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External LinksCenter for Public Integrity: Koch's Low Profile Belies Political Power The Nation: What Wouldn't Bob Do For Koch Oil? Triad Management Services (SourceWatch) Cursor.orgMediaTransparency.org sponsor More stories by Bill Berkowitz PERC receives Templeton Freedom Award for promoting 'enviropreneurs' Media Transparency writersAndrew J. Weaver FundometerEvaluate any page on the World Wide Web against our databases of people, recipients, and funders of the conservative movement. |
ORIGINAL RESEARCHBill Berkowitz Patron saints of right wing think tanks acquire Georgia Pacific CorpOil barons Charles and David Koch, two of the nation's worst environmental criminals, now control the country's largest privately held companyIn a move that does not bode well for the nation's forests, last month the Koch brothers of Kansas engineered a $13.2 billion buyout of forest products producer Georgia Pacific Corporation, making Koch Industries the nation's largest privately held company. The purchase includes Koch's assumption of $7.8 billion in Georgia Pacific debt, making the total purchase price $21 billion. The Kochs are smart, focused, and incredibly wealthy. For years they've been pushing both a libertarian and free-market agenda through tens of millions of dollars in contributions to conservative causes, candidates and organizations. During the late 1980s and early 1990s, Congress investigated their company over allegations that they had stolen over $30 million worth of oil from Indian tribes in Oklahoma. In January 2000, the Environmental Protection Agency leveled "the largest civil fine ever imposed on a company under any federal environmental law to resolve claims related to more than 300 oil spills from its pipelines and oil facilities in six states," according to Justice Department press release; the fine was severely reduced after John Ashcroft became Attorney General. One of the brothers was recently honored (scroll down for pix) for his generous support of the American Ballet Theatre's production of Raymonda. Who are these men with deep right-wing ties who own a company that will soon become the nation's largest privately held corporation? They're the Kochs from Kansas, and they control Koch Industries. According to the Toronto Globe and Mail, Koch's purchase of Georgia Pacific would vault Koch past food producer Cargill Inc. as the largest privately held company in the United States, with $80-billion in revenue and 85,000 employees in 50 countries. In a way, the Georgia Pacific acquisition "completes the circle" for Koch, Scott Silver told Media Transparency. "The ideologues running the land management agencies are the product of the think tanks created by, and funded by, the Koch family," Silver, the executive director of the environmental group Wild Wildnerness, pointed out. "Those ideologues are now in a position to permit Koch's newest acquisition, Georgia-Pacific, to further rape and pillage the public's lands. These think tanks promote the Free-Market ideal when it serves their interests to do so, but in reality, they are firmly committed to the ideal of enriching private interests at enormous direct cost to the American taxpayer." The Koch (pronounced "coke") brothers, Charles, David, William and Frederick are sons of Kansas. Thirty-eight years ago, Charles took over the company from his father, company founder Fred Koch. According to a recent piece in Business Week, Charles, 70, and David, 65, now "own the bulk of the company after elbowing out their other brothers ... in 1983," buying out William and Frederick for $470 million and $320 million, respectively. In 1998, in a chilling display of family disunity, "the two sets of brothers walked silently past one another in court as William and Frederick lost a lawsuit to extract more money from Charles and David." In 1940, Fred Koch founded the company as an oil refiner. A graduate of MIT, he was an original member of the anticommunist ultra-conservative John Birch Society, founded in 1958. The sons did not fall far from the tree: Both Charles and David graduated from MIT and have been deeply involved in conservative politics. According to "Axis of Ideology," (PDF Executive Summary) a 2004 report by the National Committee on Responsive Philanthropy, the two dominant Koch boys have "a combined net worth of approximately $4 billion, placing them among the top 50 wealthiest individuals in the country and among the top 100 wealthiest individuals in the world in 2003, according to Forbes." Between 1999 and 2001, they gave more than $20 million to a host of conservative organizations; "most of their contributions go[ing] to support organizations and groups advancing libertarian theory, privatization, entrepreneurship and free enterprise," "Axis of Ideology" pointed out (click here to see aggregated grants from the three Koch foundations). "David, who is executive vice-president and a board member, ran for Vice-President on the Libertarian Party ticket in 1980 and both Charles and David are directors of the free-market advocating Cato Institute and Reason Foundation," Business Week recently pointed out. In an interview with National Journal, David Koch described his philosophy this way: "My overall concept is to minimize the role of government and to maximize the role of the private economy to maximize personal freedoms." According to SourceWatch, a project of the Center for Media & Democracy, the brothers are "leading contributors to the Koch family foundations, which supports a network of Conservative organizations and think tanks, including Citizens for a Sound Economy, the Manhattan Institute the Heartland Institute, and the Democratic Leadership Council." Charles Koch co-founded the Cato Institute in 1977, while David helped launch Citizens for a Sound Economy [now FreedomWorks] in 1986. Over the years, they have given more than $12 million to each, according to the NCRP report. George Mason University is also a well-funded recipient of Koch largesse; receiving more than $23 million from the family's foundations between 1985 and 2002, according to the NCRP. Charles and David Koch control several family foundations including the Charles G. Koch Foundation, the David H. Koch Foundation and the Claude R. Lambe Foundation. Koch money also flows through Triad Management Services, "an advisory service to conservative donors on groups and candidates to support." Put more precisely, SourceWatch notes that Triad "is a Tom Delay-affiliated organization that launders money from large corporations into congressional campaigns." Originally and perhaps not surprisingly given their libertarian bent, the brothers were not aficionados of former Republican Kansas Senator Bob Dole. Some reports have it that they considered him more or less as just another spineless politician. In 1986, however, "the Kochs' disdain for Dole began to dissipate when Koch Industries sought financial advantage under 'technical corrections' to a tax revision act," veteran reporter Robert Parry wrote in an extensive investigative report for The Nation magazine. "The Washington Post," Parry noted, "reported that Koch Industries approached Dole and secured the Senator's aid in inserting an exemption from a new real-estate depreciation schedule, a change that was worth several million dollars to the company." "As a Senate leader ... [Dole] appeared willing to trade his influence for the keys to the Koch political money vault," Parry pointed out in "D(OIL)E: What Wouldn't Bob Do For Koch Oil?" David Koch became "a national vice chairman of the Dole presidential campaign's finance committee ... [and] lin[ed] up deep-pocket contributors for his candidate and the G.O.P." Koch "also helped Dole achieve majority leader status through his checkbook, contributed mightily to a Dole foundation and even turned his Gatsbyish estate in Southampton, New York, into the site for celebrating Dole's 72nd birthday in July 1995, raising $150,000 for his campaign." One of the strangest aspects of the Koch story is how little the general public knows about the brothers or the company. "Koch is a huge company -- bigger than Microsoft, but few people have heard of it," said Bob Williams, a project manager at the Center for Public Integrity, and the co-author of the report "Koch's Low Profile Belies Political Power: Private Oil Company Does Both Business and Politics With the Shades Drawn." "Despite its size and political largesse, Koch is able to dodge the limelight because it is privately-held, meaning that nearly all of its business dealings are known primarily only by the company and the Internal Revenue Service," Williams and Kevin Bogardus, co-author of the report, wrote. The company "has spent nearly $4 million on direct lobbying on more than 50 pieces of legislation before Congress, helping shape the debate on everything from limiting class action lawsuits to repealing the estate tax," William and Bogardus pointed out. In a November 15 News Release issued by the Institute for Public Accuracy, Williams pointed out that the company is "politically active, in campaign contributions, lobbying and, probably most importantly, founding and funding right-leaning libertarian think tanks." The acquisition could have profound effects since both the oil and lumber industries have significant environmental ramifications. "Koch is very solicitous of its many friends in Washington; and when it gets in an environmental bind, it is not shy about calling on those friends in Washington," Williams added. Williams' 2004 "Koch's Low Profile Belies Political Power" noted that:
"Amongst the most important, visible and powerful proponents of public lands privatization are the Cato Institute, the Property and Environment Research Center (formerly known as Political Economy Research Center) and the Reason Institute," said Scott Silver, the executive director of Wild Wilderness, a Bend, Oregon-based grassroots environmental organization. "Koch funds have played a major role in the operation of each of these organizations." The Koch family "is amongst the most powerful and influential movers and shakers promoting privatization in America," Silver added. Over the past several decades, "their money created an extensive infrastructure of Libertarian and Free-Market think tanks from which President Bush has drawn to staff the highest rungs of the land management agencies." The acquisition of Georgia-Pacific, which "does extensive logging on public lands" and "is a heavily subsidized form of corporate welfare," could accelerate the trend toward the privatization of our national forests Silver argued. "Logging companies such as Georgia-Pacific strip lands bare, destroy vast acreages and pay only a small fee to the federal government in proportion to what they take from the public. They do not operate in the Free-Market when they log public forests." Over the years, Koch has been "a major polluter," SourceWatch reported. "During the 1990s, its faulty pipelines were responsible for more than 300 oil spills in five states, prompting a landmark penalty of $35 million from Environmental Protection Agency (EPA). In Minnesota, it was fined an additional $8 million for discharging oil into streams. During the months leading up to the 2000 presidential elections, the company faced even more liability, in the form of a 97-count federal indictment charging it with concealing illegal releases of 91 metric tons of benzene, a known carcinogen, from its refinery in Corpus Christi, Texas." After Bush took office in 2000, the 97-count indictment was reduced by 88. The balance was then settled when, "two days before the trial" then- Attorney General John Ashcroft "settled for a plea bargain in which Koch pled guilty to falsifying documents. All major charges were dropped, and Koch and Ashcroft settled the lawsuit for a fraction" of the possible $350 million in fines. (According to SourceWatch, Koch had contributed $800,000 to the Bush election campaign and other Republican candidates.) That did not stop the company from polluting: In 2003, Koch bought Invista, the world's largest fibers company (which owns brands such as Lycra and Teflon) from DuPont for more than $4 billion in cash. According to a November 11 report in The News Virginian -- serving Waynesboro, Staunton and Augusta County, Va. -- "the Virginia Department of Environmental Quality log[ed] 16 spills by the textiles plant this year [and] warned Invista in a Nov. 9 violation notice that 'civil charges' and 'corrective action' might be on the way." A follow-up editorial two days later pointed out that Dupont, which previously owned the plant, used "the South River as a toilet for nearly 75 years," but when the operation "employed 4,000-plus locals in high-paying jobs, the powers-that-be here seemed to ignore the mercury the plant dumped into our river." Before the acquisition by Koch, the plant employed about 1,000 workers; now the workforce numbers about 700. sign in, or register to email stories or comment on them.
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MORE ORIGINAL RESEARCHBill Berkowitz PERC receives Templeton Freedom Award for promoting 'enviropreneurs'Right Wing foundation-funded anti-environmental think tank grabbing a wider audience for 'free market environmentalism' On the 15th anniversary of Terry Anderson and Donald Leal's book "Free Market Environmentalism" -- the seminal book on the subject -- Anderson, the Executive Director of the Bozeman, Montana-based Property and Environment Research Center (PERC - formerly known as the Political Economy Research Center) spoke in late-January at an event sponsored by Squaw Valley Institute at the Resort at Squaw Creek in California. While it may have been just another opportunity to speak on "free market environmentalism" and not the kickoff of a "victory tour," nevertheless it comes at a time when PERC's ideas are taking root.
Bill Berkowitz Neil Bush of Saudi ArabiaDuring recent visit, President’s brother describes the country as a 'kind of tribal democracy' In late February, only a few days after Saudi Arabia beheaded four Sri Lankan robbers and then left their headless bodies on public display in the capital of Riyadh, Neil Bush, for the fourth time in the past six years, showed up for the country's Jeddah Economic Forum. The Guardian reported that Human Rights Watch "said the four men had no lawyers during their trial and sentencing, and were denied other basic legal rights." In an interview with Arab News, the Saudi English language paper, Bush described the country as "a kind of tribal democracy."
Bill Berkowitz Newt Gingrich's back door to the White HouseAmerican Enterprise Institute "Scholar" and former House Speaker blames media for poll showing 64 percent of the American people wouldn't vote for him under any circumstances Whatever it is that former House Speaker Newt Gingrich has come to represent in American politics, the guy is nothing less than fascinating. One day he's espousing populist rhetoric about the need to cut the costs of college tuition and the next day he's talking World War III. One day he's claiming that the "war on terror" may force the abridgement of fundamental first amendment rights and the next he's advancing a twenty-first century version of his Contract with America. At the same time he's publicly proclaiming how "stupid" it is that the race for the presidency has already started you know that he's trying to figure out how to out finesse Rudy, McCain and Romney for the nomination. And last week, when Fox News' Chris Wallace cited a poll showing that 64 percent of the public would never vote for him, he was quick to blame those results on how unfairly he was treated by the mainstream media back in the day.
Bill Berkowitz American Enterprise Institute takes lead in agitating against IranDespite wrongheaded predictions about the war on Iraq, neocons are on the frontlines advocating military conflict with Iran After doing such a bang up job with their advice and predictions about the outcome of the war on Iraq, would it surprise you to learn that America's neoconservatives are still in business? While at this time we are not yet seeing the same intense neocon invasion of our living rooms -- via cable television's news networks -- that we saw during the run-up to the invasion of Iraq, nevertheless, a host of policy analysts at conservative think tanks -- most notably the American Enterprise Institute -- are being heeded on Iran by those who count - folks inside the Bush Administration.
Bill Berkowitz After six years, opposition gaining on George W. Bush's Faith Based InitiativeUnmentioned in the president's State of the Union speech, the program nevertheless continues to recruit religious participants and hand out taxpayer money to religious groups With several domestic policy proposals unceremoniously folded into President Bush's recent State of the Union address, two pretty significant items failed to make the cut. Despite the president's egregiously tardy response to the event itself, it was nevertheless surprising that he didn't even mention Hurricane Katrina: He didn't offer up a progress report, words of hope to the victims, or come up with a proposal for moving the sluggish rebuilding effort forward. There were no "armies of compassion" ready to be unleashed, although it should be said that many in the religious community responded to the disaster much quicker than the Bush Administration. In the State of the Union address, however, there was no "compassionate conservatism" for the victims of Hurricane Katrina.
Bill Berkowitz Frank Luntz calls Republican leadership in Washington 'One giant whining windbag'On the outs with the GOP, legendary degrader of discourse is moving to California He doesn't make great art; nothing he does elevates the human spirit; he doesn't illuminate, he bamboozles. He has become expert in subterfuge, hidden meanings, word play and manipulation. Frank Luntz has been so good at what he does that those paying close attention gave it its own name: "Luntzspeak."
Bill Berkowitz Spooked by MoveOn.org, conservative movement seeks to emulate liberal powerhouseFueled with Silicon Valley money, TheVanguard.org will have Richard Poe, former editor of David Horowitz's FrontPage magazine as its editorial and creative director As Paul Weyrich, a founding father of the modern conservative movement and still a prominent actor in it, likes to say, he learned a great deal about movement building by closely observing what liberals were up to in the late 1960s and early 1970s.
Bill Berkowitz Ward Connerly's anti-affirmative action jihadFounder and Chair of the American Civil Rights Institute scouting five to nine states for new anti-affirmative action initiatives Fresh from his most recent victory -- in Michigan this past November -- Ward Connerly, the Black California-based maven of anti-affirmative action initiatives, appears to be preparing to take his jihad on the road. According to a mid-December report in the San Francisco Chronicle, Connerly said that he was "exploring moves into nine other states."
Bill Berkowitz Tom Tancredo's missionThe Republican congressman from Colorado will try to woo GOP voters with anti-immigration rhetoric and a boatload of Christian right politics These days, probably the most recognizable name in anti-immigration politics is Colorado Republican Congressman Tom Tancredo. Over the past year, Tancredo has gone from a little known congressman to a highly visible anti-immigration spokesperson. "Tancredo has thoroughly enmeshed himself in the anti-immigration movement and with the help of CNN talk show host Lou Dobbs, he has been given a national megaphone," Devin Burghart, the program director of the Building Democracy Initiative at the Center for New Community, a Chicago-based civil rights group, told Media Transparency.
Bill Berkowitz Institute on Religion and Democracy slams 'Leftist' National Council of ChurchesNew report from conservative foundation-funded IRD charges the NCC with being a political surrogate for MoveOn.org, People for the American Way and other liberal organizations If you prefer your religious battles sprinkled with demagoguery, sanctimoniousness, and simplistic attacks, the Institute on Religion and Democracy's (IRD) latest broadside against the National Council of Churches (NCC) certainly fits the bill.
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