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Anderson's charges and the memo set Washington buzzing with rumor and speculation. It was no secret in the capital that ITT had given $100,000 -through its subsidiary the Sheraton Corp.-to the G.O.P. and was considering giving more. It was also known that the money for the convention had been pledged only eight days before the Justice Department's favorable ruling. At the time, the department's Antitrust Division was under Richard McLaren, an exceptionally tough prosecutor who is now a federal judge in Chicago. The division had been furiously attacking ITT's earlier...

Author: /time Magazine | Title: THE ADMINISTRATION: The ITT Affair | 3/13/1972 | See Source »

...G.O.P. responded to the Anderson columns with slightly red-faced outrage. Mitchell flatly denied any prior knowledge of ITT underwriting for the convention. Kleindienst, who had been expecting routine confirmation by the Senate next week, quickly requested that the Senate Judiciary Committee, which had earlier given him a 13-0 vote of approval, reopen public hearings on his qualifications so that he might refute the charges...

Author: /time Magazine | Title: THE ADMINISTRATION: The ITT Affair | 3/13/1972 | See Source »

Crucial Concession. Kleindienst showed up before the committee accompanied by McLaren and Rohatyn. All three denied any wrongdoing. Kleindienst insisted that he knew nothing about the ITT convention contribution until it became public knowledge "on or about Dec. 3" of last year. He also said that he had had nothing to do with the negotiation of the settlement agreed to by McLaren's Antitrust Division. He did, though, admit to several meetings with Rohatyn to discuss "some of the economic consequences" of the suit-meaning the impact on the stock market if the ITT-Hartford merger fell through...

Author: /time Magazine | Title: THE ADMINISTRATION: The ITT Affair | 3/13/1972 | See Source »

...testimony by Kleindienst, Rohatyn and McLaren was not too well synchronized. In his statement, Kleindienst conceded that, besides Rohatyn, he knew one other ITT employee, a neighbor named John Ryan, who was deputy director of the corporation's Washington office, and whom he had met a few times at parties. But, he said, they had never discussed ITT's troubles with the Antitrust Division. Later, while McLaren was answering questions, Rohatyn and Kleindienst held a whispered consultation, after which Kleindienst cut off the questioning to announce: "My memory has been refreshed." Yes, he said, he had talked...

Author: /time Magazine | Title: THE ADMINISTRATION: The ITT Affair | 3/13/1972 | See Source »

...next day's hearing, Committee Member Ted Kennedy produced a letter written to Kleindienst by Reuben Robertson, an associate of Consumer Crusader Ralph Nader, questioning whether there was any connection between the ITT settlement and the company's gift to the G.O.P. Kennedy also produced the reply, dated Sept. 22, 1971, and written by McLaren, insisting that there was no such connection. Kennedy then pointed out that in earlier testimony both men had said that the first they had known of ITT's convention contribution was when it became public, "on or about Dec. 3." Yet here...

Author: /time Magazine | Title: THE ADMINISTRATION: The ITT Affair | 3/13/1972 | See Source »

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