Tax-exempt Foundations were originally setup for humanitarian purposes to
provide grants to existing institutions. Rene A. Wormser served as General
Counsel to the Reece Committee, which was a congressional committee that
investigated the Tax-exempt Foundations from 1953 to 1955. His book, Foundations: Their Power and Influence, is a documented
expose of his experience with the committee. In it he wrote, "Foundations were
originally created to support existing institutions and to undertake certain
'operating' functions."
Soon after (or possibly from their inception) foundations became a loop hole
that the financial elite used to avoid taxes. "By the time the income tax became
law in 1913, the Rockefeller and Carnegie foundations were already operating.
Income tax didn't soak the rich, it soaked the middle class," wrote Perloff.
"Because it was a graduated tax, it tended to prevent anyone from rising into
affluence. Thus it acted to consolidate the wealth of the entrenched interests,
and protect them from new competition."
Smoot pointed out that the primary purpose of some of the large Tax-exempt
Foundations is no longer humanitarian in nature, but "predominately tax
avoidance." "One of the leading devices by which the wealthy dodge taxes"
concurred Perloff "is the channeling of their fortunes into tax-free
foundations." He also charged that, "The major foundations, though commonly
regarded as charitable institutions, often use their grant-making powers to
advance the interests of their founders."
The "independent, uncontrolled financial power often enables foundations to
exert a decisive influence on public affairs," wrote Wormser. He further
testified that, "They have a power comparable to political patronage." He
cautioned "When they do harm, it can be immense harm--there is virtually no
counterforce to oppose them."
What other projects do they fund? According to the findings of congressional
investigations, the foundations have been known to fund political movements in a
direction inclined to favor a socialistic, one-world government. Individual
foundations have also been known to merge themselves in a "cartel-like" fashion
to fund their political projects, which tends "to endanger the freedom of our
intellectual and public life," warned Wormser. Wormser referred to this merging
as the Tax-exempt Complex.
The first glimpse into foundation influence came under the Congressional Act
of August 23, 1912, when the Commission on Industrial Relations studied labor
conditions and the treatment of workers by the major U.S. industrial firms. They
eventually examined the foundations, which were interlocked with them. "Starting
with a study of labor exploitation, it [the Commission on Industrial Relations]
went on to investigate concentrations of economic power, interlocking
directorates, and the role of the then relatively new large charitable
foundations (especially of Carnegie and Rockefeller) as instruments of power
concentration," wrote Wormser.
During the commission hearings, future Supreme Court Justice Louis D.
Brandeis testified on January 23, 1915, that he was seriously concerned about
the emerging danger of such a concentration of power. He said, "When a great
financial power has developed ... which can successfully summon forces from all
parts of the country ... to carry out what they deem to be their business
principle ... [there] develops within the State a state so powerful that the
ordinary social and industrial forces existing are insufficient to cope with
it."
"Control is being extended largely through the creation of enormous privately
managed funds for indefinite purposes, hereinafter designated 'foundations'"
declared Mr. Basil M. Manly, director of research for the commission. The
commission's report concluded that, "As regards the 'foundations' created for
unlimited general purposes and endowed with enormous resources, their ultimate
possibilities are so grave a menace ... [that] it would be desirable to
recommend their abolition."
Congress has declared that these foundations, which can be used to fund anything, should be eliminated because they are potentially
destructive to the republic. According to Rene Wormser, even though these
congressional findings occurred in 1915, the time period is irrelevant--they are
still quite important. He stated, "Under totally different economic and social
conditions, the findings of 1915 are still significant."
The second investigation into the Tax-exempt Foundations came from the Cox
Committee which lasted from 1952 until 1953. Again, fears of subversive
political objectives funded by these multi-billion-dollar organizations (acting
in concert) were eminent.
On August 1, 1951, a motivated Congressman E. E. Cox (Democrat) of Georgia
introduced a resolution in the House of Representatives to conduct a thorough
investigation into the foundations. He asserted, "There are disquieting
evidences that at least a few of the foundations have permitted themselves to be
infiltrated by men and women who are disloyal to our American way of life. They
should be investigated and exposed to the pitiless light of publicity..."
The Cox resolution to investigate the foundations was passed in 1952.
Unfortunately, Congressman Cox died during the investigation. The commission met
the same fate as the one before it. No actions were taken to prevent the
expansion of these foundations, or provide means for future accountability to
the public. And as Smoot described it, "the final report of his [Cox] committee
(filed January 1, 1953) was a pathetic whitewash of the whole subject."
However, it did still yield some important facts. Part of the final report on
January 1, 1953 said some foundations "supported persons, organizations, and
projects which, if not subversive in the extreme sense of the word, tend to
weaken or discredit [our] system as it exists in the United States and to favor
Marxist socialism." Or in other words, they were found to promote Communism.
The third attempt to investigate the foundations lasted from 1953 to 1955,
during the Reece Committee hearings. Smoot wrote, "On April 23, 1953, the late
Congressman Carroll Reece, (Republican, Tennessee) introduced a resolution
proposing a committee to carry on the 'unfinished business' of the defunct Cox
Committee. The new committee to investigate tax-exempt foundations ... was
approved by Congress on July 27, 1953." Author Perloff added, "For what was
probably the ... last time, the CFR came under official scrutiny."
Other organizations which came under investigation included, The American
Council of Learned Societies, The National Research Council, the Social Science
Research Council, the American Council on Education, the National Education
Association, the League for Industrial Democracy, the Progressive Education
Association, the American Historical Association, the John Dewey Society, and
the Anti-Defamation League.
During the investigation, Norman Dodd, Director of Research for the Reece
Committee, was invited to the headquarters of the Ford Foundation by its
president, H. Rowan Gaither. Gaither, a member of the CFR, revealed that the
Ford Foundation was operating under directives from the White House to use their
grant-making power to "make every effort to ... alter life in the United States
... to make possible a comfortable merger with the Soviet Union." Apparently Mr.
Dodd was put under surveillance, stalked, and experienced character
assassination.
The committee was attacked viciously and resulted in a whitewash. Recognizing
another unsuccessful attempt to scrutinize the interlocks, Smoot said, "It went
out of existence on January 3, 1955, having proven, mainly, that the mammoth
tax-exempt foundations have such power in the White House, in Congress, and in
the press that they are quite beyond the reach of a mere committee of the
Congress of the United States."
But the committee did yield some helpful information. It found that the
Tax-exempt Foundations, their intermediaries and interlocks have "exercised a
strong effect" on "public education," which "has been accomplished by [using]
vast propaganda, by supplying executives and advisors to government and by
controlling much research in this area through the power of the purse." And
that, "The net result of these combined efforts has been to promote a 'world
government.'"
Quoting from the final report of the committee, Perloff wrote, "The report
... observed that major foundations have actively supported attacks upon our
social and government system and financed the promotion of socialism and
collectivist ideas." The Committee declared that the CFR was "in essence an
agency of the United States Government" and that its "productions are not
objective but are directed overwhelmingly at promoting the globalist
concept."
"The Reece Committee ... proved with an overwhelming amount of evidence that
the various Rockefeller and Carnegie foundations have been promoting socialism
since their inception," agreed Allen. The Reece Committee hearings also revealed
that individual Tax-exempt Foundations often act in concert with each other in
order to amplify the enactment of their goals.
Congressman Reece made a final report on Tax-exempt Foundations, which was
published by the government printing office on December 16, 1954. He said that
there was clearly an interlock between The Carnegie Endowment for International
Peace, and some of its associate organizations, such as the Council on Foreign
Relations and other foundations, with the State Department. And that, "[the]
foundations and organizations would not dream of denying this interlock. They
proudly note it in reports."
Reece details the infiltration into the government, stating, "They
[CFR/foundation interlock] have undertaken vital research projects for the
[State] Department ... [and have] fed a constant stream of personnel into the
State Department trained by themselves or under programs which they have
financed."
Finally Reece concluded that "the Rockefeller Foundation, The Carnegie
Corporation of New York, and the Carnegie Endowment for International Peace,
[are] using their enormous public funds to finance a one-sided approach to
foreign policy and to promote it actively ... by propaganda, and in the
Government through infiltration. The power to do this comes out of the power of
the vast funds employed."
The report clearly states that the CFR with interlocked foundations have
infiltrated the government. And that they use enormous sums of money to
propagandize "educate" the public in support of the policies which they decide
we should adopt. What congress has told us is that the government has been
infiltrated by the CFR using multi-billion-dollar private bank accounts known as
Tax-exempt Foundations.
This means that when a major U.S. policy is filtered down from the federal
government, into the local and state governments, that it may originate from the
CFR/foundation interlock. Specifically, this means that it has come from the big
corporations and the international banks, of which the CFR and other Think Tanks
are composed.
The "State within a state" that Justice Louis D. Brandeis warned about in
1915, was part of the beginning of a government within a government, or, as FBI
Agent Dan Smoot calls it, The Invisible Government.
Other notable components include: the emergence of the Federal Reserve System,
and the creation and infiltration of the CFR, the Bilderbergers and the TC into
the executive branch.
The Reece Committee found that, "When their activities spread into the field
of the so-called, 'social sciences' or into other areas which our basic moral,
social, economic, and governmental principles can be vitally affected, the
public should be alerted to these activities and be made aware of the impact of
foundation influence on our accepted way of life."
"The power of the individual large foundations is enormous," they concluded.
"It can exercise various forms of patronage which carry with them elements of
thought control. ... It is capable of invisible coercion through the power of
its purse. ... This power to influence national policy is amplified tremendously
when foundations act in concert. There is such a concentration of foundation
power in the united States."
"Every significant movement to destroy the American way of life has been
directed and financed, in whole or in part, by tax-exempt organizations, which
are entrenched in public opinion as benefactors of our society," warned Smoot.
And Wormser stated, "By engaging 'public relations counselors' (ethically, and
even legally, a questionable practice), it can further create for itself a
favorable press and enthusiastic publicity."
"As I see it, the foundations ... have, nonetheless, become the 'agencies' of
the principal organization which they finance--the Council on Foreign
Relations," said Smoot. So according to Smoot's conclusion, which is backed up
by two congressional investigations, the tax-exempt giants are basically the
private bank accounts of the interlocking Think Tanks.
Perloff arrived at the same conclusion when he noted, "The Rockefeller
Foundation, for example, has poured millions into the Council on Foreign
Relations, which in turn serves as the Establishment's main bridge of influence
to the U.S. government." Wormser wrote that "Dr. Hutchins ... [former] President
of The Ford Foundation's off-shoot, The Fund for the Republic, stated in 1948
... that 'world government is necessary, therefore it is--or must be
made--possible.'" Finally, Smoot summarized, "[foundations] do finance the vast,
complex, and powerful interlock of organizations devoted to a socialist
one-world system."
Writing about the results of other independent organizations which have
investigated foundations, Wormser observed that, "ideas and organizations
[supported] by tax-exempt foundations ... had become the breeding ground for
socialist and related political movements and action." And that there were
fears, "over the danger of foundation support of various undesirable concepts
and movements having political implications." These fears included, "the
impairment of our national sovereignty; and even subversion. Hence the support
by a majority in Congress of both the Cox and Reece Committee inquires."
The Reece Committee also found that foundations tend to support "moral
relativity" (the end justifies the means), and "social engineering"
(mind-control), which are "detriment of our basic moral, religious, and
governmental principles." Wormser indicated that they also supply grants to
intermediary organizations, which they've created, in order to carry out private
(political) projects. These organizations are essentially public front organizations, which are presented to the
public as being humanitarian in nature.
Interestingly, the brutal MKULTRA experiments, which were carried out in
prestigious hospitals and universities, were funded by the Rockefeller
Foundation. In his book, The Search for the Manchurian
Candidate, Jonathan Marks wrote, "He [Dr. Cameron] headed Allan Memorial
since 1943, when the Rockefeller foundation had donated funds to set up a
psychiatric facility at McGill University. With continuing help from the
Rockefellers, McGill had built a hospital known far beyond Canada's
borders..."
Summary
So, as these investigations and independent researchers have found, the true
purpose for some of these foundations which are used by the financial elite, is
to bankroll the installation of a one-world socialist dictatorship, and tax
avoidance. These investigations were launched because Congress and others were
concerned that these foundations were backing subversive socialist political
moments by using vast propaganda and the power of the purse.
These investigations were launched because Congress & others were
concerned that these foundations were backing subversive socialist political
moments by using vast propaganda & the power of the purse. This appears to
be exactly what the Hidden Evil is--part of a subversive political movement
toward the installation of a socialist one-world government.
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