FOUNDATION CIA MONEY FUNNEL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00149R000600210041-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: November 17, 2016
• Document Release Date: June 10, 1999
• Sequence Number: 41
• Publication Date: September 1, 1964
• Content Type: NSPR

Appr e -For-Rele e. 2000/08127 : CIA-RDP75-00149R000600210041-1
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Date: s.P 1
1964
Foundation CIA
Money. Funnel
By Edmond LebretoA :
WASHINGTON (AP)
Congressional investigators
shifted their course today after
hearing that the Central Intelli-
gence Agency had channeled
some of its secret spending
through a private foundation.
Little was heard of the hush-
hush operation beyond testimo-
spent through the J. M. Kaplan
Fund, a tax-exempt foundation.
The amount of the money and
its destination, were not dis-
closed.
THE house small business
subcommittee turns today, in-
stead, to foundations associated
with Texas millionaire H. L.
D-Tex., told newsmen his group
would not pursue further the
CIA aspects of Kaplan Fund af-
fairs. The subcommittee is in-
vestigating the fund along with
others in its study of tax exemp-
tion for charitable foundations.
"We are convinced the CIA
does not belong in this founda-
tion investigation," Patman
said after the conference. "We
are dropping it so far as the CIA
is concerned."
Patman said, however, the
testimony taken had not been
contradicted. and would stand
and that the subcommittee
would continue later its investi-
gation of the Kaplan Fund. He
has said its founder has "waged
a number of battles" to take
over companies, in some cases
using "funds set up and domi-
nated by him."
Just as well-trained foxhounds
keep after their quarry "even if
something else runs across the
,trail," he said, the subcommit-
tee "is not going to be distract-
ed from the main purpose of its
investigation."
AT Monday's hearing, Patman
said he had been told by a reve-;
nue official and a CIA spokes-
man that the CIA had used the
Kaplan Fund as "a conduit."
Under questioning, Mitchell
Rogovin, assistant to the com-,
missioner and IRS liaison man
with the CIA, testified a CIA of-
ficial had come to him late in t
1961 after an audit of the Kaplan
Fund had begun.
Rogovin said he had been told;
,"they had been using the fund
and they just wanted to alert
the Washington office. They
were concerned whether their
interest would be made public
and whether the fund would be
jeopardized by the audit."
The CIA operates so secretly
sao;eues ;o TnIpupq n Sluo ;sq;
and representatives even know
how much money is appropriat?
ed for it.
Patman remarked that the
limited disclosure might have
been averted if the CIA had
been more co-operative in pro-
viding information he sought,
after learning privately of the
connection with the fund.
"They probably didn't realize
the.situation," he said.
ny that official funds had been I Hunt.
the brief testimony about CIA
funds, brought out from reluc-
tant Internal Revenue Service
witnesses Monday, resulted in
an hour-long, closed-door ses-
sion later of subcommittee
members with the revenue offi-
cials and Lt. Gen. Marshall S.
'Carter, deputy CIA director.
Afterward the subcommittee
chairman, Rep. Wright Patman,
Approved For Release 2000/08/27 : CIA-RDP75-00149R000600210041-1