Video summary
Drew Pearson opens his report by asserting that Washington D.C., despite its grandeur and historical significance built by American forefathers, belongs entirely to the citizenry rather than the politicians who merely occupy it as temporary servants. He emphasizes that while Congress members and Supreme Court justices work for the public and depend on their reactions, they are ultimately human beings prone to error or corruption unless kept in check. Pearson argues that unlike citizens in most other nations, Americans have a unique opportunity to scrutinize their government closely because of its proximity; however, this closeness demands constant vigilance from voters who must remain alert to ensure the servants they elect continue to serve the public interest rather than private agendas.
The core argument presented is that maintaining a good and clean government requires citizens to look beyond simply casting a vote at the polls and instead investigate exactly what money backs those campaigns, as large financial contributions almost always come with an expectation of return favors. Pearson illustrates this dynamic through two specific examples involving major donors: first, the Rockefeller family's strategic splitting of $85,000 in donations across multiple Republican committees to circumvent individual contribution limits, which resulted in their relatives securing high-profile positions such as Ambassador to England and a White House post; second, contributions from liquor executives like those at Seagram Distillers that allegedly led to oil drilling permits being granted within protected wildlife refuges despite previous restrictions. These cases serve as evidence of how significant financial support translates directly into political influence over legislation and appointments.
Pearson further exposes the darker side of campaign finance by detailing a secret check for $5,000 from Superior Oil Company accepted by President Eisenhower's dinner committee during a critical debate on natural gas rates, contrasting it with an earlier rejected offer to a senator that was publicly exposed but led to legal indictment only when refused. He highlights how such transactions often occur in cash or through complex routing via employees and family members to avoid public record, creating a system where big business can effectively buy favorable outcomes ranging from tax breaks and government contracts to specific legislative changes like higher natural gas rates for their products. The transcript concludes with Pearson's urgent call to action for citizens to actively investigate these hidden contributions, report them to authorities if discovered, and demand the election of honest men who will not be swayed by wealth, asserting that true democracy can only survive when voters refuse to loaf on their civic duty and hold their government servants accountable.
Read the full video transcript
Hello everybody. This is Drew Pearson.
Today I want to report to you on what I
think is the biggest story in the
nation. Keeping a watch on the capital
of the United States. Now, you may not
consider it such an important story at
first, but I think it is because this is
your capital.
Your forefathers built it, paid for it,
and it belongs to you. It doesn't belong
to the congressmen who have offices up
there. They come and go. They're elected
and defeated depending on whether you
want them to stay. They work for you.
You pay for them. And if they don't do a
good job, you can get rid of them.
And the Supreme Court judges who work in
this beautiful building across the park
from the capital, they also work for
you. They interpret the laws for you.
The laws which your congressman pass.
They don't only work for you, but in a
very real sense, they depend on you
because even our Supreme Court keeps an
ear to the ground of public reaction.
And of course, the White House, which I
regard as one of the most beautiful
buildings in the world, also belongs to
you. I always get a thrill when I walk
by and look at its stately simplicity.
You could go in that building anytime
you're in Washington any day except
Sunday because it belongs to you. Now, I
don't know of any country except England
and the British dominions where people
can be so close to their government,
such a part of it. And I say this as a
newspaper man who makes it his job to
watch the government and criticize it
when necessary. I think I know what I'm
talking about when I say that on the
whole it's a good government, but the
only way to keep it clean and good is by
watching it. You, the American citizen
and voter, have to be alert. You have to
watch these servants of yours in
Washington because they're only human.
And in a minute, I'll be back to point
out some of the ways you need to watch
them.
Now to have good government, you have to
scrutinize the people you pick for
government, the people you vote for both
before and after election. I think few
other countries in the world these days
outside of Western Europe, the British
Empire, and some Latin American nations
have the free elections that we enjoy.
So it isn't enough for us merely to go
to the polls to vote. We have to know
who and what we're voting for.
Now, one of the big things to watch in
any election is who puts up the money
for a political campaign. Where does it
come from? Does it come from big
business, from labor, from people who
want ambassadorships or from whom? Now,
most people who give large amounts of
money to a political party, whether it
be the Republicans or the Democrats,
want something in return. And it takes a
lot of money to run a national election.
About $23 million was spent at 52. The
Democrats going in the hole, nearly a
million. The Republicans had an easier
time because Eisenhower seems sure to
win. And everyone likes to bet on a
winner. The winner, of course, can hand
out the political plums that the
government controls when the election is
over. So, let's take a look at how it
works. Now, here is one example
involving one of the wealthiest families
in the nation, the Rockefellers. They
gave $85,000
in the to the Republican campaign in 52.
And since it's illegal for one man to
give more than $5,000, here is how they
worked it. Members of the family split
their gifts up. John De and his wife
each gave $3,000 to the Republican
Committee, the Republican Senate
Committee and the United Republican
Committee of New York. That way, each
was able to give $12,000 yet stay inside
the $5,000 limit by dividing up his
campaign contributions. And each member
of the Rockefeller family followed the
same technique. They gave $12,000 a
piece to three different committees.
John D. Third,
Lawrence,
David,
Winthrop, and Nelson. Grand total
$85,000.
Now, what did the Rockefellers get in
return for that $85,000? Two things.
Their cousin and uncle Winthropri became
ambassador to England, the top
diplomatic post that we have. Second,
Nelson Rockefeller became a White House
8. However, in all fairness, I think I
ought to report that Winthra Bal has
done a very good job as ambassador in
London, while Nelson was one of the best
men around Eisenhower. So, in this case,
the American public lost nothing. In
fact, I think they got two pretty good
men.
Now, here is another case, a very
interesting one. One heavy contributor
to all political campaigns, nearly all
of it, has been the big liquor company.
Then in 48, serums distiller split
$50,000 between the Republicans and the
Democrats. Well, in 54, Ellis Slater,
vice president of Sigums, gave $2,500.
His wife gave 3,000 all to the
Republicans. Nelson Slater gave a,000,
while Jay Gould, another serums
executive, gave $2,500. Now, what did
these Serums executives get in return?
They got one of the prized unexplored
oil concessions in the USA. is the lying
wildlife refuge in Louisiana. Here too,
almost no oil drilling has been
permitted in wildlife refues. They're
set aside under an act of Congress for
the preservation of our rapidly
disappearing birds and wild animals. And
in previous administrations, almost no
drilling permits have been given in
these preserves during the entire 50
years of their history. But when General
Frank Schwangle, head of serums, went to
Washington and called on the Secretary
of the Interior, Douglas McKay, his
Frankfurt Oil Company, a wholly owned
serum subsidiary, was given a permit to
drill oil on the Lacazine Wildlife
Refuge, one of the most important bird
refues in the nation.
Well, those are the contributions on the
Republican side. Now, let's take a look
at contributions on the Democratic side.
Most of the big Democratic contributions
of the past have come from labor. Not
many big businessmen seem to contribute
to the Democrats. And after John L.
Lewis contributed $250,000
to Roosevelt's campaign in 36, labor has
been required to earmark any money
collected from union members for
political purposes. In other words,
political money has to be given freely,
separately, kept in a separate account
from regular union dues. Now, these
political labor funds must be open to
public scrutiny and for the most part
have been very carefully spent. But here
is one strange case where a big Ohio
banker Cyrus Eaton contributed $35,000,
believe it or not, to John L. Lewis's
labor's nonpartisan leak. Eaton, one of
the biggest bankers in the Middle West,
wanted to fight against Senator Taff,
but he didn't want to do it publicly.
So, he contributed through John El
Lewis. And here, step by step, is what
he did. He deposited $5,000 in the bank
account of his son, Cyrus Eaton, Jr.
Then he put another 5,000 in the account
of an employee, John A. Cruz. Then 2,500
more in the account of Dorothy Work,
another employee. Then these three gave
their checks to John L. Lewis's Labors
Nonpartisan League. On top of this, five
other employees of Otis Company, Eaton's
Banking Firm, contributed to John L.
Louis's group. So the total amount from
Cyrus Eaton directly or indirectly was
$35,000.
That was one of the few times that I've
ever been able to far it out when a
banker contributed to a powerful labor
leader. Now here are more hidden
contributions.
Contributions that influence the type of
man you send to Washington. In the files
of the Senate committee that's
investigating lobbying is a secret
check, one of the most important in
Washington. It's never been made public.
and the senators don't know exactly what
to do with it. It's so hot it's almost
burning a hole in their files.
However, I've been able to obtain a
photoat of this check. Here it is. Don't
ask me how I got it. But this check is
the real reason why President Eisenhower
vetoed the natural gas bill. Also very
important, it illustrates the evil of
big campaign funds. the fact that when a
big businessman gives big money to
either political party, he expects to
get something in return. This check is
from HB Kek of the Superior Oil Company.
The same KEK and the same Superior Oil
that offered $2,500 to Senator Casease
of South Dakota to influence his vote on
the natural gas bill. Senator Case
turned the $2,500 down, but this check
for twice that amount was accepted by
the Eisenhower dinner committee on
January 10, 1956, right in the middle of
the Senate gas debate. Senator Casease
refused his $2,500 and exposed the whole
matter in the Senate. But this check for
5,000 from the same man, HBK, National
City Bank of Houston, was accepted at
exactly the same time during the gas
debate. And nobody has said a single
word about it. Superior Oil was indicted
for offering the $2,500 to Senator Case,
but nobody has been indicted for either
offering or accepting
the $5,000 retained for the Eisenhower
dinner committee. In fact, they haven't
even made this check public.
Well, that illustrates how important it
is that you watch campaign
contributions.
The man who gives my big money usually
wants something big in return. Whether
it be legislation for higher rates on
natural gas or lower taxes or an
ambassadorship or a big government
contract or an oil drilling permit in a
wildlife refuge.
I'll be back in just a minute.
You know, of course, that campaign
contributions are supposed to be
registered for public inspection with
the clerk of the House and the Senate,
but this is not always done. A great
many contributions are given in cash and
given secretly. It's a hard job to ferth
them out. But in my long experience in
watching your government, I'm convinced
that big money can be one of the worst
influences for corruption, for
favoritism, and for bad government. So
if you learn of any secret
contributions, write me or write the
Justice Department. Remember, this is
your government. It's your capital. It
belongs to you. And you can't loaf on
the job of being a citizen. If you want
lower taxes, if you want more efficient
government, you have to watch your
government servants. And especially, you
have to elect good men to be those
servants. That is the real key to making
democracy live.
Heat. Heat.