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tv   Book TV  CSPAN  September 12, 2009 6:00pm-7:00pm EDT

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2004, us, i organized people for many months in my free time, before i start working, they organized us, you have the right to do whatever you have to o, your movies, your family, you have the right to -- you have the right to wear a union shared. .lead ..
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before the contract, the first trace their wages for three years, so we wh to $3 we said we don't want a bonus. what we want is to cvert 80% ofur, last year's bonus and wage so me people, they made herike $4 loss $1.25, which is like $5 almost forhe three years. and we started growing, as
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leers. we have a grievance committee, grievance meetings with the company. it involves the president, vice president, chief stewards. we have made the stewards art filing grievances and it is the way we start learning how to fight back, and i alway talk to the people, when i talk to the people in the local. it is not like everybody--nd the news and evething, and when we have peace with the coany and union, when it is not a struggle by the stations, the workers are cell stop fighting each other. we are like a group of fighting each other.
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that is why i feel each time, kind of a big struggle, a big problem with us, we respond as brothers and sisters. all the time that happens and i hear from them, they say your local is the most controversial we have, but when they fl something, everyone maintains like nobody. >> on that note, maybee should wrap up before peoe feel like they are stuck into giving a contribution. >> terry i imagine you would be hay to sig your book for folks who mit want to purchase it. its available right there at the stop smiling table and we alsoave copies of the book i mentioned icj hawkings and steven asch be, and also a book
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by the executive director of the organization i work four, kim bobo whose b, how millions of americans are not getting paid and what we ca do about it is also available for sale and it is interesting timing that just today a bill was introduced in congress called, the wage theft prevention act. it was introduced by congressman henry miller of california who chairs the house labor and educion committee. you are going to be hearing a lotore about this issue of wage theft. the republican windows and doors struggle was actually one part because the law that was violated by the company and shutting down without giving either notice or 60 days' severance pay, that is a violation of u.s. labor law in form of wage theft, one of many forms of wage theft and arise
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chicago are launching this national campaign to end wage theft. and today was a historic day in that campaign in this legislation being introduced to congress, so if anybody is interested in finding out more about what you can do to end wage that, what you can do to support th kind of struggles that armaldo is involved then, please visit the table in the back of the room over there where we have members of arise chicago, the arise chicago workers center and intfaith wrker justice. you can get on our mailing list. you can buy a copy of kim bobo's bookut first and foremost fisher to gea copy of ri lyderson's outanding book "revolt on goose island" the chicago factory takeover and what it says about the economic crisis. thanks so much. [applause]
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>> thank you guys. >> hava kari lyderson staff writer "the washington post" and co-author of shoot an iraqi which was named best book of 2008 by bookist. she is also author of of the sea and io the fire. for mkre information visit "washington post."com. >> kurt eichenwald appeared booknotes in 2000 to talk about his book,the informant." it is an account of the coaboration of the justice department and the high level informant who ause the archer daniels midland corp. with stealingustomers money. the program is an hour and is the first of a two-part series. c-span: kurt eichenwald, author of "the informant: a true story," at the top of your book it says, 'the fbi was ready to >> guest: that the informant, that their cooperatingitness,
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ma whitacre, was, for lack of a bett term, losing his mind; o one level. on the second level it is the storyf how that individual comment during the entire time he was working with the government and working as a senior officer at the company was simneously losing his mind. and ultimately that sent the case pinning outf control in ways that even while i was going throught, even while i was living through it as a reporter, were pretty hard to believe. c-span: do you remember the first time thi sto came to your desk? >> guest: it was interesting. the first time the story came up was, there had beeraids by the fbi on five compani and it had really attracted a lot of attention. then there was an artle in
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"the wall street journal" that revealed that the cooperating witness was this very senior ranking executive at adm, and that w tantalizing because adm, particularlyhe people in washington, is known as an exceptionally powerful an exceptionally secretive company. the idea that mebody was o there recording everyone inside without their knowledge was certainly tempting. but, for me, the moment where i really decided i had to be in on the story because at the time it s breaking i was actually out of town, i was in the houston airport, walkingo my plane to daas and there was a magazine stand that had the cover of fortune magazine, with this gentleman's picture, mark whitaker. his picture was on the cover and
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his words my life is a mall with the fbi. i literally stopped and walked over in and bought the magazine because i write about criminal investigations f livijg in this was the first time i had ever seen six weeks after the raid the cooperating witness stepping forward them basically being a cover boy for an aicle where he spilled the secrets of what was going on in the investigatn and i read the article on the way from houston to dallas several timesnd by the time i landed, called mike, decided that was it, ts was a case that was unlike any other. largely because the witne was doing what he was doing and i called my bos of the "new york times" and said if nobody else wants to do this story i would really lovto do it. c-span: where we jubes? >> guest i was based in your and when i got back i picked up the story. c-span: what year was this? >> guest: it was august of
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1995 and i ultimaty met with mark whitaker who is "the informant" of the book title. c-span: where is mark whitaker today? >> guest: mark whitaker has serving a prison sentence in south carolina, theederal prison camp in south carolina. c-span: wendy go to prison? >> guest: he went to prison in 1998. he is expected to come out or leased under his sentence in 2008. and he is a person who at first everybody thought he was going to be the hero and then it ended up that the whole time he was working for the fbi he was also steang millions of dollars from the very company they were investigating, laundering the money in swiss bank accounts. c-span: who is blaine had an
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address? >> guest: dewayne andreas is a giant on the political international landscape. he is a fellow who most americans probably haven't heard of it, but most policians probably can ner forget. this is a fellow hill whenever they are talking about campaign finance reformou are our is going to hear his name comes up. dating back to the time of thomas duly has bend a major contributor to both political parties. every white house occupants going bk to ilyse kennedy has been a close association with dwayne andrea and she is had an enormous iact on the laws of this country as they have been shea. his voice has been heard, and there's not a year that goe by where they don't debatsuch
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standards as adding ethanol to gasoline or the biggest benefit for that role is people who say flat out we are giving adm, we are giving dwayne andrea billions of dollars a year. but, his level of input, his level of influence is unprecedend. c-span: there is anvolution in your book two, bob dole and dwayne andrea and david brinkley all getting together in a certain placin florida. >> guest: a hotel own by dwayne andrea. he gain control of it many years ago and became something for lack of a better term a local realtor for the political powerful and started but finding apartments, helping people get inside the old run apartments, and for his friends among the powerful in washington both in
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e political sphere like bob dole, like bob strau andn the journalistic speier white david brinkley. c-span: david brinkley does the ad setter seen on the morning shows on sunday morning. what is that all about? >> guest: atm, if anybody has heard of them outside of washington usually and watching the programs that are most viewed i washington, this week with david brinkley was sponred by adm for man years. they purposefully advertised on the programs that thought, that ar very widely watched among the people in the halls of the power in washington and so after innumerable years of sponsoring this week with davidrinkley, david brinkley retired and became a spokesman for adm. c-span: where is dwayne andreas today? >> gst: dwayne andreas
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recites in decatur, illinois megrahi is chairman emeritus of adm and he just recently was reelected to the board o directs and played a role in the operations of the company. c-span: holding see? >> guest: he is in his 80s. he ia man who is winding down significantly. c-span: nick andreas. >> guest: nick andreas was born to power. his godfath was hubert humphrey. also a very good friend of dewayne's and nick had always been destined to be his father's successo the man who would take the throne, the man who would gain control of this corporate and politic behemoth, and ultimately got pickedp and caught in the takings that took place in the company, and was recorded in
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engaging in both criminal conspiracies as well as actions that of a ard of directors to quince and perhaps suggest a resignation, discussio of female executives, blatantly sexist discussions and nec is now serving a three-year prison sentence, which beg some time earlier last year. >> you say a couple of times in your book there's a big statue of ronald reagan outside of the adm plant inecatur. how did that get there? >> guest: reagan came for a visit tohe plant in 1984 and dwayne andreas decided it would be a wonderful idea to basically build a monument so that basically solidifying his very close relationship with reagan. reagan had been raised in dixon,
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illinois which really is a t not mucunlike decatur, so dwayne andreas who like to talk about how when the president and he were boys from the midwest and when it came to decatur, ey built this multiton statue of reegan which stands to this day. the vit from reagan was one of the biggest things that hit decatur in terms of famous peoplend to gorbachev came to visit dwayne andreas years later. c-span: there a several mentions of a mhattan apartment for dwayne andreas. >> guest: dewayne is not, you ow he lives in decar illinois but he is not a h. this is a guy who has an enormous amount of power and an enormous amount of money. he has homes and multiple locations. the home in manhattan ithe
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reflection of the fact that they are here and not. there in manhattan a lot, and so he jets between manhattan and florid and decatur. c-span: how long has been with adm? >> guest: he joined adm, he was brought into a in the late 1960's when the company was really starting to fall art. they weren't able to pay their dividends. theyeren't able to report numbers that would make their shareholdersappy and somebody came uwith a great idea that, there's this fellow dwayne andreas that at at point w already a giant in the agricultural industry, and he has had a lot of influence. he knows a lot of people, he i fries with conferee, he is friends with duly. he has a lot of friends and always has. why n't we bring him in, so a large block of shares were sold
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to dwayne andreas. he was placed on the board and ino time he was the chairman and he moved the company from its operations which were then in minnesota to decatur illinois. c-span: what does adm who do? >> guest: adms company that all of us do business with every day of the week, whether we know it or want to or not. if you pick up any packaged foods, a you turn to the ingredients, he will look of those extremely hard to pronounced itemsn each description. those are made by adm, a lot of them. at adm takes farm staples, wheat, soybeans, corn, crushes them up and strips that every st ingredient they can think of. the way the company workedp until the late 10's, it was purely a crusher.
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it would crush corn, it would crush all of tse staples and th would make things like citric acid which you will find in soda pop, pepsi. they make wheat flour. they make sodium alumina. they make all of the little ingredients so you end u finding their food and everything from pepperoni to popsicles. what i have always found amazing is babies that are having soy formula are drinking adm products and once they graduate to gerber food, they still are so the get raised onhe taste of adm. in the late 1980's they decided the future of the business was a form of bioengineering, not creating a new food by using bacteria which specific job to create other ingredients and the
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first one that went into was something called lysine which is used to fatten up pigs and chickens by adding it to their feet. and that requires a particular bacteria which goes into wide gigantic ferment there. you feed them corn dextrose or leased adm peds them corn dextrose and they have bacteria that converts that dexose into lysine, which is then packaged and sold to the farmers and goes to the chickens and ultimately pay for it ourselves when we by air chicken nuggets. c-span: how big of gro business do they do every year? >> guest: it is a $20 billion aear business. c-span: how many employees? >> guest: i don't know. c-span: how many plants around the world? >> guest: their plants are everywhe. the exact number i don't know. that i the kindf question i would tu to the fec filings to look up but they are in asia,
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they a in europe, the arvind latin america. the plants are just in the hundreds. c-span: where is decatur illinois located? >> guest: decatur is snap back in the middle of the country. and its a town that is really a refleion of the companies that are there. what i interesng is the town has had a lot of problems with the abm price-fixing scandals followed very quickly by some ises that in the local schools some racial issues that bught the reverend jesse jackson into town, and immediately after that, we had the firestone problems with the recalls of the tires and tse all came from the plant in decatur, illinois, so this is a town that has been
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hit by natiol scandal after national scandal and it is kind of part. i' talked to a lot of people in decatur and is kind of hard on them. it is sti largely a blue-collar and agricultural community and suddenly they hammerof the world a focused on them. it keeps happening again and again and again. c-span: how many times have you been there? >> guest: over theasfive years i've certainly lost count. i have been there a number of times. there is actually a whole corridor her right around decatur, springfield, champagne and urbana where a lot of these events took place. the fbi was thin champagne and springfield and decatur. the court hou was in no urbana so there is a lot o driving on interstate 72 and is a long, open drive for you see
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cornfields, soybeans depending on the tim of year and the driver got there used to it. c-span: where you from originally? >> guest: i was raised in dallas, texas andow live outside of new york city. c-span: where did you go to college? how long did youeen with the "new york times"? >> guest: for 16 years. c-span: what got you interesd in wring? >> guest: is ieresting. what got me intested in writing and it will sound cliche, writing for the school paper, but the biggest thing that got me interested in writing was h boring a thought the school paper was. i remember i it just brennan artie about parent night which i thought was probably the most boring thing in the world, and was talking to a teacher, mike sheppard hill said i really want to write things that are more interesting. he said why don't you?
quote
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done under his encouragement i went off and wrote an article about laetrile and the school paper and thought that was kind of interesting. that started me down a path of writing about topics that apaled to me and ultimately i realizeds a writer you can look at anything in do anything. you can if you decide you are interested in politics, the reporting for politics is the same as the reporting for a scandal or repoing have a feature story and you just have to apply it. so i started eventually at the time i started jumping around from tic to topic of just things that caught my fancy. c-span: bob strauss, how does he really to the adm corp.? >> guest: bob strauss, starting in the late 1960's when he and dwayne andreas went to the same fund-raiser for a
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senator from texas, bob strauss and dwayne andreas had been best of friends. they would speak by phone all the time and dwayne ultimately had him nominated to be a member of the board of directorsor him. in the course of this investigation, which was almost shakespearean, i mean you had the chairman's father of the immense power standing by as his son subject to a criminal investigation and the son who he had chosen to be his successor. bob strauss beatty-- played a behind-the-scenes role in bob strauss's way of doing business. basically in terms of smoothing the way toward settlement between admnd the government, there was a fact-- faction that
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wanted to fight this caseo the debt. they had a lot of good reasons and when they looked at the case, you had "the informant," the cooperating witness, whitaker, had blown up. i mean he had been found to be stealing millions of dollars. he was under criminal best casion himself. there was a possibility, far-fetched but a possibility thathe government might not even be able to introduce the audio and videotape of the criminal activity in my not b able to introduce it i a court. so there was a faction within adm that wafted toight this to the end. wasverybody else who s in the room-- adm did not conspire with markhitaker. they conspired with japanese corporationsnd european executives and korean executives and the government cut deals
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with them and their testimony would get the tapes. adm by that time had cut its own deal, but nick andreas and one of his colleagues terry wilson, did not. they went to trial and were ultimately convicted. c-span: terry wilson and dwayne aneas are in prison where? >> guest: they are both in mimum security prison, which for the life of me i had forgotten the name of the day are the camps. c-span: i remember reing a story about when they were-- and they were going to beent to wisconsan. have you met either one of these ntlemen? >> guest: i have to be caref how i answer those questions. i've certainly met them in the context of the trial so i have puicly seen them aalk to
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them. c-span: why do you have to be careful? >> guest: one of the tngs about being investigated at reporter is to make a lot of promises promises about who you are going to tell whathey are saying or what whether they spoke to you at all. a problem with that is if somebody speaks to me or doesn't speak to me i really can' say because if you aske what about person a and i say i will speak to him and what about person b, i can answerhat question. am just giving away so the rule i always livey is if i haven't for some other reason rebuild that i've had discusons with this person or if those discussions did not take lace in a public placei tend not to answer it and just say i really can't discuss sources of informati for meetings or whatever and it is very important, because
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ultimately i am nothing more than one information you get, and there have been many a long night with corporate insiders, whistle-blowers in the rest in their homes a parke cars, talking to them about protecting their identity, talking to them about greater trees and talking to them abou why i can be trusted, and this isort of the timate payf on that deal. that is the obligati that i undertake every time i do a story. c-span: you y in here that you had 800 hours of interviews. did nick andreas who was going to be the chairman of the boa of adm, what impact did it have on him that you know of, personally? >> guest: on his personal
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life? c-span: other thanhe fact that he was in prison, what was his reaction in gettingaught, getting indictednd being convicted? >> gue: once you review the case, once you see what nick did,t is impossible not to walk away and say, not only is this g a crack, not only is this guy enged in a scheme to defraud everyone around this country, but given his personal trades, given the clearly sexist attudes he had, that in a modern corporation he is really not fit to be a senior executive. neck apparently did not see it that way. from his perspective he was someone who had been trapped,
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and trapped by mark whitaker, that he wasomebody who had been manipulated into a situation, that he was not involved in any iegal act remedies and as far as he was concerned, everything he was doing was perfectly proper. now, you look at the tapes and that i sply laughable. t nick andreas, his marriage has survived, his family stood by him. c-span: how much money w left with? >> guest: quite ait, tens of billions of dollars. c-span: how about terry wilson? >> guest: terry wilson ultimately is the one who went downn flames. he at any point could get cut a al. he w the guy they had o tape more than anyone ee. he washe guy who would sit there saying some of the jcs conspiracy "of all. watch your telephones and
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competitors are friends and the customers arour enemies. and the prosecutors, when the case started falling apart, or hungry, eager to make a deal with terry wilson, but he wouldn't do it. fromis perspective, he had moral obligation. he was a man who had, he had some personal family problems that the and traces had helped him with over the years and he made this commitment that he is not gog to tell on it. c-span: any evidence that dwayne andreas knew what his son was doing? >> guest: the government chose not to bring charges. and there certainly was not enough evidence to support a chge based on their riews of the formation that i saw. you do however have to wonder
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then, this was not an activity th adm, that was a quiet secret. this was not something where they were fixing prices in half lysine andowhere else. they were involved in it i lysine and the were involved in citric acid, and they were involved i it and certainly there was evidence they were involved with g and certainly evidence that were involved with sodium quiken made. and y really have to stand back and wonder, where did all this start and how could all this be going on without the eplicit or implicit knowledge of the chairman? i can't obviously conclude one way or the other but you certainly are in a situation where if he didn't know it is almost as bad as if he did because it was going on everywhere. c-span: how does the former
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prime minister of canada relates to the story? >> guest: brian mulroney was named as the chairman, was a rehm named to the adm board of directors as the co-chairman of the special committee of directors who were charged with settling this case investigating this case, basically handling the case for the comny. and he was man in a very complex situation because as i said the evidence was overwhelming that he was a very close cfidante of dwayne andreas and you were talking about the chairman's son was going to go to jail, so he was definitely walking throu a very may's. c-span: ross johnson.
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>. guest: and man named made famous by a book and former rjr nabisco. and he was named as an adm director. he was a member of the special committee, and he also pled a role in the ultimate outcome. c-span: go back to where we were talking about politics earlier, a little viette you have in your book about laden man named howard buffett and dick durbin. you found the dick durbin part of this and i'm not sure if this ever been the knowledge it was sent to you? >>uest: we are talking about the football game? c-span: the football tickets. >> guest: there was a big knowledge ming, i believe it says in the book there was an acknowledgement that they went to the game but the was not an acknowledgement that they solicited tickets and basically what the story is is that howard ffett who is the son of warren
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buffett, and this book really as an all-star cast. c-span: who iwarren buffett? >> guest: warren buffett is the famed investor, whose biographies are snapped up by eryone trying to figure out w berkshire hathaway made all of its billions. he is the man who probably more than anyone else, and it this point he is the either wealthiest man or the second wealthiest man probably than anyone else the age of modern insting& and his son, howard, was assistant to the chairman, dwayne andreas. in this story, in this event that takes place in the book there was a point whe they were discussing going to chicago bears game. dick durbin and howard buffett. now, whether a reqst was
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actually made or not is not quite clear. it is clear that there was a belief that the reqst was made, @nd adm and howard buffett , this kind of thing might violate some ethics rules so they went had a lawyer look into it and a lawyer came back and said, fine as long as the congressman pays for half of it and buffett called durbin and said you are going to have to pay for half of it and apparely he was very gracious and said thank you very much. it was notn issue for him apparently he was not trying to get a free ticket but dwayne andreas had a different reaction. c-span: i've got the quote on the page. you are useless to adm if y have to ask for an attorney's opinion every time you get a request. earlier he saidhe congressman asking to do something, y do
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it if there's something wrong with it, that is his problem. how do you find that-- where you get that kind of a quote? >>uest: that quote is originally referenced-- howard buffett was interviewed a couple ofimes by the fbi, and whenever an fbi agent interviews a witness, theyake notes, which are ultimately transcribed into a document called a 302. now, in the course of reporting fothis book i obtained virtually all 302's if that were collected, both for the antitrust investigation and the subsequent fraud investigation. buffett's interviews were part of the antitrust investigation and he vy early on, within the rst week of after the raids, sat down with the fbi to times
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and i think dhat story comes from the second time and he retold the story, and quoted the material so that was the original source material. c-sp: is he stillhere >> guest: howard buffett resied basically after the second fbi interview. he was uncomfortable with the way ings we going at adm, and what wasdd is that wld occur, as i mention whitaker was an individual who in the course of this whole thing was losing his mind. whitaker had come up prior to the raid, notified a number nf people inside adm that the fb was investigating the company, that he was working as a cooperating witness,hat they were going to be visit on june 271995 he told ward bufett at 6:00 and buffett
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didn't quite know what to make of this when he was told it. i have heard the story he went out and rode on a tractor. what do you do? what youo when you are in thi position? how does he know of whitaker is telling the truth and at 6:00 on june 27th imam of the trees came. the doorbell rang, there's an fbi agents, have and whitaker was telling a lot of information about the investigation and buffett became increasingly uncomfortable with what he was heing and decided to resign. c-span: how big of a deal is this? put it in perspective for people that may not have paid any attention to this story and defineow mucwas adm's fine? >> guest: adm's fine was $100 million the bear in mind
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that is a deal. it was a deal because adm ofd up evidence against other corporations involved in another price-fixing conspiracy, and so they we given a break, a plea barin so ultimately how big a deal with this is coming in the antitrust pertive is the biggest there is. adm at that point was the largest fine ever imposed in a ice-fixing case. now, where this gets more important, i write about corporate crime for a living and i have the pick of the litter on what i want to choose. i can write a antitrust, i can write about virtual anything. this is the one that i chose for a book for a couple of reasons. one, the story in and of itself is so bizarre as to border on the surreal at times, and two,
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because when you get right down to it this was t biggest white-collar conspiracy ever exposed by the federal government. you have to look not just wt happened to adm but wha happenedo all of the conspirators. the japanese companies cut deals and adm cut a deal and then the european companies, they may mothers and the dominez kp falling and falling and falling. in the last four years it started off with adm paying $100 million you now have a half a billion dollars and the domino is knocking over somebody else. the interesting thing abo price-fixing if you are going to the kind of person the price fixes you are not going to say only in this product, we are not going to do it in our other products. what is interesting is you have different competitors and the
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product line so he if you are price-fixingroduct a and they neal yield, you can g and turn and named everybody you are doing illegal busins within product b hill has the same situation and so at this point there are se 30 grand juries looking into price fixing in the feed and fooadditives business. digging up an enormous amount of information. but the couple of other small, not small the things to conct e dots. ann bingaman had the wife of senator jeff bingaman of new mexico. what role does she play? >> guest: ann bingaman was the head of the antitrust investigation throughout most of these events. he was the person who supervised the antitrust division starting in washington and going down to the chicago field office and
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ultimately she is also the person-- there are quite a number of power plays to go on in this book. one of them is, there is a dispute between the local u.s. attorney in springfiehd and the antitrust division about when to do the rates, how to move forward and how to handle this, and so there are negotiations with the springfield u.s. attorney walking away from the allocations, and this sets off a firestorm in the antitrust division. this is the biggest case they have ever had a now they turn it over to springfld? there is ultimately a conference call with quite a number of people on it, where the springfield u.s. attorney remis ann bingaman, w who agreed and bgaman comes back with a series of statements that melted phoneall over the
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country about i am the assistant atrney general in se-- and i ve been appointed by the president of united states and i'm here to-- it will be over my dead kicking screening body that you get this case and that was the end of it. c-span: by theay is the john hart bloc,he former agriculture secretary under the republican administration? >> guest: john blog himself is a former farmer who is the secretary of agriculture who was named to the board after these events really blew up, after the price-fixing case was known, so his involvements was virtually nil. c-span: you also talk a little bit abo allen andreas.
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>> gue: allen andreas place to me what is a fascinating world. i am somebody who loves irony in circles and that the very beginning of the book, allen who was working in 1992 as an ecutive in the london offices of adm, and tre was this bizarre story that emerged from decatur. whitaker came in saying that he had received a telephone call from a japanese executive, saying that a japanese company had beenabotaging adm's life in plan and his japanese executive whitaker said had told him at he would reveal the identity o the saboteur and provide super bugs from japan that could reqis the virus that was being used for the sabbath tosh ihe was paid $1million from a swiss bank account. ultimately the andreas' both
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nick and dwayne say this is not something to take flying down. and they call allen. c-span: the older of all of the andreas, his son nick is the vice chairman and allen is what relationship? >> guest: allen is dwae's fifth cousin. i actually don't remember. i think it is a brother but i'e not sure. and, allen has something else that makes him a beneficl. he has a particular close contact with the cia, so they call allen in london, in this bizarre phonecall that is described in the book. c-span: first dwayne calls and says something like, do you still have your friends in london, this sort of code conversation going back and forth.
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ultimately net calls and lays out the story of the saboteur, lays out the sry of this individual, this japanese executive. c-span: made it up. >> guest: pons le is the whole story was fiction. he was a real guybut he never made the phonecall whitaker had just made it up, so he tells, nick andrea as tells allen andreas in london about this sinister phonecall that he heard about and allen goes to the cia, and says help us. the cia in turn refers, bause it is a crimil matter, it is a la enforcement matter, it is an extortion plot is centrally and they refer it to the fbi back in the united states so in n tim a couple of days actually the
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phonecallo the cia, the fbi shows up indicators sayinwhat is this about a soteur? it w so ironic that ultimately the whole sabotr story was a phony, it never happened. and then the final arony is this sets in motion the events that lead to the crimin investigation of admthat leads to the investigation of ni andreas, that knock nick andreas out of his position to take over the company, and in his place is selected allen andreas so. c-span: he is now chairman of the board. >> guest: he is now cirman. c-span: go back t ground zero. first of all what is price fixing and why is it a crime? >> guest: the easiest way to say it in my mind is the betrayal of capitalism.
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the whole concept of capitalism is that you have a bunch of companies outn the free market, competing for yr business and they wl either offerhe bt product or the best price. that then is supposed to reward the mtfficient and the most, those that do the job the best. when you have price fixing, that does not happen. the power of the consumer is dead because rather than them competing ad-to-head trying to get your business they just say forget him, let'sit down and decide what we are going to charge. c-span: is there a fams quote about the competitor in the consumer? >> guest: this is the adm quote that the competitors are our friends in the customers are our enemies. c-span thais what they would say amongst theelves, the competitor is our friend and the consumer is our enemy?
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>> guest: because the competitor wants higher pric d the consumer wants lower prices. if you are a company want higr prices so few sit down and make a deal with your competitors, you will get higher prices and the customer, no atter how much does value shopping, will still have to pay the same price. that is why it is illegal, because ultimately i undermines the system of capitalism. it undermines consumer confidence, and it creates a syst where only the powerful can survive. if you come in with, thebility to do it better, he will get crushed by the rest of the industry. c-span: to go back to the basics, this is a company that has ronald reagan statue in the front yard, a company that nick
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dreas's godfather wa her humphrey, the company where dwayne andreas bestriendsre bob strauss, bob dole koran and brinkley. did any of that have anything to do with thatreventin them from being investigated in the past? >>uest: it is interesting because there is this trend that is evint at the company. the company refuses to cooperate with a criminal invtigation of a former executive for insnce, who had resigned and had been caught up in a financialraud of his own that had complety before anyf this other stuff happen. c-span: the reason i menti ths you have a long footnote on frankel. >> guest: frankel is my longest foot know because i had to giva full explanation why i was making the statements i was making and involves citing a lot
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of internal government records. c-span: and he disagrees? >> guest: he disagrees with me but i'm doing nhing more than sang what i have been told from adm, what i've heard from directors of adm about what actually happened with frankel. there was a fraud. there was a fraud-- am sorry, there were allegations of fud. nothing was ever charged. therwere allegations of fraud. there was a criminal investigion and adm dragged its feet, didn't rely want to cooperate. now, what was d about that is that ultimately there was a, the price-fixing investigation was going on so you will notice as they read in the foot know there was a competiti between the franco investigation in the price-fixing investigation and the price-fixing investigation was the bigger case.
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you did not want to have the fbi agents trooping around the company on one investigation while there is an undercover investigation going on elsewhere, so ultimately the agents on the price-fixing case played the tmp card. c-span: you poi out right before the raid when the f was going to rid the company and i know there a l we have not talked about here, but right before the raid dwayne andreas is about to be named honorary chairman of the fbi. >> guest: there were times in the story, i trd to convey at the time how bizarre the story was. at the "new york times," how bizarre the story was, how many weird things were going on but ultimately newspapers have space limitations and can't really play the kinds of games of trees i am playing here but the fact that dwaynandreas was going to
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be named to an honorary position by an association affiliated with the fbi, i think it was two days before the fbi was going to raid his company. it was just something you couldn't make up. c-span: the security vice president of chevron is still with the company. did he have any problem? he was abo to be chaman of the academy? guest: i think he actually did. is an organization he was affiated wh and they think he actually was named to a position with that organatn. c-span: shod companies be that clos to the fbi and have that kindf relationship? >> guest: interest law enforcemt can't be a game where they set themselves up in a shell and say you know, we will waitor the information to come in. they are supposed to have contact everywhere. adm is a company that has its
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fingers and a lot of pies all over the world and law enforcement has close relationships wi merrill lynch and close relationships with all sos of companies that are spread out a just a realm of having contacts for information. now that in turn if there's er any evidence of that in turn compromises and investigation, if they said well adm is ing vestigated for price-fixing, let's not do that investigaon, then you have got a problem. c-span: page 135 of a 600 page book that sells for $25 discussing a request from how are but that the assistant-- by the way was howard buffett on the board also? >> gst: yes. his title did not reflect anything. c-span: anything having to do with his father? >> guest: the fact at he was on the board? that certainly has been said to me. c-span: anywahe famed
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investor, howard heard from politicians. adm's how are ffett heard from politicians and their money men when it wanted campaign contributions from 8:00 p.m.. how we call the zwicker seven for funds from somebody, tommy thomon or whenever you go on to tell, tommy thompsonith the mpaign conibutions. w much of that you find with this story? the whole campaign finance issue. >> guest: the whole campaign finance issue is central with adm. if you look at virtually every caaign's finance standal ultimately you find adm or dwayne andreas and all. my favorite adm tidbit, everybody remembers the famous story of the 25,000-doar che that was trad from i think it was the minnesota or midwest campaign finance chairman for
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the committee to reelect the esidt in 197trade said the bank account-- burglar, right. and they ultimately what isn't as well-known is who wrote t check and the check itself came from dwayne andreas. that same year dwayne andreas walked into the white house with a folder full $100,000 in cash the campaign finance issue is central to understanding this company's power and influence. c-span: andrea s. rights can go over the limit, just a small fine. put that into context. >> guest: o things to say about this. number one these are not my words. visa not people's recollectn. this is from the case. this is actually what they said and what nickndreas is saying there is, basically, i belie
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it was terry wilson had said that they had are giveno their limit to tommy thompson and they coul'tive him any more and andreas response was that was basically so what? the fine is not so big. you can go ahead and break the law. it is sort of iuess the benefit of having the money t pay the fine. c-an: again going back to where we started and all of this, all of these connections, they haven airplane. you allude to them in here but do they policians using airplanes? we hear so oftenorporate jets ar provided to policians. >> guest: i don't know of a circumstance where they did. doesn't mean it didn't happe but i don't know of one. c-span: the relionship to ethanol and bob dole, what did you find there and how much federal money goes into adm? >> guest: billions.

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