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Appendix A: The Mystery Man with One Hand: Myron Neisloss and the Early Covert Funding of the Labor Committee

< CONCLUSION: How It All Ended | HIAB | Appendix B: The “Bavarians” Versus the “PPT”: Trying to Make Sense of the 1970-71 Faction Fight >

Pdf file downloadable here


In the early days of the Labor Committee, a strange figure regularly appeared at New York meetings. He was described as a short trim man in his mid-40s and, apart from LaRouche and Carol, virtually the only other "adult" at the meetings. Unlike the blue-jean-clad, long-haired radicals, he always dressed sharply. He traveled with an extremely good-looking young woman and gave the impression of being a "James Bond type," at least according to one eyewitness. His last known address was believed to be 100 West 57th Street in Manhattan, although whether that was a residence or business address remains unclear. He was thought to be a currency speculator or investor as well as a "Zionist."

Most strange of all, he had a false right hand.

Meet Myron Neisloss.

In the very early days of the Labor Committee, the mysterious Myron reportedly:

1) gave the NCLC $2,000 a month;
2) loaned former Baltimore Black Panther turned Labor Committee member Zeke Boyd $2,500 to help get his younger brother out of a legal problem involving drug charges;
3) donated some $10,000 to the Fraser-Borghmann Defense Committee; and
4) gave the Greek supporters of the Labor Committee from the Epanastasi organization money, but reportedly became angry at them because he felt they were anti-Israel.

I first stumbled upon Myron a few years ago while reading a CPUSA file on the NCLC in a research archive. In order to understand what I found, some background is necessary. During the height of the NCLC's lunatic violent clash with the CP in 1973, two former Labor Committee members, Donald Stevens and Alan Hart, approached the CP with information. Two years before, in March 1971, Stevens and Hart – along with some 50 other members – left the NCLC and formed the Socialist Labor Committee (SLC), which by May 1973 had long ceased functioning. On 12 May 1973, the Daily World published a long letter by Stevens and Hart. In it they wrote: "[W]e feel that the Daily World's analysis of the NCLC is essentially correct; that it is a police-dominated organization. It is controlled by police or by police-fascists. We think it is being transformed from a police-socialist into a police-fascist organization." Stevens and Hart continued:

Lyn Marcus (NCLC chief) is a very mysterious socialist. We know from experience in his organization that no one, or almost no one, knows his real name, his social and geographic origins, or anything about his family. (The names "Lyn Marcus" and "Lyndon H. LaRouche, Jr." are both obvious and avowed aliases.)
No one knows his occupation or source of income. The official organization fantasy was that he was an industrial engineering consultant to major New York City firms who, soon after being hired, would be fired after the FBI told his employers that he was a red, and then very soon he would miraculously get a new job with another big firm. We never knew which firms.
He spent 10 to 15 years in the Socialist Workers Party where he had [it appears there is dropped text in the article but my guess is that they said something like "no influence" – HH], and left with no collaborators except for "Carol LaRouche" (an avowed alias). He was about 50 years old, but works only with people much younger than himself.
. . . We have sent to the Political Committee of the Communist Party a letter detailing the above and other knowledge of the internal history of the NCLC.
We experienced (from October 1970 to March 1971) a bizarre faction fight (and expulsion of about 50 members, ourselves included) over minuscule political differences, which now seems to have been pre-planned to purify the NCLC for its current political activities.

Their letter concludes:

We stress to the Daily World and its readers that the present line and practice of the NCLC represent a sudden, dramatic, and recent switch, and that there are many NCLC members who are neither cops nor fascists, but sincere socialists.
Fraternally,
Donald Stevens and Alan Hart.

At the time of the letter, Hart was based in South Dakota, where he published a journal called Quantum, according to the CP file. As for Stevens, he, too, was reportedly living in Aberdeen, South Dakota.1 Stevens and Hart, however, had previously lived in upstate New York, since in their Daily World letter, they write:

We are familiar with numerous individuals and collective histories of NCLC members who fulfill various criteria for being police agents. We are not familiar with the recent growth of the organization, though we do know that it has picked up new members remarkably fast recently. However, due to our left experience in Buffalo and Rochester, we suspected several current members in those cities of being police agents in the left before they joined the NCLC.2

On 23 May 1973, not long after their letter appeared in the Daily World, Stevens met with representatives of the Communist Party and gave a long interview about the NCLC. While the original interview was no longer in the archive, I found a hand-written summary of what Stevens told the CP. Stevens also apparently gave the CP a letter from Hart and Larry Elle. Elle had been active in the Philadelphia Labor Committee and took part in the 1969 strike at the University of Pennsylvania. Like Hart and Stevens, Elle joined the SLC in March 1971.3

In the handwritten notes from the interview, Stevens provided the above-detailed information about the funding of the Labor Committee as well as the name of the reputed financier. Myron's last name is spelled phonetically in the hand-written notes so it could be read as "Nissloss," or "Niesloss" or even "Misslos" or "Missloss." However, thanks to subsequent research, there is now no doubt that the last name is correctly spelled "Neisloss."4

Stevens told the CP that "Marcus had the closest relationship" with Myron and that they supposedly had been in the SWP together. Given that Myron was around the same age as LaRouche, this may have been a logical assumption to make, although I have not been able to find anyone named "Myron Neisloss" inside the SWP at the time. As I shall outline in a research note attached to the end of this chapter, I believe Myron Neisloss most likely was a Wall Street financier once associated with the Alleghany Company.5

The typed letter from Hart and Larry Elle is in the CPUSA archive as well. The letter tells the story of someone who sounds very much like Myron but who had a different name. This mystery man was around 46 years old and described as a Zionist international money speculator "who, I am sure, went by the name of Gordon Vector."6 Like Myron, "Gordon Vector" appeared at local New York meetings and the letter offers the dates of July and September 1970 where presumably he was seen. The letter reports that he gave the Labor Committee "a lot of money" and that after Steve Fraser split from the Labor Committee in March 1970, he asked "Vector" for funding but was refused. "Gordon Vector" gave Marcus not just money but information as well on "Meyer Kayhane" [JDL leader Meir Kahane] and someone named "Crystler (July 1970)," and he may have tried to encourage the CIA to sponsor Marcus. Since "Myron Neisloss" and "Gordon Vector" sound very much like the same person, it may be that "Gordon Vector" was a name that Myron Neisloss later employed. To put it mildly, it's hard to know for sure.

Although the details are convoluted, the basic story, I suggest, is quite simple. Three former members of the early NCLC named Al Hart, Don Stevens, and Larry Elle – all of whom had left the organization by March 1971 – two years later approached the Communist Party USA with inside information about a mysterious money man whom they had encountered in the early days of the organization. The most detailed report came from an interview given to the CP by Don Stevens, who identified the man as one "Myron Neisloss."

But was any of this true?

MEETING MYRON

After I posted this information on Factnet, confirmation of Myron's existence came from a former long-time NCLC member (Factnet's "Borisbad"). He, too, had been a very early LC recruit from the New York region. In a Factnet posting, he wrote:

I certainly remember Myron from the earliest days of meetings . . . . He and his girlfriend, who was very attractive, certainly did not seem like the types that you would see attending left-wing gatherings. I'm not sure if I'm accurate, but I also seem to recall Myron having a little memo book at which he would be writing notes during meetings. I also vaguely recall that he helped Solidarity get published or pay its printers. He left very early on and I don't recall him ever speaking out.7 . . . I'm trying to remember the original office (or maybe it was just a meeting place that was used and not an actual office). I remember it was downtown, and it had regular metal folding chairs and I honestly don't recall any windows, but this was over thirty years ago, and I was a fairly new recruit from the suburbs, who didn't go to all the meetings in those days. All I can remember about "Myron" is he would appear to be an "agent" in that I never heard him say anything but always recall him seeming pretty intent in following what's going on. I also remember that his girlfriend was "hot" and they were both always well dressed.

Another former member recalled:

the NYC local was at 38th Street and 8th Avenue, northeast corner. It was on the second or third floor of an old industrial building, maybe three stories high. I think the office consisted of a big room, a kitchen sort of thing and a bathroom. There were folding chairs or plastic chairs, I don't remember which. Lots of times we sat on undistributed stacks of Solidarity (this was before New Solidarity).8 And yes, the mysterious Myron came there for the Sunday night meetings sometimes with the equally mysterious young woman.9

THE NEW LEFT – BAD FOR THE JEWS?

But why would someone like Myron help fund the Labor Committee?

The answer may in part lie in growing concerns that the New Left had turned against Israel in the wake of the June 1967 war. On 29 November 1968, shortly after the conclusion of the New York teachers' strike, the New York Times ran an article entitled "New Left Is Called a Danger to Jews." It reported on a speech given in Washington, D.C., by Dr. Nahum Goldmann, president of the World Jewish Congress, to the convention of the Union of Orthodox Jewish Congregations of America. According to the Times, Goldmann warned some 2,000 convention delegates that "extremist elements of the New Left have engaged in such forms of anti-Semitism as attacking Zionism and equating Israel with 'colonial imperialism.'"

On 14 August 1970, New York Times reporter Linda Charlton wrote a long article entitled "Jews Fear Anti-Zionism of New Left." In it she quoted from the Weatherman publication Fire, which in August 1969 wrote about "[T]he almost universal collaboration of organized Jewry with the Nazis . . . and the general absence of resistance" of Jews to Nazism. Fire claimed that Israel had "proved incapable of even one humane gesture" to the Arab population. Another series of articles in SDS's New Left Notes reportedly linked Israel with "leaders of world imperialism like the Baron Edmund de Rothschild."

When in the fall of 1968 the SDS Labor Committee came out explicitly for the UFT, it not only represented a rejection of the dominant New Left position that the teachers were racists; it bolstered a Socialist Party-allied union leadership that bitterly opposed both the New Left and the Communist Party on a host of issues, not least of which involved Israel. In January 1969, the Socialist Party paper New America ran an article by the LC leader Tony Papert on SDS; that April New America editor Paul Feldman appealed to his readers to financially aid the Fraser-Borghmann Defense Committee in Philadelphia. That a rich so-called "Zionist" with a Wall Street background might offer financial aid to the fledgling Labor Committee is therefore not entirely improbable.

ENTER MYRON

But when did Myron first enter the scene?

The former Labor Committee members thought that he must have been a member of the Socialist Workers Party because he was clearly around the same age as LaRouche. Yet there is no evidence to support this speculation. Another rumor suggested that LaRouche and Myron met at a Greenwich Village chess club.10

My own guess is that LaRouche and Myron may have first met sometime in the late 1950s or early 1960s. LaRouche at the time worked in the New York branch office of the George S. May Company consulting firm as an "industrial engineer"/"efficiency expert" while Myron was involved with the Alleghany Corporation. However even if they met each other through some business connection, there is no indication that Myron had any "political" dealings with LaRouche.

Yet at some point, if the sources are correct, Myron decided to give the new SDS Labor Committee a good deal of money. It is possible, I suppose, that he may have helped finance LaRouche and West Village CIPA from the start. However I find it far more likely that the SDS Labor Committee first crossed his radar either during or just after the teachers' strike. Recall that Albert Shanker gave the Labor Committee free publicity when he proclaimed to the press that even "SDS" backed the UFT.11

Thanks to New America, it is obvious that the Social Democratic networks in New York took a strong interest in the organization even following the conclusion of the UFT strike. Therefore it would seem possible that Myron, who may well have met LaRouche socially well before the strike, decided to help fund the Labor Committee because he supported the Labor Committee policy towards the UFT and/or because he had some connection to a larger Social Democratic network that wished to aid the Labor Committee as a counter to what they saw as more overtly anti-Semitic trends then developing in both the Old and New Left.

Finally, it must be said that because the Social Democrats themselves were so heavily integrated into the "Jay Lovestone" wing of the AFL-CIO and because Lovestone, in turn, maintained close connections to the CIA (and longtime CIA "Israel Desk" head James Angleton), there might even have been an "intelligence angle" to Myron's largess. Certainly the CPUSA was convinced that the Labor Committee enjoyed some special link to the "AFL-CIA." The CPUSA may even have come across Myron when looking into the Labor Committee.12 Again, without more concrete evidence, it's simply impossible to know for sure.

MYRON AND JEWISH CURRENTS

We do know, however, that Myron was very prominently involved in the publication Jewish Currents, published for decades by the former Communist Party member Morris Schappes (pronounced SHAP-pess): https://en.wikipedia.org/wiki/Morris_Schappes. Jewish Currents had been a long time CPUSA publication that Schappes turned into an independent left-wing publication after he broke with the CPUSA in 1956. For our purposes, however, it is Myron Neisloss' ties to Jewish Currents that are most interesting. Here we see Neisloss and Schappes on page 21 of the publication when Myron is mentioned twice: http://jewishcurrents.org/wp-content/uploa...nts-1970-09.pdf.

In an ad for a meeting of Jewish Currents in a Staten Island paper from May 1970, we again see Myron Neisloss prominently mentioned: http://library.wagner.edu/wagnerian/1970/w...an_05-07-70.pdf. On the right hand side of page 10 we see an ad for a Jewish Currents annual dinner to take place on May 17, 1970, at the Hotel Commodore in New York City. Myron Neisloss is listed as one of the members of the Program Committee. He is also listed as a life-time subscriber to Jewish Currents in another issue of the magazine. Money from Myron may have helped keep Jewish Currents afloat. A careful examination of back issues of Jewish Currents tells us even more so that our "mystery man" is today a bit less of a mystery. Myron’s name first surfaces in the November 1968 issue of Jewish Currents in a letter (p. 41) where Myron announces that he has decided to become a life subscriber (at a cost of $200). Myron writes:

“I consider Jewish Currents the chief voice of the pro-Israel left, that body of men and women, black and white, Jew and non-Jew, which considers the fight against American fascism, white racism and anti-Semitism, the heroic struggles of the Vietnamese people against U.S. imperialist intervention and the equally heroic struggle of the State and people of Israel against the neo-Nazi Arab genocide as being all part of one continuous historic struggle for human liberation and social progress. It is because I feel myself to be one of that number that I am proud to declare myself a Jewish Currents life subscriber.
Myron Neisloss
Forest Hills, NY
August 22 [1968]”

Then in a letter to Jewish Currents in January 1969 in a separate section dealing with the teachers’ strike, Myron penned a long missive (pgs 23-24) that even mentions the SDS Labor Committee. As it is important, I reprint it here:

"There can be no adequate consideration of the New York City School crisis without considering the contending forces as well as the underlying issue in the controversy. On the one side, favoring “decentralization,” are:
A) The “New York Urban Coalition,” comprising such great friends of black people and working people in general as the Morgan Guaranty Trust Co., Standard Oil of New Jersey, Chase Manhattan, IBM, et al. committed to the Nixon-Agnew line of “Black Capitalism,” i.e., the South Africanization of American life, the erection of cultural and economic “Bantustans” in the Afro-Hispanic urban ghettos, and the use of the unemployed or under-employed, unorganized Afro-Hispanic urban masses as scab labor and a strike-breaking, union-busting force against all organized labor.
B) The bourgeois-nationalist separatist wing of the Black Power movement as exemplified by such ideologists as Roy Innis of CORE, Harold Cruise, and Robert (Sonny) Carson of Independent Brooklyn CORE, the last being notably famous for his anti-white racism and anti-Semitism under cover of “anti-Zionism.” (To Mr. Carson, “Zionist” and “Jew” are equivalent.)
It might well be such ideologists have succeeded in co-opting the great mass of black and Puerto Rican people of this city, including many trade unionists, as well as many white liberals and progressives, not to speak of all of the “New Left,” dazzled as always, by their “Third World” mystique, with the noteworthy exception of the SDS Labor Committee. (Emphasis added.)
On the other side, adhering to the United Federation of Teachers are the great bulk of the organized labor movement of the city, black as well as white, and the Social-Democratic intelligentsia as exemplified by Bayard Rustin, Michael Harrington, Irving Howe, et al. They recognize the call for “decentralization” and “parent-community control,” under the specific auspices and circumstances, for what it is, a union-busting scheme under “democratic” and “progressive” colors.
It should be added that Shanker’s vicious appeals to mass white racist sentiment and, in particular, to the prejudices of politically backward Jewish masses are utterly reprehensible. His use of “code words” such as “mob rule,” “vigilantism,” etc. is equivalent to George Wallace et al.’s use of “law and order”: and his reprinting of black anti-Semitic material without noting it as the work of a small, unrepresentative minority of black people demonstrates him to be unworthy to be president of UFT or any other labor organization.
What is to be done? I feel the answer best summarized in the following slogans:
Unconditional defense of the United Federation of Teachers despite and against Shanker & Co.!
Direct action by union-conscious black and Puerto Rican labor, seamen, longshoremen, et al. to insure a 100 per cent union school system run by the unionized worker-professionals instead of any outside board, local or city!
Expansion of the union membership by means of teaching scholarships to as many qualified and interested black and Puerto Rican graduates as wish to teach!
Expansion of the teacher-management committees to include representatives of students, parents, and all of the Afro-Hispanic community!
For an impartial commission of standards and appeals jointly designated by and agreeable to all parties for final arbitration on all differences over hiring and firing and teacher evaluation!
Myron Neisloss
Forest Hills, N.Y. Nov. 10 [1968]"

In the December 1969 issue of Jewish Currents, Myron ran a full page ad in the back of the journal. It reads in full:

“Hanuka Greetings for Peace–Freedom-Socialism for Vietnam, the Middle East, America.
Myron Neisloss, Forest Hills, N.Y.”

Finally in December 1970 there is another full page ad on page 60:

“Israel Must live!”
Myron Neisloss, Forest Hills, N.Y."

These two full page ads are part of the Hanuka fund-raising period for Jewish Currents as many people took out ads to show their support for the publication.

The February 1971 issue of Jewish Currents (page 26) mentions Myron this way: http://jewishcurrents.org/wp-content/uploa...nts-1971-02.pdf. Here we see that Myron and his wife invited Schappes and his wife to the 23rd annual Hanuka dinner of Americans for a Progressive Israel -- Hashomer Hatzair. Since Myron invited Schappes, Myron may have been a member of Hashomer Hatzair, which also published a journal entitled Israel Horizons. One has the sense that Jewish Currents was not the first pro-Israel leftist organization that Myron joined. In fact Jewish Currents editorially tended to be much more supportive of decentralization and critical of Shanker as was Jewish Current's major reporter on the strike, Rachel Levy. Nonetheless, on 5 March 1969 the CPUSA publicly attacked Jewish Currents along with another Jewish paper called Freiheit since both publications had "chosen to adopt an attitude of spurious impartiality" with regard to the "racist" UFT. Both papers were condemned for an "obsession with the false issue of 'black anti-Semitism'" as well as sympathy with Israel and its 1967 "war of aggression" against Arab nations. They further adopted "a critical carping attitude" towards the Soviet Union and opposed the 1968 Soviet invasion of Czechoslovakia. Again it is hard to say for sure but one guess is that Myron belonged to Hashomer Hatzair before becoming actively involved with Jewish Currents, a link that only appears in August 1968 when he took out a lifetime subscription. In short, Myron may have had pre-existing ties to Hashomer Hatzair or to some third grouping that we still know nothing about. It further remains unknown whether or not Myron was simply acting alone when he began financing the NCLC and just how he and LaRouche first met.

EXIT MYRON

The ex-NCLC members who contacted the CPUSA seem to agree that Myron broke off any connection with the Labor Committee sometime in late 1970 or early 1971, or around the time that the organization began supporting the Palestinian cause, a move that Myron seems to have associated with the Greek exile Epanastasi (ESO) movement in particular.13 In the late 1960s, the faction of the Epanastasi network that later allied with the Labor Committee formed an alliance with Nayef Hawatmeh's Democratic Popular Front for the Liberation of Palestine (DPFLP).14 The DPFLP emerged as a split from George Habash's PFLP; at the time more orthodox Marxist DPFLP objected to the PFLP's role in plane hijackings and other terrorist acts.15

Epanastasi cadre first became prominent at the NCLC's second national conference entitled "Strategy for Socialism" held on 29-30 December 1970 at Columbia University.16 At the 30 December gathering, the last two sessions included presentations from two top Epanastasi members. A panel on "National vs. Cultural Self-Determination" featured Epanastasi's "Jannis Tzavellas." The very next panel ("Building a New Communist International in Europe") was addressed by "Nick Syvriotis," the editor of Epanastasi.17 The Epanastasi cadre worked closely with LaRouche, who also wrote about Greece for New Solidarity.18

In late May 1970, the NCLC organized another conference at New York's Beacon Hotel on the Upper West Side of Manhattan. The 14-16 June 1970 issue of New Solidarity carried a Tony Chaitkin article on the gathering entitled "Internationalist Viewpoint Stressed by Speakers from Europe, Middle East." It begins:

A conference here on international socialist strategy heard a critical self-analysis of the left wing of the Palestine resistance movement and discussed plans for building a European revolutionary movement. Ahmed Khayali [Kayali] spoke for the Democratic Popular Front for the Liberation of Palestine (DPF), Jannis Tzavellas for the Greek revolutionary group ESO, Roger Hartog for the socialist GI newspaper, THE NEXT STEP, and L. Marcus and Eric Lerner for the National Caucus of Labor Committees.19 Khayali analyzed the weaknesses of the DPF and the resistance movement in general – chauvinism, careerism, reliance on and "non-interference with" Arab governments, and overemphasis on the military aspect of the movement, instead of politicizing and preparing the masses. . . . The DPF is a Marxist split-off from the airline-hijacking Popular Front headed by George Habash. . . . [the DPF] call for a "secular, socialist, anti-imperialist state" to contain both Jewish and Arab communities, with all citizens on an equal basis, and the preservation of all "religious and cultural heritages."20

The NCLC now began organizing support for DPFLP activists. The 21-25 June 1971 issue of New Solidarity reported that the NCLC had held a protest outside the Jordanian consulate in the United States to defend a DPFLP activist and member of the group's Political Committee named Taisir Al-Zabry, who had been recently arrested and tortured by the Jordanian police. Given the NCLC's public embrace of a group like the DPFLP, it would not be at all surprising that someone like Myron Neisloss would become so disillusioned that he would break off all contact with the Labor Committee and focus his anger on Epanastasi in particular.

Whatever his ultimate reason for leaving, clearly the larger mystery of Myron Neisloss remains yet to be solved. However, even if there is still more to be learned, if these leads prove more or less accurate, they strongly suggest that the history of the early Labor Committee has yet to be written in full.

Research Note: ON THE POSSIBLE IDENTITY OF MYRON NEISLOSS

Below are links which show that a "Myron Neisloss" was tied to the Alleghany Corporation. In the 1950s and 60s, the Alleghany Corporation was involved with the New York Central and Pennsylvania railroads. I have therefore included LaRouche's discussion in his book Dialectical Economics, where he states that he knew some of the players in the fight over New York Central and the Pennsylvania Railroad. Given that the name "Myron Neisloss" is very rare, my guess is that this Myron Neisloss is most likely the same Myron Neisloss who reportedly helped fund the early Labor Committee.

1) Wiki excerpts on the Alleghany Corporation.

Available at http://en.wikipedia.org/wiki/Alleghany_Corporation

Alleghany Corporation (http://en.wikipedia.org/wiki/New_York_Stock_Exchange : http://www.nyse.com/about/listed/quickquote.html?ticker=y ) is an investment holding company originally created by the railroad entrepreneurs Oris and Mantis Van Sweringen as a holding company for their railroad interests. It was incorporated in 1929 http://en.wikipedia.org/wiki/Alleghany_Corporation#cite_note-0 and reincorporated in Delaware in 1984.http://en.wikipedia.org/wiki/Alleghany_Corporation#cite_note-1

After the company's bankruptcy in the Great Depression , control of the company fell into the hands of Robert Ralph Young and Allan Price Kirby . Young used the company as a vehicle for his vendetta against the J.P. Morgan banking interests, who had financed the Van Sweringens, and managed to defeat them and the Vanderbiltinterests in a 1954 proxy fight for the New York Central Railroad. The failing New York Central was in worse shape than Young had bargained for, and he committed suicide shortly after being forced to suspend the dividend in January 1958. After Young's death, his role in NYC management was assumed by his protégé Alfred E. Perlman. Although much had been accomplished to streamline NYC operations, in those tough economic times, mergers with other railroads were seen as the only possible road to financial stability. The most likely suitor became the NYC's former arch-rival Pennsylvania Railroad. During the early 1960s, New York Central negotiated a merger with the Pennsylvania Railroad (PRR), which was led by Stuart T. Saunders after 1963. Saunders had most recently led the Norfolk and Western Railway through a successful expansion through acquisition and mergers, including the Virginian Railway , Nickel Plate Road and Wabash Railway. There was great hope that success would result from the NYC-PRR combination. Penn Central Transportation Company was formed by the merger on February 1, 1968. However, the underlying financial weakness of both former railroads, combined with the fact that the ICC forced the chronically weak New Haven Railroad into the system, doomed the Penn Central, and bankruptcy was declared shortly a little over 2 years later, on June 21, 1970. Many of the Penn Central railroad assets ended up in Conrail , formed in 1976. The bankruptcy of the Penn Central railroad mostly ended Alleghany's involvement in the railroad business.

The company's residual railroad investments led to president and CEO John J. Burns serving on the board of Burlington Northern Santa Fe Corporation from 1995 to 2004.

Today, Alleghany Corporation focuses on the insurance business (property, casualty, surety and fidelity insurance). Until his death in February 2011 Allan Kirby's son, Fred M. Kirby 2nd, was the chairman of the board and a sometime member of the Forbes 400 list of richest Americans.

2) From Lyndon LaRouche's (a/k/a"Lyn Marcus") book Dialectical Economics: An Introduction to Marxist Political Economy (Lexington, Mass., D.C. Heath and Company, 1975), 316:

The 1963-64 case described in The Great Salad Oil Swindle by a former Wall Street Journal, Norman C. Miller, is the other example we shall consider here . . . . The nature of the case, like that of the 1970 collapse of the Penn Central Corporation, involves implicit recourse, the sales of the aroma of a financial statement. . . . What makes the salad-oil case and the Penn Central collapse so useful to us is the celebrity of the parties victimized, who were not generally ignorant bunglers who did not know their business. These cases illustrate a general vulnerability within the business-financial community. The author has had business dealings with some of the participants in both cases, and is convinced that some of the victims of the collapse were among the shrewdest operators, and others among the less competent, in such circles. The fact that both types were taken in illustrates the generality of the phenomenon involved.
The case of the Penn Central is cited because the author was peripherally concerned with the inevitable collapse of both the Pennsylvania and New York Central railroads in the late 1950s. During this period he was briefed – which had the effect of confirming his own judgments – at the direction of one of the Pennsylvania's top executives. There was no doubt in 1958-1959 that unless the merger was immediately effected and a definite program of development and rationalization instituted, both railroads would go on welfare. This was clear to both top managements at the time – at least it was clear to the Pennsylvania management, who made the necessary points to the obdurate New York Central management. (Emphasis added)

MYRON NEISLOSS TIES TO THE ALLEGHANY CORPORATION/NEW YORK CENTRAL AND PENNSYLVANIA RAILROAD – Excerpts from the legal cases.

3) ALLEGHANY CORPORATION, appellant, v. BRESWICK & CO., Randolph Phillips and Myron Neisloss, as Common Stockholders of Alleghany Corporation.

355 U.S. 415 (78 S.Ct. 421, 2 L.Ed.2d 374)
ALLEGHANY CORPORATION, appellant, v. BRESWICK & CO., Randolph Phillips and Myron Neisloss, as Common Stockholders of Alleghany Corporation.

No. 616.

Decided: NotFound

Per_curiam, per_curiam [HTML]

Joseph S. GRUSS, Charles H. Blatt, Albert B. Cohen,

et al., appellants,

v.

BRESWICK & CO., Randolph Phillips and Myron Neisloss,

as Common Stockholders of Alleghany Corporation, etc.

No. 617.

INTERSTATE COMMERCE COMMISSION, appellant,

v.

BRESWICK & CO. et al.

No. 618.

Supreme Court of the United States

January 27, 1958

The judgment of the District Court is reversed and the case is remanded for consideration by that court of the only claim that was left open at this Court's prior disposition of this litigation, to wit, whether 'the preferred stock issue as approved by the Interstate Commerce Commission was in violation of the Interstate Commerce Act.' Alleghany Corp. v. Breswick & Co., 353 U.S. 151, 175, 77 S.Ct. 763, 1 L.Ed.2d 726 .

Mr. Justice DOUGLAS, with whom The CHIEF JUSTICE and Mr. Justice BLACK concur, dissents.

These cases are a sequel to Alleghany Corporation v. Breswick & Co., 353 U.S. 151, 77 S.Ct. 763 . There, the decision of the District Court was reversed and the case was remanded for further proceedings. Now, the decision of the District Court on remand is being summarily reversed on the ground that the basis of the decision below was precluded by the mandate and opinion of this Court. For the reasons which follow, it is my opinion that probable jurisdiction should be noted in these cases.

First. I do not agree that the decision below went beyond the scope of the opinion and mandate of this Court.

Alleghany Corporation acquired control of the New York Central Railroad Co., the parent of an integrated system of carriers. Subsequent to the acquisition of control by Alleghany, two of the corporate subsidiaries of the Central system were merged. Alleghany is basically subject to the control of the Securities and Exchange Commission under the Investment Company Act of 1940, 54 Stat. 789, 15 U.S.C. 80a-1 et seq., U.S.C.A. § 80a-1 et seq. Section 3(c)(9) of that Act exempts companies which are subject to regulation by the Interstate Commerce Commission. The question thus arose as to whether Alleghany, although not a carrier as that term is used in the Interstate Commerce Act, was subject to regulation by the Interstate Commerce Commission because of the merger of the subsidiaries of Central of which Alleghany acquired control and therefore exempt from supervision by the Securities and Exchange Commission. The determination of the Interstate Commerce Commission that Alleghany was under its jurisdiction was reversed by the District Court but this Court then reversed the District Court. 353 U.S. 151, 77 S.Ct. 763 . The scope of that holding is the present issue.

4) http://law.justia.com/cases/federal/appellate-courts/F2/293/873/234795/

293 F.2d 873: Myron Neisloss and Randolph Phillips, Appellants, v. John W. Bush et al., Appellees

United States Court of Appeals District of Columbia Circuit. - 293 F.2d 873

Argued January 25, 1961 Decided June 8, 1961

This case is a proceeding arising from the acquisition of control of the New York Central Railroad Company by Alleghany Corporation, a Maryland corporation engaged in the investment business. Appellants are two common stockholders of Alleghany. They appeal from the summary dismissal in the District Court of a complaint seeking declaratory and mandatory relief against certain actions taken by the Interstate Commerce Commission with respect to Alleghany's acquisition of control of the railroad. The dismissal was on the ground that no claim was stated upon which relief could be granted.

2

Since appellants' complaint was dismissed on the pleading, we accept, for purposes of this appeal, the following statement of facts in appellants' complaint. In 1953 Robert R. Young and Allan P. Kirby, Chairman and President of Alleghany Corporation and its controlling stockholders, formed a plan to obtain control of the New York Central by entering and winning a proxy contest in the May, 1954, election of Central's Board of Directors. Young and Kirby personally owned 200,000 shares of Central stock. In addition, Alleghany Corporation at that time held a controlling interest in the Chesapeake & Ohio Railway, and the C. & O. owned 800,000 shares of stock in the New York Central. Young and Kirby naturally wished to vote these shares in the Central election, but were not at once free to do so. The shares were held in a voting trust pursuant to an order of the I.C.C. designed to limit the number of carriers under Alleghany's control.http://law.justia.com/cases/federal/appellate-courts/F2/293/873/234795/

3

In order to free this Central stock from the voting trust, it was arranged that all of Alleghany's stock in the C. & O. should be sold to Cyrus S. Eaton and that six of Alleghany's nominees on the C. & O. Board of Directors should be removed and a majority of the directorships filled by nominees of Eaton. It was arranged that the C. & O. should sell its 800,000 shares of Central stock to Clint W. Murchison and Sidney W. Richardson, with the buyers agreeing to vote the shares for the directors supported by Young and Kirby. The purchase price of these 800,000 shares was $20,000,000. The buyers obtained this money from two "advances" of $7,500,000 each by Alleghany Corporation and by certain "banking groups associated with Cyrus S. Eaton interests," and from Kirby's "advance" to Richardson of another $5,000,000. Under certain joint venture agreements, it was agreed that Richardson and Murchison might resell up to 400,000 shares of Central stock to Alleghany within a three-month period at the same price they had paid for the stock. This agreement amounted to an assumption by Alleghany of the risk of loss caused by fluctuations in the market value of the 400,000 shares within the three-month period. Alleghany also loaned $1,300,000 without interest to Young, Kirby, Richardson and Murchison for a period of about three months to finance expenditures in the New York Central proxy contest.

4

The result was the ouster of the old management of the Central and the election in May, 1954, of the Young-Kirby slate of directors. A concomitant result, it is alleged, was the diversion of a great amount of Alleghany capital from profitable ventures into wasteful expenses and profitless investments. It is alleged that the transactions caused serious financial injury to the corporation and its stockholders. (Emphasis added)

THE ALLEGHANY CORPORATION

http://www.unz.org/Pub/Ramparts-1970mar-00058http://www.unz.org/Pub/Ramparts-1970mar-00058

The above article on Richard Nixon and his ties to the Alleghany Corporation appeared in Ramparts.

From a conspiracy website, an article by Linda Minor on Alleghany and Nixon

http://www.scoop.co.nz/stories/HL0205/S00063.htm

5) Alleghany Corp., IDS, Money Laundering, and Richard Nixon

Once Young gained control of NYC [New York Central railroad – HH], he appointed Alfred Perlman to be president. Working with Perlman for many years was Wayne Hoffman, who left the railroad one year before the merger took place. Hoffman became chairman of the Flying Tiger Airlines in Los Angeles. . . . Nixon was also connected to the Penn Central by virtue of his own legal work, prior to his election, for Investors Diversified Services (IDS).

In 1954, Robert Young had sold Clint Murchison, Sr. a 24 percent interest in IDS, whose three subsidiaries sold savings certificates and other securities. This $5 million investment increased in value to $7 million in three months. Incredibly, when Kirby and Young bought IDS in 1949, they paid less than $2 million, though by 1959 it grew to control assets worth $3.4 billion. Accusations of insider trading were made, and in 1959, after Robert Young's suicide, Allan Kirby convinced Murchison to give back his voting shares of IDS in exchange for non-voting shares. Kirby controlled Alleghany, and, after the exchange, Kirby controlled 48% of the voting shares of IDS, allowing Kirby to squeeze out Murchison and his two sons, to whom he transferred his stock – at about the same time all the Texans were kicked off the board. At that point the Murchison brothers decided to wage a proxy fight against Kirby, which lasted two and a half years. The brothers also sued Kirby for $100 million for conspiracy and fraud, losing in the U.S. Supreme Court.

Alleghany Corp. owned almost a million shares of New York Central stock. But by far the most valuable asset was IDS. By the end of 1962, a year and a half after winning the proxy fight, the Murchisons decided to sell their interest in Alleghany to Bertin C. Gamble, from whom Young had acquired it in 1949. By this time, the stock was worth $300 million. There can be no question but that this was a money-laundering operation. Gamble quickly sold the stock to Allen Kirby and two associates. It would have been around this time that Richard Nixon moved to New York and began representing IDS. Two years later, the Pennsylvania Railroad, while working toward a merger with the New York Central began a buying spree.


Notes:

1 In 1977 a Don and Jane Stevens published a short pamphlet entitled South Dakota, the Mississippi of the North. The title comes from a description of South Dakota by a prominent American Indian activist.

2 While I could not learn much about Hart, a "Don Stevens" is listed as a member of the local SDS group at the Rochester Institute of Technology in February 1969. In a 1970 issue of Solidarity, there is this contact listed for the Labor Committee, "Rochester: Don Stevens, Box 1824, Rochester, N.Y. 14603. Tel: 271-1115."

3 Larry Elle's name appears in the Philadelphia court case against Steve Fraser and Dick Borghmann.

"Sometime during the afternoon of April 25th, the Philadelphia SDS Labor Committee was conducting a rally in front of City Hall to protest the arrest of defendants. Defendant Borghmann and Miss Friedman were setting up sound equipment when Lieutenant Fencl came up to them, according to defendant Borghmann, "took out his black book in which he keeps notes and said that he hoped that Steve Fraser had a good trip out to San Francisco and that he didn't get air sick." http://www.leagle.com/xmlResult.aspx?page=3&xmldoc=197130155PaDampC2d246_1258.xml&docbase=CSLWAR1-1950-1985&SizeDisp=7#FN_6
One Larry Elle, evidently also a member of the labor committee, replied that "the only thing that made Steve sick was Lt. Fencl," and after an exchange between Elle and the lieutenant, the incident ended."

4 The Long Island Star Journal of 2/5/1960 ran an obituary for a Benjamin Neisloss, who is listed as having a son named Myron who was then living in Forest Hills, Queens. Benjamin Neisloss was a builder in Queens who was born in Latvia. After serving in World War I, he became a member of the Jewish War Veterans Post in Jamaica, Queens. See: http://fultonhistory.com/Newspaper%2014/Long%20Island%20City%20NY%20Star%20Journal/Long%20Island%20City.

5 The note also says that Myron was "24 years old at the latest" which I take to be a typo for "42 years old."

6 My Google search of the name "Gordon Vector" produced no results.

7 See http://factnet.org/vbforum/printthread.php?t=12941&pp=20&page=100.

8 Solidarity was the name of the local paper created by the Marcusite-dominated Labor Committee of Regional SDS in July 1968. It was directed to workers in the garment center.

9 See http://factnet.org/vbforum/showthread.php?12941-LaRouche-continued-6&p=379515&highlight=#post379515#http://f.

10 LaRouche was a serious chess player and there is a famous New York chess club on West 10th Street called the Marshall Chess Club that dates back to 1931.

11 In box eight of Albert Shanker's archives at Wayne State University there is a copy of the SDS Labor Committee statement on the strike.

12 On the CP, see my appendix "Shachtmanite Plot?"

13 The earliest indication of LaRouche's take on the Middle East that I am aware of comes from a letter he wrote on 11 June 1967 to the National Guardian at 197 East 4th Street. The letter was written just at the time of the June 1967 War in the Mideast and LaRouche seems to have hoped that the National Guardian would publish it.

LaRouche's long letter argues that the Left was hopelessly confused about the real origins of the war with some on the left cheer-leading the Arabs and others the Israelis. In reality, Egypt attacked because it had "a mountain of debt service." Egypt is a capitalist economy. For Nasser to escape economic crisis, he had only two options. The first was to establish a real United Arab Republic so he could get access to oil and in the process drive up oil prices. The second option was to threaten to create such a united Arab state in order to scare the Western imperialists into giving him concessions. Therefore Nasser used a relatively low-grade conflict between Israel and Syria over water rights as a pretext to declare "a phony war" to shake down the West. Israel, however, took advantage of the "phony war" to declare a real preventive war against the Arab states.

For years the Arabs have schemed to squeeze out more oil revenue from the West. Yet every time they try, imperialism – "via the CIA" and related groups – sets up coups by colonels, sheikhs, and "what have you" to overthrow the threatening regime. In response, leaders like Nasser need to create "an Arab Holy Alliance" against the CIA. Yet when such things happen, "ideologically charged" issues "often far removed" from real material concerns frequently become involved in the equation. So the issue of Israel more or less functions as a pretext for the Arab states to unite ideologically.

Because of the Israeli oppression of Arabs both inside Israel and out [the Gaza Strip], an oppression which is worse than the way U.S. blacks are treated in cities in the northern United States, there is a lot of popular resentment against Israel. Yet the real issue for Nasser isn't the conquest of Israel but rather his need to establish some kind of Arab military confederation in order to gain access to oil revenue. Nasser launched his "phony war" and telegraphed his punches and got caught flatfooted in the Israeli blitzkrieg attack. Now as it so happens, Nasser is one of imperialism's "best successes in this period." Nasser's Egypt is a national revolutionary capitalist comprador regime so Nasser's Egypt is a "Bonapartist regime." As such, it is very close to what "Development Decade" imperialists like.

But with the 1967 moves by Nasser, he may have gone "too far" for the imperialists. On the other hand, it is possible that the Israelis acted completely independently. Therefore, LaRouche concludes, the real question that journalists like those in the National Guardian should be trying to answer is to what extent the imperialists sanctioned an Israeli strike because they felt Nasser had gone too far, or was it possible that the Israelis retaliated on their own and without being sanctioned by Western Imperialism? So far, the answer is "not yet clear." He signs his letter, "Fraternally, L. Marcus."

14 For more on Epanastasi, see the relevant chapters in Smiling Man from a Dead Planet.

15 The Epanastasi minority faction that joined the Labor Committee strongly opposed the use of terrorism by the Greek exile movement.

16 The public meeting was followed by an internal closed meeting that took place on 1-3 January 1970.

17 See the 18 December 1970 issue of the NCLC paper for the full list of speakers at the first "Strategy for Socialism" conference.

18 In June 1970 after the Kent State killings, LaRouche spoke for about 10 minutes at a huge anti-war rally in Philadelphia held in a park near the Liberty Bell. LaRouche almost exclusively focused his remarks on the situation in Greece and an alleged link between a Greek oil magnate named Tom Pappas and Richard Nixon. (Pappas was later discovered giving money to Nixon during the Watergate affair.)

19 On The Next Step, see Smiling Man from a Dead Planet.

20 Labor Committee support for the DPFLP can be seen in a winter 1971 Campaigner article entitled "War and Revolution in the Middle East" by Uwe Henke von Parpart.

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