The quote stated that Nelson Rockefeller arranged for the purchase of the Welch Candy company at an inflated price so that the startup of JBS could be funded. According to Moody's Manual, two of [Nabisco's] directors were Roy E. Tomlinson and Don. G. Mitchell. [Both are] members of the Council on Foreign Relations. Further, they are a pair of Rockefeller's "professional directors. Does anyone here really believe that these directors would act on their own, without Nelson Rockefellers direction on a matter such as the acquisition of a company. The Welch brothers were given $10,800,000, when it is reported that the business was worth approximately $200,000.
Understandably, Interested Participant does not provide ANY substantiation for his assertions.
For example: WHOM "
reported" that the James O. Welch Company was only worth $200,000?
Be specific. And how did IP verify that "report"?
IP also states that the "
Welch brothers were given $10,800,000". A total lie.
The company was owned by
James O. Welch. Robert Welch did not even own any stock in the company.
Robert was employed by his brother but James asked Robert to terminate his relationship with the company because he (James) did not want negative publicity regarding Robert's political views to be associated with the candy company. Robert agreed. He resigned.
IP also repeats the claim by Eustace Mullins that
"Nelson Rockefeller arranged for the purchase of the Welch Candy company at an inflated price so that the startup of JBS could be funded."
There are four immediate problems with Mullins' (and IP's) claims about an alleged JBS-Rockefeller connection and about Revilo Oliver being the source for Mullins' contentions:
1. Mullins' time-line doesn't make any sense (see details below)
2. There are
absolutely no documents, memos, reports, transcripts, correspondence, etc. to support the assertions made by Mullins
Oliver lived in Urbana, IL. He
sometimes participated in JBS National Council meetings held at various locations around the country but there is
no evidence that he had access to the type of factual data about JBS financial matters that Mullins claims Oliver was privy to.
Most significantly, Revilo Oliver's 1981 memoir, The Education of A Conservative, does NOT mention any Rockefeller connection to the founding or "startup" of the JBS.
3. Mullins gets so many basic factual details wrong, it really calls into question his veracity.
4. JBS President John McManus presents some information (copied below) which helps explain what may have motivated Mullins.
FACTS:
1. Robert Welch worked 22 years for the "James O. Welch Company" not the "Welch Candy Company" as Mullins writes.
2. Robert's brother's name was JAMES – not (as Mullins claims) "John"
3. Robert Welch did NOT own the candy company. In fact, he did not even own any stock in it.
4. In 1957, James and Robert had a conversation about Robert's political activities. James did not want his candy company associated with Robert's political views and activities. Robert agreed to retire from the company. James also gave interviews in which he explicitly stated that he disagreed with his brother's beliefs and did not want his company associated with those beliefs.
5. The Birch Society was founded (on paper) in December 1958. Its first chapters were formed circa February 1959. However, the sale of the "James O. Welch Company" to the Nabisco Biscuit Company was announced in
June 1963 and completed in
October 1963 so why does Mullins claim that the sale of the candy company financed the creation or "
startup" of the JBS??
For details concerning the sale, see
New York Times article,
"Nabisco Enters The Candy Business" in the 10/1/63 issue of the Times. The article mentions that the company was acquired in exchange for 200,000 shares of Nabisco's common stock, then valued at $10,800,000.
Annual sales of the James O. Welch company at that time were
$20 million. Consider the relevance of this with respect to Mullins' assertion that the company was sold "at a highly inflated price" or IP's absurdity that the company was only worth $200,000!
Mullins never explained the basis for his accusation and
he certainly had no personal knowledge or expertise within the candy industry upon which he could base an informed judgment.
WHY WOULD WELCH NEED FUNDS FROM ROCKEFELLER?
6. Significantly, JBS financial statements prior to the sale of the James O. Welch Company in October 1963 reveal that the JBS had very substantial income and
major increases in its income (
50%-100% increases per year!) from member dues, contributions, and sale of publications, speech fees, National Council dinners, etc).
So why would Rockefeller money be necessary?
In addition, the JBS received significant sums from bequests of deceased persons such as D.B. Lewis (Dr. Ross Pet Foods) who bequeathed a million dollars to the JBS.
Some specifics from annual JBS financial reports submitted to Commonwealth of Massachusetts:
1959 income (first year of operation) = $129,844
1960 income = $198,719
1961 income = $595,000
1962 income = $826,100
1963 income = $1.6 million
1964 income = $3.2 million
1965 income = $4.0 million
1967 income = $4.2 million
The doubling of income between 1963 and 1964 is attributable to the 1964 election campaign and the concurrent dramatic growth of JBS membership.
In February 1964, Welch wrote to Westbrook Pegler that the JBS had:
• 150 employees
• a $22,000 weekly payroll
• a $12,000 weekly printing bill
In December 1965, the JBS had:
• approx 240 employees
• $35,000 weekly payroll
• $60,000 weekly printing bill
7. In addition, many JBS members and supporters (including JBS National Council members) were persons of very substantial means---including several millionaires.
Furthermore, Welch had numerous connections all over the country in business circles (NAM folks) so he surely had ready access to whatever funds he required without relying upon any alleged Rockefeller ploys.
8. JBS President (and former Director of Public Relations), John McManus has responded to numerous inquiries over the years concerning various statements made by Mullins.
Here are some noteworthy excerpts.
"RW" refers to Robert Welch:
"The only correct item in the Mullins interview is his mention of Revilo Oliver as one of the JBS Founders…Oliver was heavily involved in JBS (writing regularly for American Opinion magazine) until July 1966 when a speech he gave at the New England Rally for God, Family and Country disturbed RW to the degree that he traveled to Illinois to sit down with Oliver and discuss it. Oliver refused to let him in his home, told RW he wanted nothing more to do with JBS, and started a campaign to besmirch the Society. I never saw any evidence that Oliver was responsible for the Mullins' charges about Rockefeller although it's possible that he started that nonsense. The truth is completely opposite. Nelson Rockefeller had no part in the JBS - ever! RW separated himself from the Welch Candy Company before he started JBS because he expected retaliation and didn't want what he was about to do reflect negatively on the company. The sale of the company to Nabisco in 1963 was engineered by James O. Welch, RW's younger brother. ... There was no JBS bank account at Chase Manhattan - ever. "
In answer to inquiries concerning (a) whom might be the "second" person who attended the December 1958 founding meeting of the JBS that Mullins claims was his source, and another unrelated claim made by Mullins that his writings had been cited as a reliable source by Gary Allen in the first editions of
None Dare Call It Conspiracy, but later editions expunged those comments at the direction of the JBS, McManus replied:
"I have no idea who the second Council member might be. What I suspect is that Mullins made this up just as he created a lot of other supposed facts."
"After I sent the most recent message to you, I recalled being approached by Mullins who hoped that we might help to market his books. This was long after he had published the claims about Rockefeller being the JBS patron. The response to him was simple: `Why would you want an organization that you believe is part of the Conspiracy's subversion to market your books? `
"I also recall meeting the man who financed the Mullins book on the Federal Reserve. He told me that he was very angry about having spent money for such a poor piece of work."
“Regarding None Dare Call It Conspiracy, I read the manuscript before it was published. Then, I read the book after it was published. There was never any mention of Eustace Mullins in either… It is simply amazing to have to refute such nonsense as has reached you. But I appreciate your wilingness to ask us for clarification. - John F. McManus."
And McManus also wrote in another communication:
"
I'm pleased that you checked with us before responding to the inquiry you received. We wish others would do likewise when questions arise about our policies, statements, etc. There have always been several reasons why our American Opinion Bookstores were asked not to stock the works of some persons and organizations. One was their anti-Semitic content. Others included faulty research, unproven claims, nastiness toward JBS, racism, etc. [Mullins] works were placed in the `not recommended' category because they were deemed unreliable. After that decision was made, and probably in retaliation, Mullins issued a book entitled Murder By Injection in which he devoted several pages to making the most outrageous and ridiculous charges about our Society and Founder (Robert Welch) that have ever been made. We have frequently had to respond to his absurdities."
In
February 1966, Donald Gray, (the Birch Society's Wholesale Book Division Business Manager) sent a memo to all American Opinion Bookstores. The purpose of the memo was to identify the type of material that should NOT be sold in, or recommended by, JBS bookstores.
Gray described such verboten material as:
"...most of the books and pamphlets with an anti-Semitic flavor which we omit from our booklist (that) are not of sufficient value in substance or scholarship to rise above the level of anti-Semitic invective or propaganda. Frankly, in our opinion, this applies to most of the books or pamphlets by Marilyn Allen, Richard Cotten, Myron Fagan, Kenneth Goff, Wickliffe Vennard, Eustace Mullins, Gerald L.K. Smith, Robert H. Williams, and Benjamin Freedman." [
my emphasis in bold type.]