The Rockefeller Files: Chapter Four Profit x Philanthropy = Power by Gary Allen from archive.org

Chapter Four 

Profit x Philanthropy = Power 

"Philanthropy is the essential element in the 
making of Rockefeller power. It gives the 
Rockefellers a priceless reputation as public 
benefactors which the public values so highly 
that power over public affairs is placed in the 
Rockefellers' hands. Philanthropy generates 
more power than wealth alone can provide. " 

-Myer Kutz 
Rockefeller Power 

The foundation ploy was one of the cleverest moves shrewd old John D. ever made-and 
he was responsible for some lulus. By the turn of the century the tactics he had used to 
create the Standard Oil monopoly made his name synonymous with ruthless exploitation. 
He was known as John D. Reckafellow, with a worse reputation than Scrooge. He may 
have been the most hated man in America. 

In order to scrub up his image (and possibly assuage his alleged conscience), John D. 
hired Ivy Lee, the nation's most prestigious ad man of the day. Lee suggested that the 
aging gentleman offset his skinflint image by starting to give away money. Scrooge was 
to be turned into an instant Santa Claus. To begin with, Lee (the original Madison 
Avenue truth-twister) had Mr. Standard Oily carry around a pocketful of dimes which he 
would strew before deliriously happy and grateful kiddies whenever he made one of his 
infrequent public appearances. Cynics observed that St. John ripped off money by the 
millions and doled it back a dime at a time. 

Well, not quite. He had an even more Machiavellian scheme in mind. He would "give- 
money away to foundations under his control and then have those foundations spend the 
money in ways which brought even more Power and profits to the Rockefeller Empire. 
The money "given away " would be bread cast upon the waters. But bread that almost 
always had a hook in it. John D. Jr. was to refer to this as the -principle of scientific 
giving. 

The original Rockefeller foundation was established in 1901 and was called The 
Rockefeller Institute for Medical Research. It was set up as part of Lee's PR program to 
clean up the Rockefeller image. Doubtless the Rockefeller money has done much good in 



the field of public health and scientific research-although there are some who will give 
you a heated argument even here.* 

*Those who believe that Rockefeller even in the health field is phony, point out the fact 
that Rockefeller monies have been used to degrade natural prevention of sickness and 
disease through vitamins and health foods and promote the use of drugs. Drugs are 
manufactured mainly from coal tar derivatives and, besides being in the oil business, the 
family has for decades been heavily invested in the giant drug manufacturing concerns. 

For more information on Rockefeller control of medicine, see G. Edward Griffin's World 
Without Cancer, 

By 1910, state after state was approving the 16th Amendment, which provided for a 
graduated income tax, John D. read the handwriting on the Congressional wall and, using 
his -deeply conspiratorial nature," began making plans to avoid the consequences of the 
tax by hiding his wealth in the Rockefeller Foundation. 

One quite naturally assumes that the graduated income tax, the second plank of the 
Communist Manifesto, would be opposed by the wealthy. The fact is that many of the 
wealthiest Americans supported it. At first the taxes were to be very small, and some of 
the superrich may have promoted them out of altruism. But others backed the scheme 
because they already had a plan for permanently avoiding both the income-tax and the 
subsequent inheritance tax. John D. had figured out how to turn the lemon of the 
graduated income tax into lemonade for the House of Rockefeller. It is the most classic 
case of what accountants call "pretax planning" on record. 

Chapter XVI, Part II of a two-volume set. 

The best way for the Rockefeller-Morgan Insiders to eliminate growing competition was 
to impose a progressive income tax on their competitors while making sure the law 
contained built-in escape hatches for themselves. Actually, very few of the proponents of 
the graduated income tax realized they were playing into the hands of those they were 
seeking to control. As Ferdinand Lundberg notes in The Rich And The Super rich: 

What it [the income tax] became, finally, was a siphon gradually inserted into the 
pocketbooks of the general public. Imposed to popular huzzahs as a class tax, the income 
tax was gradually turned into a mass tax in a jujitsu turnaround .... 

The Insiders' principal mouthpiece in the Senate during this period was Nelson Aldrich of 
Rhode Island, the maternal grandfather of Nelson Aldrich Rockefeller. Lundberg says 
that "when Aldrich spoke, newsmen understood that although the words were his, the 
dramatic line was surely approved by 'Big John' [D. Rockefeller] . . . .- In earlier years 
Aldrich had denounced the income tax as -communist and socialistic,- but in 1909 he 
pulled a dramatic and stunning reversal. The American Biographical- Dictionary 
comments: 



just when the opposition had become formidable he (Aldrich) took the wind out of its 
sails by bringing forward, with the support of the President (Taft) a proposed amendment 
to the Constitution empowering Congress to lay income taxes. 

The escape hatch was ready. By the time the Amendment had been approved by the 
states, the Rockefeller Foundation was in full operation. The careful orchestration of both 
parts of the campaign represents one of the most successful financial coups in history. 
The money the Rockefellers have made by it is incalculable. 

By exempting themselves from the burden they forced on their competitors, the 
Rockefellers were able to operate in a world of near laissez-faire capitalism while foisting 
the weight of more and more socialism on their competitors. It is the equivalent of a 
sprinter forcing every other runner in a race to carry a sixteen-pound shot. 

Backing the graduated income tax had another timely advantage for old John. It was 
about the same time that Judge Kenesaw Landis was ordering the breakup of the Standard 
Oil monopoly. Wily John D. was able to kill several flying feathered creatures with a 
single hard object. He not only avoided taxes by creating four great tax exempt 
foundations; he used them as repositories for his -divested- interests in the various 
Standard Oil entities. In the switch, Rockefeller had made his assets non-taxable so that 
they might be passed down through generations without being ravaged by the estate and 
gift taxes which everyone else had to pay. As Lundberg observed, old John D. planned 
ahead. 

Each year the Rockefellers can dump up to half their incomes into their pet foundations 
and deduct the "donations" from their income tax. Nelson admitted at the confirmation 
hearings:" . . the foundation pays no capital gains tax and no income tax so those funds 
can continue to multiply. They not only can, they do. 

Having the foundations as a tax-free piggy bank is only one of the advantages they 
provide the family. As Business Week has observed: -"The real motive behind most 
private foundations is keeping control of wealth. "In the foundation world, where - not 
for profit- really means not- for- taxation,- one exchanges ownership for control. 

The Rockefellers have further advantages with their foundations. They can buy, sell or 
hold real estate, stocks and other securities. Congressman Wright Patman, chairman of 
the House Banking Committee, has charged that the Rockefellers and other foundations 
act in concert, using their enormous portfolios to perform maneuvers which used to be 
known indelicately as -rigging the market. - 

So powerful have the major foundations become that the Patman Committee concluded: 
"Unquestionably, the economic life of our Nation has become so intertwined with 
foundations that unless something is done about it they will hold a dominant position in 
every phase of American life." 



Since this report was issued by the Patman Committee in the early 1950s, absolutely 
nothing has been done about the power of the Rockefeller-controlled foundations - except 
to assist them to become even more powerful. And as this knowledgeable study warned 
over twenty years ago, these foundations now do hold " adominant position in every 
phase of American life", as we shall see. 

It is the Rockefeller family which sits comfortably astride this foundation colossus. 
Collectively, the Rockefeller foundations have in excess of $1.5 billion in assets but they 
also have interlocking control over the other most powerful foundations, the Carnegie 
Group and the giant Ford Foundation. 

When you hear of "Carnegie Foundation" think Rockefeller. For many years the five 
Carnegie foundations have been mere appendages of the Rockefeller octopus. The chief 
operators of the Carnegie foundations have for decades been members of the Rockefeller 
coordinating committee, the Council on Foreign Relations, the glue which holds the 
Rockefeller Establishment together. (The Council on Foreign Relations, or CFR, is the 
subject of the next chapter.) In addition, two of the six men on the Carnegie Corporation's 
finance committee are also directors of Rockefeller financial institutions. 

The baby giant of the foundation world is the $3 billion- in-assets Ford Foundation. From 
1953 to 1965, John J. Mc Cloy was chairman of the Ford Foundation, during most of 
which time he was also chairman of the Chase Manhattan Bank. Mc Cloy was succeeded 
by another Rockefeller minion, Eugene Black, a director of Chase Manhattan and former 
head of the World Bank. Currently running the show at the Ford Foundation is Mc 
George Bundy, formerly on the payroll of the Rockefellers' Council on Foreign 
Relations. As with the Carnegie foundations, most of the trustees of the Ford Foundation 
are members of the Rockefellers' Council on Foreign Relations. 

It is not too hard to see how, as the Patman Committee has charged, these foundations 
can collude to act as a single entity. 

The terrible part of this business is that the economic fraud permitted the Rockefellers 
through their foundations- though maddening to the middle-class taxpayers who are 
aware of it-is the least malignant part of the foundation picture. It is the political and 
social impact of these foundations which is devastating. So serious is the matter, in fact, 
that even the irascible Congressman. Patman has not dared venture into such affairs, 
knowing that the trail is littered with the bleached bones of, imprudent Congressional 
investigators who sought to reveal how the Rockefellers are using the foundations in their 
grab for complete domination of the United States, 

The first of the Congressional Committees to attempt such an investigation was the Cox 
Committee, created in 1952 under the leadership of Congressman Eugene E.Cox, a 
Democrat from Georgia. Warren Weaver notes in U. S, Philanthropic Foundations that 
the official purpose of this Committee was to determine which -foundations and 
organizations are using their resources for purposes other than the purposes for which 
they were established, and especially to determine which such foundations and 



organizations are using their resources for un-American and subversive activities or for 
purposes not in the interest or tradition of the United States." 

"Liberal" Democrats in control of Congress first delayed the appropriation of funds for 
the Cox Committee, then gave it only six months to conclude an investigation that would 
properly require several years. 

Cox hoped to expose foundation fraud and the subversives, behind it; but, as Dwight Mac 
Donald has pointed out, " the strategy misfired, because the Democratic leaders, who 
were still in control of the House, boxed the impeccably Americanistic chairman with 
less dedicated colleagues." It was all-out war- with billions involved. 

The first battle ended with a serious casualty Congressman Cox fell gravely ill during the 
investigation and died. 

Without his leadership, the Committee Report became a whitewash. 

One member of that Committee refused to be a party to the Cover up. He was 
Congressman Carroll Reece of Tennessee, a former Chairman of the Republican National 
Committee and one of Robert Taft's campaign managers. Reece promptly demanded a 
new investigation. 

The Rockefeller Establishment was frantic that its sacred cows might be butchered. "The 
Washington Post, closely tied to the Rockefellers, never before known for its sense of 
public frugality, screamed that the Reece probe was "wholly unnecessary and was 
stupidly wasteful of public funds.-" 

The heat was on. So much so that when in a speech on the floor of Congress Mr. Reece 
referred to a "conspiracy," his use of the term brought down on his head an avalanche of 
anger and ridicule from virtually the entire Establishment Press. At the same time, the 
foundations unleashed an enormous barrage of vilification against the probe. 

While the Press was shouting "- Mc Carthyism, Rockefeller elements in the Republican 
Party were working behind the scenes to kill the investigation. As Rene Wormser, 
counsel for the Reece Committee, noted in Human Events for July 5, 1969: 

A Republican President [Eisenhower, who had the full support of the Rockefellers in his 
fight against Robert Taft] sat in the White House. The House of Representatives and all 
its committees were Republican controlled. Mr. Reece was a distinguished and important 
Republican .... Yet, when a committee of five members was appointed to conduct the 
foundation investigation, Mr. Reece found that, of the four others appointed with him, 
three had been selected from among members of the House who had voted against the 
investigation. 

The key agent in Rockefeller efforts to break up the investigation was Congressman 
Wayne Hays of Ohio, a member of the Committee. During the inquiry, two tennis-shoe 



types decided to play Agatha Christie and began trailing Hays. They discovered that he 
went to the same Washington hotel for a closed luncheon on a specific day each week. 
Dressing as cleaning women, the ladie, investigated and established that Hays was 
reporting to representatives of several major foundations. Rent Wormser comments in 
Human Events on the Hays' tactics, 

Mr. Hays showed himself exceptionally adept at disruption. For example, in one session 
of 185 minutes, he resorted to constant interruption 246 times. He refused to obey rules 
of the committee. He insulted and vilified witnesses, counsel to the committee and 
committee members themselves. His intransigence finally caused' a termination of the 
hearings. 

The brazen Congressman Hays even explained the purpose of his conduct to Counsel 
Wormser. Mr. Wormser noted in his book, Foundations: Their Power and Influence: 
Mr. Hays told us one day that "the White House" had been in touch with him and asked 
him if be would cooperate to kill the committee." 

Because of limited time, staff, and money, the Reece Committee was forced to 
concentrate its investigation or various Rockefeller and Carnegie foundations, and on the 
huge Ford Foundation. 

The Committee found that one of the first areas into which John D. invested his money 
was education. Daddy Oilbucks put his assistant, Fred Gates, in charge of his General 
Education Board. Gates tipped the Rockefeller philosophy on education in the Board's 
Occasional Paper No.l; 

In our dreams we have limitless resources and the people yield themselves with perfect 
docility to our molding hands. The present educational conventions fade from our minds, 
and unhampered by tradition, we work our own good will upon a grateful and responsive 
rural folk. 

Later, the General Education Board expanded horizons to take into its "molding hands" 
the city folk at well. To this end the Rockefeller and Carnegie foundations, which often 
had interlocking directorates and many times acted in unison, began in the early Thirties 
to back John Dewey and his Marxist educationalists with enormous amounts of money. 

As Rene Wormser observes: 

Research and experimental stations were established at selected universities, notably 
Columbia, Stanford, and Chicago. Here some of the worst mischief in recent education- 
was born. In these Rockefeller-and-Carnegie established vineyards worked many of the 
principal characters in the story of the suborning of American education. Here 
foundations nurtured some of the most ardent academic advocates of upsetting the 
American system and supplanting it with a Socialist state.... 



The Carnegie and Rockefeller foundations had jumped into the financing of education 
and the social sciences with both Left feet. For example, the foundations (principally 
Carnegie and Rockefeller) stimulated two-thirds of the total endowment funding of all 
institutions of higher learning in America during the first third of this century. During this 
period the Carnegie-Rockefeller complex supplied 20 % of the total income of colleges 
and universities and became in fact, if not in name, a sort of U.S. Ministry of Education. 
The result was a sharp Socialist-Fascist turn. As Rene Wormser, Counsel for the Reece 
Committee, reports: 

A very powerful complex of foundations and allied organizations has developed over the 
years to exercise a high degree of control over education. Part of this complex, and 
ultimately responsible for it, are the Rockefeller and Carnegie groups of foundations. 

These foundations were, by way of grants amounting to hundreds of millions of dollars, 
responsible for the nationwide acceptance of avowed socialist John Dewey's theories of 
progressive education and permissiveness -the products of which have been marching on 
our college campuses for the past two decades. 

Traditionalist teachers, who had been strongly resisting Deweyism, were swamped by 
education propagandists backed with a flood of Rockefeller-Carnegie dollars. At the 
same time the National Education Association, the country's chief education lobby, was 
also financed largely by the Rockfellers and Carnegie foundations. 

It, too, threw its considerable weight behind the Dewey philosophies. As an NEA report 
maintained in 1934: 

A dying laissez-faire must be completely destroyed and all of us, including the "owners," 
must be subjected to a large degree of social control. 

Since America's public school system was decentralized, the foundations had 
concentrated on influencing schools of education (particularly Columbia, the spawning 
ground for Deweyism), and on financing the writing of textbooks which were 
subsequently adopted nationwide. These foundation-produced textbooks were so heavily 
slanted in favor of socialism that Wormser concluded:"- It is difficult to believe that the 
Rockefeller Foundation and the National Education Association could have supported 
these textbooks. But the fact is that Rockefeller financed them and the N.E.A. promoted 
them very widely. - 

Little wonder that Reece Committee Counsel Wormser says evidence compiled during 
and after the Reece investigation of foundations: 

leads one to the conclusion that there was, indeed something in the nature of an actual 
conspiracy among certain leading educators in the United States to bring about socialism 
through the use of our school systems... 



Congressman Cox had denounced these foundations for precisely these reasons. He 
named in particular the Rockefeller Foundation, -whose funds have been used to finance 
individuals and organizations whose business it has been to get communism into the 
private and public schools of the country, to talk down America and play up Russia.... 

It goes without saying that, by controlling the textbooks, the progressivists gained an 
open sesame to the minds of millions of students in the government schools. As John T. 
Flynn observed, it wasn't necessary to poison every glass of water coming out of every 
tap in a given community. It was necessary only to drop one cup of poison into the 
reservoir. 

So successful was this conspiracy that by June of 1955, the Progressive Education 
Association which had been founded by John Dewey officially disbanded. Dr. H. Gordon 
Hullfish, the Association's president, explained: 

Founded in 1919 the PEA was a protest movement against traditional education, based in 
large part up on the philosophy of John Dewey. One reason for PEA's end is that many of 
the practices. It has advocated have been adopted by the nation's schools. 

This progressive education is Rockefeller education. After all, they planned for it, they 
promoted it, and they paid for it! 

Those who control education will over a period of several generations control a nation. 
The Rockefellers have for five or six decades been a controlling influence in the direction 
of American education. 

While education is a powerful tool for controlling the thinking and outlook of people, it is 
not the only means. 

Religion is also an important molder of public opinion. 

For many years the Rockefeller Dynasty has bankrolled the Union Theological Seminary 
of New York, which has done so much to turn the clergy towards state socialism fascism, 
and to destroy the tenets of traditional Christianity. The highly influential seminary is 
known for turning out " Christian-Communists. 

The family's chief religious philanthropy for a number of years was the notorious Federal 
Council of Churches, which was pronounced by US Naval Intelligence in 1936 as one of 
the most dangerous, subversive organizations in the country. According to Naval 
Intelligence: 

It is a large radical -pacifist- organization, and probably represents 20,000,000 Protestants 
in the United States. However, its leadership consists of a small group which dictates its 
policies. It is always extremely active in any matters against national defense. 



In its many official pronouncements, the Federal Council attacked free enterprise, 
capitalism and the American way of life, and boldly advocated Socialism. In an official 
report in 1932,the Federal Council stated: 

" The Christian ideal calls for hearty support of a planned economic system.... It demands 
that cooperation shall replace competition as a fundamental method." 

At a full meeting in Indianapolis in December, 1932, the Federal Council adopted 
unanimously this Socialist creed: "-The churches should stand for social planning and 
control of the credit and monetary system and the economic processes. 

The following year,1933,the Council officially declared: "The Christian conscience can 
be satisfied with nothing less than the complete substitution of motives of mutual 
helpfulness and good will for the motive of private gain." 

The Federal Council was so flagrantly a mouthpiece for the gospel according to St. Stalin 
that it was forced to change its name. It became the National Council of Churches which 
today claims to represent some forty million Protestants. While less prone to praising the 
Soviets as openly as its predecessor, the NCC has repeatedly been denounced by 
fundamentalist Christian organizations for its slavish adherence to promoting radical 
socialism and its lovey-dovey attitude toward Moscow. Today, after forty years of 
assiduous anti Americanism and the promotion of totalitarian government at home and 
abroad, the NCC still enjoys the largesse of the Family Rockefeller. Its past president J. 
Irwin Miller is a perennial Rockefeller front man and a trustee of the Ford Foundation.* 

*The NCC has donated hundreds of thousands of dollars to buy arms for revolutionary 
Communist groups in Africa. These arms are used by the Communists to slay Christians, 
while thousands of American clergymen look the other way. If this is not murder by 
proxy, what is it? 

Through its multiple foundations the Rockefeller family invested its money where it 
would have the most influence and do the family the most good. And by far the chief 
beneficiaries of its -charities- have been the Rockefellers. 

The question that is racing through the mind of most readers at this point undoubtedly is 
why the Rockefellers, considered the world's foremost capitalists, have spent hundreds of 
millions of dollars financing their alleged enemies, the socialists. 

One would assume that, since the Rockefellers are thought of as capitalists, they would 
have used their fortune to foster the philosophy of individual liberty. But, just the 
opposite is true. We have been unable to find a single project in the history of the 
Rockefeller foundations which promotes free enterprise. Indeed, except in the fields of 
health and science (and some of these grants are highly questionable) almost all of the 
Rockefeller grants have been used directly or indirectly to promote economic and social 
collectivism, i.e., Socialism-Fascism. 



Reasonable men ask what could Motivate the Rockefellers to finance collectivist efforts 
which seem so totally at odds with their own interests. They forget that John D. 
Rockefeller was a Machiavellian who boasted that he hated competition. Whenever he 
could, Rockefeller used the government to promote his own interests and to hinder his 
competitors. Monopoly capitalism is impossible unless you have a government with the 
power to strangle would-be competitors. 

The easiest way to control or eliminate competitors is not to best them in the marketplace, 
but to use the power of government to exclude them from the marketplace. If you wish to 
control commerce, banking, transportation, and natural resources on a national level, you 
must control the federal government. If you and your clique wish to establish worldwide 
monopolies, you must control a World Government. 

The Rockefellers are not humanitarians; they are power-seeking Machiavellians. They 
are using, their phony philanthropy as a guise for seizing power on a magnitude that 
would make old John D. Sr. proud. 

On to chapter five 

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Chapter Five 

Yes, Virginia, There is an Establishment