-Caveat Lector-
an excerpt from:
Shrine of the Silver Dollar
John L. Spivak(C)1940
Modern Age Books
New York, NY
-----
The book that brought down demagog Charles Coughlin, who was the second-most
listened to person in the '30's, right behind FDR. John Spivak exposed Father
Coughlin to be a fraud and in league with Nazi propagandists. Out of print for
many years.
Om
K
-----
VI
COUGHLIN AND HENRY FORD
AT 2:30 in the afternoon of February 9, 1939, Loren J. Houser, secretary-
treasurer of the United Automobile Workers of America, with offices in
Detroit, found that he had no money to meet the pay roll. He walked into the
private office of Homer Martin, president of the independent union, and told
him there was no cash available. (Martin had been president of the United
Automobile Workers, C.I.O., but by this time had broken away and established
his own opposition group which was desperately and deliberately trying to
wreck the C.I.O. union.)
"How much do you need?" asked Martin.
"About $10,000."
Martin reached into the inside pocket of his coat and took out two cashier's
checks drawn on a New York bank. One was for $10,000 and the other for
$15,000. Each had been made payable to Homer Martin personally.
'Come on," he said, "let's go downstairs and cash
The teller in the bank next door to the Griswold Building where Martin's union
had its offices.) handed over the cash.
"Here," Martin casually told Houser., "use this. When that's gone there's more
where it came from."
Martin, whose split with the United Automobile Workers, C.I.O., had seriously
hurt the drive to organize the automotive workers, for a time did not have
enough money from membership dues to run his organization. Funds came from a
mysterious source. That source was, and is today, Harry Bennett, head of Henry
Ford's Personnel Division, whose chief activity is labor spying to prevent the
Ford plant from being organized by any union. Bennett established this amazing
secret service organization several years ago; his operatives are now found
not only in the Ford plants but in the unions and in the political life of the
state. How Homer Martin was brought in contact with Henry Ford and finally
began to take money from the Ford labor spy chief.) brings us to the Reverend
Charles E. Coughlin, the "friend of, organized labor."
The story begins at the end of August, 1937, when Homer Martin was still
president of the United Automobile Workers, C.I.O. Early this summer evening a
car drove up to the rectory adjoining the Shrine of the Little Flower, and
Homer Martin stepped out. With him was R. I Thomas, another high union
official who is now president of the U.A.W-C.I.O. The street in front of the
rectory, with its tall, heavily leaved trees, seemed asleep, for it was the
dinner hour. Royal Oak burghers were at their dining tables, and it was long
past the sight-seeing hours when visitors to the Shrine walk around the block
eyeing the church and the rectory where the priest lives.
Thomas, a stocky, youngish labor leader, whose face normally has a stare of
baby innocence which masks his keen observations, was frowning.
"I don't think we're doing a smart thing, Homer," he said.
"Don't worry about it," said Martin. "Dave Brand is an officer of the Dodge
Local. He came to me; I didn't go to him. He lives somewhere around here,
close to Father Coughlin, and is one of his staunchest followers. He came up
to my office, as I told you, and personally invited us. Said Father wanted to
see us. Now, I've known Brand for a long time and I'd have gone by myself, but
he said Father Coughlin wanted you to come along, too."
"I still don't think it's a very smart thing to do. Father Coughlin wasn't
friendly to union labor even when he was building his church. He says he
doesn't like the C.I.O., but he doesn't like the A.F. of L. either. He's got
something up his sleeve, and I have a feeling it's not for our benefit. I've
heard too many stories about how he says one thing but does another."
The radio priest had apparently been waiting for them with some eagerness, for
he himself opened the door in response to their ring and took them into his
spacious living quarters. After dinner, to which they had been invited,
Coughlin immediately led the discussion from national problems to the labor
situation. He started off with a furious denunciation of John L. Lewis as a
"stooge of the Communist party." Thomas listened in amazement, while Martin
nodded. From Lewis the priest turned to a scathing attack on Monsignor John A.
Ryan of Washington, D. C., who, he charged, was more interested in "promoting
the policies of the Communist party than in the Catholic church," and
proceeded from the church dignitary to John Brophy, Richard Frankensteen, and
other C.I.O. leaders. In a final outburst, he lambasted those Catholic priests
in the Detroit area who, with Monsignor Ryan, had viewed C.I.O. organizing
efforts with friendly eyes.
Neither Martin nor Thomas had much chance to speak. It was not a conversation
but an oration, and the more Coughlin talked the more hypnotized he seemed by
his own voice. After a while, however, he noticed the look in Thomas's eyes
and shrewdly dropped to a personal note.
"Homer," he said, assuming the air of an old friend, "Lewis and the C.I.O. are
stooges of the Communist party. I think I've made myself clear on that. Now,
if you want to fight Lewis and the C.I.O. I can give you a lot of help." He
paused, and added slowly with emphasis: "You have possibilities in the labor
movement and I want to help you. My newspaper, Social Justice, has an enormous
circulation and following. Wait a minute!" he exclaimed as if a sudden
inspiration had come to him. ("Let me get a couple of my editorial men so we
can discuss this thing and see what we can do for you. I'm anxious to help
you."
He beamed upon Martin and telephoned to the Shrine office. The inspiration
seemed beautifully timed; it just happened that the two persons he wanted were
around. Within a few minutes E. Perrin Schwartz, editor of 'Social Justice,
and Joseph Patrick Wright, an editorial assistant, came in. Wright had a
peculiar smile, and Schwartz acknowledged the introductions standing with that
hangdog crouch to his shoulders. Throughout the evening they didn't open their
mouths, except once, unless Coughlin spoke to them. They just kept nodding
their heads in approval at everything he said.
"You know, Homer," Coughlin said, taking a chair close to Martin, "I can call
some meetings of priests. I have considerable influence with a lot of priests.
I can arrange for them to see you, and they in turn have a great deal of
influence."
Thomas couldn't figure it out. There was some. thing behind all this, he felt-
something the priest hadn't sprung yet. Coughlin rose and began to pace the
room, his head bowed as if in deep thought. No one spoke. Both guests and
employees eyed him.
The priest seemed to be wrestling with himself like an actor on the stage who
wanted to be sure the audience didn't miss the wrestle. Suddenly he paused
dramatically in front of Martin with the air of one who had reached a decision
and was about to dispense a great gift.
"Homer," he said, "how would you like to have the auto workers organize the
Ford Motor Company?"
Schwartz and Wright caught their breath audibly as if amazed at the priest's
generosity. Martin himself didn't seem as startled as a labor leader offered
such a gift should, and Thomas, for the first time, wondered if Martin hadn't
known what was coming.
"Well," said Martin, "that would be very nice."
Coughlin looked at Thomas, whose baby-innocent stare hadn't changed. "The auto
workers would very much like to organize the Ford plant," said Thomas.
The C.I.O. was making extraordinary efforts to organize the Ford plant. Ford
was fighting them tooth and nail. The entire huge system of labor spies
developed by Harry Bennett was in motion to stop the union. Yet here was this
priest, known to labor as unfriendly despite all his protestations, offering
to let the auto workers organize the plant. There was something behind this,
and it made Thomas uneasy. He was familiar with Coughlin's labor speeches and
had long ago concluded that when the priest persuaded labor to follow his
advice it almost invariably turned out that the employers got the benefit of
it. Thomas remembered that back in 1934, when the auto companies fought
unemployment insurance and old age pensions, Coughlin had raised a wail that
the companies would go out of business. He remembered how Coughlin, while
orating for union labor on the air, hired non-union labor to build this very
church and the rectory where they were sitting. There was something in his
unctuous speeches as a "friend of labor" that always seemed to hand labor the
short end of the deal when you got right down to cases.
This offer to organize the Ford Motor Company employees, which neither the
A.F. of L. nor the C.I.O. had been able to do, sounded a bit peculiar,
especially since it came just when the union was was making real headway. It
was an old trick, Thomas knew, for employers to hire people to split a union's
ranks by starting another union. Such tactics, in labor spy parlance, are
known as using "disrupters." The priest had started the after-dinner
conversation by attacking the C.I.O. and its leadership. This meant that the
next step would be to set up a rival union, which in turn meant creating an
internal fight that would inevitably disrupt the drive to organize the auto
workers. Employers had long followed such strategy, and Ford himself was
annually spending a fortune on labor spies for similar purposes. Only a
company union would be permitted in the Ford plant. Thomas thought he saw
where Coughlin might fit into this picture.
There was no doubt that Coughlin wanted to enter the labor field. Take the
case of the Workers Council for Social Justice, Inc., which had all the
Coughlin earmarks. It had been financed by a mysterious individual, and the
officers were Ford employees whom Harry Bennett had given "leave of absence."
A full-page newspaper ad announced the organization's existence one day in
1937, and the only trouble was that almost nobody but the officers turned out
for the meetings. That effort fizzled, but it showed the Coughlin touch and
the Coughlin desire to put a thumb in the labor union pie. It was well known
that unscrupulous persons had made fortunes by getting control of unions.
Thomas knew little about Coughlin's other activities outside of the generally
accepted fact that while the priest was denouncing stock market gambling in
his broadcasts, he himself was surreptitiously playing the market. Thomas had
wondered, along with many others, where the priest was getting the enormous
sums of money to pay for his national broadcasts. Many of the broadcasts were
directed against the C.I.O. There was something very phony about all this, and
Thomas eyed his host questioningly.
Coughlin noticed the look but apparently mistook it for doubt that he could do
what he had said. "I have a very influential person in my parish," he said
quickly. "It's Vice-President Martin of the Ford Motor Company."
Schwartz, his editor, spoke up for the first time. "Yes, that's true," he said
brightly.
Coughlin shot a disapproving glance at him, and the editorial brains promptly
retired to his silence.
"You know," Coughlin continued, "I think it would be a good thing if I contact
Vice President Martin. He can arrange a meeting between you and Henry Ford. I
think Mr. Ford would like to hear your views, and I am sure you would enjoy
meeting him."
Homer Martin nodded and glanced at Thomas with a what-do-you-say air. Thomas
shrugged his shoulders without committing himself.
"I'll tell you what, Homer," the priest added. "You write me a letter saying
you want to meet Henry Ford and I'll see to it that Vice President Martin
makes the arrangements."
Thomas was at last convinced that this wasn't just a wild-cat offer but that
the whole thing, dinner and all, had been arranged only for this purpose, and
he asked innocently, "But, Father, don't you think Homer should meet Harry
Bennett?"
"Oh no-no-no!" the priest exclaimed. "I don't think this is the time. I think
he should first discuss matters with Mr. Ford directly."'
Once this was settled, the priest gave the conversation a shrewd turn toward
the country's political set-up. He didn't like it. Henry Ford didn't like it
either.
"Mr. Thomas," he said at one point, "you haven't said very much this evening."
"I was listening, Father," said Thomas, his stare becoming even more naive. "I
was very interested."
"I am always interested in everybody's ideas, too. Now, I've got an idea I'd
like to get your reaction on. Im interested in protecting the interests of the
workers, as you know. What do you think of this idea: Suppose we were to set
up an entirely new political machine in this country so that workers would
have representation in Congress as workers?"
"I think if workers had a strong say in Congress it would be very good," said
Thomas, wondering what was coming next.
"Let me finish. What I've got in mind is that workers be represented in
Congress, lawyers have an organization and be represented in Congress, doctors
the same thing. Capital should have an organization and also be represented in
Congress. What do you think of it?"
"Isn't that the corporate state idea?" asked Thomas. "It's the same sort of
idea Mussolini put across in Italy and ultimately crushed the labor movement
there. Hitler did the same thing in Germany. Personally, I think American
workers are getting on all right under our democratic form of government. When
the workers learn which side their bread is buttered on they'll get what they
want from Congress. If those in Congress won't give it to them they'll send
representatives who will."
The priest dropped the subject and turned to his editor. "Perrin," he said
expansively, "what do you think we could do to help Homer out? I'd like to
help him, you know," and he added to Martin, "I can't go on the radio and
speak for you but I can use my newspaper for that purpose. I can also call
meetings of priests and influence them. But I don't believe I'll be able to do
anything for you unless you pull out of the C.I.O."
Thomas stifled a smile. He had expected it, and the priest had finally come
out plainly. That was the "punch line," as they call it in show business, in
this drama played by Coughlin to help the Ford interests split the C.I.O.
There were several other meetings with the radio priest, the second one some
two weeks later, after Homer Martin had written to Coughlin saying he wanted
to meet Henry Ford. Thomas attended the second interview to see just how far
matters had gone. At this session Coughlin for the first time launched into an
anti-Semitic tirade, accusing Rich. ard Frankensteen of being a Jew, charging
that many C.I.O. organizers were Jews, that Jews on the executive board of the
union were interfering with efforts to bring his kind of peace in the labor
field. Thomas recollected that Coughlin had protested repeatedly that he was
not anti-Semitic, yet here he was charging that Jews were responsible for many
of the C.I.O.'s activities. Hitler did the same thing Germany before he got in
power and finally shed the labor unions.
Thomas refused to attend any more sessions after this second one. What
happened between Homer Martin and the Reverend Charles E. Coughlin when Thomas
wasn't present I don't know, since Thomas told me the details of the first two
meetings. But it was shortly after this that trouble within the union started,
which, after more than a year, culminated in Martin breaking away from the
U.A.W.-C.I.O. During this period, Ford's labor spy chief, Bennett, began to
turn over large sums of money to Martin. The members of Martin's union of
course did not suspect that their "leader" was getting paid by Ford's secret
service.
After Homer Martin had left the C.I.O. he found himself with plenty of funds
to hire thugs. He supplied them with money to buy guns for raids and physical
attacks upon C.I.O. organizers.
Let me tell the story of Harry A. Elder, of St. Louis, Missouri, formerly
vice-president of Local 320 of the United Automobile Workers of America, who
was hired as a plug-ugly by Homer Martin. On the following page are excerpts
in photostatic form from Elder's affidavit which is in my possession.
By January, 1939, Martin was seeing Harry Bennett frequently. He needed some
strong-arm men, and Elder was known as one. A Martin representative called on
Elder in St. Louis to offer him a job at $50 a week and $6 a day for expenses.
Elder arrived in Detroit on February 17, 1939, and checked into the Eddystone
Hotel, where Martin was living.
Martin promptly told Elder that he wanted him to get some "boys" and some guns
and raid the Communist party headquarters on Fourteenth Street, destroy the
records, and "do plenty of damage generally." The reason for such a raid was
that the Communists' analysis of Martin's quarrel with the C.I.O. came
uncomfortably close to fact. It pointed to a deliberate split-the-union tactic
and Martin was being denounced as a suspected stoolpigeon. Three labor
organizers, Emil Mazey, John Ringwald, and Walter Reuther, were also attacking
Martin's union-busting activities, and Martin wanted them "properly taken care
of"--not killed but "just put in a hospital, a couple of arms broken, etc.""
As a starter Martin gave Elder $250 to go to St. Louis for "some boys to help
out and to get some guns."'
Elder acted as Martin's bodyguard, and throughout this period Martin was in
constant telephone and personal communication with Harry Bennett and John
Gillespie, Bennett's chief assistant. Secrecy surrounded all these
conversations and meetings, so that honest union members suspected nothing.
Whenever Martin wanted to call Bennett he left the Griswold Building and
telephoned from the Detroit Bank Building downstairs or from a booth in the
Cunningham Drug Store across the street. It was Elder's job during these calls
to stay outside the phone booth to be sure no one overheard the conversation.
In May, 1939, Martin and Elder, after a late but hearty breakfast at
Stouffer's restaurant on Washington Boulevard in Detroit, hailed a passing
taxi and instructed the driver to go to the Ford Administration Building.
Martin kept peering through the rear window of the car to be sure no one was
following him. At the Administration Building he went directly to Harry
Bennett's office. It was obviously not the first time, for the man at the desk
recognized Martin and hurried him and Elder-out of sight into Bennett's office
immediately.
As soon as the door closed, Martin brought up his union problems--just as any
paid labor spy would. (The conversation concerned the choice of a judge to sit
in a case between Martin's group and the C.I.O. I shall not give the details
here since I am mainly concerned with showing the role Coughlin played for the
Ford interests while posing as a friend of labor.)
During this meeting with Bennett Martin explained to Elder that he had wanted
to leave the C.I.O. long before the final split, but Henry Ford and Bennett
sent for him and told him they didn't want him to resign. They were quite
satisfied with him, they said. Ford personally promised to go along and give
him financial help to fight the C.I.O. Ford had smiled amiably and said, "You
can't get along without such financial help, you know."
When the discussion drew to a close Martin said he needed $3,500.
"Some $4,000 has been taken out of the fund this morning," said Bennett and
added that when he found out how much was in the fund he would communicate
with him. Bennett was obviously too shrewd to make payments in the presence of
a third person, and he apparently didn't like Martin's telling what Ford had
said, because he warned both of them, quietly but effectively, that the
conversations in his office were to be kept strictly secret. "If any. one lets
this leak out," he added, "he'll be taken care of."
The return to union headquarters was made in a Ford Company car placed at
their disposal. The driver was told to stop near the Book-Cadillac Hotel to
let them out, and they walked the short distance to the Griswold Building. On
the trip back Martin confided that he couldn't have run his union if Henry
Ford hadn't given him help.
The following day John Gillespie, Harry Bennett's chief aide, called upon
Martin at the Eddystone Hotel. Elder was instructed to stand outside the door
to keep anyone from walking in or overhearing the conversation. After fifteen
or twenty minutes Gillespie left, and Martin came out striking his fist
against the palm of his hand in glee. "Boy, I got it, I got it!" he exclaimed.
Martin showed his bodyguard a stack of bills about two inches high. The top
was a twenty and the packets were flat, as if the bank had handed them out as
they came. The bands were still around them.
Throughout this period, Martin was in constant touch with Coughlin, who
apparently tried to play another angle which would give him a direct hold on
Martin. On several occasions the radio priest offered him a building estimated
to be worth beween $50,000 and $150,000 for use as union headquarters. Martin
was afraid of it; there were too many strings attached to the offer. Then,
too, some honest union members might ask too many ques. tions, especially if
it leaked out that Ford was behind Coughlin.
Let's see what all of this adds up to by now. To split the C.I.O. auto
workers' union by an internal fight just when it was making considerable
progress in organizing the Ford plant, would obviously be good tactics for
anyone who wanted to halt the unionizing drive. To start an "independent"
union would also be a first-rate way to confuse the workers and prevent their
forming a solid front. If religious elements could be persuaded that the
growing union was directed by "atheists," if patriotic Americana were
convinced that the union leaders were "reds" and "agents of Moscow," many auto
workers would be kept from even joining. Smart manufacturers, and the
directors of their labor spy divisions, pay people to create these
"smokescreens" while they pose as good union members or "friends of labor."
Oddly enough, we find that the Reverend Charles E. Coughlin in his efforts "to
help labor" has done precisely such things as those for which labor spier, and
disrupters are paid. Again, oddly enough, his broadcasts even today are
devoted to attacking the C.I.O., which has not ceased its efforts to organize
the auto workers.
The story of Coughlin's strange tie-ups and his mysterious financial backing
does not end here.
Coughlin's anti-Semitic activities, his dissemination of Nazi propaganda
emanating from Germany, and his intense anti-union efforts coincide strangely
with some of Henry Ford's interests and activities. Coincidences occur so
often, in fact, as to suggest a possible source of Coughlin's support. I once
jotted down some of them in an effort to clarify the picture in my own mind:
1. The Dearborn Independent, owned by Henry Ford and edited by William J.
Cameron, published the Protocols of the Elders of Zion, which had been
repeatedly exposed as a forgery. This anti-Semitic propaganda, disseminated by
one of America's richest men, shocked and horrified all religious and racial
groups. Ford was denounced and his automobile boycotted until the Ford Motor
Company began to feel the pinch. To end this boycott and the denunciations
Ford finally issued a public apology to the Jews and in 1927 discontinued
publishing the Dearborn Independent. But, after this public apology, Ford made
the editor of this newspaper his private secretary. Cameron never left Ford's
employ and is today the Ford Company's official spokesman over the air and to
the press.
Coughlin revived the Protocols and started an intensive anti-Semitic campaign.
2. In 1933, when Hitler got control over Germany, he sent swarms of propaganda
agents to the United States, one of their chief activities being the
dissemination of racial and religious hatred. This was developed to a high
point of efficiency by the German-American Bund. The leader of the Bund, Fritz
Kuhn, recently sentenced to prison as a common thief, worked at the Ford
plant. While he was on the Ford payroll the Bund leader traveled around the
United States organizing branches, with Henry Ford's full knowledge. Both Jews
and Christians protested to Ford about these un-American activities. The
protests were ignored.
When I was investigating Nazi agents' attempts to get a foothold in Mexico, I
came across the Ford trail again. Hermann Schwinn, Nazi leader for the West
Coast, helped organize the Mexican Gold Shirts headed by General Nicolis
Rodriguez. In November, 1935, General Rodriguez thought he had sufficient
power to seize the Mexican Government by force. He expected bloodshed and
needed ambulances to take care of the wounded. On November 19, 1935, he wrote
to Julio Brunet, manager of the Ford offices in Mexico City, asking for the
ambulances, which were supplied. A number of persons were killed and wounded
in this attempted putsch. In 1939 I published the letters written to Brunet by
Rodriguez. So far as I know, Brunet was not even reprimanded by Ford and
continued holding his job.
Coughlin, as I shall show in detail later, has mysterious contacts with Nazi
agents.
3. Shortly after Fritz Kuhn went to work at the Ford plant William J. Cameron,
under whose editorship the Protocols were published, organized the Anglo-Saxon
Federation, with headquarters in Chicago and Detroit. This organization
promptly arranged speaking engagements for a pretty collection of anti-Semitic
propagandists and started to disseminate the Protocols. Several of these were
real clergymen, others masqueraded as ministers.
When public opinion was again aroused at Cameron's activities, the Anglo-Saxon
Federation's headquarters were moved to the residence of Dr. Howard Rand at
Haverhill, Massachusetts, so that Ford wouldn't be tied up with it, but Rand
flies regularly to Detroit to confer with Cameron.
Gerald Winrod, a phony minister who is one of the chief Nazi agents and
propagandists in the United States, raised money to launch a Nazi propaganda
"news service." One of the persons from whom he got money was William J.
Cameron.
4. The Nazi government, through its Bund in this country, did its utmost to
defeat Roosevelt in the 1936 election. Just before this election Coughlin, who
had been praising Roosevelt and the New Deal to the skies, suddenly switched
into vitriolic attacks against them.
In preparation for this anti-Roosevelt campaign Coughlin started Social
Justice magazine, with an initial investment of $1,000. It costs around half a
million dollars a year to run the magazine. Since it was founded the
publication has run up a healthy deficit. The loss now averages between
$60,000 and $75,000 a year which is met by somebody.
Simultaneously with launching this paper Coughlin extended his time on the
air, seeking more and more radio stations. Contributions from his listeners to
the Radio League of the Little Flower far from equal the costs of the stations
in his network. This difference is met by somebody.
The director of the Coughlin-Lemke party for the 1936 campaign was Newton
Jenkins, who met secretly with Nazi agents and propagandists.
Henry Ford received a medal from Hitler--the highest honor any foreigner can
be given by the Nazi state. No explanation of what Ford ever did to merit this
Nazi honor has ever come either from Germany or from Ford himself.
5. The C.I.O. launched a drive to organize the Ford plant. Coughlin promptly
denounced the C.I.O. as "red," "communist," etc.
Coughlin actively attempted to split the C.I.O. by persuading Homer Martin,
now an A.F. of L. big shot to leave the C.I.O. and start his own union. A few
months after he had had several sessions with the radio priest, Martin was
getting large sums from Harry Bennett, head of the Ford labor spy
organization.
Ford agents disseminate Coughlin's radio propaganda.
All of these, of course, may be only coincidences (and this isn't the complete
list by any means) but it seems to me that there are just too many
coincidences.
The story of Coughlin's strange tie-ups, of his mysterious financial backing,
does not end here. Its ramifications are even more sinister, for they are
closely linked with those of secret foreign agents and propagandists working
for Nazi Germany 'in the United States.
pp.106-132
-----
Aloha, He'Ping,
Om, Shalom, Salaam.
Em Hotep, Peace Be,
Omnia Bona Bonis,
All My Relations.
Adieu, Adios, Aloha.
Amen.
Roads End
Kris
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