Tax-exempt Foundations were originally setup for humanitarian purposes to
provide grants to existing institutions.
Rene A. Wormser served as General Counsel to the
Reece Committee, which was a congressional committee that investigated the
Tax-exempt Foundations from 1953 to 1955. His book, Foundations: Their Power
and Influence, is a documented expose of his experience with the committee.
In it he wrote, "Foundations were originally created to support existing
institutions and to undertake certain 'operating' functions."
Soon after (or possibly from their inception) foundations became a loop hole
that the financial elite used to avoid taxes. "By the time the income tax
became law in 1913, the Rockefeller and Carnegie foundations were already
operating. Income tax didn't soak the rich, it soaked the middle class,"
wrote Perloff. "Because it was a graduated tax, it tended to prevent anyone
from rising into affluence. Thus it acted to consolidate the wealth of the
entrenched interests, and protect them from new competition."
Smoot pointed out that the primary purpose of some of the large Tax-exempt
Foundations is no longer humanitarian in nature, but "predominately tax
avoidance." "One of the leading devices by which the wealthy dodge taxes"
concurred Perloff "is the channeling of their fortunes into tax-free
foundations." He also charged that, "The major foundations, though commonly
regarded as charitable institutions, often use their grant-making powers to
advance the interests of their founders."
The "independent, uncontrolled financial power often enables foundations to
exert a decisive influence on public affairs," wrote Wormser. He further
testified that, "They have a power comparable to political patronage." He
cautioned "When they do harm, it can be immense harm - there is virtually no
counterforce to oppose them."
What other projects do they fund? According to the findings of congressional
investigations, the foundations have been known to fund political movements
in a direction inclined to favor a socialistic, one-world government.
Individual foundations have also been known to merge themselves in a
"cartel-like" fashion to fund their political projects, which tends "to
endanger the freedom of our intellectual and public life," warned Wormser.
Wormser referred to this merging as the Tax-exempt Complex.
The first glimpse into foundation influence came under the Congressional Act
of August 23, 1912, when the Commission on Industrial Relations studied
labor conditions and the treatment of workers by the major U.S. industrial
firms. They eventually examined the foundations, which were interlocked with
them. "Starting with a study of labor exploitation, it [the Commission on
Industrial Relations] went on to investigate concentrations of economic
power, interlocking directorates, and the role of the then relatively new
large charitable foundations (especially of Carnegie and Rockefeller) as
instruments of power concentration," wrote Wormser.
During the commission hearings, future Supreme Court Justice Louis D.
Brandeis testified on January 23, 1915, that he was seriously concerned
about the emerging danger of such a concentration of power. He said, "When a
great financial power has developed... which can successfully summon forces
from all parts of the country... to carry out what they deem to be their
business principle... [there] develops within the State a state so powerful
that the ordinary social and industrial forces existing are insufficient to
cope with it."
"Control is being extended largely through the creation of enormous
privately managed funds for indefinite purposes, hereinafter designated
'foundations'" declared Mr. Basil M. Manly, director of research for the
commission. The commission's report concluded that, "As regards the
'foundations' created for unlimited general purposes and endowed with
enormous resources, their ultimate possibilities are so grave a menace...
[that] it would be desirable to recommend their abolition."
Congress has declared that these foundations, which can be used to fund
anything, should be eliminated because they are potentially destructive to
the republic. According to Rene Wormser, even though these congressional
findings occurred in 1915, the time period is irrelevant - they are still
quite important. He stated, "Under totally different economic and social
conditions, the findings of 1915 are still significant."
The second investigation into the Tax-exempt Foundations came from the Cox
Committee which lasted from 1952 until 1953. Again, fears of subversive
political objectives funded by these multi-billion-dollar organizations
(acting in concert) were eminent.
On August 1, 1951, a motivated Congressman E. E. Cox (Democrat) of Georgia
introduced a resolution in the House of Representatives to conduct a
thorough investigation into the foundations. He asserted, "There are
disquieting evidences that at least a few of the foundations have permitted
themselves to be infiltrated by men and women who are disloyal to our
American way of life. They should be investigated and exposed to the
pitiless light of publicity..."
The Cox resolution to investigate the foundations was passed in 1952.
Unfortunately, Congressman Cox died during the investigation. The commission
met the same fate as the one before it. No actions were taken to prevent the
expansion of these foundations, or provide means for future accountability
to the public. And as Smoot described it, "the final report of his [Cox]
committee (filed January 1, 1953) was a pathetic whitewash of the whole
However, it did still yield some important facts. Part of the final report
on January 1, 1953 said some foundations "supported persons, organizations,
and projects which, if not subversive in the extreme sense of the word, tend
to weaken or discredit [our] system as it exists in the United States and to
favor Marxist socialism." Or in other words, they were found to promote
The third attempt to investigate the foundations lasted from 1953 to 1955,
during the Reece Committee hearings. Smoot wrote, "On April 23, 1953, the
late Congressman Carroll Reece, (Republican, Tennessee) introduced a
resolution proposing a committee to carry on the 'unfinished business' of
the defunct Cox Committee. The new committee to investigate tax-exempt
foundations... was approved by Congress on July 27, 1953." Author Perloff
added, "For what was probably the... last time, the CFR came under official
Other organizations which came under investigation included, The American
Council of Learned Societies, The National Research Council, the Social
Science Research Council, the American Council on Education, the National
Education Association, the League for Industrial Democracy, the Progressive
Education Association, the American Historical Association, the John Dewey
Society, and the Anti-Defamation League.
During the investigation, Norman Dodd, Director of Research for the Reece
Committee, was invited to the headquarters of the Ford Foundation by its
president, H. Rowan Gaither. Gaither, a member of the CFR, revealed that the
Ford Foundation was operating under directives from the White House to use
their grant-making power to "make every effort to... alter life in the
United States... to make possible a comfortable merger with the Soviet
Union." Apparently Mr. Dodd was put under surveillance, stalked, and
experienced character assassination.
The committee was attacked viciously and resulted in a whitewash.
Recognizing another unsuccessful attempt to scrutinize the interlocks, Smoot
said, "It went out of existence on January 3, 1955, having proven, mainly,
that the mammoth tax-exempt foundations have such power in the White House,
in Congress, and in the press that they are quite beyond the reach of a mere
committee of the Congress of the United States."
But the committee did yield some helpful information. It found that the
Tax-exempt Foundations, their intermediaries and interlocks have "exercised
a strong effect" on "public education," which "has been accomplished by
[using] vast propaganda, by supplying executives and advisors to government
and by controlling much research in this area through the power of the
purse." And that, "The net result of these combined efforts has been to
promote a 'world government.'"
Quoting from the final report of the committee, Perloff wrote, "The
report... observed that major foundations have actively supported attacks
upon our social and government system and financed the promotion of
socialism and collectivist ideas." The Committee declared that the CFR was
"in essence an agency of the United States Government" and that its
"productions are not objective but are directed overwhelmingly at promoting
the globalist concept."
"The Reece Committee... proved with an overwhelming amount of evidence that
the various Rockefeller and Carnegie foundations have been promoting
socialism since their inception," agreed Allen. The Reece Committee hearings
also revealed that individual Tax-exempt Foundations often act in concert
with each other in order to amplify the enactment of their goals.
Congressman Reece made a final report on Tax-exempt Foundations, which was
published by the government printing office on December 16, 1954. He said
that there was clearly an interlock between The Carnegie Endowment for
International Peace, and some of its associate organizations, such as the
Council on Foreign Relations and other foundations, with the State
Department. And that, "[the] foundations and organizations would not dream
of denying this interlock. They proudly note it in reports."
Reece details the infiltration into the government, stating, "They [CFR/foundation
interlock] have undertaken vital research projects for the [State]
Department... [and have] fed a constant stream of personnel into the State
Department trained by themselves or under programs which they have
Finally Reece concluded that "the Rockefeller Foundation, The Carnegie
Corporation of New York, and the Carnegie Endowment for International Peace,
[are] using their enormous public funds to finance a one-sided approach to
foreign policy and to promote it actively... by propaganda, and in the
Government through infiltration. The power to do this comes out of the power
of the vast funds employed."
The report clearly states that the CFR with interlocked foundations have
infiltrated the government. And that they use enormous sums of money to
propagandize "educate" the public in support of the policies which they
decide we should adopt. What congress has told us is that the government has
been infiltrated by the CFR using multi-billion-dollar private bank accounts
known as Tax-exempt Foundations.
This means that when a major U.S. policy is filtered down from the federal
government, into the local and state governments, that it may originate from
the CFR/foundation interlock. Specifically, this means that it has come from
the big corporations and the international banks, of which the CFR and other
Think Tanks are composed.
The "State within a state" that Justice Louis D. Brandeis warned about in
1915, was part of the beginning of a government within a government, or, as
FBI Agent Dan Smoot calls it, The Invisible Government. Other notable
components include: the emergence of the Federal Reserve System, and the
creation and infiltration of the CFR, the Bilderbergers and the TC into the
The Reece Committee found that, "When their activities spread into the field
of the so-called, 'social sciences' or into other areas which our basic
moral, social, economic, and governmental principles can be vitally
affected, the public should be alerted to these activities and be made aware
of the impact of foundation influence on our accepted way of life."
"The power of the individual large foundations is enormous," they concluded.
"It can exercise various forms of patronage which carry with them elements
of thought control... It is capable of invisible coercion through the power
of its purse... This power to influence national policy is amplified
tremendously when foundations act in concert. There is such a concentration
of foundation power in the united States."
"Every significant movement to destroy the American way of life has been
directed and financed, in whole or in part, by tax-exempt organizations,
which are entrenched in public opinion as benefactors of our society,"
warned Smoot. And Wormser stated, "By engaging 'public relations counselors'
(ethically, and even legally, a questionable practice), it can further
create for itself a favorable press and enthusiastic publicity."
"As I see it, the foundations... have, nonetheless, become the 'agencies' of
the principal organization which they finance - the Council on Foreign
Relations," said Smoot. So according to Smoot's conclusion, which is backed
up by two congressional investigations, the tax-exempt giants are basically
the private bank accounts of the interlocking Think Tanks.
Perloff arrived at the same conclusion when he noted, "The Rockefeller
Foundation, for example, has poured millions into the Council on Foreign
Relations, which in turn serves as the Establishment's main bridge of
influence to the U.S. government." Wormser wrote that "Dr. Hutchins...
[former] President of The Ford Foundation's off-shoot, The Fund for the
Republic, stated in 1948... that 'world government is necessary, therefore
it is - or must be made - possible.'" Finally, Smoot summarized,
"[foundations] do finance the vast, complex, and powerful interlock of
organizations devoted to a socialist one-world system."
Writing about the results of other independent organizations which have
investigated foundations, Wormser observed that, "ideas and organizations
[supported] by tax-exempt foundations... had become the breeding ground for
socialist and related political movements and action." And that there were
fears, "over the danger of foundation support of various undesirable
concepts and movements having political implications." These fears included,
"the impairment of our national sovereignty; and even subversion. Hence the
support by a majority in Congress of both the Cox and Reece Committee
The Reece Committee also found that foundations tend to support "moral
relativity" (the end justifies the means), and "social engineering"
(mind-control), which are "detriment of our basic moral, religious, and
governmental principles." Wormser indicated that they also supply grants to
intermediary organizations, which they've created, in order to carry out
private (political) projects. These organizations are essentially public
front organizations, which are presented to the public as being humanitarian
Interestingly, the brutal MKULTRA experiments, which were carried out in
prestigious hospitals and universities, were funded by the Rockefeller
Foundation. In his book, The Search for the Manchurian Candidate, Jonathan
Marks wrote, "He [Dr. Cameron] headed Allan Memorial since 1943, when the
Rockefeller foundation had donated funds to set up a psychiatric facility at
McGill University. With continuing help from the Rockefellers, McGill had
built a hospital known far beyond Canada's borders..."
So, as these investigations and independent researchers have found, the true
purpose for some of these foundations which are used by the financial elite,
is to bankroll the installation of a one-world socialist dictatorship, and
These investigations were launched because
Congress and others were concerned that these foundations were backing
subversive socialist political moments by using vast propaganda and the
power of the purse.
These investigations were launched because Congress & others were concerned
that these foundations were backing subversive socialist political moments
by using vast propaganda & the power of the purse.
This appears to be exactly what the Hidden Evil
is - part of a subversive political movement toward the installation of a
socialist one-world government.
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