. The testimony 
of Mrs. Mallard and the other Negroes who witnessed the shooting was 
disregarded by local authorities. 

On September 15, 1949, on being nominated as the Republican 
candidate for U.S. Senator from New York state, John Foster 
Dulles declared: 

America is what it is because our people have always believed that 
the most important, the most worthwhile thing in the world is the 
human being— to develop hint in soul and mind and to establish for him 
a friendly prospering enviromnent, which stimulates him to think fine 
thoughts and to accomplish fine things. 

Here is a list of some headlines appearing during 1949 in the 
nation's three leading Negro newspapers— the Afro- American, the 

Pittsburgh Courier, and the Chicago Defender: 

50 OFFICERS WHO BEAT MAN ALMOST TO DEATH FREED 
JURY TAKES FIVE MINUTES TO RENDER VERDICT 

(Miami, Florida, January 22) 

2 RACE KILLINGS GIVE DIXIE NEW BLACK EYE 

(Bessemer, Alabama and Fort Myers, Florida, February 12) 

FLORIDIAN FLOGGED BY WHITE MOB 

TERROR LEAVES VICTIM'S MIND COMPLETE BLANK 

(Orlando, Florida, March 19) 

325 



ALA. JUDGE LINKS SHERIFF TO BEATING 
TELLS OFFICERS HELPED FLOG 7 MEN 

(Chattanooga, Tennessee, April 30) 

JUDGE SCORES GEORGIA SHERIFF 

WHO GAVE UP PRISONERS TO KLANSMEN 

(Trenton, Georgia, May 21) 

GRAND JURY FREES 2 ALA. POLICEMEN 
WHO ATTACKED WOMAN 

(Montgomery, Alabama, May 28) 

SLAVERY IN JERSEY 

ASBURY PARK PEONAGE COMPLAINT PROBED 

(Asbury Park. New Jersey, June 18) 

LYNCHED FOR HOGGING ROAD 

(Houston, Mississippi, July 16) 

S. C. WHITE MAN HELD IN MURDER OF BOY, 10 
WHO CURSED HIM 

(Spartansburg, South Carolina, July 19) 

WHITE MURDERER OF VET SET FREE 

(Irwinton, Georgia, July 23) 

HOME DYNAMITED IN CHATANOOGA 

(Chatanooga, Tennessee, July 30) 

JAILER FACES SECOND TRIAL FOR PEONAGE 

(Dallas, Texas, July 30) 

MOB BESIEGES NEW OWNERS . » . 
2,000 IN GROUP 

(Chicago, Illinois, August 6) 

WHITE SLAYS ANOTHER IN 1948 LYNCH TOWN 

(Lyons, Georgia, August 2i) 

140 MADE SLAVES ON MISS. FARM 

(Jackson, Mississippi, September 3) 

FIVE LYNCH WELL-TO-DO GEORGIA FARMER 

(Bainbridge, Georgia, September 10) 

FIERY CROSS BURNED IN CAPITAL OF NATION 

(Washington, D. C. September 12) 

But the wholesale terror of the postwar period failed to cow the 
Negro people of America. 

On every side there was mounting evidence of the resolute strug- 
gle of Negro citizens not only to maintain but to extend their hard- 
326 



won gains of the New Deal era. Uniting with other progressive 
Americans, they conducted one campaign after another in com- 
munities throughout the land to eliminate housing restrictions, 
break down discrimination in employment, halt anti-Negro violence 
and eradicate other manifestations of racial oppression and Jim 
Crow. 

Epitomizing the epic militant spirit of the Negro people was the 
phenomenal increase in the votes they cast in the South. In the 
jface of KKK threats, police brutality, and myriad legal and extra- 
legal obstacles, the number of Negro voters in the South rose 
from 211,000 in 1940 to more than one million in 1948. 

The Negro people in the United States were unshakably deter- 
mined to achieve once and for all, no matter what the opposition, 
equal rights as human beings and first class citizenship as Americans. 



327 



Chapter xvir 

THE RED SPECTRE 



In their systematic destruction of all opposing groups, 
Hitler and Mussolini had the communists first on their list. 
Among the early opponents of fascism, the communists were 
in the forefront. 

From the U.S. Army orientation bulle- 
tin, Army Talk, March 194$ 

Anyone who stands by the interests of all the people is 
labeled "red," so that the term has become a badge of honor, 
certainly, to those who believe in the dignity and equality 
of human beings. 

Brigadier General Evans F, Carlson, 
May 7, ip4j 

There ought to be an open season on Communists and all 
other activities of this kind. In fact, there ought to be a 
bounty for the pelts of such vicious animals. 

From the January 20, 1949, issue of the 
textile trade jourjial, American Woolen 
and Cotton Reporter 



I. Theme and Variations 

In the quiet little town of Hobe Sound, Florida, toward the end 
of March 1949, there occurred an extraordinary event of interna- 
tional significance. Late one night, immediately after a fire siren 
had sounded, a disheveled man clad in pajamas rushed from a house 
and ran down the street wildly screaming, "The Red Army has 
landed!" The man was the United States Secretary of Defense, 
James V. Forrestal. 

The incident w^as carefully hushed up.* 

*The details of the incident first became known to the public when the 
journalist Drew Pearson revealed them on his radio broadcast of April 10, 1949. 

328 



Forrestal was flown by special plane from Hobe Sound to the 
Naval Hospital at Bethesda, Maryland. There he was placed under 
the care of psychiatrists and watched day and night by a hospital 
corpsman. Navy physicians announced to the press that Forrestal 
was suffering from "occupational fatigue . . . the result of exces- 
sive work during the war and the postwar period." 

At two o'clock on the morning of May 22, Forrestal slipped 
unnoticed from his de luxe suite on the sixteenth floor of the Naval 
Hospital, crossed the corridor, unhooked a window screen, stepped 
out of the window and plunged to his death. 

The founders of the First International, Karl Marx and Friedrich 
Engels, had written in 1848 in the opening sentence of their Com- 
viumst Manifesto: "A spectre is haunting Europe— the spectre of 
Communism." 

A century later, the spectre of Communism was haunting the 
United States of America. 

The suicide of James V. Forrestal epitomized the anti-Red hys- 
teria which gripped the land like some contagious psychosis at the 
time of his death. In no other country in the postwar world was 
the public mind so tormented by dread apparitions of the Com- 
munist Menace. Meek as well as mighty were plagued by the mass 
phobia. 

Unlike most epidemics, this one had been deliberately man- 
made. 

At the war's end, it was apparent that manufactured threats of 
a new war and recurrent spy scares were in themselves not enough 
to convince the American people their country was menaced by 
Soviet armed aggression from without and by a Moscow-inspired 
Communist uprising from within. The vivid recollection of the 
American-Soviet fighting alliance and Russia's vast contribution to 
victory had first to be erased. In their place had to be conjured 
up fearful images of Soviet Russia as a ruthless tyranny scheming 
world conquest by treachery and war, and of the American Com- 
munist Party as an organization of Kremlin-directed spies and 
saboteurs plotting the overthrow of the United States Government. 

This metamorphosis was effected by a prodigious tour de force 
of propaganda. 

Every conceivable promotional device and propaganda technique, 
every available medium of communication, state and federal agen- 

329 



cies, educational institutions, business associations, church groups, 
super-patriotic societies, fraternal bodies and veterans organizations 
—all were galvanized into an intense and incessant anti-Communist 
campaign which permeated every phase of the nation's life.* 

* It would literally take volumes to catalogue the myriad items of anti- 
Communist propaganda that deluged the United States in the postwar years. 

Scarcely a day elapsed without some anti-Communist or anti-Soviet docu- 
ment emanating from the Government Printing Office in Washington, D.C. 
The House Committee on Un-American Activities published one report after 
another dealing with the Red Menace. The titles of one series issued by the 
Committee were as follows: 

100 Things You Should Know About Communism in the U.S.A. 
loo Things You Should Know About Communism in Religion 
ICG Things You Should Know About Communism in Education 
loo Things You Should Know About Communism in Labor 
100 Things You Should Know About Communism in Government 

Congress issued a stream of official reports such as: Soviet Espionage Within 
the U.S. Government; One Hundred Years of Communisvi; Communism in 
the Near East; Comrminism in China; $00 Leading Coimmmists; and Co?n- 
munism in Action— A Documented Study and Analysis of Communism in 
Action in the Soviet Union. 

From the Federal Bureau of Investigation and other branches of the Justice 
Department came an unceasing barrage of anti-Communist pronouncements, 
reports, press releases and magazine and newspaper articles, prepared under the 
expert supervision of Attorney General Tom Clark and FBI chief J. Edgar 
Hoover. 

Numerous business organizations published booklets and sponsored news- 
paper advertisements and radio programs dealing with the "Communist men- 
ace." Among the brochures on this subject issued by the Chamber of Com- 
merce were: Communism in Government, Communism in the Labor Move- 
ment, Co7nmunist Infiltration in the United States, and Cormnunity Action for 
Anti-Communisvi. 

Philosophers and psychologists prepared studies dealing with the "emotional 
motivations" of Communists and the "inferiority" and "power drives" of citi- 
zens of Soviet Russia. Among the more discussed of these studies was a thesis 
entitled "Some Aspects of the Psychology of the People of Great Russia," 
which was written by anthropologist Geoffrey Gorer under the auspices of 
the Columbia University project, Research in Contemporary Cultures. In this 
thesis, Gorer advanced the theory that the Russian "avalanche complex"— a 
tendency to act "with intense destructive rage"— orginated from the manner 
in which Russian mothers "cruelly swaddled" their infants in "tight wrappings 
—like a log of wood for the fireplace." 

Among religious groups the anti-Communist crusade was spearheaded by 
the Roman Catholic Church, with Francis Cardinal Spellman, Archbishop of 
New York, acting as its chief spokesman. The Catholic Information Society 
issued dozens of pamphlets on Communism, with titles like these: Co7n7minisin 
Means Slavery, Comiminism and Fascism: Tivo of a Kind, Justice by Assas- 
sination and The Enemy i?i Our Schools. On the radio, from the pulpit and at 
public meetings, priests excoriated Communists and the Soviet Union in in- 
numerable sermons and speeches. 

Out of Hollywood came such anti-Communist films as : "I Married a Com- 

330 



"Communism in America today," stated Newsweek magazine on 
June 2, 1947, "is under the heaviest fire it has ever experienced. 
. . . Compared with the hysterical anti-Bolshevik drive which fol- 
lowed the first world war, the present movement is a far more 
realistic and intelligent effort to combat Communism. The main 



munist," "The Red Menace," "The Conspirator," "Guilty of Treason" and 
"The Red Danube." Radio networks featured programs dealing with "Soviet 
spies" and "Communist intrigue." Children's comic books introduced Russian 
and Communist villains. 

Anti-Communist and anti-Soviet literature glutted the bookstores. There 
were books by diplomats, politicians and military men, "refugees" from behind 
the "Iron Curtain" and deserters from the Red Army, Communist renegades, 
anti-Soviet "liberals," members of the Trotskyite, Socialist and Social Demo- 
cratic Parties and other professional anti-Soviet and anti-Communist propa- 
gandists. These were some of them: 
One Who Survived by Alexander Barmine; 7 Chose Freedom by Victor 
Kravchenko; The Great Globe Itself by William C. Bullitt; The Red Plot- 
ters by ex-Congressman Hamilton Fish; The Soviet Spies by Richard Hirsch; 
American Communism by James Oneal and G. A. Werner; This Is My 
Story by Louis Budenz; The Struggle Behind the Iron Curtain by Ferenc 
Nagy; Land of Milk and Honey by W. L. Wliite; The God That Failed, 
edited by Richard Grossman; Great Retreat by N. S. Timashev; Comrnunism 
and the Conscience of the West by Fulton J. Sheean; Last Chance in China 
by Freda Utley; False Christ of Covmiunism and the Social Gospel by R. B. 
White; Why They Behave Like Russians by John Fischer; Stalin and Ger- 
Tfian CoTrmmnism by Ruth Fischer; A?nerican Capitalism vs. Russian Com- 
iniinism by C. A. Peters; Russia's Europe by H. A. Lehrman; Two Worlds, 
USA-USSR by S. Nenoff; Pll Never Go Back by M. Koriakov; Why I 
Escaped by Peter Pirogov; Iron Curtain by Igor Gouzenko; Communist 
Trade Union Trickery Exposed by K. Baarslag; Cotmnunism by J. F. 
Cronin; Forced Labor in Soviet Russia by D. J. Dallin and B. I. Nicolaevskii. 
"Russians are Colossal Liars, Swindlers!" read the headline to a full-page 
"Nevo York Herald-Tribune advertisement of a serial by General Frank How- 
ley entitled My 4-Year War With The Reds, appearing in Collier's maga- 
zine as "his own story of Soviet arrogance, deceit and gangsterism, murder 
and rape." Another serial in the same magazine was promoted with full-page 
advertisements headed: "How Moscow Wrecked an American Home." 

These were a few of the other countless anti-Communist and anti-Soviet arti- 
cles appearing in American periodicals during 1947- 1948: 

"How Communists Get That Way" (Catholic World, February 1947); 
"How the Russians Spied on their Allies" (Saturday Evening Post, January 
25, 1947); "Turn the Light on Communism" (Collier's, February 8, 1947): 
"Labor and the Communists" (Current History, March 1947); "Trained to 
Raise Hell in America: International Lenin School in Moscow" (Nation's 
Business, April 1947); "Let's Make It a Professional Red Hunt'* (Business 
Week, March 22, 1947); "Commie Citizens?" (Newsweek, April 14, 1947); 
"Communists Penetrate Wall Street" (Conmiercial and Financial Chronicle, 
November 6, 1947); "Communist Manhunt (Conmionweal, April 4, 1947); 
"Why I Broke With the Communists" (Harper's, May 1947); "Iron Cur- 
tains for Czechoslovakia" (Readers Digest, May 1948) ; "Is America Immune 



gimmick: the possibility that the pubHc— as it did after the last 
war— may weary of the anti-Communist fight . . ." 

The public was not permitted to weary of the crusade. 

While the cacophony of anti-Communist propaganda mounted 
from crescendo to crescendo, Government agencies took drastic 
steps to dramatize the "menace of Communism" to the nation. The 
Loyalty Program was initiated. Congressmen called for barring the 
Communist Party from the ballot. In June 1947, Carl Marzani, a 
former member of the Office of Strategic Services, was sentenced 
to one to three years imprisonment for supposedly concealing his 
membership in the Communist Party in 1 940-1 941. In January 1948 
Representative William J. Crow of Pennsylvania sponsored a bill 
to deprive Communist veterans of benefits under the G.I. Bill of 
Rights. The following May the Mundt-Nixon Bill, "An Act to 
Protect the United States Against Un-American and Subversive 
Activities," was drafted with the avowed aim of outlawing the 
Communist Party.* 

The campaign reached a climax in 1949 with the trial of twelve 
members of the National Committee of the Communist Party. 

2. The Trial of the Twelve 

On July 20, 1948, a Federal Grand Jury indicted twelve members 
of the National Committee of the Communist Party of the United 
States on charges of conspiracy "to teach and advocate the over- 
throw and destruction of the Government of the United States by 
force and violence." 

The Grand Jury, which had been investigating Communist activi- 
ties in America for sixteen months, did not charge the Communist 
Party with the commission of any overt subversive acts. The indict- 
ment accused the Communist leaders of plotting to subvert the 
Government by: i) organizing a poUtical party dedicated to the 
principles of Marxism-Leninism; 2) arranging to "pubhsh and cir- 
culate . . . books, articles, magazines, and newspapers advocating 

to the Communist Plague?" {Saturday Evening Tost, April 24, 1948); "Reds 
Are After Your Child" {American Magazine, July 1948); "How Commu- 
nists Take Over" {United States News, March 12, 1948), "The Nature of 
Communism" {Catholic World, August 1948); "Capture of the Innocents" 
{Collier's, November 27, 1948); "Destruction of Science in the USSR 
{Saturday Evening Post, December 4, 1948). 

* The Mundt-Nixon Bill failed to pass after liberal and anti-tasclst forces 
organized a nation-wide drive to effect its defeat. The bill, with minor modi- 
fications, was re-introduced in both Houses of Congress in 1950. 



the principles of Marxism-Leninism"; and 3) establishing "schools 
and classes for the study of the principles of Marxism-Leninism, in 
which would be taught and advocated the duty and necessity of 
overthrowing and destroying the Government of the United States 
by force and violence." 

The indictment of the Communist leaders was drawn up under 
the provisions of the Alien Registration Act of 1940, commonly 
known as the Smith Act. According to the noted authority on con- 
stitutional law, Professor Zechariah Chafee, Jr. of the Harvard Law 
School, the Smith Act contained "the most drastic restrictions on 
freedom of speech ever enacted in the United States during peace 
. . . the first Federal peacetime restrictions on speaking and writing 
by American citizens since the ill-fated Sedition Act of 1798." 

The twelve Communist leaders named in the Federal indictment 
were: 

Williajn Z. Foster, National Chairman: former trade union leader, 
who had headed the AFL steel drive and the great steel strike of 
1918-1919 * 

Eugene Dennis, General Secretary: former organizer among agricul- 
tural workers on the West Coast 

Benjamin Davis: sole Negro member of the New York City Council, 
and former attorney in Scottsboro case 

Henry Winston, National Organization Secretary: World War II 
veteran and former Young Communist League national secretary 

Robert Thompson, New York Co?mnunist Party Chairinan: former 
AFL organizer, ex-commander of Canadian Battalion of Interna- 
tional Brigade in Spain and winner of Distinguished Service Cross 
during World War II 

John Gates, Editor of the Daily Worker: former organizer in the 
steel industry, ex-lieutenant colonel in International Brigade in 
Spain and paratrooper in U. S. Army during World War II 

Irvi?ig Potash: vice-president of the International Fur and Leather 
Workers 

Jack Stachel, Educational Director: former capmaker and organizer 
of unemployed 

Gilbert Green, Illinois Communist Party Chairman: former machinist 
and ex-national president of the Young Communist League 

Gus Hall, Ohio Communist Party Chairman: World War II veteran 
and former lumberjack and steel organizer 

John Williamson, Labor Secretary: former shipyard worker. 

Carl Winter, Michigan Co?n?nunist Party Chairman: former organizer 
of unemployed 

* On January 18, 1949, the case of William Z. Foster was severed from the 
other cases, due to the serious illness of the Communist Party national chair- 
man. 

333 



The indictment of these men was an act of momentous import to 
the American people. It represented far more than an indictment of 
twelve Communist leaders. In the words of a public statement issued 
by Chief Justice James H. Wolfe of Utah, Arthur Garfield Hays of 
the American Civil Liberties Union, ex-Dean Charles H. Houston of 
the Howard University Law School and other distinguished Amer- 
icans: 

The Communist Party is on trial only so far as free speech itself is 
on trial, and the entire proceedings represents a total distortion of 
government function, as conceived and limited in the United States for 
159 years . . . 

The indictments in these cases allege no overt act whatever, except 
"teaching and advocating" the principles of "Marxism-Leninism" . . . 

If such advocacy is declared a crime, political change in a democracy 
may become impossible. 

Such a decision would, in fact, outlaw the Communist Party and 
other left wing groups in the United States, in a manner hardly to be 
distinguished from the outlawing of the Commimist Party by Hitler, 
Mussolini and Franco . . . 

The trial of the Communist leaders opened on January 17, 1949, 
in Room no of the Federal Court House in Foley Square in New 
York City. 

Presiding was Judge Harold R. Medina, an affluent former cor- 
poration lawyer whose sizable holdings in New York real estate 
had included a number of tenement houses in slum areas. Suave and 
dapper, sporting a neatly groomed mustache and looking much 
younger than his sixty years. Judge Medina had been recently 
appointed to the Federal bench by President Truman.* 

*An article entitied "Rigors of Communist Trial Sentence Medina to Soli- 
tary Life," which appeared in the New York World-Telegra??i on September 
6, 1949, gave this description of Judge Medina's luxurious country home, at 
Apaucuck Point, Long Island: 

"The judge's special pride is his own handsomely-appointed air-conditioned 
library, built several hundred feet from the house with a sunken garden be- 
tween. It has two studies . . . 

"There's also a billiard room, for which Mrs. Medina found green curtains 
to match. 'The billiard room,' she commented, 'is what the judge really built 
the place for.' " 

A pastime which Medina preferred even to billiards was yachting, and the 
judge owned a 54-foot motor yacht. 

In the data supplied by Harold Medina for inclusion in Who's Who In 
America^ he recorded as one of his more important achievements that he had 
been "Counsel for Herbert Singer, only defendant acquitted in criminal prose- 
cution of officers of Bank of U.S." 

An interesting sidelight to Medina's career as a jurist was the fact that in 

334 



The atmosphere in which the trial began was unparalleled in the 
annals of American jurisprudence. The metropolitan press on the 
day of the opening session blazed with banner headlines proclaim- 
ing the arraignment of the "Red Chiefs" on charges of plotting to 
"overthrow the U.S. Government." An army of mounted police, 
patrolmen, detectives and Federal agents ringed the Court House, 
as though anticipating an armed insurrection. The Nenju York Times 
reporter counted "no less than 45 detectives, 40 traffic policemen, 
38 superior officers, 11 mounted patrolmen . . . and 260 foot pa- 
trolmen—the largest detail for a court case in police history." 

The defense attorneys forcefully objected to the extraordinary 
police guard. "An armed mob operating in uniform under authority 
of the law is here to intimidate us," defense counsel George 
Crockett told Judge Medina. 

"I have found there is no intimidation or armed guard," the 
judge replied. "In fact, I was grateful for their assistance in getting 
through the crowd to lunch . . ." 

In the opening stages of the trial, the prosecution presented thir- 
teen witnesses. With the exception of two regular FBI agents, the 
Government's witnesses were renegade Communists or FBI spies 
within the Communist Party. These were some of them: 

Louis F. Budenz: a former managing editor of the Daily Worker 
who quit his post in October, 1945, joined the Catholic Church, wrote 
a lurid Red-baiting book entitled This Is My Story and appeared as an 
"expert witness" on Communism before the Un-American Activities 
Committee and in various Federal deportation cases. During one de- 
portation hearing in September 1947, Budenz refused to reply to twenty- 
three questions put to him by defense counsel, on the grounds that his 
answers might make him "liable to criminal prosecution and conviction." 

WilliaTn O. Noivell: a renegade Communist who had been accused 
by auto workers of being a Ford labor spy employed by Harry Bennett 
in the Ford Service Department. On leaving his job at the Ford Motor 
Company, Nowell acted as confidential adviser on "race relations" for 
the notorious fascist, Gerald L. K. Smith, ex-Silver Shirter No. 3223. 
At the war's end, Nowell became an FBI informer, appearing as a 
Government witness in a number of cases involving Communists and 
left-wing trade unions. Shortly before the trial of the twelve Com- 

the fall of 1942 he had served as an appointed defense counsel for Anthony 
Cramer, an accomplice of one of the eight Nazi saboteurs who had been 
landed by a German submarine earlier in the year. Cramer was originally 
sentenced to forty-five years imprisonment. On appeal, Medina managed to 
have this sentence reduced to twelve years. 

335 



munists, Nowell was given a paid job with the Immigration Bureau of 
the Justice Department. 

Charles W. Nicodeimis: a former factory worker who was expelled 
from the Communist Party in 1946 for anti-Negro agitation. Arrested 
and indicted in Pittsburgh in the spring of 1948 on charges of carrying 
concealed weapons "with intent unlawfully to do injury" to unnamed 
persons, Nicodemus pleaded guilty. Subsequently, Nicodemus was per- 
mitted to withdraw this plea, and the indictment against him was 
quashed, at approximately the same time he became an informer for the 
FBI. 

William Cunrmings: a former labor spy and FBI informer within 
the Communist Party. Among other activities as a "Communist," 
Cummings recruited three of his own relatives into the Party and then 
turned their names over to the FBI. 

John Victor Blanc: a stoolpigeon within the Communist Party who 
recruited workers into the Party, paid their dues himself, and then 
denounced them to the FBI. Included among the names turned over by 
Blanc to the FBI was that of his own brother-in-law, who had actually 
never joined the Communist Party but whose name had been signed 
to a Communist application form by Blanc. 

"These witnesses," declared U.S. Prosecuting Attorney John 
McGohey, "that testified for the Government, possessing as they 
do, each and every one of them, a deep sense of loyalty to our 
country, performed a task at tremendous personal sacrifice, which 
should rank high in the annals of patriotism. The job they did under 
the direction of the Federal Bureau of Investigation was, in my 
opinion, magnificent." 

A conflicting opinion was expressed by Circuit Judge Nerval 
Harris of Indiana. Said Judge Harris: 

The Communist trial is a farce . . . and the whole indictment should 
be thrown out. The prosecution's case is based on vile evidence of 
stoolpigeons and informers. That kind of evidence I would not permit 
in my court. I detest stoolpigeons and informers. So do the American 
people. 

Concurring with Judge Harris, Professor Zechariah Chafee, Jr. 
observed: 

. . . the government evidence . . . reveals that at least three of the 
undercover agents of the United States were actually engaged in per- 
suading men to become Communists and take part in what their official 
employers considered to be a criminal conspiracy against the United 
States. ... It is only a step to agents provocateurs, spies who incite 
organizations to commit unlawful acts for the sake of getting damaging 
evidence against those organizations— the sort of thing the LaFollette 
Committee showed to be going on inside labor unions. 

336 



There was nothing newfangled about the tales of "Communist 
intrigue" told by the Government witnesses at Foley Square. For 
three decades these tales had been the familiar themes of anti-Com- 
munist newspaper exposes, books on the Red Menace, Chamber of 
Commerce and American Legion reports on "radicalism," and the 
"findings" of such congressional investigatory bodies as the Un- 
American Activities Committee. 

One prosecution witness after another testified that the Com- 
munist Party of the United States operated directly upon "orders 
from Moscow," that American Communists were ruthless conspira- 
tors functioning through a nationwide complex of "secret cells," 
and that the basic objective of the Communist Party was the "over- 
throw of the Government by force and violence." 

At the opening of the trial, Judge Medina had instructed the 
jurors to approach the issues of the case with complete lack of bias 
and with minds as "blank" as a sheet of white paper he raised in 
the air. From the outset, however, it was clear where his own sym- 
pathies lay. Regarding Medina's conduct, the distinguished attorney 
and former Director of Justice of the Cuban Government, Domingo 
Villamil, reported to the International Association of Democratic 
Lawyers, which had delegated him to be an observer at the trial: 

My sentiments of justice and decorum were painfully disconcerted 
by what I heard and saw . . . 

Judge Harold Medina impressed me as an evidently partial person; 
a man who is very far from being an ornament of the North American 
judiciary. ... I saw him, always, as compliant, gentle and affable 
towards the prosecutor ... as he was prejudiced, ironical and curt 
towards the defendants . . . 

The judge, evidently, has inverted the rule of universal juridical 
morality . . . instead of presuming the innocence of the accused until 
their guilt has been proved, he presumes their wickedness and their 
guilt ... 

There are two prosecutors and no judge at all at that trial— Judge 
Medina . . . being the more formidable of the two. 

After examining over 13,000 pages of the court record, with a 
view to assessing the accuracy of press reports of the proceedings, 
a group of New York lawyers published a treatise entitled Due 
Process in a Political Trial. The lawyers made the prefatory com- 
ment: "In the analysis that follows, the reader may discern a pat- 
tern of juridical conduct characterized by bias against the defen- 

337 



dants and their counsel, the effect of which tends to deprive the 
defendants of a fair trial and to obstruct the defense lawyers in the 
performance of their duty." 

The treatise prepared by the New York lawyers listed, with de- 
tailed documentation, these categories of judicial misconduct on 
the part of Judge Medina: 

(a) Rulings which tend to silence and immobilize defense counsel; 

(b) Improper characterizations of defense counsel in the presence 
of the jury; 

(c) Discriminatory treatment of defense counsel as compared with 
the treatment of the prosecution; 

(d) Threats to penalize defense counsel for performance of their 
duty; 

(e) Discriminatory application of rules of evidence to the defense 
as compared with the prosecution; 

(f) Badgering of defendants and defense witnesses contrasted with 

courtesy and helpfulness to prosecution witnesses; 

(g) Deprecation of the defendant's evidence in the presence of the 
jury; 

(h) Attributing to the defense ulterior and improper motives in the 
presence of the jury.* 

A vivid and significant instance of Judge Medina's partiality 
toward the prosecution occurred in connection with one of the 
most vital issues of the trial— the meaning of the term, Marxism- 
Leninism. When Louis Budenz was on the witness stand. Prosecutor 
McGohey asked him to interpret that section of the Communist 
Party constitution which stated the Party based itself "on the prin- 
ciples of Marxism-Leninism." The defense attorneys objected to the 
question on the grounds that the term was fully defined in official 
Communist documents already introduced as evidence, and that it 
was for the jury to decide the meaning of the term from such 
materials. 



* Typical of the caustic remarks repeatedly made by Judge Medina to the 
defense attorneys were the following: 

"Talk all you like, but I have the last word." 

"That sounds crazy. You always seem to do that," 

"You may object your head off." 

"You look so innocent." 

"You will now take the book and you will now sit down and get busy read- 
ing it." 

"The least observation you make, the better." 

In one instance. Judge Medina accused defense attorney Harry Sacher of 
having "deliberately lied." When Sacher objected to the judge's language, 
Medina angrily declared, "I will not believe a word you say." 

338 



Judge iMedina overruled all objections. "How will they [the 
jury] know what Marxism-Leninism is referred to," he said, "unless 
somebody tells them?" 

On Medina's instructions, Budenz answered the question, stating 
that according to Marxist-Leninist principles socialism could be 
attained in America only by the "overthrow of the Government of 
the United States . . . and the setting up of a dictatorship of the 
proletariat by force and violence." This, declared Budenz, repre- 
sented the fundamental program of the Communists on trial . . . 

Subsequently, when defendant Robert Thompson was on the wit- 
ness stand, defense counsel Richard Gladstein asked, "Will you state 
to this jury what is Marxism-Leninism?" 

Prosecutor McGohey objected to the question. 

"Sustained," said Judge Medina. 

"May I call your Honor's attention," said Gladstein, "to the state 
of the record—" 

"No," interrupted the judge, "I don't want to hear any more 
argument about it." 

"But your Honor—" 

Judge Medina again cut Gladstein short, saying the question was 
not "relevant." 

"Would your Honor notice," asked Gladstein, "that in the record 
your Honor permitted the witness Budenz to be asked precisely 
that question and to give an answer to it?" 

"You know," Judge Medina angrily declared, "I just told you I 
didn't desire to hear argument but you wanted to get that point in 
and so again you have become contemptuous." 

As the trial continued through the spring and summer months. 
Judge Medina frequently castigated the defense attorneys as "im- 
pudent" and "contemptuous," and repeatedly threatened them with 
disciplinary reprisals for their tenacious efforts to bring forward evi- 
dence they considered vital to their cHents' case. 

Manifesting a weary injured air. Judge Medina charged the de- 
fense lawyers with plotting to undermine his health. Typical of his 
remarks were these: "You have my nerves so frayed that I do not 
know how I am going to carry on this trial". . ."It is more than 
any human being can stand". . ."I have been meditating about hav- 
ing some kind of a little recess of two or three days because I have 
been getting myself in such a state of fatigue that I am really 
worried." 

339 



Periodically, the judge recessed court sessions to "rest" in his 
chambers from the "rigors" of the trial. 

In the press and on the radio, Medina was effusively praised for 
his "infinite patience" and "temperance". . , 

On June 3, John Gates declined to give the prosecution the names 
of fellow veterans who had helped him prepare a pamphlet dealing 
with veterans' problems. To name these individuals, said Gates, 
would expose them to persecution. For refusing to divulge this in- 
formation. Gates was sentenced by the judge to thirty days in jail. 
When the defendants Henry Winston and Gus Hall protested, 
Medina promptly remanded them for the duration of the trial. 

On June 20, Gilbert Green objected to Medina's unwillingness 
to accept as evidence an article which he, Green, had written. "I 
thought we would be given a chance to present our case," said 
Green. "This article is germane to the very heart of the issue." For 
making this remark, Green was sentenced to jail for the balance of 
the trial. 

When Carl Winter declined to state whether or not his father- 
in-law had attended a Communist Party convention, Medina gave 
the defendant a thirty-day prison sentence.* 

On August 23, the New York Daily Compass published a sensa- 
tional exclusive news-story on the trial at Foley Square. The story 
revealed that one of the jurors, Russell Janney, elderly theatrical 
producer and author of the book. The Miracle of the BellSy had 
publicly expressed a violent antipathy toward the Communist Party 
less than a month before being sworn in as a supposedly unbiased 
juror. 

The Compass story, which was written by the newspaper's cru- 
sading editor and publisher, Ted O. Thackrey, quoted excerpts from 
a speech made by Janney at Macon, Georgia, on February 21, 1949. 
Janney had stated: 



* The defendants cited for contempt were confined, when court was not in 
session, in the old dilapidated West Street jail. In their prison quarters, they 
were unable to consult properly with their attorneys. Friends and relatives 
were not permitted to bring the defendants food to supplement their meagre 
prison rations. During the excessive summer heat, the defendants were kept 
in cramped ill-ventilated cells. When Henry Winston suffered two heart at- 
tacks in jail, Judge Medina denied him the services of his family physician 
and refused to grant a court recess or suspend Winston's contempt sentence. 

340 



There can be no compromise between Communism and democracy. 
. . . People who want Communism should go to Russia and live. . , . 
We're already fighting a war with Communism and it should be a war 
to the death. 

Thackrey also disclosed that during the course of the trial, Janney 
had made frequent comments outside the courtroom which clearly 
indicated his strong prejudice against the defendants. 

Thackrey commented: 

. . there are sworn statements available testifying to the accuracy 
of what I have reported. 

What I have reported is sufficient for me to question whether Mr. 
Janney is, or ever was, sufficiently free of conclusions concerning the 
defendants to give them a fair hearing or a fair trial. 

On the basis of these disclosures, the defense attorneys moved on 
August 24 to have Janney disqualified as a juror. 
Judge Medina denied the motion. 

On October 14, after nine months of court proceedings, the trial 
of the eleven Communists reached its foregone conclusion. The 
jurors brought in a verdict of guilty. 

As soon as the jury had handed down its verdict. Judge Medina 
instructed all defense counsel to rise. After reading a judgment of 
contempt against the five attorneys and Eugene Dennis, who had 
conducted his own defense, the judge sentenced the six men to 
prison terms ranging from thirty days to six months. 

A week later. Judge Medina sentenced ten of the Communist 
leaders to five years' imprisonment and fines of $10,000 each. 

The sentence given Robert Thompson was three years' imprison- 
ment and a fine of $10,000. The judge explained he was being 
lenient because of Thompson's record as a war hero. 

The verdict and sentence were widely hailed by the nation's press 
as a symbol of American justice. The "Voice of America" broad- 
cast the verdict to the world as proof of the fact that "every man 
in America, whether rich or poor, and without discrimination as to 
his color or creed, has his day in court." 

But a large number of thoughtful Americans, cognizant of the 
profound significance of the conviction of the Communist leaders, 
agreed with the opinion expressed by the St. Louis Post-Dispatch: 

. . . convicting them goes against one of the greatest traditions m all 
American history— that which insists upon the worth of the individual 



citizen as a person rather than as a minute part of the state. . . . Punish 
the Communists for their ideas and we open the way to punish others 
with less cause or no cause at all. 

3. Peekskill 

More than a decade before the trial of the American Communist 
leaders, Eugen Hadamowski, Nazi radio chief and Goebbels' aide, 
wrote: "Propaganda and force are never absolute antitheses— the use 
of force can be a part of propaganda. Between them are means of 
every degree to exert influence: from lightning-flashes to arouse 
the individual, from gentle persuasion to wild mass propaganda; 
from the loose organization of recruits to the creation of state or 
semi-state institutions; from individual to mass terror . . ." 

In America in the summer of 1 949, as anti-Communist propaganda 
reached a frenzied peak, there occurred a world-shocking event 
which seemed to exemphfy the thesis of Eugen Hadamowski. 

While the twelve Communist leaders were on trial at the Federal 
Court House in New York City for alleged advocacy of force and 
violence against the Government, the real exponents of force and 
violence in America went into action less than fifty miles away. 

A concert by Paul Robeson had been announced for Saturday 
evening, August 27, at the Lakeland Acres picnic grounds outside 
the town of Peekskill, New York. [Proceeds of the concert were to 
go to the Harlem Chapter of the Civil Rights Congress, an organi- 
zation dedicated to defending constitutional liberties that had been 
named on Attorney General Clark's "subversive" list.] 

Four days before the scheduled concert, the Peekskill Evening 
Star carried the headline, "Robeson Concert Here Aids 'Subversive' 
Unit." The paper editorialized: "The time for tolerant silence that 
signifies approval is running out . . ." The president of the local 
Chamber of Commerce and other local patrioteers attacked the 
concert as "un-American." Veterans organizations voted to hold a 
protest parade and demonstration the night of the concert. 

The concert was never held. 

When Paul Robeson arrived for the aflFair, he could not get into 
Lakeland Acres. An ugly-tempered mob blocked the way, prevent- 
ing anyone from entering the grounds. For two miles along the 
road leading to the park, the cars of concert-goers were jammed 
fender to fender. No police were in sight. 

342 



At nightfall the hoodlums smashed the folding chairs set up on the 
field, made a blazing bonfire out of them, and launched a violent 
assault on persons who had entered the grounds earlier in the eve- 
ning. The attackers shouted: "No one of you leave here alive . . . 
We're Hitler's boys— out to finish his job." 

A defense line was hastily organized by a few dozen men in the 
picnic grounds. At 8:30 one of the men, making his way in the dark 
through the shouting mob, went to telephone the state police. He 
later recounted this episode: 

I saw a Negro and two white people approaching the entrance to 
the grounds. They were stopped by the mob. A dozen men pushed the 
Negro up against an embankment. The Negro kept saying, 'Tm an 
American! I have a right to attend this concert!" Suddenly, one of the 
men struck him. He went down and the gang piled on top of him 
yelling, "Kill him! Let's finish him!" They beat him unmercifully, 
kicked him and stamped all over him. Then I saw a man in soldier's 
uniform standing on the side. I said to him, "Come on, buddy, this 
ain't right." He said, "That's right, this ain't the American way," and 
dashed into the gang. I managed to half drag the Negro through some 
parked cars and into the woods. If I hadn't I think they would have 
murdered him. 

Describing the treatment accorded numerous persons seeking to 
attend the concert, the New York Herald Tribune reported on 
August 29: 

. . . they were stopped by a road block of boulders and logs, and 
ordered out of or pulled from the vehicles. The men were manhandled, 
the women permitted to depart with jeers. The machines were smashed 
on tops, sides and windows with rocks and eight of them turned over. 
They were removed by wreckers about 2 o'clock this morning. 

Not until after the rioting had been going on for several hours 
did poUce finally arrive on the scene and restore a semblance of 
order. 

On Sunday afternoon, the day following the outrage, 1500 indig- 
nant local residents assembled at the estate of Dr. Samuel Rosen in 
Katonah, formed the Westchester Committee for Law and Order 
and voted unanimously to send a second invitation to Paul Robeson 
to sing in Peekskill. "We refuse to abandon any section of the 
United States to organized hoodlumism," the Committee resolved. 
"Our freedom and civil rights are at stake." 

Tuesday night, 8,000 people jammed the Golden Gate Ballroom 

343 



in Harlem to protest the Peekskill violence. Addressing the meeting, 
Paul Robeson announced he was returning to sing in Westchester 
County. 

The new concert was scheduled for Sunday afternoon, September 
4, at the Hollow Brook Country Qub. 

As the day of the second concert approached, tension mounted in 
Peekskill. Local veterans organizations called for a giant protest 
parade outside the concert grounds. Signs and posters appeared 
throughout the town bearing the slogan, "Wake Up America— 
Peekskill Did!" Stickers were pasted on cars and buses with the 
inscription: "Communism Is Treason, Behind Communism— the 
Jew! Therefore: For My Country— Against the Jews." The Daily 
Compass reported that vacationers in a nearby summer colony felt 
"so menaced that the menfolk have organized 24-hour-a-day guards 
against attack." 

The night before the concert, young men loitering in bars and 
poolrooms and on street corners in Peekskill were openly boasting 
of the "job" they were going to do on the "commies," "niggers," 
and "kikes". . . 

At the urgent insistence of the Westchester Committee for Law 
and Order, Governor Thomas E. Dewey ordered state poHce to 
Peekskill on the day of the concert. 

To insure protection for the audience, the organizers of the con- 
cert themselves mobiHzed a corps of 2500 anti-fascist veterans. 
Under the command of Leon Straus, vice-president of the Interna- 
tional Fur and Leather Workers Union and a reserve officer in the 
U.S. Army, these veterans arrived at Hollow Brook Country Club 
shortly after sunrise on the morning of the concert. Standing 
shoulder to shoulder, they formed a defense guard completely en- 
circling the grounds. 

At noon the concert-goers, including numerous families with 
picnic boxes, began to throng into the area. Approaching the en- 
trance, they passed between lines of hundreds of police restraining 
crowds of demonstrators calling threats, curses and epithets. Some 
shouted: "Commies, kikes, nigger lovers . . . You're goin' in but 
you ain't comin' out." 

Groups from local veterans posts marched up and down to the 
accompaniment of bands. 

When the concert started at 2 o'clock, some 20,000 people were 

344 



in the grounds. The audience was hushed as Paul Robeson sang. 
Waves of applause echoed against the surrounding hills . . . 

At the conclusion of the concert, the police routed departing 
buses and cars along a steep winding road which passed through 
thick woods. Hundreds of men were waiting in ambush along the 
way armed with piles of rocks, stones, bottles and bricks. A storm 
of missiles met the vehicles coming along the road. 

Here are some excerpts from a£5davits later secured from victims 
of the attack: 

"We asked a State trooper to arrest a rock thrower. He said, *Go on 
home, you dirty Jew kike, before you get your head split.' " 

"I saw several injured people ask the troopers and policemen for 
help. They were laughed at, called such names as 'Dirty Jew,' 'Dirty 
nigger,' and some of these injured were hit with the billies of the police- 
men. I also saw some troopers and policemen throw rocks at the cars 
and buses." 



"The women and children in the bus were told to lie on the floor. 
The women crouched over the children to protect them from the 
rocks and flying glass. . . . Several ruffians ran up close to the bus and 
taking careful aim hurled rocks directly at the heads of some of the 
women." 



"One of the troopers said, 'Let's get these bastards.' One of them 
stopped at the front window [of the car] where I sat. He took careful 
aim and shoved his nightstick, point first, at my left eye. . . . The club 
missed the eyeball and caught the corner of the lid. It began to bleed. 
The police ordered us out of the car. ... I was forced to run through 
a gauntlet of 15 to 20 policemen. Each of them clubbed me across the 
head or back. They threw me to the ground and continued the beating. 
One of the policemen noticed a bandage on my left hand, which had 
been burned a week before. He jumped on the hand and ground his 
heel into the bandage, fracturing one of the burned fingers." 



"A group of hoodlums came directly in front of the bus and threw 
a huge boulder in. This boulder struck my left hand and when I looked 
down I saw that the third joint of my middle finger was barely hanging 
by one tendon. Witnessing this whole incident were State troopers who 
were laughing." 

Casualties totalled in the hundreds. A number of men and women 
were critically injured. 

345 



More than fifty buses and hundreds of private cars carried grim 
scars of the mob violence— shattered windows, dented sides, battered 
fenders. 

"This is being written a few short hours after my departure from 
the Hell on Earth that was Peekskill," Leslie Matthews, a staff cor- 
respondent for the Negro paper, New York Age, wrote that eve- 
ning. "I still hear the frenzied roar of crowds, the patter of stone 
against glass and flesh. I hear the wails of women, the impassioned 
screams of children, the jeers and taunts of wildeyed youths. I still 
smell the sickening odor of blood flowing from freshly opened 
wounds, gasoline fumes from autos and buses valiantly trying to 
carry their loads of human targets out of the range of bricks, bot- 
tles, stones, sticks. I still feel the violence, the chaos, which per- 
meated the air. I still hear, smell, and feel Peekskill." 

An outcry of revulsion and condemnation went up from coast 
to coast. Numerous civic, religious, labor and fraternal organiza- 
tions, as well as scores of outstanding public figures, joined the 
protest. 

The Christian Science Monitor editorialized: 

... if a community like that could produce the tyranny of riots 
which denied constitutional rights of free assembly and free speech, 
few cities in America can feel safe . . . 

The preface to a booklet entitled Eyewitness: Peekskill, U.S.A. 
subsequently published by the Westchester Committee for a Fair 
Inquiry Into the Peekskill Violence, read in part: 

We who submit this report to you are residents of the area. We 
have built our homes here, we send our children to its schools . . . 

We know now, that what happened to us spells Fascism. It is no 
longer something remote which happened to the people of Germany. 
It is now something close and personal which threatens us in our daily 
lives. 

A local merchant says: "The young lad who carries the mail in our 
village, the lad who has smiled and greeted me every morning for 
three years was a member of the howling mob which attacked the 
first Robeson concert." An old resident tells us: "The barber . . . who 
had cut our children's hair for i6 years, boasts proudly that he helped 
organize the stoning of cars as they left the second concert." And a 
mother says: "The girl who was our daughter's best friend in school, 
told her she deserved the rock hurled at her face because she went to 
hear Robeson sing in Peeksill." 

346 



The statement concluded: 

We send you this report in the fervent hope that you, too, will act 
before it is too late; that you will never close your eyes and ears to the 
truth; that you will never permit this vicious thing called Fascism to 
degrade and brutalize the people of our land. 

4; 1950 

"As we move forward into the second half of the Twentieth 
Century," President Harry Truman told a joint session of Congress 
in his State of the Union message on January 4, 1950, "we must 
always bear in mind the central purpose of our national hfe. . . . 
We work for a better life for all. . . . We can achieve peace only 
if we maintain our productive energy, our democratic institutions 
and our firm behef in individual freedom. . . . Today, by the 
Grace of God, we stand a free and prosperous nation with greater 
possibilities for the future than any people ever had before in the 
history of the world." 

According to an editorial in Life magazine, the President's mes- 
sage was "in many respects the finest expression of national charac- 
ter and purpose which has come from the White House since the 
time of Teddy Roosevelt." The editorial exulted: 

. . . what a change has come over the U.S.! 

Think back to the 30's, to the decade of Franklin Roosevelt, when 
the President of the U.S. reflected the sterile belief of many Americans 
in those years that the frontiers were closed or closing. 

There was no denying Life's claim that a profound change had 
occurred in the United States in the five years that had elapsed 
since the end of the Roosevelt era. But millions of Americans, 
unlike the editors of Life magazine, were finding less and less 
reason for rejoicing in the drastically altered conditions in their land. 

To many Americans, in fact, it seemed as if their nation instead 
of moving forward had suddenly plunged backwards— as if, in 
many respects, history were repeating itself in a grim regeneration 
of the disastrous events which had overtaken the country in the 
years following the First World War. 

At the mid-century mark, as during the Roaring Twenties, a cabal 
of immensely powerful industrialists and financiers were relent- 
lessly imposing their will on the economic and political life of 
America. In another period of spurious prosperity, with corporate 

347 



profits reaching hitherto unknown heights, unemployment and 
national insecurity were steadily mounting. In place of Harding's 
Ohio Gang, Truman's Missouri Gang held sway in the nation's 
capital. Once again, corruption and cynicism were gnawing at the 
moral fabric of the nation; racketeers and political bosses were 
wrangling over the spoils; and crime was rampant in the land. 

Reaction was riding high, and red hysteria, bigotry and violence 
intensifying on every side. The country, in the words of an Ameri- 
can Civil Liberties Union report entitled In the Shadow of Fear^ 
was beset by "an unprecedented array of barriers to free associa- 
tion, of forced declarations of loyalty, of blacklists and purges," 
and the power of the FBI had reached a point "risking for the first 
time in our history the creation of a secret police system with its 
array of informers and under-cover agents." 

Exactly thirty years after thousands of "radicals" had been 
rounded up in the infamous Palmer Raids on the pretext they were 
plotting to overthrow the U.S. Government, Acting Assistant 
Attorney General Raymond P. Whearty announced at a Congres- 
sional committee hearing in Washington, D.C., that the FBI was 
ready to arrest 21,105 Americans for "subversive activity." And, 
like an evil spirit returned from a nightmarish past, the "Master of 
the Hunt" was again J. Edgar Hoover . . . 

The similarities between the two postwar Americas, however, 
were less ominous than the differences. 

Whereas the American people experienced sweeping assaults on 
their democratic rights following the First World War, they were 
menaced in 1950 with the total destruction of democracy itself and 
the establishment of fascism in America. And whereas the wild 
profiteering and depredations of the Twenties foreboded the want 
and suffering of the Great Depression, the power politics of the 
Cold War era threatened to touch off an atomic global war which 
would snuff out the lives of countless millions of men, women and 
children. 

Overriding all other issues, two stark and momentous questions 
faced the American people in 1950: democracy or fascism in their 
land? peace or war in the world? 

Throughout the length and breadth of the earth hundreds of 
millions of freedom-loving human beings, determined to maintain 
peace, were anxiously watching to see which path the American 
nation would choose. 

348 



TO THE READER 

The story told in this boo\ remains unfinished. 

Even as these words are written, acts of treason are being com- 
mitted against the American people. At this very moment, our 
liberties and lives are more gravely endangered than ever before 
by traitorous intrigues. 

In facing the crisis of the present, we must be ever mindful of 
the lessons of the past. On all sides, strident voices are proclaim- 
ing that the current danger to our nation comes not from the 
right but from the left, that those conspiring against us are not 
reactionaries but radicals. But every American who prizes democ- 
racy and peace, every American who cherishes the welfare of his 
family, must as\ himself: who profited from the First World 
War? who looted our land in the Twenties and brought upon us 
the terrible depression of the Thirties? who plotted and fought 
against the democratic advances of the people in the days of the 
'New Deal? who nurtured fascism, put Hitler mto power and 
made inevitable the Second World War? who, indeed, has grown 
rich upon the bloodshed, agony and mass impoverishment of 
these last decades? 

And in the answers to these questions the propaganda lies of 
today are stripped bare, and the real enemies of the people stand 
exposed. 

It is these same enemies of the people — the privileged few and 
their agents in political office — who are now contriving the 
mounting reaction and lessening freedom in our land. It is they 
who menace us with the ghastly havoc and slaughter of a third 
world war. 

It should be clear to any reader of this boo\ that these enemies 
of the people possess much power. If they did not, they would 
represent small danger to us. But their power of the moment 
must not make us fearful. Their influence in our land, as 

349 



throughout the rest of the world, is as ephemeral as the deceits 
and illusions upon which it depends. Their fierceness is horn of 
desperation, for with every, day their actual strength wanes. They 
are giants with feet of clay. 

It would of course be foolhardy to hlin\ at the fact that the 
cause of progress and peace in America has suffered severe, if 
temporary, setbac\s. The democratic coalition which rallied about 
Roosevelt and reached its pea\ of vigor and unity during the war 
years has been badly disrupted. Such a coalition must be restored 
and strengthened to wrest control of the fate of the many from 
the hands of the few. 

In building this coalition, we must not he disconcerted by the 
accusation of disloyalty leveled against those who challenge and 
oppose the policies of our present government. It is utterly alien 
to the American tradition to demand unquestioning loyalty and 
unequivocal obedience from the people to the government; the 
American tradition is to demand loyalty and obedience from the 
government to the people. And when a government ceases to be 
loyal to the people, when in fact it betrays the interests of the 
people, then the time has come to change the policies of the 
government by changing its composition and electing to office 
true representatives of the people. 

"The issue of this war',' said President Fran\lin D. Roosevelt 
in an address to Congress on July y, 1943, "is the basic issue be- 
tween those who believe in mankjnd and those who do not — the 
ancient issue between those who put their faith in the people and 
those who put their faith in dictators and tyrants. There have 
always been those who did not believe in the people, who at- 
tempted to bloc\ their forward march across history, to force 
them bac\ to servility and silence!' 

Roosevelt declared: "We are going to win the war and we are 
going to win the peace that follows." 

The people won the war. The people will win the peace. 

A.E.K. 
April ig^o 



350 



BIBLIOGRAPHICAL NOTES AND 
ACKNOWLEDGMENTS 



In the preparation of this book, I made extensive reference to the hearings, 
reports and official records of U.S. Government agencies and Congressional 
Committees, and to various other public documents. Those official records, 
documents and reports upon which I drew most heavily are listed below 
under the heading, "Public Documents." 

I also made considerable use of the published memoirs of a number of the 
persons mentioned in this book. All of the dialogue in this book is taken from 
these memoirs, which are included among the books listed below, and from 
court records, official reports and other such documentary sources. 

Acknowledgment must be made of my special indebtedness to the writings 
of George Seldes, whose Witch Hunt, Facts and Fascis7n, You Can't Print 
That, 1000 Americans and other books provide an invaluable source of in- 
formation on political intrigue, big business machinations and anti-democratic 
activities in the United States during the last three decades. Among other 
books which proved particularly useful to me were Privileged Characters, 
Al. A. Werner's comprehensive study of corruption in high places during the 
1920's; This Was Nor??ialcy, Karl Schriftgeisser's enlightening account of the 
Harding, Coolidge and Hoover eras; Free Speech in the United States, Zech- 
ariah Chafee, Jr.'s definitive work on constitutional law and civil liberties; 
-and Ojily Yesterday and Siiice Yesterday, Frederick Lewis Allen's colorful 
and interesting books dealing with the American scene between the two 
world wars. 

The Index of the New York Times, The Readers' Guide to Periodical 
Literature and the Encyclopedia of Social Sciences were indispensable refer- 
ence sources. 

Much material, as indicated in the text, has been taken from newspapers, 
magazines and other journals. Among contemporary publications which con- 
tain important material often not available in the general press are Johannes 
Steel's Report on World Affairs; George Seldes' hi Fact; Cedric Belfrage's 
National Guardian; T. O. Thackrey's Daily Compass; and the St. Louis Post- 
Dispatch. The files of the Daily Worker contain valuable data, frequently not 
obtainable elsewhere, on the class struggle in America during recent years. 
(An excellent example of vivid eye-witness reportage on labor strife is William 
Allen's series of articles in the Daily Worker on the strike at the Ford River 
Rouge Plant in April 1941.) 

I want to record a special debt of gratitude to Sally and Rockwell Kent, 
whose friendly encouragement and advice proved greatly helpful. I wish also to 
express my appreciation of the valuable assistance given to me by Richard 
Boyer, Joseph Brainin, Nathan Supak, Leon Straus, and G. S. R.; and to 
thank Cecil Lubell, Henry Black, Janet Laib, Ruth Gershon, Sidney Jackson, 
Rebecca Margolis, Robert Dunn and Gladys Meyer for their help in compil- 
ing material for this book. 

And, most especially, must I express my gratitude to Rictte, my wife, for 
her patient, unceasing and vital aid in every phase of my work on this book. 

Listed below are the chief source references for High Treason. 

A. E. K. 
351 



PUBLIC DOCUMENTS 

Hearings, Attorney-General A. Mitchell Palmer on charges made against the Dept. of Jus- 

tice by Louis F. Post and others, House of Representatives Committee on Rules, 1920. 
Report of the Attorney General for 1920, U.S. Department of Justice, 1920. 
Revolutionary Radicalism, Report of Joint Legislative Committee Investigating Seditious 

Activities, New York Senate, 1920. (Lusk Committee.) 
Hearings, Senate Judiciary Committee, (pp. 397-420), 1921. 
Hearings before the Committee on Judiciary, House of Representatives, 67th Congress, 3rd, 

4th sess. on H. Res. 425, 1922. 
Hearings before the Select Committee on Investigation of Veterans' Bureau, U.S. Senate, 

67th Congress, 4th sess., 1923. 
Hearings before Committee on Public Lands and Surveys, U.S. Senate, 68th Congress, ist 

sess., 1924. (Teapot Dome Investigation.) 
Hearings before the Select Committee on Investigation of the Attorney General, U.S. 

Senate, 68th Congress, ist sess., 1924. 
Investigation of Communist Propaganda, Hearings before a Special Committee to Investigate 

Communist Activities in the United States of the House of Representatives, 71st Congress, 

2nd sess., 1930. 
Hearings before the Committee on Finance, U.S. Senate, 72nd Congress, ist sess., 1932, 

(Sale of Foreign Bonds or Securities in the U.S.) 
Hearings before the Committee on Banking and Currency, U.S. Senate, 72nd Congress, ist 

sess., 1932-1933. Hearings, 73rd Congress, 1933-34. (Stock Exchange Practices.) 
Investigation of Nazi Propaganda Activities and Investigation of Certain Other Propaganda 

Activities, Special Committee on Un-American Activities, 73rd Congress, 2nd sess., 1934. 
Violations of Free Speech and Rights of Labor, Hearings before a Sub-committee of the 

Committee on Education and Labor, United States Senate (LaFoUette Committee), 74th- 

76th Congress, i937-i939. 
Investigation of Un-American Propaganda Activities in the United States, Hearings before 

a Special Committee on Un-American Activities, House of Representatives, 1938-1948. 
Investigation of Concentration of Economic Power, Hearings before the Temporary National 

Economic Committee, Congress of the United States, 75th Congress, i939. . 
National Labor Relations Board. Ford Motor Co. and United Automobile Workers of 

America. Dallas case. Decision and Order, 1940. 
Un-American Activities in California, Report of the Joint Fact-Finding Committee, 55th 

California Legislature, I943- 
Hearings before a subcommittee of the Committee on Military Affairs, U.S. Senate, 78th 

Congress, 2nd sess., 1944. (Cartel Practices and National Security.) 
Economic (Concentration and World War II, Report of the Smaller War Plants Corporation 

to the Special Committee to Study Problems of American Small Business, U.S. Senate, 

79th Congress, 1946. 
Control of Subversive Activities, Hearings before the Committee on the Judiciary, U.S. 

Senate, 8oth Congress, 2nd sess., 1948. 

BOOKS AND PAMPHLETS 

Adamic, Louis, Dynamite, The Viking Press, 1935. 

Adams, Samuel Hopkins, Incredible Era, Houghton Mifflin Co., 1939. 

Allen, Frederick Lewis, Only Yesterday, Bantam Books, 1946. 

The Lords of Creation, Harper & Brothers Publishers, 1935. 

Since Yesterday, Harper & Brothers Publishers, 1940. 

Allen, James S., World Monopoly and Peace, International Publishers, 1946. 

Who Owns America f New Century Publishers, 1946. 

Allen, Robert S., and Pearson, Drew, Washington Merry-Go-Round, Horace Liveright, 

Inc., 1931. 
Aubruster, Howard Watson, Treason's Peace, The Beechhurst Press, 1947. 
American Civil Liberties Union, The Nation-Wide Spy System, 1924. 

In Times of Challenge, U.S. Liberties, 1946-47, 1947- 

In the Shadow of Fear, American Liberties 1948-49, August i949. 

Violen-ce in Peekskill, A report of the violations of civil liberties at tzvo Paul Robeson 

concerts near Peekskill, N.Y., August 27th and September 4th, 1949 — released December 

i. 1949. 
American Friends Service Committee, The United States and the Soviet Union, Some 

Quaker Proposals for Peace, Yale University Press, 1949. 
Andrews, Bert, Washington Witch Hunt, Random House, 1948. 
Anonymous, The Brown Network, The Activities of the Nazis in Foreign Couiitries, Knight 

Publications, Inc., 1936. 
Anonymous, The Mirrors of Washington, G. P. Putnam's Sons, 1921. 
Anonymous, The New Dealers, Simon & Schuster, 1934. 
Bane, Suda Lorena, and Lutz, Ralph Haswell, editors, Organisation of American Relief 

in Europe, 1918-1919, Stanford University Press, 1943. 
Beard, Charles A., and Beard, Mary R., The Rise of American Civilization, The Macmil> 

Ian Co., 1930. 

A Basic History of the United States, The Blakiston Co., 1944. 

Bb&gb, Wendell, Cartels, Challenge to a Free World, Public Affairs Press, 1944. 



Berle, Adolf A., Jr., and Means, Gardiner C, The Modern Corporation and Private 

Property, The Macmillan Co., i934- , ^. , r. . ,• i. 

BiMBA, Anthony, History of the American Working Class, International Publishers, 1927. 
Blake, George, Who Pays for the Cold War?, New Century Publishers, 1949- 
Blanshard, Paul, American Freedom and Catholic Power, The Beacon Press 1949. 
BoRKiN, Joseph, and Welsh, Charles A., Germany's Master Plan, Duell, Sloan and 

Brady^'^Robert a., Business As A System Of Power, Columbia University Press, 1943. 

Britton, Nan, The President's Daughter, Elizabeth Ann Guild, Inc., 1927. 

Brown, Earl, and Leighton, George R., The Negro and the War, Public Affairs 

Pamphlets, 1942. ,, ^^.„ „ , ^ t 

Budenz, Louis Francis, This Is My Story, McGraw-Hill Book Co., Inc., 1947- 
Buell, Raymond, Europe, A History of Ten Years, Macmillan Co., 1928. 
Bullitt, William C, The Great Globe Itself, Charles Scnbners Sons, 1946. 
Carlson, John Roy, Under Cover, The Blakiston Co., 1943- 
Carr, Katherine. South American Primer, Reynal & Hitchcock, 1939. 
Catton, Bruce, The War Lords of Washington, Harcourt, Brace & Co., 1948. _ 
Chafee, Zechariah, Jr., Free Speech In The United States, Harvard University Press, 

1948. 
Churchill, Winston S., The Aftermath, Charles Scribners Sons, 1929. 
Civil Rights Congress, America's "Thought Police," 1947- ^, tvt ■ t a 

Cobb, W. Montague, M.D., Medical Care and the Plight of the Negro, The National Asso- 
ciation for the Advancement of Colored People, 1947. 
Coffin, Tris, Missouri Compromise, Little, Brown & Co., 1947. , n -l 

The Commission of Inquiry, The Interchurch World Movement, Report on the Steel Strike 

of 1919, Harcourt, Brace & Howe, 1920. 
Crane, Milton, editor. The Roosevelt Era, Boni and Gaer, 1947. 

CuMMiNGS, Homer, and McFarland, Carl, Federal Justice, The Macmillan Co., i937' 
Daugherty, Harry M., with Dixon, Thomas, The Inside Story of the Hardtng Tragedy, 

The Churchill Co., 1932. 
Davies Joseph E., Mission To Moscow, Simon and Schuster, 1941. 
Department of Realms, Knights of the Ku Klux Klan, Inc., Articles on the Klan and 

Elementary Klankraft, undated. 
Dilling, Elizabeth, The Red Network, published by the author, 1934. 
Dos Passos, John. The Big Money, Harcourt, Brace & Co., 1936. 
Douglas, Jack, Veterans on the March, Workers Library Publishers, i934- 
Dreiser, Theodore, Tragic America, Horace Liveright, Inc., 1931- 
DuBois, W. E. Burgh ardt. Dusk of Dawn, Harcourt, Brace & Co., 1940. 

editor, An Appeal to the World!, The National Association for the Advancement of 

Colored People. i947' 
Dulles, Foster Rhea, The Road to Teheran, Princeton University Press, i944- 
Dunn, Robert W., editor, The Palmer Raids, International Publishers, 1948. 
DuTT, R. Palme, Fascism and Social Revolution, International Publishers, i935- 

World Politics, 1918-1936, International Publishers, 1936. 

Engelbrecht, H. C, and Hanighen. F, C, Merchants of Death, Dodd, Mead & Co., 1934. 
Faulkner, Harold U., and Starr, Mark, Labor in America, Harper & Bros., 1944. 
Fish. Hamilton, The Red Plotters, Domestic and Foreign Affairs Publishers, 1947. 
Flanagan, Hallie, Arena, Duell, Sloan & Pearce, 1940. 

FoNER, Philip S., editor, Franklin Delano Roosevelt, Selections from His Writings, Inter- 
national Publishers, 1947- 

Forster, Arnold, A Measure of Freedom, Doubleday & Co., rg^o. 

Foster, William Z., Misleaders of Labor, Union Educational League, 1927. 
Pages from a Worker's Life, International Publishers, 1939- 

The Twilight of World Capitalism, International Publishers, 1949- 

Frankfurter, Felix, The Case of Sacco and Vanzetti, Little, Brown & Co., 1927. 

Frankfurter, Marion Denman, and Jackson, Gardner, editors, The Letters of Sacco and 
Vanzetti, The Viking Press, 1928. 

Gaer, Joseph, The First Round, The Story of the CIO Political Action Committee, Duell, 
Sloan & Pearce, 1944. 

Gauvreau, Emile, What So Proudly We Hailed, Macaulay, i935- 

Geddes, Donald Porter, Franklin Delano Roosevelt, A Memorial, Pocket Books, Inc., rg4S« 

Gellermann, William, Martin Dies, John Day Co., i944- 

GiBBS, Sir Philip, More That Must Be Told, Harper & Bros. Publishers, 1921. 

Gray, Justin, with Bernstein, Victor H., The Inside Story of the Legion, Boni & Gaer, 
1948. 

Gunther, John, Inside U.S.A., Harper & Bros., 1947. 

Hacker, Louis M., and Kendrick, Benjamin V., The United States Since 1865, Appletoar 
Century-Crofts, Inc. 

Hamill, John, The Strange Career of Mr. Hoover Under Two Flags, William Faro, Inc., 
1931. 

Harris, Herbert, American Labor, Yale University Press, 1939. 

Haywood, Harry, Negro Liberation, International Publishers, 1948. 

Haywood, William D., Bill Haywood's Book, International Publishers, igzg. 

Henderson, Harry B., and Shaw, Sam, War In Our Time, Doubleday, Doran & Co., Ina 
1942. 

Hirsch, Richard, The Soviet Spies, Duell, Sloan & Pearce, Inc., 1947. 

Hirschmann, Ira A., The Embers Still Burn, Simon and Schuster, 1949. 

353 



HousER, George and Rustin, Bayard, We Challenged Jim Crow!. The Fellowship of 
Reconciliation, 1946. ^, r , <- -r. ui- ■« ,.i- , • ^ 

Howard, Sidney and Dunn, Robert, The Labor Spy, Republic Publishing Co., 1924. 

HuBERMAN, Leo, The Labor Spy Racket, Modern Age Books, Inc., 1937. 

Ingersoll, Ralph, Top Secret. Harcourt, Brace and Co., 1946. 

Ireland, Tom, Child Labor, G. P. Putnam's Sons, 1937. 

Irwin, Will, Herbert Hoover. The Century Co., 1928. 

JouGHiN, G. Louis, and Morgan, Edmund M., The Legacy of Sacco and Vanzetti, Har- 
court, Brace & Co., 1948. _, „ . , , rr . 

Kahn, Albert E., Treason In Congress — The Record of the Un-Amertcan Activities Com^ 
mitiee. Progressive Citizens of America, 1948. 

Kahn, Gordon, Hollywood on Trial, Boni & Gaer, 1948, 

Kennedy, Stetson, 'Southern Exposure, Doubleday & Co., 1946 

KiNNAiRD, Clark, editor. The Real F.D.R., The Citadel Press, 1945. 

Knox, John, The Great Mistake, National Foundation Press, Inc., 1930. 

Konvitz, Milton R., The Constitution and Civil Rights, Columbia University Press, i947- 

Kravche'nko, Victor, / Chose Freedom, Charles Scribners Sons, 1946. 

Labor Research Association, Labor Fact Books l-o. International Publishers, 1931-1949. 

■ Trends in American Capitalism, International Publishers, 1948. 

Landis, Kenesaw M., editor, Segregation In Washington, National Committee on Segrega- 
tion in the Nation's Capital, 1948. 

Lee, Alfred McClung, and Humphrey, Norman Daymond, Race Riot, The Dryden 
Press, Inc., 1943. 

Leighton, Isabel, editor, The Aspirin Age, 1919-1941, Simon & Schuster, 1949. 

Levinson, Edward, / Break Strikes! The Technique of Pearl L. Bergoff, Robert M. 
McBride & Co., 1935. 

Lilienthal, David E., TVA, Democracy on the March, Pocket Books, Inc., 1944. 

LiNDLEY, Ernest K., The Roosevelt Revolution, Viking Press, 1933. 

Lippmann, Walter, Interpretations, 1931-1932, The Macmillan Co., 1932. 

Longworth, Alice Roosevelt, Crowded Hours, Charles Scribners Sons, I933- 

Lowry, Edward G., Washington Close-Ups, Houghton Mifflin Co., 1921. 

LuNDBERG, Ferdinand, America's 60 Families, The Citadel Press, 1946. 

MacLeish, Archibald, Land of the Free, Harcourt, Brace & Co., 1938. 

McConkey, Darel, Out of Your Pocket, The Story of Cartels, Pamphlet Press, 1946. 

McWiLLiAMS, Carey, Factories in the Field, Little, Brown & Co., 1939. 

Prejudice, Japanese-Americans, Symbol of Racial Intolerance, Little, Brown & Co.. 

1944. 

Race Discrimination and the Law, National Federation for Constitutional Liberties, 



1945- 

A Mask for Privilege: Anti-Semitism in America, Little, Brown & Co., 1948. 



Magil, a. B., and Stevens, Henry, The Peril of Fascism, International Publishers, 1938. 

Manes, Isabel Cable, A Southerner Looks at Negro Discrimitiation, International Pub- 
lishers, 1946. 

Marion, George, Bases & Empire, A Chart of American Expansion, Fairplay Publishers, 
1948. 

The Communist Trial, Fairplay Publishers, 1949. 

Matthews, J. B., Odyssey Of A Fellow Traveler, Mount Vernon Publishers, Inc., 1938. 

Means, Gaston B., and Thacker, May Dixon, The Strange Death of President Harding, 
Gold Label Books, Inc., 1930. 

Meyer, Hershel D., Must We Perish?, New Century Publishers, i949- 

MiLLiGAN, Maurice M., Missouri Waltz, Scribners, 1948. 

Minor, Robert, Lynching and Frame-Up in Tennessee, New Century Publishers, 1946. 

Minton, Bruce, and Stuart, John, Men Who Lead Labor, Modern Age Books, Inc., 1937. 

The Fat Years and the Lean. International Publishers, 1940. 

Morais, Herbert M., and Cahn, William, Gene Debs, The Story of a Fighting American, 
International Publishers, 1948. 

Morison, Samuel Eliot, and Commager, Henry Steele, The Growth of the American 
Republic, Oxford University Press, 1942. 

Morris, George, The Black Legion Rides, Workers Library Publishers, 1936. 

Murray, Alan Robert, What the Constitution Says, 1938. 

Murray, Florence, editor, The Negro Handbook, 1949, The Macmillan Co., 1949. 

Myers, Gustavus, History of the Great American Fortunes, The Modern Library, 1936. 

History of Bigotry in the United States, Random House, 1943. 

Myers, William Starr, and Newton, Walter H., The Hoover Administration, Charles 
Scribners Sons, 1936. 

Myrdal, Gunnar, An American Dilemma: The Negro Problem and Modern Democracy, 
Harper & Bros., 1940. 

National Association for the Advancement of Colored People, "Equal Justice Under Law," 
1945. . _ 

Terror in Tennessee, 1946. 

Groveland, U.S.A., i949- 

How About A Decent School for Me?, undated. 

O'Brien, James J., Hoover's Millions and How He Made Them, James J. O'Brien Pub- 
lishing Co., 1932. 

Ogden, August Raymond, The Dies Committee, The Catholic University of America Press, 
1943- 

Onkal, James, and Warner, G. A., American Communism, E. P. Dutton & Co., Inc., 1947= 

Pbrkins, Frances, The Roosevelt I Knew, Viking Press, 1946. 

354 



Perlman, Selig, and Taft, Philip, History of Labor in the United States, 1896-1932, The 

Macmillan Co., 1935- , ,,, „„, ^ 

Phelps, Edith M., editor, Civil Liberty, H. W. Wilson Co., 1927. 
Post, Louis F., The Deportations Delirium of Nineteen-Twenty, Charles H. Kerr & Co., 

1923. 
The President's Committee on Civil Rights, To Secure These Rights, Simon & Schuster, 

1947. 
Pringle, Henry F., Theodore Roosevelt, Harcourt, Brace & Co., 193 1. 
Purvis, Melvin, American Agent, Doubleday, Doran & Co., Inc., 1936. 
Reimann, Guenter, Patents for Hitler, The Vanguard Press, 1942. 
Rochester, Anna, Rulers of America, International Publishers, 1936. 

The Nature of Capitalism, International Publishers, 1946, 

Roe, Wellington, Juggernaut, American Labor in Action, J. P. Lippincott & Co., 1948. 

RoGGE, O, John, Our Vanishing Civil Liberties, Gaer Associates, Inc., 1949. 

Roosevelt, Franklin D., Roosevelt's Foreign Policy 1933-1941, Wilfred Funk, Inc., 1942. 

Rowan, Richard Wilmer, The Pinkertons, A Detective Dynasty, Little Brown & Co., 1931. 

Sasuly, Richard, / G Farben, Boni & Gaer, 1947. 

Sayers, Michael, and Kahn, Albert E., Sabotage! The Secret War Against America, 

Harper & Bros. Publishers, 1942. 

The Plot Against the Peace, Dial Press, 1945. 

— The Great Conspiracy : The Secret War Against Soviet Russia, Little, Brown & Co., 

1946. 
Schmalhausen, Samuel D., editor, Behold America!, Farrar & Rinehart, Inc., 1931. 
Schriftgiesser, Karl, This Was Normalcy, Little, Brown & Co., 1948. 
ScHUMAN, Frederick Lewis, American Policy Toward Russia Since 1917, International 

Pjiblishers, 1928. 

Europe on the Eve, The Crisis of Diplomacy, 1933-1939, Alfred A. Knopf, 1939. 

Night Over Europe, The Diplomacy of Nemesis, 1939-1940, Alfred A. Knopf, 1941- 

Schuyler, William M., editor, American Yearbook, 1935-1936, J. J. Little & Ives Co., 

1937. 
Seldes, George, World Panorama, 1918-1935, Blue Ribbon Books, 1935. 

You Can't Do That, Modern Age Books, 1938. 

Witch Hunt, The Technique and Profits of Redbaiting, Modern Age Books, 1940. 

The Facts Are, In J"act, Inc., 1942. 

Facts and Fascism, In Fact, Inc., 1943. 

The Catholic Crisis, Julian Messner Inc., 1945. 

• One Thousand Americans, Boni & Gaer, 1947. 

Sherwood, Robert E., Roosevelt and Hopkins, Harper & Bros., 1948. 

Shugg, Roger W., and De Weerd, Major H. A., World War II, A Concise History, The 

Infantry Journal, 1946. 
Simpson, Kemper, Big Business, Efficiency and Fascism, Harper & Bros., 1941. 
Spivak, John L., Plottiny America's Pogroms, New Masses, 1934. 

America Faces the Barricades, Covici, Friede, Publishers, 1935. 

Shrine of the Silver Dollar, Modern Age Books, 1940. 

Secret Armies, The New Technique of Nazi Warfare, Modem Age Books, Inc., 1942. 

Pattern for American Fascism, New Century Pi:blishers, 1947. 

The "Save the Country" Racket, New Century Publishers, 1948. 

Steel, Johannes, Will the Marshall Plan Re-Nazify Germany?, People's Forura Publishing 

Co., Inc., 1948. 
Steuben, John, Labor in Wartime, International Publishers, 1940. 
Stout, Rex, editor, The Illustrious Dunderheads, Alfred A. Knopf, 1942. 
Strong, Donald S., Organised Anti-Semitism In America, American Council on Public 

Affairs, 1941. 
Sullivan, Edward D., Rattling the Cup, On Chicago Crime, The Vanguard Press, 1929. 
Sullivan, Mark, Our Times, Vol. VI, Charles Scribners Sons, 1935. 
Surface, Frank M., and Bland, Raymond L., American Food in the World War and 

Reconstruction Period, Stanford University Press, 1931. 
Sward, Keith, The Legend of Henry Ford, Rinehart & Co., Inc., 1948. 
Trachtenberg, Alexander, editor, The American Labor Yearbook 1919-1920, The Rand 

School of Social Science, 1920. 
United Public Workers of America, CIO, The Story of Discrimination in Government, 

undated. 
Vorse, Mary Heaton, Labor's New Millions, Modern Age Books, Inc., 1938. 
Walker, Stanley, The Night Club Era, Frederick A. Stokes Co., 1933. 
Ward, Estolv E., Harry Bridges on Trial, Modern Age Books, 1940. 
Weatherwax, John M., Peace Key, Bryant Foundation, 1946. 
Weaver, Robert C, Hemmed In, American Council on Race Relations, 1945. 
Werner, Max, Attack Can Win in '4^, Soviet Russia Today, 1943. 
Werner, M. R., Privileged Characters, Robert M. McBride & Co., 1935. 
Westchester Committee for a Fair Inquiry Into the Peekskill Violence, Eyewitness: Peek- 
skill U.S.A., 1949. 
Whipple, Leon, The Story of Civil Liberties in the United States, Vanguard Press, 1927. 
White, William Allen, A Puritan In Babylon, Macmillan Co., 1938. 
Willkie, Wendell L., One World, Simon and Schuster, 1943. 

VVooD, Clement, Herbert Clark Hoover: An American Tragedy, Michael Swain, 193:2. 
Woodward, W. E., A New American History, Garden City Publishing Co., Inc., 1938. 
Yellen, Samuel, American Labor Struggles, Harcourt, Brace & Co., 1936. 

355 



INDEX 



AF of L See Federation of Labor 

ARA See American Relief Administration 

Abbott, W. A., 179-81 

Abercrombie, John W., 16, 25 

Abrams, F. W., 162 

Acheson, Dean, 246, 247 fn. 

Adam Opel A. G., 226 

Adamic, Louis, 85 

Adams, Charles F., gz 

Adams, Samuel Hopkins, 70 

Addams, Jane, 3 1 

Adjusted Service Certificate, 112 fn. 

Adonis, Joe, 173 

Advisory Commission on Universal Train- 
ing, 300 

Agents Provocateurs: Bonus marchers, 
114; Justice Department, 11, 20, 28; 
strikebreaking, 141 

Akron, Ohio, 165-66 

Alabama: anti-labor violence, 155; Ne- 
groes, 309 

Alaska, 112, 150 

Albert, Dr. Heinrich, 224 fn. 

Albert & Westrick (law firm), 223-24 

Aldrich, Winthrop W., 306 

Alien Act (1917), 15-16 

Alien Property Custodian, 66-67, 7^ 

Alien Registration Act (1940), 236, 333 

Aliens, 31, z^. See also Deportation 

Allen, Frederick Lewis, quoted on: anti- 
Communist drive, 34-35 ; Bolshevik 
bomb plots, 14 fn.; Bolshevism, 10, 29; 
Foster, William Z., 38 /n.; Harding's 
death, 70; New Deal, 126 

Allen, George E., 253-54 

Allen, Robert S., 104-05 

Allied Reparations Commission (W. W. 
II), Sifn., 254 

Allied troops (W.W.I.) , attempt to over- 
throw Soviet government, 5, 6 fn. 

Alsop, Joseph and Stewart, 298 

Aluminvmi Corporation of America. 141. 
228 

"America First" (slogan), 48 

America First Committee, 219, 222 

America First Party, 48 fn. 

American Brass Company, strike (19 19), 
36 

American Civil Liberties Union, 31 fn., 
236, 281 

American Civil Liberties Union Report 
(1936) quoted, 132 

American Continental Congress for Peace, 
Mexico City, 305 

American dictator, concept and plan for, 
196-204 

356 



American Federation of Labor : CIO, 
129; labor spies, 144; membership, 8, 
. 38 . 

American foreign policy. See Foreign 
policy 

American Hawaiian Steamship Co., 146, 
147 

American Heritage Foundation, 306-07 

American Legion, 197-202, 285-87 

American Liberty League, 193-95, 201-03 

American Metals Company, 66-67, 7i fn., 
76 

American Nationalist Confederation, 211 

American people: League of Nations, 10; 
treason against, xi-350 

American Red Cross Mission, 42 

American Relief Administration, 5 

American Reparations Commission, 256 

American Smelting and Refining Com- 
pany, 134 

American Sponsoring Committee of the 
World Congress of Fighters for Peace, 
30s 

American Telephone and Telegraph Co., 

^ 163, 193 

Anacostia Flats, Washington, D. C, 114- 
17 

Anderson, Mrs. Emily, 285 fn. 

Anderson, George, 17 

Anderson, Harry W., 162, 166 

Anderson, Rudolph, 209 

Andrews, Bert, 18 fn., 276-77 

Anguilla Prison, Brunswick, Georgia, 32Y 

Ansonia, Conn., strike (1919), 36 

Anti-labor violence, 155-56. See also Ford 
Motor Company ; Palmer raids ; Strike- 
breaking 

Anti-radical raids. See Palmer Raids ; Un- 
American Activities Committee 

Anti-Semitism : America First Committee, 
220 ; American Immigration Conference 
Board, 213; Black Legion, 205; Com- 
munism, 215 ; Ford, Henry, 32, 170, 
184 ; National Conference of Clergymen 
and Laymen, 211 ; Sentinels of the Re- 
public, 196; Un-American Activities 
Committee, 260 

Anti-Soviet propaganda, 237-38, 330-32 

Appeal to the World, An (document), 309; 

Aptheker, Dr. Herbert, 322 fn. 

Argentina, United Nations admission, 244 

Arizona, 279 

Arkansas: anti-labor violence, 155; Ku 
KJux Klan, 31 fn.; Negroes, 309 ; Pro- 
gressive Party, 294 ; race riots (1919), 9 

Armament program, 233, 304-05 

Armed services : Communists, 237 ; Ger«- 
many, 245 ; Negroes, 208 



Armistice (1918), 3, 6fH., 7 
Armstrong, Leon, 179 
Armstrong, Louis V., 109 
Arnold, Thurmond, 227-28 
Ascher, Rhoda Gaye, 294-95 
Ashkenes, Daniel D., 293 
Atheam, Dr. Clarence R., 293 
Atlanta, Georgia, ^22 
Atlantic Pact. See North Atlantic Pact 
Atlas Powder Company, 146 
Atomic bomb, 302-03 
Au Sable Forks, New York, 293 
Augusta, Georgia : Negroes, 325 ; Pro- 
gressive Party, 294-95 
Ausland-OrganisationderN.S.D.A.P., 271 
Avery, Paul, 209 
Avery, Sewell L., 193 
Aviation industry, 231 

BIS See Bank for International Settle- 
ment 

Baer, George. 179-80 

Bailey, Barker H., 145 

Baker, Lawrence, 144 

Baker, Newton D., 92 

Baldwin, C. B., 290, 294 

Baldwin, R. W., 132 

Baldwin, Roger N., 31 fn., 204, 312 fn. 

Baldwin Locomotive Works, 134 

Baltimore and Ohio Railroad, 134 

Bank of International Settlements, Basle, 
Switzerland, 226-27 

Bankruptcies, 83 

Banks and banking : "boom" years, 92- 
93; depression, 106-07, no; foreign 
securities, 85, 88 ; predatory operations 
(1920's), 88-89 ; preferred lists, 91-92 ; 
robberies, 127; Roosevelt, F. D., 122, 
124, 127 ; stocks and bonds, 89-93. ^^^ 
also Wall Street and the names of indi- 
vidual banks 

Banta, Edwin Perry, 214 

Baron, John B.. 136 

Barr, William H., quoted, 8 

Barrows, Arthur, 251 

Barsky, Dr. Edward K., 262 

Barton, Bruce, quoted, 82-83 

Baruch, Bernard M., 92 

Batt, William L., 233 

Bausch and Lomb, 228-29 

Bayonne, New Jersey, 139 

Beard, Charles and Mary, quoted, 47-48, 
130 

Beech, Gould, 283 

Bendix Aviation Corp., 146, 229 

Bennett, Harry Herbert, 170-89, 208 

Bennett, Philip, 219 

Benson, Elmer A., 210, 290-91, 303 

Bentley, Elizabeth, 299 

Berardelli, Alessandro, 94, 95 

Berger, Victor, 30 

Bergery, Gaston, 184 

Bergoff, Pearl L., 132-40 

Berkeley Police Department, 150-51 

Berle, Adolph, 124 

Bernal, J. D., 305 

Bernecker, Dr. Edward, 279 

Bessie, Alvah, 264 



Bethlehem Steel Co., 141, 146 

Bevill, "Buster," 177, 179-80 

Biedenkapp, Fred, 98 

Bielak, John, 207, 208 fn. 

Big Business. See Business 

Bingay, Malcolm M., quoted, 172 

Birmingham, Alabama, 153-54, 294 

Bishop, Andrew A., 283 

Bissel, Clayton, 237 

Black, James, 55 

Black Belts, 310-11. See also Chicago; 
Harlem ; Names of individual Southern 
cities and states 

Black Legion (society), 166, 204-211 

Blackmer, Henry, 72 fn., 72 

Blaine, Eli, 324-25 

Blair, Julius, 316 

Blanc, John Victor, 336 

Blankenhorn, Heber, 142 

Bliven, Bruce, 312 fn. 

Bloody Gang, Detroit, 173 

"Bloody Thursday," 1 15-16 

Bloom, Edgar S.. 162 

Bolshevism : "atrocities," 29 ; bomb plots, 
13-14 ; Capone, Al, quoted, 85 ; Clemen- 
ceau, quoted, 5 ; fear of, 24 ; Hoover, 
Herbert, quoted 5-6 ; London, Meyer, 
quoted, 24 ; Paris Peace Conference, 5 ; 
"plots" to overthrow U. S. government, 
13; WWI (post), fear of, 10-23, See 
also Communism ; Palmer raids 

Boraar, Lynn, 317, 318 

Bombay, India, Roosevelt's death, 240 

Bombs and bombings : Bolshevik plots, 13- 
14 ; commercial, 84 

Bone, Homer T., 228 

Bonus Marchers, 1 12-17 

Bootlegging : Coolidge regime, 84 ; Hard- 
ing regime, 49, 51, 64-65 ; Prohibition 
repeal, 127 

Borah, William Edgar, quoted, 6 fn. 

Borak, Harry, 139 

Borden Milk Co., 141 

Boston, Mass. : Harding, W. G., speech, 
32 ; Progressive Party, 294 ; Red raids 
(1920's), 17, 25, 32; Wallace support- 
ers, 293 

Bottcher, Herman J., 237 fn. 

Boulier, Abbe Jean, 305 

Boy-Ed, Captain Karl, 63 

"Brain Trust," 124 

Brandages, Frank, 43 

Brewster, Owen, 255 

Bridgeport, Conn., 20-21 

Bridges, Harry R., 129 /m., 151-52, 282 

Bridges, Henry Styles, 301 

Britton, Nan, 44, 50, 70 

Brookhart, Smith, 75 

Brookings Institute, 83 fn. 

Brooks, Carl A., 173 fn. 

Brown, E. F., 127 

Brown, I. C, 310 

Brown, William, 323 

Bruce, James, 87 

Brucker, Wilbur M., 206 

Brunet, Julio, 184 

B-36 bombers, 250 

Budenz, Louis F., 335, 338-39 

357 



Bttford (ship), 2-3, 15 

Bugas, John S., 185 

Bukowetsky, Alexander, 22-23 

Bullitt, William C, quoted, 261 

Bunting, Earl, 2S0 

Burch, Frank B., 220 

Burke, Frank, lo-i i 

Burke, Robert J., 289-90 

Burleson, Albert Sidney, 13 

Burlington, N. C, 295 

Burns, William J., 63, 68, 73-74, 75 fn. 

Business : armament contracts, 304 ; 
"boom" years, 92-93 ; business-as-usual 
policy, 229, 234 ; Coolidge era, 77-93 ; 
Far East, 246 ; Harding era, 47-48, 58 ; 
Hoover era, 103-05 ; labor espionage, 
141-57; New Deal, 121, 126, 129-30, 
163, 164; Red menace, 34-36; strike- 
breaking, 132-40 ; Truman era, 248-49 ; 
World War H, 222-ZA- See also Cartels 

Butler, Nicholas Murray, 43, 47 

Butler, Smedley Darlington, 196-204 
Butler System of Industrial Survey, 144 

Byrnes, James F. : Communists in film in- 
dustry, 265 ; Dulles, John Foster, 222 ; 
Negroes, quoted, 10, 306 ; postwar pol- 
icy, 245-46 

CIO See Congress of Industrial Organiza- 
tions 

Cahn, William, 35 

Cahn- Walter Co., 138 /n. 

Calhoun, Louisiana, 323 

Calhoun Falls, South Carolina, 325 

California: anti-labor violence, 148, 156; 
civil liberties, 283 ; naval oil reserves, 
59-63 ; Negroes, 309 ; strikebreaking, 
149-50 ; tidelands oil reserves, fn., 255- 
56 ; Wallace support, 291. See also San 
Francisco 

Camden, New Jersey, 113 

Cameron, William J., 170 

Campbell Soup Co., 141 

Cannon, Clarence, 302 

Capitalism, 8-9, 83 

Capone, Al, 85 

Carey, Philip, 214 

Carlson, Evans F., quoted, 328 

Carnegie Steel Co., 141, 146 

Carpenter, Don, 287 

Cartels : Dulles, John Foster, 222 ; Ford, 
Henry, 169 ; German, 227-2g, 234, 245 ; 
Harding administration, 48-49 ; World 
War II, 22,2, 234 

Carter, D. C., 325 

Carter, Sims, quoted, 226 

Castle, William R., 221 

Catholic Church : anti-Communist cru- 
sade, 330; KKK, 31; Washington, D. 
C, 312-13 

Caux, Len de, quoted, 167 

Cecil, John, 213 

Central Intelligence Agency Act, 301 

Chafee, Zechariah, Jr., 28, 269, 333, 336 

Chambers, Whittaker, 299-300 

Chambrun, Count Rene de, 222 

Chaplin, Charlie, z^ 

358 



Charleston, South Carolina, 288-89 

Charlotte, N. C, 296 

Chase, Stuart, quoted, 82 

Chase National Bank, 87-88, 90, 194 

Chase Securities Corporation, 87, go 

Cheney, Mildred, 289 

Chenot, Judge E., 210 

Cherep - Spirodovitch, Major-Gentral 
Count Z., 170 

Chester, Colby M., 193 

Chevrolet Motor Co., 146 

Cheyenne, Wyoming, 113 /n. 

Chiang Kai-shek, Generalissimo, 246^ 
247 fn. 

Chicago, Illinois: Bonus Marchers, 113; 
depression, 109; German-American 
Bund, 192; Negroes, 310, 311; public 
and private meetings, raids on, 287 ; 
race riots (1919), 9; Republican Na- 
tional Convention (1920), 42-44, 46; 
Special Conference Committee, 163. See 
also Republic Steel plant 

Chicago & Eastern Illinois Railroad Co., 
146 

Chicago Tribune, 146 

Chilean bond issue, 88 

China : civil war, 247 ; revolution, 243,. 
301 ; U. S. interference, 246-47 

Ching, Cyrus S., 162, 165 

Chosen, Leonard, 293 

Christian Front, 216 

Christian Science Monitor, 346 

Chrysler Corp., 141, 157 

Churchill, Winston : Bolshevism, menace 
of, 244 ; Fulton, Mo., speech, 244 ; 
Paris Peace Conference, 4 ; Russia, in- 
tervention in, quoted, 6 fn. ; Soviet war 
effort, 238 

Ciano, Count Galeazzo, 218 

Civil liberties, 37, 267-77, 281-85 

Civil Liberties Union, 204 

Civil Rights Congress, 342 

Clark, D. Worth, 219 

Clark, Robert Sterling, 199, 200, 204 

Qark, Tom C. (Attorney General) : anti- 
Communist menace, 330 ; arrests, 282 ; 
Freedom Train, 306 ; loyalty order, 270- 
71 ; Nuremburg trials information, 257, 
258, 259 ; subversive lists, 270-71, 342 ; 
Un-American Activities Committee, 265 

Clemenceau, Georges, 4-5 

Clemm, Werner C. von, 220 

Cleveland, Ohio: Bonus Marchers, 
11$ fn.; Progressive Party, 294; Spe- 
cial Conference Committee, 163 

Closed shop, 8, 279, 280 

Coal industry, strike (1919), 9 

Cochran, John J., 215 

Cochran, Thomas, 80 

Coffee, John M., 223 

Cohen, Joseph, 136 

Coke, Sir Edward, quoted, 223 

Coleman, Silas, 208-09 

Colescott, James, 217 

Collective bargaining, 128, 129, 131, 144- 
45 



Colorado: Ku Klux Klan, 31; Negroes, 

309 

Columbia, Tennessee, 315-20 

Columbus, Ohio, 287-88 

Commerce Department, 165 

Committee for Industrial Organization, 
129 

Communist Manifesto, 13, 329 

Communist party : China, 247 fn.; Colum- 
bus, Ohio, 287-8S ; Depression, 1 1 1-12 ; 
Fascism, 191 ; fear of, 328-48; forma- 
tion, II fn.; Foster, William Z., gfn.; 
KKK, 31 ; LaFollette, Senator, 78 /w.; 
loyalty tests, 271 fn.; National Com- 
mittee, trial (1949), 332-42 ; New York 
state, 289-90 ; Palmer raids, see that 
heading ; political opposition, 37 ; raids, 
10-23, 34, 281 ; strength (c. 1919), 34; 
Un-American Activities Committee, 
260, 261 ; World War II, 236-37 

Company unions, 143-44, 185 

Concentration camps, 229, 242-43 

Conference for Progressive Political Ac- 
tion, 78 

Congress (U. S.), rgth, 260; 80th, 280; 
alien and sedition bills, 236 ; anti-labor 
bills, 279; fifth column activities, 211- 
17, 219; Un-American Activities Com- 
mittee, 260 

Congress of Industrial Organizations : 
AF of L, 129; formation, 129; labor 
spies, 144; membership, 152, 167; op- 
position methods, 152-54; Republic 
Steel, 157-61 ; Rubber Workers Union, 
is6.See also United Automobile Work- 
ers Union 

Congressional Record, 219, 233 

Connally, Tom, 257 fn. 

Consolidated Gas Co. of New York, 141 

Consolidated Vultee Aircraft Corp., 250 
fn.,2S4 

Constitutional Educational League, 166 

Continental Trading Company, 72-73 fn. 

Coolidge, Calvin, and his administration, 
77-102; Daugherty, H. M., 74, 79 fn.; 
foreign policy, 80-81 ; Harding's death, 
69 ; Republican National Convention 
(1928), 103 ; vice-presidency, 44; Wall 
Street, 104 

Cooper, Courtney Ryley, quoted, 127 

Copland, Aaron, 305 

Coplon, Judith, 300 fn. 

Corporations Auxiliary Company, 141-44, 
214 

Coughlin, Father Charles E., 184, 185, 216 

Couzens, James, 22 

Cowdrick, Edward S., 161-67 

Cox, Charles F., 156 

Cox, James M., 46 fn. 

Craige, John, 136-37 

Crain, Thomas, 84 

Cramer, Anthony, 335 fn. 

Cramer, Charles F., 56, 71 

Crawford, Ike, 325 

Credit buying. See Installment buying 

Crime, 84, 127. See also Bootlegging; 
Gangsters ; Prostitution 

Crime Laboratory, 128 fn. 



Criminal syndicalist laws, 30 

Crockett, George, 335 

Croix de Feu movement, 200 

Crooker, George U., 97 

Crow, William J,, 332 

Crowley, Leo T., 233 

Crowther, Samuel : business conditions, 

quoted, 83 ; Ford, Henry, quoted, 168 
Crusaders, 166 
Cuba : bond issue, 87-88 ; strikebreaking, 

147 
Cultural and Scientific Conference for 

World Peace, New York City, 305 
Cummings, Homer S., 210 
Cummings, William, 336 
Cunningham, James D., 230 
Curran, Joseph, 288-89 
Curtis Publishing Co., 141 

Daily Worker, 335 

Dallas, Texas, Ford assembly plant, 177- 

83 

Daniell, Raymond, 245 

Darre, R. Walter, quoted, 190 

Daugherty, Harry Micajah : Attorney 
General, 46, 51, 63-68, 71, 74, 76; Re- 
publican National Convention (1920), 
44-48; Schriftgeisser, Karl, quoted, 76 

Davidson, Bill, 282 

Davidson, Joe, 290 

Davies, Elmer D., 320 

Davies, Ralph K., 233 

Davis, Benjamin J., 289, 333 

Davis, Charles G., 293 

Davis, Donald D., 233 

Davis, Elmer, 284 

Davis, Harvey, 208 

Davis, John R., 152 /n. 

Davis, John W., 77, 193, 202 

Dawes, Charles G., 81 fn. 

Dawes Plan (1924), 81 fn., 222 

Day, Stephen A., 218-20 

De Lacey, Hugh, 246-47 

De Louis, Baron, 178-79 

Dean, Dayton, 206-08 

Dearborn, Michigan : fascist groups, 185 ; 
Ford River Rouge plant, 168-70, 172- 
76, 183-89 ; union leaflet distribution, 
176 ; vice ring, 173 fn. 

Dearborn Independent, 31-32 

Deatherage, George, 211 

Debs, Eugene V., 35 

Declaration of Independence, quoted, 306 

Deer Island, 17, 22,, 25 

Defense program (U. S.), 230, 231, 2^2 

Delaware, 309 

Democracy, maintenance of, xii, 234, 349- 

50 
Democratic Convention (1920), 46 /«. 
Democratic Convention (1924), 77-78 
Democratic National Convention (1944), 

252 
Dempsey, John J., 215 
Denby, Edwin N., 60 
Denham, Robert, 182 
Dennett, Prescott, 219 
Dennis, Eugene, 262 fn., 333, 341 
Denny, Ludwell, quoted, 82 

359 



Denton, C. Hayes, 316 
Deportation: Alien Act (1917), 15-16; 
Bridges, Harry, fn. 151-52; Soviet 
agents (1919), 2-3. 25, 38 
Depression (Great) : causes, 39, 92-93, 

349; Hoover, H. C, 105-17 
Detroit, Mich.: Black Legion, 205-10 ; 
fascist groups, 185; murders, 208-09; 
Negroes, 313, 325; Progressive Party, 
294 ; public and private meetings, raids 
on, 287 ; Red raids, 14, 22 ; strikebreak- 
ing equipment, 149; Wallace support, 
293 
Deutsch, Albert, 262 fn. 
Dewey, Thomas E.. 249, 296, 344 
Diamond Match Company, 141 
Dickinson, Jacob, 317 
Dickstein, Samuel, 216 
Dictatorship, economic and political, 196 
Dies, Martin, 212-13, 216 217 fn., 260, 

265 
Dilling, Elizabeth, 148-49 
Dillon. Read & Company, 81, 249, 250 /«. 
Diphenylaminechlorarsine (DM), 148 
Discrimination : employment, 308 ; Negro, 

314-15. See also Segregation 
Displaced persons, 243 
District of Columbia, See Washington, 

D. C. 
Dixie Greyhound Lines, 141 
Dixon, Thomas, 45 
Dmytryk, Edward, 263 fn. 
Doheny, Edward L. : indictment, 73 ; naval 
oil reserves, 60-62, 72-74 ; Republican 
National Convention, 42 
Doheny, Edward L., Jr., 60, 71 fn., 73 
Donovan, William J., fn. 79-80 
"Don't Starve — Fight!" (slogan), 112 
Dope peddling, 84 
Douglas, Lewis W., 250 
Downes, Olin. 305 
Doyle, Charles A., 282 
Doyle, William, 197-99 
Draper, William P., 81 
Draper. William H., 251 
Dreiser, Theodore : Depression, quoted, 

108; New Deal, quoted, 131 
Du Bois, William Edward Burghardt, 9, 

291 fn., 305 
du Pont, Irenee, 193, 202 
du Pont, Lammot, 129, 162, 202, 230 
du Pont, Pierre S., 193, 195 fn., 202 
Duckstein, Mrs. W. O., 75 fn. 
Duggan, Laurence, 285 fn. 
Dulles, Allen, 227 

Dulles, John Foster : appeasement, ex- 
ponent of, 222 ; Dawes and Young 
plans, 81 fn. ; human rights, 325 ; West- 
rick, Dr. Gerhardt, quoted, 22$ 
Dworshak, Henry, 219 



Earle, George H., quoted, 210-11 

Earle, Willie. 320 

Earle, Ark., 155 

East St. Louis, Illinois, 11^ fn. 

Eaton, J. Frank, 289 

Education, 308, 309, 314 fn. 



Eggleston, George T., 221 fn. 

Eichelberger, Robert L., 237 fn. 

Einstein, Albert, 100, 305 

Eisenhower, Dwight, 236, 264 

Eisler, Gerhart, 299 

Elk Hills, oil reserve, 60-62, 67, 72 

Ellis, Wade H., 84 

Ellis Island, 2, 23 

Eluard, Paul, 305 

Emanuel, Victor, 254 

Empey, Arthur Guy, quoted, 19 

Employment discrimination, 308 

Enright, Richard E., quoted, 84 

Epps, Reverend A. C, 322 

Erie Railroad, 134 

Espionage. See Labor espionage 

European Recovery Program, fn 300-01 

Evansville, Indiana, 294 

Everhart, M. T., 61 

Excess Profits Tax (1917), 48 

Executive Order 9835, 267-77 

FBI See Federal Bureau of Investigation 

Faber, Eberhard, 225 

Fadayeev, Alexander, 305 

"Fair Deal," 296-97 

Fair Employment Practice Committee, 236 

Fall, Albert Bacon : Harding Cabinet, 46 ; 
indictment, 73 ; naval oil reserves, 60- 
63, 72-74; resignation, 62-63, 67; 
Schriftgeisser, Karl, quoted, 76 ; Wil- 
son, Woodrow, 7 

Families, incomes (1929), fn. 83-84 

Farmer Labor Party, 78 

Fascism, 190-222; Argentina, 244; con- 
temporary, 284 ; economic, 234 ; Ford 
Motor Company, 184; organizations, 
166, 190-91, 270-71 ; Peekskill, N. Y,, 
346; postwar reconversion, 250-60; 
Roosevelt, F. D., definition, 234 ; trea- 
son against the people, xi, 349 ; World 
War II, 243 

Fear : Roosevelt era, 285 ; Truman era, 
284, 287 

Federal Budget, 84 

Federal Bureau of Investigation : anti- 
Communist pronouncements, 330 ; Bug- 
as, John S., 185 ; fascist fifth columnists, 
191, 192/M. ; formation, 10 fn. ; loyalty 
order, 276 ; Roosevelt (F. D.) adminis- 
tration, 127 ; subversive activities, 348 ; 
Un-American Activities Committee, 
265. See also J. Edgar Hoover 

Federal Laboratories, Inc., 138 fn., 145- 

Federal Sedition Act, 236 

Felder, Thomas B., 71 

"Fighting Quaker." See Palmer, A. Mif^ 

chell 
"Fireside Chats," 125, 131 
Firestone Tire and Rubber Co., 141 
Fish, Hamilton, 112 fn., 218-20 
Fisher Body factory, Lansing, Michigan, 

144 
Fiske, CHiarles B., quoted, 158-59 
Fitzgerald, Albert J., 291 fn. 
Flanders Hall. Inc., 217, 218 
Fleming, William, 315-16 



360 



Flint, Michigan, 144 

Florida : Negroes, 309 ; Progressive Party, 

294 

"Flying saucers," 297-98 

Flynn, Elizabeth Gurley, 98 

Flynn, William James, 12 

Food costs, 279 

Forbes. Charles R., 53-58, 67, 7^ 

Ford, Edsel, 225 

Ford, Henry : America First Committee 
220 ; anti-semitism, 32, 184-85 ; Cool- 
idge, Calvin, quoted, 78 ; Nazis, support 
of, 184; Westrick, Dr. Gerhardt, 225 

Ford Detective Service, 170 

Ford Motor Company, 167, 168-89; Al- 
bert, Dr. Heinrich, 224 -fn. criminals 
in employ of, 174-76 ; Dallas plant, 177- 
83 ; employees, 169 ; income, 169 ; mur- 
ders associated with, 207 ; National 
Labor Relations Board, 170, 181-83, 
187-88; strike, 188-89 

Foreign policy. See Coolidge ; Harding; 
Roosevelt ; Truman 

Foreign securities, 85, 88 

Forrestal, James V. : atomic warfare, 303 ; 
defense program, 22,2 ; Dillon, Read & 
Co., 22,2, fn. 249-50; Secretary of the 
Navy, 301; suicide, 328-29; Truman 
administration, 249, 301 

Fort Wayne army barracks, 22 

Fosdick, Harry Emerson, 312 /n. 

Foster, Robert J.. 142 

Foster, William Z., 9, 38, 78 fn., 333 

Foster Industrial and Detective Bureau, 
142 

France, unemployment, 300 

Francqui, Emile, 105 fn. 

Frankensteen, Richard, 176 

Frankfurter, Felix : denounced as a 'Red', 
31; Justice Department, 27-28; Sacco 
and Vanzetti case, quoted, 93-95, 97, 99 

Franking privilege, misuse of, 219 

Frazer, Joseph W., 300 

Freedom Train project, 306-07 

French, Paul Comly, 201-03 

"Frenchy" Joe, 136-37 

Frick (H. C.) Coal & Coke Co., 141 

Friends of New Germany, 184 

Frigidaire Corp., 141 

Fruehauf Trailer Co., 143 

Fuller, Allan T., 97, loi 

Funk, Walther, 227 

Gallup poll, 298-300 

Galsworthy, John, 100 

Gambling, 84 

Gangsters and racketeers, 84-85. See also 

Bootlegging 
Gary, Elbert Henry : labor unions, quoted, 

8 ; Republican National Convention 

(1920), 42 
Gas-chamber electrical equipment, 229 
Gates, John, 333, 340 
Gauvreau, Emile, 1 17-18 
General Electric Co., 8i, 163 
General Motors : American Liberty 

League, 193-94; cartels, 229; Federal 

Laboratories, Inc., 146 ; Hitler regime, 



support of, 226; labor espionage, 141, 
142, 144 ; strike (1936), 157 ; war agen- 
cies, 232 ; Westrick, Gerhardt, 225 

George, Walter F., 311 

Georgia: Ku Klux Klan, 31; Negroes, 
309, 321-25 

Germ an- American Bund, 184, 191, 192 fn,, 
216 

Germany: American zone, 245; British 
zone, 245 ; postwar, 245-46 ; rearma- 
ment, 81 ; unemployment, 301. See also 
Hitler ; Nazi regime 

Gernaey, William T., 214 

Gerould, Katherine Fullerton, quoted, 32 

Gibbs, Sir Philip, quoted, 4 

Gifford, Walter S., 162, 233 

Gilbert, Henry, 323 

Girdler, Tom, 157 

Gladstein, Richard, 339 

Glassford, Pelham, 113, 114, 115 

Goebbels, Paul Joseph, 221 

Gold, Michael quoted, 100-01 

Gold standard, 198, 199, 200 

Golden, James, 108 

Goldman, Robert, 276 

Goodridge, Carlos E., 96 

Goodyear Tire and Rubber Co., 146, 156, 
163, 165-66, 194, 229 

Gorchoff, George, 275-?^ 

Gordon, William, 319 

Gorer, Geoffrey, 330 

Government employees : fear, 284 ; Ne- 
groes 314-15. See also Loyalty order 

Grace, Eugene G., 162 

Graham, Wallace H., 253 

Grant, Robert, loi fn. 

Great Britain : American influence, 82 ; 
oil interests, 248 ; Roosevelt's death, 
240 ; United Nations, 244-45 

Greece, loan to, 247-48 

Green, Gilbert, 333, 340 

Greenville, South Carolina, 320 

Grieg, George, 149 

Griffin, W. A., 165 

Griswold, Ernest N., 269 

Gubitchev, Valentin, 300 fn. 

Guempelheim, Leonard, 178-79 

Gumlach, E. T., 25 

Gutride, Mrs. Minnie, 285 fn. 

Hacker, Louis M., quoted, 121 

Hadamowski, Eugen, 342 

Hall, Gus, 333, 340 

Halpern, Alvin L, 214 

Halsey, Stewart & Company, 91 

Hamilton, Georgia, 323 

Hannegan, Robert, 255 

Harasiades, Peter, 282 

Hard, Mrs. William, quoted, 27 

Harding, Florence (Mrs. Warren Gamal- 
iel), 50, 65, 70, 71 /«• 

Harding, Warren Gamaliel, and his admin- 
istration, 49-76 ; Bible, 49 ; Boston 
speech, 32 ; Cabinet, 46-47 ; carousals, 
50-52; daughter, 44, 50 ; death, 69-71 ; 
Debs, Eugene V., 35 fn.; domestic pol- 
icy, 47-48 ; Forbes, Charles R., 53*58 ; 
foreign policy, 48-49 ; H-street rendez- 

361 



Harding, Warren Gamaliel (cont.) 

vous party, 51 ; loot, 58 ; mistress, 50; 
Negro blood, 43 ; nomination for presi- 
dency, 43-46 ; personal qualities and ap- 
pearance, 44-45, 69 ; poker, 53 ; Sacco- 
Vanzetti case, 93 ; Senate speeches, 45 ; 
sense of inadequacy, 47 ; Teapot Dome, 
59-60 

Hardj'man, Hugh, 286-87 

Hargrave, Thomas H., 251 

Harlem, population density, 310 

Harriman, W, Averell, 81 fn., 250 

Harris, Herbert, quoted, 194 

Harris, James, 295 

Harris, Norval, 336 

Harris, Sam, 256-57 

Harrison, William H., 232 

Hart, Edward J., 260 fn. 

Hartford, Conn., jail, 21 

Hartrich, Edwin, 246 

Harvard Law School, 27-28 

Harvey, George Brinton McClellan, 43 

Harwood, P. B., 303 fn. 

Hasbrouck, Jan, 281 

Hashmall, Frank, 287-88 

Hauck, Siegfried, 218 

Havana- American Steamship Line, 134 

Hays, Arthur Garfield, 334 

Hays, Will, 43, 46 

Haywood, Harry, quoted, 307-08 

Health, 279 

Hellman, Lillian, 305 

Henderson Charles B., 223 

Henderson, Ralph, 248 

Herald (publication), 220, 221 fn. 

Herbert, Thomas J., 288 

Hickey, Edward ]., 21 

Hill, Arthur M., 250 

Hill, George, 218-19 

Hill, "Sailor" Barto, 177 

Himmler, Heinrich, J. Edgar Hoover com- 
pared with, 19 

Hindenburg, Paul von, 121 

Hiss. Alger, 299-300 fn. 

Hitchcock, Gilbert Monell, 7 

Hitler, Adolf : Act for the Organization 
of National Labor, 166 ; American sup- 
port, 81, 114 fn., 349 ; Ford, Henry 184 ; 
German American Bund, 192 ; L G., 
Farben, 220, 228, 229 ; start, 287 ; su- 
preme power seizure, 121 

Hoffman, Clare E., 219, 220 

Holbrook, Northrop, 162 

Holifield, Chet, 287 

Holland-American Line, 134 

Hollywood: anti-Communist films, 330- 
31; fear, 284; Communism, 264-65; 
subversive activities, 262-64 

Holt, Rush D., 218, 219 

Hoover, Herbert Clark, and his adminis- 
tration, 103-17 ; America First Commit- 
tee, 221; A. R. A., 104, 105 /n.; Bol- 
shevism, quoted, 5, 6 fn.; Bonus March- 
ers, 1 1 3-1 7 ; business, 80 ; Butler, Smed- 
ley, court martial, 197 ; Dawes and 
Young plans, Si fn. ; depression, 109- 
II ; Director of the U. S. Food Admin- 
istration, 105/M.; Fall, Albert B., 

362 



quoted, 62-63 ; food cost increase, 279 ; 
Harding Cabinet, 46 ; inaugural ad- 
dress, quoted, 105 ; income, 104; Lend- 
lease, 221 

Hoover, Irwin H. ("Ike"), 103 

Hoover, John Edgar : anti-radical opera- 
tions, 36, 79-80 /n.; Communism, 79- 
80 fn. ; Coolidge regime, 79 - 80 fn.; 
Harding regime, 75 ; Martens, L. C. 
A.K., deportation, 30 fn. ; national fame, 
127 ; Palmer "anti radical" raids, 1 1-12, 
13, 16, 18, 19; "proscribed lists," 19; 
publicity hound, 127-28 ; Sacco and 
Vanzetti case, 94; spies, 281-82; sub- 
versive activities, 330, 348 ; Un-Ameri- 
can Activities Committee, 265 

"Hoovervilles," 109 

Hopkins, Harry L., 125, 221 

Hospitals, 309 

Houghton, Dr. Harris, 170 

House, Edward Mandell, quoted, 4 

Housing shortage, 279 

Houston, Charles H., 334 

Howard, Charles P., 291 fn. 

Howley, Frank, 331 

H-Street House (No. 1509), Washington, 
D.C., 51-52 

Huberman, Leo, 142 

Hughes, Charles Evans, quoted, 278 

Hull, Cordell, 238 

Human relationships, science of, 239 

Hummel, Edward, 294 

Hunger, Harry Hopkins, quoted, 125 

Hunger Marches, 111-17 

Hunt, James V., 252 

Hunt, R. C, 320 

Hurkett, Oliver, 209 

Hurley, Patrick J., 113 

Husbands, Sam, H., 233 

I G Farbenindustrie,. 220, 228, 229, 245, 
250 

IWW See Industrial Workers of the 
World 

Ickes, Harold L. : "Brain Trust," 124; 
Clark, Tom, quoted, 257 ; fascism, 
quoted, 192-93 ; Pauley, Ed, 255-56 

Idaho, 309 

Illinois: Black Legion, 166; Progressive 
party, 294 

Immigration Bureau, 16 

Incomes, Coolidge era, 83 fn. 

Indiana: Black Legion, 166, 204; Ku Klux 
Klan, 31 ; murder of an alien, 31 ; Ne- 
groes, 309 

Industrial Workers of the World, 35 fn. 

Ingalls, Laura, 220 

Ingram. Rosa Lee, 324 

Innes, Peter J., 152 fn, 214 

Installment buying, 82 

Institute of Economic Research, 91 

Insull, Samuel. 91 

Interborough Rapid Transit of New York 
City, 134 

Interchurch World Movement Commis- 
sion of Inquiry, 8, 37 

Inter-Continental Defense Plan to Con- 
gress, 300 



Interior Department (U. S.), naval oil 
reserves, 59-63 

International Harvester Company, 163 

International Longshoremen's and Ware- 
housemen's Union, 151 

International Shoe Co.. 141 

Interstate Commerce Commission, 80 

Investment banking, 88 

"Iron curtain," 242 

Isaacson, Leo, 291 

Isolationism, 48, 220-22 

Italy, 81, 301. See also Mussolini 

Janney, Russell, 340-41 

Japan, 121, 246 

Jeffers, William M., 233 

Jesus, the founder of modern business, 

82-83 
Jews : Black Legion, 205 ; Communists, 

261 ; Harding era, attitude toward, 54; 
KKK, 31 ; Lindbergh, Charles, 220. 
See also Anti-Semitism 

"Jim Crowism," 308-10, 314 

Johnson, Albert, 25 

Johnson, E. C, 219 

Johnson, Hiram, 87 

Johnson, Hugh S., 124 

Johnson, James, 319 

Johnson, Louis, 202, 250 fn., 302 

Johnson, Versie, 323 

Joint Anti-Fascist Refugee Committee, 

262 fn. 

Jones, Claudia, 282 

Jones, Lloyd Curtis, ^^Z 

Jones and Laughlin Steel Corp., 146 

Jonkman, Bartel, 219 

Josephson, Leon, 262 fn. 

Joughin, G. Louis, 96, loi 

Justice Department (U.S.) : agents-pro- 
vocateurs, II, 20, 28; anti-Communist 
pronouncements, 330 ; Black Legion, 
209-10; Bolshevik suspects, 38; 
Bridges, Harry, 152, 282; Bureau of 
Investigation, 10 ; cartel agreements, 
228 ; Clark, Tom C., 257 ; "communist" 
and "radical aliens" raids, 10-23 ; fas- 
cist fifth columnists, 185, 191, 192 /n.; 
foreign-born, attacks on, 282 ; labor 
movement, campaign against, 38 ; Ne- 
groes, 37, 315 ; Palmer, 24-29, 36, 282 ; 
Rogge, O. John, 256-60 ; Sacco and 
Vanzetti case, 94 ; Soviet agents, depor- 
tation (1919), z-'z ; Stone, H. F., 79 fn.; 
strikes, 36 ; Un-American Activities 
Committee, 265 

KKK. See Ku Klux Klan 
Kane, Francis Fisher, 28, 286 
Kansas, 31 fn. 
Katz, Milton, 269 
Katzmann, Frederick G., 95, 96 
Keenan, Duran, 320 
Keitel, Wilhelm, 240 
Kelley, Cornelius F., 193 
Kelley, Michael, 93 
Kellogg Company, 141 
Kelly, George E., 324 
Kelvinator Corp., 141 



Kendrick, Benjamin B., quoted, 121 

Kent, Atwater, 195 

Kent, Morton E., 285 fn. 

Kent, Rockwell, 132, 291 fn., 293 

Kentucky, 309, 324 

Kester, Howard, 155 

Ketterson, Tom, 318 

Khaki Shirts, 114 /n. 

Kid Steinie, 136 

Kidnappings, 127 

Kilgore, Harley M., 245 

Kilgore Committee, 226, 229 

Killgallen, J., 173 

Kincaid, Robert, 283 

King, Ernest T., 22,3-3^ 

King, John T., 67, 71 fn. 

Kiplinger's Washington Newsletter, 129 

Kirby, John Henry, 195, 211 

Knagge, Daniel, 155 

Knowles, Harper L., 152 fn. 

Knudsen, William S. : American Liberty 
League, 193; Anderson, H. W., 166; 
Hitler's Germany, quoted, 196; War 
Production Board, 22,2 

Knutson, Harold, 219 

Konvitz, Milton R., 310 fn. 

Koos, John, 184-85, 214 

Krebs, Richard, 214 

Kroger, Bernard, 196 

K-Street house (No. 1625), 50-51 

Ku Klux Klan, 31 ; American Liberty 
League, 195 ; fascism, 191 ; Michigan, 
210; Negroes, 326; Un-American Ac- 
tivities Committee, 217; World War I 
(post), growth, 31 

Kuhn, Fritz, 184, 216 

Kuhn, Loeb & Company, 88 

Labor : blacklists, 141 ; Roosevelt, F. D., 
131 ; World War I (post), 8-9, 34-38. 
See also Labor espionage ; Labor 
unions ; Strikebreaking ; Strikes 

Labor Department (U.S.): Bridges, 
Harry, 151; deportation statute, 16; 
Post, Louis Freeland, 24-27, 29 ; Red 
raids, 20, 24-29 

Labor espionage, 141-57 ; Black Legion, 
204-1 1 ; Ford Motor Company, 171. See 
also Strikebreaking 

Labor Management Relations Act, 279-81 

Labor unions : American Liberty League, 
194-95 ; Black Legion, 204, 206, 207, 
208; company unions, 143-44; Cuba, 
87 ; du Pont, Lammot, 230 ; Ford, 
Henry, 168, 171-73, 176-77, 181 ; lead- 
ership, 38; membership (1940-1945), 
2.36; Negroes, 308; New Deal, 129. 
167; Roosevelt, F. D., 129; Special 
Conference Committee, 165-67 ; Taft- 
Hartley Law, 279-81 ; Wartime wages, 
8; World War I (post), 8-9, 35-36 

LaCrescenta Democratic Club, 286-87 

LaFollette, Robert M. : Communist Party, 
78 fn. ; "economic liberty," 123; Fed- 
eral relief, no ; Means, Gaston B., 75 ; 
naval oil reserves, 62 ; presidential can- 
didate (1924), 78-79; Republic Steel 
Strike (1937), 160-61 

3^3 



LaFollette Committee, 144-45 

LaGuardia, Fiorella, 91 

Lake Erie Chemical Company, 145 fn. 

LaMare, Chet, 173 

Lamont, Thomas W., 42, 106 

Landis, James M., 151-52 /n. 

Landon, Alfred, 249 

Lane, Rose Wilder, quoted, 105 fn. 

Langtry, Albert P., qtioted, 18-19 

Lardner, Ring, Jr., 263 fn. 

Larkin, J. M., 162-64 

Laval, Pierre, 222 

Lawrence, David, quoted, 304 

Lawson, John Howard, 262-63 fn. 

Layne, Meade, 297 

Lazarus, Emma, quoted, 2 

Leachman, Neth L,, 182 

League of Nations, 7, 10 

Leathers, Annie Mae, 295 

Lee, Algernon, 14/71. 

Left-Wing. See Communist Party ; Social- 
ist Party 

Leguia, Augusto, 85-87 

Leguia, Juan, 85-87 

Leighton, George R., 128 

LeMaire, Francis, 323 

Lend-Lease, 218, 219, 221, 231 

Leonard, Jonathan Norton, quoted, 108 

Lerner, Max, 282 

Lettworth, Louisiana, 323 

Levi, Carlo, 305 

Levinson, Edward, 135, 137 

Lewis, Archie C, 182 

Lewis, John L., 9, 128-29 

Lewis, Sinclair, Main Street, 31 

Libbey-Owens Ford Glass Co., 141 

Liberal protest, 37 

Liebold, Ernest Gustav, 170 

Lincoln, Alexander, 196 

Lindbergh, Charles E., 75, 220, 221 

Lion, David M., 90 

Lippmann, Walter : "criminal under- 
world," quoted, 85 ; Harding foreign 
policy, quoted, 48 ; Roosevelt, F. D., 
quoted, 122-22,, 126 

Lisman, Frederick J., 86, 87 

Lissner, Will, 205 

Little Green House, Washington, B.C., 
.50-51 

Living costs, 278 

Living standards, 35, 37, 83-84, 108, 132, 
279 

Livingston, Edward, quoted, 267 

Lloyd, Horatio, 195 

Lloyd George, David, 4-5 

Lodge, Henry Cabot, 6-7, 43 

London, Meyer, quoted, 24 

Longworth, Alice, quoted, 49-50 

Louisiana, zi fn., 309, 323; Ku KIux 
Klan, 31 fn. 

Louisville, Kentucky, 324 

Lovett, Robert A., 250 

Lovett, Robert Morss, 291 fn. 

Lowden, Frank O., 43 

Lowell, A. Lawrence, 10 1 

Lowell, James Russell, quoted, xii 

Lowell Committee. 10 1 

Lowry, Edward G., quoted, 7 

364 



Loyalty investigations, 283 

Loyalty Order, 267-77, 286 

Loyalty tests, 30-31 

Lucas, Scott W., 292 

Lundberg, Ferdinand : depressioHj cause 

of, quoted, 92 ; Hoover, H. C, qxioted, 

103 ; Republican National Convention, 

quoted, 43 
Lundeen, Ernest, 217-18 
Lusk Committee Investigating Seditious 

Activities, 30-31 
Lynchings, 34 
Lyons, Georgia, 325 

McAdoo, William G. : Harding's Senate 

speeches, quoted, 45 ; preferred lists, 92 
MacArthur, Douglas A., 115-16, 202 
Macauley, Alvan, 193 
McCabe, Thomas B., 251 
McColloch, Spencer R., 171, 173-74 
McCormack - Dickstein Congressional 

Committee, 202-04 
McCormick, Medill, 43 
McCormick, Paul J., 60-61 
McCormick, Robert R., 220 
McCoy, Kid, 174 
McCrea, Duncan, 210 
McCuiston, William C, 152 /n.^ 214 
MacDougall, Curtis D., 293 
McGohey, John, 336, 339 
McGraw, William, 257 
MacGuire, Gerald C, 197-204 
Machado, Gerardo, 87-88 
Machine guns, 138 fn., 145, 149 
McKeesport, Pennsylvania, 113 fn, 
McKellar, Kenneth D., 30 
McKittrick, Thomas H., 227 
McLean, Edward B., 51 
McLean, Mrs. Edward B., 75 
MacLeish, Archibald : Ford, Henry, 

quoted, 168 ; Roosevelt, F. D., 125 
McMahon, William J., 90 
McMahon Institute of Financial Research, 

90 
MacNair, Luther K., 293 
MacNider, Hanford, 202 
Macon, Georgia, 324 
McQuire, Ralph, 155 
Madeiros, Celestino, F., 98-99 
Magil, A. B., 204 
Magnesium, 228 
Magstadt, Francis W., 137 
Main Street, novel (S. Lewis), 31 
Maine, 31 fn. 
Mallard, Robert, 325 
Maloney, William P., 219 
Maltz, Albert, 262 fn. 
Mammoth Oil Company, 61-62 
Manchuria, 121 
Mandel, Jesse, 136 
Manilla. P. I., Roosevelt's death, 240 
Mann, Bennie, 139 
Mann, Herman, 282 
Mann, Thomas, 305 
Manning, William, quoted, 71 
Mannington, Howard. 50-51 
Manville Manufacturing Company, 145 fn. 
Maragon, John, 252 



Marcantonio, Vito, 296 

Marchuk, George, 207, 208 fn. 

Marine Corps, 308 

Mariniello, Juan, 305 

Marmon, Ira H., 209 

Marriage and intermarriage, 309 

Marshall, George, 262 fn. 

Marshall, George Catlett : democracy, 
quoted, Z22 ; diplomatic corps, 251 ; Sec- 
retary of State, 246 

Marshall. Mrs. Lupe, quoted, 159-60 

Marshall, Thomas Riley, 7 

Marshall Plan, 300, 301 

Martens, Ludwig, C.A.K., 29-30 /n. 

Martin, Fletcher, ^22 

Martin, Homer, 185-87 

Martin, Joseph E., 269 

Martin, William M., 251 

Marx, Harry Z., 206 

Marzani, Carl, 332 

Massachusetts, 17-19. See also Boston; 
Sacco-Vanzetti case 

Matson, Charles Oscar, 273-75 

Matthews, J. B., 213 

Matthews, Leslie, 346 

Matthiessen, Francis Otto, 285 fn. 

Means, Gaston B., 63 ; criminal operations, 
75 ; death, 71, 75 fn.; Harding admin- 
istration parties, 51-52; Harding's 
death, 70 ; Justice Department agent, 

63-65 

Medina, Harold R., 334-42 

Mellon, Andrew : Harding Cabinet, 46, 
48; social system, quoted, 107-08 

Mellon Group, 163 

Memorial Day massacre (1937), 157-61 

Memphis, Tennessee, 324-25 

Men of America, 166 

Mencken, H. L., quoted, 103 

Mental defectives, 309 

Merrick, Frank A., 162 

Merriweather, James, 155 

Merriweather, William, 176 

Merton, Richard, 66-67 

Methodist Church, 305 

Metropolitan Insurance Company, 82 

Mexico City, Roosevelt's death, 240 

Meyer, Agnes E., 313 

Meyer, Hershel, 304 

Michigan : anti-labor violence, 155 ; Black 
Legion, 166, 204-10 ; civil liberties, 283 ; 
Dearborn Independent, 31-32 ; Negroes, 
325 ; Parole Board, 174 ; unemployment, 
205. See also Dearborn ; Detroit 

Midland Steel Products Co., 141 

Midwest Refining Company, 72 

Military Assistance Program, 301 

Miller, Clyde R., 215, 293 

Miller, Tliomas W., 67, 71 fn., 76 

Milner, Laurence A., 152 fn. 

Milton, John, quoted, 267 

Minneapolis, Minnesota, 293 

Minor, Robert, 318 

Mississippi : anti-labor violence, 156 ; Ne- 
groes, 308-09, 323 

Missouri : ' Negroes, 309 ; Progressive 
Party, 294. See also Harry S. Truman 

Mitchell, Charles E., 89, 106 



Molotov, Vyacheslav, 244 

Monopolies, 78, 80. See also Cartels 

Montgomery, Ruth, 263 

Montgomery County, Georgia, 325 

Montgomery Ward & Co., 141, 193 

Mooney, James, 225, 232 

Mooney, James L., 161 

Mooney, Thomas J., 35 fn. 

Moore, Fred, 99 

Morais, Henry M., 35 

Moran, Bugs, 85 

Morelli gang, 99 

Morford, Richard, 262 fn. 

Morgan, Edmund M., 96, lOi 

Morgan Steamship Line, 134 

Morgenthau, Henry, Jr., 245-46 

Morrill, Clarence, 150 

Morrow, Dwight W., 80, quoted, 79 

Mortimer, Mr. and Mrs. Elias H., 54-56, 

58 
Moseley, Leon, 325 
Moulton, Arthur W., 305 
Mundt, Karl E., 269 
Mundt-Nixon Bill, 332 
Munson Steamship Line, 134 
Murder, commercial, 84 
Morgan, John Pierpont, and the Morgan 

interests, 42-43, 163 ; American Liberty 

League, 193 ; Bolshevik bomb plot, 13 ; 

Coolidge, 79 ; Davis, John W., 77 ; 

Dawes Plan, 81 fn.; "preferred lists," 

91-92 ; Young Plan, 81 fn. 
Murphy, Frank, 152 fn. 
Murphy, Grayson M. P., 198, 199 fn., 

201-03 
Murray, Philip, 157, 189, 3^2 fn. 
Muse, Vance, 195, 211 
Musek, Peter, 21-22 
Mussolini, Benito, 107, 114. fn., 199, 200, 

287 
Myers, Gustavus, quoted, 77 

NIRA See National Industrial Recovery 
Act 

NLRB See National Labor Relations 
Board 

Nakwhat, Simeon, 20-21 

Nanking, China, Roosevelt's death, 240 

National Association for the Advance- 
ment of Colored People, 309 

National Association of Manufacturers, 
165, 230, 249, 279 

National bank holiday, 125 

National Cash Register Co., 141 

National City Bank, 89 

National City Company, 89 

National Conference of Clergymen and 
Laymen (1936), 211-12 

National Economy Act, 125 

National Industrial Recovery Act, 124- 
25, 128, 130 

National Industrial Recovery Adminis- 
tration, 124 

National Labor Conference for Peace, 305 

National Labor Relations Act, 130-31. 
165, 279 

National Labor Relations Board, 170, 181- 
83, 187-8-8 

365 



National Police Academy, Washington, 
128 /n. 

National Security Act, 301 

National Socialist Party, 81. See also Hit- 
ler ; Nazi regime 

National Soldiers Home at Johnson City, 
Tennessee, 113 

National War Council, 301 

Naval Fuel Oil Board, 60 

Naval oil reserves, 58-63, 67, 72. See also 
Teapot Dome scandal 

Nazi regime: American agents, 211- 12, 
216-22, 257-60 ; Dillon, Read & Co., 
250; Ford, Henry, 184; loyalty law, 
270 ; overseas branch, 271 ; treason, xi ; 
veterans, 200. See also Cartels ; Ger- 
many ; Hitler 

Nebraska : closed shop, 279 ; Negroes, 
309 ; Progressive Party, 294 

Negroes : agitation and unrest, 37 ; Amer- 
ican Liberty League, 195 ; armed serv- 
ices, 308; Black Legion, 205, 208-09; 
Byrnes, James F., quoted, 10, 306; 
Catholic Church, 312-13 ; Chicago, 310 ; 
Coolidge era, 83/«.; discrimination, 
314-15; education, 314/n.; Ford Mo- 
tor Company, 188-89 ; infant mortality, 
311; Ku Klux Klan, 31; life expec- 
tancy, 311; living conditions, 310-11; 
Mississippi, 308-09 ; New Deal, 308, 
326; New York, 310; Palmer report, 
37 ; postwar conditions, 306-27 ; race 
riots (1919), 9-10; Rankin, John E., 
260-61; segregation, 311-15; South 
Carolina, 320-21 ; strikebreakers, 188- 
89; tuberculosis, 311, 313; unemploy- 
ment, 308 ; United Nations, 322 ; voting, 

310, 326; Washington, D. C., 311-15 
Nelson, Donald M., 233 

Nelson, Knute, 224 fn. 

Nevada, 309 

New, Robert, 288-89 

New Colossus. The, poem (Lazarus), 
quoted, 2 

New Deal, 120-31; business, 163, 164; 
Congress (80th), 280; discredit, at- 
tempts to, 194; "Jewish-Communist" 
menace, 196; labor, 156, 164, 195; Ne- 
groes, 308, 326 ; strikebreaking, 141 ; 
Truman, H. S., 249. See also Roose- 
velt, Franklin Delano 

New Jersey : Negroes, 324 ; Red raids 
(1920), 17 

New Orleans, Louisiana : Bonus March- 
ers, 113; public and private meetings, 
raids on, 287 

New York : Communist Party, 289 ; gang- 
sters, 84 ; German-American Bund, 
192; loyalty tests 30-31 ; Negroes, 310 

311, 323; public and private meetings, 
raids on, 287; Red raids (1920's), 14- 
15, 17 ; safety patrol contest winners, 
314; State Assembly, 30; unemploy- 
ment demonstration, 1 1 1 ; Wallace sup- 
port, 296 

New York Central Railroad, 134 

New York Edison Co., 141 

New World, The (publication), 213 

366 



Newark, New Jersey : Negroes, 311 ; pub- 
lic and private meetings, raids on, 287 , 
Red raids (191 9), 14 

Newspapers (American), attitude towards 
Red raids, 19 

Newton Steel Co., 155 

Nexo, Martin Andersen, 100 

Nickolas, Chester, 215 

Nicodemus, Charles W., 336 

Nikoloric, L. A., 268-69, 271-72 

Norris, George, 82, quoted, 127 

Norris, George William, 74 

North Atlantic Pact, 301, 302 

North Carolina: Negroes, 309, 322-23; 
Progressive Party Convention, 295 

Northern Baptist Convention, 305 

Northwestern University, 293 

Nowell, William O., 185, 335 

Nuremburg trials, 229, 257-58, 269-70 

Nye, Gerald P., 219, 220 

Nystrom, Paul Henry, 83-84 fn. 

Oakland Police Department, 150-51 

O'Banion, Dion, 84 

Obregon y Blanco, Jose Emilio, 87 

O'Brien, Robert Lincoln, quoted, 100 

Odium, Floyd, 250 

O'Donnell, James Francis (Two - Gun 
Jim), 136 

O'Donnell, John, 24S fn. 

O'Dwyer, William, 289 

Ohio: Black Legion, 166, 204; Bonus 
Marchers, 113; Communism, 288; Ku 
Klux Klan, 31 

"Ohio Gang," 45, 49, 50, 348 

Oil: California, 255-56 /w.; Far East, 
248. See also Naval oil reserves ; Tea- 
pot Dome scandal 

Oklahoma: Ku Klux Klan, 31 fn.; Ne- 
groes, 309 ; Progressive Party, 294 

"Old Counselor" (radio program), 91 

Oliver, James C, 219 

Olson, Culbert, 35 fn. 

O'Neill, James E., 58-62, 72 

Open shop, 8, 38, 165, 273 

Oregon : Ku Klux Klan, 3 1 fn. ; Negroes, 
309 

Organized workers, in the United States 
(1938), 167 

Orlando, Vittorio, 4 

Ornitz, Samuel, 263 fn. 

Osier, H. S., 72 

Oswiecim, concentration camp, 229 

Owen, Blaine, 153-54 

Oxnam, G. Bromley, 312 fn. 

Pacific R & H Chemical Corp., 146 

Page, Paul, 318 

Palmer, Albert Mitchell, and the Palmer 
raids, 12-23 ; Federal Sedition Act, 236 ; 
methods, 282 ; Negroes, 37 ; objectives, 
34-36, 38 ; Post, L. F., 24-27 ; Sacco- 
Vanzetti, 94 ; Senate Judiciary Commit- 
tee, 32 ; Soviet agents' deportation, 
2-3, 38 ; Stone, H. F,, 79. See also J. 
Edgar Hoover 

Pan-American Petroleum and Transport 
Company of California, 60 



Paris, France, Roosevelt's death, 240 

Paris Peace Conference (19 19), 3-6 

Parker, George, 293 

Parmenter, Frederick, 94, 95 

Passaic, New Jersey, 108 

Pauley, Edwin W., 254-56 

Pearson, Drew : cartel agreements, 228- 
29; Forrestal, James V., 328; Hoover, 
H. C, quoted, 104-05 

Pecan shellers strike (1937), 156 

Peekskill, New York, 342-47 

Pegler, Westbrook, 140 fn. 

Pelley, William Dudley, 211, 217 

Pendergast machine in Missouri, 251- 
52 fn. 

Pennsylvania, depression, 108-09 

Pennsylvania Greyhound Bus Co., 141 

Pennsylvania Railroad, 134, 141 

Perkins, Frances, 123-25 

Perlman, Selig : Red menace, quoted 35; 
World War I, labor concessions, 8 fn. 

Perry, "Fats," 177-182, 183 /«. 

Perry, Lord, 184 

Perryville, Maryland, supply depot, 57 

"Persuaders," 178 

Peruvian bonds, 86-87 

Pew, J. Howard, 196 

Philadelphia : Bonus Marchers, 113 ; Ger- 
man-American Bund, 192; Progressive 
Citizens of America, rally, 285-86 ; Pro- 
gressive Party, 294 ; public and private 
meetings, raids on, 287 ; Rapid Transit 
Company strike (1909), 137 fn.; Red 
raids (1919), 14 

Phillips, county, Arkansas, race riots 
(1919), 9-10 

Pickert, Heinrich, 206 

Pickett Act, 59 

Pidcock, Roy V., 209 

Pinchot, Am.os, no 

Pinkerton's National Detective Agency, 
141, 144 

Pirinsky, George, 282 

Pitak, John, 108 

Pitcairn, Raymond, 195 

Pittman, Willie, 323 

Pittsburgh, Pa. : Red raids, 37 ; tear gas, 
147 

Plekhanov, George, quoted, 120 

Plummer, A. Newton, 90-91 

Podolsky, Henry, 282 

Pomerantz, Abraham, 269-70, 290, 300 fn. 

Pontiac Motor Car Co., 146 

Poole, Charles, 206, 209 

Portland, Oregon, 112 

Post, Louis Freeland, 24-27, 29, 37 

Postal Telegraph-Cable Company, 134 

Potash, Irving, 282, 333 

Potsdam pact, 246 

Pound, Roscoe, 27 

Poverty: "Coolidge Prosperity," 83-84; 
Hoover era, 105. See also Depression; 
Hunger 

Prairie Oil and Gas Company, 58, 72 

Pratt, Herbert L., 193 

Prentiss, Mississippi, 323 

President's Daughter, The (Britton), 50 



Press (American), attitude toward Red 
raids, 19 

Pressed Car Steel Works, McKees Rocks, 
Pennsylvania, strike (1909), 134, 137 

Price, Roland T., 323 

Progressive Citizens of America rally 
(1947). 285-86 

Progressive Farmers' Household Union, 
Arkansas, 10 

Progressive movement, 37 

Progressive Party, 290-96 

Prohibition : Ford, Henry, 170 fn.; Hard- 
ing administration, 49; repeal, 170 fn. 

Prostitution, 49, 84 

Protocols of the Wise Men of Zion, The, 
32, 170 

Public charges, 84 fn. 

Pullman, Joe, 136 

Purple Gang, Detroit, 173 



Race riots, 9, 34 

Racketeers. See Gangsters 

Radical aliens. See Bolshevism ; Commu- 
nism 

Radio Corporation of America, 141 

Railroad Brotherhoods: labor spies, 144; 
leadership, 38-39 

Railroads: Bonus Marchers, 113; Inter- 
state Commerce Commission, 80 ; Ne- 
groes, 309 

Railway Audit and Inspection Company, 
141, 143 

Rainey, Harry, 289 

Ralston, Jackson H., 25 

Rankin, John E., 260-61, 269 

Rascob, John J., 92, 193, 195 

Reactionaries, 349 

Reader s Digest, 221 

Reading, Arthur K., 97 

Reconstruction Finance Corporation, 254 

Red Cross Mission to France and Italy, 
199 fn. 

Red Network (Dilling), 148-49 

Red raids. See Communist Party ; Palmer 
raids ; Un-American Activities Com- 
mittee 

Redin, Nicolai, 298 fn. 

Reed, Philip, 232 

Relief (Federal), no 

Religion and spiritual development : busi- 
nessman, 82 ; Coolidge, 49 ; Harding, 49 

Report on the Illegal Practices of the 
United States Department of Justice, 
38 

Republic Steel plant. South Chicago, strike 
(1937), 157-61 

Republican National Convention (1920), 
42-44 

Republican National Convention (1924), 
77-78 

Republican National Convention (1928), 
103 

Republican Party, 204, 211. See also Fas- 
cism 

Reynolds, Robert Rice, 219-20 

Ribbentrop, Joachim von, 218, 223 

Richardson, James P., 98 

367 



Rickard, Edgar, 92 

Rieber, Torkild, 224-25 

Right to organize and bargain collectively, 

128, 129, 131, 144-45 
Rimar, Ralph, 185-86, quoted, 172-73 
Ripley, Harry H., 96 
River Rouge plant at Dearborn, Michigan, 

168-70, 172-76. 183-89 
Roberts. Joe Nathan, 323 
Robertson. N. W., 285 
Robeson, Paul. 2qo, 342 #. 
Rochester, New York, 323 
Rockefeller. John D., 13 
Rockefeller Group, 163 
Rocky Mount, North Carolina, 323 
Rodriguez. Nicholas, 184 
Rogers, Will, 31 
Rogge, O. John : loyalty cases, 273-76 ; 

Nuremburg trials. 256-60 ; Progressive 

Party, 291 fn.; Trenton Negroes, 324; 

World Congress of Fighters for Peace, 

305 

Rolland, Romain, 100, 102 

Roosevelt, Anna Eleanor (Mrs. Franklin 
Delano), 110-11, 312 fn. 

Roosevelt, Franklin Delano : affection for, 
123-24; attacks on, 194, 196, 217, 218; 
Axis agents, quoted, 190 ; Congress mes- 
sage (1935), quoted, 130 ; Cuban people, 
88 ; death, 239-40, 268, 291 ; democracy, 
350, quoted, 120; Democratic nomina- 
tion for President on July 2, 1932, 
quoted, 120 ; economic power concentra- 
tion, quoted, 234; election (1932), 32; 
evaluation, 123; fascist organizations, 
191 ; fear, quoted, 122, 284-85 ; "fireside 
chats," 125, 131 ; "forgotten man" 
speech, 117; funeral train, 239, 255; 
Hoover, Herbert, opposition to, 221 ; 
human relationships, quoted, 238-39 ; 
inaugural address (1933), quoted, 122, 
125 ; Jefferson Day address, 239 ; Just- 
ice Department, 265 ; Lindbergh, C, 
220 ; loyalty tests, 27s ', New Deal, 120- 
31, 242-66; "normalcy" of the 1920's, 
quoted 241 ; personal qualities, 123 ; 
plot to overthrow, 200-01 ; presidential 
campaign (1936), 211; radio address 
(1942), quoted, 223 ; reactionary period, 
236 fn.; Republican administration 
quoted, 41 ; Southern vote, 195 ; Soviet 
Union, interest in, 1 17-18 ; term (first), 
125-31 ; Un-American Activities Com- 
mittee, 217 fn., 265-66; unforgettable 
phrases, 123 ; United Nations, quoted, 
223; vice-president, candidate (1920), 
46 fn.; winning of the peace, quoted, 
350; World War II, 231, 235, 245 /»., 
350 

Rosen, Samuel, 343 

Rosenman, Samuel, 125 

Ross, Joseph, 96 

Ross, Lawrence, 282 fn. 

Rothstein, Arnold, 85 

Rouse, Charlie, 208, 209 

Roush, Joseph M., 148-51 

Royall, Kenneth C, 251 

368 



Rubber, 228 

Runyon, W. Cleveland, 196 

Russia : American Red Cross Mission, 42 ; 

intervention, 5-6 fn., 37 ; revolution 

(191 7), 5-6. See also Union of Soviet 

Socialist Republics 
Russian People's House, New York City, 

raid (1919), 14-15 
Rutland, Rudolf F., 177 
Ryles, Vaughn, 155 

Sacco, Nicola, 32, 93 

Sacco-Vanzetti case, 93-102 

Sacco-Vanzetti Defense Committee, 97-98 

Sacher, Harry, 338 fn. 

Sage, Parker, 185 /n. 

St. Clair, Richard A., 1^2 fn. 

St. Louis, Missouri, 293 

Salsedo, Andrea, 23, 94 

Saltzman, Charles E., 250 

San Antonio, Texas, 156 

San Diego, California, shipping strike 
(1934), 129 . , , . 

San Francisco, California: bombing 
(19 1 6), 35 /»•; shipping strike (1934). 
129, 146-47, 150-51 

San Francisco Conference, 222, 244 

Sandburg, Carl, quoted, xii 

Sanford, Raymond P., 176-77 

Sardis, Georgia, 323 

Sawyer, Charles E., 70, 71 fn. 

Schacht, Hjalmar, 81 fn. 

Schmalhausen, Samuel D., quoted, 278 

Schmitz, Hermann, 227 

Schriftgeisser. Karl : Harding administra- 
tion, quoted, 76 ; Republican National 
Convention (1920), quoted, 42, 46; 
Roosevelt, F. D., quoted, 122 

Schroeder, Baron K. F, von, 227 

Schroeder Banking Company, 222, 227, 
250, 254 

Schultz, Joe, 137 

Schwab, Charles M., 108 

Scott, Adrian. 263 fn. 

Scott, Austin W., 269 

Scribner's Commentator, 220, 221 fn. 

Seamen's Union, 38 

Sears, Charles, 152 

Sears Roebuck Co., 146 

Seattle, Washington, 8-9, 129, 147 

Sedition bills. 30 

Segregation in Washington — A Report of 
the National Committee on Segregation 
in the Nation's Capital (booklet), 312 

Segregation of Negroes, 311-15 

Seldes. George, 284 

Selective Service Act, 192 

Seligman (J. W.) & Company, 86-87 

Senate Foreign Relations Committee, 7 

Sentinels of the Republic, 166, 195-96 

Serreo, Rudolpho, 288-89 

Shallet, Sidney, quoted, 248 

Shapiro, Irving, 290 

Shapley, Harlow, 305 

Sharkey, H. E., 286^ 

Shaughnessy (operative), 96 

Shaw, George Bernard, 100 

Shell Petroleum Corp., 141 



Sherwood, Robert, 125, quoted, 121 

Shields, Art, 98 

Shigeniitsu, Magoru, 240 

Shipyard workers strikes. See San Fran- 
cisco ; Seattle 

Short, Dewey, 219 

Shostakovich, Dimitri, 305 

Sickening Gas, 148 

Siemens-Halske, 229 

Silva, Frank, 95 fn. 

Silver Legion, 217 

Simmons. William J., 31 fn. 

Simon, Sir John, 121 

Sinclair, Harry F. : indictment, yz ', naval 
oil reserves, 58-62, 72-74 ; Republican 
National Convention (1920), 42-44 •46 ; 
speculative securities, 90 

Sinclair Oil Company, 58, 61-62, 141 

Singer, Herbert, 334 fn. 

Six Companies, Inc., 146 

Skeffington, Henry J., 16 

Siamer, Charles A., 173 fn. 

Sloan, Alfred P., Jr. : American Liberty 
League, 193, 195; Nazi Germany, 
quoted on, 226 ; New Deal, 162 

Slye, Dr. Maud, 291 fn. 

Smaller War Plants Committee (Senate), 

233 

Smith, Alfred E., 122 

Smith, Dale O., 303 

Smith Edwin S., 143 

Smith, Ferdinand C., 282 

Smith, Gerald L. K., 185, 217, 335 

Smith, Jesse W., 51, 65-68, 70 fn., 71 J 
Schriftgeisser, Karl, quoted, 76 

Smith, John Cabot, 296 

Smith Act, 236 fn., 333 

Smithfield, North Carolina, 322 

Smoot, Reed, 43 

Snyder, John W., 253 

Social Justice (publication), 185, 216 

Socialist Party, 30, 34, 37 ; Debs, E. V., 
35 fn., 36 fn. 

Societe Suisse pour Valeurs des Metaux, 
66 

Souers, Sidney W., 250 

South Carolina, 309-10, 320-21, 325 

South Dakota, 279 

Southern Committee to Uphold the Con- 
stitution, 195 

Southern Pacific, 134 

Southern Tenant Farmers Union, 155 

Soviet agents, deportation (1919), 2-3 

"Soviet Ark." See Buford 

Spaatz, Carl, 302-03 

Spanish, Joe, 136 

Spanknoebel, Heinz, 184 

Spare, Charles, E., 185 fn., 210 

Sparks, C. Nelson, 166 

Special Conference Committee, 161-67 

Speech, freedom of, 236 

Spellman, Francis Cardinal, 330 

Spy Bill, 301 

Stachel, Jack, 333 

Stafford, Wendell Philipps, 311 

Stalin, Josef, American war effort, quoted, 
235 

Standard Brands stock, 92 



Standard Oil of New Jersey : American 
Liberty League, 194 ; cartel agreements, 
81, 228-29, 231 ; Federal Laboratories, 
Inc., 146; labor espionage, 141; New 
Deal, 163 ; Middle East, 248 ; strike- 
breaking, 134 

Standard Oil of New York, 134 

Stapledon, Olaf, 305 

Statler Hotels, Inc., 141 

Steel industry: strike (1919), 9, 36, 37, 
42; working condition (1919), 8fn.; 
work-week 8 fn. See also Foster, Wil- 
liam Z, 

Steel Workers Organization, 157 

Steele, Walter S., 214 

Stephenson, James C, 313-16 

Stem, William, 136 

Stettinius, Edward R., Jr., 162, 232 

Stevens, Henry, 204 

Stewart, Douglas M., 221 fn. 

Stewart, Napoleon, 319 

Stewart, Robert W., 72 

Stinson, Roxy, 65-68, 74-75 

Stock market speculation, 90-93 

Stone, Harlan Fiske, 79 fn., 240 

Stone, I. F., 231, 259-60 

Stoney, Thomas P., 288 

Stow, Ashfield, 147 

Strange Death of President Harding, The 
(Means), 64, 70 

Stratton, Samuel W., loi fn. 

Stratton, William, 219 

Straus, Leon, 344 

Strempel, Heribert von, 220 

Strikebreaking, 132-40 

Strikes : coal, 9 ; Coolidge, 80 ; Ford 
Motor Company, 188-89; Pennsylvania 
miners (1931), 108; Roosevelt (F._D.) 
era, 129 ; shipping, see San Francisco, 
Seattle ; Special Conference Committee, 
166 ; steel (1919), 36, 37 ; World War I 
(post), 8-9, 35, 36, 38 ; World War II, 
231, 235 

Stripling, Robert E., 213 

Strong, Philip Duffield, loi 

Stuart, Harold L., 91 

"Subversive literature," 13 

Sugar, Maurice, 206-07 

Sullivan, Edward F., 211-13 

Sullivan, Gael, 280 

Sullivan & Cromwell, 222, 227 

Swarthmore College, 259 

Sweeney, Martin L., 219 

Swope, Gerard, 165 

Symington, William S., 251 

Tadlock, James, 136 

Taft, Philip : Red menace, quoted^ 35 ; 

World War I, labor concessions, 8 fn. 
Taft, Robert A. : food cost increase, 279 ; 

Taft-Hartley law, 279-81 
Taft, William H., 59 
Taft-Hartley Law, 279-81 
Tarpley, Bayard, 319 
Taylor, Glen H., 292 
Taylor, Myron C., 92 
Taylor, Robert, 263 
Teagle, Walter C, 165 

369 



Teapot Dome scandal, 59, 61-62, 67, tz, 
73 fn-, 75, 79, 255, 256 /n. 

Tear gas, 13^ fn., 145-51, 1 5 5-59 

Temporary National Economic Committee 
investigating Concentration of Econom- 
ic Power in the United States, 231, 234 

Tennessee, 309, 315-20, 324-25 

Tennessee Coal, Iron and Railroad Co., 
146, 153 

Texas : anti-labor bills, 279 ; anti-labor 
violence, 156; Ku KIux Klan, 31 /n.; 
Negroes, 309. See also Dallas 

Thackrey, Ted O., 340-41 

Thayer, Webster, 95-100 

Thomas, E. J., 162 

Thomas, Elbert D., 160-61 

Thomas, Fred, 185 /«. 

Thomas, J. Parnell, 213, 260 fn., 263-64, 
265 fn. 

Thomas, R. J., 187 

Thomas, Wesley, 323 

Thompson, Charles W., quoted, 47 

Thompson, J. W., 55, 71 fn. 

Thompson, John Oliver, 152 /«. 

Thompson, Robert, 237 fn., 289, 333, 339, 

341 

Thompson, William Boyce, 42 

Thompson, William G., 99 

Thompson & Kelly, Inc., Boston, 57 

Thompson-Black Construction Company, 
54-56, 71 fn. 

Thorkelson, Jacob, 219 

Tinkham, George Holden, 219 

To the American People — Report Upon 
the Illegal Practices of the United 
States Department of Justice, 21, 27-28 

Toledo, Ohio, 147 

Torres, Nick, 172 

Townsend, Ralph, 220 

Toy, Harry S., 293 

Trade Union Unity League, 1 1 1 

Trade Unions. See Labor Unions 

Treason, 349-50 ; definition, xi 

Trenton, New Jersey : Negroes, 324 ; pub- 
lic and private meetings, raids on, 287 

Trenton Street Railway, 134 

Tresca, Carlo, 98 

Tripp, R. A., quoted, 54 

Trout, Bob, 124 

True, James, 211 

Truman, Bess, her deep-freezer unit, 252 

Truman, Harry S, and the Truman ad- 
ministration : cabinet, 249 ; Chang Kai- 
shek, 246 ; Churchill's Fulton, Mo., 
speech, 244; domestic policy, 248-51, 
268, 290 ; "Fair Deal," 296-97 ; Far 
Eastern policy, 246-47 ; foreign policy, 
247, 268, 281, 290 ; freedom train, 306 ; 
Greek loan, 247-48 ; Hoover, Herbert, 
248-49 ; Ickes' resignation, 256 ; intel- 
lectual cheapness, 252 ; Johnson, Louis, 
202 fn.; "kitchen cabinet," 251-56; la- 
bor-management disputes, 165 fn. ; loy- 
alty investigations, 266 ; Loyalty Order, 
267-77; Medina, H. R., 334; Missouri 
gang, 251-56, 348; Niagara Falls, 
quoted, 278 ; North Atlantic Pact, 301 ; 
Pendergast machine, 251-52 fn.; presi- 



dent, sworn in as, 240 ; Rogge, O. John, 
259 ; Rooseveltian reforms, 296-97 ; 
Senate, 251-52 /n.; State of the Union 
address (1948), 324 ; State of the Union 
address (1950), 347 ; steel, lack of, 231 ; 
Taft-Hartley law, 279-80 ; Turkish loan, 
247-48 ; Un-American Activities Com- 
mittee, 266 ; Wallace, H. A., 292 ; war 
strategy, 300 

Truman Doctrine, 247-48, 267, 268, 274, 
300-01 

Trumbo, Dalton, 263 fn. 

Trusts, 78, 80. See also Banks ; Cartels 

Tuberculosis, 313 

Tucker, Ray, 128 

Tugwell, Rexford Guy, 125, 290 

Turkish Government loan, 247-48 

Twentieth Century Fund, 144 

Typewriter Workers Local, Hartford, 
Conn., 144 

Ukrainian-American fascist leaders, 211- 
12 

Ulio, James A., 236-37 

Un-American Activities Committee, 212- 
17, 260-66; Communism, publications 
on* 330 ; Eisler, Gerhart, 299 ; Progres- 
sive Citizens of America, 285 ; subver- 
sive organizations list, 270-71 

Unemployment: Coolidge era, 83-84 /n.; 
depression, 93, 107-12; Michigan, 205; 
Negroes, 308 

Union of Soviet Socialist Republics : 
agents deportation, 2-3 ; Allied attempts 
to overthrow, 5 ; Roosevelt's death, 240 ; 
United Nations, 244-45 ; United States, 
237-38, 244-47, 303-04 ; war effort, 238, 
303-04. See also Bolshevism ; Com- 
munism 

Unions. See Labor Unions 

United Auto Workers: Chrysler, 157; 
Ford Motor Co., 176-78, 180, 183, 185- 
88; General Motors, 157 

United Council of Church Women, 305 

United Mine Workers, 9 fn., 129 

United Nations : fascism, 244-45 ; Gubi- 
chev, v., 300 ; Negroes, 322 ; peace and 
security, 237 ; principles betrayal, 245 ; 
Roosevelt, F. D., quoted, 223 ; Truman, 
H. S., 244 ; U. S.-Soviet rapport, 243 

United States: Bolshevik revolution, 10; 
oil interests, 248 ; Soviet Union, 237- 
38, 244-47 ; United Nations, 244-45. 
See also Coolidge ; Harding ; Hoover ; 
Roosevelt ; Truman ; Wilson 

United States Rubber Company, 163 

United States Steel Corp., 8, 157, 163, 194 

Universal military training, 301 

Urquart, Leslie, 105 /n. 

Utah, 309 

Valtin, Jan, 214 

Van Zandt, James, 203, 250 

Vanderbilt, Cornelius, Jr., 85 

Vanzetti, Bartolomeo, 32, 93. See also 

Sacco-Vanzetti case 
Vardaman, James K., 252-53 
Vauclain, Samuel M., 42 



Vanghan, Harry H., 252, 253, 255 

Versailles Treaty, 6 

Veterans: bonuses, ii2fn.; disabled, 54 

Veterans' Bureau (U. S.), S3-58, 67, 71 

Veterans March on Washington (1932), 
1 12-17 

Veterans of Foreign Wars, 201, 203 

Viereck, George Sylvester, 217-21 

Villamil, Domingo, ^^7 

Villard, Oswald Garrison : Bolshevism, 
Hoover, quoted, 6 fn. ; denounced as a 
'Red', 31 ; Harding's death, 70 

Vinson, Fred M., 252 

Virginia, 309 

Vorys, John M., 219 

Wadsworth, James W., 43 

Wages and income, 38, 83 fn., 278 

Wagner Labor Act, 154, 168, 181-83 

Wagoner, Philip D., 224 

Wall Street : American dictator plan, 196- 
204; bomb explosion (1920), 14; Chil- 
ean bond issue, 88 ; Coolidge, Calvin, 
104 ; Cuban securities, 87-88 ; German 
rearmament, 81 /n.; Hoover, Herbert, 
104; influence of, 75 ; 1926, 81 ; Peru- 
vian bonds, 86-87 ; Wilson, Woodrow, 
quoted, 75. See also Banks and banking ; 
Stockmarket speculation ; the names of 
individual banks 

Wallace, Henry A. : Cultural and Scien- 
tific Conference for World Peace, 305 ; 
Democratic National Convention 
(1944), 252; presidential campaign, 
288, 290-96 ; Secretary of Agriculture, 
124; Truman foreign policy, 247 

Wallace, Henry C, 46-47 /«. 

Wallace for President Committee, 288 

Walsh, Thomas James, 18, 29 

War agencies, 232-33 

War Assets Administration, 234 

War Production Board, 232-33 

War Risk Insurance Bureau, 53 

War Shipping Administration, 232 /«• 

War veterans. See Veterans 

Ward, Harry E., 162 

Ware, Rev. Archie, 325 

Warsaw, USSR, Roosevelt's death, 240 

Washington, D. C. : Bonus Marchers, 1 12- 
17; Catholic Church, 312-13; Negroes, 
311-15 ; race riots (1919), 6 

Waters, W. W., 114, 115 

Watkins, Gordon S., 34 

Watson, James E., 43 

Watt, Richard F., 284 

Weeks, John W., 46 

Weiler, James, 136 

Weir, Ernest T., 193 

Wells Fargo Express Company, 134 

Werner, M. R., 91 

West Street jail, New York City, 340 fn. 

West Virginia: coal strike (191 9), 9; 
criminal syndicalist law, 30 ; Negroes, 
309 

Westchester Committee for Law and Or- 
der, 344 

Western Electric & Mfg. Co., 141 

Western Union, 141 



Westminster College, Fulton, Missouri, 
244 

Westrick, Dr. Gerhardt, 223-26, 227 

Weygand, Fred J., 94 

Whearty, Raymond P., 348 

Wheeler, Burton K. : America First Com- 
mittee, 220-21 ; Bolshevist agent accusa- 
tion, 78 ; Daugherty investigation, 74 ; 
Nazi sympathies, 219, 259 

White, Harry Dexter, 227, 285 fn. 

White, Isaac, (or "Peg-Leg") 207, 208 fn. 

White, Walter, 312 fn. 

White, William Allen : big business inter- 
ests, 232; Harding, Warren G., quoted, 
49; Harding era, quoted, 52; Hoover, 
H. C, quoted, 103 ; "managerial mag- 
nates," 232 

White, William S., 280 fn. 

White supremacy, 10 

Whitehead, Don. S., 297 

Whitney, Cornelius Vanderbilt, 251 

Wiggin, Albert H., 90, 106 

Wiggins, Archibald, 250 

Wilbur, Curtis, 80 

Williams, Charles D., 33 

Williamson, John, 282, 333 

Willkie, Wendell : freedom, quoted, 242 ; 
Soviet Union, 238 

Wilson, Charles E., 233 

Wilson, L. B., 25, 30 fn. 

Wilson, Woodrow: American people's re- 
jection, 10; armistice message, quoted, 
3 ; coast-to-coast speaking tour, 7, 8 ; 
illness and defeat, 7, 12; industrial 
democracy, 8 ; Paris Peace Conference, 
3-6 ; Republican National Convention 
(1920), 44; Russian territory evacua- 
tion, 6 ; Wall Street, quoted, 75 

Wilson Steamship Line, 134 

Winant, Gilbert, 285 fn. 

Winston, Henry, 333, 340 

Winter, Carl, 333, 340 

Winter, Keyes, 139-40 

Wirth, Louis, 312 fn. 

Wisconsin, 147 

Wise, Stephen S., 31 

Wolfe, James H., 334 

Wolverine Republican League, 205-06 

Wood, John S., 260 fn. 

Wood, Leonard, 43 

Wood, Robert E., 220-21 

Woodin, William H., 92 

Workers Council for Social Justice, Inc., 
185 

Workers Ex-Servicemen's League, 115 

Workers (Communist) Party of America, 
II fn. 

World War I : aftermath, 243 ; causes, 
80 ; Paris Peace Conference, 3-6 

World War II, 223-240; aftermath, 242- 
48 ; causes, 243 ; profiteering, 231-34 

Worley, Warren, 177, 180 

Worthy, H. C, 321 

Wright, T. P.; 233 

Wyoming : naval oil reserves, 59-63 ; Pro- 
gressive Party, 294. See also Teapot 
Dome scandal 



Yale University Law School, 283-84 Yudenidi, Nikolas, 6 fn. 
Yellowstone (U. S. destroyer tender), 298 

Young, A. H., 166 Zeiss, Carl, 228-29 

Young, John W., 147-49 Zevely, J. W., 61 
Young, Owen D., 81 fn., 162 

^IZU^n^A!; '"■' '" Jota AsUin. B. A., indexer 



372 




ALBERT E. KAHN. 

at thirty-seven, has earned an interna 
tional reputation for his sensational ex- 
poses of secret diplomacy, fifth column 
intrigue, and the machinations of men 
in high places. His books, as Walter 
Winchell once said of them, "pull nc 
punches, name names." 

A graduate of Dartmouth College, 
where he was a famous athlete and 
winner of the Crawford-Campbell Li- 
terary Fellowship, Mr. Kahn became, 
in 1938, the Executive Secretary of the 
American Council Against Nazi Pro- 
paganda whose Honorary Chairman 
was the late William E. Dodd, former 
U.S. Ambassador to Germany. During 
the war years Mr. Kahn was editor 
of The Hour, a newsletter which 
achieved nationwide prominence for its 
numerous revelations and news scoops 
concerning fascist agents and Axis es- 
pionage rings. 

In 1942, in collaboration wdth Michael Sayers, Mr. Kahn WTote Sabotage! 
The Secret War Against America. Reprinted in Reader's Digest, Sabotage! 
became one of the most w^idely discussed books in the country. Together 
with Michael Sayers, Mr. Kahn wrote two more bestsellers: The Plot 
Against The Peace (1945). and The Great Conspiracy (1946). 

The Great Conspiracy, which sold a quarter of a million copies in the 
United States, has been printed in probably more foreign lands than any 
other non-fiction book published in the last decade. Among the 25 lan- 
guages in which The Great Conspiracy has appeared are French, Rus- 
sian, German, Swedish, Hungarian, Bulgarian, Italian, Dutch, Portugese, 
Polish, Slovakian, Danish, Norwegian, Roumanian and Bengali. The 
world circulation of the book runs into millions. High Treason appears 
to be headed for the same international acclaim. 

Arthur Kahn, research and editorial assistant to Albert E. Kahn in th^ 
writing of High Treason, served in the Office of Strategic Services during the^ 
war, aod after V-E Day was appointed Chief Editor of Intelligence, Informa- 
tion Control Division of the Military Government in Germany. He is: 
the author of Betrayal, The American Occupation of Germany. The two 
Kahns are not related. 






LEAR PUBLISHERS 



105 East 15th St., New Yori: 3