CHAPTER I

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WASHINGTON COVER-UP

WASHINGTON

COVER-UP

_Clark R. Mollenhoff_

DOUBLEDAY & COMPANY, INC., GARDEN CITY, NEW YORK

1962

LIBRARY OF CONGRESS CATALOG CARD NUMBER 62-13288

COPYRIGHT © 1962 BY CLARK R. MOLLENHOFF

ALL RIGHTS RESERVED

PRINTED IN THE UNITED STATES OF AMERICA

CONTENTS

CHAPTER I Secrecy Solves No Problems 9

CHAPTER II The First Century 21

CHAPTER III Teapot Dome to the Tax Scandals 30

CHAPTER IV Army-McCarthy—A Claim of Secrecy

Unlimited 41

CHAPTER V Another Blow at Senator Joe 55

CHAPTER VI Secrecy Fix on Dixon and Yates 60

CHAPTER VII Congress Becomes Concerned 79

CHAPTER VIII Secrecy Hides the Security Bunglers 86

CHAPTER IX Secrecy Curtain on Iron Curtain

Deals 95

CHAPTER X Pressing a Point with Ike 106

CHAPTER XI Keeping the Professor in the Dark 114

CHAPTER XII Ike’s Lawyer and the Law 129

CHAPTER XIII Muzzling the Public’s Watchdog 143

CHAPTER XIV Hiding the Laos Mess 153

CHAPTER XV Defiance to the End, Above the Law 169

CHAPTER XVI Kennedy Makes a Wobbly Start 177

CHAPTER XVII A Pending Problem for JFK 190

CHAPTER XVIII A Solution 201

APPENDIX A Letter from President Eisenhower to

the Secretary of Defense 210

APPENDIX B Letters Regarding the Presidential

Letter of May 17, 1954 222

APPENDIX C Correspondence on the Right of Access

to Information by the General

Accounting Office 224

APPENDIX D Letter from President Kennedy to

the Secretary of Defense 236

APPENDIX E Executive Privilege Correspondence

between President Kennedy and

Congressman John E. Moss 237

WASHINGTON COVER-UP

CHAPTER I

Secrecy Solves No Problems

No single factor is more important to the strength of our democracy

than the free flow of accurate information about the government’s

operations. The citizen in a democracy must know what his government

is doing, or he will lack the soundest basis for judging the

candidates and the platforms of our political parties.

Our elected officials are given only a temporary grant of power,

and only a temporary custody of government property and government

records. Neither the President nor those he appoints have any royal

prerogative; they have only a limited right to steer our government

within the framework of the Constitution and the laws.

It is well to remember that every withholding of government business

from the public is an encroachment upon the democratic principle that

government officials are accountable to the people. It follows that

citizens should regard all governmental secrecy with some suspicion

as an encroachment on their right to know.

The American citizen should reject all arbitrary claims to secrecy

by the bureaucracy as sharply as he would reject any claims to a

right of the executive branch to by-pass Congress in levying taxes.

A wise citizen should be as outraged at arbitrary secrecy as he

would be at arbitrary imprisonment. Logically he should insist on

the same safeguards against arbitrary secrecy that he would against

unjustified arrest or taxation. The public’s “right to know” is that

basic.

Unfortunately, there is a general tendency to regard government

secrecy as only a problem for the newspapers. And even within the

newspaper profession there is a tendency to ignore government secrecy

until it interferes with a story the individual reporter or editor

wants to develop.

I am not interested in pleading for any special right of access to

government information for newspapers or reporters. As vital as their

function is, newspapers, magazines, television and radio for the most

part merely provide an orderly process for disseminating information

about government to the people who do not have the time, money,

or technical facility to acquire the information for themselves.

Transmitting information gathered at a government press conference or

through a government press release does not necessarily answer the

people’s right to know.

The public has a right to expect that its government’s press releases

will be factually accurate, and for the most part they are. We

also have a right to expect our highest officials to be factually

accurate, but we must recognize realistically that it is only normal

for them to color facts with opinions and conclusions that are most

favorable to the political party in power.

This manipulation, shading, twisting, or omission of facts—often

referred to as “managing the news”—will be limited only by the

political fear of being exposed for having made erroneous or

intentionally misleading statements to the public. As reprehensible

as the practice can be, it is nevertheless a political fact of life

and those who lament its existence would do better to bolster the

one sure safeguard against it: the people’s right to know—through

the press and through their elected representatives in Congress.

News management, I repeat, can be controlled only by insisting on

the public’s right to go behind the statements distributed by the

government agencies or by high government officials.

Those who manipulate the news or try to cover their tracks with

arbitrary secrecy are not likely to be pursuing totalitarian goals.

Usually the only motivation is short-term political gain. Often it

is rationalized on grounds that a few factual errors and overdrawn

conclusions are not important when viewed in the total context of

the achievements of the party in power. There is also the standard

rationalization that a few distortions only serve to balance the

distortions of the other political party.

No administration enjoys admitting errors or mismanagement of

government. Because the criticism is usually initiated by the

political opposition, it is often harsh and overdrawn. An instinctive

defensiveness springs up within the defending political party, and

the battle rages.

In the classic political controversy, the initial criticism has been

followed by a demand for a full investigation. The press has already

done some investigative work and has printed stories dealing with

all available aspects of the controversy. However, when the probing

by the press or by private citizens has not been conclusive, the

Congress, throughout the history of the United States, has launched

investigations to dig out the facts not otherwise available to the

press or the public. And almost as often as the Congress has dug in,

the executive branch has refused or been reluctant to co-operate.

A truly thorough investigation of the executive branch can be

conducted only in the Congress. It is unreasonable to believe that

an Attorney General, appointed by the President, will aggressively

delve into an investigation of matters that might embarrass his own

administration. For this reason, the right of the public and the

press to government information is for the most part contingent upon

the power of Congress to obtain documents and testimony from the

executive branch.

If the committees of Congress, acting within the scope of their

authority, cannot obtain access to all the facts on government

activity, then the facts can be arbitrarily hidden for the

duration of the administration’s power. Who would argue that

any administration should be allowed to bury its crimes, its

mismanagement, and its errors until a public, barred from full facts

on these matters, decides to vote that party from power? Such a

philosophy would put a premium on the Washington cover-up.

Properly authorized committees must have the power to compel

government officials to testify and produce government records. If

this power is lacking, the Congress, the press, and the public are

dependent upon the information or half-information that the executive

branch chooses to release. It should be obvious to even a novice

in politics that politicians are not likely to voluntarily produce

testimony or records that may harm their own aspirations.

Most congressional requests for information have been filled without

trouble. The executive branch has resisted, however, whenever it

seemed likely that congressional hearings would expose some political

favorite or embarrass the administration. Invariably it has been

claimed that the Congress was invading the executive branch and that

some constitutional issue was involved.

In this book I will show how the executive branch, beginning with

George Washington’s administration, has handled requests from

Congress for delivery of information. And I will show how the

tendency to withhold information has grown, particularly since World

War II.

It is not my intention to argue that all government information

should be made public immediately, for I am fully aware of the

need for security on military matters as well as the need for some

restrictions on release of information from personnel files and

investigative files.

In practice, we must allow our elected officials the right to

withhold some kinds of information from the public. War plans and

other papers involving military security are the more obvious

examples. But any withholding should be done under specific grants of

authority from Congress or under specific grants in the Constitution,

and the authority should be carefully limited. The broad right of

arbitrary withholding of information is not something that any

officials should be permitted to arrogate to themselves.

There is ample justification for laws that set out areas of military

information to be withheld from the general public. There always

has been. It would be especially foolhardy in these days of serious

international tension to insist on a full public disclosure of our

military posture. However, this does not mean that all persons

outside the military establishment should be barred from access

to military information. There should be no question about proper

committees of Congress having access to nearly all information on

military spending, for this is the only way the Congress can obtain

sufficient information for passing laws and appropriating money.

Also, the auditors of the General Accounting Office (GAO) must have

access to all but the most highly classified Defense secrets, or

they will be unable to carry out their duties of determining whether

expenditures are being made in an efficient and lawful manner.

There might also be justification for withholding information from

the public when it involves diplomatic negotiations with a foreign

nation. However, barring the public should not bar the GAO or

properly authorized committees of Congress except under the most

unusual and most clearly delineated circumstances.

There are other areas of government in which secrecy is justified.

These include the raw investigative files of the Federal Bureau of

Investigation (FBI), and some parts of the government personnel

files. There are clear reasons for barring the public from the FBI

investigative files, for these files contain much unevaluated rumor

and many unauthenticated documents. Also, as FBI Director J. Edgar

Hoover has pointed out, much mischief could be done by the underworld

and subversive elements if they had access to FBI files.

But while we are using a limited secrecy to guard our chief

federal investigative agency, we must realize that law enforcement

agencies can go wrong if there is not some regular scrutiny from

the outside. This was demonstrated in the twenties, just prior to

the time when J. Edgar Hoover was put in charge of cleaning up the

federal investigative agency. We have been fortunate to have a J.

Edgar Hoover heading the FBI, but we cannot assume that the office

will always be filled by one whose major ambition is creating and

maintaining a skilled career investigative agency.

Under unusual circumstances, arrangements have been made for

examination of an entire FBI file by the chairmen of the Judiciary

committees of the House and Senate. On occasion, the ranking minority

member of these committees has taken part. Since this procedure

provides for examination by a Democrat and a Republican, it has the

strength of being bipartisan. It has the disadvantage of depending

on the character and personality of the majority and minority

representatives for true bipartisanship. The procedure is a touchy

one that the press, the public, and the Congress must scrutinize

periodically. Certainly the FBI must have a right to keep its files

secret from the public, but it should never be forgotten that some

limited bipartisan congressional group must have authority to examine

these files if we are to remain secure from possible abuse of power.

President Truman wrapped government personnel files in secrecy on the

theory that making them available to a Republican-dominated committee

of Congress could result in the use of rumor and hearsay to “smear”

government officials. Certainly it is laudable to try to protect

government employees from baseless charges. But this “protection”

for the government employees has its drawbacks. Such secrecy has been

used to prevent government employees from gaining access to their own

medical records which were material to a defense in an ouster action.

It also shields government personnel administrators from criticism

and thereby encourages arbitrary actions.

I learned once of a case in which the secrecy surrounding personnel

files made it impossible for a woman to find out why she had been

discharged by the government. I will refer to the woman as Mrs. A,

for there is no necessity of stirring up more problems for her now if

she has been able to find a job after being out of work for several

years.

Mrs. A was a woman of about fifty with more than twenty years of

service with the Civil Service Commission as a shorthand reporter.

She had had some problems with an employee in the same section

and some disagreement with a supervisor. She was asked to go to

the Department of Health, Education and Welfare for a physical

examination.

Mrs. A took the physical examination and shortly afterwards was

forced to resign. She was given no reason except that something

in the physical examination made her unqualified to continue as a

government employee. Mrs. A went to a private physician and had a

thorough examination to try to find out why she was unqualified to

hold her job with the government. The doctor could find no reason for

her discharge.

At this point Mrs. A hired a lawyer. Neither the doctor nor the

lawyer could obtain access to the records of the physical examination

given to Mrs. A at the Department of Health, Education and Welfare.

The lawyer hired by Mrs. A found himself tilting with a ghost. He

could not find out why his client was discharged, and yet he was

faced with trying to establish proof that whatever was alleged was

not true.

I could not believe the story Mrs. A told when she first came to my

office, but I said I would examine it and see what I could do. It

checked out in every detail. I was informed at the Health, Education

and Welfare Department that the physical records of all government

employees were confidential. There were no exceptions. I pointed

out that this confidential status was set up for the purpose of

protecting the government employees against public intrusion, but

that it certainly couldn’t be meant to keep a government employee

or her private doctor from examining her records. Officials at

the Department of Health, Education and Welfare disagreed. I made

repeated calls to see if I could get the policy changed, but to no

avail.

Mrs. A was a little more distressed each time she came by the

office, for I was unable to interest anyone in her case. She was not

important. She was not the center of a big political drama.

Was it a wrongful discharge? I could not answer the question when it

was raised by lawyers for committees of Congress. It was possible

the file would have shown justifiable grounds for the discharge. I

could only argue that it was wrong to bar this woman, her lawyer,

and her doctor from examination of a file giving the results of her

government health examination.

Despite the inequity in this case and others similar to it, a general

belief prevailed in Washington that secrecy on government personnel

files and loyalty-security files was an unmixed blessing. The fallacy

of this contention was impressed on me every time I saw Mrs. A. She

was defeated in appearance, and she was deeply hurt.

There is a sharp cruelty in secrecy that results in such injury to

an individual, and there is great damage to our government—and to

people’s faith in it—when secrecy is used to cover up mismanagement

and corruption. I am gravely concerned over any obstructions put

in the way of congressional committees’ investigating the abuses

of secrecy. Where would we be if Congress had not looked into

such nefarious schemes as the Teapot Dome scandals of the Harding

administration or the tax “fixes” in the Truman administration?

Have we, a self-governing people, learned anything from these black

marks on our history? I am afraid that we have not learned enough

yet. I am afraid that the people as a whole, and many persons in the

press and Congress, tend to disregard the danger signs and accept the

self-serving declarations of virtue from their Presidents or other

high officials. A few newspapers, a few diligent investigators for

congressional committees, a few senators and a few congressmen have

had to take the whole responsibility for breaking through unjustified

secrecy and uncovering the truth.

In my twenty years as a newspaper correspondent I have been

concerned with this problem of information policies at every level

of government—starting in a local police station, city hall, county

courthouse, and state capitol. For the past eleven years I have

been covering the federal government for the Washington Bureau of

Cowles Publications. I have been fortunate to have the freedom

to follow any investigations that interested me, as well as the

enthusiastic support of several newspapers. My position has afforded

me the privilege of a day-to-day acquaintanceship with every major

investigation in Washington since 1950.

The problem of the Washington cover-up became a major interest to

me in connection with the scandals in the Reconstruction Finance

Corporation (RFC) and the Internal Revenue Service beginning in

1950. The investigations of the RFC were of a reasonably short

duration. The pattern of “political favoritism” in administering this

government loaning agency was ended when W. Stuart Symington, later

a United States Senator, was named by President Truman to restore

order. Symington instituted the “fishbowl policy” that brought most

of the RFC operations out in the open.

The problems with secrecy in the Internal Revenue Service remained

a major news story for more than two years. The Internal Revenue law

provides that it is unlawful to disclose the information on the tax

returns submitted by U.S. taxpayers. It was a secrecy established in

a specific statute, and the purpose was to protect the privacy of the

finances of individual taxpayers. However, investigations by Senator

John J. Williams, the Delaware Republican, and a House subcommittee,

headed by Representative Cecil King, the California Democrat, showed

that the secrecy was used to shield crooked tax agents and tax

collectors from exposure and prosecution.

The Alcohol Tax Unit (ATU), a division of the Internal Revenue

Service, had even set up procedures to provide for secret settlements

of criminal law violations. Also, ATU provided secret hearings on

applications for a federal license to wholesale liquor or beer.

A racketeer found it possible to go into a secret hearing, give

perjured testimony, and obtain a license with the help of weak or

corrupt ATU administrators.

The lesson was clear in each case: secrecy corrupts. It allowed

government officials to dispense favors behind closed doors. When

decisions were secret, there was no need to provide any consistency

in decisions or in penalties. It was impossible for the public or the

press to obtain enough information to register an informed objection.

During fights to open records in the Internal Revenue Service,

I became acquainted with James S. Pope, executive editor of the

Louisville _Courier-Journal_ who was then chairman of the Freedom of

Information Committee of the American Society of Newspaper Editors.

We worked together in forcing the Internal Revenue Service to open

certain “compromise settlements” of tax cases as well as the ATU

hearings.

In exploring these and other information problems, I worked closely

with the late Harold Cross, former special counsel for the American

Society of Newspaper Editors; J. Russell Wiggins, executive editor of

the Washington _Post and Times Herald_; Herbert Brucker, editor of

the Hartford _Courant_; and V. M. (Red) Newton, managing editor of

the Tampa _Tribune_.

We shared a deep suspicion of government secrecy and also resented

what it did in corrupting our system of government. I was privileged

to serve as a member of the national Freedom of Information Committee

of Sigma Delta Chi (the journalism fraternity) and handle the

Washington phase of the reports for Red Newton for a period of more

than five years. For a longer period I have worked with the American

Society of Newspaper Editors’ Freedom of Information Committee. I

have testified before committees of the House and Senate.

My testimony before the Moss subcommittee in November 1955 was the

first testimony on the scope of the problem of “executive privilege”

advanced by the Eisenhower administration. I have kept in touch

continuously with Representative John Moss, the California Democrat,

and the members of his staff from the time their subcommittee was

established. I am particularly indebted to Staff Administrator Sam

Archibald, Staff Consultant Paul Southwick, and staff lawyers John

Mitchell and the late Jacob Scher.

Others who were particularly helpful and co-operative over these

years were the late Senator Thomas Hennings (Dem., Mo.); Charles

Slayman, counsel for the Hennings Judiciary Subcommittee; Senator

John McClellan (Dem., Ark.), and Robert F. Kennedy, who was his

chief counsel; Herbert Maletz, chief counsel for a House Judiciary

Subcommittee; Representative Porter Hardy (Dem., Va.); John Reddan,

chief counsel for the Hardy Government Operations Subcommittee;

Representative F. Edward Hebert (Dem., La.); James Naughton, chief

counsel for the Fountain Government Operations Subcommittee; and John

Courtney, chief counsel for the Hebert Armed Services Subcommittee;

Arthur John Keefe, counsel for the Senate Antitrust and Monopoly

Subcommittee; and Representative George Meader (Rep., Mich.).

The knowledge of the secrecy problem gained by most of these

lawmakers and lawyers has been understandably confined to their

experiences with one or two committees, whereas I have had the

opportunity to become aware of the day-to-day activities of nearly

all the committees. For that reason, and because of my alarm at the

public apathy over government secrecy, I have decided to set the

whole story down in one place. Most of the story is taken from the

official records of congressional committees—the sworn testimony, the

correspondence with government agencies, and the official reports

of Senate and House investigators. As much as possible, I have put

it together in chronological, narrative form so that the reader may

discover, as I did, how the abuse of government secrecy has spread

and just how vast and serious the scope of it has become. At the end

of the book I will make some recommendations that I hope may serve as

a guide to eliminating this serious threat to our democratic form of

government.

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