QUIZ REVEALS CIA SPENDING THROUGH FUND

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00149R000700040040-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 20, 2016
• Document Release Date: February 26, 2007
• Sequence Number: 40
• Publication Date: September 1, 1964
• Content Type: NSPR

`JLOS AN(ILES TIM ES
'Approved For Release 2007/02/28: CIA-RDPr 00149R000700040040-0
Quiz Reveals
CIA Spending
Through fund, !AY,VINCENT J. AURKE
Timis staff Writer
'... WASHINGTON The
cloak... of the government's
cloak-and-dagger, agency got
s n a g g e d Monday .in'Ahe
machinery ' o('-, a congres-
sional investigation..
And Lt.. Gen. Marshall S.
Carter, deputy director of
the Central Intelligence
Agency, had to spend an
hour ; conferring with Rep:
Wright Patman,(D-Tex.) ?to
tget. it, extricated.
Before the , damage was
repaired, , the ` public got a
rief:but fascinating peek at
one of the techniques-.used
by the CIA to mask its role in
financing activities 'it deems
to be in the interest of the
,U.S. government
The 'congressional inquiry
disclosed that during the last
four ~ years, - the ' CIA' has
channeled the spending of
some of its money through
tthe J. M. Kaplan FundInc.,
of . New York. City, a' tax
'exempt foundation.
'Amount Not Told
There was no. hint of how
much, money was, so 'than-
reeled,' inhere it was spent, or
for what purpose..
The testimony was given
,by Internal Revenue Service
officials b e f o r e Patman's
small business subcommittee
after' Patman himself let' the
cat' out of the bag. ... ' .
Patman ? disclosed his se-
cret information about CIA's
past connection . with the
Kaplan Fund because,. he
said, the CIA just.w'asn't co-
operating;, in: his, investiga
tion
?? Tl}e Ka Ian)'uiid is. on 1:
t'many. tax -'exempt' founda-
tions which Patman is. in-
vestigating. He lrontends, the
tax' exemption. of many off,
them, inclilding the Kaplan,
Fund, should be revoked;
because they are heing?.used
by their founders ;for per,
charitable institutions'
-Revocation Urged
Internal :ReNlenue Service
officials in New York twice
l~ave recommended that they
lax', exempt status of the
Kaplan Fund be . revoked.-
But, these `decisions ? were
subsequently over-ruled. '
own word, lnc. set up in 3944, reported
, not a an to be l
"trif ,cl" ,n-iih the CTA .1S$ets of $1,6 million in 1945,;
'It was 'founled: by .lacob,
" Carter, CIA deputy direr- M.'Kaplan, a New'Yorker, at
tor, accompanied by . two about the Lillie that Kaplan
unidentified aides, went to won control' of Welch Gra
e
p
Patman's office for a, con-!,Iuice Co. after a proxy, fight?
Terence S
rtid B
t
a
er
rand MiKaplan no lg iffi=
..oners an o Harding a c: t i n g commis-,cer of'the Welch Co but is
. sionerr of the Internal Rev-ipresident' of.. a:. number 'of
enure Sew
. -"_ -- -
n a
Seventy minutes 1 a t; e I The-stated nitrnnc,> of theEE
1T------ promised that the ? Iziirrnal abroad" by aiding "belie-;
investigation to deterniine;tional, scientific andli erar
tat exemption is justified "isi Patman contends that ,a
and a: t;.iti report will be,been to enable Kaplan and
m a d e~ to t h e committcG his associates to use . the;
c
ompanies.
lie, said `the CIA offici
als, Durin
' Mo
d
'
g
n
ay
t s cony
,mad the been closed-door meeting, : ressional hearing, Mitchell
th
t r.y...4
e ,,,formatiioan Revenue official, implied that
f o r e, t h e subcommittee's other tax -exempt founda
that "no matter of interest to Rogovin testified' that "the4