Foundations their power and influence rene a wormser 26

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FOUNDATIONS: THEIR POWER

AND INFLUENCE RENE A. WORMSER

FIRST PUBLISHED IN 1958 BY â&#x20AC;&#x201D;

the

DEVIN-ADAIR

COMPANY,

NEW

YORK

lie MV

Library of Congress Card Number 57-8863 First printing, 1958, by Devin-Adair.

Second printing by Angriff Press, 1977, with permission of Devin-Adair. Third printing by Covenant House Books, 1993, wfith permission of Angriff Press. Covenant House Books P. O. Box 4690

Sevierville, TN 37864 615-428-5176 ISBN 0-925591-28-9

' %

FOUNDATIONS: THEIR POWER AND INFLUENCE

by Ren6 A. Wormser This is a searching analysis of some of America's most powerful tax-exempt foundations, their actions as opposed to their stated purposes, the interlocking groups of men who run them, their influence on the country at large.

The author, as counsel to the Reece Committee which investigated

foundations for the last Republican Congress, gained a unique insight into the inner workings of the various Rockefeller, Carnegie and Ford-created giants. He also witnessed the intense and powerful opposition to any investigation of these multibillion-dollar public trusts. The Reece investigation was virtually hamstrung from the start to its early demise— which was aided and abetted by leading newspapers of the country. "It is difficult for the public to understand,'* writes Mr. Wormser, "that some of the great foundations which have done so much for us in some fields have acted tragically against the public interest in others, but the facts are there

for the unprejudiced to recognize.

likemindedness among a group of these giants, which apparently is due to

the existence of a closely knit group of professional administrators in the social science field, the power is magnified hugely. When such foundations dp good, they justify the tax-exempt status which the people grant them.

] \ j

When they do harm, it can be immense harm—there is virtually no

counterforce to oppose them."

}

"The power of the individual foundation giant is enormous. When there is

A NOTE ABOUT THE AUTHOR Riene A. Wormser is a Califomian by birth and a New Yorker by education

akd training. Estate planning is one ofthe fields in which he has specialized during his thirty-eight years of law practice. He is the senior member of the New York law firm of Myles, Wonmser & Koch. He was for years the co ordinator of a course in estate planning at New York University and a member of the Advisory"Board of the New York University Institute on Federal Taxation. He is currently chairman of the Advanced Estate Planning courses of The Practicing Law Institute. He has lectured frequently to bar associations and other professional and lay groups on estate planning and is recognized as one of the foremost authorities on the subject. He is the author of three books on this subject: Your Will—and What Not to Do About It (Simon and Schuster), The Theory and Practice of Estate Planning (Callaghan & Co.) and Personal Estate Planning in a Changing World (Simon and Schuster). He is also the author of a book on international law.

Collection of International WarDamage Claims, published by Alexander

PublisHing Company, and ofThe Law—*The Story of Lawmakers, and the Law We Have Lived By, from the Earliest Times to the Present Day,"

published by Simon and Schuster, and a book on foreign policy. The Myth of the Good and Bad Nations, published by Heniy Regnery. ISBN 0-925591-28-9

INTER-RELATIONSHIPS BETWEEN

FOUNDATIONS, EDUCATION ANDiGOVERNMENT FOUNDATIONS

AMERICAN COUNCIL

OF LEARNED SOCIETIES AMERICAN HISTORICAL ASSOCIATION SOCIAL SaENCE RESEARCH COUNCIL NATIONAL ACADEMY OP SCIENCES AMERICAN COUNCIL ON EDUCATION

EDUCATION

UNIVERSITIES

ADULT EDUCATION

GAANTS FEU.OWSHIPS

AOUIT EDUCATION ASSOCIATtON

GOVERNMENT

OPFICEOP EDUCATION

NAT'L EDUCATION ASSOCIATION RESI

SOCIAL PLANNING

MILITARY

NATIONAL PLANNING SOAflO 1933^

EDUCATION PSYCHOLOCICAL WARFADE

NATIONAL RESOURCES PLANNING BOARD IS39-43

PRIMARY

SCHOOLS

SECONDARY SCHOOLS EDUCATION CHARITIES

MEDtONE AND HEALTH

INTERNATIONAUSM MILITARY RNANCE

COMMERCE

SOURCE' SOURCE-

Houm of Rapfesantatlves

Special CommittM to InvMilgMa

SOCULSECURITY RECREATION social SOENCES

AGRICULTURE INDUSTRIAL PRODUCTION NATURAL RESOURCES PUBUC WORKS

NATURAL SaENCES

HOUSING

Tax Exempt Foundations. May 1954

This IVIay, 1954, Congressional Committee charttracks the flow of money, men, an J ideas from the tax-exempt foundations into critical sectors of American life.

â&#x20AC;˘'.yMm

PREFACE

The most difficult assignment of my thirty years in the Con gress of the United States was the chairmanship of the Special Committee to Investigate Tax Exempt Foundations, informally re ferred to as the "Reece Committee." This investigation required embarrassingly close scrutiny of the intellectual activities sup ported by the great and highly respected American names of Car negie, Rockefeller, and Ford. As a minority member of the Cox Committee, which in the previous Congress had attempted but virtually abandoned this project, I had sensed the power that would spring up in opposition to a complete investigation. The obstacles were obvious from the first. We knew that the in

fluential "liberal" press, characterized by The New York Times, the New York Herald Tribune, and the Washington Post-Times Herald, would throw its editorial power against the Committee.

We knew that even the bulk of the conservative press could not be unmindful of the enormous power of these foundations. We knew that many prominent educators, regardless of what they felt, could not be unmindful of the dependency of their institutions upon continued largess from the foundations involved. We knew

that the group of prominent men whose decisions would have to be judged extended even to intimates of the White House. But I felt that the work of the Cox Committee left several im

portant unanswered questions, of which the gravest was: to what

extent, if any, are the funds of the large foundations aiding and

PREFACE

abetting Marxist tendencies in the United States and weakening the love which every American should have for his way of life?

So we set out to find the answers. We wanted to explore the

problems of foundations by examining their actions, not their statements for the public. We felt that there are involved m the

concepts under which foundations operate and grow in the United States certain dangers for the public welfare. We were not blind to the undoubted merits of the contributions of numerous

tax-exempt foundations to worth-while causes. It was our in

tention to find the factual basis for preserving their constructive functions and at the same time for supplying guidance for future

legislation and administrative action against the use of foundation power for political ends. The story of that adventure, of what we

found, and of the harassments to which we were subjected, is included in this book by Ren6 A. Wormser, who was general counsel to the committee of which I was chairman and is widely

recognized in America and Europe as outstanding in the field of estate planning and taxation. The book contributes essentially, however, the philosophical and juridical reflections of this dis

tinguished lawyer, based upon the material our committee dis

closed and upon other data which have appeared since the closing of our inquiry. He discusses problems of foundation ad ministration and control which are grave indeed and has ren

dered agreat service in preparing this sober and thoughtful work. BRAZILLA CARROLL REECE

i'sf

rid &

^ts Impact and Influen on America

H|i|]|

Michael Loyd Chadwick Editor

fit®

* during thesadSwt critical years f that thp nh » •

depression occurred and fht A

became involved ^'n T .1

Hi f 1

ma SI

People

r. ocvious chances W?»<; fho

responsibility for the

•j ^

people from the nw!

shirting of ultimate welfare of the

Branch of the Federal Government

propaganda

e^th'Sd

American people to giveTtllSfuU^onTen;!'

peo^pfe'tSaiSor'''®'' something was seriouslu^^^"^"'?"'

that the reso^cL of Amr"^system had beeTmilannr !

cepts which were destn.rf

of the American cont^h felt the schoob werp ?

The quesSon automaticallu a-o« "U/t, • responsible for all of this'" a nr=l ' ° indicated that the n^in fU P'^-''minary inquiry

=''^^3ed educahonal several private foan^l^ '"-'' con-

hundreds^f miliron^ofdlr""' fabric ifunds to promote textbook,'®^'®=^=mpt also ,

acceptance of ecTnomi/ M ^ h e !world" in foreign affairs offenders were sa'd to hp' ment for Intentional P. Fo»d..o„ . S S

metrically opposed to the

from

^ Principal

JUNE 78

This Issue Features

• A Social Revolution in America

• The Amazing Carnegie Minutes

• A National Education System • The Power Behind Foundaiions

I J*. ri-'

':•

?C-i'

THEIR IMPACT ON THE WORLD

v.;..T.-.':-r|

ill

was organized the members wanted to study the

data collected by the Cox Committee, especially on the subversive aspects of the foundations. For

' some mysterious reason the entire file dealing with the subversive activities of the foundations had disappeared.

A Preliminary Report by Norman Dodd On April 29, 1954i Norman Dodd prepared a preliminary report for presentation to the members of the Reece Committee. This report was explora

tory incharacter and outlined the pattern of inquiry which the research staff would be pursuing.

Third Attempt td Block Investigation The effect of Dodd's preliminary report was electrifying. Within a ^matter of hours, steps were taken by powerful forces to block the rest of the Committee's investigation. The Establishment media deluged the nation with stories that the

investigation was futile and shpuld be terminated. The smear job on the Committee was the third major tactic utilized by the foundation worid to harass and terminate the committee. It soon be came obvious why the Reece Committee was

considered such a threat. Congressman Reece later described the situation in these words:

"The evidence that had been gathered by the staff pointed to one isimple underlying situation,

namely, that the major foundations by subsidizing collectivistic-minded educators, had financed a socialist trend in American Government.

"We informed the jfoundations in advance that our findings suggested that the foundations had for

a long time been exercising powerful, although sometimes indirect political influence in both

domestic and foreign policy, predominantly toward the leftâ&#x20AC;&#x201D;to say nothing of the support by the foundations of the Institute of Pacific Relations which led the movement to tum China over to

the Communists and which was admittedly Com munist dominated.

"The doubts and reservations concerning the validity of the complaints against the large founda tions were largely dispelled by the almosthysterical

reaction of the foundations to the summary pre sented to the committee by the committee staff on the opening day of the hearings. Freemen Olgefl. June 1978

"The excitement bordered on panic; as was observed by the demonstrations through the public relations channels of the large foundations and this convinced me, and others of the American public, judging from the letters received... that the general picture which had taken shape was not very far from the truth." (Specch before National PraÂŤ Cub Luncheon, February23. 19S3, p. 3)

After Norman Dodd's Preliminary Report appeared, powerful individuals in America made their move to insure that the Committee would be permanently terminated. It was obvious that the Reece Committee had already gone too far. This

Committee was about to officially document for the first time in history that the United States was the victim of a deliberate conspiracy to dismantle

the Constitutional rights of the people. This conspiracy is aiming at no less than the creation of centralized supranational institutional mech anisms from which it will rule the world under collective management.

Committee Hearings Brought to A Standstill

After nineteen days of hearings, powerful political machinery behind the scenes was de ployed at the Capitol to stop the Reece Committee

completely. The last hearing was held on July 9 1954.

The hearings were canceled partly because of the abrasive and uncontrollable actions of Con gressman Wayne Hays, who later admitted to Nonnal Dodd that Major Persons from the White House had been up to see him. "He wanted me to

cooperate in dusting up this investigation," Hays stated. (Interview with Norman Dodd. Nowermber 12-13,1977)

Even though the hearings were discontinued, a sufficient quantity of evidence was accumulated

by the Committee's staff to clearly demonstrate that the major foundations had been spending hundreds of millions to divest the United States of

her traditional system of values and replace them with socialist goals designed to prepare America for provincial status in a global world govemment. The remainder of this issue will be devoted to

examining the evidence gathered by the Reece Committee. It seems to be entirely apparent that these events of the past were a clearly defined prelude to the present. â&#x20AC;˘

So much public indignation had been generated by 1952, that the 82nd Congress passed House Resolution 561 to set up a special "Select

pas^sed by a vote of 209 to 183 on July 27,

Committee to Investigate Foundations and Com

conduct a full and complete investigation. . .to

parable Organizations." Many considered this Lo be one of the most Important investigations in the nation's history. The Committee was instructed to determine whether or not any of the founda tions had been "using their resources for unAmerican and subversive activities or for purposes not in the interest of the tradition of the United

States. (Houm Rapcr. No. 2514, January I, 1953. p. 21 The Cox Committee

1953. The resolution provided that: "ihe Committee is authorized and directed to

determine which of such foundations and organi zations are using their resources for un-American

and subversive activities; for political purposes; propaganda, or attempts to influence legislation."

(Hou« Report No. 2631. Decerr.cer 16, 1954, p. 1)

First Attempt To Block the Investigation Tne- members of the new Committee were:

This Committee was named after its chairman

and became known as the "Cox Committee,"

but unfortunately it did not accomplish a great deal. The time factor was rather limited and the

B. Carroll Recce of Tennessee, Chairman; Jessie

P. Woicott of Michigan; Angier L. Goodwin of Massachusetts; Wayne L. Hays of Ohio; and Gracie Pfost of Idaho.

unexpected death of the chairman resulted in a

It is important to note that three of these five

very supenicial inquiry being conducted. Never theless, it did establish that there were signs of strong subversive influence on the decision-making

individuals had voted against the Reece resolution in order to prevent this Committee from coming into existence. This was the first attempt by the powerful influences working behind the founda

level of several leading foundations. However, the impact of this discovery was virtually nullified in the Committee's final report by giving considerable weight to the testimony of the foundation officers who had insisted that the subversive elements on

their boards were not of any particular significance.

The Minority Views of Congressman B. Carroll Reece

tions to control and blockthe investigation.

Second Attempt to Block the Investigation Tne resolution directed the new Committee to

prepare a report by January 3, 1955. On August

1. 1953, the Committee was granted $50,000 with the agreement that additional funds would be

Congressman B. Car roll Reece was a mem ber of the Cox Commit' tee and was not at all satisfied with the final

report.

He added an

appendage which urged

i that "if a more compre hensive study is desired, the inquiry might be continued by the 83rd • Congress (ibid..

forthcoming after the first of ne.xt year. Committee counsel was obtained on September 1, 1953 and the compilation of a staff began on September 15th. However, it was soon apparent that the promised funds would not be forthcoming. The second attempt to block the investigation of the Reece Committee by the foundation world there fore came in the form of starving the Committee by lack of sufficient funds.

Committee Research Directed by Norman Dodd

: p. 14)

Congressman Reece felt that the hasty and superficial inquiry of the Cox Committee left the nation without the answers it needed. He therefore

introduced House Resolution 217, which was

Between September 15, 1953 and April 29, 1954 the Reece Committee operated, in essence, under the direction of its Resecirch Director Norman Dodd.

It is interesting to note that after the Committee Pr4«mcnOlgut, June 1973

THE NAKED CAPmUST A revfew and c6iiifnÂ«ntary on Dr. Can^ll

hoo^

TRAOEDY AND HOPE

Reviewed by

W. CLEON SKOUSEN "As a Student at Georgretown, I heard that call clarified by a professor named Carrol Quigley..."

William Jefferson Clinton, 1992 Democratic National Convention

TAX-EXEMPT FOUNDATIONS INVOLVED IN WEAKENING AND SUBVERTING THE CONSTITUTIONAL AND IDEOLOGICAL FABRIC

OF THE AMERICAN CULTURE '

! i

Now we turn to the vast reservoirs of wealth-the tax-exempt

foundations-which Dr. Quigley describes as the major base of opera tions for the Establishment bosses as they launch their catastrophic

attack on the basic framework of the \|hole American society.

Dr. Quigley's disclosure that thie Covmcil on Foreign Relations and the Institute of Pacific Relations were! responsible for what turned out to be a paroxysm of world-wide political subversion, is no more shocking than his bold declaration that the global collectivists of the London-Wall Street axis were equally successful in attacking the whole foundation of the American culture through the exploitation of the

millions made available by certain ta.x-pxempt foundations. â&#x20AC;˘ Generally speaking, the Rockefeller Foundation, the Carnegie

Foundation, the Ford Foundation ^d a host of other Wall Street philanthropies have always been looked upon as generous, capitalistic santa clauses. Let us repeat a previous quotation in which Dr. Quigley

admits the development of an explosive situation back in the early 1950's when the use of tax-exempt foundations for U. S. subversion ALMOST spilled out into public view. In fact, public hearings were

heard, but the Establishment's choke-h^ld on the press was sufficient to keep the public from becoming a\yare of the scandalous proportions of the facts which were discovered. Here is the way Dr. Quigley I

describes what happened: 57

Tax-Exempt Foundations Caught Red-Handed:

"It must be recbgnized' that the power that these eriergetic

Left-wingers exercised was NEVER .their own.power nor Communist power but was ultimately THE POWER OF.THE INTERNATIONAL

FINANCIAL "COTERIES, and, once the anger and suspicions of the Arnerican people were aroused, as they were by 1950, it was a fairly simple, matter to GET RID. OF [HIDE ELSEWHERE]" THE RED SYMPATHIZERS. Before this could be"done, however, a congressional committee, following backward to their source the THREADS WHICH

LED FROM ADMITTED COMMUNISTS like Whittaker Chambers, •.through Alger Hiss, and the Carnegie Endowment to Thomas Lamont and the,Morgan Bank,-FELL INTO THE WHOLE COMPLICATED "NETWORK OF INTERLOCKING TAX-EXEMPT FOUNDATIONS." (pp. 954-955, emphasis added)

How the Scandal Was Kept From Reaching the Public: "The Eighty-third Congress in July 1953 set up a Special Com mittee to Investigate Tax-Exempt Foundations with Representative B. Carroll Reece, of Tennessee, as chairman. IT SOON BECAME CLEAR THAT PEOPLE.OF IMMENSE WEALTH WOULD BE UNHAPPY IF .THE INVESTIGATION . WENT TOO FAR and that the 'most respected' newspapers in the'country, CLOSELY ALLIED WITH

THESE MEN OF WEALTH,'would not get excited enough about any revelations to make the publicity worth while, in terms of votes or campaign contributions." (p. 955, emphasis added) Note how tlus last sentence reveals the Achilles Heel in the secret

society s operations. The whole concern of the globalist conspiracy is to do their work in such a way that the public will not become sufficiently aroused to use" their "votes and campaign contributions" to knock the agents of the Establishment out of political power in Washington. As long as the Constitution remains in effect the American

.people still have an opportunity'to wake up'and "thriDw the rascals

.out." As we shall see later,'Dr. Quigley was hoirified, along with his fellow "insiders" .when this earth-shaking possibility almost became a reality in 1964. But we shall discuss that tremendously interesting

incident a Httie later. Npw', back to Dr.;Quigley: • •

•:

The Scandalpus' Pongressional .,Findings Were IMot Shocking To Dr. ^igley: . . "Ah interesting report SEioWlNG :THE LEFT-WING ASSO CIATIONS of the interlocking nexus of tax-exempt foundations was 58.

•

issued in 1954 RATHER QUIETLY. Four years later, the Reece

committee's general ^counsel, Rene A. |Wormser, wrote a shocked,

BUT NOT SHOCKING book on the subject called Foundations: Their

Power and Influence. "(p. 955, emphasis ^dded)

Note that Dr. Quigley fully appreciates that the Reece Committee hearings turned up some shocking information and that the book written by its general counsel, Rene A. Wormser, was intended to shock

the public. But Dr. Quigley had been on! the inside for many years so it was not shocking to him.

This reviewer has studied the Wormser book (Devin-Adair, New

York, 1958) and has concluded that wljild the findings of the Reece Committee might not be disturbing to in "insider" like Dr. Quigley

they are certainly sufficient to raise thb blood temperature of'any ordinary American who might be an.xioijis to preserve his basic rights

and preserve the American way of life in an open society. The Reece

Comrnittee found that ta.x-exempt foundations were deliberately

attacking the whole basic structure of the Constitution and the Judaic-Christian American culture.

I I

A CONGRESSIONAL COMMITTEE VERIFIES WHAT

DR. QUIGLEY SAYS CONCERNlKlG THE POWER OF TAX-EXEMPT FOUNbATlONS

For the sake of brevity, the facts set forth in the Wormser book on the findings of the Reece Committee will be summarized. The various

references to the specific pages where the details can be read are provided:

1. Political maneuvering to prevent the hearings from beins effective, (pp. 341-377)

2. Completely disruptive tactics emp! oyed by Congressman Wayne

Hays. (pp. 359-366) 3. How rich banking and industrial families give their money to

foundations without losing contrcjl of their funds, (pp. 11-12)

4. Who actually runs the ta.x-exem ?t foundations? (pp. 41-54)

5. How the major foundations are jail interlocked into aa mono-

litliic monopoly of power to carry out globalist policies (pp. 57-80) I i 6. Money of the foundations usdd to take over the Social Sciences:

a. Social Sciences looked upon as a potential political 59

instrument, (pp. 83-86) b.

Suppressing social scientists who disagree or criticize (pp. 86-89)

Developing an elite coips of social engineers with a com pulsive drive to "remake the world" along socialist lines (pp. 90-100)

Foundation-sponsored Kinsey report deliberately designed

as an attack on Judaic-Christian morality, (pp. 100-105) e.

Using social science to sabotage the structure of military

services, (pp. 105-110)

Employing a Marxist Socialist to produce and promote

the social science classic, "A Proper Study of Mankind." (pp. 110-114) a O'

Importing a Swedish Socialist to produce a study on the American Negro which has created the current climate of revolution and violence, (pp. 114-119) Fmaticing The Encyclopedia of the Social Sciences as a

vehicle for the spreading of socialist concepts, (pp. 119-125) 1.

Developing a Marxist elite in academic social science circles, (pp. 125-129)

Policy of continually emphasizing pathological aspects of American society to discredit its culture, (pp. 129-131)

Foundation-sponsored research often slanted to conform with pre-conceived objectives, (pp. 75, 131-138) Foundations use their funds to subvert and control American k.

education. a.

''Conform or no grant!" (p. 140)

The birth of Educational Radicalism, (pp. 143-145)

Carnegie finances a Socialist charter for education (dd 146-152)

The radical educators, (pp. 152-155)

The Progressive Education Association, (pp. 155-156)

Fmancing and promoting socialist textbooks, (pp. 156-167)

Financing Left-wing reference works, (pp. 167-171) The National Education Association not designed

advanpe "American" education, (pp. 142, 145, 160 164-

165, 216-217)

Tax-Exempt Foundations as instruments of subversion:

a. Communist influences in foundations, (pp. 174-177) b. Socialist influences in foundations, (pp. 177-184)

int trc so.

so<

c. Helplessness of the averacr^ citiVen c

d. Ridiculing the Artierica^iS of fee

enterprise, (pp. 187-188)!

1''^

niarkets and free

launching Ihei "Lla4e°lbr"l"nd"^ foundation-support in 188-193) ° ; ^"dustnai Democracy, (pp. f.

•» "«ize g-

cora."rLSt",rtsf"" 199) to sem mgovernment, (pp."«•»" ipg. 9- Foundations finance the betrUni of a

to achieve collectivist internationalism;

b. RhodJ^sSr'fed^nto tions. (pp. 201-20 ')

service by founda-

'•

•>"« »"i'.t Alger Hiss, (pp ^OT-^OS)

speakers such as

Alger Hiss describes hnw

'' -S^o^'tkact U-S. policy decisions, (pp. 218-219) Should be

THE FORD fOUNDATION RECEIVES;SPECIAL ATTENTION Foundation. ETerin^^iS Of the dynastic foundationsWomir'ir^^'a,"!""''' was beincr h^ !. mternationalism and that its <mns traditional Americans who were bold en

'» ">«'®rs«t Fom ofglobal

society of the United States mi^t be A f the open society of controlled collectivism P^'sferable to the great new

The irony of this tragic abuse of pfo.d Foundation funds was 61

^GEB4 /SUNDAY, DECEMBER 26. 1999 WILLIAM RUSHER

It's anold story.Thewealthyand

mghly conservative entrepre-d

an organization that stands ready to uate the rec.lt. t. , . help conservatively minded busiclass fa^Mnnfhi'' '^^^ership sPPfoaching the sunsett nessmen fend off the liberals who ferociojslv vpaI^ educated and ot his life, istold by his lawyers ' mat the onlywayhe can avoid con-s plan to take over their foundations political nscatory death taxes is bycreating; V '^^5' are out of the way. itgamut from A R other words, Mr. Freeman points out that a nonprofit foundation, dedicated? liberal. Mr. Freeto vaguely outlined good works. So1 thanks to what Ronald Reagan did man

he creates one. names it after him-•' seit, and puts a few ofhis equally

conservative cronies, his children'

for the U.S. economy, "Betw'een now ^0 ^0 and 2030, there will be tens ofthou- iust nine/rp

sands of estates created in the $30

tive

1 million range." Even between now

and a la^er or two on the board. Within a few years he i and his cronies, and maybe

even the lawyers, are dead.

The children, knowing noth• mg about how to manage a ; foundation, turn desperate ly to the helpful "experts" who mysteriously appear,

^"f r° m^ ^

exphcitly conserva-

He concludes: "Ford. Pew.

MacArthur. Packard' I The stories are as famil-

as the names. The fortunes of mod-

capitalism turned to

like dandelions in a wet

Ten years furtheron,

me foundation created by firmly in the grip orf liberals whom Daddy wouldn't have agreed to

mvite to dinner, and is nnancing projects that have

the old gentleman spinning

JKmk

m his grave.

decades back, one

^81

financed a study of what it

such foundation actually

would take, militarily speak-

ing, for outside forces to

invade and conquer the white apartheid regime in

1 j- ships and how many naval landing screening

vessels, how many bombers and

nghters, and how many infantry divisions. What made the whole episode piquant, however, was the name ofthe foundation. It was the

^^jn^turned into phH^

I'lustration byD 0 Johnscn..Los Angeles

Times Syn^cate

and 2020, the New York Timp<; pcH mates thatthe baby boomers —i e'

1three children to share [a $30 mil

^P a generation hence as tiie posthumous

• fenders ofa burgeoning h w e a l t h pro-

people now between 38 and 53 — dpnfnti^-

iwill inherit $12 trillion. "If thfrp arp

entrepreneurs destined

^^rket system be

attack on the sys-

nn^ itself? Well, as Damon Runy-

Uon estate]," Mr. Frelman is not Son";,']®'p Interna- !iates, each ofthem wiU get approx- w^To bpt^ rf $3miluGr.. BiU CIjp^s" Dhnanthrnn" Carne^eSha^^^^ iimately friends will get $20 reform can gather Project IS unknown, but we can 1his coLdLci,

That is what

What makes this sad story worth

iVir. rrepman

L-nn

"^^^on.'

m-^iselves and apply early, con-

up uke the problem ttrh Vlf Freeman calls "the thatMr. ir infrastructure of foundationcurrent rrianJ,agement. The people who run the fo m

be picking u p R ® a S?" ^°"nter-revoluti?" into next century." ; a —^

incentiveTtriMi riikp' ^^e^a creator^Sf dah'rjnc • . that Ampir^'i bl^Fe-centuryboomwUl J ^^te-CentUrv hnnm «m11 ddations willandube^meTth!f springing unfoun-

y iNeai ±5. irreeman m a recent rC®B"7ri' fact.poin^te7ou^ ^weeds.

fn rnf'

Foundation

lai-c 15 noi

is S '/"dependent inrf Mr. Freeman Washingtonbles Inin brass asproducerwho Dies chairman ofdouthe Foundation Management Institute, ^™., p«fc

..d

saassj

COVER

Kb MUlNlJAr, .JULNi'.

STORY

HJ,

liUUZ

Where the Money Is Ahandful of foundations are providing the seed capital for changing the health-care system

whether what

is promising can

proven." says Karen Davis, director of

public he.ilth facilities and clinics, and recently funded a study on how Infnrma-

Commonweallh. "The key In Ihc end will be changing (inancijl Inrentivcs. be

lion technology can improve nursing. As Ihc largest foundation devoted to Improving U.S. heallh care, Ilobert Wood Johnsni) often sets the sinnd.-ird for Ihc

cause In Ihe end someboily's got lo p.iy" (0 adopt such systems.

rest of the philanthropic world. The Pur

Setting the Standard

suing Perfection program emerged in the

Many of the foundjilion-backcd pro

aftprmath of the 1995 Institute of Medi

grams are aimcfl directly at using lechiiology lo help undcrserved [wpiilntions. The

died high levels rjf errors throughout

California HcallhCare Foundatiim, for ex

heallh care. Together, wilh the Boston-

cine re|)orl "'Ts Err Is Human," which

ample. in partnership wllh the slate of

based Institute for He.illhc.ire Improve ment, Robert Wood Johnson designed

dlifoniia. has developed the first fully Tbm Fergu.wn. a medlcal-lnforinallon ex pert who is conducting two studies on the

ATTHECAMBRIDGEHealth Alli

ance in Massachusetts, staffers

Robert Wood Johnson. Dr. Ferguson, who edits the online Ferguson Report, also

are studying online registries tor asthma patients and an on

works with the Pew Charitable Trusts, a nonprofil that Is a major (under of stud

By Laura Landro

line asthma link for the emer

gency room. At aiildren's Hospital Medi cal Center in Cincinnati, a Wcb based In

formation system is being created to help families of kids with cystic flbrosls com municate with their doctors and receive reminders about care. At Stanford Uni

versity Medical School In California, an

Internet-based program for self-manage

Impact of Internet health Information for

ies about online health data. The founda

tions. he says, have the most potential for investigating howtechnology can help deal with "the most important Issues In health care-access, quality and cost." Though foundation money is no sub stitute (or the risk capital needed to launch new technology Into the health care market, (oundations can provide

ing of their condition and their ampliance with their care regimen. Another

automated Web-hased application in the

Pursuing Perfection to encourage hospi

U.S. lo enroll low-income children and

tals to redesign the way they do busi ness. wllh the aim of eliminating errors altogether and creating new standards for qualify control. "There was nothing like that in health

pregnant women in public heallh-insiir-

Commonwealth-funded study, at Brigham & Women's Hospital in Boston, will put

ance programs. The CalKomia foundatiim also has funded extensive studies on how

referrals between doctors Into an online

accessible and comprehensible online

system linked to the doctors' appointment calendars and e-mail, lo determine if It

health information Is to minorities and less-educated consumers. II has awarded

Improves the quality and accuracy of the information exchangedbetwern referring

several million dollars in grants to a.Web-

doctors and spoclalisu, and the rates at

Barbara health-care providers. Including

which such referrals are followed up on.

care." says Michael Rothman. the senior

program officer who oversees Pursuing r^rfection at Robert Wood Johnson. He

based data-sharing network among Sania

says Ihe foundation inill.Ttly e.-^pected fifl to 70applications at most for Ihe program, which requires hospitals to niairh whatever grants the foundation makes; It received 226 applications. Sevrn projects iiave won grants of

"We see our role as finding exciting

Innovations and generating evidence on

tlveness for others and maybe develop some momentum in an area that has

started lo move but hasn't golien a lot of momentum yet."

Measuring Tool Programs such as Pursuing Perfec

tion encourage hospitals lo put informalion systems In place if only lo he able to prove that what they are doing is working.

"Abig part of the Initiallve Is saying lo heallh-care systems that they have to

have the Informalion-technology infra structure so they can measure their re

sultsand get real-time knowledge about Ihe patient as you pursue perfection across a lot of different departments and disease slates.' says Dr. LavizzoMoiirey "That's critical, because a lot

of ho.spitalsand health-c.are systems are

not really foriised on building the tech nology infrastructure that any other in dustry would take for granted." Robert WoiHl Johnsfin and other foun dations such as ihr C.illfomla IlealthCare Foundation and the Coiumoiiweallh F'uiid are also eager lo fund more .scientific seni-

liny of Ihc inlcrnct's Impact on health,

J1.9 million each for two yearsAndrea Kabcenell. a faculty

and the iiuiilily of online Information. To

member at the Institute for Health-

tion will sliortly put oi i a call for propos als for a new Health (-Technologies pro

Iry to answer such qui s ions. the founda

ment of chronic diseases Is being studied. What these programs have In com

early funds for crucial studies on how

new technologies and systems work in a

Foundations

mon is backing from the Robert Wood

hospital, clinic or doctor's otflcc. That,

By the Numbers

[•,

tor for the Ptirsuing Perfection pro-

"Ivory tower" ^sions. but for

eas such as patient behavior and chronic

projects that have a realistic chance of working In the real world. 'You

dlsea.se. fnillally the program will give

have It last unless there Is a busl-

Johnson Is funding looks at whether pa tients can use the Internet to help Ihem

Johnson Foundation of Princeton, N.J.,

the largest'of a handful of foundations providing badly needed seed capital (or new ideas in health care. These founda

tions are supporting programs thai are producing Insights into the w.iys technol ogy can improve care, reduce medical

In turn, could draw Investment (rom the

private seclor h.uk to ideas lhal shnw

promise. And becausc so many hospitals and healthcare systems arc in dire fi

Big Names in Giving

nancial straits Just as the pressure to

Five leaders In funding programs that

improve quality Is building, programs

use technology to Improve health care

like Robert Wood Johnson's $20.9 million

errors and modernize hospitals. And they are investigating ways the Internet

are providing a way to Investigate inno

can help consumers find information and

vations that might not otherwise be feasi

I participate In their own care, long after ; venture-capital funds have fled from on-

Pursuing Perfection grants for hospitals ble to undertake.

The (few York-based Commonwealth

: line health ventures In the wake of the

Fund, for example, recently awarded a

failure of commercial sites like Oncology,

grant to the University of Colorado to see

com and Driioiip.com.

if giving patients with congestive heart

The entrepreneurial peopletried cterything and moved on.' says physician

failure access to Ihelr own electrenic med

ical records improves their understand

care Improvement and deputy direc-

gram, says the grants aren'l for

Sr.an't build something like this and ,

Robert Wood Johnson

ness case for it." she s.iys. The most

• www.n^f.org

Important .ispecl ofhirsuing f\:rfec-

ASSETS; $8.8 biriion

. J

tion, she adds. Is Ihe requirement

GOALS: Improving access lo bJistchealUicare St reasonable cost: improvingcare foretiionic

health eondrtions; "Pwrsoing Perfection" programs

line.

to reduce medicalerrorand improve care

That

W.K. Kellogg Foundation • www.¥/kkf.ofg

demonsuatlnghowmfomiallon technology can help provide Uiose services and educate ihe put)lic about heaiUi

echoes

Robert

Wood

out about $7.2S million in grants. Mean while. the Stanford program Robert Wood man.ige their own chronic diseases.

Though

the

foundation

usually

doesn't work directly wllh companies. It would be willing lo provide grants to forproflt companies and institulions lo eval uate existing chronic-care systems that

, 5

.lotinson's i»pproneh lo improving care and support for people wilh

use technology to help manage patlenls. says Robin Mockenhaupt. Ihe senior prT>-

chronic conditions like asthma, dia-

gram officer who oversees consumer and patlenl-relaicd projects at Robert Wbod

ASSETS: S5.7tNDion

CtlALS: Impm^g lieaRh Uuough increased access to iniegraied. comprehensnt heahh-care S)9tefflsthat are oigantied a<ound pubrichealin, preventionand primary heatth-cat services:

that the grant winnen share their

information wilh other hospitals on

gram looking Into how the Internet and

other information technology work In ar

l>etes and heart disease, which has long been one of its primary mis

Johnson. But the fouod-ilion expects, as

sions. Several years ago. Ihe foundation

with all it' "n^nts. that alt the results will be made public and lhal others will be

Healthy Investments

started an Improving Qironlc Illness

Foundation giving for Jiealth care more

Care program with Its own Web site lo

given access In the work.

than dout>ied between 1995 and 2000.

help spread its findings. Tbday, chronic conditions are Ihc most rapidly growing problem In health care, hut many of lite

can benefit from online health Informa

programs lo prevent chronic diseases

to evaluate how doctors and p.itlents can

figures in billions.

The California Endowment • wv/w.ealendow.org ASSETS: S3.4 billion

GOALS: Promotingproems to improvehealth

care and generalheaiUi and v>eli-being in California

lb get a better Idea of how patients tion. Ihe foundation asked Dr. Ferguson

and help patients better m.inage their

work with each other to use Internet

own care arc coming under cost pres sures. The foundation's experts believe It

health Informallon, and how pntlent-run

online support groups can benefit pa

can fill the gap by evaluating such pro

tients without the doclors' Involvement.

grams as Web-based tools that help pa

The foundation is Interested In particular

The California

tients take care of themselves. "When the !icalth-c.ire environment is

Healthcare Foundation • iVTvw.cftc^.Org

cm really have an impact, and our dol

the doctor more or le-ss often, or take the

ASSETS: S7S0 million

lars can be leveraged to really make change." says Risa Livizaj-Mourey. se

steps they need lo lo bring down their

nior vice president and group director of

wants lo e.xpliire how the Internet can be

really under pressure, that is when we

GOALS: Atjvancing efficient business practices: impjwing ihe Qualityand efficiencyof care delivery;pnjmoting informed heallh-care and coverage decisions lor residents of California

The Commonwealth Fund • wvw.cmwf.org ASSETS: S587 million

GOALS: Improving health-care practice and policy;Improving consumer access lo heallA information;improvingcare (or vulnerable populations

1996

1?9?

1998

TTteri3t*Adat>0ft Cfmrr, NVMMtiMl

In funding sludles to see If online health

sites ami support groups change patient beliavlor,such as whether patients go to blood pressure.

And the

foundation

health care for Robert Wood Johnson.

used lor larger-population health Issues,

"Heallh-care systems are really slniggllng wilh how lo maintain lualily under

community Is healthy or not and net

such .IS screening tools to find out if a

cost cunstraiiils. ami the proCTams we're

works to

trying lo put fonvard are answers lo those very fundamental business concerns." Dr. Laviz7.o-Mourcy, an internist and

safety or binterrorism Ihrcals. Si

geriatric .specialistby training, says "our . Investments arc small compared lo the

information on food

yfljKJournal Link: What do yOu see the future of technology in the health-rare industry? Join a

entire health care enlerprise. but we look

disnis.^inn with oihi<r rearlers in the On-

for wavs that we ran drmimsiraie effi-r.

llnn .Ioiirn:il nl WSJ.eom/JourniilLItthf

Big foundations are imposing their private agendas on state governments, hcvv? By thinly disguised bribery.

In THc SUmmek. of 1993 Becsy Grice of Owensboro, Ky. ccok her 11-year-old daughter to the local elementary

them use some 900 elementary schoolchildren as guinea

school for the checkup she needed before scarting sbcth gride. Grice wasshocked to learn that die doctor intend ed :o give the child a genital examination. Turns out it's required by the Department of Education. Why.' "The

Who paid for this nonsense? Aprivate foundadon whose

Grice (not her real name.) Who authorized the intrusive

break into houses or force sexual activir/ on others.

pigs in a series of psychological tests and experiments.

identity is known only to the psychiatric institute. Among other things, teachers were required to report how frequendy each 6-to-lO-year-old child tended to use reason they said was to catch abuse at an early age," rccalls obscene language, "con" other people, forge signatures,

prrgramr Not the state legislature. The program, imposed Teachers also rated each child as to how "normal" he or by state bureaucrats, was bankrolled by a private founda- she seemed. When parents found out what was going on, school officials pulled the plug. But parents haven't been ticr.. the Annie E. Casey Foundation. "They abuse chem [the girls] to see if anybody else is abusing them?" asks Camille Wagner, leader of a grass roots movement of Kentucky parents and teachers crrosed to school officials usurping parents' rights. Last fall rcscarchcrs at the University of Pittsburgh's V.'estern Psychiatric Instirjte and CUnic convinced Monrce-/ille, Pa. school superintendent Wayne Doyle to let Forbes â&#x20AC;˘ December 16, 1996

able to retrieve their children's records, which axe being

held at the psychiatric institute untilthe school boardcan figure out what to do %vith them. U. S. charitable foundations dole out about SlOO mil

lion each year to state and local governments. Today vir tually every state accepts social agenda grants from private foundations.

"They bribe governments to taJce on projects they would not otherwise do," says Kim Dennis, until recent ly execudve director of the PhilanthropyRoundtable, an Indianapo'Iis-based trade association for grantmik».i5. Bribe may not be too strong a word. "The govern ment's for saJe," says attorney Kent Masterson Brown, who is suing on behalf of Kentucky citizcns to void ±e state's 5299,500 contract with the Robert Wood John son Foundadon.

The 1994 contract provided that the foundation would

fund the design of a comprehensive health care program for the state. The foundation, pursuing its own long standing agenda, steered the state toward an ambitious

health carc reform plan that's a virtual copy of Hillary Clinton's failed program. "Clearly the money provided by [the Johnson Foun

dation] is in exchange for 'influence,' in explicit violation of Kentucky bribery laws," says lawyer Brown. After accepting the money, he charges, the state permitted the foundation to influence the direction of its health caxc

regulations. Kentucky has moved to dismiss the action, which is pending in state court.

In order to get the foundation money, former Ken tucky governor Brereton Jories gave the foundation rights to use and even sell all of the data to be collected from

patients, doctors and hospitals. Think about that for a moment: In a very real sense xhc state was selling confi dential data about its citizens to a private foundation in return for a grant.

Former governor Jones says he doesn't recall seeing that provision in the contract when he signed it in 1994. Carpetbagger Robert Van Hook, a longtime Johnson

"They abuse them [the giirls] to see if anybody else is abusing them?'' asks

concerned parent Camille Wagner^ ulations permitting schools to treat children for both

mental and physical ailments and bill everything to Med-

Foundation operative, headed up the state's newHealth icaid, all expected to cost taxpayers another S80 million Policy Board—at a salary of $80,000 a year, 520,000 of which was paid by the Johnson Foundation. Presumably he would sec to it that the board carried out the founda

a year.

Wait a minute. Isn't this lobbying by private founda tions—a practicc prohibited byfederal law? Can't a foun

tion's big-governmentagenda. Less than a year later Van dation be fined or lose its Internal Revenue Code Section Hook moved, back to Maryland, but the foundation's legacy lives on in Kentucky.

501(c)(3) tax-free status if the ERS thinks it's getting too cozy with a government?

Also in Kentucky, the Baltimore-based CaseyFounda Yes, but six years ago—after listening to the pleas of the tion, endowed by the founder of United Pared Service, big foundations—the Treasury Department relaxed the James Casey, seeded a S74 million program to put social lobbying r\ilcs to permit virtually everything short of workers in every public school. Among other things, the actually buttonholing a legislator or voter to support a

workers train new parents andmake sure the children get all the health and social services they need, including

ccrtain bill.

referrals to get pregnancy tests and condoms. Some locd

foundation with an agenda it wishes to impose. Swoop

officials initially balked at making referrals for contracep

That change in the law opened the doors to every ing to take advantage was Lauren Cook, director of state

tives without parental consent. But Kentucky educrats technical assistance at Washington, D.C.-based, founda cracked down, telling them they had no choice. Thus, tion-sponsored Council of Governors' PolicyAdvisors. In without debate, an important new policy was Imposed on November 1991 Cook organized a weekend mixer at the the state's students.

The manager of the program at the time vtsls Ronnie

Wingspread Center in Racine, Wis. for foundation lead ers eager to meet and mingle with state officials.

Dunn, author ofThe Factoiy FaJjU^ ascrecd that compares James Joseph, then president of the left-leaning Coun children to the "raw materials used in the manufacturing cil on Foundations, fired thestarting gun.He proclaimed process." Dunn made her bent for social engineering even that "We now stand ready to 0.. . . usher in a new era of blunter when she added: "When all citizens 'own' the

children and work together tosupport and empower fom-

ilies, our society becomes a better place." Better for

whom? By what standard? The state never asked. It just

took the money.

Kentucky bureaucrats recendy imposed emergency reg-

collaborative efforts to form a more perfect union and promote the general welfare." The general welfare? By whose definition?

The states eagerly took the bait. After the meeting

Robert Haigh, special assistant to the secretary of Penn sylvania's Department of Public Welfare, organized a Forbes • Dcccmber 16, 1996

i f

^mmirtcc of Pcrmsylvania officials and grantmakcrs that I earn enlisted foundation-junkie Cook. Her job; Advise

Today Pennsylvania boasts 38 full-service school clin ics. Health department ofScials arc pushing for more. And Pennsylvania requires schools to sec that every child gets

cnnjylvania how to tap the foondadons. Cook's matchlaking paid off Since 1990 Haigh has hauled in some cvery^ing from dental exams to complete physicals.

75 million in private foundadon grants to Pennsylvania Worst of all, the folks at the Johnson Foundation showed them how to get virtually all schools designated Medic? nd state-sponsored social projects. The money comes with ideological strings r'rtached. aid providers so they can bill everything to taxpayers. Result? Pennsylvarua officials can just keep imposing cnnsvlvania was one of 15 states selected by the Johnmore and more intrusive medical and psychological pro Dn Foundadon in 1993 to receive money to craft :hcmcs to push primary medical care. In order to get the cedureswithout getting authorization from parents or the

100,000 seed money, Governor Robert P. Casey and :a:c health officials had to agree to buy certain comput-

legislature.

Smelling a rat, the Pennsylvania legislature recently

r equipment from a Johnson shill, coUcct and input appointed a commission to investigate. Last spring it came iformadon about hospitals, doctors and patients, and to light that in March ll-year-old girls at East Strouds:ive Johnson the right to use and even sell those data. If burg's J.T. Lambert Intermediate School were pulled out he Johnson Foundadon liked the plan, the state could of class and required to submit to genital exams as partof ;ct another S2.4 million more, plus a S4.2 million loan routine physicals. Outraged, parents have already filed a lawsuit charging assault, battery, invasion of privacy and o implement the plan. SLx weeks after Pennsylvania applied, Governor Casey

ailed a special session of the legislature and passed a law >roviding for firee or cut-rate medical care for children vhose families are too affluent to get Medicaid but have

intentional inflicnon of emotional distress. The school dis

trict insists the exams arc reqxiired by Pennsylvania law.

State Representative Sam Rorer is incroducing a bill to make it harder for state agencies to accept grants %vithout legislative approval.

10 insuranceâ&#x20AC;&#x201D;a typical Johnson ploy. The Pennsylvania In 1991 iie folks at the Casey Foundation decided that leaith department then set up a new bureaucracy called he Bureau of PrimaryCare Resources Sc Systems Devel- states should do more to make sure children grow up jpmencto carry out Johnson's agenda, with sevea new mentally healthy. Whatever that means. They invited state health officials to compete to comc up with clever new josinons, two paid out of foundation fiinds. In April 1994 Governor Casey wrote to Johnson boast- ideas for helping children who are abused, neglected or ng that he'd spent some $4.4 million in taxpayer dollars in trouble with the law. Each of the cop seven would ind would spend at leastS5.6 million more on the foun- receive a $150,000 "planning grant," with the promise of iadon's agenda, which Included putting health clinics in up to S3 million if their plans pleased the foundation. In public schools. For his efforts the foundation gave Penn- effect, the Casey Foundation was paying state officials to lobby for new government programs. jylvania another 5874,505.

Virginia was one of the states that received a planning grant. In 1992 Virginia bureaucrats got the legislature to pass the Comprehensive Services Act for At-Risk Youth & Families. The act set up a new bureaucracy to monitor children and coordinate all kinds of money and services. Foundation officials claim they don't meddle with

policy. But consider the letter the Casey Foundation wrote to Virginia Governor La^v^ence D. Wilder in 1993 telling him his modest demonstration plan for monitor ing children was barely adequate. Come up with a more ambitious plan and commit som.e taxpayer money, the Casey Foundation's executive director, Douglas Nelson, threatened, or he would giveVirginia no more founda tion money.

The governor snapped to attention. The legislature carmarked $60 million to do what the Casey Foundadon wanted done. Placated, the foundation has given Virginia

about $3 million to set up community centers to moni tor children and figure out how to shift the entire cost to

Governor Casey boasted that he'd spent $4.4 million on the Johnson Foundation's agenda and promised $5.6 million more.

taxpayers oncc the grant money runs out next year. Last year alone, the tab for all this was up to S90 million. In other words, an ideologically driven foundation plan quickly becomes an embedded state bureaucracy that nobody voted for. In 1995 the Kellogg Foundation hired as its new pres ident William Richardson, a 56-year-oIdformer Maryland bureaucrat. Since then, Kellogg, too, has started bribing

more state agencies to adopt its agenda. ThisyearKellogg Forbes â&#x20AC;˘ December 16, 1996

Policy Development. No matter that this subterfuge was an obvious violation of the intent of Pew's founders. Five states won the planning grants.

Pew later cancelcd the Children's Initiative program when it bccame clear it would take decades and cost bil

lions to implement, but Casey, Johnson and KcUogg were already beginning similar programs. These folks have never seen a government program they don't like, and you can count on them to try to keep this one alive. As anyone knows who has ever paid the least attention to government, a program once launched has a tendency to go on forever, so it is with these foundation-financed

projects, which tend to go on with taxpayer money long after the foundation tap has been turned off. In New York, for instance, in the final years of Mario Cuomo's administration, money poured in from leftleaning foundations determined to promote socialized medicine in the fertile soil of this most liberal of states.

Projects under way included Johnson Foundation plans to set private doctors' fees, pool information on patients and even cap private spending on health care Now that Republican George Pataki is governor, are those liberal plans shelved? No way. Pataki's health com

Even after conservative Governor Pataki

missioner, Barbara DeBuono, who had enjoyed a gener ous Johnson Foundation grant in Rhode Island, supple ments her 5102,335 annual salary with an extra $50,000 from a state agency, Health Research, Inc., supported almost entirely by private foundation and federal grants.

took office, state officials contmned

to do the bidding of liberal foundations. teamed up with the Johnsod Foundation to offer state policymakers S24.25 million to come up with new ways to "transform and strengthen the public health infra

Since Patald took office, DcBuono and other health

officials have accepted millions more in grants from the foundationsâ&#x20AC;&#x201D;always for projects aimed at getting the state government deeper into people's private lives.

New York deputy health commissioner, Judith Arnold, recendy wrote to the Johnson Foundation's grant admin structure." Sounds innocent, but no one is fooled. The istrator. Arnold promised that even if the legislature stops whole purpose is to luxe states into expanding their fimding health care reform, Johnson-seeded reforms will bureaucracies and increasing spending, all in the name of continue. She didn't specify where the money would improving public health. come fi-om, but the implication was; We bureaucrats will Sometimes states bend the rules in order to get the find a way. grants. Pennsylvania welfare official Haigh says he was To understand what is going on here, it is important to applying for a CaseyFoundation grant in 1992 to reform recognize that bureaucrats have an all-too-human ten foster care. But there was a hitch. The foundation dency to enhance their importance by spending more required that the stace*s welfare department enter into a money. More often than not, too, they arc recruited from contract with a specificcountyâ&#x20AC;&#x201D;Philadelphia. the ranks of people committed to using governments to That would have been a violation of Pennsylvania laws redistribute the wealth by raising taxes. Consider, for example, Brian Roherty, former Minnesota budget offi that require competitive bidding. No problem. Then-Sec retary of PublicWelfare Karen Snider just decided to skip cer, now president of the National Association of State the competitive bidding process by pretending there was Budget Officers. He has called on state budget officers all no other possible bidder. over the country to bend the law as far as possible to Four years ago the Pew Charitable Trusts set out to advance a liberal agenda. Roherty complains that the top induce states to overhaul all health and sodal services so

20% of households own 85% of the nation's wealth.

as to track all children from birth to adulthood. The Chil

Roherty is at least refreshingly. fi"ank: "How things arc distributed will become the next battleground in Ameri can politics," he says on the trade assodation's Web site. Rohertyproceeds to throw down the gauntiet to those

dren's Initiative, it was called.

The competition began with states applying for 5100,000 "plarming grants,'* followed by another $250,000 for the states whose plans best met Pew's biases in favor of expanding and enlarging government pro grams. Pew's charccr doesn't permit grants to state gov ernments. Again, no problem. Pew simply la\indered the planning grant money though a Bala Cynwyd, Pa. notfor-profit outfit called the Center for Assessment and

who think it is time to roll back or at least stabilize the

government's grab at the taxpayer. "State budgets will be the primary vehiclc for this chajige, which will be direct ed by men and women of courage who arc prepared to

*go where no one has ever gone.'" With a littie help, of course, from tax-exempt private foundations. Forbes â&#x20AC;˘ Dccembcr 16, 1996

Study of Sex Experiencing 2d Revolution By ETHAN BRONNER

Half a century sifter a mild-mannered Midwestern biology professor named Alfred C. Kinsey essentially created a new academiq discipline

with publication of his best-selling tome "Sexual Behavior in the Hu

man Male," the study of sexuality on American campuses is again being revolutionized.

Oyer the past five years, courses examining the origin and meaning of sexual identity have appeared in nearly every catalogue of American liberal arts colleges, and the area is still gTOv/mg. Unlike the short health classes taught at colleges in the past, what is now available permits stu dents to specialize in sexuality, espe cially as a cultural phenomenon. The University of Chicago initiaty ed a lesbian aiid gay studies project .this past fall; the University of Iowa will offer a certificate program —

short of a major but more than a minor — in sexuality starting next September; Brown University is in the fourth year of offering a full major called Sexuality and Society; the University of Minnesota is estab lishing, with a pledged half-milliondollar endowment, a Center for Gay, Lesbian, Bisexual and Transgender Studies; the University of California at Riverside, the University of Wis consin at Milwaukee, New York Uni

versity and the University of Penn sylvania are among a growing num-

. ber of^institutions with graduate or undergraduate programs focused on sexuality. Some of the sessions are surprisContinued on Page 11

< <:a'g S

s=i ai^ CO O.S* < «< ♦<

A Half-Century After Kinsey, the Study of Sex Is Generating Keen Interest Continued From Page 1

without entbarras.sment," she said, "we should be able to talk about the

ingly explicit. At the University of Virginia, undergraduates In a course

called Sexuality Today gather inco-

penis, clitoris and vagina without laughing." "I'm trying to tell the students

^ what's good about sex." she said of

educational pairsand sculpture gen- . her wedcYy, 25-studenl couree. "Ali

female sex organs to demonstrate new paraphernalia. And at the State University of New York at New criticism from, among others. Cov. George E. Pataki.

'What is noteworthy about nearly all.'lhese courses is that they spring from an area of the humanities, like

history or English. The fascinating crSss-cultural questions they raise have Invigorated these fields, given birth to Journals and established

scholarly conferences. For example, they ask: When was the term homo sexual invented? How docs society define manhood? What is the differ ence between sex and gender?

*tiy contrast, what they rarely In volve is pure science. As sexuality hair grown into a field of keen schol arly and societal Interest, the frontieCs of scientific knowledge around it,'^hile more advanced than half a century ago, have not expanded cor respondingly. "There is still a lack of good, basic research Into the fundamentals of

human sexualities." said Dr. John

Bancroft, an English medical re searcher who now heads the RInsey InstltutB at Inrtiann University.

the queer liberation movement of

colleges and universities around

the present day, stressing issues

the nation;

stand how It can be fantastic. I also

core courses; the biology of gender, an Introduction to gay and lesbian literary and cultural studies, the his

of race and class as well as

Ludwig Wittgenstein were homosex

want

tory of sexuality and a course that Is

gender.

uals." he wrote, "and that Sophocles, Socrates, Plato. Shakespeare. Chris topher Marlowe. Alexander the

them

choose

their own

called Queers and Culture but that

boundaries."

appears on transcripts as Identities/ Communities for fear that potential

Issues Evolving

employers would be put off by the

From Women's Studies Some of the material offered un

der sexuality today on college cam puses flows from women's studies. Where at one time women's studies

raised issiies about equal pay, today the field is often recast as gender

Dr. Bancroft added: "In other im

aspects of what is commonly regarded as "queer." including

power and money. Tania Israel, who is studying toward a doctorate in

gay, which covers lesbian, bisexual

tors.

and gay topics. Much of the scholarship is grouped

"It Is very difficult to get at peo ple's sexuality because the Issue is so

under the sardonic, defiant rubric of

taboo," she said. "But if we want to

queer theory and challenges the view that sexuality and gender are the same thing. In other words, said David Savran. an English professor at Brown and director of its sexuality courses, sexual identity and desire are socially constructed, not innate. This school of thought Is known as

understand sexual assault, for exam

ple, we heed to understand how men and women experience their sexual

ity. how they internalize messages." That is not how critics see it. Roger Kimball, managing editor . of New Criterion, a conservative monthly journal, drew angry atten tion to a sex conference at SUNY New Paltz this fail when The Wall

entific endeavor. It is regarded as

something we need to know about Sex is not like thaL There has been a

longstanding fear of knowledge in that area"

Susan Tate, who teaches the threeyear-old Sexuality Today course at the'University of Virginia, said It was that fear that she sought to address when she had the students build genitals'from Play-Doh. "If we can dls-

one's sexual orientation is innate,

biologically determined. In the acad emy, at least among the gay theo rists. many of whom are gay, this view is typically rejected as wrong and potentially harmful. It is seen to cast homosexuality as a kind of dis ability that may merit sympathy but tails to challenge the faulty bases of society. "What I really like about queer theory Is that rather than looking at minority or dissident sexuality ver sus the mainstream, we question a t—

TO®

"SEXUALITY TODAY" AT THE UNIVERSITY OF VIRGINIA:

within a historical framework.

struction of sexual identity. Whole sections of campus bookstores are taking the newly coined label lesbi-

social constructionism.

Examinationof a recent category of analysis for gender studies and the study of sexuality, situated

Those In this field say that learn ing about the fringes of sexual prac tice, like sadomasochism and prosti tution, offers insight into Issues like psychology and teaching at Arizona State University, focused on strip pers and found them both empow ered and degraded by their work, depending on several external fac

studies and examines societal con

"QUEER HISTORIES," ATYALE:

real name.

Emphasis is placed on the changed vle^Y of sex over history, on the ap- Street Journal published a caustic "We don't understand why some paremtact.-for exmnple. that men in article by- hlm-undec-the~ headline. people are likely to engage Jn high^ Athens In the Sth century B.C. were "Syllabus for Sickos."risk sexual.behavtor while other peo not Judged by whether they had sex "There is something profoundly ple sensibly keep out of trouble," Dr. with other men. only whether they dehumanizbig about this stuff," he said in an interview. "And what a Bancroft said. "It is probably socio- were seen as the penetrator or pene cultural. but there may be Individual trated. And, Professor Savran said. way to waste your college years. differences in physiology and neuro- "Three hundred years ago. a great Here you have four unrepeatable biology. We still know very little many women and men were having years where you can spend a great about the orgasm physiologically, same-sex relations but they were not deal of money to become educated. relatively little about the extent to necessarily labeled Sodomites." Ho You have to make choices. Is it bet mosexuality in the animal kingdom ter to spend time learning to use which men and women differ in pat dildos or reading Kant? If you look at Is also brought to bear on the issue. terns of physiological sexual re There is another school of thought, the amazing ignorance of people In sponse. We know little about why essentialism.' which argues that college today, it Is appalling. ' some people abuse children."

portant aspects of behavior, you find . a much more consistent body of sci

A Sample of Courses in Sexuality

"A person who knows that James I, Francis Bacon. Oscar Wilde, Hen ry James, Marcel Proust. Gertrude Stein. Virginia Woolf. John Maynard Keynes. E. M. Forster, Pyotor Ilich Tchaikovsky. George Santayana. T. E. Lawrence, Alan Turing and

From course catalogues at

Paitz, sadomasochists were invited to discuss their practices, drawing

The curriculum for IWr. Miller and

others who major In the area include

ance.

A CLOSER LOOK

a requirement to take three of four

Itals from Play-Doh. At Brown Uni- theyhear is what's badabout it,how verslty,theowner ofa fcmalcK)rlent-. it cankill you. I wantthem toundered sex shop uses a latex replica of

about sexuality." said (Marshall Miller, a 23-year-old recent graduate of Brown's program who now works in a gay health center in Boston.

The *Dark Side'

Of Enlightenment "Then there is the moral ques tion." he continued. "Is this a good thing, to look at the sex organs as essentially a complicated piece of plumbing? Should one's sex life be treated In an objective way. turning sex into an activity like jogging? I

Readings examine different gender and sexual nonconformity, compare and contrast past and present notions of that nonconformity, and examine how a historical

will include: human sexual

behavior and relationships, reproductive systems,

Great. Julius Caesar and Richard

the Lionhearted may have been. Is not so likely to believe that homosex uality is merely a ghastly blight."

Changing Views Tov/ard Homosexuality There appears to be good reason to attribute the growing tolerance to ward homosexuality in America at least partly to changes bi education.

perspective can influence

contraception and unintended

understanding of modern categories, as well as the

influence of alcohol, regretted

University of Chicago. Is writing a

sex. media influences on sexual

book arguing that Increased accept

behavior, sexually Iransmitted infections (including H.I.V.).

ance of homosexuals Is one of the

"QUEER LIVES" AT HAMPSHIRE COLLEGE IN MASSACHUSETTS:

sexual health and sexual assault.

reverse.

• This course is envisioned as an

introduction to thinking about the lives and workof lesbians, gay

pregnancy.'sexunderthe

most fundamental changes of the second half of the 20th century. Professor Chauncey says that the

LESBIAN, CAY AND BISEXUAL

first American academic conference

on gay and lesbian studies was held

SITY OF CALIFORNIA AT RIVERSIDE:

The curriculum will address such

transgendered people (groups currently allied politically under the term "queer") mainly through their autobiographies and their'

issues as; sexual identity and orientation: gay. lesbian and

work as ariiats and pdUical

lesbian and bisexual

bisexual represenlalion; gay,

activists. The course wiil trace the

perspectives on the arts:

social and cultural history of

relheoriraltonsofgender:

queer people from the end of the

sexuality and cultural tfiversity: •

19th century, when sexologists

intersections of sexualities and ethnic identities. '

coined the term "homosexual," to

George Chaunccy. a historian at the

STUDIES MINOR AT THE UNIVER

men, transsexuals, and

at Yale University in 1987 and drew 200 participants. Two yeal-s later, some 600 people attended. By 1991. when the conference was held at

Harvard University, there were 1.600 participants and the following year, at Rutgers University, 2,000 scholars participated and 209 papers were presented, making it one of the larg est academic conTercnees~ In^lhe^

coumry. Mr. Chauncey said.

Judith R. Shapiro, an ahthropoToglst who is president of Barnard Col

lege, has watched the growth of gen tlon and intimacy in the name of emancipation. The idea is to increase

his knowledge, he picked up Plato's

pleasure by divorcing it from all

the time only that it was about love. "I was surprised to discover that It was a defense, and as one can imag ine a highly Interesting and articu

those customs and rituals and social

embedding in which sexuality has always been understood. This re moves the decent drapery of life. Enlightenment has a dark side." Richard A. Posner. a conservative but iconoclastic legal scholar, who is chief Judge of the Federal Court of Appeals for the Seventh Circuit In

Chicago, is not. however, very im pressed with these concerns. He says that Ignorance of things sexual by members of the judiciary, and by society generally has produced woe ful results.

the way sex studies tend to get rid of

This was brought home to him about eight years ago. Jurige Posner

»li® whnis olomont of Invp anrl nffnc-

said. when. secklnB to dIus a Kap in

don't think so. What worries me is

This course will provide an increased understanding and appreciation lor human sexual behavior through learning concepts, principles and facts regarding sexual health. Topics

"Symposium." He said he knew at

der studies with some concern but also with enthusiasm.

On the one hand, she worries that

because It is such a personal issue. It

encourages students to turn further inside themselves. But Ms. Shapiro also sees a great value In it because by comparing what may seem like

late one. of homosexual love." he one's most natural and inherent tenwrote in the book that emerged, "Sex dencics and feelings with historical and Reason" (Harvard University ' and cross-cultural practices, stu Press. 1392). "It had never occurred dents are obliged to turn outward. to mc that the greatest figure in the . "Through such studies, students history of philosophy, or for that are forced to ask the most basic matter any other respectable figure questions about how society organ

in the history of thought, had at tempted such a thing."

sence of a liberal education," Ms.

He sidded that "Symposium" and a

Shapiro said. "Remember what Erik

izes ..self and that Is the very es

year's worth of subsequent reading

Erikson told us about Martin Lu

made him re-evaluate much of what had been written about homosexual

ther's private demons. They were

ity into American law. His book urges decrlminalization and accept

fundamental to his thought People's , personal obsessions can lead to great truths."

sixUAL REVOliUTION

Kinsey's Legal Legacy

America's post-World War II and governmentare to bedeemed in- otl generation lived through the

sexual revolution of the 1960s.

Now, sadly, most of them are living with the consequences of its devastation: abor tion, skyrocketing disease, divorce, and sexual dysfunction. Most Americans are

and government are to be deemed in violate, that everything, including baba sic moral law, is subject subiect to to change, and that it is the part of the social sci entists to take no principle for granted as a premise in social or juridical rea soning, however fundamental it may

unaware that their nation's moral founda

hereto have been deemed to be under

tion was supplanted, nor do they appreci

our Judeo-Christian moral system.

other criminal acts. Those acts were then por trayed by Kinsey as both commonplace and tra naturJ. na Kinsey's mission, Jones writes in

Alfred Kinsey: A Public/Private Life, was to free America from Victorian "repression." But his wider goal was an amoral new or der â&#x20AC;&#x201D; possible only if human life is un hinged from the divine.

ate that a deliberate effort was

Kinsey, like Margaret Sanger and population planners of the eariy 20th

engineered to derail American com

century, was a eugenicist who es

mon law, which was constructed on

chewed biblical standards of morality.

biblical principles to protect and order society's most important building blocks â&#x20AC;&#x201D; marriage and family. Fifty years ago this month, Indiana University zoologist and Rockefeller grantee Alfred Kinsey, the widely ac knowledged "father of the sexual revolution," published his unprec edented report on human sexuality.

According to one Kinsey associate: "BCinsey knew a great deal about the

Sexual Behavior in the Human Male.

to alter the American common law

Kinsey's theme of "free love" was re inforced by a well-timed media blitz, and the American public was recep tive. For the next decade, Kinsey was one of the nation's most popular ce lebrities (until his premature death in 1956). Cole Porter's hit song popular ized Kinsey's sexual liberating anthem of "Anything Goes." But over the sec ond half of the 20lh century, America

view of marriage. Life's most intimate and personal act was equated with de generative behaviors as long as it was done between "consenting adults." Kinsey found help in his effort from ^ liberal French lawyer Rene Guyon of

and the Western world learned the

hard lesson that, seductive though it be, free love is not free.

In 1954, Tennessee Congressman B. Carroll Reece could clearly see that revo lutionary changes were forming on the ho rizon of our nation's social landscape, and that a principal source of the change was foundation grants encouraging collectivism and internationalism. When Reece began to investigate Kinsey's report and the back ground of its funding, he discovered a trail leading back to the Rockefeller Foundation. While the Reece Committee was stopped by a bipartisan effort from further investigation, it did offer the following warning regard ing the enlarging mission of social scien tists in changing our society: ... that there are no absolutes, that ev

erything is indeterminate, that no standards of conduct, morals, ethics,

THE NEW AMERICAN/JANUARY 19. 1998

Judeo-Christian tradition and he was

indignant about what it had done to our culture."

How did the acceptance of crimi nal sexual behaviors and perversions begin in America? Kinsey's studies were accepted as "scientific authority"

I "sex by age eight or else it's too late"

Kinsey: Working for an amoral new order.

Kinsey was a vital agent in the trans

o infamy. Dr. Harry Benjamin, an interu national sexologist and an associate of both Kinsey and Guyon, wrote in the introduction to Guyon's 1948 book Sexual Ethics:

formation of America. The Russian, Ger

ernments. Kinsey facilitated, with the

Many ... sex activities, illegal and immoral, but widely practiced, are recorded by both investigators ... Guyon speaking as a philosopher, and Kinsey, judging merely by em pirical data... [upset] our most cher

fraudulent data of his "studies," the aban

ished conventions. Unless we want

donment of absolutes in the "social or

to close our eyes to the truth or im prison 95% of our male population, we must completely revise our legal and moral codes.... It probably comes as a jolt to many, even open-minded people, when they realize that chas tity cannot be a virtue because it is

man, and French revolutions were all

preceded by an embrace of sexual anar chy. In such revolutionary models, mar riage is undermined first, then the family,

followed by private property and gov

juridical reasoning" of America's "JudeoChristian moral system." A recent Kinsey biography by James H. Jones, a Rockefeller grantee and former adviser to the Kinsey Institute, reveals that Kinsey himself was a sado-masochistic homosexual on a perverted mission. Troll ing through homosexual bars and night clubs, Kinsey gathered the subjects for his research, drawing disproportionately from those participating in sexud perversions and

not a natural state.

With such philosophical inspiration, Guyon developed a deconstructed legal theory, fortifying it with Kinsey's "scien-

lific" data. It was put into the hands of le gal radicals like Morris Emsl, an advocate

legislatures for their consideration, with plenty of authoritative support for iis

been apprehended. This recognition thai there is nothing very shocldng or

for the new sexual order, who handled

implementation provided by Kinsey's flawed scientific analysis. Adoption of the

havior should lead to other changes

revolutionary cases in his war against the American legal order. Ernst was well credentialed as a legal radical for his service as the American

Civil Liberties Union (ACLU) attorneyfor Alfred Kinsey, the Kinscy Institute, the Sex Information and Education Council of

the United States (SIECUS), and Planned Parenthood of America. He had close ties

to Supreme Court Justices Brandeis, Brennan, and Frankfurter, and Judge Learned Hand — all influential progres sives in moving American law away from the absolute "Judeo-Christian moral sys tem" which protected the — sanctity of life, marriage, and family. _ In Ernst's 1948 book

American Sexual Behavior and the Kinsey Report, Kinsey colleague Robert Dickinson noted that "an era of hush-and-

pretend in the life of our

nation may end" through Kinsey's Sexual Behavior

abnormal in the sex offender's be

Model Penal Code eliminated and/or

in sex legislation.... Penalties should

trivialized prior sex offenses, eveniually aiding the reduction of penalties for abor tion, rape, wife and child battery, deser tion, seduction, adultery, prostitution, contributing lo the delinquency of a mi nor, soliciting for masturbation, sodomy, public sexual exhibitions, "unfit" parent age, alienation of affection, and obscenity, as well as infanticide, premeditated AIDS/

be lightened. In the first place, it

STD transmission, etc.

At the very time the ALI's Model Pe nal Code was being developed, there was

should lead to a downward revision

of thepenalties presently imposed on sex offenders.

Biographer James Jones reports that Kinsey died believing that his crusade to promote more enlightened sexual attitudes had nol succeeded. Yet in 1957, a year after Kinsey's death, the Supreme Court in Roth V. U.S., a case handled by Ernst, relaxed

ihe once protective American legal defi nition of obscenity. In —

Trolling through homosexual bars Qlli nightclubs, Kinsey gathered and red . the subjects for his research, "f

less than half of the slates retain sodomy statutes. In

1973, Dr. Mary Calderone, a leading Kinseyan,

drawing disproportionately from 'Om

was cited in the Roe v.

those participating in sexual oervi perversions and other criminal acts. aCtS

in the Human Male and

• ••II

that "virtually every page of the Kinsey Report touches on some seclion of the legal code ... a reminder that the law, like ... our social pattern, falls la mentably short of being based on a knowl edge of facts." Ernst expVained in Scientific Monthly why the Kinsey reports were making ma jor inroads in changing American law; "[R]ecently law has reached for scientific tools to aid in its search for truth.... I now

say that the Kinsey Report is the single greatest contribution of science to the rule-making part of the law in my life time..,. The IGnsey Report broke through a mass of taboo."

Ernst advised that every bar association in the country "should establish a Com mittee on the Laws of Sexual Behavior

and consider its own State's legal system in this field...." Soon Committees were es

a growing public outcry for tightening, not loosening, sexual psychopath laws. But respected magistrate Morris Plascowe, the model code's principal author, argued (based on Kinsey's findings of course) tliat "When a total clean-up of sex offenders is demanded, it is, in effect, a proposal to put 95 percent of the male population in jail.... Of the total male population 85 percent has had pre-marital

the American way of life.

Wade decision which le-

galized abortion. Since

Roe a staggering 34 milss

lion babies have been

aborted. Also in 1973, the American Psychiatric Association re

moved homosexuality from its list of psychopathologies, and in 1995, pedophilia was removed. Today, Kinsey's finger prints are all over the current literature of law, medicine, and the social sciences.

For example, in Westlaw, a database of the major national law journals, during the period 1982-96, 499 authors cite Kinsey versus 71 citations for the more recent

intercourse...."

Kinseyans, Masters and Johnson. In the

As America's common law was sup planted, legal penalties were "lightened"

Science Citation and Social Science Cita

and new sentencing guidelines were de veloped. For example, prior to Kinsey rape was extremely serious, a death sentence being required in three stales and life in prison in over 18 states. But Plascowe in troduced lo the legal profession what Kin sey and Guyon had certainly envisioned:

tablished with funding from the Rocke feller Foundation in an effort to overturn

1961, Illinois became the

first stale to repeal its sodomy statute,and today

One of the conclusions of the

Kinsey report is that the sex offender

In 1955, the Model Penal Code was

is not a monster ... but an individual

completed under the auspices of the Carnegie- and Rockefeller-seeded Ameri can Law Institute (ALI), the education

who is not very different from others in his social group, and that his be havior is similar to theirs. The only

tion Indices, Kinsey rates thousands of listings, twice as many as Freud. Continued belief in and use of Kinsey's data may be viewed as a contributing fac tor to the current exhaustion of our crimi

nal justice system. Authorities who permit the killing of the unborn and release sadis tic rapists/murderers back into society, to typically repeat their crimes, represent a system adrift in an amoral abyss and bent on anarchy and national destruction. • — Col. Ronald D. Ray, USMC (Ret.)

arm of the American Bar Association.

difference is that others in the

Col. Ray, a former Deputy' Assisianl Secretary of Defense, is the author o/Military Necessity and Homosexuality, hi writing this article, the author largely drew from Dr. Judith Reisman's definitive book on Kinsey, which is scheduled for release in

This "model" was then submitted to state

offender's social group have not

early 7995.

For More Information on R.S.V.P Campaign

Call, Fax or Write: R.S.V.P. America PO Box 1136 • Crestwood, KY 40014

1-800-287-RSVP

Fax: (502) 241-1552 ^

THE NEW AMERICAN/JANUARY 19. 1998