Wednesday, April 11, 2018

Mind Control - Connections to Christian Church Associations and Councils

by Linda Minor © 2001, updated

Is Katherine Harris is a serious mind control plant? The recent election scenario in Florida must have been in the works for several years. It appears Ms. Harris, who had been involved in a Christian group called L'Abri, had visited Switzerland. 

L'Abri was set up in 1955 by Dr. Francis Schaeffer, who in 1942 lived in St. Louis and was in the midst of the schism that took place within the Presbyterian Church foreign missions group. Schaeffer joined the American Council of Christian Churches founded by Carl McIntire and began traveling to Europe during the years of World War II

History of ACCC

Quoting from the website, "Remembering the Ministry of Rev. Carl McIntire"which is itself quoting  from the Philadelphia Evening Bulletin of April 16, 1956:
Dr. McIntire, Oklahoma-born fundamentalist, was ousted as pastor of the Collingswood Presbyterian Church in June, 1936 by the General Assembly of the Presbyterian Church of the U.S.A. for declining to resign from an independent group that challenged the Presbyterian Board of Foreign Missions.

The ouster from the $250,000 church was backed by the New Jersey Courts and in March, 1938, Dr. McIntire with 1,200 members of the congregation marched out of the church and founded the Bible Presbyterian Church of Collingswood, Haddon Ave. and Cuthbert Blvd., Collingswood.

The church became the nucleus of the Bible Presbyterian Church Synod, which now has 88 affiliated churches. Dr. McIntire in 1941 founded the American Council of Christian Churches, which in organization parallels the National Council of Churches in Christ of the U.S.A.

It claims some 220,000 members.

The International Council of Christian Churches was organized by McIntire in Amsterdam in 1948. It boasts worldwide representation through 54 affiliated demoninations [sic] with a total membership of 1,100,000.
McIntire had founded Faith Theological Seminary, Elkins Park, [Pennsylvania] and Shelton College, N. J. in 1937. According to the Torbitt Document
Another organization participating with Division Five was a religious group called the American Council of Christian Churches. A.C.C.C.'s West Coast representative, E.E. Bradley, was indicted by the New Orleans Grand Jury for complicity in the assassination. A.C.C.C. launched a campaign in 1964, at J. Edgar Hoover's request, to elect him President of the United States.

In 1941, J. Edgar Hoover had his good friend and agent, Carl McIntire, organize the espionage and intelligence unit under the cover name "American Council of Christian Churches" with the headquarters in New York City. This group was able to take in many innocent religious groups who did not know they were connected with a spy and propaganda agency. However, Hoover and McIntire through this guise were able to place agents posing as ministers and missionaries throughout the United States and most Latin American countries.
"Torbitt" cited the following sources:
7 1964 Campaign Records, American Council of Christian Churches records, N.Y.C.
8 Religious Bodies of America, 1961, Revised; New Orleans District Attorney Records.

Francis Schaeffer, who set up the school where Katherine Harris was probably programmed, was tied in with McIntire's group, the International Council of Christian Churches:
Francis Schaeffer

      Francis August Schaeffrer was born in Germantown, Pennsylvania, and became a Christian in 1930 at the age of eighteen, and graduated magna cum laude from Hampden-Sydney College, VA in June, 1935. Schaeffer entered Westminster Theological Seminary in 1935 and transferred to the newly formed Faith Theological Seminary in 1937, graduating from there in 1938.
      Following graduation, he was by some accounts the first person ordained by the Bible Presbyterian Church and became pastor of the Covenant Presbyterian Church in Grove City, PA. In 1941 he was elected moderator of the Great Lakes Presbytery [BPC] and began serving as associate pastor of the Bible Presbyterian Church in Chester, PA. From 1943 to 1947, he pastored First Bible Presbyterian Church in St. Louis, MO, and served as moderator of the Midwest Presbytery [BPC].
      During this time Schaeffer and his wife founded the Children for Christ ministry in St. Louis, which soon became widely adopted by other evangelical churches. In 1947 he traveled throughout Europe as a representative of the Independent Board for Presbyterian Foreign Missions and as the American Secretary for the Foreign Relations Department of the American Council of Christian Churches. In 1948 he moved with his family to Lausanne, Switzerland to begin mission work, and moved the following year to Champery, Switzerland, where he wrote Basic Bible Studies.
      In 1953 he returned to the United States on furlough and began an extensive speaking tour. Later that same year, he returned to Switzerland and moved to Huemoz, Switzerland. By 1955 he had resigned from the mission board and began L'Abri Fellowship, which became the primary focus of his life. In 1971 he received the honorary Doctor of Letters degree from Gordon College, Wenham, MA.
      In 1981 he reedited and published The Complete Works of Francis Schaeffer. The Simon Greenleaf School of Law awarded him an honorary Doctor of Laws degree in 1983, but he was forced to return in critical condition from Switzerland to the Mayo Clinic. Despite the debilitating illness, he was able in 1984 to complete The Great Evangelical Disaster and a seminar tour. On May 15, 1984, he died at his home in Rochester, MN and was buried at Oakwood Cemetary in Rochester.
In the center of these battles was J. Gresham Machen (1881-1937), assistant professor of New Testament literature and exegesis at Princeton Theological Seminary. Princeton had long been one of the bastions of orthodoxy in the Presbyterian Church, USA, and was the next center of controversy within the denomination as that school became the focus of an effort to reorganize the board in 1929, installing a board committed to a more theologically inclusive course. In protest, Machen left to found Westminster Theological Seminary in Philadelphia taking with him several faculty and students from Princeton, including Robert Dick Wilson, Cornelius Van Til, O. T. Allis, Francis Schaeffer, and Carl McIntire. [See Phillip R. Thorne, Evangelicalism and Karl Barth: His Reception and Influence in North American Evangelical Theology (1995).]

The Bible Presbyterian Split

While still an infant church, Machen's group divided into what eventually became known as the Orthodox Presbyterian Church and the Bible Presbyterian Church.

This split resulted from two issues of importance to the Fundamentalist movement: alcohol and premillennialism. Generally, the Reformed confessionalists took a position rooted in the idea of "Christian liberty." Since the Bible did not clearly condemn alcohol, then the believer could follow his own conscience on the matter. Machen himself was not opposed to wine, and he in fact opposed prohibition. Other issues also figured in discussions about the limits of Christian liberty, such as the use of tobacco, but alcohol was the central, most controversial point.

Opposing this tendency within the new church was a group led by Carl McIntire, a pastor in Collingswood, New Jersey, and J. Oliver Buswell, president of Wheaton College. They came out strongly for total abstinence from alcohol and tobacco. They protested vigorously because Westminster Seminary did not ban these substances and charged that even the faculty were partaking.
You can get another insight into this split that occurred at another site, written by a different faction of the so-called "Christian fundamentalists." This was the faction which Billy Graham came out of. However it traces its roots to the same place and time period in which Francis Schaeffer emerged, even though his name is not mentioned at the website article: { The Association traces its beginnings to April 7-9, 1942, when a modest group of 147 people met in St. Louis with the hopes of reviving the fortunes of evangelical Christianity in America.

The same article does refer to McIntire's role in the split:
The only source of tension during the proceedings centered upon a motion presented by the fiery fundamentalist from New Jersey, Carl McIntire. He pleaded with participants to join the American Council of Christian Churches, an organization he had founded, a month before the October 1941 exploratory meeting in Chicago, as a declaration of war against the Federal Council of Churches (FCC). The issue had been placed on the table at the earlier Chicago meeting, but in St. Louis the participants declined McIntire's invitation, believing that a more positive testimony to the gospel was needed.
Another website about the relationship between McIntire and Schaeffer used for this research once appeared at the Banner of Truth website {}:
Carl McIntire is now 92 years of age. He was born in 1906 in the Midwest and while reading such books by J.Gresham Machen as "What is Faith?" (Banner of Truth) he concluded he wanted to study in Princeton under Machen's teaching. But it was not long before he felt he knew better than his teacher. He was ordained in 1931 in the Presbyterian Church USA. In 1933 he was called to the church at Collingswood, not far from Philadelphia, where he has remained. The following year he joined the Independent Board for Presbyterian Foreign Missions which Machen had organized to make sure conservative missionaries were being commissioned. For doing this Machen and McIntire were ejected from the PCUSA.

A new denomination was started in 1936 with McIntire amongst the 34 ministers and 17 elders signing the declaration, but within months McIntire had probably incited Dr. Oliver Buswell and others to insist that the new church support a total abstinence stand on alcohol. Machen was at the same time voted off the Independent Board for Foreign Missions. Weighed down by these disappointments Machen succumbed to an infection that ended in pneumonia and he died in Bismarck, North Dakota, on January 1 1937. At the General Assembly of that year the whole group split into two, McIntyre and the pre-millenialist non-alcohol people forming the Bible Presbyterian Church while the Presbyterians centering on Westminster Seminary formed the Orthodox Presbyterian Church.

McIntire set up a whole series of organizations serving what he called the "20th Century Reformation." He launched his magazine, the "Christian Beacon," began a radio programme, attacked the World Council of Churches and picketed their meetings. His message was enthusiastically received by Fundamentalists. But all was not well. In 1956 the General Assembly of the Bible Presbyterian Church voted to leave the American Council of Christian Churches and the International Council of Christian Churches which McIntire had founded. This split the BPC into two. The majority, which included FRANCIS SCHAEFFER, gave McIntire the name of the denomination, Shelton College, Faith Seminary, the ACCC and ICCC. The remainder formed the Evangelical Presbyterian Church. In 1965 they joined a group from the United Presbyterian Church to become the Reformed Presbyterian Church, Evangelical Synod. This denomination joined the PCA in 1982.
Therefore, it seems Schaeffer and McIntire were working within the same organization until another split occurred in the church group in 1956. It was 1955 that Schaeffer allegedly set up the academy in Switzerland which Katherine Harris later attended. So the question is, was there a division of labor that occurred at this point or just that there was a decision to further compartmentalize the operations.

It has been suggested in the book entitled Crossed Fingers: How the LiberalsCaptured the Presbyterian Church (a full description of which appeared at and an excerpt of
which was posted at the url below) that perhaps the purpose of the split was to gain control of a large number of churches which could be convinced to support the passage of the United Nations after the planned World War II:
Theological liberalism steadily manifested itself in the affairs of the Church. Consider the overwhelming support given by the General Assembly to the creation of something like the United Nations Organization, beginning in May, 1941, four years before the UN was created. (The influence of John Foster Dulles was crucial in this early support; he was a strong internationalist prior to 1948.)(31) In every year but one, 1946 to 1990, the General Assembly annually promoted the work of the UN.(32) In 1947, eleven years after the de-frocking of Machen, two decades before the 1903 Westminster Confession was revised, the General Assembly voted its approval of the following position: "We believe that the ultimate goal for World Organization should be Federal World Government. The success of the United Nations is an important step toward this end."(33) Once in the hands of power religionists, the proclamation of the Northern Presbyterian Church's political commitments preceded the proclamation of its confessional commitment.
NOTES: 31. Mark G. Toulouse, "Working Toward Meaningful Peace:
John Foster Dulles and the Federal Council of Churches, 1937-1945," Journal
of Presbyterian History, 61 (Winter 1983). 32. Robert F. Smylie, "The Presbyterian Church and the United Nations: An Overview," American Presbyterians, 68 (Summer 1990), p. 73. 33. Minutes of the General Assembly, 1947, p. 209. Cited in ibid., p. 78. { 3.htm} [See new link]

The Presbyterian Church brags about its New World Order connections:

How long has the Presbyterian Church supported the United Nations? Since before the organization began. Even during the early years of World War II the Presbyterian Church was helping to lay the ground work for such an organization by supporting the work of the Federal Council of Churches Commission on the Bases of a Just and Durable Peace. The commission was chaired by John Foster Dulles, a lawyer-statesman, Presbyterian elder and ecumenical churchman. John Alexander McKay, then President of Princeton Seminary, helped to provide the Commission's theological grounding. The Presbyterian Church established its own Special Committee on a Righteous Peace in 1942 and launched a "World Order Movement" in 1944. From this followed a promotion blitz in the fall of 1944 and spring of 1945 in anticipation of the founding conference of the U.N. in San Francisco. Today the Presbyterian Church's support for the U.N. is manifested in the Presbyterian United Nations Office (PUNO). This office, part of the Presbyterian Peacemaking Program, represents the church and the church's concern for justice and peace and the United Nations' role in achieving those two goals. The PUNO's role is guided and defined by Presbyterian General Assembly policy, reflected in more than 200 resolutions. {}
Fritz Springmeier has alleged that Billy Graham--also from a Presbyterian fundamentalist background, which is one of the primary sources for Masonic activity --was not only a victim but a perpetrator of mind control: .

(For background, also see

The therapist can learn about what is happening so that they can better deal with what the SRA survivors are beginning to reveal. The grooming of the American people to believe massive amounts of lies did work, UNTIL a few loving therapists, ministers, and doctors began to liberate victims of the Monarch trauma-based mind-control. These programmed multiples began revealing a horror story of deception unparalleled in history. ...Everyone in the Illuminati of any significance has participated in grooming the public to believe that Billy Graham is a great man of God. Graham has stood beside each of the Presidents and the Pope. The Illuminati don't just program individuals, they program whole nations. The public has been led to believe in a television image. But what if the secular media's image of Billy Graham is not real? For Christians it means that they can quit trusting in a man, and place their trust fully on God. For secular readers, they can begin to see the extent of how America's institutions have been corrupted by the horrible trauma-based mind-control. ...

People don't grasp that just because a preacher can sincerely preach what seems a "perfect sermon," doesn't mean that he can't also be part of the Satanic hierarchy. What is happening with the Illuminati's ability to create programmed multiples is that we are getting perfect preachers who are secret hierarchy members. Some of their "perfect sermons" are full of slides, such as "the Christian people need to get involved in the voting process. Christians love to hear such things, it tickles their ears, but the truth is that the entire voting process has been captured and corrupted. Voting machines have repeatedly been exposed to have been rigged, and the controlled media and public denial have prevented Americans from giving up their myth that the common man's votes run this nation. ... Billy Graham described his friendship with Allen Dulles, I make every effort not to let it appear that I favor one party over another. I count Secretary Dulles a friend, but Senator Humphrey is also a good friend of mine, [who he met] ... when we were both swimming nude at the YMCA pool in Minneapolis where he was running for mayor." A friendship with Allen Dulles? Allen Dulles, director of the CIA, was one of the biggest perpetrators of the trauma-based mind-control that this book is about. Humphrey also received orders from the Satanic hierarchy. And what is this swimming in nude? When Billy Graham had his 1954 Crusade, large sums of the money came directly from people in the Illuminati, the Whitneys, the Vanderbilts, the Rockefellers, and Chase Manhattan. ... As a programmed multiple who participates in Satanic Ritual, Billy Graham has deceived everyone. The second area is concerns about his support for a One-World Church and a One-World-Government.

Miscellaneous Theories

There's another interesting theory propounded by "Kerry Thornley" at the following url:
now see Letter from Kerry Thornley:
Before Hitler actually put it into practice, that was a very popular idea known as Eugenics and supported by Presidents Coolidge and Hoover, the Morgans, Harriman, et. al. What have since renamed themselves Psychiatric associations were originally Eugenic Societies and Carl Gustav Jung played an important role in the transition. Mary Bancroft, assistant to Allen Dulles, was in therapy with Jung when Dulles began playing footsie with the SS in Operation Sunrise. My surmise is Dulles, Jung and the SS guys created a secret society when Kim Philby sabotaged their separate peace idea based on Jung's conception that one of the few problems with Nazism was Hitler and the strong role of the dominating father in the German family unit that made Hitler appealing. Renegade CIA agent John Stockwell, who was close to Dulles, told me that is exactly what happened.

Kerry Wendell Thornley, POB 5498, Atlanta, GA 30307
There's also the story about New Era, the investment company of John G. Bennett

Top Christian Ministries Get Fleeced

It seems their tickling ears just couldn't resist a rumor floating around he Christian financial community that a Philanthropic organization headed by an Evangelical was offering a matching fund program which guaranteed them a doubling of their, (or should I say your) money. By being able to drop names like Rockefeller, Billy Graham, etc. as references, John G. Bennett was able to convince the financial officers of the leading Christian organizations to invest hundreds of millions of believers money into a fund
called New Era. ... A partial list of those Christian ministries who were fleeced are:

  • James Dobson's Focus on the Family
  • Pat Robertson's 700 Club
  • Bill Bright's Campus Crusade
  • Chuck Colson's Prison Fellowship
  • World Vision
  • Youth For Christ, International
  • Inter-Varsity Christian Fellowship
  • Salvation Army
  • Walk Through the Bible Ministries
  • Young Life
  • Moody Bible Institute
  • Christian Broadcasting Network
  • Wheaton College
  • Chapel of the Air

.... and the list goes on and on and on. The government estimates as much as $550 million dollars were involved. Surely these ministries will throw the blame onto anything other than themselves.

The American church, as I mentioned on the audio tape entitled, the Church is a rich prostitute, owns over a trillion dollars of real estate, stocks, bonds, etc. It's gathering and use of this money is on extremely unscriptural grounds.

Friday, April 6, 2018

Heir to the Holocaust

Clamor Magazine existed from November 1999 to December 2006. The following article, "Toby Rogers, printed in Issue 14 May/June 2002 was archived at the website.

Clamor, May/June 2002 

Heir to the Holocaust

Toby Rogers

While the Enron scandal currently unfolds, another Bush family business scandal lurks beneath the shadows of history that may dwarf it.

On April 19, 2001, President George W. Bush spent some of Holocaust Remembrance Day in the Capital Rotunda with holocaust survivors, allied veterans, and their families. In a ceremony that included Jewish prayers and songs sung by holocaust victims in the camps, Benjamin Meed, a survivor of the Warsaw ghetto uprising, movingly described to the gathering what he experienced on April 19, 1943.

"I stood outside a Catholic church, which faced the ghetto," Mr. Meed said, "a young Jewish boy posing as a gentile. As I watched the ghetto being bombarded by the German artillery, I could see many of the Jews of my community jumping out of windows of burning buildings. I stood long and mute."

The survivor concluded his reminiscence saying, "We tremble to think what could happen if we allow a new generation to arise ignorant of the tragedy which is still shaping the future."

President Bush, appearing almost uncomfortable, read a statement that said that humanity was "bound by conscience to remember what happened" and that "the record has been kept and preserved." The record, Mr. Bush stated, was that one of the worst acts of genocide in human history "came not from crude and uneducated men, but from men who regarded themselves as cultured and well schooled, modern men, forward looking. Their crime showed the world that evil can slip in and blend in amid the most civilized surroundings. In the end only conscience can stop it."

But while President Bush publicly embraced the community of holocaust survivors in Washington last spring, he and his family have been keeping a secret from them for over 50 years about Prescott Bush, the president's grandfather. According to classified documents from Dutch intelligence and US government archives, President George W. Bush's grandfather, Prescott Bush made considerable profits off Auschwitz slave labor. In fact, President Bush himself is an heir to these profits from the holocaust which were placed in a blind trust in 1980 by his father, former president George Herbert Walker Bush.
Throughout the Bush family's decades of public life, the American press has gone out of its way to overlook one historical fact – that through Union Banking Corporation (UBC), Prescott Bush, and his father-in-law, George Herbert Walker, along with German industrialist Fritz Thyssen, financed Adolf Hitler before and during World War II. It was first reported in 1994 by John Loftus and Mark Aarons in The Secret War Against the Jews: How Western Espionage Betrayed the Jewish People.

The US government had known that many American companies were aiding Hitler, like Standard Oil, General Motors and Chase Bank, all of which was sanctioned after Pearl Harbor. But as The New York Times reporter Charles Higham later discovered, and published in his 1983 groundbreaking book, Trading With The Enemy; The Nazi American Money Plot 1933-1949,
"the government smothered everything during and even after the war." 

According to Higham, the US government believed
"a public scandal ... would have drastically affected public morale, caused widespread strikes and perhaps provoked mutinies in the armed services." Higham claims the government thought "their trial and imprisonment would have made it impossible for the corporate boards to help the American war effort."
However, Prescott Bush's banks were not just financing Hitler as previously reported. In fact, there was a distinct business link much deeper than Mr. Higham or Mr. Loftus knew at the time their books were published.

A classified Dutch intelligence file which was leaked by a courageous Dutch intelligence officer, along with newly surfaced information from U.S. government archives, "confirms absolutely," John Loftus says, the direct links between Bush, Thyssen and genocide profits from Auschwitz.

The business connections between Prescott Bush and Fritz Thyssen were more direct than what has been previously written. This new information reveals how Prescott Bush and UBC, which he managed directly, profited from the Holocaust. A case can be made that the inheritors of the Prescott Bush estate could be sued by survivors of the Holocaust and slave labor communities. To understand the complete picture of how Prescott Bush profited from the Holocaust, it is necessary to return to the year 1916, where it all began.

Post World War I: Thyssen Empire On The Ropes

By 1916, August Thyssen could see the writing on the wall. The "Great War" was spinning out of control, grinding away at Germany's resources and economy. The government was broke and his company, Thyssen & Co., with 50,000 German workers and annual production of 1,000,000 tons of steel and iron, was buckling under the war's pressure. As the main supplier of the German military, August Thyssen knew Germany would be defeated once the US entered the war.

At 74, "King" August Thyssen knew he was also running out of time. His first born "prince" Friedrich (Fritz) Thyssen, had been groomed at the finest technical business schools in Europe and was destined to inherit his father's estimated $100,000,000 fortune and an industrial empire located at Muehhlheim on the Ruhr.

In addition to Fritz, plans were also made for the second son Heinrich. At the outbreak of the war, Heinrich Thyssen discreetly changed his citizenship from German to Hungarian and married the Hungarian aristocrat Baroness Margrit Bornemisza de Kaszon. Soon Heinrich Thyssen switched his name to Baron Thyssen Bornemisza de Kaszon.

Near the end of World War I, August Thyssen opened the Bank voor Handel en Scheepvaart in Rotterdam. The neutral Holland was the perfect location outside of Germany to launder assets from the August Thyssen Bank in Berlin when the financial demands of the Allied forces surfaced. But the war ended much sooner than even Thyssen calculated and what developed caught the "Rockefeller of the Ruhr" off guard.

On November 10, 1918, German socialists took over Berlin. The following morning at 5 a.m., what was left of Germany surrendered to the Allies, officially ending World War I. "At the time of the Armistice and the signing of the Treaty of Versailles, my Father and I were deeply saddened by the spectacle of Germany's abject humiliation," Thyssen recalled later in his autobiography, I Paid Hitler.

After the war, chaos descended on Germany as food ran short. Winter was looming over a starving nation when on Dec. 7, 1918, the socialist Spartacists League came knocking on the Thyssen Villa with armed militia. August and Fritz were arrested and dragged from jail to jail across Germany for four days. Along the way, they were lined up in staged executions designed to terrorize them.

It worked. When released, the two Thyssens were horrified at the new political climate in their beloved Germany. They could not accept that Germany was responsible for its own demise. All Germany's problems, the Thyssens felt, "have almost always been due to foreigners." It was the Jews, he and many others believed, who were secretly behind the socialist movement across the globe.

Meanwhile Fritz's younger brother Baron Thyssen Bornemisza de Kaszon moved to Rotterdam and became the principal owner of the Bank voor Handel en Scheepvaart. All the Thyssens needed now was an American branch.

1920s: The Business Ties That Bind

Railroad baron E.H. Harriman's son Averell wanted nothing to do with railroads, so his father gave him [sic] [E.H. Harriman had died in 1909 and left his corporations in the hands of Robert Scott Lovett while his sons were yet to mature] an investment firm, W.A. Harriman & Company in New York City. E.H. hired [sic] the most qualified [sic] person in the country to run the operation, George Herbert Walker. Averell [Yale, Skull and Bones, 1913] hired his little brother Edward Roland "Bunny" Harriman [Yale, Skull and Bones, 1917] as a vice president.

By 1920, George Herbert Walker had already built a fortune in Missouri. Walker, a charismatic former heavyweight boxing champion, was a human pit bull. He lived life to the fullest, owning mansions around the east coast and one of the most extravagant apartments in Manhattan. His hobbies were golf, hunting, drinking scotch and beating his sons to a pulp. Elsie Walker, one of Walker's grandchildren described Walker as a "tough old bastard" whose children had no love "for their father." He was also a religious bigot who hated Catholics, although his parents raised him to be one. According to other sources, he also did not like Jews.

In 1922, Averell Harriman traveled to Germany to set up a W.A. Harriman & Co. branch in Berlin. The Berlin branch was also run by Walker. While in Germany, he met with the Thyssen family for the first time. Harriman agreed to help the Thyssens with their plan for an American bank.

The following year, a wounded Germany was growing sicker. The government had no solution and froze while Germany rotted from within. With widespread strikes and production at a near standstill, Fritz Thyssen later recalled, "We were at the worst time of the inflation. In Berlin the government was in distress. It was ruined financially. Authority was crumbling. In Saxony a communist government had been formed and the Red terror, organized by Max Hoelz, reigned through the countryside. The German Reich ... was now about to crumble."

In October, 1923, an emotionally desperate Fritz Thyssen went to visit one of his and Germany's great military heroes, General Erich Ludendorff. During the 1918 socialist rule in Berlin, Ludendorff [had] organized a military resistance against the socialists and the industrialists were in great debt to him. When Thyssen met with Ludendorff, they discussed Germany's economic collapse. Thyssen was apocalyptic, fearing the worst was yet to come. Ludendorff disagreed. "There is but one hope," Ludendorff said, "Adolph Hitler and the National Socialist party." Ludendorff respected Hitler immensely. "He is the only man who has any political sense." Ludendorff encouraged Thyssen to join the Nazi movement. "Go listen to him one day" he said to Thyssen.

Thyssen followed General Ludendorff's advice and went to a number of meetings to hear Hitler speak. He became mesmerized by Hitler. "I realized his orator gifts and his ability to lead the masses. What impressed me most however was the order that reigned over his meetings, the almost military discipline of his followers."

Thyssen arranged to meet privately with Hitler and Ludendorff in Munich. Hitler told Thyssen the Nazi movement was in financial trouble, it was not growing fast enough and was nationally irrelevant. Hitler needed as much money as possible to fight off the Communists/Jewish conspiracy against Europe. Hitler envisioned a fascist German monarchy with a nonunion, antilock national work force.

Thyssen was overjoyed with the Nazi platform. He gave Hitler and Ludendorff 100,000 gold marks ($25,000) for the infant Nazi party. Others in the steel and coal industries soon followed Thyssen's lead, although none came close to matching him. Many business leaders in Germany supported Hitler's secret union-hating agenda. However, some donated because they feared they would be left out in the cold if he actually ever seized power.

Most industry leaders gave up on Hitler after his failed coup in 1923. While Hitler spent a brief time in jail, the Thyssens, through the Bank voor Handel en Scheepvaart, opened the Union Banking Corporation in 1924.

Union Banking Corporation

Early in 1924, Hendrick J. Kouwenhoven, the managing director of Bank voor Handel en Scheepvaart, traveled to New York to meet with Walker and the Harriman brothers. Together, they established The Union Banking Corporation. The UBC's headquarters was located at the same 39 Broadway address as Harriman & Co.

As the German economy recovered through the mid to late ‘20s, Walker and Harriman's firm sold over $50,000,000 worth of German bonds to American investors, who profited enormously from the economic boom in Germany. In 1926, August Thyssen died at the age of 84. Fritz was now in control of one of the largest industrial families in Europe. He quickly created the United Steel Works (USW), the biggest industrial conglomerate in German history. Thyssen hired Albert Volger, one of the Ruhr's most influential industrial directors, as director General of USW.

Thyssen also brought Fredich [sic] Flick, another German family juggernaut, on board. Flick owned coal and steel industries throughout Germany and Poland and desperately wanted to invest into the Thyssen empire. One of the primary motivations for the Thyssen/Flick massive steel and coal merger was suppressing the new labor and socialist movements.
That year in New York, George Walker decided to give his new son in law, Prescott Bush, a big break. Walker made Bush a vice president of Harriman & Co. Prescott's new office employed many of his classmates from his Yale class of 1917, including Roland Harriman and Knight Woolley. The three had been close friends at Yale and were all members of Skull and Bones, the mysterious on-campus secret society. Despite the upbeat fraternity atmosphere at Harriman & Co., it was also a place of hard work, and no one worked harder than Prescott Bush.

In fact, Walker hired Bush to help him supervise the new Thyssen/Flick United Steel Works. One section of the USW empire was the Consolidated Silesian Steel Corporation and the Upper Silesian Coal and Steel Company located in the Silesian section of Poland. Thyssen and Flick paid Bush and Walker generously, but it was worth every dime. Their new business arrangement pleased them all financially, and the collective talents of all four men and their rapid success astonished the business world.

In the meantime Hitler and the Nazi party were broke. Since the German economic recovery, members and donations had dried up, leaving the Nazi movement withering on the vine. In 1927, Hitler was desperate for cash; his party was slipping into debt. Hitler told his private secretary Rudolf Hess to shake down wealthy coal tycoon and Nazi sympathizer Emil Kirdorf. Kirdorf paid off Hitler's debt that year but the following year, he too had no money left to contribute.

In 1928, Hitler had his eyes on the enormous Barlow Palace located in Briennerstrasse, the most aristocratic section of Munich. Hitler wanted to convert the palace into the Nazi national headquarters and change its name to the Brown House but it was out of his price range. Hitler told Hess to contact Thyssen. After hearing the Hess appeal, Thyssen felt it was time to give Hitler a second chance. Through the Bank voor Handel en Scheepvaart, Thyssen said he "placed Hess in possession of the required funds" to purchase and redesign the Palace. Thyssen later said the amount was about 250,000 marks but leading Nazis later claimed that just the re-molding cost over 800,000 marks (equivalent to $2 million today).

Regardless of the cost, Hitler and Thyssen became close friends after the purchase of the Brown House. At the time, neither knew how influential that house was to become the following year when, in 1929, the great depression spread around the world. With the German economic recovery up in flames, Hitler knew there was going to be a line out the door of industrialists waiting to give him cash.

1930s: Hitler Rises – Thyssen/Bush Cash In

Thyssen would later try to claim that his weekends with Hitler and Hess at his Rhineland castles were not personal but strictly business and that he did not approve of most of Hitler's ideas, but the well-known journalist R.G Waldeck, who spent time with Thyssen at a spa in the Black Forest, remembered quite differently. Waldeck said when he and Thyssen would walk through the cool Black Forest in 1929-30, Thyssen would tell Waldeck that he believed in Hitler. He spoke of Hitler "with warmth" and said the Nazis were "new men" that would make Germany strong again. With the depression bleeding Europe, Thyssen's financial support made Hitler's rise to power almost inevitable.

39 Broadway in 1928, NY Museum
The great depression also rocked Harriman & Co. The following year [1931], Harriman & Co. merged with the London firm Brown/Shipley [sic]. Brown/Shipley kept its name, but Harriman & Co. changed its name to Brown Brothers, Harriman. The new firm moved to 59 Wall St. while UBC stayed at 39 Broadway. Averell Harriman and Prescott Bush reestablished a holding company called The Harriman 15 Corporation. One of the companies Harriman had held stock in was the Consolidated Silesian Steel Company. Two thirds of the company was owned by Friedrich Flick. The rest was owned by Harriman.

In December 1931, Fritz Thyssen officially joined the Nazi party. When Thyssen joined the movement, the Nazi party was gaining critical mass around Germany. The charismatic speeches and persona of Hitler, the depression and the Thyssen's Bank voor Handel en Scheepvaart all contributed to Hitler's sudden rise in popularity with the German people.

In September 1932, Thyssen invited a group of elite German industrial tycoons to his castle to meet with Hitler. They spent hours questioning Hitler, who answered all their questions with the'"utmost satisfaction," Thyssen remembered. The money poured in from the industrial circles mostly due to Hitler's "monarchistic attitude" towards labor and issues of class.
But by November, German voters grew weary of Hitler's antidemocratic tendencies and turned to the Communist party, which gained the most seats in the fall election. The Nazis lost a sweeping 35 seats in the Reichstag, but since the Nazis were already secretly negotiating a power sharing alliance with Hindenberg that would ultimately lead to Hitler declaring himself dictator, the outcry of German voters was politically insignificant.

By 1934, Hindenberg was dead and Hitler completely controlled Germany. In March, Hitler announced his plans for a vast new highway system. He wanted to connect the entire Reich with an unprecedented wide road design, especially around major ports. Hitler wanted to bring down unemployment but, more importantly, needed the new roads for speedy military maneuvers.

Hitler also wanted to seriously upgrade Germany's military machine. Hitler ordered a'"rebirth of the German army" and contracted Thyssen and United Steel Works for the overhaul. Thyssen's steel empire was the cold steel heart of the new Nazi war machine that led the way to World War II, killing millions across Europe.

Thyssen's and Flick's profits soared into the hundreds of millions in 1934 and the Bank voor Handel en Scheepvaart and UBC in New York were overflowing with money. Prescott Bush became managing director of UBC and handled the day-to-day operations of the new German economic plan. Bush's shares in UBC peaked with Hitler's new German order. But while production rose, cronyism did as well.

On March 19, 1934, Prescott Bush handed Averell Harriman a copy of that day's New York Times. The Polish government was applying to take over Consolidated Silesian Steel Corporation and Upper Silesian Coal and Steel Company from'"German and American interests" because of rampant "mismanagement, excessive borrowing, fictitious bookkeeping and gambling in securities." The Polish government required the owners of the company, which accounted for over 45% of Poland's steel production, to pay at least its full share of back taxes. Bush and Harriman would eventually hire attorney John Foster Dulles to help cover up any improprieties that might arise under investigative scrutiny.

Hitler's invasion of Poland in 1939 ended the debate about Consolidated Silesian Steel Corporation and Upper Silesian Coal and Steel Company. The Nazis knocked the Polish Government off Thyssen, Flick and Harriman's steel company and were planning to replace the paid workers. Originally Hitler promised Stalin they would share Poland and use Soviet prisoners as slaves in Polish factories. Hitler's promise never actually materialized and he eventually invaded Russia.

1940s: Business As Usual

Consolidated Silesian Steel Corporation was located near the Polish town of Oswiecim, one of Poland's richest mineral regions. That was where Hitler set up the Auschwitz concentration camp. When the plan to work Soviet prisoners fell through, the Nazis transferred Jews, communists, gypsies and other minority populations to the camp. The prisoners of Auschwitz who were able to work were shipped to 30 different companies. One of the companies was the vast Consolidated Silesian Steel Corporation.

"Nobody's made the connection before between Consolidated Silesian Steel Corporation, Auschwitz and Prescott Bush," John Loftus told Clamor.

"That was the reason why Auschwitz was built there. The coal deposits could be processed into either coal or additives for aviation gasoline."

Even though Thyssen and Flick's Consolidated Steel was in their possession, Hitler's invasions across Europe spooked them, bringing back memories of World War I. Thyssen and Flick sold Consolidated Steel to UBC. Under the complete control of Harriman and management of Bush, the company became Silesian American Corporation which became part of UBC and Harriman's portfolio of 15 corporations. Thyssen quickly moved to Switzerland and later France to hide from the terror about to be unleashed by the Nazi war machine he had helped build.

A portion of the slave labor force in Poland was "managed by Prescott Bush," according to a Dutch intelligence agent. In 1941, slave labor had become the lifeblood of the Nazi war machine. The resources of Poland's rich steel and coal field played an essential part in Hitler's invasion of Europe.

According to Higham, Hitler and the Fraternity of American businessmen "not only sought a continuing alliance of interests for the duration of World War II, but supported the idea of a negotiated peace with Germany that would bar any reorganization of Europe along liberal lines. It would leave as its residue a police state that would place the Fraternity in postwar possession of financial, industrial, and political autonomy."

Six days after Pearl Harbor and the US declaration of war at the end of 1941, President Franklin D. Roosevelt, Secretary of the Treasury Henry Morgenthau and US Attorney General Francis Biddle signed the Trading With the Enemy Act, which banned any business interests with US enemies of war. Prescott Bush continued with business as usual, aiding the Nazi invasion of Europe and supplying resources for weaponry that would eventually be turned on American solders in combat against Germany.

Six months before Pearl Harbor-New York Tribune
On October 20, 1942, the U.S. government had had enough of Prescott Bush and his Nazi business arrangements with Thyssen. Over the summer, The New York Tribune had exposed Bush and Thyssen, whom the Tribune dubbed "Hitler's Angel." When the US government saw UBC's books, they found out that Bush's bank and its shareholders "are held for the benefit of ... members of the Thyssen family, [and] is property of nationals ... of a designated enemy country." The list of seven UBC share holders was:
E. Roland Harriman – 3991 shares
Cornelis Lievense – 4 shares
Harold D.Pennington – 1 share
Ray Morris–– 1 share
Prescott S. Bush – 1 share
H.J. Kouwenhoven – 1 share
Johann G. Groeninger – 1 share
The UBC books also revealed the myriad of money and holding companies funneled from the Thyssens and the government realized UBC was just the tip of the iceberg. On November 17, 1942, The US government also took over the Silesian American Corporation, but did not prosecute Bush for the reasons Higham noted earlier. The companies were allowed to operate within the Government Alien Property custodian office with a catch – no aiding the Nazis. In 1943, while still owning his stock, Prescott Bush resigned from UBC and even helped raise money for dozens of war-related causes as chairman of the National War Fund.

After the war, the Dutch government began investigating the whereabouts of some jewelry of the Dutch royal family that was stolen by the Nazis. They started looking into books of the Bank voor Handel en Scheepvaart. When they discovered the transaction papers of the Silesian American Corporation, they began asking the bank manager H.J. Kounhoven a lot of questions. Kouwenhoven was shocked at the discovery and soon traveled to New York to inform Prescott Bush. According to Dutch intelligence, Kouwenhoven met with Prescott soon after Christmas, 1947. Two weeks later, Kouwenhoven apparently died of a heart attack.

1950s: Bush Sells UBC Stock

By 1948, Fritz Thyssen's life was in ruins. After being jailed by the Nazis, he was jailed by the Allies and interrogated extensively, but not completely, by US investigators. Thyssen and Flick were ordered to pay reparations and served time in prison for their atrocious crimes against humanity.

On February 8, 1951, Fritz Thyssen died bitterly in Argentina at the age of 78. Thyssen was angry at the way he was treated by Europe after the war and how history would remember him as Hitler's most important and prominent financier.
When Thyssen died, the Alien Property Custodian released the assets of the Union Banking Corporation to Brown Brothers Harriman. The remaining stockholders cashed in their stocks and quietly liquidated the rest of UBC's blood money.
Prescott Bush received $1.5 million for his share in UBC. That money enabled Bush to help his son, George Herbert Walker Bush, to set up his first royalty firm, Overby Development Company, that same year. It was also helpful when Prescott Bush left the business world to enter the public arena in 1952 with a successful senatorial campaign in Connecticut. On October 8th, 1972, Prescott Bush died of cancer and his will was enacted soon after.

In 1980, when George H.W. Bush was elected vice president, he placed his father's family inheritance in a blind trust. The trust was managed by his old friend and quail hunting partner, William "Stamps" Farish III. Bush's choice of Farish to manage the family wealth is quite revealing in that it demonstrates that the former president might know exactly where some of his inheritance originated. Farish's grandfather, William Farish Jr., on March 25th, 1942, pleaded "no contest" to conspiring with Nazi Germany while president of Standard Oil in New Jersey. He was described by Senator Harry Truman in public of approaching "treason" for profiting off the Nazi war machine. Standard Oil, invested millions in IG Farben, who opened a gasoline factory within Auschwitz in 1940. The billions "Stamps" inherited had more blood on it then Bush, so the paper trail of UBC stock would be safe during his 12 years in presidential politics.

It has been 60 years since one of the great money laundering scandals of the 20th century ended and only now are we beginning to see the true historical aspects of this important period of world history, a history that the remaining Holocaust survivors beg humanity to "never forget."

Loftus believes history will view Prescott Bush as harshly as Thyssen. "It is bad enough that the Bush family helped raise the money for Thyssen to give Hitler his start in the 1920s, but giving aid and comfort to the enemy in time of war is treason. The Bush bank helped the Thyssens make the Nazi steel that killed Allied solders. As bad as financing the Nazi war machine may seem, aiding and abetting the Holocaust was worse. Thyssen's coal mines used Jewish slaves as if they were disposable chemicals. There are six million skeletons in the Thyssen family closet, and a myriad of criminal and historical questions to be answered about the Bush family's complicity."

There is no question that the Bush family needs to donate at least $1.5 million to the proper holocaust reparation fund. Since Prescott Bush is dead, the only way to compensate is for the main inheritors of his estate to make amends with surviving slaves and the families of slaves who died in Bush and Thyssen's coal mines. If the Bush family refuses to contribute the money to compensate for Prescott Bush's involvement in the Holocaust, it is like denying the Holocaust itself and their role in one of the darkest moments in world history.

Special thanks to John Loftus, Emmy winning journalist, author and current president of the Florida Holocaust Museum.

Monday, April 27, 2015

Yoakum's Dream

Excerpt from "The Frisco: A Look Back..."

The second Frisco Company, formed in 1896, lasted until 1913. These were years of expansion, and it gradually took form as the Frisco directorate was cleared of officers connected with the Santa Fe system, which had dominated the Frisco since 1880. When the Frisco was reorganized as the St. Louis and San Francisco Railroad Company on June 20, 1896, the road owned and operated some 990 miles of track. On June 30, 1897, this had increased to 1,162 miles. At that time its directors were in part hang-overs from the joint Frisco Santa Fe entanglement. D.B. Robinson was president, and Benjamin F. Yoakum was vice-president and general manager. In 1900, shed of its Santa Fe influence in the directorate, B. F. Yoakum became the President, and in 1903 became Chairman of the Board. Often referred to in rail history as 'Yoakum's Dream', one of the most spectacular and rapid developments of rail growth in western and Mississippi valley history took place. This history is highlighted in the following 11 paragraphs.

1. A network of new branches of the original Frisco was built to cover central, western and southern Oklahoma.

2. The system was enlarged by acquisition of the Kansas City, Fort Scott and Gulf system, extending from Kansas City, Mo., through Missouri, Arkansas and to Memphis and Birmingham, Ala. The Frisco was interconnected with the 'Gulf' by a number of short stretches, such as the one from Baxter Springs, Kansas through Quapaw and Miami to Afton, Okla.

3. A concerted effort was made to tie Chicago and St. Louis to the Gulf of Mexico at New Orleans, by acquiring control over the Chicago and Eastern Illinois Railroad, building for that road a double track from Pana, Illinois to St. Louis along the right of way of the 'Big Four' (NYC). This C&EI system was directly connected to Gulf ports by arrangements for at least temporary track rights from the Illinois Central, the Missouri Pacifc, the Iron Mountain, and the Texas Pacific railroads.

4. As might become desirable or necessary, entirely new, low-gradient track would be built on a new line down the west bank of the Mississippi River, starting at St. Louis, connecting up to the Chicago and Eastern Illinois terminus at Chaffee, Mo., and running thence to Memphis. This much was the main line of the St. Louis, Memphis and Southeastern Railroad. From Memphis, as needed, the new line would run to a river crossing at Baton Rouge, where it would intersect the new line to be built from New Orleans to Brownsville, Texas. Thence it had track rights to New Orleans.

5. Proceeding on a half-and-half basis with the Southern Railway Company, the Frisco, represented by the New Orleans Terminal Company, its subsidiary, built and acquired extensive terminal track and facilities in and around the city of New Orleans, including the Chalmette docks and terminals. Use of such facilities were traded the Illinois Central and Missouri Pacific systems for track rights from Memphis to New Orleans. These terminal properties cost the Frisco several million dollars.

6. From New Orleans, a brand new trunk line, now called the 'Costal Lines', but then the St.Louis, Brownsville and Mexican Railroad (New Orleans, Texas and Mexico Railroad) was built not only to develop the coastal region traversed from New Orleans to Galveston, Corpus Christi and Brownsville, but also the potentially rich San Benito Valley, in the extreme southern tip of Texas, on the Rio Grande River -- now one of the richest of America's fruit and vegetable farming centers. This line also was designed to interconnect Frisco Lines with Mexican National Railways at Laredo, Texas, and at Eagle Pass.

7. A new southern Oklahoma line, known as the St. Louis, San Francisco and New Orleans Railroad, running from Ardmore and Hugo in Oklahoma to Hope, Ark., was projected and built to facilitate transport of traffic originating in Colorado, south and west Oklahoma, and northern Texas, to New Orleans. This route was designed to be extended west from Ardmore to Lawton, or to Wichita Falls, Texas. From Hope, Ark., it was to run east to a connection with the main new trunk down the Mississippi west bank from Memphis.

8. Through control of the Fort Worth and Rio Grande Railroad, extending southwest from Fort Worth to Brownwood, Brady and Menard and eventually to San Antonio, with a branch from Brady to Eagle Pass, both Dallas and Fort Worth, as well as the west network of the Frisco System, were to be connected to the Southern Pacific Railroad, and to Mexican lines terminating at Eagle Pass.

9. Direct connections to Galveston from Fort Worth and from Dallas were planned directly over a two-forked road called the Trinity and Brazos Valley Railroad. The Dallas and Fort Worth forks converged at Teague, and ran thence a single line to Galveston.

10. The New Orleans terminal facilities, the Chicago and Eastern Illinois road and improvements made thereto, the east-west branch in south Oklahoma (St. Louis, San Francisco and New Orleans), and the St. Louis, Memphis and Southeastern Lines with all the new road or roads on which track rights were procured, were welded together under a new giant railroad company, the Chicago, St. Louis, Memphis and New Orleans Railroad Company. This had a capital stock of one hundred fifty million dollars, all of which was guaranteed by the main Frisco corporation.

11. Link the entire Frisco System, as thus developed to the Rock Island Railroad. Most of the Rock Island network was then located to the north of the bulk of the Frisco network. The Rock Island connected Chicago with territory to the Northwest of Chicago, including Iowa, and Minnesota. It also covered central and north Missouri, a good portion of Kansas, portions of Arkansas, and had terminal lines in Denver and Colorado Springs. It had a main line connecting Topeka and Herigton with Wichita Kans., to Enid, Chickasha and Terral, Okla. with connecting line into Fort Worth. It also had a line which, as far back as 1845, had been projected by General Fremont as part of the 35th Parallel route to be taken by the Atlantic & Pacific, predecessor of the Frisco. This line extended from Memphis through Little Rock, Ark., to Oklahoma City and beyond to Amarillo, Texas. This line was in the process of extension to Tucumcari, New Mexico, for connection with the Southern Pacific line up from El Paso, and so to the Pacific Coast. Also, a new line was being built from Herington and Hutchinson, Kansas to join the Oklahoma line terminating at Tucumcari. Various other short lines, such as the one from Bonner to Newport, Arkansas, interconnected the Frisco and Rock Island for more effective coordination.

By 1911 practically every feature of the Yoakum plan as outlined above had been carried into effect and completed. The principal link left out was the 'west-side' main line down the Mississippi from Memphis to New Orleans, and the link eastward from Hope, Arkansas joining it. The New Orleans, 'Chalmette' dock facilities were finished, and the 977 mile coastline the 'Brownsville Road' was in operation. As already shown, the Frisco had expanded greatly in Oklahoma, and had taken over the Kansas City, Fort Scott and Gulf System, with its lines to Birmingham.

The St. Louis, Memphis and Southeastern line, 666 miles, connecting St. Louis to Memphis, was operated by the Frisco from July 1,1904. The Chicago and Eastern Illinois lines had been taken over and its Pana-St.Louis line constructed.

Trackage of the Frisco System proper rose from 1,162 miles in 1897 to 1,659 miles in 1900. In 1901 it rose to 1,915 miles and was increased to 3,033 by addition of the 'Gulf' system. By June of 1902, with Oklahoma extensions and the Texas 'Brownwood' line counted, the total mileage was 4,201 and on June 30, 1904 it reached 5,456 miles.

This phenomenal successful development of the Frisco System and relations with the Rock Island was followed by a long string of disasters. Some of these, contributory to the collapse of Frisco's empire were

1. Mexican Republic became the victim of devastating revolutions, wrecking Mexican Railroads and thus the business for the 'Brownsville' road (New Orleans, Texas and Mexico).

2. Operating deficits in 1912-1913 of $904,000 and 1913-1914 of $1,214,000.

3. On March 24, 1912 the Mississippi broke its levees and so completely inundated the Frisco low lying tracks in Arkansas, tying up traffic until May 12, 1912.

4. Levees in Louisiana broke on May 3, 1912, flooding sections of the Brownsville line until June 24, 1912.

5. Because of floods in 1912 net profits were reduced to $177,400 for 1911-1912.

6. In 1911, coal strikes contributed a heavy loss of business.

No railroad system could withstand such operating conditions and on May 27, 1913, the Frisco went into the hands of receivers.

With the Frisco, the C&EI went into receivership. That ended its relations with the Frisco. The New Orleans Brownsville line (New Orleans, Texas and Mexico Railroad) also went into receivership. Frisco and Rock Island systems were dissolved. Certain other short lines like the Brownwood line in Texas were sold.

The Frisco continued in receivership up to August 24, 1916, when the present St. Louis-San Francisco Railway Company took over what property the system had left. The road was operated during World War I by the United States Government, being released in 1920.

Wednesday, December 3, 2014

The Cooperative Movement

Co-operative Directions
By Murray D. Lincoln
The Antioch Review, Vol. 4, No. 4 (Winter, 1944), pp. 607-616

THE CO-OPERATIVE MOVEMENT has firmly established itself on the main street of the American business community. It has, in the past decade, achieved a stature which clearly indicates its place and potential force in the pattern of national economics.

While present co-operative influence in our economy offers no total solution to the limitations of capitalism, co-operatives have clearly indicated their ability to meet certain of these limitations. They have augmented the real income of urban and rural members. They have demonstrated an effective challenge to monopoly. They have created durable and intelligent functional groups. And they have emphasized self-help rather than greater dependence upon state aids. In an economy which promises to solve more of its problems on the state level, cooperatives will be distinguished not only for their self-reliance, but for their practical devotion to genuinely free competition and enterprise.

The past several years have found mounting endorsement of cooperatives in many important segments of American life. Indeed, current attacks on certain types of farm co-operatives by the National Tax Equality Association give additional evidence of increasing public awareness of co-operative institutions.

Co-operatives, then, have come of age. There is every indication that they will continue to grow in both size and influence. What directions may such growth and development take? Some trends are already clearly indicated while others are admittedly conjectural.


The co-operative movement in America is predominantly a rural phenomenon. Agriculture accounts for all important producer-marketing activity (annual volume over three billion dollars) and for three-fourths of the nation's consumer co-operative activity. Conservative estimates indicate that one out of four farmers participate in one or more farm co-operative enterprises.

Farm co-operatives (other than service types) fall into three general categories. They include:
  • groups which perform marketing services alone; 
  • groups which perform purchasing services alone; and 
  • general purpose organizations which provide both marketing and purchasing services.

Producer-marketing co-operatives, representing approximately one-third of our farm co-operative organizations, are moving consistently in the direction of general purpose co-operatives. Indications further suggest that they, along with other marketing organizations, will process more raw products for ultimate consumption. The strictly purchasing type of co-operative, in turn, appears to be directing interest toward marketing services, so that the over-all farm co-operative end is toward the general purpose organization.

General purpose co-operatives performing both marketing and purchasing services represent approximately one-half of our farm co-operative organizations. The spectacular purchasing volume of this group has not only attracted wide attention but its entrance into production of farm supplies has been cause for concern in many American business circles.

There is no clearly defined pattern of emphasis on either purchasing or marketing in this group but seventeen such organizations had cooperative purchasing volumes of over two million dollars in 1943. The convenience and efficiency of integrating marketing and purchasing operations through one co-operative organization suggests that such associations will dominate the farm co-operative scene of the future. Indeed, in twenty-five years such organizations may represent the strongest and most vocal agricultural voice in the nation.

Co-operative marketing  of farm products faces its most promising era. The relative simplicity and low cost of quick-freezing and dehydration will influence the marketing operations of all co-operatives in the period ahead. These new processes make possible decentralized on-the-spot preparation of foodstuffs for the ultimate consumer. Co-operative exploitation in this field will bring wider margins to the farmer. Still greater gains may be realized when farm co-operatives  relate their output to growing co-operative consumer demands in our cities. Such relationships may benefit both farmer and consumer. The city consumer will become more and more familiar with the word "co-operative" on the packaged foods he buys in the future.

Farm purchasing co-operatives have clearly indicated their usefulness to members and will expand, both in areas of service and in ownership of production facilities. Towards greater self-sufficiency farmers have through their regional organizations secured ownership of a number of factories. While there is no indication that co-operatively owned production units are more efficient than old-line firms, substantial savings have been effected in distribution. The entrance of farm co-operatives into the manufacture of tractors and farm implements is a fundamental step toward the solution of a vital problem.

Co-operative farmers have long realized the disproportion between manufacturing costs and sales price in this field. Co-operative production of farm machinery should, as it has in other areas, influence the costs downward. The path of monopoly in farm factors of production will be challenged increasingly by co-operatives. Farmers have already indicated their determination and ability to produce for themselves. The ownership, for example, of a tractor factory in Indiana by a number of strongly financed regionals both here and in Canada suggests a pattern which can have tremendous implications for American agriculture.

If present signs are significant, we may expect purchasing c o-operatives to move into still another important field of member service. Recognizing that he spends as much as fifty per cent of his income for food, clothing, and other consumer needs, the farmer is showing increased interest in this phase o f consumer co-operation. While some few purchasing associations already provide general consumer services, most do not. The ramifications of such a development are many. Farm co-operatives offering complete consumer services may attract many urban members. Not only can this strengthen the enterprise but it may facilitate rural-urban relationships.

Farmers will then be encouraging urban co-operative development, which development may in turn provide a more direct and profitable outlet for raw and processed food products. In some cases, certainly, the farmer will choose to limit membership to his occupational group. It remains to be seen how the over-all trend will develop. But farmer interest in more directly meeting his consumer needs is already established and the next decade should witness considerable enterprise in this field.

Urban consumer co-operatives.

In our cities, co-operative development has been limited by a number of factors. Keen competition in the retail field has kept margins low and exploitation at a minimum. Successful invasion of the anonymity and heterogeneity of cities by the co-operative philosophy has been a slow and uphill task for organizers. Progress, however, is constant and current signs are more promising than at any other time in the past twenty-five years. We can reasonably expect urban membership and volume to double in the next ten years. Organization techniques are reaching a new level of realism and effectiveness. Broad endorsement of consumer co-operation by labor union groups is "softening" resistance in many urban centers.

Greater responsibility for organization is being taken by regional wholesale units in the East and Middle West. Streamlined techniques for financing from the "top down" are receiving attention in some sections of the country. Methods of advertising and publicity are approaching competitive quality. Physical plant and equipment, likewise, are more nearly meeting the high standards of competitors.

The attitude today is no longer one of waiting until the public spirit moves. It is one of aggressive and intelligent organization, limited only by the availability of competent staff organizers. Realistic appraisal of present co-operative groups is giving the cue to a more effective education of similar groups. New housing units, publc and private, have lent themselves with particular ease to co-operative organization. The postwar trend toward suburban housing units is a promising field for co-operative penetration.

With a myriad of services offered by consumer associations the food co-operative continues to receive major emphasis. While co-operative production of strictly consumer items represents less than seven per cent of total co-operative manufacture, we may reasonably anticipate expansion of consumer production in the next few years. Such a trend will be augmented by the increasing consumer interest of our farm groups.

Urban consumer development is the number one co-operative problem today. Progress is being made but at few points do we find the spontaneous and natural enthusiasm which so often characterized the rural development. Expansion will take place but it will require tireless and intelligent organizational effort.

Service co-operatives.
Because of their specialized functions, service co-operatives too often receive less attention than their more glamorous associates. These units do, however, play an important role in the over-all co-operative picture. From barbering to burials, these enterprises serve several million rural and  urban Americans. By their almost infinite variety they indicate that co-operatives can adapt themselves to a wide range of consumer experiences.

Co-operatively sponsored insurance now services nearly a score of states. Expansion in all lines is indicated with special emphasis on the extension of health protection. Rural electric co-operatives are growing likewise and have already established a sound basis for the trend toward public ownership of such utilities. Credit unions servicing over three million members have deposits of more than one quarter billion dollars. The small decline in loans and membership during the war is not significant in the long-run development of this enterprise. It is hoped that the future will indicate methods of relating this important service more directly to other areas of consumer co-operation.

The efficiency and quality of service which these service c o-operatives are displaying will doubtless stimulate the trend towards greater public control and ownership in these fields.


Three operational areas, including finance, personnel, and national integration, appear to merit special if brief attention. These trends relate themselves to the rural-urban co-operative pattern as a whole.

Finance directions.
Financial stability of co-operative organizations on both local and regional levels is generally the best in their histories. Member equity in ratio to capital structure is at a new high. While warborn
prosperity has made this possible in many cases it also reflects the determination of most organizations to prepare for possible slumps ahead.

While much of this capitalization has resulted from plowing savings back into the various organizations, a considerable amount has come from member subscription. This appears to indicate a rising level of confidence by members in their own institutions. With the existence of strong and well-financed regionals which provide technical assistance to local associations, co-operatives are reaching a new level of business stability.

Few large co-operatives, however, have yet been able to meet all of their credit demands. Short and long term credit requirements are being met largely by commercial and government co-operative banks. It is in this field that a promising direction is indicated. In process of organization is the National Co-operative Finance Association. At the outset this institution will meet credit demands of its affiliates by providing discount services. In the long run it may provide banking services for the movement as a whole through a local, regional, and central bank structure. Cooperatives today are paying for credit they are clearly able to provide themselves. Such credit bears strategic relation to the safety, stability, and financial independence of the co-operative movement.

Personnel Directions.
In the formative years most co-operatives were long-hour and low-pay institutions. Skilled personnel was difficult to attract under these conditions. Familiarity with and devotion to the cooperative philosophy was too often the first requisite of employment. While such conditions still prevail in many areas, the over-all personnel picture is improving.

War pressures on labor supply plus the improved f inancial structure of most co-operatives probably account for increased attention to the general personnel problem. Most regional organizations now employ personnel officers. The national League has put into operation a Personnel Committee. Job instruction and job relations are receiving greater staff attention. Regional and national training programs for employees have improved in quality. Greater emphasis is given to techniques and less to ideologies. Wage levels for employees have generally advanced to meet higher wartime l iving costs. Hiring of technically skilled staffs is becoming more commonplace. And the movement as a whole is gradually outgrowing the conviction that top employees must take half their salaries "in the good of the cause." Such an attitude plus the reluctance of cooperatives to pay for the services of technically skilled personnel has generally retarded co-operative development.

The entire field of labor relations is opening up for co-operatives. This area will present many practical problems in the future. Co-operative commitment to broad social goals will constantly influence its relation to the employee. Co-operatives in the long run have the responsibility of not being merely "good" employers; they must be "better" employers.

National integration.
There exists in co-operative circles today certain pressures toward the integration of all co-operatives into a functional national movement. This implies an organization of sufficient size and scope to integrate the operations of the wide range of producer, marketing, consumer, and service co-operatives. From a practical point of view such a national organization has much to recommend it. There is no present indication, however, that such an organization will develop in the near future. It will take considerable time and effort.

If European and Scandinavian precedents were to apply here in America we might ultimately expect a strong federation of consumer co-operatives-with marketing co-operatives relating themselves to, but not becoming a part of, such a federation. But even this situation cannot be accurately forecast. Co-operative integration in America is still too much in process to predict what national directions it will take. There is as yet no clearly defined national consumers' movement. Farm groups with basic loyalties on the producer-marketing side are dominant factors in American co-operation. Their strong purchasing programs have related specifically to their own producer interests (i.e. the purchase and production of producer supplies). As earlier stated, these groups are gradually turning their attention to the consumer aspects of farmers' own needs.

When and if the activities of these strong co-operative groups should reach a balance between consumer and producer interest, we may expect the greatest possible national integration. But whether this should or should not happen, we may anticipate a growing number of economic and operating relationships between these two groups. The fact that the urban consumer movement today is not yet strong enough to provide marketing co-operatives with general outlets for their products is in itself a curb on national integration. The hope is that with (i) the emergence of a stronger urban consumer development, (2) with farm marketing groups relating their products directly to such groups, and (3) with the growing number of economic relationships which appear likely between the two groups--we may some day find ourselves woven into an effective pattern of friendly and purposeful relationships. National integration is a goal we strive for. We cannot help reaching it if our basic co-operative groups will consider first the areas in which they may serve each other effectively. In the long run their differences w ill merge into a vital pattern of service, both to themselves and to the American community.


Social directions.
We have in the preceding discussion considered principally the economic and structural aspects of the co-operative move ment. As co-operation in America grows and expands, so will its moral force contribute to the changing social f abric of our national community. Co-operatives have brought meaningful integration to thousands of American communities. They have brought dynamic group relationships into the vacuum of twentieth century individualism. They have given to individuals the sense of belonging, the values of participation and the fact of ownership. They have related millions of citizens to the social and economic world about them. And they have brought Christian idealism into practical focus with daily living.

We seek here in America to maintain the fact and values of democracy. But democracy is not a static quantity which perpetuates itself. It is a process demanding constant and effective participation. The man on the street must be able to relate his voice as a citizen to the very halls of Congress. Today, our danger lies in the fact that too many have too little understanding of this vital two-way relationship. The problems we face and the decisions we as a nation must make in the near future will severely test the quality and strength of American democracy. The existence of thousands of co-operative organizations throughout America with informed members who both know and practice democracy, will serve us well in the period ahead.

Wherever co-operatives operate they are providing, at least in part, the fundamental grassroots organization which America needs today. They are providing practical education. They are building a more responsible and moral citizenry. And they are relating those citizens to their local and national communities as well.

The total influence of  these co-operative "by-products" is admittedly small in terms of the over-all national community. But as the movement grows, and as it invades our great urban areas, we may expect to find less and less of the helpless and apathetic individualism we see there today. The strong cohesive forces of co-operation have yet to demonstrate themselves in an American emergency. But in the stormy political and
military chaos that is Europe today, we are learning that co-operative structures-in spite of invasion and suppression--still stand strong and ready to assist in the reintegration of people and nations. The whirlwinds
of war and political upheaval have not destroyed them.

Political directions. 
Co-operatives traditionally maintain strict neutrality in the political sphere and there is no present indication that such a policy will change. This does not preclude, however, united co-operative action in legislative matters relating to co-operative welfare. The current National Association of Co-operatives, for example, has been organized in defense against possible legislative changes which would affect farm co-operatives adversely. Co-operatives must, at any moment, be prepared to enter the legislative arena on their own behalf. In the current field of political pressure the National Council of Farm Co-operatives is our strongest co-operative voice in Washington. This organization, composed of a wide variety of farm co-operatives, primarily reflects farm producer interests. Regardless of increased consumer activities in the farm co-operative field this organization is likely to continue its emphasis on producer problems. And if current expansion of farm cooperatives continues we may expect this organization or its counterpart eventually to present one of the strongest and most effective agricultural voices in the nation.

A new political direction for co-operatives, however, is indicated. Pressure for adequate consumer co-operative representation in Washington is growing. Not only will such an organization represent the
co-operatives, but it will tend to represent the broad interests of all consumers as well. Such an organization is needed today. The Co-operative League through its office and staff in Washington is equipped to perform some of these services, but genuinely effective consumer representation will come only when it has the backing of a great consumer movement.


Before this war national federations of co-operative societies in forty countries throughout the world were united in the International Cooperative Alliance. This organization brought together over one hundred thousand societies and a hundred million members. With the successful conclusion of the war we will make another effort at world peace. The continuation and expansion of these co-operative relationships can augment the common understanding and friendly relationships necessary for such peace.

International co-operative trade among the many countries in Europe before the war was an important factor in continental commerce. Cooperative imports from the United States involved upwards of thirty million dollars annually. American co-operatives, coming out of this war the strongest in their histories, are making plans to relate at least part of their production to this form of international trade. At the outset, petroleum will represent the principal factor of trade.

It is further hoped that raw and processed foodstuffs may be exchanged. As co-operative production increases, especially in the machinery and farm supply field, it may be possible to relate part of such goods to foreign co-operatives. Multilateral trade agreements are indicated. Under such a plan American co-operatives might, for example, ship processed foodstuffs to Britain, Britain sending shoes to Brazil, with Brazil in turn shipping coffee to our own co-operative organizations. Delegates to the Conference on International Co-operative Reconstruction held in Washington in 1944 recommended the establishment of an International Co-operative Trading and Manufacturing Association which would facilitate the exchange of food and petroleum.

Farm supply commodities were to be added as soon as possible. Whether such an organization will actually emerge and operate is not clear at this time. American co-operatives, however, can be expected to turn increasing attention toward international co-operative exchange in the future. Bulwark for democracy and wholesome force in the American social and economic community co-operatives will contribute substantially to the redefinition of democracy in this country and its re-establishment in the world.