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...public. Most companies let the matter drop at that point. Some exceptions: Ashland Oil chose to make Chairman Orin Atkins and two other executives pay the company $325,000 from their own pockets, and 3M got several officers, including former Chairmen Bert Cross and Harry Heltzer, to give back $480,000. Thomas V. Jones resigned as chairman of Northrop and is supposed to be replaced as president no later than June 16; after that, he may-or may not-stay on as chief executive. Gulf fired Chairman Bob R. Dorsey, even though his degree of knowledge of the slush fund...

Author: /time Magazine | Title: SCANDALS: A Record of Corporate Corruption | 2/23/1976 | See Source »

...episode is all the more poignant because Heltzer, Cross and Hansen were held in highest esteem in the tightly knit and circumspect business community of Minneapolis-St. Paul. And the 3M Co., Minnesota's largest employer, prides itself on its finely developed sense of civic responsibility. Actually, 3M's travail is a classic example of the post-Watergate traumas that have plagued many U.S.companies that made illegal political campaign contributions...

Author: /time Magazine | Title: Business: The High Price of Illegal Gifts | 3/24/1975 | See Source »

...submit the names of likely recipients to Bert Cross, who was chief executive officer from 1963 to 1970. Cross approved each gift. Hansen kept the cash in an office safe and then gave the money to Bennett, who passed it on to the approved candidates or their emissaries. When Heltzer succeeded Cross in 1970, he carried on the practice. He was under the impression, he testified earlier, that the money came from private contributions by 3M executives. "I know I should have suspected that these were company funds," Heltzer now concedes. "But I didn't ask the question...

Author: /time Magazine | Title: Business: The High Price of Illegal Gifts | 3/24/1975 | See Source »

Then the SEC filed a civil complaint against Heltzer, Hansen and Cross for falsifying company records; the men settled by signing a consent decree. A fed eral grand jury indicted 3M, Hansen and Cross on charges of tax fraud. That case is still pending. Unpaid taxes on the illegal contributions could cost 3M as much as $9 million...

Author: /time Magazine | Title: Business: The High Price of Illegal Gifts | 3/24/1975 | See Source »

...cozy and inbred company, has not lost its prized family spirit, which some critics say led executives to place loyalty to the company above respect for the law in the campaign-fund scandals. Five men - Heltzer, Cross, Hansen, Bennett and former Chairman William McKnight - have agreed to pay the company $475,000 to settle the Bonderman suit. McKnight offered to contribute $300,000 of his own funds, even though he was not implicated. "These other men don't have the kind of money I do," explained McKnight, now 87, whose 3M holdings are worth about $200 million...

Author: /time Magazine | Title: Business: The High Price of Illegal Gifts | 3/24/1975 | See Source »

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