Are the Tax Shelters for the Super Rich
Under the guise of
philanthropy, the Illuminati avoided taxation by transferring their
wealth to tax-free foundations.
Foundations are either state or federally chartered. The first was
chartered by Benjamin Franklin in 1790, in Philadelphia and Boston, from
a $4,444.49 fund, to make loans "to young married artificers (artisans)
of good character." In 1800, the Magdalen Society was established in
Philadelphia, "to ameliorate that distressed condition of those unhappy
females who have been seduced from the paths of virtue, and are desirous
of returning to a life of rectitude." In 1846, the Smithsonian
Institution was established by the bequest of English scientist James
Smithson "for the increase and diffusion of knowledge among men." The
Peabody Education Fund was initiated in 1867 by banker George Peabody,
to promote education in the South.
Before 1900, there were only 18 foundations; from 1910-19, there were
76; during the 1920's, 173; the 1930's, 288; the 1940's, 1,638; and
during the 1950's, there were 2,839 foundations.
United Press International (UPI) reported on July 19, 1969, that the top
596 foundations had an income that was twice the net earnings of the
country's 50 largest commercial banking institutions.
According to Rep. Wright Patman, in a report to the 87th Congress, it is
because of the existence of foundations, that "only one-third of the
income of the nation is actually taxed."
Some of the important foundations are: Ford Foundation (Ford Motor Co.),
Rockefeller Foundation (Standard Oil), Duke Endowment (Duke family
fortune), John A. Hartford Foundation (Great Atlantic and Pacific Tea),
W. K. Kellogg Foundation (the Kellogg Cereals), Carnegie Corp. (Carnegie
Steel), Alfred P. Sloan Foundation (General Motors), Moody Foundation
(W. L. Moody's oil, realty, newspapers, and bank holdings), Lilly
Endowment (Eli Lilly Pharmaceuticals), Pew Memorial Trust (Sun Oil Co.
or Sunoco), and the Danforth Foundation (Purina Cereals), which all have
assets of well over $100 million.
The first Congressional Committee to investigate the tax-free
foundations was the Cox Committee in 1952, led by Rep. Eugene E. Cox, a
Democrat from Georgia. Its purpose was to find out which "foundations
and organizations are using their resources for purposes other than the
purposes for which they were established, and especially to determine
which such foundations and organizations are using their resources for
un-American and subversive activities or for purposes not in the
interest or tradition of the United States."
Cox discovered that officers and trustees of some foundations were
Communists, and that these foundations had given grants to Communists or
Communist-controlled organizations. A former Communist official, Maurice
Malkin, testified that in 1919 they were trying "to penetrate these
organizations (foundations), if necessary take control of them and their
treasuries ... that they should be able to finance the Communist Party
propaganda in the United States." During the investigation, Cox died,
and the facts were glossed over in a cover-up.
Another member of the Committee, Rep. Carroll Reece of Tennessee, the
former Chairman of the Republican National Committee, forced another
investigation in 1953, to see if foundations were being used "for
political purposes, propaganda, or attempts to influence legislation."
The Washington Post called the investigation "unnecessary," and that it
was "stupidly wasteful of public funds." Reece even referred to a
The Eisenhower Administration was clearly against the probe. Three of
the four who were selected for the Committee, with Reece, were House
members who had voted against the investigation. Rep. Wayne Hays of Ohio
worked from the inside to stall the investigation. During one 3-hour
session, he interrupted the same witness 246 times. He prohibited
evidence discovered by two of its investigators from being used. Rene A.
Wormser, legal counsel to the Committee, revealed why, in his 1958 book
Foundations: Their Power and Influence: "Mr. Hays told us one day that
'the White House' had been in touch with him and asked him if he would
cooperate to kill the Committee." Wormser also revealed that the
Committee had discovered that these foundations were using their wealth
to attack the basic structure of our Constitution and Judeo-Christian
ethics; and that the influence of major foundations had "reached far
into government, into the policy-making circles of Congress and into the
Reece's Special Committee to Investigate Tax Exempt Foundations
discovered that many foundations were financing civil rights groups,
liberal political groups, political extremist groups, and supporting
revolutionary activities throughout the world. The Committee reported:
"Substantial evidence indicates there is more than a mere close working
together among some foundations operating in the international field.
There is here, as in the general realm of social sciences, a close
interlock. The Carnegie Corporation, the Carnegie Endowment for
International Peace, the Rockefeller Foundation and, recently, the Ford
Foundation, joined by some others, have commonly cross-financed, to a
tune of many millions ... organizations concerned with
internationalists, among them, the Institute of Pacific Relations, the
Foreign Policy Association (which was "virtually a creature of the
Carnegie Endowment"), the Council on Foreign Relations, the Royal
Institute of International Affairs and others ... and that it happened
by sheer coincidence stretches credulity."
On August 19, 1954, Reece summed up his investigation: "It has been said
that the foundations are a power second only to that of the Federal
Government itself ... Perhaps the Congress should now admit that the
foundations have become more powerful, in some areas, at least, than the
legislative branch of the Government." The investigation ended in 1955,
when funding was withheld.
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