Cox and Reese Hearings on Tax Exempt Foundations
Between 1952 and 1954, there were two committees of Congress that investigated the Tax-Exempt Foundations. Eugene E. Cox, Chairman of the first committee died suddenly just before the release of the Final Report. According to written testimony in the record, Cox reviewed and approved at least the first part of the Final Report before he died. In 1954 another committee was established to continue the investigation. The second Committee was chaired by B. Carroll Reese who had been on the Cox Committee. The two committees became knows as the Cox and Reese Committees on Tax-Exempt Foundations respectively.
The reports are very large, image copies. Because they are unwieldy, they were broken out by hearing date or subject matter. The segments are in the same order as they are in the report. The page numbers below refer to the page numbers in the full reports for easy reference.
Select Committee to Investigate Tax-Exempt Foundations, November 18, 1952, Eugene E. Cox, Chairman Full Report 818 pages Cox Committee on Tax-Exempt Foundations
Special Committee to Investigate Tax-Exempt Foundations,
May 10, 1954, B. Carroll Reese, Chairman
Full Report 2,086 pages Reese Committee on Tax-Exempt Foundations
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Resolution 561 - authorization for the
committee, opening Remarks, history of foundations. Testimony
of Ernest V. Hollis, Chief of College Administration in the United
States Office of Education. Mr. Hollis was a recognized expert
on foundations and was asked to testify on that subject.
Statement of F. Emerson Andrews,
Staff Member, Russell Sage Foundation. He was co-author of a
book titled American Foundations for Social Welfare published
Testimony from Norman A. Sugarman, Assistant Commissioner of the
Internal Revenue Service. His testimony was on the IRS code and tax exempt
organizations. F. Emerson Andrews called back to testify
for a second time.
Statement of James Stevens Simmons, Dean, Harvard School of Public Health called to testify on philanthropic foundations contribution to medicine and public health.
Testimony from Dr. Frederick Middlebush
on the impact of Foundations on education. Middlebush was a
member of the Board of Trustees of the Carnegie Foundation for the
Advancement of Teaching since 1937 to the present which was at the
time, 1952. Testimony
of William I. Myers, Dean, New York State College of Agriculture,
Cornell University. Trustee of the Rockefeller Foundation and the
General Education Board and of the Carnegie Institute of Washington.
He was also a Director of Mutual Life Insurance of New York, Deputy
Director of the Federal Reserve Bank of New York and Director of
L.C. Smith & Corona Typewriter Co. and Continental Can Co. He was
called to testify on the definition of "social science".
Testimony of Vannevar Bush, President of
the Carnegie Institution of Washington and Trustee of the Carnegie
Corporation of New York. Bush was a member of the governing bodies
of three educational institutions--Johns Hopkins University, Tufts
College, and Massachusetts Institute of Technology. He was also a
regent of the Smithsonian Institute. Bush was called to
testify on the contributions of foundations to the physical
sciences. Bush advocated for government support for the
National Science Foundation to be the middleman influence between
the government and universities.
Testimony from Dr. Henry Wriston,
President of Brown University to testify on the contributions and
impacts of Foundations on Education. Note: Henry Wriston
was also the President of the Council on Foreign Relations
(1951-1964). (Wriston's son, Walter became CEO-Chairman of
Citibank / Citigroup.)
Statement and Testimony from H. Rowan
Gaither, Jr. Associate Director of the Ford Foundation. The
committee wanted to hear about the development of the Ford
Foundation particularly in regards to the formulation of policy.
Statement of Henry Ford II, Chairman of the Trustees, Ford
Foundation, and President of Ford Motor Co. He
was called to testify on the history of the Ford Foundation.
Testimony of Paul G. Hoffman, President
and Director of the Ford Foundation. Mr. Hoffman was the President
of Studebaker for 38 years, President from 1935-48. He left
Studebaker to become the Administrator of the ECA (Economic
Cooperation Administration - to administer the Marshall Plan).
He was called to testify as to the nature and purpose of Ford
Testimony from Robert M. Hutchins,
Associate Director of the Ford Foundation, former President of the
University of Chicago.
Includes article from Harper's Magazine, March 1949, titled Timid
Billions-Are the Foundations Doing Their Job? (pdf p37).
Testimony of Alvin C. Eurich, Vice President, Fund for the
Advancement of Education, a division of the Ford Foundation.
At the creation of the Fund, Paul G. Hoffman described the purpose
as follows: "The Fund for Advancement of Education will devote its
attention to educational problems at primary, secondary, college and
university levels. It will authorize basic studies concerning
contemporary goals in education and educational procedures and
encourage experimentation for which no machinery or funds are
available at present.
Testimony from Charles Dollard,
President of the Carnegie Corporation of New York about the Carnegie
trusts - endowments "created for philanthropic purposes". Statement
of Russell C. Leffingwell, Chairman, Board of Trustees, Carnegie
Corp of New York. Leffingwell was a lawyer and a banker. He
was the Fiscal Assistant Secretary of the Treasury, a partner in JP
Morgan & Co. which was liquidated in 1940 and reconstituted as a
trust company under the laws of New York. He became a Director and
Officer of the corporation and was at present the Vice Chairman of
the Board. Leffingwell testified on education and
private enterprise. Testimony of Devereaux C. Josephs, President,
New York Life Insurance Co., Trustee, Carnegie Corp., very brief
Statement and testimony of Donald Young,
General Director of the Russell Sage Foundation.
Statement of Malcolm Pratt
Aldrich, President of the Commonwealth Fund. Aldrich was asked
to testify on the interests and activities of the Commonwealth Fund.
One of their activities was to provide fellowships for British
subjects to provide funding for advanced study, research and travel
in the U.S. for graduates of British universities, by British
journalists, by teachers of American history and affairs at British
universities and by civil servants from Great Britain and the
Testimony from Michael Whitney Straight,
President of the William C. Whitney Foundation and from Milton
Curtiss Rose, Secretary of the Whitney Foundation. Mr.
Straight was also the editor of the New Republic Magazine.
Statement of Marshall Field, President,
the Field Foundation, accompanied by Maxwell Hahn, Director and
Secretary, the Field Foundation. Field was president of
an organization called Field Enterprises, publisher of the Chicago
Sun-Times, the World Book Encyclopedia, Childcraft, a radio station
in Chicago, WJJD, and he held an interest in Simon & Schuster, and
in Pocket Book Publishing Co., in New York. He was also a
director and member of the executive committee of Marshall Field &
Co., a bank in Chicago. The Field Foundation was organized in
1940. Testimony included the thinking behind the founding of
the foundation and the activities of the foundation.
Testimony from Alfred P. Sloan, Jr.
President of the Sloan Foundation. Mr. Sloan worked for
General Motors for 35 years, 25 years of which were as CEO. In 1946
he retired from GM and devoted his time to the Sloan Foundation
which he organized in 1934. Statement of Dean Rusk, President
of the Rockefeller Foundation and President of the General Education
Board. Mr. Rusk was called to discuss "the blueprint" of the
various Rockefeller philanthropies - national and international.
Testimony from Dean Rusk, President of
the Rockefeller Foundation and President of the General Education
Board - resumed. Testimony
of Chester I. Barnard, Consultant to the Rockefeller Foundation.
Barnard had been a trustee of the Rockefeller Foundation, a member
of the executive committee, a member of its finance committee and
president for four years ending 1948. Mr. Barnard
had been president of New Jersey Bell Telephone Co., Director and
organizer of the State Relief Administration for the State of New
Jersey. During the war he was president of the United Service
Organization (USO), prior to that he was Assistant to the Secretary
of the United States Treasury. He was a member of the
Lilienthal Board on the International Control of Atomic Energy and
he was a member of the board of the National Science Foundation.
Barnard testified as to the utility of private foundations doing
things that government can't.
Testimony of John D. Rockefeller, III in
his capacity as trustee of the General Education Board and the
Rockefeller Foundation of which, he was also Chairman.
Testimony from John W. Davis, Honorary
Trustee of the Carnegie Endowment for International Peace.
He was a member of the Board of the Carnegie Endowment beginning in
1921 until December 1950 when he retired at which time, he was
elected as an honorary trustee.
Testimony of Joseph E. Johnson, President, Carnegie Endowment
for International Peace concerning the foundation, it's purpose and
his part in it.
Testimony from Henry Allen Moe,
Secretary of the Simon Guggenheim Memorial Foundation. Mr. Moe
had been the Secretary since it was organized in 1925.
Testimony from Moses W. Rosenfeld of
Blades & Rosenfeld, Attorneys at Law. The Blades & Rosenfeld
law firm were experts in the organization of Foundations having, at
the time of the hearing, organized 33 Foundations in the preceding
10 years. Testimony from Elkan R. Myers, Associated
Jewish Charities of Baltimore, Baltimore, MD. Myers testified on
small foundations. Testimony of J. Benjamin Katzner,
Baltimore, MD also testifying on small foundations. A written
correction to the testimony of Dean Rusk, Rockefeller
Foundation was inserted into the record (pdf p25). A written
correction to the testimony of Paul Hoffman, Ford Foundation
was inserted into the record (pdf p26). A letter sent to the
Committee by Mr. Solomon Barkin, Director of Research,
Textile Workers Union was inserted into the record.
Statement of Alfred
Kohlberg, Director of the American-Chinese Policy Association and
Officer of the American Jewish League Against Communism. In the
past, he had been a member or officer of others including the
Institute of Pacific Relations, the American Bureau for Medical Aid
to China, the Foreign Policy Association and perhaps others.
The Committee re-read the Resolution
that created the Committee - Resolution 561 and they voted to create
a sub-committee authorizing them to hold hearings to investigate
some issues further. (pdf p23). Testimony of Igor Bogolepov,
a Soviet citizen (defector?). He was a Foreign Service Office
for the Soviet Union. He worked in the section that managed
the Baltic countries after they were annexed. During WWII, he
defected to Germany to help overthrow the Soviet government with the
help of the Germans. In 1937, the Soviet government sent him
to Spain to fight against Franco. He worked with the Germans
to carry out radio propaganda against the Soviet Union. He
worked as a delegate to the League of Nations. He got
interested in American foundations when he found publications of the
Carnegie Endowment for International peace in the Foreign Service
Office. After studying all the materials from Carnegie and
Rockefeller, he said they revised the conception that Marx preached
(communist revolution would be made by the hands of the workers in
western countries) to be that the revolution in Western Europe, in
the Western World, can be made through the brains of the
intellectuals who were very much sympathetic with Communist ideas.
He said, "I have to specify that in
Europe, France an infiltration into the French intellectual circles,
universities, scientific societies, and foreign administration was
one of the most important tasks which the Soviet Government, the
Communist government, put before itself, so there were two major
points of application of all efforts of infiltration and, as I call
it, ideological sabotage: The first one was America, and in
Europe it was France".
Testimony of Maurice Malkin, Consultant
with the Immigration and Naturalization Service, United States
Department of Justice. Mr. Malkin was a naturalized citizen, born in
Russia. He had been a charter member of the Communist
Party in the U.S. (1919). He remained a member until 1937 when
he left to function in front organizations until 1939. He was
expelled from the Communist Party in 1937 for disagreeing with the
Testimony of Manning Johnson, Consultant, Investigation
Section, Immigration and Naturalization Service, Department of
Justice. Mr. Johnson was a member of the Communist Party
between 1930-1940. Mr. Johnson joined because he thought they
could help Negros obtain equal citizenship - only to find out that
they merely use them to carry out the objectives of the Soviet
Testimony of Louis Francis Budenz,
Member of the Faculty of Fordham University and Seton Hall
University. Mr. Budenz had been a secret member of the
Communist Party from 1935 until 1945 - except that it was announced
in the Daily Worker that he was an open member of the party on
October 2, 1935. He was the Managing Editor of the Daily
Worker and president of the Freedom of the Press Co., Inc., the
corporation devised to control the Daily Worker.
Also, a submission for the record of a letter from the Carnegie Endowment for International Peace concerning the appointment of Mr. Edouard E. Hoerschelmann and circumstances of that appointment.
Testimony of Ira D. A. Reid, Professor
of Sociology, Haverford College. Mr. Reid had been named as a
Communist in the testimony of Louis Francis Budenz (12-23-1952).
His testimony was to correct the record. He claimed he was not
a Communist and never had been. Mr. Reid had been a member of
the General Education Board (1933-34).
Testimony of Walter Gellhorn,
Englewood, NJ. Mr. Gellhorn was mentioned in the testimony of
Louis Budenz as being a Communist. He came to testify to
Congress that he was not a Communist and never had been.
|753-764||Cox Committee questionnaire asking for views on foundations.|
Statements. These are the responses to the questionnaire
received by the Committee.
Mr. Raymond B. Fosdick, former
President of the Rockefeller Foundation - The Role of
|786||Correspondence between Committee and John Foster Dulles|
|787-792||Refutations & Rebuttals.
Henry M. Wriston, President responding for CFR refuting testimony of Alfred Kohlberg;
Letter from Michael Straight, Editor
of the New Republic concerning testimony of Maurice Malkin
|792-798||Digest of State Regulations by Eleanor K. Taylor|
|12-24-1952||799-818||Final Report of the Committee; death notice for Chairman Cox pg 803|
Opening of the hearing, reading of
Resolution 217, 83rd Congress, 1st Session. Hearing convened
to do a full and complete investigation of tax-exempt foundations to
determine if they are using their resources as intended or if they
are being used for un-American and subversive activities, political
propaganda or to influence legislation. Rules of procedure and
testimony of Norman Dodd, Research Director, Special Committee to
Investigate Tax Exempt Foundations
|05-11-1954||27-78||Testimony of Norman Dodd resumed.|
Testimony of Norman Dodd resumed.
Testimony of Katherine Casey, Legal Analyst, Special Committee to
Investigate Tax-Exempt Foundations concerning two mimeographed
version of Mr. Dodd's report and last minute changes before
distribution of the report. Testimony of Norman Dodd resumed.
Testimony of Dr. Thomas Henry Briggs, Meredith, NH.
Testimony of Dr. A.H. Hobbs, Assistant
Professor of Sociology, University of Pennsylvania concerning the
study of sociology and a book written by Hobbs titled, Social
Problems and Scientism.
|05-20-1954||169-192||Testimony of Dr. A.H. Hobbs, resumed.|
|05-24-1954||193-238||Testimony of Aaron M. Sargent, Attorney, San Francisco, CA. Issues concerning the Cox Committee, missing documents, Mr. Sargent's prior work on California schools, textbooks, legislation. List of Communist front groups.|
Considerable in-fighting between members
of the Committee on a host of issues including infiltration by
Fabian Socialists. Testimony of Aaron M. Sargent, resumed.
Testimony of Aaron M. Sargent resumed.
(pdf pg 44, list of all officers, directors and trustees for the
Carnegie Corporation, 1911-54; for the Carnegie Endowment for
International Peace, 1910-54; Carnegie Foundation for the
Advancement of Teaching; Trustees (or Directors) and Officers of the
Ford Foundation and it's five agencies in specialized fields
including the East European Fund, Inc., the Fund for Adult
Education, the Fund for the Advancement of Education, the Fund for
the Republic, the Intercultural Publications, Inc., and Resources
for the Future; The Rockefeller Foundation trustees and principal
officers 1913-1954 including divisions of specialized interest -
International Health Division, Division of Medical Sciences,
Division of Medicine and Public Health, Division of Natural Sciences
and Agriculture, Division of Social Sciences, Division of
Humanities; Rockefeller General Education Board (1902) trustees and
principal officers.) The record includes a study by the Ford
Motor Company published in the Corporate Director; reference to
UNESCO and education.
|397-414||Documents of Aaron Sargent inserted into the record for the 05-26-1954 hearing.|
Opening, - dissention on the committee,
debate and procedural vote. Rep. Pfost objects to the conduct
of the hearings, lack of clarity on the purpose of the hearings, the
lack of pre-hearing information on witnesses to testify.
Testimony by Internal Revenue Service Commissioner T. Coleman
Andrews and the Assistant Commissioner, Norman A. Sugarman to
discuss the application of tax laws to tax-exempt foundations.
Testimony of Thomas M. McNiece,
Assistant Research Director, Special Committee to Investigate
Tax-Exempt Foundations on the relationship between foundations,
education and the government. Chart of functional
Testimony of David Nelson Rowe, Yale
University, fellow of the Rockefeller Foundation etc. He was a
research analyst, Special Defense Group, Department of Justice,
Special Assistant to the Director of the Bureau of Research and
Analysis, OSS. Council on Foreign Relations, USIS, US
Consulate, Shanghai, Consultant to USAF, Consultant to Stanford
Research Institute. Rowe - expert on the Far East. Hearing
record includes the Officers and Trustees of the American Institute
of Pacific Relations.
Testimony of Professor Kenneth Colegrove
concerning investigations into Rockefeller and Carnegie support for
the Institute of Pacific Relations after information came to light
that the IPR had been taken over by Communists and had become a
propaganda arm for them.
Testimony of Thomas M. McNiece resumed.
Testimony of Kathryn Casey, Legal Analyst, Special Committee to
Investigate Tax-Exempt Foundations. Includes a statement Summary of
Activities of Carnegie Corporation of New York, Carnegie Foundation
for the Advancement of Teaching, the Rockefeller Foundation, the
Rockefeller General Education Board (pdf p70).
Testimony of Ken Earl, Attorney, Lewis,
Strong & Earl of Moses Lake, Washington. Mr. Earl was an
employee on the staff of the Internal Security Subcommittee and the
Immigration Sub-committee in the Senate. Mr. Earl was called
to testify concerning what he knew of the League for Industrial
Testimony of Ken Earl - resumed.
Testimony of Pendleton Herring, President Social Science Research
Council, accompanied by Paul Webbink, Vice President, Social Science
Research Council and Timothy Pfeiffer, Attorney, New York City.
Herring worked for Carnegie Corp from 1946-48 and he wrote a book
titled, Public Administration and the Public Interest and a
book titled Presidential Leadership. The record
includes two supplementary statements on behalf of the Social
Science Research Council (pdf p47). Another document inserted
into the record titled Types of Questions Considered by SSRC
Committees (pdf p60).
Testimony of Pendleton Herring,
President Social Science Research Council, accompanied by Paul Webbink, Vice President, Social Science Research Council and
Pfeiffer, Attorney, New York City - resumed.
Notice, June 18 hearing canceled due
to the death of Representative Farrington of Hawaii. (It's
unclear whether or not the death was related to the Reese Hearing on
Tax Exempt Foundations. One would think not except for the
statement made by Chairman Reese when he notified the committee of
the postponement. pdf p29).
Resolution of the Committee:
"Now be it resolved that in lieu of
further public hearings and in order to expedite the investigation
and to develop the facts in an orderly and impartial manner, those
foundations and others whose testimony the committee had expected to
hear orally be requested to submit to the committee through its
counsel within 15 days sworn written statements of pertinence and
reasonable length for introduction into the record--such statements
to be made available to the press--and that the committee proceed
with the collection of further evidence and information through
means other than public hearings".
Pursuant to the resolution of the
committee on July 2, 1954... staff report by Kathryn Casey,
legal analyst, on the Carnegie and Rockefeller Foundations
incorporated into the record. Title: Summary of Activities
of Carnegie Corp. of New York, Carnegie Endowment for International
Peace, the Rockefeller Foundation.
|953-966||Part II - Statements, Letters, Reports, Rebuttals, Correspondence|
|967-1134||Composite Index - Cox and Reese Hearings|