Word: itt
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Kleindienst and McLaren met on April 19, 1971, and agreed that there should be no delay; the appeal would be filed that day. Kleindienst so informed New York Lawyer Edward Walsh, who was helping to advise ITT. Within hours Kleindienst received a telephone call from John Ehrlichman, then Nixon's top domestic affairs adviser. Ehrlichman said the President was "directing" Kleindienst not to file any appeal at all. Kleindienst said he could not agree with this. He explained that the decision to appeal had been made by McLaren and Griswold and declared that it would be carried out. Snapped...
...Indiscretion. The appeal then was filed as originally planned. Before it was heard by the Supreme Court, however, the Justice Department worked out an out-of-court settlement allowing ITT to retain the Hartford firm-its priority aim-but to divest itself of most of Grinnell Corp. and all of Canteen Corp. Some outside business and legal experts felt that a Supreme Court decision might have been rougher on ITT. But White House and Justice Department officials have called it a good settlement for the Government, a judgment with which fired Special Prosecutor Archibald Cox concurs...
When the story of Nixon's phone call first broke in the New York Times, the newspaper did not reveal its sources. But Cox had been told about the conversations by Kleindienst as his staff probed the whole ITT affair. Cox conceded that he might have been an indirect source of the Times story because he had "carelessly" mentioned the Nixon intervention to two Democratic Senators, Edward Kennedy and Philip Hart, and some of their assistants. He said he felt terrible about this. The White House eagerly pounced on Cox and his staff, calling the action "an inexcusable breach...
...Senate Judiciary Committee promptly announced that it would reopen hearings on the ITT matter. Most immediately on the spot is Kleindienst, who was asked about White House influence on the ITT decisions when he sought confirmation as Attorney General in March 1972. Said he at that time: "I was not interfered with by anybody at the White House. I was not pressured. I was not directed." But Kleindienst insisted last week that he had not perjured himself, since he thought the committee questions were aimed at the later out-of-court negotiations with ITT rather than the earlier decision...
...special prosecutor's staff presumably will continue to investigate the matter also. Apart from possible perjury charges, the more serious issue remains the question of whether the President intervened on behalf of ITT in return for the ITT political contribution pledge-a possibility the White House heatedly denies...