Wolfgang Karrer

Ferdinand Lundberg

 

was a one of the later muckraking journalists with a socialist orientation. Among his books, one stands out:

America's 60 Families (New York: Vanguard Press, 1937).

In it Lundberg sets out his major thesis: 60 of the richest families in the USA group themselves behind five major and several minor bank alliances, which look after their economic interests. And through these bank alliances, the sixty families control corporations and politicians. This has been going on at least since 1893; a major change came in the 1920s, when finance capital practically ran the government (the Mellon years), and another, when the depression and the New Deal created a new conflict between major capital groups.

The book is well researched and documented, a much more thorough job than that done by Upton Sinclair in his books.  Fortunately, Lundberg's book has been put on the web; you can download it under:

 

archive.org

 

His method is simple. Lundberg analyzes the political career of each U.S. president before the election, the nomination and the campaign finances (slush funds), the composition of the cabinet, and the main political acts and interventions while being in office. The results are staggering, to put it mildly.

I here publish a detailed outline, naming the major banking alliances, and the presidents of the USA they more or less controlled. 


 

Lundberg, Ferdinand. America`s 60 Families.
New York: Vanguard Press, 1937.

Acknowledgements vii-x
general approach: Marx and Veblen x

Foreword xi-xii
Purpose of the book: to answer two blunt questions:
- who owns the great American fortunes today, and
- how are these fortunes used? (xi)

1. Golden Dynasties and their Treasures (3-22)
- The dynasty: "The United States is owned and dominated by a hierarchy of sixty of the richest families, buttressed by  no more than ninety families of lesser wealth ... These families are the living center of modern industrial oligarchy ... (3)."
- J. P.Morgan, A. Mellon, J. Rockefeller + H. Ford and Du Pont are at the top
- The inner circle of American wealth compared to Europe and India (6-7).
- U.S. a plutocracy (or "dollar democracy"): Concentration of industrial and financial control: "It is the family that,  in almost all the cases, guides the banks and the banking partnerships which as Anna Rochester [Rulers of America, 1936] shows, control the corporations." (8)

[MODEL: families > banking partnerships > corporations]


Dynastic interlocking through intermarriages (9-22): esp. the Standard Oil families (Rockefellers + Aldrich, Stillman, McCormick etc.) leading to:
- Nepotism: looking after one's kinspeople (17)
- Women as heirs give little to society (in charity or donations) (20)
- Rigidity of class lines makes a caste system inevitable (22)

2. The Sixty Families (23-49)
The 1924 tax report allows to list the richest families (number 1 to 38 reporting as families; number 39 to 60 are individuals paying taxes for their families); difficulties and omissions in compiling such a list; the role of "deputies of gold" like Owen D. Young or Thomas W. Lamont; other famlies are missing from the list; method of computing (23-34)


TABLE OF FAMILIES (26-27)

1. Rockefellers (Standard Oil)
2. Morgan Inner Group (J.P. Morgan & Co.)
3. Fords (Ford Motor co.)
4. Harknesses (Standard Oil)
5. Mellons (Aluminum Company)
6. Vanderbilts (N.Y. Central R.R.)
7. Whitneys (Standard Oil)
8. Sandard Oil Group (Standard Oil)
9. Du Ponts (E.I. du Pont de Nemours)
10. McCormicks (Int. Harvester and Chicago Tribune)
11.Bakers (1st National Bank)
12. Fishers (General Motors)
13. Guggenheims (Amer. Smelting & Rfg. Co.)
14. Fields (Marshall Fields)
15.Curtis-Boks (Curtis Pub. Co.)
16. Dukes (American Tobacco)
17. Berwinds (Berwind-White Coal Co.)
18. Lehmans (Lehman Brothers)
19. Wideners (Am. Tob. & Pub. Utilities)
20. Reynolds (R.J. Reynolds Tobacco Co.)
21. Astors (Real Estate)
22. Winthrops (Miscellaneous)
23. Stillmans (National City Bank)
24. Timkens (Timken Roller Bearing Co.)
25. Pitcairns (Pittsburgh Plate Glass)
26. Warburgs (Kuhn, Loeb & Co)
27. Metcalfs (Rhode Island textile mills)
28. Clarks (Singer Sewing Mach. Co.)
29. Phipps (Carnegie Steel Co.)
30. Kahns (Kuhn, Loeb & Co.)
31. Greens (Stocks and real estate)
32. Pattersons (Chicago Tribune, Inc.)
33. Tafts (Real Estate)
34. Deerings (International Harvester)
35. De Forests (Corp. Law practice)
36. Goulds (Railroads)
37. Hills (Railroads)
38. Drexels (J.P. Morgan & Co.)
Family Taxes paid by Individuals:
39. Thomas Fortune Ryan (Stock market)
40. H. Potter (Cleveland) (Auto parts)
41. Eldrdge Johnson (Victor Phonographs)
42. Arthur Curtiss James (Copper and railroad)
43. C. W. Nash (Automobiles)
44. Mortimer Schiff (Kuhn, Loeb & Co.)
45. James A. Patten (Wheat market)
46. Charles Hayden (Stock market)
47. Orlando F. Weber (Allied Chemical & Dye Corp.)
48. George Blumenthal (Lazard Frères)
49. Ogden L. Mills (Mining)
50. Michael Friedsam (Merchandising)
51. Edward B. McLean (Mining)
52. Eugene Higgins (New York real estate)
53. Alexander S. Cochran (Textiles)
54. Mrs. L. N. Kirkwood
55. Helen Tyson
56. Archer D. Huntington (Railroads)
57. James J. Storrow (Lee Higginson & Co.)
58. Julius Rosenwald (Sears, Roebuck & Co.)
59. Bernard M. Baruch (Stock market)
60. S. S. Kresge (Merchandising)


Many of these families align behind:


BANKING PARTNERSHIPS such as (in order of their family importance in 1937):
1. J. P. Morgan (JPM), 
2. Kuhn Loeb & Co (KL), 
3. Brown Brothers & Harriman, 
4. Lehman Brothers, 
5. Dillon Read & Co, 
6. Bonbright & Co (JPM), 
7. Lazard Frères, 
8. J. W. Seligman, 
9. Speyer & Co, 
10. Goldman, Sachs & Co, 
11. Hallgarten & Co, 
12. Ladenburg, Thalman & Co (34)

Other families operate without a partner through:

SINGLE BANKS (34-35):
- Mellons (Pittburgh banks) Mellon
- Christiana Company
(Du Ponts)
- Rockefellers (Chase Manhattan Bank) JR
- Ford (National City Bank) NCB
- Warburgs (KL)
- Schiffs (KL) (35) 
  

MAJOR BANKING ALLIANCES IN THE USA (38-39):
- JP MORGAN (JPM) controls 35 banks and insurance companies, and 60 others
- JOHN ROCKEFELLER (JR) controls CHASE and at least 36 other companies
- ANDREW MELLON (
Mellon) controls 35 banks and insurance comp., 40 others
- KL (Schiff and Warburg families, free of Morgan or Rockefeller influence)
- LB large influence in N.Y. City and State through mercantile connections
* NATIONAL CITY BANK (
NCB) (a coalition of JPM, Stillman, JR a. o.)

RANKING BY SIZE:
(1) Chase Manhattan Bank (
JR),
(2) NATIONAL CITY BANK  (NCB),
(3) GUARANTY TRUST CO (JPM-GT) (37)

Morgan  mainly controls through minority holdings where family shares  scatter, his four major banks outrank Chase and NCB

THE MORGAN EMPIRE AS AN EXAMPLE OF CONTROL (42-44)

THE BIG FOUR JPM BANKS (36-37): Guaranty Trust Co. (NY), Bankers Trust Co , First National Bank (NY), NY Trust Co. they control: A.T. & T.,  U. S. Steel Corp.,  General Electric, Consolidated Edison Comp. of New York, United Gas Improvement Company of Philadelphia,  Standard Brands, Inc.,  Montgomery Ward & Co.,  I.T.T.,  Kennecott Copper Corp.,  N.Y. Central Railroad,  General Motors Corp. E.I. du Pont de Nemours, and many others

THE UNEVEN DISTRIBUTION OF INCOME IN THE US 44-49
Lists show the social weakness of the majority, and the power of a small minority


3. The Politics of Pecuniary Aggrandizement, 1896-1912 (50-105)

The power of the 60 families is brought to bear on politicians: the presidents, their cabinets, and members of Congress:
"Government has been the handmaiden of private wealth since the origin of society." (50):
- colonial origins of the U.S. in royal grants (50)
- U.S. Constitution tied government, freed enterprise (51)
- Civil War created huge fortunes through fraud (53),
- The Hanna system of organized influence of business groups:
Marcus Alonzo Hanna, a JR man, brings in the open the organized power of business to work on the parties, he gradually replaces the old system of  bribes with a system in which business places its own men high in government:

THESIS: " ... the men placed in the highest public offices from McKinley through Hoover were all he political creations of the wealthy... (53)

GROVER CLEVELAND (55-57) a political creation of Whitney, JPM and Belmont.

- Whitney (Tammany, and JR background),  Belmont issues bonds to Cleveland
- C. was made trustee of the (Harriman-Ryan) Equitable Life Insurance Society,
- C. participated in stock market pool with Whitney (his Secr. of Navy (56-57) ,

WILLIAM McKINLEY(57-66) a JR man from the Ohio Standard Oil machine

a product of the Hanna machine, Hanna a schoolmate of JR in Cleveland (57),
McKinley had gone bankrupt while Governor of OH, secretely salvaged by Hanna, Frick, Taft, Carnegie a.o.; MCKinley chose an OH senator as Secr. of State to open a Senate seat for Hanna; OH legislature was controlled by JR (59);
McKinley
- raised tariffs, made anti-trust law a dead letter, went on the Gold Standard,
- went to war with Spain, pressured by Theodore Roosevelt, Secr. of Navy, the Hearst and Pulitzer press; NCB benefited most from the war, it opened branches in Cuba and all over Latin America; NCB had its man in the Treasury (Gage) (61-3)
- supported trust building: 92 trust corporations were launched in 1899 in the new form as holding companies (that voted the stocks without consulting the actual owners), many of them organized by JPM (63); the census of 1900 showed that 185 of the new combinations controlled one-third of the manufacturing resources of the nation (63)
- re-election in 1900, the cabinet filled with JR, Mellon and JPM men; opening the rise of international finance capital that was also interested in filling the U.S. Embassies esp. in London, Tokyo, Paris, Berlin, Rome (mostly JPM
deputies) (65)
- assassination of McKinley in 1901 brings vice president T. Roosevelt into power

THEODORE ROOSEVELT(66-98) a JPM man, temporarily opposed by JR.
raised by the JPM clique and furthered by Vanderbilt (66); a maverick as NY governor, but under control by Harriman; vice presidency was planned as a dead end for him; Roosevelt belieived that JR was hostile to his career (67-8).
T. Roosevelt
- agreed with the Senate industrial bloque of industrialists (JPM power-broker Aldrich) to continue McKinley's politics, and under his presidency the JPM group made the greatest progress in its history (69)
- submitted all his major proclamations to review by JPM people and NBC, secretely corresponded with Harriman about appointments (69)
- never touched JPM in his trust-busting (pseudo scandal), but had serious problems with JR who opposed he new Dept. of Labor and Commerce (70-71); his cabinet contained agents from JPM, Frick, Ryan (72)
- managed the secession of Panama from Columbia, to control the building of the Panama Canal (under a KL company), wresting control from a French Company  through JPM channels (72-75)
- re-election 1904; Republican slush funds, scandals (George W. Perkins, a JPM partner) (76-81); TR continues his verbal radicalism, attacks S.O. (JR), the American Tobacco Trust (JR control), and generally strengthens the Morgan - Mellon - Frick alliance (87-88);
- supports the Aldrich-Vreeland Bill that created underwriting of finance capital by the central government up to 90% of their pooled assets (89)
- continued to build up the Navy, expanded presidential powers: secret Pacific Ocan treaty with UK and Japan (90);
- the 1907 "Banker's panic" allowed JPM to swallow up the Tennessee Coal and Iron group (for the ore), some of the bankruptcies favor both JR and JPM, TR suspended anti-trust proceedings against JPM  (91-4), did not pursue other anti-trust proceedings against International Harvester or railroad companies (96)

"In 1900, for example, there were 149 trusts of $ 4,000,000,000 capitalization; when the 'trust-busting' Roosevelt breezed out of the White House, there were 10,020 with $ 31,000,000,000 of capitalization." (100 note).


WILLIAM HOWARD TAFT (98-105) a golf player, with support from JR
partly redressed the balance, by helping JR and  Du Pont, by hindering JPM
Taft
- reformed the protective Payne-Aldrich Act of tariffs (101)
- started 44 anti-trust suits (compared to Rooesevelt's 25), incl. U.S. Steel (102)
- continued the imperialist foreign policy of Roosevelt (102)
- favors NCB and the Sugar Trust (104); secret deals revealed by the Pujo Committee investigation (1912): a small group of bankers (the "Money Trust") controls banking, insurance, trust companies and transportation system through interlocking directorships: JPM, NCB, and 1. National Bank (Baker) (104)

4. The Politics of Pecuniary Aggrandizement, 1912-1920 (106-48)
1912 elections; the Republican nominations pit Taft vs. Roosevelt (who was backed by Perkins, a JPM man); TR opens a third party the Progressive Party ,and gives the White house to:

WOODROW WILSON (12-148) a NBC and Copper Trust man (Dodge)
supported by the Money Trust, esp. by Dodge, his classmate, and George W. Harvey (a JPM man) who recommended WW for a political future and advised him throughout his administration (112-17)
Wilson
- (First Administration): reforms: tariff, graduated income tax, 8 hour day, a new (lame) Clayton Antitrust Act (120-21)
- Federal Reserve Act (an Aldrich initiative, a central bank system designed by Warburg) which helped the NY banks (in hands of the Money Trust) to run the other 11 banks of the system (121-23)
- Mexican Revolution concerned the U.S. oil and copper interests in Mexico: S.O. (JR) had ousted Porfiro Diaz, and struggled with British oil interests, Dodge backed Carranza (with NCB backing), U.S. created border incidents (123-27);
- (Second Administration): World War I preparations: US gov. expenditures:  $35.413.000,000; net corporate profits: $38,000,000,000 (134), two-thirds of these profits went to the Money Trust (NCB + JR + JPM)
via war debt financing of the allies (135); NCB persuades Wilson to give loans (as "credits") to the Allies; WW secretely gives permission o float the huge Anglo-French Loan (137-38); JPM head of a syndicate floating this loan with: Guggenheim, Stillman, Baker, Carnegie, Astor a.o. (139-40); pressure on WW to declare war (to save US loans) after collapse of the Czar regime in 1917 (141), Wilson declares war;
- hands over the wartime economy to businessmen, esp. JPM men; (143) War Industries Board was run by Bernhard Baruch (NCB), who packed the Board with speculators and industrialists: a long list incl. Stettinius, Hoover, Vanderlip etc.; the War Dept. used the Red Cross Missions as a political arm in Europe (143-48)

"All the postwar international financial conferences were dominated by J. P. Morgan and Company, which floated most of the choice postwar international loans, including the two Reparation Loans." (148)

 

5. The Politics of Finance Capital, 1920-1932 (149-88)

The Republican Administrations of the 1920s meant that finance capital had taken over the government, using inept presidents and surrounding them with their men, especially Andrew Mellon (Treasury).

WARREN G HARDING (151-69) a Standard Oil (JR) man, run by George W. Harvey (JPM)
- Republican nomination, engineeered by Harvey (157); Will Hays (Sinclair Oil Comp.) took care of the Republican slush funds (157)
- Election victory (159-62): Andrew Mellon (Treasury) and Charles Evans Hughes (State) were the most important nominations, plus Harding's personal "poker cabinet"
- Administration (162-69): relief for business in war debt (Hughes), leasing Naval oil reserves (Fall, Interior), fostering monopolies through trade associations (Hoover, Commerce), lowering income tax for the rich and facilitating tax evasion (Mellon; revealed by Couzens Senate Committee which also enforced the publication of the 1923/24 tax payment reports, the basis for Lundberg's list)

CALVIN COOLIDGE (169-76) a JPM man, managed by Dwight W. Morrow (171, 174)
- Election Republican slush funds (171-73): many donors sought to buy indemnity, as they were under indictment (173)
- Administration: some cabinet changes, but Mellon and Hoover stay in place (173), Morrow becomes ambassador to Mexico; Coolidge favors the rich and vetoes any bill against their interests (176)

HERBERT HOOVER (177-88) "a Morgan puppet" 177, run by Morrow and Thomas W. Lamont (JPM) (184)
- Election, Republican slush funds (179-82)
- Early days (182-84): cabinet Stimson (JPM), Adam (JPM), Robert P. Lamont (JPM, no relation to T.W. Lamont), Brown (JR) in English Embassy
- Breakdown of the economy (184-88): Hoover does nothing, just like JPM; this angers JR (falling oil price, and real estate prices, Chase in trouble) 188


6. Intrigue and Scandal (189-243)
Special rights and privileges: visible in the war corruption and the speculative boom that followed:

WAR PROFIT SCANDALS (189-204)
Bernard M. Baruch (NCB) was made head of the War Industries Board: he and Dodge (Copper Trust) loot the government during the war (190):
-  price fixing in copper (Anaconda, Guggenheim ...) (191-93)
- air planes (193-96) offered by sham companies that never delivered (Deeds)
- steel overcharging (U.S. Steel, JPM and Bethlehem ) 197
- nitrate program, overcharging (Baruch) for ammunition (197)
- leather goods and miscellaneous, all overcharged (Sears Roebuck) 198
- artillery shells (199) which never reached the firing line
- "fly-by-night" war corporations (200) involving JR
Summary (201); after the war, claims and counter claims between government and corporations (201-04)
 
THE TEAPOT DOME CASE (204-10)
alienating the Naval oil reserves (by bribing Fall, Interior) for the Sinclair Oil Company and Doheny Oil Comp. (a lot of JR and Chase were people involved); major scandal, broken by Pulitzer's Saint Louis Post Dispatch; Fall goes to jail (205-6)

OTHER SCANDALS (210-17)
- The Shipping Board Scandals (210): selling ships after the war to favorites
- The air plane grabs (211-16): Postmaster General alots airlines to favorites and subsidizes them by paying high mail rates, coercing competitors out of business; beginnings of American Airways and TWA (Mellon), Vanderbilt and JPM also profit

THE SPECULATIVE BOOM (217-24):
triggered by using the Federal Reserve System under the influence of Strong (JPM), "flooding the banks with liquid funds hat demanded profitable release in credit channels" (219), which leads to a quadrupling of loans and stock values between 1924 and 1929 with hundreds of investment funds launched: the "boom" (219),  enriching the families entrenched behind the main banks:
- looting the railroads (220),
- making loans to stock-market pools,
- participating through their securities affiliates "in 454 pools, whose objective was to unload stocks at artificially advanced prices upon a public misled by its newspapers and its political leaders" (220)
The main banks (also big corporations and rich individuals) induce public to buy stock: NCB, CHASE, JPM with GTC, BTC, Equitable Trust etc.) (222-24),
the bank directors also operate their stock illegally through their securities affiliates, syphon off up to 20% through management funds, make available stocks at reduced rates to leading stockholders, vote themselves enormous salaries, and unload worthless or risky foreign loans (Peru, Cuba) on the public (225-38)
only minors are caught Ivan Kreuder, Sam Insull (238-39), many indicted, but no members of the major families are sentenced  (224-25)


7. The Press of the Plutocracy (244-85)
"The journalism of the United States, from top to bottom, is the personal affair - bought and paid for - of the wealthy families." (244)
The U.S. press is "controlled, on the political plane, through the Republican and Democratic Parties, with about seventy-five per cent of the press organs under the tutelage of the Republican Party." (245)
Three broad layers (245-46):
- top layer: "organs, directly owned, of he wealthy families themselves": metropolitan papers
- middle layer: "independent" newspaper entrepreneurs, affiliated with the inner circle of great wealth; controlled by advertising
- bottom layer: "the directly controlled and financed party press" mainly rural and small-town press; 75% straight Republican
Analysis here restricted to top layer (247), but see (279-85):

THE ROCKEFELLER FAMILY (257-51)
has given up their old policy of owning newspapers and magazines outright, relying now on advertising, they control (after JPM) the largest block of all national advertising among the wealthy families (247)
- early ownership in Pennsylvania, NY, Ohio (247);
- bribery and payment to The Outlook (248), Women's Home Companion, Saturday Evening Post a.o. (249),
- creation of products just for advertising in newspapers (250)
- control of International Paper (250-51)
- family relations to the McCormicks, Harknesses, and Whitney groups (251)

THE MORGAN BLOC (252-58)
owns or controls newspapers directly or through advertising (largest share of all in advertising)
- used Munsey to buy and kill papers critical of JPM: Daily News, Boston Journal, Boston Evening News, Philadelphia Times, New York Globe (252-53)
- used Harvey who ran the North American Review and Harper's Weekly (255); (JPM had reorganized Harper's), allied with Shaffer (Chicago) (255)
- partner with Thomas W. Lamont, "owns/controls: Evening Post, The Saturday Review of Literature, Crowell Publication (Collier's Weekly a.o.)
- holding control in the Luce empire of magazines (Time, Fortune etc.) (256- 7)
- direct control over various newpapers via U. S. Steel (257)
- family relations via Lamont with Mid West publishers (258)

THE FORD FAMILY (258-9)
used his Dearborn Independent for vicious anti-semitic propaganda

WHITNEYS HARKNESSES MELLONS AND ASTORS (259-60)
hold interests in Time, Fortune (with JPM); Mellon in News-Week; Astor since 1922 in the London Times; Mellon-Frick also control the Pittsburgh press (260)

DU PONT (260-62)
control he Delaware papers (260), exert pressure through General Motors advertising (25%) and U. S. Rubber (261); control foreign language newspapers with the American Association of Foreign Language Newspapers through advertising (261)

MCCORMICK DYNASTY (262-64)
family split between Chicago Tribune and Harvester now re-united (262); also controls NY Daily News (262), other Illinois papers

GUGGENHEIM (264-5)
own papers in their mining areas, use the National Security League to pressure papers, and the League to Enforce Peace to draw the U.S. into war (265)

HEARST (267-69)
mainly mining wealth, using the papers or political influence, linked with CHASE and NCB, long list of newspapers and magazines
(Lundberg had just published a muckraking book on Imperial Hearst (1936)

MILLS REIDS (269-70)
owners of NY Herald Tribune and the Paris Herald; the Reids family friendly to JPM, Herald Tribune under strong JPM influence

MISCELLANEOUS (274-319)
- Papers directly owned by rich families (274-78)
- Papers owned by their political agents (278-79)
- Papers of the middle layer: "independent" press: esp. the Scripps-Howard chain (279-82), originally pro-labor, but changing; Baltimore Sun 282, Saint Louis Post Dispatch (Pulitzer) (23-4), plus The Nation (O. G. Villard) and The New Republic (W. Straight, married to a Whitney) (284)

8. The Journalism of Pecuniary Inhibition (286-319)
"The centralized class control over the American press by the very rich has been evidenced most dramatically in the great unified newspaper campaigns ..." (287): against Bryan, for the war, for Coolidge, against the re-election of F. D. Roosevelt (287)

CENSORSHIP (291-302)
- suppressing scandals of the rich 291, and important speeches or news
    (such as the telegram by Ambassador Page urging Wilson to enter World War I to save U. S. loans (295);
- suppressing labor news (296)
- distorting farmer and middle class interests (unemployment numbers, fraudulent medecine advertising etc.) 296-99)
- distracting attention to safe or sensational news (underworld, Lindbergh flight as a cover for aviation interests etc.) (301)
All this leads to private news services, supplying the information missing in the press (301)

PRESS CORRUPTION (302-19)
wide-spread venality of the middle and bottom layer of the press; examples:
"The Federal Trade Commission, investigating the public-utilities industry, which is dominated by our richest families, found that the General Electric Company (Morgan), the Electric Bond and Share Company (Morgan), and the American Telephone and Telegraph Company (Morgan) had subsidized E. Hofer and Sons, operators of a rural press service that placed propaganda in fourteen thousand newspapers. The Darnell Press Service, in pay of the National Electric Light Association, supplied six hundred newspapers in Alabama, Georgia, Misssissippi, and Florida with antipublic-ownwership propaganda." (302)
other cases: Shipping Board, Chicago Tribune, Brewers Association, Hearst and Southern Pacific, Macy etc. (303-08)
Time Inc. (308-12) eulogizing JPM, JR, Du Pont etc.
Thomas W. Lamont (312-19) a JPM henchman and trouble shooter, specializing in press influence: promoting JPM, placing journalists, suppressing criticism of JPM, regulating language use (not to refer to "the Morgan banks"), covering up JPM scandals etc.

9. Philanthropy, or Non-Commercial Investment (320-73)
Foundations (main source E. C. Lindeman. Wealth and Culture, 1936)
no more than 2% of the income of the richest families goes to philanthropy, and downward trend, some of the richest families do not give at all to philanthropy: the Mellons, Du Ponts, Fields, McCormicks, Fricks, Morgans (Lundberg names 23 of 60) (323)

- THE TWENTY LARGEST FOUNDATIONS (324-35)
88.6% of all effecive foundation capital, Carnegie and Rockefeller the main donors, account for 60% of all 123 foundations examined (325), lists (25-27)
control of the investment folios remains with the donors; capital transfer, mainly to evade income or inheritance taxes (328); donors do not relinquish voting power on the stocks they transfer (352)

- THE DUAL ASPECT OF FOUNDATIONS (335-56)
(A) Doing Good:
 Educational grants (337-38) to ensure steady supply of engineers, lawyers, doctors,
Medecine and Health (338-44) to provide research or hospitals for the rich, little philanthropy
Social Welfare (344-46) only 14% of the foundation grants, static
(B) Retaining Power (346-56):
donations when under attack, to evade taxes, and to retain industrial control, to gain social power; often only when no (male) progeny (Carnegie) 346
examples (347-56)
Pseudo Philanthropies (356-64) to finance other things
Great Art collections (364-71) as a kind of insurance policy against currency depreciation (like gold)

10. Education for Profit and Tax Exemption (374-407)
donations function like in foundations (main source Jerome Davis. Capitalism and Its Culture, 1936), they  reveal class consciousness: most money goes to schools of the rich (347)

- THE TWENTY UNIVERSITIES AND TECHNICAL COLLEGES (375-86)
listed with mangement control and main donors, and size of the endowments:
JPM management control: 1. Harvard, 2. Yale (shared with JR), 12. Johns Hopkins, 17. Univ. of Pennsylvania,
JR control: 2. Yale (shared with JPM), 4. Univ. of Chicago, 10. Cornell,
NCB control: 3. Columbia, 11. Princeton,
Mellon control: 20. Carnegie Institute of Technology (Carnegie donor),
Du Pont control: 7. MIT,
other schools in the list carry the name of their donors (Stanford, Duke, Vanderbilt) or are under control of various managers
"All these schols are adjuncts, or departments of the big corporations and banks, and are more or less openly operated as such." (378)
Out of 722 trustees, 247 are bankers, 140 are merchants, 110 are public utilities operators, 144 are professor (protective coloration), 20 are judges (379)
The AT & T (JPM) holds more university trusteeships than any other corporation (384); portfolio lists (384).

- REASONS FOR INVESTMENT (386-95)
support for physical sciences (387-8)
campaign against social sciences (388-95) ousting critical professors like John R. Commons or Thorstein Veblen
endorsement from university presidents (390-94)

- GAINS FROM INVESTMENT (395-97)
advice and counselling (396)
source of patents and inventions (397)
graduates (397-99) either specialists or generalists, a surplus of engineers and lawyers
example of donors (399-407): Eastman (Kodak); Du Pont, Baker etc. Yale and the Harknesses; Eastern "finishing schools" much less endowed .


11. Danse Macabre: Extravaganzas amid Poverty (408-46)
Dinners, Parties, Bathroom pools, etc. (408-18)
Palatial country estates (418-33) incl. gardens and islands
Yachts (433-37)
Pipe Organs (437-8), Private Railroad cars and railroads (438), horses (439-41); automobiles (441-2), airplanes (942), children (443), clothes (444-6).


12. The "New Deal" - and After (447-92)
"In essence the ''New Deal' represents one faction of great wealth - the light-goods industrialists - pitted in bitter political struggle against another faction - the capital-goods industrialists." (449)
light goods: "direct exploitation of the retail market" (department-store owners, textile and tobacco manufacturers, processors, distributors etc.)
capital goods: the heavy industries and the banks
explicit aim of the "New Deal": "to revive purchasing power" (450), reforms "engineered at the expense of the big banks and the heavy industries" (451)

FRANKLIN D. ROOSEVELT (452-91)
- as governor (452-55) campaign,
- election (455): slush funds
- First Administration (457-77) reform acts: NIRA, banking acts, tax measures, experiments; marked hostility against him since 1935 (Astor)
- Re-election 1936 (478-87) slush funds of supporters vs. opponents in the Republican slush funds (Du Pont, JR, Mellons, Whitneys, JPM ...)
- Second Administration (489-92) CIO cooling off; Supreme Court issue, ...

Appendix A (493-95) The Public Utilities Background of Wilson's Backers
Appendix B (496-50) War Profits

Bibl. 501-12
Reference Notes (513-19
Index (521-44) Names, Titles of Institutions, Periodicals, and Branches of Industry

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