9.
Wednesday, March 27,1974
University Daily Kansan
Audit Indicates Dairy Co-op Gave To Humphrey's Campaign Illegally
BY BROOKS JACKSON Associated Press Reporter
WASHINGTON - An internal audit indicates that Associated Milk Producers Inc. paid at least $81,691 in corporate money to support Hubert H. Humphrey's 1968 presidential campaign and $34,500 to his 1970 senatorial campaign.
The audit and a lawyers' report, obtained from court records, show that the giant dairy co-operative retained its ties to Decameron's farm in 1968. Decameron Nixon after his 1968 victory.
The 1968 Humphreys money went to the $15,000 nine-month salary of a campaign worker, to reimburse him for $1,151 in campaign travel expenses, to reimburse at least $4,000 in campaign donations by a number of individuals and to pay miscellaneous expenses of a campaign rally, a dinner and a parade, the audit.
FEDERAL LAW PROBHIBS corporate contributions to political campaigns. Two
some other expenditures, the milk producers used a system of bank loans, transfers, payments and reimbursements to finance their activities. Democrats, according to the Wright report.
Generally, the milk producers made payments for admittedly phony lawyers' fees or public relations fees to people who later passed on part of the money to repay bank loans covering the $100,000 donation. The money that wasn't passed on was supposed to be used to pay federal income taxes on the "fees."
Among those listed as participating in this payback arrangement were former Democratic party treasurer Richard B. Dick, former chairwoman Dik and Kirby Jones, W. DeVier Pierson, former White House aide to Lyndon B. Johnson, Rep. James R. Jones, D-Doka, and the late Cilton C. Carter, who had been executed for the Democratic Committee.
THE REPORT SAID that Maguire didn't
'I have no knowledge of these transactions . . .'
former officials of the milk producers pleaded guilty last January to conspiring to donate $22,000 to the Humphrey campaign. Former general manager Harold S. Nelson was indicted earlier this month for perjury because he denied knowledge of that donation. The $22,000 is included in the $91,691 contribution. Through a spokesman, Humphrey said, "We have a dedicated knowledge base." an organization as large as AMPI should have had the kind of legal counsel that would have prevented these types of transactions."
—Hubert Humphrey
The auditing firm, Haskins & Sells of San Antonio, Texas, said its accounting might be incomplete because some canceled checks from 1967 and 1968 could not be found.
THE AUDIT IS attached to a report for the cooperative board of directors by Mr. D. F. O'Neill, president of the American Bar Association. The board commissioned Wright to investigate illegal political contributions and other payments by past officials of the dairy
After Humphrey's defeat, general manager Nelson decided to "make peace" with the Republicans, according to two officials quoted in the report. In August 1969 the co-o-p shipped $100,000 in cash to Nixon's fund rasser, Herbert L. Kalpachb.
The milk producers recently said the $100,000 was an illegal corporate donation. The co-operative asked Nixon campaign officials to pay the money, but have as yet received no reply.
TO COVER THE $100,000 donation and
respond to requests for comment and that Person declined to comment personally.
Van Dyk was quoted as saying he wasn't aware of the true purpose of the payback money, which went through Kirby Jones, his employ.
Rep. James Jones was quoted as saying he gave $10,000 to the milk producers as a voluntary, unreimbursed donation which he thought was going to be relayed to Democrats. The report said Jones received $650 for legal and editorial work for the milk producers in the four years before he was elected to Congress in 1972.
In 1970, about the time that milk producers were promising to raise $2 million for President Nixon's campaign, they also were giving support out of corporate funds for Humphrey's Minnesota campaign, the Wright report said.
IT QUOTED FORMER co-op lobstier Bob A. Lilly as saying he was reimbursed from company funds for two contributions to Humphrey totaling $22,500. Lilly also said that a $12,000 advertising payment to the New York firm of Lenen & Newell Inc. would be sufficient for printing costs. The invoice for that payment listed it as "consulting fee for Minnesota."
Documents indicate that Lilly received the advertising bill from Chestnut and gave Chestnut two corporation checks to pay it, the report said.
Humphrey's former campaign manager, Jack Chestnut, was quoted as acknowledging receipt of about $22,500 from Lilly, but the report said Chestnut couldn't be reached a second time for comment on the Lennon & Newell payment.
LILLY ALSO WAS identified as the main conduit for Humphrey's 1968 money. Lilly worked nine months on the campaign in six states, while being paid by the milk producers. He was Humphrey's coordinator and a member of the campaign team said. His corporation salary was listed at $20,000 a year, which figures to $15,000 for the nine months.
and the KU Athletic Association - 41.7 per cent ($164,454.29); the senate -12.5 per cent ($49,286.85); the Kanans -11.2 per cent ($44,169.98); University theatre -7.1 per cent ($30,423.11); and men's and women's intramurals -1.6 per cent ($63,100.0).
From Page One
Budget Requests for Fiscal Year 1975
Groups in the table below that have no entry for either fiscal year 1974 or for fiscal year 1975 didn't apply for funds for that year.
Bordeaux
Bordeaux
Bordeaux
Consultation
Consultation
Consultation
Consultation
Alfred H. Williams, Director, Investments
Alfred H. Williams, President, Investments
Alfred H. Williams, Vice President, Investments
Alfred H. Williams, Executive Vice President, Investments
Alfred H. Williams, Vice President, Investments
Alfred H. Williams, Chief Financial Officer, Investments
Alfred H. Williams, Chief Operating Officer, Investments
Alfred H. Williams, Chief Information Officer, Investments
Alfred H. Williams, Senior Vice President
$399,260.00 $270,450.29
COLORFUL EXOTIC COSTUMES
EXCITING MACHETE DANCE
Presents
FRENETIC PAGAN RITUAL
FAVORITES FROM THE LATIN- AMERICAN HIT PARADE Electronic Music, Synthesizers, Strobe Lights
8:00, Thurs., March 29 Hoch Auditorium TICKETS AT SUA OFFICE OR AT THE DOOR $2.00
National Folk Ensemble of Nigeria Tickets Good for Festa Brazil
Tickets still available for "Ozark Mountain Medicine Show," "A Funny Thing Happened on the Way to the Forum," Pointer Sisters and Robert Altman at SUA Office.