The Dublin Progress (Dublin, Tex.), Vol. 95, No. 15, Ed. 1 Thursday, September 10, 1970 Page: 20 of 20
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♦
J
24—0 Dorodo (Ark) Daily Ntwt—Thursday, Sapfambar 10,1970
i
Secret Files Reveal Illegal Contributions
By JAMES R. POLK
WASHINGTON (AP) - Se-
cret Justice Department files
show two ship lines gave nearly
$6,000 in illegal campaign con-
tributions for key members of
Senate and House committees
that control a rich flow of feder-
al subsidies for the firms.
The largest contributions to-
taling $1,500 went for Rep. Ed-
ward A. Garmatz, D-Md., chair-
man of the House Merchant Ma-
rine Committee. Another $1,000
was given for Sen. Warren G.
Magnuson, D-Wash., chairman
of the Senate Commerce Com-
mittee.
In addition, both House Re-
publican Leader Gerald R. Ford
and Democratic power Hale
Boggs were among 15 congress-
men and senators to whose cam-
paigns the shipping firms
have pleaded guilty to giving
illegal donations.
The Garmatz and Magnuson
committees approve subsidy
programs which pay $200 mil-
lion a year in federal aid to
American cargo and passenger
ships. A House appropriations
subcommittee actually votes the
subsidy funds, and other checks
went for the top four members
of this panel.
Names
The legislators’ names were
kept secret when the two firms,
American President Lines and
Pacific Far East Lines, were
fined "$50,000 each-the maxi-
mum penalty—in federal court
Feb. 6. They were charged un-
der the Corrupt Practices Act,
which forbids campaign dona-
tions by corporations.
Among those identified in the
closely guarded files is Rep. L.
Mendel Rivers, D-S.C., chair-
man of the House Armed Serv-
ices Committee, who is listed as
getting a $300 campaign check,
although it was left out of the
court case.
The Justice Department had
shielded the names of the con-
gressmen and senators because,
government attorneys said,
there was no indication they
knew the contributions they re-
ceived were illegal.
The checks were tunneled
from a special bank account
through a public relations man
and two lobbyists.
Asked about the checks, most
of the various congressmen told
The Associated Press they were
unaware of accepting any un-
lawful contributions.
One check for $500 went for
Rep. Robert L. F. Sikes, D-Fla.,
when he was unopposed for re-
election in 1966.
The check, payable to Sikes’
campaign committee, appears
to have been endorsed by Sikes
when it was cashed through
Congress’ own bank in the Capi-
tol.
The $500 did not show up that
year in a list, published in the
Congressional Quarterly, of the
campaign contributions report-
ed by candidates in sworn state-
ments to the House.
Records
Sikes said he would have to
check his records, but added,
"If I accepted an illegal contri-
bution, I intend to refund it."
The Justice Department files,
which includes copies of the
canceled checks, also list a $100
contribution made for Ford;
$200 for Boggs, who is House
Democratic whip; and $100 for
the GOP whip, Rep. Leslie C.
Arends of Illinois.
Ford said, “It is my policy
never to accept a contribution
from a corporation and I have
followed that policy religiously.”
The two San Francisco firms’
contributions counting the
smaller checks to Ford and
others not on the shipping
committees, totaled at least
$8,500 and ranged from 1966 to
1968. They included:
-11,000 for Garmatz from
American President Lines and
$500 for Pacific Far East.
Garmatz has represented
Baltimore’s waterfront district
in Congress since 1947 and took
over the House Merchant Marine
Committee half a year before the
illpgnl checks were given jn 1966.
-A total of $1,000—half from
each firm—for Rep. William S.
Mailliard the top-ranking
Republican on Garmatz’ com-
mittee. Mailliard a Navy
Reserve rear admiral from San
Francisco said he never handled
campaign contributions per-
sonally. He said "If my cam-
paign committee received a
check signed by an individual
they would have assumed it was
legal.”
-$1,000 for Sen. Magnuson from
American President Lines prior
to his 1968 race for reflection.
An aide to Magnuson said alllus
contributions siso were hsndlea
through a campaign treasurer
and a<M*d “The senator has no
personal knowledge of receiving
any such check.”
_I800 for Rep. John J. Roo-
ney, D-N.Y., a Brooklyn veteran
of a quarter-century in Con-
gress, now chairman of the
House appropriations subcom-
mittee which funds the flow of
subsidies i for shipping firms
Rooney said he didn t recall
ever receiving checks from iny
for ttep Frank T. Bow
of Ohio, the senior Republican
on both Rooney’s subcommittee
and (the full Appropriations
Committee. Bow said the
checks, signed by the public re-
lations man as an individual,
were brought in by the two lob-
byists and turned ova* to his
campaign committee. He said,
"We have no knowledge what-
soever that this was a corpora-
tion contribution.”
—$300 for Rep. Elford A*Ced-
erberg, R-Mich. Sikes is the sec-
ond-ranking Democrat and Ced-
erberg the No. 2 Republican on
the same appropriations sub-
committees.
—$500 each for Sens. Daniel
B. Brewster, D-Md., and Thom-
as H. Kuchel, R-Calif, both of
whom were beaten in their 1968
races. Brewster, currently un-
der indictment for bribery in an
unrelated case, was a key Sen-
ate supporter of shipping inter-
ests.
—$500 for the late Rep. Gle-
nard P. Lipscomb, R-Calif. Iron-
ically, American President
Lines pleaded guilty to this
count along with the others,
even though the indictment was
in error and listed the Lipscomb
check as involving a congres-
sional race in the wrong state, •
Colorado.
—$100 each for Reps. Thomas
L. Ashley, D-Ohio, and Jack Ed-
wards, R-Ala., both members of
the House Merchant Marine
Committee when the contribu-
tions were made. An Edwards
aide said the check would not
have been accepted if the cam-
paign staff had known it came
from a corporation.
Subsidies
American President Lines is
currently receiving $34 million a
year in federal subsidies for 24
cargo ships and two luxury
cruise ships.
Pacific Far East is getting
nearly $9 million a year in fed-
eral aid for 10 cargo ships.
The subsidies go mainly to
make up the difference in the
higher wages for American sea-
men as compared to foreign
crews.
The Justice Department took
the cases against the two firms
to'a grand jury after the Inter-
nal Revenue Service found the
companies had deducated the
political payments on their tax
returns.
The companies, which had
similar ownership in 1966 when
most of the contributions were
made, had channeled the money
through a special bank account
set up in the name of a public
relaiibns an in San Francisco.
The public relations man then
signed and forwarded the
checks to two lobbyists in Wash-
ington who distributed them.
“All I ever was was the inter-
mediary. They would send
checks, I’d have a congressman
to lunch, and present him the
contribution,” said Noah C.
Brinson, now retired as a lob-
byist for American President
Lines.
Attorneys
The Justice Department attor-
neys handling the case ex-
pressed surprise when told a
lobbyist had said checks were
given personally to some con-
gressmen. They conceded that
they made no effort to ask the
legislators whether they knew
the checks were coming from
the corporations through a spe-
cial bank account.
The department drew up the
indictments so that they would
deliberately include 10 checks
for Republicans and 10 for Dem-
ocrats.
As a result, the check for $300
for Rep. Rivers was left out.
The, last Democratic spot in the
list of charges against Ameri-
can President Lines went, in-
stead, to the larger $500 check
for Sikes.
A Justice Department source
confirmed, however, that the
check for Rivers was part of the
investigation file. Rivers’ com-
mittee oversees the Pentagon’s
military sea transport program,
which was leasing a ship from
American President Lines to
supply Vietnam at that time.
Rivers was in London
Wednesday and could not be
reached for immediate com-
ment.
The $500 check that bears a
scrawled signature which ap-
pears to be that of Sikes was
No. 103 drawn on the special
bank account and was made out
to the "Robert L. Sikes Cam-
paign Committee” July 27, 1966
The check is stamped as
cashed by the sergeant-of-arms,
whose office runs Congress'
bank several seconds’ walk
away from the House floor.
Data compiled by the Citizens
Research Foundation, Prince-
ton, N.J., and published in the
Congressional Quarterly does
not show Sikes as listing such a
$500 check on his campaign
statement to the House for 1966.
A congressional candidate is
required to file with the House
clerk a statement of "all contri-
butions received by me or by
any person for me with my
knowledge or consent ...
Public
The House clerk refused to
make public the original reports
filed by Sikes and others. He
said the two-year period for
public inspecton had lapsed
Sikes was unopposed in both
the primary and general elec-
tions in 1966. As a result, his
last contribution report filed
with the secretary of state in
Tallahassee, Fla., ended the
month before the $500 check
was written.
Sikes said, “I don’t recall the
circumstances This is some-
thing that took place two cam-
paigns ago, and my records are
filed away. I will go into them
as soon as I have an opportuni-
ty. If I accepted an illegal con-
tribution, I intend to refund it.”
Both checks for Garmatz
were listed on the statement his
campaign treasurer filed in his
homestgte at Annapolis, Md.
tJls report listed the $1,000
contribution in the name of Her-
bert Warren, the San Francisco
public relations man through
whom the firms’ contributions
were fimneled. But it gave War-
ren’s address as Washington.
the $500 check was reported
in the name of the second lob-
byist, Howard C. Adams, now
executive vice president of Pa-
cific Far East Lines in San
Francisco.
Garmatz and Sen. Magnuson
were both exempt from report-
ing these contributions in the
statements filed with the House
and Saute because the checks
for them were sent prior to their
piraary races.
Meeting on Arctic medicine
OULU, Finland (UPI)-The
second International Arctic
Medicine Symposium will be
held for Oulu in June, 1971,
city officials said. About 400
participants from the Scandin-
avian countries, the United
States and the Soviet Union
are expected to attend.
The symposium will study
the effects of natural surround-
ings on man and medical pro-
blems in northern areas.
MONEY CLIPS
by Mort Reed
Twice in less than a year,
the Lombardo Mint has pro-
duced an outstanding com-
memorative work. Its Eisen-
hower medal was a classic
example of fine art, but the
peace medal may just be its
best effort.
Sculptured by A. Marchet-
ti, the obverse is a montage
of 21 figures whose faces re-
flect the anguish and frustra-
tion brought on by world-
wide conflict. Three of the
faces are immediately rec-
ognizable as the late John F.
Kennedy, at the extreme
top; Pope John XXIII, to the
right, and Martin Luther
King, at roughly five o’clock.
The centerpiece symbolizes
the earth superimposed with
the scales of justice and held
by the hand of God.
The reverse is quite sim-
ple by contrast. It displays
the universally recognized
unofficial s y m b o 1 of peace
encompassed by a border
belt containing the word
PEACE in seven different
languages.
As a courtesy to the read-
ers of this column, officials
of the Lombardo Mint have
agreed to extend order dead-
line date from Aug. 22 to
Sept. 15,1970, but the limited
edition of 3,000 serially num-
bered pieces in frosted pure
silver must remain.
The unusual special collec-
tor’s edition consists of two
peace medals—one in pure
silver and one in bronze
housed in a custom-made
jewel case for $14. An un-
limited number of the bronze
pieces will continue to be
sold at $2 each.
Interested readers may
write to Lombardo Mint,
P.O. Box 525-A, Derby Line,
Vermont 15830 or the Lom-
bardo Mint, P.O. Box 203-A,
Sherbrooke, Quebec.
• • •
OPERATION
"CRACKDOWN"
The United States Secret
Service is methodically car-
rying on what we in the
numismatic industry hope
will result in a “blitz” opera-
tion against counterfeiting.
It can be done in time but
with more voluntary assist-
ance from the public at
large it will be done much
faster.
Numismatists are no dif-
ferent than anyone else. Pro-
fessionals and nonprofes-
sionals alike revel in the
thought that we are all
purist. And for the most part '
we are—to a point. But, as
with any environment, the
world of coin collecting is
easily contaminated.
Once contamination
reaches our pocketbooks,
we scream for help. Then we
blandly return to compla-
cency until another time and
another culprit, and then we
scream again.
All of this is quite unneces-
sary if we accept counter-
feiting as the pernicious,
spreading evil it really is
and fight it openly, regard-
less of who gets hurt. Then
and only then can we honest-
ly recommend numismatics
as the epitome of cultural
pastimes.
A classic example of what
can happen when the purists
join forces with legally con-
stituted authority in closing
the books on a counterfeiting
operation is reflected in a
case presently awaiting dis-
position in the Hollywood
federal court.
A long time member of the
numismatic society, highly
respected mr his many con-
tributions to the future of the
industry and an expert in his
own right, has just been con-
victed on seven counts relat-
ing to the violation of vari-
ous coinage laws of the
United States. Among the
violations were the crimes of
conspiracy to counterfeit,
the making and possession
ot dies in the likeness of dies
used by the U.S. Mint, and
the sale ^of 2,300 counterfeit
one-cent coins.
The prosecution showed
that the defendent conspired
with still another person to
mint rare-Mint-errors of ex-
tremely high value with a
total market value of $1 mil-
lion dollars.
Further evidence showed
that the two men purchased
several thousand dollars
worth of equipment as well
as copper ana silver for the
purpose of manufacturing
counterfeit 10-, 25- and 50-
cent coins. All of which were
destined to circulate in the
numismatic market.
Within the next few weeks
sentence will be passed. The
maximum could amount to
83 years in a federal peni-
tentiary and/or fines total-
ling $36,000.
INtwspeptr Inltrpriit Assn.)
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Hicks, Linda. The Dublin Progress (Dublin, Tex.), Vol. 95, No. 15, Ed. 1 Thursday, September 10, 1970, newspaper, September 10, 1970; Dublin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth776639/m1/20/?q=%22%22~1: accessed July 13, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting Dublin Public Library.