Process
Status Items Highlights Done See section below Claims None Questions None Output None
Highlights
Time 0:07:56
Powell Memo Task Force
- After the Powell memo was leaked, previously unknown gatherings focused on it took place.
- The first big meeting of a group called the Task Force on the Powell Memorandum occurred in March 1973.
- The U.S. Chamber of Commerce’s Public Affairs Committee organized a three-day conference at Disney World’s Polynesian Hotel.
- The existence of a Powell memo task force is revealed. Transcript: Speaker 2 And a lot of names keep showing up. So for the purpose of this episode, I want to hone in on three previously unknown gatherings that were specifically focused on the Powell Memo. We’re gonna go from Florida to Dallas and then to DC. Speaker 1 Okay, so let’s start in a place where everything seems to break bad. Florida. Speaker 3 More than just a place. It is a complete vacation destination where guests may stay as long as they like. At the Polynesian village, there is a leisurely atmosphere of the South Seas and trade winds. Speaker 2 Orlando, March 1973. The U.S. Chamber of Commerce’s Public Affairs Committee organized a three-day conference at Disney World’s Polynesian Hotel. And it was the first big meeting of a group called the Task Force on the Powell Memorandum. Speaker 1 Come on, man. There
Time 0:08:43
Powell Memo Task Force Meeting
- In March 1973, the U.S. Chamber of Commerce’s Public Affairs Committee organized a conference at Disney World’s Polynesian Hotel.
- It was the first big meeting of the Task Force on the Powell Memorandum.
- William G. White, the top lobbyist for United States Steel, chaired the task force.
- Members included executives from CBS, Amway, Phillips Petroleum, JC Penney, 3M, the American Medical Association, and General Motors.
- Attendees were greeted at a reception aboard the Eastern Winds, and the corporate guys got down to business in the Micronesian conference room while their families enjoyed the Polynesian Hotel.
- One session was called Interpreting Business, on how to enhance the image of business and sway public opinion through economic education, which was a big theme of the Powell Memo. Transcript: Speaker 2 And it was the first big meeting of a group called the Task Force on the Powell Memorandum. Speaker 1 Come on, man. There was actually a Powell memo task force, and they met at the Polynesian Resort in Disney World like for real. For real, for real. For real. Speaker 3 The great ceremonial house dominates the scene in a setting that is lushly tropical. And for each guest, there is a feeling of coming to a tiny island in the South Pacific to stay and play. Speaker 1 I’m imagining newly planted palm trees and white sand beaches. The tiki torches are burning. The Cinderella Castle is off in the distance. The super-futuristic monorail is gliding along an elevated track, and in the middle of all this magic and joy, you’re telling me there are a bunch of stuffy white dudes in wide lapel 70s suits wandering around the lobby of this new hotel? And imagine that everyone is clutching their copies of the Powell Memorandum. Speaker 2 So how did this happen? Well, the main coordinator behind this gathering was a guy named William G. White. He was the top lobbyist in Washington for United States Steel, one of the biggest steel producers in the world. He was also picked to serve as chairman of this newly created Powell Memo Task Force. We’ll talk more about white in a minute, but first I want you to check this out. It’s a roster of other task force members. Speaker 1 Okay, let’s see there’s I’m looking here there. Okay, there’s Richard Jenks, president of CBS. There’s J Van Andel who co-founded Amway with the notorious Richard DeVos. Let’s see, there’s top brass from Phillips Petroleum. I also see a bunch of executives here from JC Penney, 3M, the American Medical Association, General Motors, deans from a couple universities. This is a meeting of the Chamber of Commerce, but not like your local Chamber of Commerce. This isn’t a gathering of mom and pop shops from Main Street America. This is like the elite of the elite, the masters of the corporate and political world, hanging out at Disney World. Speaker 2 It really is a small world, David. And you’ve got to read this too. Here’s a copy of the actual agenda. Speaker 1 So it looks like attendees were first greeted at a reception aboard the Eastern Winds, an authentic Chinese junk ship that apparently doubled as a floating cocktail lounge. As their spouses and families took in a hula performance or hit the water slides, the corporate guys got down to business in the Micronesian conference room. One session was called Interpreting Business, a think tank session on how to quote, enhance the image of business. They also exchanged ideas for how to sway public opinion through quote, economic education. Speaker 2 Which was a big theme of the Powell Memo. Speaker 1 Okay, so then there’s a
Time 0:12:20
Powell Memo Task Force
- William White, a U.S. Steel lobbyist, organized a meeting focused on the Powell Memo’s recommendations to increase political effectiveness.
- Attendees discussed enhancing the image of business and swaying public opinion through economic education.
- White picked up Gerald Ford, then a congressman on his way to becoming Vice President and later President, from the Orlando airport.
- Ford attended the conference, ostensibly for a work-related junket, to collaborate with the Powell Memo Task Force. Transcript: Speaker 2 These were guys that brought together lobbying, legislative know-how, legal pressure, and media skills all in service of growing a client’s political influence. And the lobbyists know the truth. Speaker 1 The easiest way to pull strings in Washington is to control politicians with campaign money. And here’s where it gets really interesting. Speaker 2 Midway through the conference, White left the Polynesian Hotel and jumped in his car. Speaker 1 I bet it was something like a wood paneled Buick. And jumped in his proverbial wood paneled Buick. Speaker 2 And headed to the Orlando airport for an important pickup. Speaker 1 He wasn’t picking up bags of dirty cash like in episode two. White was there to give a lift to his longtime friends Jerry and Betty. Jerry was once an obscure Republican congressman from Michigan, but at this point he was on a glide path to something much bigger. Speaker 3 Gerald R. Ford do solemnly swear that I will faithfully execute the office of President of the United States. Speaker 1 Yes, that Jerry. Gerald Ford, who is still in Congress, but later that year will become Vice President, and soon after that, President. Officially, Congressman Jerry came to Florida to take part in another work-related junket on the invitation of William White. A junket, paid for by US Steel, of course. But instead of heading to a golf course, Gerald Ford was going to the happiest place on earth to schmooze and collaborate with the Powell Memo Task Force.
Time 0:13:37
Powell Memo Task Force at Disney World
- Gerald Ford attended a Powell Memo Task Force meeting at Disney World while still a congressman.
- The meeting, funded by US Steel, focused on strategizing for upcoming congressional elections and addressing legislation problematic to the master plan, specifically the Federal Election Campaign Act (FICA).
- The task force aimed to circumvent FICA’s restrictions on corporate-funded PACs, seeking exemptions to allow large corporations to contribute heavily to political campaigns.
- One attendee detailed their lobbying efforts to amend regulations around corporate campaign donations, aiming to encourage other companies to follow their fundraising model.
- They discussed opposing forces like Common Cause and Senator William Proxmire, even joking about harming Proxmire to stop his filibuster against their efforts. Transcript: Speaker 1 A junket, paid for by US Steel, of course. But instead of heading to a golf course, Gerald Ford was going to the happiest place on earth to schmooze and collaborate with the Powell Memo Task Force. According to the conference schedule, the Honorable Gerald R. Ford was the official speaker at the luncheon on Friday. But there may have been an ulterior motive for his participation in that day’s session. Strategizing about the upcoming congressional elections and about how to deal with legislation that was problematic for the master plan. The Federal Election Campaign Act. Speaker 2 FICA. So remember back in episode two, we told you that Ford signed the amendments seeming to make FICA even stronger when he became president. So this is right before that when they are discussing those amendments. Speaker 1 When Ford did sign those amendments, it was seen as a big win for the reformers, not the master planners there at Disney World. Speaker 2 And for the most part, FICA was a win for common cause and the reformers. But the master planners were desperate to get around FICA’s restrictions on corporate-funded political action committees that funnel money to politicians and political parties. This Powell memo meeting at Disney World was where they perfected their plan. I got a letter for you to read, David. This was written by one of the attendees a week before he went to Disney World on behalf of his boss, John Merrill Olin. Olin, the wealthy industrialist. We’ll talk more about him later. In this letter, the executive writes about the Powell memo task force in intimate detail, especially their lobbying effort to amend the regulations around corporate campaign donations. He wrote, quote, we should be able to get many companies to follow our own pattern of political fundraising. Speaker 1 He’s talking about political action committees, PACs, and without getting too far into the weeds, the corporate guys at this Orlando meeting wanted an exemption to an older law that Was standing in the way of huge multinationals like the Olin Corporation from dumping money into corporate packs. The effort was being opposed by common cause and a senator from Wisconsin named William Proxmire who was threatening to filibuster.
Time 0:16:24
Corruption Loophole
- At Disney World’s Polynesian Hotel, master planners schemed to eliminate restrictions on corporate PACs while engaging with Gerald Ford, then House minority leader.
- A provision removing these restrictions was included in the FICA reform bill that Gerald Ford dealt with and later signed into law as president.
- Under the guise of post-Watergate campaign finance reform, they created their first corruption loophole.
- The law led to an immediate surge in campaign spending by corporate America. Transcript: Speaker 1 So let’s review. While drinking Mai Ties at Disney World’s Polynesian Hotel, the master planners are specifically scheming to end restrictions on corporate PACs and they’re schmoozing directly With Gerald Ford, the then House minority leader on his way to becoming president. Speaker 2 And then guess what? A provision killing those restrictions ended up in the FICO reform bill that Gerald Ford first dealt with in Congress and then later signed into law as president. Wow. Speaker 1 What a shocking coincidence. Remember what Ford said in episode two when he signed the bill into law? Speaker 3 All the compromises that were necessary in the process. Speaker 1 I guess now we know where some of those compromises came from. So under the guise of post-Watergate campaign finance reform legislation, the master planners from this Powell memo meeting up creating their first corruption loophole.
Time 0:21:51
Powell Memo’s Underground Popularity
- After the Powell memo went public in 1972, the Chamber of Commerce quickly published and widely distributed it.
- They mailed thousands of copies to members and featured it in their official magazine with an elaborate design.
- The memo was considered an underground bestseller, with hundreds of thousands of copies circulated, reaching millions of Americans.
- In early 1973, activity around the memo intensified, leading to events like the Powell Memo Conference and a rival event in Dallas organized by the Young Presidents Organization (YPO). Transcript: Speaker 2 They mailed thousands of copies to members. They printed it in their official magazine with an elaborate design treatment like it was some mysterious quasi-religious text that must be read. Speaker 1 It really was kind of like the conservative movement’s version of the anarchists’ cookbook. It was kind of like contraband, a publication that everyone had heard about but wasn’t on the newsstand. Speaker 2 And even though the Powell memo was never an officially published book, according to the chamber’s estimates, hundreds of thousands of copies of it were circulated, reaching millions Of Americans and sparking numerous discussions and speeches and articles. It was an underground bestseller. Speaker 1 And by early 1973, activity around the memo was intense. Speaker 2 So intense, in fact, that at the same time Gerald Ford was at Disney World delivering his keynote address to the Powell Memo Conference, it turns out there was another event, a rival Event, about the Powell Memo that was happening at the Marriott Hotel in Dallas, Texas. At the same time? The same exact day. March 30th, 1973. I want to show you this. These are notes taken by a man named John A. Howard. Howard came from the world of academia and he was the president of Rockford College in Illinois. He was an influential figure in the emerging conservative movement at the time. Speaker 1 This Dallas meeting looks like it was organized by members of something called the YPO. Speaker 2 The Young Presidents Organization. It was a social club for executives and owners of smaller businesses and it’s still around today. In early 1973, the YPO orchestrated a series of gatherings, Powell Memo parties, if you will, for members who wanted to fight the fight.
Time 0:24:07
Corporations Leverage Media Power
- Businessmen at the Dallas YPO meeting considered how corporations could use their advertising power to influence news coverage.
- John Howard was impressed by Roger Ailes, a young TV producer who helped Nixon get elected.
- Howard viewed Ailes as a ‘potential secret weapon’ for the Chamber of Commerce.
- Ailes presented on how advertisers could exert power over TV programming.
- He emphasized the need for chamber members to understand how to apply leverage. Transcript: Speaker 1 So at this Dallas meeting, the assembled businessmen start asking, why couldn’t corporations leverage their power as advertisers to shape the news coverage from media outlets they Sponsor? Speaker 2 And on this topic, Howard impressed by a young TV producer who had helped Richard Nixon get elected. He noted quote, this man appears to be a potential secret weapon and the chamber would be wise to enlist him as a consultant. And that young man’s name was… Speaker 1 Hang on, hang on, don’t say the name yet. Can we get some more ominous music here? Speaker 2 Okay, there we go. Okay, go ahead. That young man’s name was Roger Ailes. Speaker 3 I don’t believe anyone will ever be elected to a major public office again without the skillful use of television. Speaker 2 Roger Ailes. Roger Ailes. Roger Ailes. Wait, wait, like THE Roger Ailes? Yep, Roger Ailes, the founder and former of Fox News. Here’s what John Howard wrote about Ailes’ presentation. And, um, David, you should read this part. Speaker 1 Okay, let me take a look. Quote, Roger Ailes outlined the power which advertisers would be able to exert upon TV programming if they were moved to do so. The chamber members not only
Time 0:28:04
Powell Memo’s Spread
- The Powell memo spread organically, not through newsstands, but via direct mail from the Chamber of Commerce to its members.
- Wealthy industrialist John Olin loved the memo and invested millions in conservative think tanks and media organizations, becoming a key backer of the Federalist Society.
- The Powell memo also reached Charles and David Koch, who became major financiers of conservative politics, with Charles finding inspiration in it. Transcript: Speaker 2 Then the memo arrives at the mansion of wealthy industrialist John Olin, who inherited his fortune from his family’s chemical immunitions empire in the 1930s. Speaker 1 So Olin is like, oh my god, this guy Lewis Powell, this guy is saying everything that I’ve been thinking. Speaker 2 Olin would go on to dump hundreds of millions of dollars into conservative think tanks, media organizations, and become a main backer of a conservative legal group called the Federalist Society. Speaker 1 We’ll talk about the Federalist Society in depth later in this series. Speaker 2 Then the Powell memo shows up in Wichita, Kansas at the estate of Charles and David Koch. Speaker 1 The Koch brothers. Speaker 2 I don’t even think we need to explain the impact of
Time 0:38:51
Powell Memo Task Force Progress
- William White, head of the U.S. Steel lobby, reported on the progress of the Powell memo’s implementation.
- The task force successfully lobbied Congress to amend election laws, enabling corporate PAC spending.
- The Chamber of Commerce participated in 13 cases, influencing issues like unemployment benefits for striking workers and chemical discharge guidelines.
- White emphasized the importance of judicial actions, expecting them to be productive.
- The chamber initiated educational programs to promote understanding of the private enterprise system among youth and educators. Transcript: Speaker 1 Quite well, it seems. The room goes dark, and a beam of light from a slide projector shines onto the screen. White explains how the task force’s lobbying helped convince Congress to amend the new election laws to allow for corporate PAC spending, just as they had planned back at Disney World. Speaker 3 Congress has enacted most of the reforms we sought, and notably, we helped to stave off that drive for public financing of congressional races. Speaker 1 Now, White moves on to the next issue, judicial action. You may recall that the Powell memo recommended mimicking Ralph Nader’s focus on the courts, filing lawsuits designed to get specific policy outcomes and amicus briefs pressuring Judges to deliver specific rulings. Speaker 3 Since expanding the program, the chamber has participated, or is in the process of doing so, in 13 cases. Speaker 1 White brags that the chamber has participated in cases over things like whether unemployment benefits should be paid to striking workers, or changing the guidelines for how chemicals Can be discharged into waterways. Speaker 3 We have been successful in gaining our point of view in important instances and we expect these judicial actions to be one of the most far-reaching and productive elements resulting From task force recommendations. Speaker 1 White says the chamber
Time 0:39:24
Chamber of Commerce’s Actions
- The Chamber of Commerce, influenced by the Powell memo, expanded its program to participate in 13 cases, including disputes over unemployment benefits for striking workers and chemical discharge guidelines.
- They aimed to gain influence in judicial decisions through these actions.
- The Chamber also implemented educational programs, symposiums, and conferences to foster a better understanding of the private enterprise system among youth and educators.
- They provided lesson plans and audio-visual materials, including slide presentations about profits and productivity, to teachers.
- Their media outreach included columns, public service spots, and monthly cable television features reaching millions of viewers. Transcript: Speaker 1 White moves on to the next issue, judicial action. You may recall that the Powell memo recommended mimicking Ralph Nader’s focus on the courts, filing lawsuits designed to get specific policy outcomes and amicus briefs pressuring Judges to deliver specific rulings. Speaker 3 Since expanding the program, the chamber has participated, or is in the process of doing so, in 13 cases. Speaker 1 White brags that the chamber has participated in cases over things like whether unemployment benefits should be paid to striking workers, or changing the guidelines for how chemicals Can be discharged into waterways. Speaker 3 We have been successful in gaining our point of view in important instances and we expect these judicial actions to be one of the most far-reaching and productive elements resulting From task force recommendations. Speaker 1 White says the chamber has educational programs, symposiums and conferences going on nationwide. Speaker 3 To create a rapport and a better understanding of our private enterprise system among youth and educators. They’re giving lesson plans to teachers. A new package of audio visual materials to increase economic understanding that includes slide presentations about profits and productivity. Our profits kit is a best seller. Speaker 1 White mentions a pilot television program with the Texas Council on Economic Education. Speaker 3 Entitled, everybody knows what profit is. The entire series may run to 30 films with a budget of $5 million. Speaker 1 Sounds like must-see TV. Speaker 3 Their media outreach effort is massive, now including a weekly column to more than 500 press and 300 radio and television outlets,