Showing posts with label misuse of funds. Show all posts
Showing posts with label misuse of funds. Show all posts

Thursday, October 24, 2013

Orville E. Hodge: high flying lifestyle

Hodge is fingerprinted by Paul Terrill, chief investigator for the Sangamon County Sheriff's Department, following his arrest in July of 1956. Photo credit: chicagoist.com

Like Paul Powell's illicit shoebox fortune and Otto Kerner's tax evasion, the case of Orville E. Hodge is often cited as a major one in the seemingly perpetual financial scandals carried out by Illinois public officials.

Born in Anderson, Illinois, in October of 1904, Hodge moved with his family to Granite City when he was four years old. In his adulthood, he would inherit his father's company, the Hodge Agency, and specialize in realty, insurance, and construction. After serving in the Illinois house of representatives, he was elected as the state's auditor of public accounts. Known as a jovial figure who made friends easily, Hodge was considered a rising star of the Republican Party who had the governor's office in his future.

Starting the auditor role in 1953, Hodge initially met with success. He negotiated a budget for his office that brought an additional $2.5 million to the auditor's office over the previous biennium. In 1955, however, Hodge came before the Illinois legislature with hat in hand. He had spent enough of the budget that it would run out before the end of the term. The legislators approved a $525,000 emergency appropriation to bail him out, trusting that Hodge was a capable official.

The next year, an unraveled financial scheme proved just how wrong this assumption was. Investigative reporter George Thiem, writing for the Chicago Daily News, pursued a tip that Hodge was mismanaging his accounts. Thiem uncovered 15 instances where Hodge had written state warrants, or checks, totaling $108,000 to people or firms. None of those named on the checks ever received a dime. The revelation would earn Thiem a Pulitzer Prize and Hodge a stay in prison. State and federal authorities began investigating his accounts in July of 1956.

The investigation uncovered a chronic pattern of embezzlement that had started in May of 1955. In addition to writing false warrants and state contracts, Hodge had falsified expense reports and set up dummy employees to receive kickbacks from their salaries. Although investigators initially found irregularities amounting to $536,226, the figure began to steadily climb as more and more misconduct was brought to light. Governor William G. Stratton, who at first ordered Hodge to double his $50,000 bond, now urged the auditor to resign. Hodge did so, with Stratton inviting retired University of Illinois comptroller Lloyd Morey to take over the position for the six months remaining in Hodge's term.

Federal investigators soon ordered the arrests of Hodge as well as Edward A. Epping, his former office manager, and Edward A. Hintz, the resigned president of Chicago's Southmoor Bank and Trust. Epping was accused of taking six state checks to the bank, where Hintz cashed them. Hodge was charged with using the assets to purchase a number of luxury items including two private airplanes, four luxury cars, a resort hotel suite in Florida, a home on Lake Springfield, and other real estate and stocks. The total amount of stolen money was uncertain, and indeed varied among reports; most put the figure in the area of $1.5 million while others said it was considerable higher, citing the specific sum of $2,500,008. "Where do they get that $2.5 million?" Hodge himself would later ask in a prison interview. "I was sent here for $650,000 and they're getting that back." One calculation suggested that Hodge had embezzled more than $1 million by depositing phony state warrants in federally insured banks, misappropriated $500,000 by liquidating the funds of closed banks, and acquired another $1 million through illegal expense accounts, expenditures, and fraudulent contracts.

Hodge was charged with both state and federal crimes, since the activity had involved the misappropriation of bank loans insured by the United States. Hodge wrote a 176-page "clean breast" statement, admitting to the wrongdoing and saying he had misappropriated funds both to maintain a high standard of living and to further his aspirations to be governor. He admitted that Epping and Hintz had been involved in the scheme, but denied that they had benefited personally. Hodge also returned $528,000 to the state shortly after the wrongdoing was discovered and vowed to give up his assets to aid the restitution.

In August, just one month after the illegal activity came to light, Hodge pleaded guilty to federal charges of embezzlement, forgery, running a confidence game, and conspiracy to defraud the state. He was sentenced to 20 years in prison, with the stipulation that the term would be cut in half if he made good on a $816,427 restitution. Later in the same month, Hodge was sentenced on state charges that he had embezzled $637,000. The prosecutor, a fellow Republican named George Coutrakon, wanted to make an example out of Hodge by sentencing him to 42 to 45 years in prison. However, Hodge was ultimately ordered to serve 12 to 15 years in prison, concurrent to the federal sentence.

Soon after, Hintz was sentenced to three years in federal prison. In September of 1956, Epping was ordered to serve four to five years behind bars. A policeman, William Lydon, was found guilty of conspiring with Hodge to get false bids on remodeling contracts to the tune of $88,787; a jury convicted him of conspiracy in November of 1957 and fined him $2,000. The final conviction related to Hodge came in January of 1958, when Epping was further convicted on federal charges of forgery, running a confidence game, and embezzlement. He was sentenced the next month to another one to 10 years behind bars.

The court confirmed that Hodge had paid his restitution in 1957, meeting the requirement to reduce the federal sentence. Morey would use his brief time in office to develop a reform program, while his successor Elbert S. Smith continued this reorganization and efforts to get back the money Hodge had stolen. The state would ultimately recover more than $2 million. Hodge served six-and-a-half years of the remaining sentence before Governor Otto Kerner reduced his sentence to 10 years so he would be eligible for parole. He was released at the end of January in 1963.

Nearly broke, Hodge returned to his hometown of Granite City to start working in his sister's hardware store. He later began working as a used car salesman and real estate agent. Hodge died in December of 1986.

Sources: History of the State of Illinois Comptroller Office, "State Auditor to Be Ousted in Shortages" in The Dispatch on Jul. 12 1956, "Governor Tells Illinois Auditor to Get Off Ballot" in the Palm Beach Post on Jul. 12 1956, "Funds Loss Set At $800,000" in the Portsmouth Times on Jul. 19 1956, "Illinois Orders Arrest of Hodge, Two Others" in the Milwaukee Journal on Jul. 21 1956, "Hodge Pleads Innocent in Illinois Fund Scandal" in the Milwaukee Journal on Jul. 26 1956,  "Ex-Official to Give Up All Assets" in the Miami News on Aug. 9 1956, "Hodge Admits Guilt in State Fraud Case" in the St. Petersburg Times on Aug. 14 1956, "Hodge Guilty; Gets 20 Years" in the Milwaukee Journal on Aug. 15 1956, "Illinois Gets Million Plus From Hodge" in the Miami News on Aug. 17 1956, "Auditor Gets 12 Years For Tapping Ill. Till" in the Meriden Record on Aug. 21 1956, "Bankers is Sentenced to 3 Years" in the New York Times on Aug. 25 1956, "Hodge's Office Manager Gets 4 to 5 Years" in the Leiston Evening Journal on Sep. 8 1956, "Hodge's Sentence Cut" in the New York Times on Mar. 5 1957, "Orville Hodge Whimpers Year Enough Time in Jail" in the Lakeland Ledger on Aug. 16 1957, "Policeman in Hodge Case Fined" in the Daytona Beach Morning Herald on Nov. 25 1957, "Jury Convicts Auditor's Aide" in the Spokesman-Review on Jan. 13 1958, "Orville Hodge is Back Home" in the Palm Beach Post on Feb. 1 1963, "Orville Hodge, Auditor Who Robbed State" in the Chicago Tribune on Jan. 1 1987, "Orville Hodge Married Again" in the Milwaukee Journal on Sep. 9 1965, "Lots of Other Illinois Pols Have Found Trouble" in the Carmi Times on Jun. 27 2011, The Gentleman From Illinois: Stories From Forty Years of Elective Public Service by Alan J. Dixon, The Man Who Emptied Death Row: Governor George Ryan and the Politics of Crime by James L. Merriner

Thursday, August 27, 2009

James H. Lane: soldier of misfortune

Image from bioguide.congress.gov

Like William Hull, James Henry Lane could be considered as much or more of a military man than a politician. Though he had considerably more political experience than Hull, Lane nevertheless spent much of his time in the field. Ultimately, it was a mix of both political and military issues that led to Lane's downfall.

Lane was born in Lawrenceburg, Indiana, in 1814. After attending school and studying law, he was admitted to the bar in 1840 and opened up a practice in his hometown. While there, he became a member of the city council and speaker of the Indiana house of representatives. Six years after opening his practice, Lane left to join the Third Indiana Volunteers. Ultimately, he became a colonel and served in the Mexican War, leading a brigade at the Battle of Buena Vista. Upon returning home, Lane raised the Fifth Indiana Volunteers and served as Lieutenant Governor from 1849 to 1853.

Lane left this position after being elected as a Democrat to the House of Representatives in 1852. He served one term, during which his most noted vote was one in favor of the Kansas-Nebraska Bill and the repeal of the Missouri Compromise, an act that led to the "bleeding Kansas" struggles between pro- and anti-slavery settlers in the territory. Not one to shy away from trouble, Lane moved to the Kansas Territory after his term in the House and joined the anti-slavery "free state" faction.

In 1855, Lane became the chairman of the executive committee of the Topeka constitutional convention, which formed the first state government. He was also elected major-general of the Free State Troops, and organized the defense of Lawrence during the conflict in late 1855 known as the "Wakarusa War." The key feature of the defense was a network of rifle pits throughout the settlement's streets, ensuring that any attacking pro-slavery army would pay a high price. In a speech after Lawrence's successful defense from Missouri raiders, Lane declared, "That beloved Union, for the safety of which we trembled, will not again, we trust, be imperiled by a foreign force from a sister state invading our Territory. They must and will see the impropriety and injustice of meddling in our affairs until they become our fellow citizens."

Lane was known for such speeches in his efforts to encourage anti-slavery settlers to come to Kansas and in his general denunciation of slavery. In an 1856 speech, Lane blamed Franklin Pierce for the bloodshed, since the territory had been rejected for statehood, and arraigned the President as a murderer. The accusation referred to the government's decision that year to not recognize a memorial presented to Congress requesting statehood. Senator Stephen A. Douglas of Illinois accused Lane of perpetrating fraud, since the memorial was plagued with added sentences and several signatures that appeared to be in the same handwriting. An incensed Lane challenged Douglas to a duel, but Douglas refused to accept, saying Lane was not a Senator and therefore not his equal. The rebuke was especially cutting because the Topeka government had appointed Lane to sit in the Senate if statehood was granted. According to John Speer, a compatriot and biographer of Lane, Douglas and Lane eventually became friends due to the approaching Civil War, and Lane mourned Douglas when he died a few months after the conflict began.

Lane continued his activities against pro-slavery men in Kansas, earning him the nickname "The Grim Chieftain." When raiders sacked Lawrence in May of 1856, Lane gathered troops from Iowa and Nebraska and entered Kansas to bolster the anti-slavery forces and drive out raiders. During the same month, Lane was indicted for high treason. The New York Times, in Lane's obituary, reported that Douglas County handed down the indictment for Lane's support for the Topeka government, while historian Donald L. Gilmore says the indictment was handed down by a U.S. district court chief justice who charged Lane and a number of other anti-slavery leaders with resisting territorial laws.

The indictment led Lane to keep out of sight more than usual, but by the next year he was back on the scene, assisting with efforts to remove raiders from Bourbon and Lion counties. He served as president of the Leavenworth constitutional convention, and was elected major-general of the Kansas troops by the territorial legislature. Lane also corresponded with John Brown during 1857, appointing him a brigadier-general and encouraging him to come to the territory to fight. Brown declined, as he was making preparations for his famed 1859 raid against Harper's Ferry in Virginia.

Lane's first serious trouble came in June of 1858, when he shot and killed fellow free state leader Gaius Jenkins as Jenkins came onto land that both men claimed in order to get water from a well. According to Lane's account, Jenkins was accompanied by three other armed men, and he did not open fire himself until three shots had been leveled at him, including one that struck him in the knee. Lane was charged with homicide, but ultimately released on the grounds of self-defense. The incident haunted Lane for at least another year, when a public resolution called him a coward and murderer and said the incident "adds one more infamous page to a life of treason, stratagem, and spoils." In a response published in the Lawrence Republican in March of 1859, Lane declared that he had not expected to kill Jenkins. "It is true that Mr. Jenkins fell by my hand," he wrote. "But no one has more deeply felt or grievously mourned that misfortune than myself."

After Kansas was admitted to the Union as a state in early 1861, the legislature elected Lane to the U.S. Senate with 55 votes, a slight majority over Samuel C. Pomeroy, the other man appointed. By this time, Lane had fallen in with the Radical Republicans, who not only opposed slavery but supported civil rights for African-Americans. He had also fallen on poor times. Speer said that when Lane was elected, he was so poor that he "was refused credit for a loaf of bread in Lawrence."

With the Civil War underway, one of Lane's most notable actions was commanding the Frontier Guard. Made up of Kansas troops, the Guard was raised for the defense of Washington, D.C. in the early part of the war. They were even camped in the East Room of the White House for a time, according to the New York Tribune. Lane also sent the men on a few offensive actions, including an attempt to capture Confederate general Robert E. Lee. While this failed, they did manage to capture the first rebel flag of the war from the homestead of a secessionist.

In June of 1861, President Abraham Lincoln nominated Lane to be brigadier-general of the volunteers. Lane accepted, and for four months commanded the Kansas Brigade, made up of three volunteer units. Following the retreat of Union troops at Wilson's Creek and threats of further violence by pro-slavery raiders, Lane gathered troops and fought skirmishes at Dry Wood and Papinsville. He then led the men on to sack Osceola, Missouri.

Lane's military activities back in the West weren't exactly conducive to his duties as a U.S. Senator. Following his nomination to be brigadier-general, the Judiciary Committee determined that he "virtually resigned his seat." Governor Charles Robinson appointed Frederick P. Stanton, a former governor of the Kansas Territory, to fill the vacancy. Robinson was not very fond of Lane, resentful of his influence and troop-raising activities, which were not strictly within his authority. Though the Senate considered the question of whether Lane was "not entitled to a seat in this body," the seat remained Lane's when the question was amended in January of 1862 to remove the word "not" and accepted.

Though Lane's hope was to raise an expedition of Kansas troops, Native Americans, cavalry, and artillery to invade the southwestern portion of Confederacy, the idea was abandoned due to impracticality. Nevertheless, Lane continued to see action in the West during the Civil War. In July of 1862, he was named commissioner to superintend the recruitment of volunteers.

One noted result of Lane's recruiting efforts was the First Kansas Colored Volunteers, the first black regiment created in the Union army. He sent agents throughout the Union to raise troops, but ultimately the War Department asked that it be put to a stop after receiving complaints that it was hindering efforts to recruit white men. Undeterred, Lane continued to muster troops without federal or state backing. He even hired black recruiting agents, promising pay equal to their white counterparts. Eventually, the regiment received federal authorization.

Already an enemy of pro-slavery forces in Kansas, Lane's activities and declarations (including one that overthrowing slavery would destroy the Confederacy) did nothing to endear him to them. One goal of William Quantrill's 1863 raid on Lawrence was to find and kill Lane. Though his house was one of some 185 buildings torched, Lane was not among the approximately 150 casualties of the massacre. He had managed to escape through a window and nearby cornfield. Enraged by the attack, he called for western Missouri to be converted into "a desert waste." He also pressured a local brigadier-general to pass an order calling for the inhabitants in four Missouri counties to evacuate if they were not loyal to the Union and relocate to a military post if they were. In October of 1864, Lane was named volunteer aide-de-camp when martial law was proclaimed in Kansas.

Lane managed to find some time in these adventures to do work in the Senate. He chaired the Committee on Agriculture during 1864, and also helped to get the Union Pacific Railroad moved three miles to access Lawrence and Topeka. When the railroad requested $300,000 to counteract the loss of funds the diversion would cause, Lane responded, "Before you get a dollar out of that burned and murdered town, you will take up every stump, and every old log you have buried in your grade to save money, and stone-ballast every rod to Lawrence; and even then, when you get your first subsidies, let Jim Lane know!"

When the war concluded, the Chicago Tribune published an account suggesting that a U.S. Senator was personally receiving $20,000 in a deal involving Indian Bureau transactions and military contracts. Though the newspaper didn't name anyone, the Boston Commonwealth suggested it could be Lane. He denied any involvement in such a deal, and was supported by the Senators from Indiana, who declared him innocent after looking the matter over.

Though he was exonerated on the accusations, the incident only further stressed Lane, who had been returned to the Senate in 1865. He lost favor among the Radical Republicans when he opted to support President Andrew Johnson's watered-down approach to the Reconstruction, including Johnson's opposition to the Freedmen's Bureau and veto of the Civil Rights Bill. In July of 1866, Lane visited his brother-in-law, a Captain McCall, and the two rode out from Fort Leavenworth. When McCall opened the carriage door for him at a stop, Lane stepped out, said, "Goodbye, Mac," and shot himself in the head. He died 10 days later.

In pondering the incident, contemporary sources often turned to mental illness as a way to explain the suicide. Speer, declaring Lane overworked and deranged, said, "There is nothing strange about such a man becoming insane." The New York Times obituary stated, "Mr. Lane's present term in the Senate was unmarked by ought that was peculiar or out of the ordinary routine. He was eminently social, kind-hearted, and just faithful ever to his friends, relentless ever to his foes." Initially referring to his condition as "temporary insanity," the newspaper declared four days later that a doctor had determined that the suicide was "attributed solely to mental aberration, induced by extreme prostration and derangement of the nervous system, and aggravated by anxiety."

Sources: The Biographical Directory of the United States Congress, The Kansas Historical Society, Territorial Kansas Online, "Obituary: James H. Lane, United States Senator From Kansas" in the New York Times on Jul. 4 1866, "Gen. James H. Lane; His Conduct Previous To The Attempt To Commit Suicide" in the New York Times on Jul. 8 1866, Life of General James H. Lane, "The Liberator of Kansas" by John Speer, Jim Lane: Scoundrel, Statesman, Kansan by Robert Collins, Rebel Invasion of Missouri and Kansas by Richard Josiah Hinton, Compilation of Senate Election Cases from 1789 to 1913, The Black Military Experience by Joseph Patrick Reidy, Kansas edited by Frank W. Blackmar, John Brown, Abolitionist by David S. Reynolds, The War of the Rebellion: A Compilation of the Official Records of the Union and Confederate Armies Vol. 3, Encyclopedia of the American Civil War edited by David S. and Jeanne T. Heidler, John M. Schofield and the Politics of Generalship by Donald B. Connelly, Twenty Years of Congress: From Lincoln to Garfield by James Gillespie Blaine, Civil War on the Missouri-Kansas Border by Donald L. Gilmore, "New Perspectives On The West" at pbs.org

Sunday, July 5, 2009

Wayne L. Hays: money for nothing

Elizabeth Ray and Wayne Hays. Image from Jet.

In April of 1976, Wayne Levere Hays was preparing for a second marriage and holding a wedding reception in the House Administration offices. The 14-term Ohio congressman had invited his staff to the ceremonies, with the exception of a buxom 33-year-old blonde named Elizabeth Ray. When she showed up anyway, Hays got into a heated argument with her and summoned the Capitol Police to escort Ray from the building. Hays' blunt attempt at damage control ultimately did more harm than good; immediately after the incident, Ray went to a phone booth and placed a call that kicked off a series of events leading to Hays' resignation.

Hays was born in Bannock, Ohio in 1911 and graduated from the Ohio State University at Columbus in 1933. He taught in the cities of Flushing and Findlay in his home state between 1934 and 1938 while also doing agricultural work on the side. His first political appointment came in 1939, when he was elected mayor of Flushing; according to his congressional profile, he held the post until 1945, though the profile also mentions that he served in the state senate in 1941 and 1942. Hays became a member of the U.S. Army reserve corps in 1933, and was called to active duty the day after Pearl Harbor was bombed in 1941. He served until the next year, when he received a medical discharge. From 1945 to 1949, he was a commissioner of Belmont County.

In 1948, Hays was elected to the House of Representatives as a Democrat, and managed to keep the seat for the next 28 years. During his time in Congress, he chaired a House delegation to the NATO Parliamentarians Conference and was president of the conference in 1956 and 1967. From 1969 to 1970, he was president of the North Atlantic Assembly.

Hays' first notable actions were his open mockery of a special House committee on which he served in 1954. The so-called Reece Committee, named for chairman Brazilla Carroll Reece (a Tennessee Republican), was formed to investigate several tax-exempt organizations for ties to Socialist or Communist movements. Included in the discussions was the research of human sexuality by Alfred Kinsey, which had been partially funded by the Rockefeller Institute. The committee soon drew criticism for its selective use of witnesses, as nine of the 10 witnesses that were ultimately called were employees of the committee.

On one occasion, Hays led a Democratic walkout from the committee, saying San Francisco lawyer Aaron Sargent had accused Democratic Senator Paul Douglas of Socialist ties; for good measure, Hays threatened to punch out a man who heckled him during the exit. In a ruse to demonstrate that statements were being taken out of context, Hays asked the committee's assistant research director, Thomas McNiece, for his opinion on three quotes advocating fair wages and relief for the poor. When McNiece said the quotes were consistent with Communist literature he had encountered, Hays retorted that they had actually been taken from the Encyclical of Pope Pius IX.

Ultimately, the committee fell apart after eight weeks when Reece declared that the hearings would end and the tax-exempt organizations could submit written statements to the congressional inquiries instead. Reece said both that Hays' actions had obstructed the committee and that the written statements would expedite the process. Hays' own opinion was that the witness testimony "was so utterly nonsensical and without basis in fact that it fell of its own weight, it seems to me that the action taken today was the least embarrassing way that Mr. Reece and his staff could get offstage.''

Over the years, Hays gained a reputation for his temper; Democratic Congressman Phillip Burton of California described him as "the meanest man in Congress." Periodically, Hays appeared in the news for some incident where these characteristics were at play. In 1956, Hays said he'd heard that the U.S. Immigration Commissioner, Joseph M. Swing, might inhibit his efforts to get citizenship for his adopted daughter and said Swing "will not be able to physically hold the job from then on" if that happened; Swing was defended by New Jersey congressman Alfred Sieminski, who suggested that he and Hays take it outside. In 1966, Hays was cited for speeding, unsafe operation, and failure to comply with the lawful order of a police officer after driving away from a traffic stop. Hays said he was offended by the cop, who had patted his holstered pistol while they talked, so he simply took off and refused to pull over again until the officer gave up the chase.

Most notably, Hays was criticized in 1963 for taking the head waiter of the House of Representatives, Ernest Petinaud, to London and Paris with a congressional delegation that he headed. Petinaud's transportation, room and board, and other expenses were paid for by the government. Hays said that the waiter served as a messenger during the trip; he also said Petinaud was invited in part because he was black, and also because he was a nice person who deserved a break.

Hays had a feud with Democratic Congressman Adam Clayton Powell, Jr. of New York going back to at least 1956. In that year, Powell supported Dwight Eisenhower for President because he preferred Eisenhower's stance on racial integration. Hays requested that the Democratic caucus strip Powell of his committee assignments, and headed the 1966 probe into Powell's possible misuse of funds for travel. As has been noted, Powell replied in his autobiography that Hays' junket with Petinaud made him guilty of the same impropriety.

Following the 1970 elections, Hays became chairman of the Committee on House Administration and the Joint Committees on Printing and the Library. The House Administration committee controlled such functions as travel vouchers, office expenses, committee budgets, and other matters related to the House. He also chaired the Democratic Congressional Campaign Committee, which distributed campaign funds to House members and candidates.

Hays was accused of using his power on the House Administration committee to bully other congressmen and House employees. Among his orders were the removal of jump seats from the elevators so the operators would have to stand and banning tips for House barbers. After the 1974 elections, a reform effort aimed to remove Hays from this position, but he retained the chairmanship in a 161-111 vote. Meanwhile, in January of 1976, Ohio secretary of state Ted Brown accused Hays of abusing the congressional privilege of free mailing by sending out 160,000 letters to constituents opposing four state bond issues.

Hays was popular enough in his home district that there were rumors that he would seek a higher office, namely the Democratic nomination for the 1976 presidential race, or perhaps enter the Ohio gubernatorial race in 1978. He supported the public financing of presidential races, but not congressional ones, arguing that such regulation would lead to a glut of candidates. He helped craft a campaign finance reform act along these lines in 1974.

There were hints of Hays' possible infidelity prior to the incident in April of 1976. Earlier in the year, Hays divorced his wife, Martha, to whom he had been married for 38 years. His second marriage occurred quite close to the termination of his first, and to a woman some 30 years younger than him: Patricia Peak, the personal secretary in his Ohio office. Five weeks after the marriage, the scandal broke.

Elizabeth Ray had previously had a chance encounter with Marion Clark, a Washington Post reporter, on a train that had been delayed by a paint factory explosion. As the passengers swapped stories, Ray said that she had had quite a few sexual escapades in the nation's capital, including with congressmen. Clark tried to keep in touch with Ray, but lost track when Ray briefly went west to try to make it as an actress. Ray remembered Clark, however, and was eager to spill the beans on Hays after she was thrown out of his office.

Ray said that she had been working on Capitol Hill since 1972, starting as a hostess and then working for a few congressmen. She began working for Hays in April of 1974 as a clerk for the House Administration Committee. As Ray told it, though, "work" was too strong a term for what she did. Basically, she told the reporters, she was a hired mistress, coming in only a few hours per week to have sex with Hays and receiving $14,000 a year for the administrative duties she never performed. "I can't type. I can't file. I can't even answer the phone," she said.

Ray said she knew of other girls working for congressmen who also had to submit to sex to keep their jobs, and made references to "orgies" at the Capitol attended by congressmen. She said that on one occasion, Hays referred to the Fanne Fox incident by saying that any woman that embarrassed him in such a way would be "six feet under."

Clark and Post reporter Rudy Maxa took Ray up on the story and personally witnessed her dinner dates with Hays on a couple of occasions. Ray also allowed them to eavesdrop on a phone call from Hays. When Ray asked what the state of their relationship would be after Hays' wedding, Hays replied, "If you behave yourself, we'll see." He also advised her to start coming into work more often, since he was afraid that Bob Woodward, one of the two Post reporters who had managed to crack open the Watergate scandal, was after him (Woodward was looking into Hays on restaurant expenses, but not the Ray affair). Ray asked, "Do I still have to screw you?" Hays answered, "Well, that never mattered."

The Post ran the story on May 23, 1976. It included Hays response to the question of whether he had been having an affair: "Hell's fire! I'm a very happily married man!" However, the personal witness accounts of the reporters, including a transcription of the phone call, made the denial ring hollow. The story also accused another committee staffer, Paul Panzarella, of living with Hays' niece and receiving a paycheck for doing virtually no work. In later investigations, Hays was accused of giving two other men annual salaries of $25,000 and $10,000 for minimal contributions to the committee.

Two days after his denial, Hays admitted to having a "personal relationship" with Ray but maintained that she had done work for the committee and had not been hired solely for sex. Time opined that Ray was not the most sympathetic character, described by past boyfriends as "nutty, spacey, neurotic, or dim," but that Hays' overall crustiness made him a particularly worthy subject to be knocked down a peg or two. In July of 1976, the Ohio Black Political Assembly called for Hays' expulsion, saying the House had set a precedent for expulsion for misconduct with the Powell decision and needed to be consistent. Noting that Powell, dead since 1972, had said he could come back to haunt those who had removed him because they were guilty of the same sins, a lawyer later referred to Ray as "the ghost of Adam Clayton Powell."

In June, Hays was hospitalized after taking an overdose of sleeping pills, an action he insisted was accidental and not a suicide attempt. The same month, he resigned from the Democratic Congressional Campaign Committee and Committee on House Administration, an action that automatically removed him as chair of the Joint Committee on Printing. He said he was resigning due to the accusations and the state of his health, but that he was convinced he would be exonerated and possibly restored. In fact, Hays was easily able to win the Democratic nomination for the 1976 election that month.

Instead of proceeding, Hays announced in August that he would not seek re-election. "The polls show I'd win, but I don't want to give that woman another chance to make an appearance," he said. By this point, a book on the affair entitled "The Washington Fringe Benefit" had been published under Ray's name. Ray herself said she regretted her actions and that she had not intended to bring about Hays' downfall; she even declared, "He's suffered enough. He's gone through enough torture."

On September 1, Hays resigned. The House Committee on Standards of Official Conduct immediately dropped its investigation, since they no longer had jurisdiction in the matter. Hays had reportedly asked for the ethics committee to look into the matter in order to show that Ray had actually worked for her salary, though other sources say the resignation was explicitly to escape the committee's investigation.

The matter was not a simple matter of infidelity, however; there was still the question of whether Hays had thrown away government money on useless employees. For a time, the Justice Department looked into whether Hays could be charged with conspiracy to defraud the government or conversion of public funds to private use. In October, three lawsuits seeking to recover Ray's salary were dismissed, and in December the Justice Department closed their investigation without pressing charges. An anonymous source said there was a lack of evidence against Hays, and that Ray's credibility was also an issue.

Douglas Applegate, the Ohio state senator chosen to replace Hays as the Democratic nominee, won the 1976 election and served until his decision to not run for re-election in 1994. Hays' marriage survived the uproar and he returned to his farm in Ohio, where he raised cattle and horses. Only two years after the scandal, he ran for the state house of representatives; his Republican opponent, George Contos, tried to use the scandal against Hays but without success. Hays served one term before being defeated in a re-election attempt. In 1980, he became chairman of the Belmont County Democratic Party, and the next year he was elected to the Belmont County Board of Education. In 1989, he died at a hospital in Wheeling, West Virginia after suffering a heart attack.

Sources: The Biographical Directory of the United States Congress, "McArthur Inquiry Sought In Capital" in the Toledo Blade on Jun. 25 1949, "Democrats Walk Out of House Probe" in the Pittsburgh Post-Gazette on May 25 1954, "The Lesson" in Time on Jun. 21 1954, "Report Card" in Time on Jul. 12 1954, "Work Done" in Time on Apr. 2 1956, "Ohio Congressman Walks Out of Ike's Middle East Huddle" in the Daily Collegian on Jan. 9 1957, "Hays, Headwaiter Return" in the Toledo Blade on Nov. 12 1963, "Ohio Mayor Says Lawmaker To Find Law Is Not A Joke" in the Toledo Blade on Feb. 20 1966, "Powell Acts May Bring Prosecution" in the Eugene Register-Guard on Dec. 22 1966, "Patman Pushed Out As Panel Chairman" in the Pittsburgh Post-Gazette on Jan. 23 1975, "Hays Is Charged With Misuse of Mail Privilege" in the Bryan Times on Jan. 5 1976, "Milestones" in Time on Apr. 26 1976, "Closed Session Romance On The Hill" in the Washington Post on May 23 1976, "Indecent Exposure On Capitol Hill" in Time on Jun. 7 1976, "Hays' Resignation Accepted" in the Ellensburg Daily Record on Jun. 21 1976, "How The Washington Post Got The Goods On Wayne Hays" in New York Magazine on Jun. 21 1976, "Liz Ray Could Be 'Adam Powell's Ghost:' Lawyer" in Jet on Jul. 15 1976, "Black Group Wants Hays Expelled" in the Bryan Times on Jul. 27 1976, "Study Reveals Third Marginal Hays' Staffer" in The Ledger on Aug. 5 1976, "Hays Quits Race, Hopes That Finishes Miss Ray" in the Eugene Register-Guard on Aug. 13 1976, "Wayne Hays Is Replaced" in the Spokane Daily Chronicle on Aug. 17 1976, "One Incumbent Loses" in the Bryan Times on Nov. 8 1976, "Elizabeth Ray" in the Boca Raton News on Sept. 1 1976, "Hays Resigns House Seat" in the Spokesman-Review on Sept. 2 1976, "Capitol Hill's Sex Scandal All Worn Out" in the Eugene Register-Guard on Dec. 9 1976, "Scandal Ads Backfire in Hays' Ohio Contest" in the Pittsburgh Post-Gazette on Oct. 21 1978, "Wayne Hays Elected To Ohio School Post" in the Spokesman-Review on Nov. 3 1981, "Wayne L. Hays of Ohio Dies at 77" in the New York Times on Feb. 11 1989, Ohio Politics by Alexander P. Lamis and Mary Anne Sharkey, The Betrayal of the American Right by Murray N. Rothbard and Thomas E. Woods, Philanthropic Foundations In The Twentieth Century by Joseph Charles Kiger, Encyclopedia of White-Collar and Corporate Crime by Lawrence M. Salinger

Sunday, June 28, 2009

William Lorimer: the fall of the "blond boss"


Image from bioguide.congress.gov

William Lorimer had served about a year in the United States Senate before he was put on the defensive. Openly referred to as the "blond boss" of Chicago, Lorimer maintained his innocence through three inquiries into whether he had been fairly appointed to his seat. Though he had always been popular in his home district, perhaps by enforced methods, it did little to help him on the national stage.

Lorimer was born in Manchester, England in 1861 and came to the United States with his parents when he was five years old. The family moved to Chicago in 1870, and Lorimer entered a variety of low-level jobs. Most sources say he worked as a newsboy, a bootblack, and in the city's packing houses. Others include titles as laundry solicitor and department store cash-boy in the list.

Lorimer was able to lift himself into city politics when he was still very young. After landing a job as a streetcar conductor, he organized the Street Railways Employees' Benevolent Association and was elected constable in 1886. Dabbing in real estate and construction work, he was named assistant superintendent of water main construction the next year and superintendent of the water department soon after. His first stab at elected office, a race for a superior court clerk's position, was met with failure in 1892.

Two years later, Lorimer set his sights higher and ran as a Republican for the House of Representatives. The Chicago Journal did not spare words in their opinion of the burgeoning boss's fitness for office: "His only demonstrated qualification of any kind is a 'pull' in Democratic wards," the paper stated. "He knows considerable about carrying primaries, but he knows no more about political, industrial, or social subjects than does a hole in the ground which doesn't care what goes down it." Lorimer's working class background and lack of serious education may have been seen as drawbacks. But his political machine, which exploited the largely illiterate immigrant population, organized wards in the city and Cook County, and promised rewards of public grants and contracts, probably helped with his election to the House.

Lorimer was returned to the House in 1896. The New York Times quoted him as saying in the month after the election that he would "quit politics for good" after casting a vote for Speaker of the House and a tariff bill. There was also speculation that he would run for mayor of Chicago. Neither turned out to be true, as Lorimer went on to win re-election in 1898 with the help of a circus-like campaign, where large tents were set up with music and political jokes. In 1900, Lorimer failed to win re-election, but came back in 1902. In a glimpse of things to come, his Democratic opponent charged that questionable tactics had been used in the race; however, Lorimer was able to keep the seat and win the next four elections.

In January of 1909, the Illinois legislature took up deliberations to choose a senator, as the term of Republican Senator Albert Jarvis Hopkins was set to expire in March of that year. The matter soon became a protracted battle, as Hopkins was able to come within 20 to 30 votes of confirmation but never achieved the majority needed to break the deadlock. Lorimer's name was not introduced into the process until much later, when a single vote in favor of him on one ballot hinted that he might be under consideration. On the legislature's 95th ballot, Lorimer was appointed senator after 108 members (55 Republicans and 53 Democrats) voted in favor of him. Ninety legislators were opposed.

The confirmation was not without incident; U.S. District Attorney and former Illinois Lieutenant Governor William A. Northcott was escorted from the floor by policemen after lobbying on behalf of Hopkins. Democratic state representative Lee O'Neil Browne took offense when another legislator insinuated that improper means had been used to attain the result. "I do not know what the gentleman means, but if he means that improper influences have been used then he is a liar," said Browne. "I hope he did not mean it. But if he did and will repeat his words to me outside of this hall I will pledge you that one of us will never make those remarks again."

When the vote was taken, the New York Times referred to Lorimer as an "ex-boss," since his ally-turned-rival Charles S. Deneen had brought together enough factions to win the state's gubernatorial race in 1904. However, the paper also mentioned that he remained strong in his own district. During the 61st Congress, which stretched through the deliberations of the Illinois legislature, Lorimer chaired the Committee on Expenditures in the Department of the Navy. Entering the Senate in June of 1909, he chaired the Committees on Mines and Mining as well as the Pacific Islands and Puerto Rico.

In April of 1910, the Chicago Tribune published a confession by Democratic state representative Charles A. White that he'd received $1,000 to vote for Lorimer during the Illinois legislature's debate. White said he'd also gotten $900 out of a "jackpot" used to influence the nomination process once the legislature had closed its session. Over the course of the next month, two more Democratic representatives said they had also been bribed, and a state senator said he'd received $2,500 for his vote. Though the confessors charged two other legislators in the matter as well, they all agreed that one man was the principal actor in the scandal: Browne, the Democratic leader of the lower house who had so pugnaciously denied any wrongdoing the previous year.

Lorimer, of course, denied the accusations and said they were part of an attempt to undermine the La Salle Street Trust and Savings Bank, which he had started in 1910. The Tribune reported in July that a vote-buying scandal may have been playing out on both sides: another plan had allegedly been in the works to buy 17 Democratic votes for Hopkins at $2,000 a pop, but the plot was aborted by the Speaker of the Illinois legislature and the state's Democratic National Committeeman. Both men denied there had ever been such a scheme. In September, Browne was acquitted on bribery charges after two trials.

Lending a boost to the scandal's publicity was a very high-level snub of Lorimer in September of 1910. Ex-President Theodore Roosevelt, noting that Lorimer was to be a guest of honor at a dinner of the Hamilton Club in Freeport, Illinois, said he would not attend if the accused senator would be there. Lorimer's invitation was immediately withdrawn, and Roosevelt's speech at the dinner blasted government corruption. In the Lorimer case, he implicitly expressed his belief that Lorimer was not entitled to the seat by saying, "I defy any honest man of intelligence not to come to the conclusion that the Legislature whose doings have been exposed was guilty of the foulest and basest corruption and, therefore, of the most infamous treason to American institutions."

The Senate Privileges and Elections Committee investigated the matter in September and October, and in December issued the determination that the bribery was not enough to take away Lorimer's majority in the legislature's vote, and thus he had been fairly elected. A minority report in January of 1911 said the senator was not entitled to his seat, and Republican Senator Elihu Root of New York criticized the majority conclusion as faulty. It didn't matter that Lorimer was not personally involved in the bribery, said Root, and it was not the committee's job to determine whether the Tribune had made a solid enough case; in the end, the election was fraudulent and Lorimer did not have the right to be in the Senate.

Root was not able to outshine Lorimer's memorable three-hour speech, which he made in the Senate in his own defense that same month. Lorimer recalled his poor upbringing, and credited the numerous relationships he had forged in Chicago over the years as the reason for his popularity among Democratic state legislators. He had helped one legislator get an appointment so he could care for his sick wife, he said; another was an associate of a former newsboy whom Lorimer had befriended in his youth. Democrats also supported his efforts to create a waterway from Chicago to the Mississippi River, he argued. When the Senate took up the issue in March, they voted 46-40 that Lorimer had been duly elected.

Meanwhile, the Illinois state senate had begun its own investigation in January of 1911. The biggest revelation of this effort was the discovery of more information on the "jackpot" fund that was used to elect Lorimer. Clarence S. Funk, general manager of the International Harvester Company, said Chicago lumber magnate Edward Hines had asked him to chip in $10,000 toward a $100,000 fund set up for Lorimer's appointment. The senate concluded in a 39-10 vote in May that Lorimer had not been fairly elected, and in June the legislature sent a resolution to the Senate asking for the investigation to be reopened.

Some members of the Senate had been keeping an eye on the Illinois legislature's work, and had already gotten that idea. In April, before the legislature had even issued their conclusion, Republican Senator Robert La Follette asked for the case to be reopened. In June, a select committee of eight senators from the Committee on Privileges and Elections was appointed to look into the 1909 appointment.

Cyrus McCormick, President of the International Harvester Company, confirmed Funk's story to the committee. The members also heard accusations that Hines had bragged about getting Lorimer elected as a way of keeping a high tariff on lumber. Hines was alleged to have said that the appointment "cost us a lot of money, but he is well worth it to all of us." Edward Tilden, President of the National Packing Company and a bank director, was accused of collecting contributions to recoup the Lorimer backers. Hines, in his testimony before the committee, threw some blame on President Howard Taft, saying he had urged support of Lorimer in order to have his vote in favor of the Aldrich-Payne tariff bill; Taft issued a denial of the accusation.

When the investigation concluded in February of 1912, five members of the committee concluded that Lorimer could keep his seat, while three were against it. Despite this finding, Lorimer was on much shakier ground following this third investigation. The alleged corrupt vote count from the legislature's 1909 action was up to 10: enough to have affected the final tally. Vice President James Sherman even asked him to resign, saying it would spare the Republican Party serious ill effect before the presidential election later in the year. Lorimer refused. "I was elected to the United States Senate honestly, and I would rather stand up and be counted out by my colleagues than to yield to any pressure to resign under fire," he said.

The Senate debate on the issue took place in June and July to allow the primaries to take place during the spring. Lorimer went on the offensive while speaking on his own behalf in July, criticizing senators who had been seeking his resignation and accusing the Chicago newspapers of turning public opinion against him. The "trust press," he said, did not pay their fair share of taxes. He charged Governor Deneen with taking more in fees than he deserved. He said Taft had treated him poorly, though the President apparently only remarked that he hoped the Senate would vote on the side of honesty and decency in the matter. Recalling Teddy Roosevelt's statements in 1910, Lorimer said, "He wants to get rid of the bosses. He doesn't want them on his side--especially if the people know him."

Soon after, the Senate voted 55-28 that "corrupt methods and practices were employed in [Lorimer's] election, and that the election, therefore, was invalid." Thus expelled, Illlinois went on with one senator until March of 1913, when Republican and former Illinois Lieutenant Governor Lawrence Yates Sherman was elected to replace him.

Lorimer's troubles were not quite over. In 1914, the La Salle Street Bank and Trust failed, and Lorimer and other bank officials were indicted on charges that they misappropriated funds. Of the hundreds of thousands of dollars lost in the collapse, Lorimer was accused of making off with $70,000. He was acquitted after a trial, but the bank's vice president, William B. Munday, was convicted and served part of a prison sentence. In 1923, the indictments against both men were withdrawn.

Though he expressed interest in returning to Congress in 1916 and 1919, Lorimer's time in government was over. He returned to private business, getting involved in the timber industry and representing an American syndicate advocating railroad concessions to South America between 1921 and 1924. He did go to Washington again in 1927 to speak on behalf of the waterways issue he had consistently advocated, and in 1928 appeared in Congress on a flood control issue. He was met with some hostility by Congressman John Schafer, a Wisconsin Republican, who said Lorimer had been expelled from Congress and that his lumber company owned land in the area where the government could potentially buy up floodplains. Lorimer said he owned 1,000 acres in the area, but would be willing to give up the land rather than sell it.

In 1934, Lorimer collapsed in a Chicago railroad station, dead of a heart condition.

Sources: The Biographical Directory of the United States Congress, "A Republican Nominee for Congress" in the New York Times on Aug. 13 1894, "Intends to Quit Congress" in the New York Times on Dec. 9 1896, "The Jesters of Chicago" in the New York Times on Oct. 2 1898, "To Contest An Election" in the New York Times on Dec. 21 1902, "Lorimer A Senator" in the New York Times on May 27 1909, "Tells of Bribes to Elect Lorimer" in the New York Times on May 1 1910, "Lies, Cries Lorimer; Another Confesses" in the New York Times on May 29 1910, "Tried to Bribe Democrats" in the New York Times on Jul. 29 1910, "Roosevelt Ban Put on Lorimer" in the New York Times on Sept. 9 1910, "Root Tells Senate Lorimer Must Go" in the New York Times on Feb. 4 1911, "Issue Taft Denial of Aid to Lorimer" in the New York Times on Mar. 30 1911, "The Lorimer Case Again Before The Senate" in the New York Times on Apr. 7 1911, "Says Hines Boasted He Elected Lorimer" in the New York Times on Apr. 14 1911, "Refused to Give $10,000 For Lorimer" in the New York Times on Jun. 21 1911, "The Lorimer Case" in Volume XLV (April to September 1911) of Munsey's Magazine, "Lorimer Rejects Plea to Resign" in the New York Times on May 26 1912, "Lorimer at Bay" in the New York Times on Jul. 12 1912, "William Lorimer Indicted" in the New York Times on Oct. 9 1914, "National Affairs: Old Blond Boss" in Time on Apr. 30 1928, "Ex-Senator Lorimer Dies in Rail Depot" in the Pittsburgh Post-Gazette on Sept. 14 1934, History of the Republican Party in Illinois 1854-1912 by Charles A. Church, The Case of Frank L. Smith: A Study in Representative Government by Carroll Hill Wooddy, Compilation of Senate Election Cases from 1789 to 1913

Saturday, June 13, 2009

Thomas J. Dodd: dined and downed

Dodd and son, Chris, in 1946. Image from newsweek.com

In the midst of corruption allegations, Thomas Joseph Dodd declared, "My conscience is clear...I do not believe that anybody can look me in the eye and say I did wrong." With a solid background in legal work, including the prosecution of war criminals, the statement may have seemed accurate. But when an ethics committee determined that Dodd had indeed done wrong, he was buried by a nearly unanimous avalanche of votes in the Senate advocating punishment.

A native of Norwich, Connecticut, Dodd was born in 1907 and went on to graduate from St. Anselm's Preparatory School in 1926, Providence College in 1930, and Yale University's law school in 1933. His first brush with political affairs came at Yale, where he organized a group in support of President Franklin D. Roosevelt's New Deal programs. It would be almost two decades before Dodd truly re-entered that field, however. He served as a special agent for the Federal Bureau of Investigation between 1933 and 1934 and state director for the National Youth Administration, an agency seeking to create educational and employment opportunities for young people during the Great Depression, from 1935 to 1938. From 1938 until 1945, he served as an assistant to five Attorneys General in the Justice Department. Here, he helped create a civil rights division and prosecute cases against the Ku Klux Klan and on behalf of labor unions. During World War II, Dodd also handled espionage, sabotage, and industrial fraud cases.

At the end of the war, Dodd became vice-chairman of the Board of Review, and later executive trial counsel for the Office of the United States Chief Counsel for the Prosecution of Axis Criminality: the U.S. team in the Nuremberg Trials of 1945 and 1946. Dodd was able to contribute directly to the prosecution of Nazi war criminals, focusing on proving the charge that German political, military, and industrial leaders had conspired to wage an aggressive war. He also determined that the will of Paul von Hindenburg, late President of the Weimar Republic, had been falsified by the Nazis to make it appear to support the rise of the National Socialist government. Among his other tactics, Dodd caused a bit of a stir by displaying the shrunken head of a concentration camp victim at the proceedings.

For his service at Nuremberg, Dodd received a Presidential Citation, U.S. Medal of Freedom, and Czechoslovakian Order of the White Lion. The greatest effect of the proceedings, however, was to inculcate a strong sense of anti-Communism in him. Dodd saw the Soviet government and its tactics as similar to those of the Nazis, namely in their domination of Eastern European countries following the war. When the Soviet-controlled Polish government also tried to present Dodd an award for his service, he refused to accept it. He was later given the Commander of the Order of the Merit award by the President of Italy for his counsel on preventing the spread of Communism there. Nevertheless, Dodd was not so virulently anti-Communist to go along with McCarthyism, and campaigned for Connecticut Senator Brien McMahon as Joe McCarthy tried to uproot him.

After Nuremberg, Dodd returned to Connecticut and practiced law between 1947 and 1953. He contemplated running for Governor in 1948, but never officially did so and later rejected an offer to be Lieutenant Governor. In 1952, Dodd turned his attention to the federal government and was elected as a Democrat to the House of Representatives. He was re-elected in 1954, but lost a 1956 attempt to unseat Republican Senator Prescott S. Bush (father of future President George H.W. Bush). During this time in Congress, Dodd served on the Government Operations and Foreign Affairs Committees and the Select Committee to Investigate Communist Aggression. In 1958, he again ran for a Senate seat and successfully defeated Republican incumbent William A. Purtell. He was re-elected in 1964.

While in the Senate, Dodd served on the Foreign Relations, Judiciary, and Aeronautical and Space Sciences Committees. He also co-chaired a subcommittee on internal security and chaired another one on juvenile delinquency. He displayed a mix of beliefs, including support for civil and voting rights, limiting violence of television, stopping the flow of illegal drugs, and the United Nations (though his support for the organization later waned, as he believed it was becoming dominated by poorer nations).

Dodd continued to be a fervent anti-Communist while in Congress. In 1959, he opposed a visit by Soviet Premier Nikita Khrushchev to the United States, saying such a visit would be seen as an acceptance of Soviet domination of Warsaw Pact countries. "What would the Senate and the country have thought if in 1939 President Roosevelt had invited Adolf Hitler to a barnstorming tour of the U.S., fresh from conquest of Czechoslovakia, Austria and Poland and in the midst of his extermination of millions of Jews?" asked Dodd. The Senator also criticized the John F. Kennedy Administration for not doing enough to remove Fidel Castro from Cuba. Most notably, Dodd was a stalwart supporter of the Vietnam War; when he learned that the U.N. Secretary-General was opposed to the war, Dodd called for his resignation. While this made him a good friend of President Lyndon B. Johnson (who even considered Dodd as a Vice Presidential candidate for the 1964 election), it created some tension within the Democratic Party. Dodd's support for the war was enough to merit his inclusion in "The Draft Dodger Rag," a protest song by Phil Ochs which included the lyrics, "I'm just a typical American boy from a typical American town / I believe in God and Senator Dodd and keeping old Castro down."

Dodd was also well-known for his attempts to secure gun control legislation. In 1963, he co-sponsored legislation that would increase requirements for gun dealers and ban mail-order pistols. When President Kennedy was assassinated by a sniper with a mail-order weapon in November of that year, Dodd expanded his proposal to include a ban on mail-order rifles and shotguns as well. The bill died in committee in 1964, but was reintroduced by Dodd in 1965. The bill finally passed as the Gun Control Act in 1968. Though more watered-down than its original intent, the legislation still effectively banned mail-order firearms sales; added an age limits for gun sales and prohibited certain people, such as criminals, from purchasing them; raised the dealer fee to restrict gun traffic to legitimate sellers; and restricted the marketing of heavy-hitting weapons such as bazookas and mortars.

When the first accusations began flying at Dodd, they were fired from the newspaper pages. In January of 1966, investigative columnists Jack Anderson and Drew Pearson began blasting Dodd and did not let up for another 17 months. Thanks to four whistleblowers who had been on Dodd's staff, the columnists had managed to copy thousands of documents from the Senator's office. They accused Dodd of getting paid by Julius Klein, a lobbyist for West German interests, to fly to Germany to reassure his clients. He was also charged with receiving untaxed contributions and gifts from several companies, including firearms companies opposed to his gun control legislation.

Enraged, Dodd filed a libel lawsuit against Anderson and Pearson and invited an investigation by the Senate Select Committee on Standards and Conduct, the first time the committee would conduct an investigation since it was founded in 1964. Dodd said the visit to Germany was a legitimate trip related to business on the internal security subcommittee, and he was cleared of wrongdoing in that matter in June of 1966. In March of 1967, the committee began reviewing accusations of financial misconduct on Dodd's part. On those counts, he was not so fortunate.

In April of 1967, the committee recommended that Dodd should be censured. They found that Dodd had accepted free use of a vehicle from a constituent for 21 months, accepted $8,000 from International Latex Corporation, and billed the Senate for $1,763 in trips that had already been paid for by private organizations. Receiving the most attention was the charge by the committee that Dodd had diverted about $116,000 out of $450,000 in campaign funds to personal use. The money had not been reported or taxed, and it had mostly been raised by testimonial dinners between 1961 and 1965.

In his defense, Dodd said that the people who attended the dinners knew that he was not a wealthy person and that the money could be used on personal matters. He said the double-billing of trips was simply a matter of bad bookkeeping. Going on the offensive, Dodd also said the pressure was a result of "dishonorable and vindictive ex-employees" and a press hostile to his attitude on the Vietnam War.

Perhaps even more in favor of Dodd's exoneration than the man himself was Democratic Senator Russell B. Long of Louisiana, who persistently defended Dodd during the proceedings. Long said half the members of the ethics committee would not come away unscathed if they were given the same treatment as Dodd, and that Dodd had spent his own money on the campaign and deserved to recoup some of the funds through what he raised. A son of Louisiana Governor Huey Long, there was some speculation that Russell Long's support was due to his father's impeachment proceedings in 1929 or Dodd's support of Long during a debate over Long's presidential campaign fund in 1966.

Whatever the reason, Long attempted to introduce a resolution that would admonish Dodd rather than censure him. The proposal was overwhelmingly defeated in a 92-2 vote. A suggestion by Republican Senator John G. Tower of Texas to reduce the punishment to a reprimand was met with more support, but still failed 87-9. When the vote was finally called, the Senate decided 92-5 to censure Dodd, the sixth such punishment it had ever given. The Senate also decided 51-45 against any action on the double-billing accusation.

No penalties were imposed, and Dodd was allowed to keep his seniority. Adam Clayton Powell, Jr., under fire in Congress at the same time, said he would "accept with reluctance" the same punishment meted out to Dodd. The Senator had some degree of vindication after the incident. The Senate committee also rebuked the staffers, saying the unauthorized removal of documents was "reprehensible," "a threat to the orderly conduct of business of a public office," and "constitutes a breach in the relationship of trust between a senator and his staff." His libel charge against the two columnists fell through, but a judge found that he was entitled to collect damages for theft. In the year after the scandal, the Senate adopted a formal code of conduct that allowed members to accept funds from political events for personal use.

Dodd was also investigated for potential tax evasion in the years between 1961 and 1965, but not charged. However, this investigation and the censure likely contributed to Dodd's loss of the Democratic nomination for the 1970 Senate race. In that year, the party offered the nomination to Joseph D. Duffey for a race against Republican Lowell P. Weicker, Jr. Dodd nevertheless entered as an independent candidate, and though his hawkish views probably siphoned votes from Weicker as well as Duffey, the split race allowed Weicker to win the election. In 1971, about five months after leaving Congress and a week after telling a former press aide, "I'm not going to live very long," Dodd died of a heart attack.

A stadium in Dodd's hometown is named for him. His son, Christopher, followed in his footsteps and is currently a Senator from Connecticut and another son, Thomas Jr., served as the U.S. ambassador to Uruguay and Costa Rica. In 1995, both sons and President Bill Clinton were present at the dedication of the Thomas J. Dodd Research Center at the University of Connecticut. According to the center's website, a prize named for Dodd is biannually awarded to a group or individual who has made significant strides in furthering international justice and human rights, ideals they say the late Senator championed.

Sources: The Biographical Directory of the United States Congress, The Thomas J. Dodd Research Center, The U.S. Embassy, "Minority View" in Time on Aug. 24 1959, "Private Lives" in Time on Jul. 1 1966, "The Undoing of Dodd" in Time on May 5 1967, "Senate Refuses, 92-2 To Admonish Dodd" in the St. Petersburg Times on Jun. 22 1967, "Senate Again Rejects Easing Dodd Censure" in the St. Petersburg Times on Jun. 23 1967, "Dodd Censured by Senate" in the Spokesman-Review on Jun. 24 1967, "Powell Would 'Reluctantly' Accept Censure" in the Rome News-Tribune on Jun. 28 1967, "Not Libel, Theft" in Time on Jan. 26 1968, "U.S. Drops Tax Probe of Sen. Dodd" in the Pittsburgh Post-Gazette on Dec. 24 1969, "Thomas Dodd Dead At 64" in the Evening Independent on May 24 1971, "Once a Disgraced Senator, Dodd Gets a Presidential Salute" in the New York Times on Oct. 16 1995, Legacy to Power: Senator Russell Long of Louisiana by Russell T. Mann, The Whistleblowers: Exposing Corruption in Government and Industry by Myron Peretz Glazer and Penina Migdal Glazer, On Capitol Hill: The Struggle to Reform Congress and its Consequences 1948-2000 by Julian E. Zelizer, Gun Violence in America: The Struggle for Control by Alexander DeConde

Thursday, May 14, 2009

Evan Mecham: the faux pas factory

Image from sonoranalliance.com

Governor Evan Mecham's legacy, such as it is, seems mostly to be his ability to offend any state resident who wasn't a white, straight, conservative male. While these embarrassments started his decline, it was a financial scandal that removed him from office.

Mecham was born in Duchesne, Utah in 1924, and attended the Utah State Agricultural College. He left school before graduation to join the U.S. Army Air Corps during World War II, and became a fighter pilot. He survived being shot down on one occasion and was held prisoner for 22 days; he was later awarded a Purple Heart and Air Medal for his service.

In 1947, Mecham returned to school, this time at Arizona State University. Once again, he left early, this time to open up a car dealership in Ajo. It was successful enough that he moved to Glendale later on to open another one, and the business made him a millionaire. Less successful were several short-lived newspapers Mecham launched.

In 1952, Mecham took his first stab at politics with a run for the state house of representatives. In 1960, he was elected as a Republican to the state senate and served one term. In 1962, Mecham won the Republican primary for U.S. Senate on a platform critical of the United Nations and a recent Supreme Court decision limiting prayer in public schools. However, he failed to gain enough support from the party to succeed in the general election. Mecham also made four unsuccessful bids for governor in 1964, 1974, 1978, and 1982.

It took a third party to help Mecham win the gubernatorial race in 1986. In that year, independent candidate Bill Schulz split the Democratic vote and brought Mecham into office despite the lack of a clear majority. Mecham ran on a platform of tax relief and political reform, and urged such measures as lowering taxes, encouraging economic development, establishing a 50-year plan to address the state's water needs, investing in solar power, decreasing state spending, and phasing out state offices that were not needed. While in office, he established an Arizona trade and tourism office in Taiwan, supported legislation allowing the governor to choose pro-tem judges to handle drug cases, and advocated raising the highway speed limit from 55 to 65 miles per hour.

Mecham's most well-known and infamous decision was announced at his first State of the State address in January of 1987: he declared Martin Luther King, Jr. Day canceled as a state holiday. In 1983, President Ronald Reagan had signed a bill declaring the third Monday in January a national holiday to honor the late civil rights leader. However, the decision followed three years of debate in Congress, and the holiday did not officially go into effect until 1986. Mecham said he had been advised that the state could be sued for the $3.5 million in lost productivity from the new holiday if it remained in place. He further contended that his predecessor, Democratic Governor Bruce Babbitt, had illegally created the state holiday by executive order after the state legislature had rejected the measure by one vote.

The result was a boycott of Arizona by civil rights and other groups, with 45 conventions choosing to cancel arrangements they had made in the state. These groups included the National Newspaper Publishers Association, which represented 134 black-owned newspapers and canceled a convention in Arizona; the Democratic Party, which moved a finance council meeting from Tucson to California; and the National Black Nurses Association, which also moved its convention out of Arizona. Looking back on the debacle, Time reported that Mecham's attempt to save $3.5 million had resulted in $25 million in lost business due to the boycotts.

Mecham was also criticized for nominating people with problematic backgrounds for state positions. There was a liquor commissioner suspected of involvement in a murder in Mexico, a special assistant who left upon being charged with extortion, a tax commissioner who had not filed his own state taxes, and a state investigator twice court-martialed while a Marine. Receiving the most attention was an education commissioner who said teachers should not contradict the beliefs of a student, even if the student believed the world was flat.

As Mecham's term progressed and more troubles befell him, newspaper articles noted the increasing number of groups he offended with off-color remarks or other actions. The list included blacks, women, gays, liberals, Jews, Japanese-Americans, and Catholics. He suggested that Jews should face up to the fact that they were living in a Christian nation; that working women led to increased divorce rates; and that the eyes of visiting Japanese businessmen "went round" when they heard of the country's golf courses. He defended himself against charges of racism, stemming from his decision over Martin Luther King, Jr. Day and his support of a textbook that made a reference to black children as "pickaninnies." Time referred to him as a "veritable faux pas factory." A joke book began circulating with such quips as, "What do Mecham's political appointees have in common? Parole officers." Across Arizona, motorists sported bumper stickers reading, "Pickaninny: what we did for Governor."

With the questionable appointments and offensive statements as its basis, a recall effort began within the first year of Mecham's term. Political leaders, including former Republican Senator Barry Goldwater, Democratic Congressman Morris Udal, and ex-Governor Babbitt joined in the cry for his resignation. Mecham dismissed the recall effort, saying it was doomed to fail because the person who started it, Republican businessman Ed Buck, was gay. He also said he enjoyed the support of former Republican Governors Jack Williams and Paul Fannin, then a U.S. senator.

Nevertheless, the recall signatures swelled to 350,000 by November of 1987: 6,000 more than the number of votes Mecham received in the general election and 130,000 over the minimum limit needed to certify the petition and establish a recall election in May of 1988. Adding insult to injury was the "Evan Mecham Eco-Terrorist International Conspiracy," a group named for the governor that made its debut act in late 1987 by sabotaging ski lifts at a resort in Flagstaff. Despite his rising unpopularity, Mecham declared, "These people don't have a prayer of getting me out of this office because the people are with me."

The recall had been well underway, but it was spurred on in October of 1987 when it was revealed that Mecham had not reported a $350,000 loan to his campaign by developer and lawyer Barry Wolfson. State law required elected officials to report any debt of $1,000 or more, together with the identity of the lender. The money had been loaned in 14 promissory notes, and it was questioned whether Wolfson's support had influenced two appointments to the State Housing Finance Review Board. The board's duties included awarding bids of industrial development bonds for low-income housing, and at the time Wolfson was being sued for fraud and racketeering in the alleged misuse of $368 million in such bonds. In January of 1988, Mecham was criminally indicted on six counts of perjury, fraud, and filing a false campaign report.

Both the house of representatives and senate in the state legislature were dominated by Republicans, but the legislators had had enough. In February of 1988, the house of representatives voted 46-14 to impeach Mecham on the basis of the $350,000 loan. The house also charged him with inhibiting an investigation into a death threat against a former lobbyist who testified before the grand jury about the loan, as well as an illegal loan of $80,000 of state money to buoy up his car dealership. Mecham was removed from office, Democratic Secretary of State Rose Mofford was named acting governor of Arizona, and the recall election (now a moot point) was called off.

In April, the state senate voted 21 to 9 to convict Mecham on charges related to obstruction of justice and the illegal loan. It dismissed the charge related to the $350,000 so as not to inhibit the upcoming criminal trial on that issue. Mecham was officially removed from office, the first governor to be impeached in 59 years, on the anniversary of Dr. King's assassination. However, a senate vote to prevent him from running for political office again failed to achieve the two-thirds majority necessary to pass. The senate also approved payment of about $202,000 to compensate Mecham for the legal fees he incurred while governor.

Mecham had claimed that the failure to report the $350,000 loan had been an innocent mistake on the part of his brother and campaign manager, Willard Mecham. The prosecution argued that Mecham had been willingly trying to conceal the funds, but a jury acquitted him of all criminal charges. The loan itself had been repaid in full by the end of 1987.

Though Mecham's decision to cancel the Martin Luther King, Jr. holiday is seen as one of his biggest blunders, the issue over the holiday was not quite over. Three months after impeaching Mecham, the senate rejected a bill to establish the day as a state holiday by two votes, with some legislators complaining that Democratic efforts to create the holiday were heavy-handed. The holiday was finally ratified in Arizona in September of 1989 when Mofford signed it into law; at that point, Arizona was the 47th state to recognize the holiday.

Mecham tried unsuccessfully to run for governor once more in 1990, and also failed to take the Republican nomination for the Senate from the incumbent, John McCain, in 1992. Three years later, he became the chairman of the Constitutionalist Networking Center, an organization advocating the election of people who were strict constructionists in regards to the U.S. Constitution. He spent much of his time saying that he had been the victim of conspiracy, working for a time as a radio talk show host and newspaper columnist. In 1999, he published a book entitled Impeachment: The Arizona Conspiracy, where he said his impeachment was "pure and simple raw political power exercised by those who wanted to remain in control."

Besides the joke books and bumper stickers, Mecham's brief term also sparked an amendment to the Arizona constitution that required a runoff election in the event that no majority winner emerges, as was the case in Mecham's gubernatorial contest. In 2008, Mecham died in Phoenix after suffering for several years from Alzheimer's disease.

Sources: The American Presidency Project, National Governor's Association, "ML King: Slain Civil Rights Activist Is Finally Honored With National Holiday" in the Daily Collegian on Jan. 17 1986, "The GOP's Silver Lining" in Time on Nov. 17 1986, "Headliners: A Holiday Dispute" in the New York Times on Dec. 28 1986, "Newspaper Group Calls Off Meeting in Arizona as Protest" in the New York Times on Jan. 22 1987, "Black Nurses Shun Arizona" in the New York Times on Mar. 7 1987, "Mecham Campaign Loan Subject of Inquiry" in the New York Times on Oct. 22 1987, "Recall Backers Have The Signatures, But Mecham Just Scoffs" in the Deseret News on Oct. 25 1987, "Mecham Not 'Knowingly Guilty'" in the Deseret News on Oct. 26 1987, "Evan Mecham, Please Go Home" in Time on Nov. 9 1987, "Mecham Repays Controversial Loan" in the Washington Post on Dec. 13 1987, "House Impeaches Arizona Governor" in the New York Times on Feb. 6 1988, "Arizona Senate Ousts Governor, Voting Him Guilty of Misconduct" in the New York Times on Apr. 5 1988, "Senators in Arizona Vote to Pay Fees For Ousted Governor" in the New York Times on Apr. 7 1988, "Mecham Cleared of Concealing Loan" in the Pittsburgh Post-Gazette on Jun. 17 1988, "Arizona 47th State to Honor Dr. King With Holiday" in the Los Angeles Times on Sep. 23 1989, "Evan Mecham, Ousted Governor, Dies at 83" in the New York Times on Feb. 23 2008, "King Holiday Loses Again in Arizona" in the St. Petersburg Times on Jul. 2 1988, "Evan Mecham, Ousted Governor, Dies at 83" in the New York Times on Feb. 23 2008, "Evan Mecham, 83; Was Removed as Arizona Governor" in the Washington Post on Feb. 23 2008, Encyclopedia of Terrorism by Harvey W. Kushner, Biographical Dictionary of American Newspaper Columnists by Sam G. Riley

Sunday, April 12, 2009

H. Guy Hunt: the accidental governor

Image from encyclopediaofalabama.org

The first Republican to occupy the Governor's office in Alabama after a long post-Reconstruction Democratic domination, Harold Guy Hunt was also the first Governor in the state to be removed from office.

Born in 1933 at Holly Pond in Alabama, Hunt served in the U.S. Army during the Korean War. Working as an Amway salesman and farmer, he was ordained as a Primitive Baptist preacher in 1958 and worked part-time in that capacity. Though he did not go to college, Hunt received honorary doctor of law degrees from Troy State University, the University of North Alabama, and Alabama A&M in 1987.

After losing a bid for state senate in 1962, Hunt was elected probate judge of Cullman County in 1964 and held the post for the next 12 years. He supported Ronald Reagan during his presidential aspirations, serving as the state chairman of Reagan's campaign in 1976 and his successful 1980 race. In return, Reagan appointed him state executive director of the Agricultural Stabilization and Conservation Service (a part of the Department of Agriculture) in 1981. Hunt ran for Governor as the Republican candidate in 1978, losing to Democratic candidate and former Republican Fob James, Jr.

Hunt left the agricultural post in 1985 to pursue another gubernatorial campaign in 1986. State politics up to this point had been dominated by the Democratic Party, with the last Republican Governor serving in 1874. Noted segregationist George Wallace, who had served four terms comprising 16 of the prior 24 years, announced he would not run that year. Attorney General Charles Graddick, a conservative and former Republican, faced off against Lieutenant Governor Bill Baxley and won the Democratic nomination by 8,756 votes out of about 900,000 cast.

The narrow victory was contested in federal court after a black couple filed suit, saying Graddick had used his position in the government to minimize the black vote. Shortly before the runoff, Graddick issued an opinion as Attorney General that Republican voters should not be barred from participating in the Democratic runoff, a violation of the 1965 Voting Rights Act. The court found that the move had attracted enough conservative support to sway the result to Graddick over Baxley, whose base relied more on black, liberal, and union voters. Graddick's name was removed from the ballot and the nomination was awarded to Baxley.

Hunt had won the Republican nomination from a pool of less than 33,000 voters. For a time, it seemed that even those supporters might be split by Graddick, who threatened to run as a third party candidate. Instead, Graddick decided to drop out of the race, and Hunt found himself appealing to Graddick's conservative white supporters. He won the election with 56 percent of the vote.

Hunt came into office with the goals of bringing more business into the state and improving education. He established a tax reform commission, as well as several committees to look into improvements in education. However, educational leaders in 14 of the state's poorer counties sued the government, arguing that government funds were not equitably distributed. The court agreed, ordering the state to start remedying the problem.

Hunt also pledged that his administration would be "color blind," but was criticized by some Democrats for appointing only one black person in the 23 cabinet positions. He was further criticizing for his support of flying the Confederate flag from the state Capitol building, a practice Wallace had started in defiance of the civil rights movement. The flag was later removed after a court decision. In 1990, Hunt won re-election over Alabama Education Association leader Paul Hubbert. In that race, Republicans were accused of playing off race fears by circulating photos of Hubbert with black political leaders.

Much of Hunt's second term was consumed by controversy over whether he had violated state ethics laws. The investigation began after Hunt was found to have used a state plane to travel to preaching engagements across the South, where he was paid with cash donations. Hunt wrote a check for the expenses and dismissed the controversy as party politics. He also tried to have the investigation stopped on the argument that the ethics probe compromised the separation of powers in the state government, but the court of appeals ruled the investigation legal in 1992. In December of that year, he was indicted on 12 theft and conspiracy charges and one ethics charge. Only the ethics charge could go forward, as the statute of limitations had run out on the other counts.

Hunt went to trial in April of 1993. The remaining felony charge accused him of diverting $200,000 of a tax-exempt $800,000 inaugural fund to banks near his home for personal use. The items ranged from mortgage payments and cattle feed to a riding lawnmower and marble shower stall. The defense argued that Hunt had used the inaugural fund to legally pay back money advanced for a gubernatorial campaign.

The jury found Hunt guilty; the felony conviction automatically expelled him from office and promoted Lieutenant Governor James E. Folsom, Jr., a Democrat (and, at the time of this article, Lieutenant Governor of the state once again). The judge had instructed the jury that excess campaign funds could not legally be used for personal payments, a statute Republicans argued was not regularly enforced. "For a year and a half now practically the whole emphasis of that office has been to try to find something on me," Hunt said. In May of 1993, he was sentenced to five years of probation, 1,000 hours of community service, and a $211,000 fine.

Hunt unsuccessfully appealed the case. In 1997, the Alabama Board of Pardons and Paroles granted him a pardon on the basis of innocence. However, no judge or district attorney was willing to sign the order. The next year, Hunt sought to end his probation four months early. Instead, a judge extended it by five years because he had only paid about $4,200 off the fine.

One month after the judge's decision, Hunt's attorney produced a check paying off the remaining balance; the money had been collected from donors sympathetic to the ex-Governor. Things moved swiftly after that. One day after his probation was lifted, Hunt was granted a pardon, again on the basis of innocence. The day after that, he qualified to run for the Republican nomination for Governor. Strangely enough, he was challenging Fob James, Jr. The same man who had defeated Hunt in the 1978 gubernatorial election had changed his allegiance back to the Republican Party and been elected in 1994.

Hunt was unable to secure the nomination, and returned to preaching and working on his farm. In 2002, he made another unsuccessful bid for the state senate. He died on January 30 of this year of complications from lung cancer.

Sources: Alabama Department of Archives and History, National Governors Association, Encyclopedia of Alabama, "Wallace's Successor Ushers In Conservative Era" in the New York Times on Jan. 20 1987, "Alabama Governor Found Guilty of Ethics Charge and Is Ousted" in the New York Times on April 23 1993, "Ex-Governor of Alabama Loses Ruling" in the New York Times on April 22 1994, "Alabama Ex-Governor Gets More Probation" in the New York Times on Feb. 15 1998, "Elections 2002 - Around the Nation" in the Columbus Ledger-Enquirer on Nov. 7 2002, The New Politics of the Old South by Charles S. Bullock and Mark J. Rozell, Biographical Directory of the Governors of the United States, 1988-1994 by Marie Marmo Mullaney