PATMAN SAYS C.I.A. GAVE MONEY TO A FOUNDATION IN 'SECRET' PACT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00149R000400480023-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: November 11, 2016
• Document Release Date: February 1, 1999
• Sequence Number: 23
• Publication Date: September 1, 1964
• Content Type: NSPR

RGHT
Patman Says C.I.A C.I.A. Gave Money
o a Foundation rn `Secret' Pact
a
Texan Declares Kapln Fa
Acted as Sub Rosa Tonilai
for Intelligence Agency
By United Press International . ,
WASHINGTON Aug. 31
Representative Wright Patm
disclosed today that the Central
jIntelligence Agency had given
money to a private foundation
that, he said, had served as a
"secret condut" for the agency.
The Texas. Democrat quoted
$an unidentified official of
the agency as having said that
'the intelligence agency had had
and "arrangement" with the
J, M. Kaplan Fund of New York
City from 1969 until some time
this year.
The Internal Revenue Service,
Which Is investigating the foun-
dation's tax-exempt status, con-
firmed that the intelligence
Asloclated Press
Wright Patman .
agency had given financial sup- disclosing the agency's .pay-
port to the Kaplan Fund. But ments to the fund because he
a spokesman for the service thought. he had been "trifled
said he knew of no working ar- with" in connection with the
rangement between the two case. The agency, following its
groups. tradition of strict secrecy, had
Mr. Patman did not elaborate Mr comment.
disclosure at a
(an agency his had used sed the statement that fund as a the public hearing of his House
t
,"secret conduit." It is known, Small Business subcommittee
was the source of ' some ' eon-
ho
ever th
t th
a
'
w
a
gency
ogee
e
,existing foundations, or - cern and embarrassment to In-
casionall ' creates its own ternal Revenue officials; t 4 -
u,?,~?,ew ,.., IUAW edW,~....s ,Intelligence. APpadent3yr:hthe.lutelligenco
?? ' ? ; _ a .._--,~,,......,5~.. lli niii
Tbq.Congressmeu-,said hey Ways
agency's Involvement with the wanted about the case.
Kaplan Fund was a secret He said he had ? asked his
shared by only a few persons informant In the Intelligence
in official Washington agency to tell him the months
Mitchell Ro ovin assistant to the a enc had given mone to
Revenue, said that until Aug.
10, the date of the last Patman
subcommittee hearing on the
subject, he was the only present
employe of the service who
knew of the C.I.A.-Kaplan re-
lationship.
~.Fven the New York District
office of the Revenue Service,
which is conducting the Kap-
..f F{... ....1..F1,...-r.In ?.c.. Annnlrtn
said. I
The Revenue Service has been
examining the Kaplan Fund for
several years to determine
whether it -should be permitted
to retain' its tax-exempt
status. The fund has contributed
money to, a number of chari-
table and educational projects,
particularly in the New York
City area.
Mr. Patman's subcommittee
has been reviewing the tax-ex;
sons in the agency had selectedi
the fund:
)
The agency did not provide
the answers, Mr. Patman said.,
He then decided; he went on,
that to break a confidence and
make the issue public was the
only way he could get mean-,
ingful Information.
"I feel. I have been trifled
commissioner of the Revenue
Service, Bertrand. Al. Harding,
agreed to discuss confidential
aspects of the case privately,
with Mr. Patman.
. Later In the day, Mr. Rogovin
find Mr. Harding met privately
with Mr. Patman and repre-
sentatives of the intelligence
agency. Afterwards, Mr. Pit-
man a ' ,b) a was convinced that
"no matter of Interest: to the
subcommittee. relating to the
CIA existed."
it.
Mr. Rogot+in told Mr. Patman
today he had informed the in-
telligence agency of the
Revenue Service's interest
in the Kaplan Fund. But he
denied there was any "arrange-
ment" among the agency, the
service and the fund.
If the agency official told
Mr. Patman otherwise, said
Mr..Rogovin, "it was a poor
choice of words." .
:What seemed to bother Mr.
Patman was whether the agency
knew the Kaplan Fund was
under the scrutiny of the Reve-
nue Service. ' .
He explained today that he
had not planned to make public
a niatter touching on ,"foreign
affairs but indicated :he had
bin?:#rked4ti?isdifttculty fin.,
his business empire. He identiy
fled the financier' as former
president of the Welch Grape
Juice Company and of South;
western Sugar,, and Molasses
Company.
Mr. Kaplan, he said, "is well
known In . the so-called 'take-'
over' business.".
He has waged a number of
battles In this field," Mr. Pat,
man continued. "In some of
these contests, be has made use
of charitable funds set up and
dominated by him."
The Revenue Service does not
'discuss publicly any tax case
it is Investigating. But Mr. Pat-
man asked the service today to
supply the addresses and tax-
.exempt history of eight founda-
tions he ?. said had contributed
-Vontinuad
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